NATIONAL OILSEEDS AND VEGETABLE OILS DEVELOPMENT BOARD ACT

THE NATIONAL OILSEEDS AND VEGETABLE OILSDEVELOPMENT BOARD ACT, 1983

ACT No. 29 OF 1983

8th September, 1983

An Act to provide for the development underthe control of the Union of the oilseedsindustry and the vegetable oils industry and for matters connected therewith

BE it enacted by Parliament in theThirty-fourth Year of the Republicof India as follows: –

CHAPTER I

PRELIMINARY

1.Short title, extent and commencement: (1)This Act may be called the National Oilseeds and Vegetable Oils DevelopmentBoard Act, 1983.

(2) It extends to the whole of India.

(3) It shall come into force on such date 1as the Central Government may, by notification in the Official Gazette,appoint.

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1. 8-3-1984 – Vide NotificationNo.G.S.R.206 (E) dated 18-3-1984, Gazette of India, Pt. II, Section 3(i)

2.Declaration as to expediency of controlby the Union: It is hereby declared that it is expedient in the public interestthat the Union should take under its controlthe oilseeds industry.

3.Definitions: In this Act, unless thecontext otherwise requires, –

(a) "Board" means the NationalOilseeds and Vegetable Oils Development Board established under section 4;

(b) "Chairman" means the Chairmanof the Board;

(c) "coconut" has the samemeaning as in the Coconut Development Board Act, 1979;

(d) "Executive Director" meansthe Executive Director of the Board;

(e) "member" means a member ofthe Board;

(f) "oilseed" does not includecoconut;

(g) "prescribed" means prescribedby rules made under this Act;

(h) "Vegetable oil" means any oilproduced from oilseeds, or any other oil bearing material of plant origin, andcontaining glycerides but does not include any such vegetable oil which hasbeen subjected to any processing subsequent to the recovery of oil;

(i) "Vice- Chairman" means theVice-Chairman of the Board.

CHAPTER II

THE NATIONAL OILSEEDS AND VEGETABLE OILSDEVELOPMENT BOARD

4.Establishment and constitution of theBoard: (1) With effect from such date as the Central Government may, by notificationin the Official Gazette, appoint in this behalf, there shall be established,for the purposes of this Act, a Board to be called the National Oilseeds andVegetable Oils Development Board.

(2) The Board shall be a body corporate bythe name aforesaid, having perpetual succession and a common seal, with powerto acquire, hold and dispose of property, both movable and immovable, and tocontract, and shall by the said name sue and be sued.

(3) The head office of the Board shall beat Delhi or atsuch other place as the Central Government may, by notification in the OfficialGazette, specify.

(4) The Board shall consist of thefollowing members, namely: –

(a) the Minister in charge of the Ministryof the Central Government dealing with agriculture, who shall ex officio be theChairman of the Board;

(b) the Secretary in charge of the Ministryof the Central Government dealing with agricultural development, who shall exofficio be the Vice-Chairman of the Board;

(c) the Agriculture Commissioner to theGovernment of India, ex officio;

(d) the Director-General, Indian Council ofAgricultural Research, ex officio;

(e) three members of Parliament, of whomtwo shall be elected by the House of the People and one by the Council ofStates;

(f) one member to be appointed by theCentral Government to represent the Planning Commission;

(g) three members to be appointed by theCentral Government to represent respectively the Ministries of the CentralGovernment dealing with-

(i) finance (revenue);

(ii) commerce;

(iii) civil supplies;

(h) Executive Director, ex officio;

(i) Financial Adviser to the Ministry ofthe Central Government dealing with agriculture, ex officio;

(j) eleven members to be appointed by theCentral Government to represent respectively the Governments of the States ofAndhra Pradesh, Gujarat, Haryana, Madhya Pradesh, Maharashtra, Karnataka,Orissa, Punjab, Rajasthan, Tamil Nadu and Uttar Pradesh:

Provided that every appointment under thisclause shall be made on the recommendation of the Government of the Stateconcerned;

(k) five members to be appointed by theCentral Government to represent respectively-

(i) the State Trading Corporation of IndiaLimited;

(ii) the National Co-operative DevelopmentCorporation established under section 3 of the National Co-operativeDevelopment Corporation Act, 1962(26 of 1962);

(iii) the National Dairy Development Board;

(iv) the National Agricultural Co-operativeMarketing Federation;

(v) the National Bank for Agriculture andRural Development established under section 3 of the National Bank forAgriculture and Rural Development Act, 1981(61 of 1981);

(l) three members to be appointed by theCentral Government to represent the oilseeds growers;

(m) one member to be appointed by theCentral Government to represent exporters of oilseeds, vegetable oils or otherproducts derived from oilseeds;

(n) one member to be appointed by theCentral Government to represent the vegetable oils industry;

(o) two members to be appointed by theCentral Government to represent such other interests connected with theoilseeds industry or the vegetable oils industry as, in the opinion of thatGovernment, ought to be represented.

(5) The term of office of the members,other than the ex officio members, and the manner of filling vacancies among,and the procedure to be followed in the discharge of their functions by, suchmembers shall be such as may be prescribed.

(6) Any officer of the Central Government,not being a member of the Board, when deputed by that Government in thisbehalf, shall have the right to attend the meetings of the Board and take partin the proceedings thereof but shall not be entitled to vote.

(7) The Board may associate with itself insuch manner, subject to such conditions and for such purposes as may beprescribed, any person whose assistance or advice it may desire in complyingwith any of the provisions of this Act and a person so associated shall havethe right to take part in the discussions of the Board relevant to the purposefor which he has been associated but shall not have the right to vote and shallbe entitled to receive such allowances or fees as may be fixed by the CentralGovernment.

(8) No act or proceeding of the Board orany committee appointed by it under section 8 shall be invalidated merely byreason of-

(a) any vacancy in, or any defect in theconstitution of, the Board or such committee; or

(b) any defect in the appointment of aperson acting as a member of the Board or such committee; or

(c) any irregularity in the procedure ofthe Board or such committee not affecting the merits of the case.

(9) The Board shall meet at such times andplaces and shall observe such rules of procedure in regard to the transactionof business at its meetings (including the quorum at its meetings) as may beprovided by regulations made by the Board under this Act.

5.Allowances of members: The members of theBoard shall receive shall allowances as may be fixed by the Central Government.

6.Officers of the Board and other staff:(1) The Central Government shall appoint a person possessing such technicalqualifications and practical experience in oilseeds development as may beprescribed, as the Executive Director to the Board.

(2) The Executive Director shall be thechief executive of the Board and shall exercise such powers and perform suchfunctions as may be prescribed.

(3) The Central Government shall appoint aSecretary to the Board who shall exercise such powers and perform suchfunctions as may be prescribed or as may be delegated to him by the Board orthe Executive Director.

(4) The Executive Director and theSecretary shall be entitled to such salary and allowances and shall be subjectto such conditions of service in respect of leave, pension, provident fund andother matters as may, from time to time, be fixed by the Central Government.

(5) Subject to such control andrestrictions as may be prescribed, the Board may appoint such other officersand employees, as may be necessary, for the efficient performance of itsfunctions and the method of appointment, the conditions of service and thescales of pay and allowances of such other officers and employees of the Boardshall be such as may be provided by the Board by regulations made under thisAct.

(6) The Executive Director, the Secretaryand other officers and employees of the Board shall not undertake any workunconnected with their duties under this Act except with the permission of theCentral Government.

7.Special provision for transfer ofemployees to the Board: (1) On the establishment of the Board, it shall belawful for the Central Government to transfer to the Board, by order, and witheffect from such date or dates (which may be either retrospective to any datenot earlier than the date of such establishment or prospective) as may bespecified in the order, any officer or other employee holding office as such inthe Directorate of Oilseeds Development immediately before the date on whichthe Board is established:

Provided that the scale of pay of the postto which such officer or other employee is transferred shall not be lower thanthe scale of pay of the post he was holding immediately before such transferand the other terms and conditions of service (including pension, leave,provident fund and medical benefits) of the post to which he is transferredshall not be less favourable than the terms and conditions of service inrelation to the post held by him immediately before such transfer:

Provided further that if, immediatelybefore the date of his transfer, any such officer or other employee isofficiating in a higher post under the Central Government either in a leavevacancy or in any vacancy of a specified duration, his pay and otherallowances, if any, on transfer, shall be protected for the unexpired period ofsuch vacancy and thereafter he shall be entitled to the scale of pay applicableto the post under the Central Government to which he would have reverted butfor his transfer to the Board.

(2) Before any order is made undersub-section (1), the officers and other employees of the Directorate ofOilseeds Development who are proposed to be transferred under that sub-sectionshall be given an option in such form and within such time as may be specifiedin that behalf by the Central Government, to express their willingness orotherwise to become employees of the Board and such option once exercised shallbe final:

Provided that no order under sub-section(1) shall be made in relation to any officer or other employee of theDirectorate of Oilseeds Development who has intimated his intention of notbecoming an employee of the Board within the time specified in that behalf:

Provided further that such of the personsemployed by the Central Government in the said Directorate who do not express,within the time specified in that behalf, their intention of becoming theemployees of the Board, shall be dealt with in the same manner as, and inaccordance with the same rules as are applicable to, the employees of theCentral Government in the event of the reduction of the strength of theDepartment in which such persons have been employed.

(3) An officer or other employeetransferred by an order made under sub-section (1) shall, on and from the dateof transfer, cease to be an officer or employee of the Central Government andbecome an officer or other employee of the Board with such designation as theBoard may determine and shall be governed by the regulations made by the Boardunder this Act in respect of remuneration and other conditions of service(including pension, leave, provident fund and medical benefits) and shallcontinue to be an officer or other employee of the Board unless and until hisemployment is duly terminated by the Board:

Provided that till such time as theregulations referred to above governing the conditions of service of itsofficers or other employees are made by the Board, the relevant rules andorders made by the Central Government shall continue to be applicable to suchofficers or other employees.

(4) If any question arises as to whetherthe terms and conditions of service prescribed in the regulations made by theBoard in respect of any matter, including remuneration, pension, leave,provident fund and medical benefits, are less favourable than those attached tothe post held by an officer or other employee immediately before his transferto the Board, the decision of the Central Government in the matter shall befinal.

8.Managing Committee and other committeesof the Board: (1) There shall be a Managing Committee of the Board for thepurpose of exercising such of the powers and performing such of the functionsof the Board as may be prescribed or as the Board may delegate to it.

(Managing Committee and other committees ofthe Board.)

(2) The Managing Committee of the Boardshall consist of the following members of the Board, namely: –

(a) the Vice-Chairman, who shall be theChairman of the Managing Committee;

(b) the Agriculture Commissioner to theGovernment of India;

(c) the Director-General, Indian Council ofAgricultural Research;

(d) one member to be nominated by theChairman from among the members referred to in clause (g) of sub-section (4) ofsection 4;

(e) Executive Director;

(f) Financial Adviser to the Ministry ofCentral Government dealing with agriculture;

(g) one member to be nominated by theChairman from among the members referred to in clause (j) of sub-section (4) ofsection 4;

(h) one member to be nominated by theChairman from among the members referred to in clause (k) of sub-section (4) ofsection 4;

(i) one member to be nominated by theChairman from among the members referred to in clause (l) of sub-section (4) ofsection 4; and

(j) one member to be nominated by theChairman from among the members referred to in clauses (m), (n) and (o) ofsub-section (4) of section 4.

(3) Subject to such control andrestrictions as may be prescribed, the Board may constitute other standingcommittees or ad hoc committees for exercising any powers or performing anyfunctions of the Board or for inquiring into or reporting and advising on anymatter which the Board may refer to them.

(4) The Board shall have the power toco-opt as members of the Managing Committee or any committee constituted undersub-section (3), such number of persons who are not members of the Board as it thinksfit and the persons so co-opted shall have the right to attend the meetings ofthe committee and take part in its proceedings but shall not have the right tovote.

(5) The persons co-opted as members of acommittee under sub-section (4) shall be entitled to receive such allowances orfees for attending meetings of the committee as may be fixed by the CentralGovernment.

9.Functions of the Board: (1) It shall bethe duty of the Board to promote, by such measures as it thinks fit, thedevelopment under the control of the Central Government of the oilseedsindustry and the vegetable oils industry.

(2) Without prejudice to the generality ofthe provisions contained in sub-section (1), the measures referred to thereinmay provide for-

(a) taking such measures for thedevelopment of the oilseeds industry and the vegetable oils industry as wouldenable farmers, particularly small farmers, to become participants in, andbeneficiaries of, the development and growth of the oilseeds industry and thevegetable oils industry;

(b) recommending measures for improving themarketing of oilseeds, products of oilseeds and vegetable oils and for theirquality control in India;

(c) imparting technical advice to anyperson who is engaged in the cultivation of oilseeds or the processing ormarketing of oilseeds and its products;

(d) providing for, or recommending,financial or other assistance for the production and development of adequatequantity of breeders’ seeds, foundation seeds and certified seeds of highquality, arranging supply of inputs for the oilseeds growers, adoption ofimproved methods of cultivation of oilseeds and modern technology forprocessing of oilseeds, extension of areas under oilseeds cultivation with aview to developing the oilseeds industry and the vegetable oils industry;

(e) recommending such measures as may bepracticable for assisting oilseeds growers to get incentive prices, includingrecommending, as and when necessary, after consultation with the AgriculturalPrices Commission, minimum and maximum prices for oilseeds and products ofoilseeds and vegetable oils;

(f) recommending and taking such measuresas may be necessary for collection, procurement and maintenance of bufferstocks of oilseeds for stabilising the price situation and market conditionsrespect of oilseeds, products of oilseeds and vegetable oils;

(g) recommending and taking such measuresas may be necessary for the-

(i) promotion and development of storagefacilities;

(ii) establishment of processing units, inrespect of oilseeds, and rendering such financial or other assistance as may beconsidered necessary for such purposes;

(iii) promotion of oilseeds growers’co-operatives and other appropriate agencies, with a view to achievingintegration between production, processing and marketing of oilseeds;

(h) recommending measures for regulatingimport, export or distribution of oilseeds or products of oilseeds or vegetableoils in the context of an integrated policy and programme of development ofoilseeds and vegetable oils;

(i) collecting statistics from growers ofoilseeds, dealers in oilseeds, manufacturers of products of oilseeds andvegetable oils and such other person and institutions as may be necessary onany matter relating to the oilseeds industry or vegetable oils industry andpublishing the statistics so collected or portions thereof or extractstherefrom;

(j) recommending the setting up andadoption of grade standards for oilseeds and their products and vegetable oils;

(k) financing suitable schemes in consultationwith the Central Government and the Governments of the States where oilseedsare grown on a large scale, so as to increase the production of oilseeds and toimprove their quality and yields; and for this purpose evolving schemes for theaward of prizes or grant of incentives to growers of oilseeds and themanufacturers of oilseeds products and vegetable oils and for providingmarketing facilities for oilseeds products and vegetable oils;

(l) assisting, encouraging promoting,co-ordinating and financing agricultural, technological, industrial or economicresearch on oilseeds, their products and vegetable oils in such manner as theBoard may deem fit by making use of available institutions;

(m) undertaking publicity work on theresearch and development of the oilseeds industry and the vegetable oilsindustry;

(n) setting up of regional offices andother agencies for the promotion and development of production, processing,grading and marketing of oilseeds and its products and vegetable oils in differentStates and Union territories for the efficient discharge of the functions ofthe Board;

(o) such other matters as may be considerednecessary for the purpose of carrying out the functions of the Board or as maybe prescribed.

(3) The Board shall perform its functionsunder this section in accordance with, and subject to such rules as may be madeby the Central Government in this behalf.

10.Dissolution of the Board: (1) TheCentral Government may, by notification in the Official Gazette and for reasonsto be specified therein, direct that the Board shall be dissolved from suchdate and for such period as may be specified in the notification:

Provided that before issuing any suchnotification, the Central Government shall give a reasonably opportunity to theBoard to make representations against the proposed dissolution and shallconsider the representations, if any, of the Board.

(2) When the Board is dissolved under theprovisions of sub-section (1), –

(a) all members, notwithstanding that theirterm of office has not expired, shall, from the date of dissolution, vacatetheir offices as such members;

(b) all powers and duties of the Boardshall, during the period of dissolution, be exercised and performed by suchperson or persons as the Central Government may appoint in this behalf andtheir remuneration shall be such as may be prescribed;

(c) all funds and other properties vestedin the Board shall, during the period of dissolution, vest in the CentralGovernment; and

(d) as soon as the period of dissolutionexpires, the Board shall be reconstituted in accordance with the provisions ofthis Act.

CHAPTER III

FINANCE, ACCOUNTS AND AUDIT

11.Grants and loans by the CentralGovernment: The Central Government may, after due appropriation made by Parliamentby law in this behalf, pay to the Board by way of grants or loans such sums ofmoney as the Central Government may think fit for being utilised for thepurposes of this Act.

12.Constitution of Oilseeds and VegetableOils Development Fund: (1) There shall be formed a Fund to be called theOilseeds and Vegetable Oils Development Fund and there shall be creditedthereto-

(a) any fees that may be levied andcollected under this Act or the rules or regulations made thereunder;

(b) any sums of money paid or any grants orloans granted by the Central Government for the purposes of this Act;

(c) any grants or loans that may be made byany person for the purposes of this Act (including loans obtained by the Boardunder section 13);

(d) any grants or donations from StateGovernments, voluntary organisations or other institutions.

(2) The Fund shall be applied-

(a) for meeting the cost of the measuresreferred to in section 9;

(b) for meeting the salaries, allowancesand other remuneration of the members, officers and other employees, as thecase may be, of the Board;

(c) for meeting the other administrativeexpenses of the Board and any other expenses authorised by or under this Act;

(d) for repayment of any loans.

13.Borrowing powers of the Board: (1) TheBoard may, for the purposes of carrying out its functions under this Act, andwith the previous approval of, and subject to the directions of the CentralGovernment, borrow money from-

(a) the public by the issue or sale ofbound or debentures or both, carrying interest at such rates as may bespecified therein;

(b) any bank or other institution;

(c) such other authority, organisation orinstitution as may be approved by the Central Government in this behalf.

(2) The Central Government may guaranteethe repayment of the monies borrowed by the Board under sub-section (1) and thepayment of interest thereon and other incidental charges.

14.Accounts and audit: (1) The Board shallmaintain proper accounts and other relevant records and prepare an annualstatement of accounts, in such form as may be prescribed by the CentralGovernment in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Board shall beaudited by the Comptroller and Auditor-General of India at such intervals asmay be specified by him and any expenditure incurred in connection with suchaudit shall be payable by the Board to the Comptroller and Auditor-General.

(3) The Comptroller and Auditor-General ofIndia and any person appointed by him in connection with the audit of theaccounts of the Board shall have the same rights and privileges and authorityin connection with such audit as the Comptroller and Auditor-General generallyhas in connection with the audit of the Government accounts and, in particular,shall have the right to demand the production of books, accounts, connectedvouchers and other documents and papers and to inspect any of the offices ofthe Board.

(4) The accounts of the Board as certifiedby the Comptroller and Auditor-General of India or any other person appointedby him in this behalf together with the audit report thereon shall be forwardedannually to the Central Government and that Government shall cause the same tobe laid before each House of Parliament.

CHAPTER IV

CONTROL BY CENTRAL GOVERNMENT

15.Directions by Central Government: TheBoard shall carry out such directions as may be issued to it from time to timeby the Central Government for the efficient administration of this Act.

16.Returns and reports: (1) The Board shallfurnish to the Central Government at such time and in such form and manner asmay be prescribed or as the Central Government may direct, such returns andstatements and such particulars in regard to any proposed or existing programmefor the promotion and development of the oilseeds industry and the vegetableoils industry, as the Central Government may, from time to time, require.

(2) The Board shall furnish a programme ofits activities for each financial year to the Central Government for theirinformation and directions, if any.

(3) Without prejudice to the provisions ofsub-section (1), the Board shall, as soon as possible, after the end of eachfinancial year, submit to the Central Government a report in such form andbefore such date, as may be prescribed, giving a true and full account of itsactivities, policy and programmes during the previous financial year.

(4) A copy of the report received undersub-section (3) shall be laid, as soon as may be, after it is received, beforeeach House of Parliament.

CHAPTER V

MISCELLANEOUS

17.Protection of action taken in goodfaith: No suit, prosecution or other legal proceeding shall lie against theCentral Government, or the Board or any committee appointed by it, or anymember of the Board or such committee, or any officer or other employee of theCentral Government or of the Board or any other person authorised by theCentral Government or the Board, for anything which is in good faith done orintended to be done under this Act or the rules or regulations made thereunder.

18.Power to make rules: (1) The CentralGovernment may, by notification in the Official Gazette, make rules to carryout the provisions of this Act.

(2) In particular, and without prejudice tothe generality of the foregoing power, such rules may provide for all or any ofthe following matters, namely: –

(a) the term of office of the members(other than the ex officio members), and the manner of filling vacancies among,and the procedure to be followed in the discharge of their functions by, suchmembers, under sub-section (5) of section 4;

(b) the manner in which the conditionssubject to which and the purposes for which any person may be associated by theBoard under sub-section (7) of section 4;

(c) the technical qualifications andpractical experience in oilseeds development required for appointment to thepost of the Executive Director to the Board under sub-section (1) of section 6;

(d) the powers which may be exercised andthe functions which may be performed by the Executive Director as the chiefexecutive of the Board under sub-section (2) of section 6;

(e) the powers which may be exercised andthe functions which may be performed by the Secretary to the Board undersub-section (3) of section 6;

(f) the control and restrictions subject towhich other officers and employees may be appointed by the Board undersub-section (5) of section 6;

(g) the powers which may be exercised andthe functions which may be performed by the Managing Committee undersub-section (1) of section 8;

(h) the control and restrictions subject towhich other standing committees or ad hoc committees may be constituted by theBoard under sub-section (3) of section 8;

(i) the matters in respect of which theBoard may undertake measures for the purpose of carrying out its functionsunder clause (o) of sub-section (2) of section 9;

(j) the remuneration payable to the personor persons referred to in clause (b) of sub-section (2) of section 10;

(k) the form in which the accounts of theBoard shall be maintained and the annual statement of accounts shall beprepared under sub-section (1) of section 14;

(l) the time at which and the form andmanner in which the Board shall furnish returns and statements and particularsregarding its proposed or existing programmes to the Central Government undersub-section (1) of section 16;

(m) the form in which and the date beforewhich the Board shall furnish to the Central Government the report of itsactivities, policy and programmes during the previous financial year undersub-section (3) of section 16;

(n) any other matter which has to be, ormay be, prescribed by rules under this Act:

19.Power to make regulations: (1) The Boardmay, with the previous sanction of the Central Government, by notification inthe Official Gazette, make regulations not inconsistent with the provisions ofthis Act and the rules made thereunder, to provide for all matters for whichprovision is necessary or expedient for the purposes of giving effect to theprovisions of this Act.

(2) In particular, and without prejudice tothe generality of the foregoing power, such regulations may provide for all orany of the following matters, namely: –

(a) the times and places of the meetings ofthe Board and the procedure to be followed for the transaction of business atsuch meetings and the number of members which shall form a quorum at a meetingunder sub-section (9) of section 4;

(b) the method of appointment, theconditions of service and the scales of pay and allowances of any of the otherofficers and employees of the Board under sub-section (5) of section 6;

(c) generally, for the efficient conduct ofthe affairs of the Board.

(3) The Central Government may, bynotification in the Official Gazette, modify or rescind any regulationsanctioned by it and the regulation so modified or rescinded shall thereafterhave effect only in such modified form or be of no effect, as the case may be;so, however, that any such modification or rescission shall be withoutprejudice to the validity of anything previously done under the regulation.

20.Rules and regulations to be laid beforeParliament: Every rule and every regulation made under this Act shall be laid,as soon as may be after it is made, before each House of Parliament, while itis in session, for a total period of thirty days which may be comprised in onesession or in two or more successive sessions, and if, before the expiry of thesession immediately following the session or the successive sessions aforesaid,both Houses agree in making any modification in the rule or regulation, as thecase may be, or both Houses agree that the rule or regulation, as the case maybe, should not be made, the rule or regulation shall thereafter have effectonly in such modified form or be of no effect, as the case may be; so, however,that any such modification or annulment shall be without prejudice to thevalidity of anything previously done under that rule or regulation.

21.Power to remove difficulties: (1) If anydifficulty arises in giving effect to the provisions of this Act, the CentralGovernment may, by order, not inconsistent with the provisions of this Act,remove the difficulty:

Provided that no such order shall be madeafter the expiry of a period of two years from the commencement of this Act.

(2) A copy of every order made undersub-section (1) shall be laid, as soon as may be, after it is made, before eachHouse of Parliament.

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