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TOBACCO BOARD ACT

Ministry of Law and Justice

Act nº 4 of 1975


  • Chapter I
  • Chapter II
  • Chapter III
  • Chapter IV
  • Chapter V
  • Chapter VI
  • Act nº 4 of 1975

Preamble

THE TOBACCO BOARD ACT, 1975

[Act, No. 4 of 1975]

[19th March, 1975]

PREAMBLEAn Act to provide for the development under the control of the Union of the tobacco industry.

BE it enacted by Parliament in the Twenty-sixth Year of the Republic of India as follows :

Chapter I

Section 1. Short title, extent and commencement

(1) This Act may be called The Tobacco Board Act, 1975.

(2) It extends to the whole of India.

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

Provided that different dates may be appointed for different provisions of this Act and for different States or different parts thereof.

Section 2. Declaration as to expediency of control by the Union

It is hereby declared that it is expedient in the public interest that the Union should take under its control the tobacco industry.

Section 3. Definitions

In this Act, unless the context otherwise requires,

(a) "Board" means the Tobacco Board established under section 4;

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

(c) "curing" shall have the meaning assigned to it in the Central Excises and Salt Act, 1944 and all its grammatical variations and cognate expressions shall be construed accordingly;

(d) "dealer" means a dealer in tobacco;

(e) "Executive Director" means the Executive Director appointed under section 6;

(f) "export" and "import" mean, respectively, taking out of or bringing into India, by land, sea or air;

(g) "member" means a member of the Board and includes the Chairman;

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

(i) "registered" means except in the expression "registered grower", registered under Chapter III of this Act and the rules made thereunder;

(j) "registered grower" means a person who has obtained a certificate of registration under section 10 for growing virginia tobacco.

Chapter II

Section 4. Establishment and Constitution of the Board

(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a Board to be called the Tobacco Board.

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

1 [(3) The head office of the Board shall be at Guntur in the State of Andhra Pradesh and the Board may, with the previous approval of the Central Government, establish offices or agencies at other places in or outside India.]

(4) The Board shall consist of the following members namely :-

(a) a Chairman to be appointed by the Central Government;

(b) three members of Parliament, of whom two shall be elected by the House of the People and one by the Council of States;

2 [eight] members to be appointed by the Central Government to represent respectively :-

(i) the Ministry of the Central Government dealing with Agriculture;

(ii) the Ministry of the Central Government dealing with Commerce;

(iii) the Ministry of the Central Government dealing with Finance;

(iv) the Ministry of the Central Government dealing with Industrial Development;

(v) the Indian Council of Agricultural Research;

(vi) the Government of Andhra Pradesh; 3 [*].

4 [(via) the Government of Gujarat; and]

(vii) the Government of Karnataka;

(d) two members to be appointed by the Central Government, by rotation in the alphabetical order, to represent the Government of tobacco-growing States 5 [other than the States of Andhra Pradesh, Gujarat and Karnataka];

(e) not more than 6 [ten members] to be appointed by the Central Government from amongst growers of tobacco, dealers and exporters (including packers) of tobacco and tobacco products, manufacturers of tobacco products and from amongst persons who, in the opinion of the Central Government, are experts in tobacco marketing or agricultural economics.

7 [Provided that the number of members appointed under this clause from amongst the growers of tobacco shall not exceed six]

7 [(f) the Agricultural Marketing Adviser to the Government of India, Department of Rural Develop­ment, ex officio;

(g) the Executive Director, ex officio.]

7 [(4A) It is hereby declared that the office of member of the Board shall not disqualify its holder for being chosen as, or for being, a member of either House of Parliament.]

(5) The Board shall elect, from amongst its members, a Vice-Chairman who shall exercise such of the powers and perform such of the functions of the Chairman as may be prescribed or as may be delegated to him by the Chairman.

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

(7) 8 [Any officer] of the Central Government (not being a member of the Board) as is deputed by the Central Government in this behalf, shall have the right to attend the meetings of the Board and take part in the proceedings thereof, but shall not have the right to vote.

(8) The Board may associate with itself, in such manner and for such purposes as may be prescribed, any person whose assistance or advice it may desire in complying with any of the provisions of this Act and a person so associated shall have the right to take part in the discussions of the Board relevant to the purposes for which he has been associated, but shall not have the right to vote.

(9) No act or proceeding of the Board or any committee appointed by it under section 7 shall be invalidated merely by reason of-

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

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

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

1. Sub-section (3) substituted by the Tobacco Board (Amdt.) Act, 1978 (36 of 1978), section. 2 (30-8-1978).

2. Substituted for the word "seven", by the Tobacco Board (Amdt.) Act, 1978 (36 of 1978), section. 2 (30-8-1978).

3. Word "and" omitted and cl. (c) (via) inserted, by the Tobacco Board (Amdt.) Act, 1978 (36 of 1978), section. 2 (30-8-1978).

4. Substituted for the words "other than the States of Andhra Pradesh and Karnataka", by the Tobacco Board (Amdt.) Act, 1978 (36 of 1978), section. 2 (30-8-1978).

5. Tobacco Board established w.e.f. 1-1-1976

6. Substituted for the words "eight members" by Tobaco Board (Amdt.) Act (57 of 1985), section. 2(1-12-85).

7. Inserted, by Tobaco Board (Amdt.) Act (57 of 1985), section. 2(1-12-85).

8. Substituted for the words "The Executive Director and any such officer", by Tobaco Board (Amdt.) Act (57 of 1985), section. 2(1-12-85).


Section 5. Salary and allowances and other conditions of service of Chairman

The Chairman shall be entitled to such salary and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may, from time to time, be fixed by the Central Government.

Section 6. Officers of the Board and other staff

(1) The Central Government shall appoint an Executive Director to exercise such powers and perform such duties under the Chairman as may be prescribed or as may be delegated to him by the Chairman.

(2) The Central Government shall appoint a Secretary to the Board to exercise such powers and perform such duties under the Chairman as may be prescribed or as may be delegated to him by the Chairman.

(3) The Executive Director and Secretary shall be entitled to such salaries and allowances and such conditions of service in respect of leave, pension, provident fund and other matters as may from time to time be fixed by the Central Government.

(4) Subject to such control, restrictions and conditions (including conditions as to appointment of the officers and other employess of the Tobacco Export Promotion Council, in the event of the said Council being wound up) as may be prescribed, the Board may appoint such other officers and employees as may be necessary for the efficient performance of its functions.

(5) The Chairman, the Executive Director, the Secretary and other officers and employees of the Board shall not undertake any work unconnected with their duties under this Act except with the permission of the Central Government.

Section 7. Committees of the Board

(1) The Board may appoint such committees as may be necessary for the efficient discharge of its duties and performance of its functions under this Act.

(2) The Board shall have the power to co-opt as members of any committee appointed under subsection (1) such number of persons who are not members of the Board as it may think fit and the persons so co-opted shall have the right to attend the meetings of the committee and take part in the proceedings of the committee but shall not have the right to vote.

Section 8. Functions of the Board

(1) It shall be the duty of the Board to promote, by such measures as it thinks fit, the development under the control of the Central Government of the tobacco industry.

(2) Without prejudice to the generality of the provisions of sub-section (1), the measures referred to therein may provide for-

1[(a) regulating the production and curing of virginia tobacco having regard to the following factors, namely :-

(i) the demand for virginia tobacco in India and abroad;

(ii) the suitability of land for growing virginia tobacco;

(iii) the differences in soil characteristics and agro-climatic factors in different regions of the country where virginia tobacco is grown and the effect thereof on the quality and quantity of virginia tobacco produced in those regions;

(iv) the marketability of different types of virginia tobacco;

(v) the need for rotation of crops; and

(vi) the nature of the holdings of the growers of virginia tobacco whether owned or leased;]

(b) keeping a constant watch on the virginia tobactco market, both in India and abroad, and ensuring that the growers get a fair and remunerative price for the same and that there are no wide fluctuations in the prices of the commodity;

(c) maintenance and improvement of existing markets, and development of new markets outside India for Indian virginia tobacco and its products and devising of marketing strategy in consonance with demand far the commodity outside India, including group marketing under limited brand names;

2[(cc) establishment by the Board of auction platform with the previous approval of the Central Government, for the sale of virginia tobacco by registered growers or curers, and functioning of the Board as an auctioneers auction platforms established by or registered with it subject to such conditions as may be specified by the Central Government;

(d) recommending to Central Government the minimum prices which may be fixed for purposes of export of virginia tobacco with view to avoiding unhealthy competition amongst the exporters;

(e) regulating in other respects virginia tobacco marketing in India and export of virginia tobacco having due regard to the interest of growers, manufacturers and dealers and the nation;

(f) propagating information useful to the growers, dealers and exporters (including packers) of virginia tobacco and manufacturers of virginia tobacco products and other s concerned with virginia tobacco and products thereof;

(g) purchasing virginia tobacco from growers when the same is considered necessary or expedient

for protecting the interests of the growers and disposal of the same in India or abroad as and when considered appropriate;

(h) promoting the grading of tobacco at the level of growers;

(i) sponsoring, assisting, co-ordinating or encouraging scientific, technological and economic research for the promotion of tobacco industry;

(j) such other matters as may be prescribed.

(3) Without prejudice to the generality of the provisions of sub-section (1) and subject to priority being given to matters specified in sub-section (2) the measures referred to in sub-section (1) may also provide in relation to tobacco, other than virginia tobacco, for all or any of the matters specified in clauses (c) to (g) of sub-section (2) and for this purpose any reference in those clauses to virginia tobacco shall be construed as including a reference to tobacco other than virginia tobacco.

(4) The Board shall perform its functions under this section in accordance with and subject to such rules as may be made by the Central Government and such rules may in particular make provisions for ensuring that the Board functions in close liaison with Union agencies, institutions and authorities concerned with the tobacco industry (including growing of tobacco) and avoid duplication of effort.

1. Inserted by the Tobacco Board (Amdt.) Act, 1978 (36 of 1978 ), S. 3 (30 -8 -1978 ).

2. Sub stituted by the Tobacco Board (Amdt.) Act (57 of 1985 ), S. 3 (1 -12 -85 ).


Section 9. Dissolution of the Board

(1) The Central Government may, by notification in the Official Gazette and for reasons to be specified therein, direct that the Board shall be dissolved from such date and for such period as may be specified in the notification :

Provided that before issuing any such notification, the Central Government shall give a reasonable opportunity to the Board to make representations against the proposed dissolution and shall consider the representations, if any, of the Board.

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

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

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

(c) all funds and other properties vested in the. Board shall, during the period of dissolution, vest in the Central Government; and

(d) as soon as the period of dissolution expires the Board shall be reconstituted in accordance with the provisions of this Act.

Chapter III

Section 10. Registration of growers of virginia a tobacco

(1) No person shall grow virginia tobacco except under, and in accordance with, the conditions of a certificate of registration obtained from the Board in accordance with the rules made, under this Act.

(2) In granting or refusing a certificate of registration, the: Board shall have regard to the demand for virginia tobacco in India and abroad, and the suitability of the land in relation to which the certificate is applied for and such other factors as may, having regard to the needs of the virginia tobacco industry, be prescribed.

(3) A certificate of registration granted in pursuance of this section shall be valid for such period as may be prescribed.

(4) Every application for such certificate of registration shall be accompanied by such fees (not exceeding one rupee for 0.4 hectre of the land in relation to which such application has been made) as may be prescribed.

Section 10A. Registration of growers of virginia tobacco seedlings for commercial purposes

1[10A. Registration of growers of virginia tobacco seedlings for commercial purposes.-

(1) No person shall grow virginia tobacco seedlings for commercial purposes unless he registers himself as a nursery grower with the Board in accordance with the rules made under this Act.

Explanation.- For the removal of doubts, it is hereby declared that nothing in this sub-section shall apply to the growing by a registered grower of any virginia tobacco seedlings for his own use.

(2) No registered nursery grower shall sell or cause to be sold any virginia tobacco seedlings grown by him to any person other than a registered grower.]

1. Inserted by Tobacco Board (Amdt.) Act (57 of 1985 ), Section. 4 (1 -12 -85 ).