Chandigarh Gazette, No. 2, 17 October 2019

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GOVERNMENT OF INDIA

Chandigarh Administration Gazette

Published by Authority

No. 2] CHANDIGARH, THURSDAY, OCTOBER 17, 2019 (ASVINA 25, 1941 SAKA)

[Assented to on

6th July, 2019

Act No. 8 of 2019]

THE SPECIAL ECONOMIC ZONES (AMENDMENT) ACT, 2019

AN

ACT

to amend the Special Economic Zones Act, 2005

BE it enacted by Parliament in the Seventieth Year of the Republic of India

as follows:—

1. (1) This Act may be called the Special Economic Zones (Amendment) Short title and commencement.

Act, 2019.

(2) It shall be deemed to have come into force on the 2nd day of March,

2019.

28 of 2005.

2. In section 2 of the Special Economic Zones Act, 2005, in clause Amendment of section 2.

(v),—

(i) after the words "local authority", the words ", trust or

any entity as may be notified by the Central Government" shall be

inserted;

(ii) for the words "authority or company", the words "authority,

company, trust or entity" shall be substituted.

3. (1) The Special Economic Zones (Amendment) Ordinance, 2019 is

Ord. 12 of 2019.

Repeal and savings hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken

under the said Ordinance shall be deemed to have been done or taken under

this Act.

[Assented to on

9th July, 2019

Act No. 9 of 2019]

THE JAMMU AND KASHMIR RESERVATION (AMENDMENT) ACT, 2019

AN

ACT

further to amend the Jammu and Kashmir Reservation Act, 2004.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows :—

1. (1) This Act may be called the Jammu and Kashmir Reservation Short title and commencement.

(Amendment) Act, 2019.

(2) It shall be deemed to have come into force on the 1st day of March, 2019.

xiv of 2004.

2. In section 2 of the Jammu and Kashmir Reservation Act, 2004 Amendment of section 2.

(hereinafter referred to as the principal Act), in clause (o),—

(a) for sub-clause (ii), the following sub-clause shall be substituted, namely:—

"(ii)the persons residing in the area adjoining Actual Line of Control and International Border; and";

(b) in second proviso, in clause (ix), in the proviso, for the words "Actual Line of Control", the words "Actual Line of Control or International Border" shall be substituted.

Amendment of section 3.

3. In section 3 of the principal Act, in sub-section (2), for the words "Line of Actual Control", the words "Actual Line of Control or International Border" shall be substituted.

4. (1) The Jammu and Kashmir Reservation (Amendment) Ordinance, Repeal and savings

Ord. 8 of 2019.

2019 is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.

[Assented to on

9th July, 2019

Act No. 10 of 2019]

THE CENTRAL EDUCATIONAL INSTITUTIONS (RESERVATION IN

TEACHERS' CADRE) ACT, 2019

AN

ACT

to provide for the reservation of posts in appointments by direct recruitment

of persons belonging to the Scheduled Castes, the Scheduled Tribes,

the socially and educationally backward classes and the economically

weaker sections, to teachers' cadre in certain Central Educational

Institutions established, maintained or aided by the Central

Government, and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Seventieth Year of the Republic of India

as follows:—

1. (1) This Act may be called the Central Educational Institutions Short title and commencement.

(Reservation in Teachers' Cadre) Act, 2019.

(2) It shall be deemed to have come into force on the 7th day of March,

2019.

Definitions.

2. In this Act, unless the context otherwise requires,—

(a) "appropriate authority" means the University Grants Commission

3 of 1956.

established under the University Grants Commission Act, 1956, or any

other authority or body established by or under a Central Act for the

determination, coordination or maintenance of the standards of higher

education in any Central Educational Institution;

(b) "branch of study" means a branch of study leading to three

principal levels of qualifications at bachelors (under graduate), masters

(post graduate) and doctoral levels;

(c) "Central Educational Institution" means—

(i) a University established or incorporated by or under a

Central Act;

(ii) an institution of national importance established by an Act

of Parliament;

(iii) an institution, declared as an institution deemed to be

University under section 3 of the University Grants Commission

3 of 1956.

Act, 1956, and maintained by or receiving aid from the Central

Government;

(iv) an institution maintained by or receiving aid from the Central

Government, whether directly or indirectly, and affiliated to an

institution referred to in sub-clause (i) or sub-clause (ii), or a

constituent unit of an institution referred to in sub-clause (iii); and

(v) an educational institution established by the Central

21 of 1860.

Government under the Societies Registration Act, 1860;

(d) "direct recruitment" means the process of appointing faculty

by inviting applications against public advertisement from persons eligible

to teach in a Central Educational Institution;

(e) "economically weaker sections" means such weaker sections

as are referred to in Explanation to clause (6) of article 15 of the

Constitution;

(f) "faculty" means the faculty of a Central Educational Institution;

(g) "Minority Educational Institution" means an institution

established and administered by the minorities under clause (1) of article

30 of the Constitution and so declared by an Act of Parliament or by the

Central Government or declared as a Minority Educational Institution under

2 of 2005.

the National Commission for Minority Educational Institutions Act, 2004;

(h) "sanctioned strength" means the number of posts in teachers' cadre approved by the appropriate authority;

(i) "Scheduled Castes" means the Scheduled Castes notified under article 341 of the Constitution;

(j) "Scheduled Tribes" means the Scheduled Tribes notified under article 342 of the Constitution;

(k) "socially and educationally backward classes" means such backward classes as are so deemed under article 342A of the Constitution;

(l) "teachers' cadre" means a class of all the teachers of a Central Educational Institution, regardless of the branch of study or faculty, who are remunerated at the same grade of pay, excluding any allowance or bonus.

Reservation of posts in recruit- ments by Central Educational Institutions.

3. (1) Notwithstanding anything in any other law for the time being in force, there shall be reservation of posts in direct recruitment out of the sanctioned strength in teachers' cadre in a Central Educational Institution to the extent and in the manner as may be specified by the Central Government by notification in the Official Gazette.

(2) For the purpose of reservation of posts, a Central Educational Institution shall be regarded as one unit.

4. (1) The provisions of section 3 shall not apply to—

Act not to apply in certain cases.

(a) the institutions of excellence, research institutions, institutions of national and strategic importance specified in the Schedule to this Act;

(b) a Minority Educational Institution.

(2) The Central Government may, by notification in the Official Gazette, amend the Schedule referred to in clause (a) of sub-section (1) from time to time.

Laying of notifications before Parliament.

5. Every notification made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the notification or both Houses agree that the notification should not be made, the notification shall thereafter have effect only 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 the validity of anything previously done under that notification.

6. (1) The Central Educational Institutions (Reservation in Teachers' Repeal and savings.

Cadre) Ordinance, 2019 is hereby repealed.

Ord. 13 of 2019.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.

THE SCHEDULE

[See section 4(1)(a)]

Sl. No. Name of the Institution of Excellence, etc.

(1)

(2)

1. Homi Bhabha National Institute, Mumbai and its constituent units, namely:—

(i) Bhabha Atomic Research Centre, Trombay;

(ii) Indira Gandhi Centre for Atomic Research, Kalpakkam;

(iii) Raja Ramanna Centre for Advanced Technology, Indore;

(iv) Institute for Plasma Research, Gandhinagar;

(v) Variable Energy Cyclotron Centre, Kolkata;

(vi) Saha Institute of Nuclear Physics, Kolkata;

(vii) Institute of Physics, Bhubaneshwar;

(viii) Institute of Mathematical Sciences, Chennai;

(ix) Harish-Chandra Research Institute, Allahabad;

(x) Tata Memorial Centre, Mumbai.

2. Tata Institute of Fundamental Research, Mumbai.

3. North-Eastern Indira Gandhi Regional Institute of Health and Medical

Science, Shillong.

4. National Brain Research Centre, Manesar, Gurgaon.

5. Jawaharlal Nehru Centre for Advanced Scientific Research, Bangalore.

6. Physical Research Laboratory, Ahmedabad.

7. Space Physics Laboratory, Thiruvananthapuram.

8. Indian Institute of Remote Sensing, Dehradun.

[Assented to on

15th July, 2019

Act No. 11 of 2019]

THE HOMOEOPATHY CENTRAL COUNCIL (AMENDMENT) ACT, 2019

AN

ACT

further to amend the Homoeopathy Central Council Act, 1973.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Homoeopathy Central Council Short title and commencement.

(Amendment) Act, 2019.

(2) It shall come into force on the 2nd day of March, 2019.

59 of 1973.

Amendment of section 3A.

2. In section 3A of the Homoeopathy Central Council Act, 1973, in sub- section (2), for the words "within a period of one year", the words "within a period of two years" shall be substituted.

3. (1) The Homoeopathy Central Council (Amendment) Ordinance, 2019 Ord. 11 of 2019.

Repeal and savings

is hereby repealed.

59 of 1973.

(2) Notwithstanding such repeal, anything done or any action taken under the Homoeopathy Central Council Act, 1973, as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the said Act as amended by this Act.

[Assented to on

16th July, 2019

Act No. 12 of 2019]

THE INDIAN MEDICAL COUNCIL (AMENDMENT) ACT, 2019

AN

ACT

further to amend the Indian Medical Council Act, 1956.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Indian Medical Council (Amendment) Short title and commencement.

102 of 1956.

Act, 2019.

(2) (A) The provisions of this Act shall, except sub-clause (i) of clause (c) of section 2, be deemed to have come into force on the 26th day of September, 2018; and

(B) sub-clause (i) of clause (c) of section 2 shall be deemed to have come into force on the 12th day of January, 2019.

2. In section 3A of the Indian Medical Council Act, 1956,—

Amendment of section 3A.

32 of 2010.

(a) in sub-section (1), for the words, brackets and figures "Indian Medical Council (Amendment) Act, 2010", the words, brackets and figures "Indian Medical Council (Amendment) Act, 2019" shall be substituted;

(b) in sub-section (2), for the words "three years", the words "two years" shall be substituted;

(c) in sub-section (4),—

(i) for the words "seven persons", the words "twelve persons"

shall be substituted;

(ii) for the words "and medical education", the words "and medical education or proven administrative capacity and experience" shall be substituted;

(d) after sub-section (7), the following sub-section shall be inserted,

namely:—

"(7A) The Board of Governors shall be assisted by a Secretary General who shall be appointed by the Central Government on deputation or contract basis and he shall be the head of the secretariat in the Council.".

3. (1) The Indian Medical Council (Amendment) Second Ordinance,

Ord. 5 of 2019.

Repeal and savings.

2019 is hereby repealed.

102 of 1956.

(2) Notwithstanding such repeal, anything done or any action taken under the Indian Medical Council Act, 1956, as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the said Act, as amended by this Act.

[Assented to on

17th July, 2019

Act No. 13 of 2019]

THE DENTISTS (AMENDMENT) ACT, 2019

AN

ACT

further to amend the Dentists Act, 1948.

BE it enacted by Parliament in the Seventieth Year of the Republic of India

as follows:—

1. (1) This Act may be called the Dentists (Amendment) Act, 2019. Short title and commencement.

(2) It shall come into force on such date as the Central Government may,

by notification in the Official Gazette, appoint.

16 of 1948.

Amendment of section 3.

2. In section 3 of the Dentists Act, 1948 (hereinafter referred to as the principal Act), in clause (f), the words and letter "and at least two shall be dentists registered in Part B of a State register" shall be omitted.

3. In section 21 of the principal Act, clause (b) shall be omitted.

4. In section 23 of the principal Act, clause (b) shall be omitted.

Amendment of section 21. Amendment of section 23.

[Assented to on

23rd July, 2019

Act No. 14 of 2019]

THE AADHAAR AND OTHER LAWS (AMENDMENT) ACT, 2019

AN

ACT

to amend the Aadhaar (Targeted Delivery of Financial and Other

Subsidies, Benefits and Services) Act, 2016 and further to amend the Indian

Telegraph Act, 1885 and the Prevention of Money-laundering Act, 2002.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

PART I

PRELIMINARY

1. (1) This Act may be called the Aadhaar and Other Laws (Amendment) Short title and commencement.

Act, 2019.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint; and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the commencement of that provision.

PART II

AMENDMENTS TO THE AADHAAR (TARGETED DELIVERY OF FINANCIAL AND OTHER SUBSIDIES, BENEFITS AND SERVICES) ACT , 2016

Amendment of Long title of Act 18 of 2016.

2. In the long title of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (hereafter in this Part referred to as the principal Act), after the words "the Consolidated Fund of India", the words "or the Consolidated Fund of the State" shall be inserted.

3. In section 2 of the Principal Act,—

Amendment of section 2.

(i) for clause (a), the following clause shall be substituted, namely:—

'(a) "Aadhaar number" means an identification number issued to an individual under sub-section (3) of section 3, and includes any alternative virtual identity generated under sub-section (4) of that section;';

(ii) after clause (a), the following clause shall be inserted, namely:—

'(aa) "Aadhaar ecosystem" includes enrolling agencies, Registrars, requesting entities, offline verification-seeking entities and any other entity or group of entities as may be specified by regulations;';

(iii) after clause (b), the following clauses shall be inserted, namely:—

'(ba) "Adjudicating Officer" means an Adjudicating Officer appointed under sub-section (1) of section 33B;

(bb) "Appellate Tribunal" means the Appellate Tribunal referred to in sub-section (1) of section 33C;';

(iv) after clause (i), the following clause shall be inserted, namely:—

'(ia) "child" means a person who has not completed eighteen years of age;';

(v) after clause (p), the following clauses shall be inserted, namely:—

'(pa) "offline verification" means the process of verifying the identity of the Aadhaar number holder without authentication, through such offline modes as may be specified by regulations;

(pb) "offline verification-seeking entity" means any entity desirous of undertaking offline verification of an Aadhaar number holder;'.

4. In section 3 of the principal Act, after sub-section (3), the following Amendment of section 3.

sub-section shall be inserted, namely:—

"(4) The Aadhaar number issued to an individual under sub-section (3) shall be a twelve-digit identification number and any alternative virtual identity as an alternative to the actual Aadhaar number of an individual that shall be generated by the Authority in such manner as may be specified by regulations.".

5. After section 3 of the principal Act, the following section shall be Insertion of new section 3A.

inserted, namely:—

Aadhaar number of children.

"3A. (1) The enrolling agency shall, at the time of enrolment of a child, seek the consent of the parent or guardian of the child, and inform the parent or guardian, the details specified under sub-section (2) of section 3.

(2) A child who is an Aadhaar number holder may, within a period of six months of attaining the eighteen years of age, make an application to the Authority for cancellation of his Aadhaar number, in such manner as may be specified by regulations and the Authority shall cancel his Aadhaar number.

(3) Notwithstanding anything in section 7, a child shall not be denied any subsidy, benefit or service under that section in case of failure to establish his identity by undergoing authentication, or furnishing proof of possession of Aadhaar number, or in the case of a child to whom no Aadhaar number has been assigned, producing an application for enrolment.".

6. In section 4 of the principal Act, for sub-section (3), the following Amendment of section 4.

sub-sections shall be substituted, namely:—

"(3) Every Aadhaar number holder to establish his identity, may voluntarily use his Aadhaar number in physical or electronic form by way of authentication or offline verification, or in such other form as may be notified, in such manner as may be specified by regulations.

Explanation.—For the purposes of this section, voluntary use of the Aadhaar number by way of authentication means the use of such Aadhaar number only with the informed consent of the Aadhaar number holder.

(4) An entity may be allowed to perform authentication, if the Authority

is satisfied that the requesting entity is—

(a) compliant with such standards of privacy and security as may

be specified by regulations; and

(b) (i) permitted to offer authentication services under the provisions

of any other law made by Parliament; or

(ii) seeking authentication for such purpose, as the Central Government in consultation with the Authority, and in the interest of State, may prescribe.

(5) The Authority may, by regulations, decide whether a requesting entity shall be permitted the use of the actual Aadhaar number during authentication or only an alternative virtual identity.

(6) Every requesting entity to whom an authentication request is made by an Aadhaar number holder under sub-section (3) shall inform to the Aadhaar number holder of alternate and viable means of identification and shall not deny any service to him for refusing to, or being unable to, undergo authentication.

(7) Notwithstanding anything contained in the foregoing provisions, mandatory authentication of an Aadhaar number holder for the provision of any service shall take place if such authentication is required by a law made by Parliament.".

Amendment of section 7.

7. In section 7 of the principal Act, after the words "the Consolidated Fund of India", the words "or the Consolidated Fund of State" shall be inserted.

8. In section 8 of the principal Act,—

Amendment of section 8.

(a) in sub-section (2),—

(i) in clause (a), after the words "consent of an individual", the words ", or in the case of a child obtain the consent of his parent or guardian" shall be inserted;

(ii) after clause (b), the following proviso shall be inserted, namely:—

"Provided that the requesting entity shall, in case of failure to authenticate due to illness, injury or infirmity owing to old age or otherwise or any technical or other reasons, provide such alternate and viable means of identification of the individual, as may be specified by regulations.";

(b) in sub-section (3), after the words "for authentication,", the words "or in the case of a child, his parent or guardian" shall be inserted.

9. After section 8 of the principal Act, the following section shall be Insertion of new section 8A.

inserted, namely:—

"8A. (1) Every offline verification of an Aadhaar number holder shall be performed in accordance with the provisions of this section.

Offline verifica- tion of Aadhaar number.

(2) Every offline verification-seeking entity shall,—

(a) before performing offline verification, obtain the consent of an individual, or in the case of a child, his parent or guardian, in such manner as may be specified by regulations; and

(b) ensure that the demographic information or any other

information collected from the individual for offline verification is only used for the purpose of such verification.

(3) An offline verification-seeking entity shall inform the individual undergoing offline verification, or in the case of a child, his parent or guardian, the following details with respect to offline verification, in such manner as may be specified by regulations, namely:—

(a) the nature of information that may be shared upon offline verification;

(b) the uses to which the information received during offline verification may be put by the offline verification-seeking entity; and

(c) alternatives to submission of information requested for, if any.

(4) No offline verification-seeking entity shall—

(a) subject an Aadhaar number holder to authentication;

(b) collect, use, or store an Aadhaar number or biometric information of any individual for any purpose;

(c) take any action contrary to any obligation on it as may be

specified by regulations.".

10. For section 21 of the principal Act, the following section shall be

substituted, namely:—

Substitution of new section for section 21.

"21. (1) The Authority shall appoint such officers and employees as

may be required for the discharge of its functions under this Act.

Officers and other employees of Authority.

(2) The salaries and allowances payable to, and the other terms and conditions of service of, the officers and employees of the Authority shall be such as may be specified by regulations.".

11. After section 23 of the principal Act, the following section shall be Insertion of new section 23A.

inserted, namely:—

Power of Authority to issue directions.

"23A. (1) The Authority may for the discharge of its functions under this Act, or any rules or regulations made thereunder, by order, issue such directions from time to time to any entity in the Aadhaar ecosystem, as it may consider necessary.

(2) Every direction issued under sub-section (1) shall be complied with by the entity in the Aadhaar ecosystem to whom such direction is issued.".

12. For section 25 of the principal Act, the following section shall be

substituted, namely:—

Substitution of new section for section 25.

Fund.

"25. (1) There shall be constituted a Fund to be called the Unique Identification Authority of India Fund and there shall be credited thereto—

(a) all grants, fees and charges received by the Authority under

this Act; and

(b) all sums received by the Authority from such other sources as

may be decided upon by the Central Government.

(2) The Fund shall be applied for meeting—

(a) the salaries and allowances payable to the Chairperson and members and administrative expenses including the salaries, allowances and pension payable to or in respect of officers and other employees of the Authority; and

(b) the expenses on objects and for purposes authorised by this Act.".

13. In section 29 of the principal Act,—

Amendment of section 29.

(a) for sub-section (3), the following sub-section shall be substituted,

namely:—

"(3) No identity information available with a requesting entity or

offline verification-seeking entity shall be—

(a) used for any purpose, other than the purposes informed in writing to the individual at the time of submitting any information for authentication or offline verification; or

(b) disclosed for any purpose, other than purposes informed in writing to the individual at the time of submitting any information for authentication or offline verification:

Provided that the purposes under clauses (a) and (b) shall be

in clear and precise language understandable to the individual.";

(b) in sub-section (4), for the words "or core biometric information", the words '', demographic information or photograph", shall be substituted.

14. In section 33 of the principal Act,—

Amendment of section 33.

(i) in sub-section (1),—

(a) for the words "District Judge", the words "Judge of a High Court" shall be substituted;

(b) in the proviso, after the words "hearing to the Authority", the words "and the concerned Aadhaar number holder" shall be inserted;

(c) after the proviso, the following proviso shall be inserted, namely:

"Provided further that the core biometric information shall not be disclosed under this sub-section.";

(ii) in sub-section (2), for the words "Joint Secretary", the word "Secretary" shall be substituted.

15. After Chapter VI of the principal Act, the following Chapter shall be Insertion of new Chapter VIA.

inserted, namely:—

"CHAPTER VIA

CIVIL PENALTIES

Penalty for failure to comply with provisions of this Act. rules, regulations and directions.

33A. (1) Where an entity in the Aadhaar ecosystem fails to comply with the provision of this Act, the rules or regulations made thereunder or directions issued by the Authority under section 23A, or fails to furnish any information, document, or return of report required by the Authority, such entity shall be liable to a civil penalty which may extend to one crore rupees for each contravention and in case of a continuing failure, with additional penalty which may extend to ten lakh rupees for every day during which the failure continues after the first contravention.

(2) The amount of any penalty imposed under this section, if not paid, may be recovered as if it were an arrear of land revenue.

Power to adjudicate.

33B. (1) For the purposes of adjudication under section 33A and imposing a penalty thereunder, the Authority shall appoint an officer of the Authority, who is not below the rank of a Joint Secretary to the Government of India and possessing such qualification and experience as may be prescribed, to be an Adjudicating Officer for holding an inquiry in such manner as may be prescribed.

(2) No inquiry under sub-section (1) shall be initiated except by a complaint made by the Authority.

(3) While holding an inquiry, the Adjudicating Officer shall—

(a) provide the entity in the Aadhaar ecosystem against whom complaint is made, an opportunity of being heard;

(b) have the power to summon and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which, in the opinion of the Adjudicating Officer, may be useful for or relevant to the subject matter of the inquiry.

(4) If the Adjudicating Officer, on such inquiry, is satisfied that the entity in the Aadhaar ecosystem has failed to comply with any provision of this Act or the rules or regulations made thereunder or directions issued by the Authority under section 23A, or has failed to furnish any information, document, or return of report required by the Authority, the Adjudicating Officer may, by order, impose such penalty under section 33A as he thinks fit.

Appeals to Appellate Tribunal.

24 of 1997.

33C. (1) The Telecom Disputes Settlement and Appellate Tribunal established under section 14 of the Telecom Regulatory Authority of India Act, 1997, shall be Appellate Tribunal for the purposes of hearing appeals against the decision of the Adjudicating Officer under this Act.

(2) A person or entity in the Aadhaar ecosystem aggrieved by an order of the Adjudicating Officer under section 33B, may prefer an appeal to the Appellate Tribunal within a period of forty-five days from the date of receipt of the order appealed against, in such form and manner and accompanied with such fee as may be prescribed:

Provided that the Appellate Tribunal may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.

(3) On receipt of an appeal under sub-section (2), the Appellate Tribunal may, after giving the parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, confirming, modifying or setting aside the order appealed against.

(4) The Appellate Tribunal shall send a copy of every order made by

it to the parties to the appeal and to the Adjudicating Officer.

(5) Any appeal filed under sub-section (2) shall be dealt with by the Appellate Tribunal as expeditiously as possible and every endeavour shall be made by it to dispose of the appeal within six months from the date on which it is presented to it.

(6) The Appellate Tribunal may, for the purpose of deciding an appeal before it, call for the records relevant to disposing of such appeal and make such orders as it thinks fit.

24 of 1997.

Procedure and power of the Appellate Tribunal.

33D. The provisions of sections 14-I to 14K (both inclusive), 16 and 17 of the Telecom Regulatory Authority of India Act, 1997 shall, mutatis mutandis, apply to the Appellate Tribunal in the discharge of its functions under this Act, as they apply to it in the discharge of its functions under that Act.

Appeal to Supreme Court of India.

5 of 1908.

33E. (1) Notwithstanding anything contained in the Code of Civil Procedure, 1908 or in any other law for the time being in force, an appeal shall lie against any order, not being an interlocutory order, of the Appellate Tribunal to the Supreme Court on any substantial question of law arising out of such order.

(2) No appeal shall lie against any decision or order made by the

Appellate Tribunal which the parties have consented to.

(3) Every appeal under this section shall be preferred within a period of forty-five days from the date of the decision or order appealed against:

Provided that the Supreme Court may entertain an appeal after the expiry of the said period of forty-five days if it is satisfied that there was sufficient cause for not filing it within that period.

Civil court not to have jurisdiction.

33F. No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which an Adjudicating Officer appointed under this Act or the Appellate Tribunal is empowered, by or under this Act to determine, and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act.".

16. In section 38 of the principal Act, for the words "three years", the Amendment of section 38.

words "ten years" shall be substituted.

17. In section 39 of the principal Act, for the words "three years", the Amendment of section 39.

words "ten years" shall be substituted.

18. For section 40 of the principal Act, the following section shall be substituted, namely:—

Substitution of new section for section 40.

"40. Whoever,—

(a) being a requesting entity, uses the identity information of an individual in contravention of sub-section (2) of section 8; or

Penalty for unauthorised use by requesting entity or offline verification- seeking entity.

(b) being an offline verification-seeking entity, uses the identity information of an individual in contravention of sub-section (2) of section 8A, shall be punishable with imprisonment which may extend to three years or with a fine which may extend to ten thousand rupees or, in the case of a company, with a fine which may extend to one lakh rupees or with both.".

19. In section 42 of the principal Act, for the words "one year", the words Amendment of section 42.

"three years" shall be substituted.

20. In section 47 of the principal Act, in sub-section (1), the following Amendment of section 47.

proviso shall be inserted, namely:—

"Provided that the court may, on a complaint made by an Aadhaar number holder or individual take cognizance of any offence punishable under section 34 or 35 or 36 or 37 or 40 or section 41.".

21. After section 50 of the principal Act, the following section shall be Insertiont of new section 50A.

inserted, namely:—

43 of 1961.

Exemption from tax on income.

"50A. Notwithstanding anything contained in the Income-tax Act, 1961 or any other enactment for the time being in force relating to tax on income, profits or gains, the Authority shall not be liable to pay income-tax or any other tax in respect of its income, profits or gains.".

22. In section 51 of the principal Act, for the words "Member, officer", the Amendment of section 51.

words "Member or officer" shall be substituted.

23. In section 53 of the principal Act, in sub-section (2),—

Amendment of section 53.

(i) after clause (a), the following clause shall be inserted, namely:—

"(aa) the purpose for which the requesting entity may be allowed by the Authority to perform authentication under sub-clause (ii) of clause (b) of sub-section (4) of section 4;";

(ii) after clause (g), the following clauses shall be inserted, namely:—

"(ga) the qualification and experience of, and the manner of appointment of, the Adjudicating Officer under sub-section (1) of section 33B;

(gb) the form, manner, and fee for an appeal to be filed under sub-

section (2) of section 33C;".

24. In section 54 of the principal Act, in sub-section (2),—

Amendment of section 54.

(i) for clause (a), the following clause shall be substituted, namely:—

"(a) the entities or group of entities in the Aadhaar ecosystem under clause (aa), the biometric information under clause (g) and the demographic information under clause (k), the process of collecting demographic information and biometric information from the individuals by enrolling agencies under clause (m), and the modes of offline verification of Aadhaar number holder under clause (pa) of section 2;";

(ii) after clause (b), the following clauses shall be inserted, namely:—

"(ba) the manner of generating an alternative virtual identity

under sub-section (4) of section 3;

(bb) the manner in which cancellation of an Aadhaar number

may be carried out under sub-section (2) of section 3A;";

(iii) after clause (c), the following clauses shall be inserted, namely:—

"(ca) standards of privacy and security to be complied with by

the requesting entities under sub-section (4) of section 4;

(cb) the classification of requesting entities under sub-section

(5) of section 4;";

(iv) after clause (f), the following clauses shall be inserted, namely:—

"(fa) the alternate and viable means of identification of individual

under the proviso to clause (b) of sub-section (2) of section 8;

(fb) the manner of obtaining consent under clause (a) of sub- section (2), the manner of providing information to the individual undergoing offline verification under sub-section (3), and the obligations of offline verification-seeking entities under clause (c) of sub-section (4) of section 8A;".

25. Section 57 of the principal Act shall be omitted.

Omission of section 57.

PART III

AMENDMENT TO THE INDIAN TELEGRAPH ACT, 1885

26. In section 4 of the Indian Telegraph Act, 1885, after sub-section (2),

the following sub-sections shall be inserted, namely:—

Amendment of section 4 of Act 13 of 1885.

'(3) Any person who is granted a license under the first proviso to sub-section (1) to establish, maintain or work a telegraph within any part of India, shall identify any person to whom it provides its services by—

(a) authentication under the Aadhaar (Targeted Delivery of Financial

18 of 2016.

and Other Subsidies, Benefits and Services) Act, 2016; or

(b) offline verification under the Aadhaar (Targeted Delivery of

18 of 2016.

Financial and Other Subsidies, Benefits and Services) Act, 2016; orThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 26 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) (c) use of passport issued under section 4 of the Passports Act,

15 of 1967. 1967; or

(d) use of any other officially valid document or modes of identification as may be notified by the Central Government in this behalf.

(4) If any person who is granted a license under the first proviso to sub-section (1) to establish, maintain or work a telegraph within any part of India is using authentication under clause (a) of sub-section (3) to identify any person to whom it provides its services, it shall make the other modes of identification under clauses (b) to (d) of sub-section (3) also available to such person.

(5) The use of modes of identification under sub-section (3) shall be a voluntary choice of the person who is sought to be identified and no person shall be denied any service for not having an Aadhaar number.

(6) If, for identification of a person, authentication under clause (a) of sub-section (3) is used, neither his core biometric information nor the Aadhaar number of the person shall be stored.

(7) Nothing contained in sub-sections (3), (4) and (5) shall prevent the Central Government from specifying further safeguards and conditions for compliance by any person who is granted a license under the first proviso to sub-section (1) in respect of identification of person to whom it provides its services.

18 of 2016.

Explanation.—The expressions "Aadhaar number" and "core biometric information" shall have the same meanings as are respectively assigned to them in clauses (a) and (j) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.'.

PART IV

AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

15 of 2002.

Insertion of new section 11A.

27. In Chapter IV of the Prevention of Money-laundering Act, 2002 (hereafter in this Part, referred to as the principal Act), before section 12, the following section shall be inserted, namely:—

'11A. (1) Every reporting entity shall verify the identity of its clients and the beneficial owner, by—

Verification of identity by reporting entity.

18 of 2016.

(a) authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 if the reporting entity is a banking company; or

(b) offline verification under the Aadhaar (Targeted Delivery of

18 of 2016.

Financial and Other Subsidies, Benefits and Services) Act, 2016; or

(c) use of passport issued under section 4 of the Passports Act,

15 of 1967. 1967; or

(d) use of any other officially valid document or modes of identification as may be notified by the Central Government in this behalf:

18 of 2016.

Provided that the Central Government may, if satisfied that a reporting entity other than banking company, complies with such standards of privacy and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, and it is necessary and expedient to do so, by notification, permit such entity to perform authentication under clause (a):

18 of 2016.

Provided further that no notification under the first proviso shall be issued without consultation with the Unique Identification Authority of India established under sub-section (1) of section 11 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 and the appropriate regulator.

(2) If any reporting entity performs authentication under clause (a) of sub-section (1), to verify the identity of its client or the beneficial owner it shall make the other modes of identification under clauses (b), (c) and (d) of sub-section (1) also available to such client or the beneficial owner.

(3) The use of modes of identification under sub-section (1) shall be a voluntary choice of every client or beneficial owner who is sought to be identified and no client or beneficial owner shall be denied services for not having an Aadhaar number.

(4) If, for identification of a client or beneficial owner, authentication or offline verification under clause (a) or clause (b) of sub-section (1) is used, neither his core biometric information nor his Aadhaar number shall be stored.

(5) Nothing in this section shall prevent the Central Government from notifying additional safeguards on any reporting entity in respect of verification of the identity of its client or beneficial owner.

18 of 2016.

Explanation.—The expressions "Aadhaar number" and "core biometric information" shall have the same meanings as are respectively assigned to them in clauses (a) and ( j) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.'.

28. In section 12 of the principal Act, in sub-section (1), clauses (c) and Amendment of section 12.

(d) shall be omitted.

29. In section 73 of the principal Act, in sub-section (2), clauses (j) and Amendment of section 73.

(jj) shall be omitted.

30. (1) The Aadhaar and Other Laws (Amendment) Ordinance, 2019 is Repeal and savings.

Ord. 9 of 2019. hereby repealed.

(2) Notwithstanding the repeal of the said Ordinance, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.

[Assented to on

23rd July, 2019

Act No. 15 of 2019]

THE CENTRAL UNIVERSITIES (AMENDMENT) BILL, 2019

AN

ACT

further to amend the Central Universities Act, 2009.

BE it enacted by Parliament in the Seventieth Year of the Republic of India

as follows:—

1. (1) This Act may be called the Central Universities (Amendment) Short title and commencement.

Act, 2019.

(2) It shall come into force on such date as the Central Government may,

by notification in the Official Gazette, appoint.

25 of 2009.

2. After section 3B of the Central Universities Act, 2009 (hereinafter referred to as the principal Act), the following sections shall be inserted, namely:—

Insertion of new sections 3C and 3D.

Establishment of Central University of Andhra Pradesh.

"3C. There shall be established a University, which shall be a body corporate, to be known as the Central University of Andhra Pradesh, having its territorial jurisdiction extending to the whole of the State of Andhra Pradesh, as specified in the First Schedule to this Act.

Establishment of Central Tribal University of Andhra Pradesh.

3D. There shall be established a Tribal University, which shall be a body corporate, to be known as the Central Tribal University of Andhra Pradesh, having its territorial jurisdiction extending to the whole of the State of Andhra Pradesh, as specified in the First Schedule to this Act, to provide avenues of higher education and research facilities primarily for the tribal population of India.".

3. In section 5 of the principal Act, the following proviso shall be inserted Amendment of section 5.

at the end, namely:—

"Provided that the Tribal University established under section 3D shall take additional measures for paying special attention to the tribal centric higher education and research, including art, culture and customs.".

4. For the First Schedule to the principal Act, the following Schedule shall be substituted, namely:—

Substitution of new Schedule for First Schedule.

"THE FIRST SCHEDULE

[See section 3(4)]

Serial Name of the Name of the Territorial No. State University jurisdiction

(1) (2) (3)

(4)

1. Andhra Pradesh Central University of Whole of the State of

Andhra Pradesh Andhra Pradesh.

2. Andhra Pradesh Central Tribal University Whole of the State of

of Andhra Pradesh Andhra Pradesh.

3. Bihar Central University of Territory in the south

South Bihar of the River Ganges in

the State of Bihar.

4. Bihar Mahatma Gandhi Territory in the north Central University of the River Ganges in the State of Bihar.

5. Gujarat Central University of Whole of the State of

Gujarat Gujarat.

6. Haryana Central University of Whole of the State of

Haryana Haryana.

7. Himachal Central University of Whole of the State of

Pradesh Himachal Pradesh Himachal Pradesh.

8. Jammu and Central University of Kashmir Division of the

Kashmir Kashmir State of Jammu and

Kashmir.

9. Jammu and Central University of Jammu Division of the

Kashmir Jammu State of Jammu and

Kashmir.

10. Jharkhand Central University of Whole of the State of

Jharkhand Jharkhand.

11. Karnataka Central University of Whole of the State of

Karnataka Karnataka.

12. Kerala Central University of Whole of the State of

Kerala Kerala.

13. Odisha Central University of Whole of the State of

Odisha Odisha.

14. Punjab Central University of Whole of the State of

Punjab Punjab.

15. Rajasthan Central University of Whole of the State of

Rajasthan Rajasthan.

16. Tamil Nadu Central University of Whole of the State of

Tamil Nadu Tamil Nadu.".

[Assented to on

24th July, 2019

Act No. 16 of 2019]

THE NATIONAL INVESTIGATION AGENCY (AMENDMENT) ACT, 2019

AN

ACT

to amend the National Investigation Agency Act, 2008.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:

1. (1) This Act may be called the National Investigation Agency Short title and commencement.

(Amendment) Act, 2019.

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

34 of 2008.

2. In the National Investigation Agency Act, 2008 (hereinafter referred to Amendment of section 1.

as the principal Act), in section 1, in sub-section (2),—

(i) in clause (b), the word "and" occurring at the end, shall be omitted;

(ii) in clause (c), after the words "may be", the word "and" shall be inserted;

(iii) after clause (c), the following clause shall be inserted, namely:—

"(d) to persons who commit a Scheduled Offence beyond India against the Indian citizens or affecting the interest of India.".

Amendment of section 2.

3. In section 2 of the principal Act, in sub-section (1), in clause (h), for the words "a Special Court constituted", the words "a Court of Session designated as Special Court" shall be substituted.

Amendment of section 3.

4. In section 3 of the principal Act, in sub-section (2), after the word "India", the words "and, subject to any international treaty or domestic law of the concerned country, outside India," shall be inserted.

5. In section 6 of the principal Act, after sub-section (7), the following

Amendment of section 6.

sub-sections shall be inserted, namely:—

"(8) Where the Central Government is of the opinion that a Scheduled Offence has been committed at any place outside India to which this Act extends, it may direct the Agency to register the case and take up investigation as if such offence has been committed in India.

(9) For the purposes of sub-section (8), the Special Court at New Delhi shall have the jurisdiction.''.

6. In section 11 of the principal Act,—

Amendment of section 11.

(i) in the marginal heading, for the word "constitute", the words "designate Court of Session as" shall be substituted;

(ii) in sub-section (1),—

"(a) for the portion beginning with the words "The Central Government", and ending with the words "Special Courts", the words "The Central Government shall, in consultation with the Chief Justice of the High Court, by notification in the Official Gazette, for the trial of Scheduled Offences, designate one or more Courts of Session as Special Court" shall be substituted;

(b) the following Explanation shall be inserted, namely:—

'Explanation.—For the purposes of this sub-section, the expression "High Court" means the High Court of the State in which a Court of Session to be designated as Special Court is functioning.';

(iii) sub-sections (3), (4), (5), (6) and (7) shall be omitted;

(iv) in sub-section (8),—

(a) for the words "by a person appointed as a Judge or an additional Judge of a Special Court", the words, brackets and figure "by the Sessions Judge of the Court of Session referred to in sub-section (1)" shall be substituted;

(b) for the words "such judge or additional judge and the Central Government", the words "judge of the Special Court and the appointing authority in consultation with the Central Government" shall be substituted;

(c) for the words "as may be specified in that order" occurring at

the end, the words ",whichever is earlier" shall be substituted;

(v) for sub-section (9), the following sub-section shall be substituted,

namely:—

"(9) When more than one Special Court is designated for an area or

areas, the senior-most Judge shall distribute the business among them.".

7. In section 22 of the principal Act,—

Amendment of section 22.

(i) in the marginal heading, for the word "constitute", the words

"designate Court of Session as" shall be substituted;

(ii) in sub-section (1), for the words "constitute one or more", the

words "designate one or more Courts of Session as" shall be substituted;

(iii) in sub-sections (2), (3) and (4), for the word "constituted"

wherever it occurs, the word "designated" shall be substituted.

8. In the Schedule to the principal Act,—

Amendment of Schedule.

(i) for serial number 1 and the entry relating thereto, the following

serial numbers and entries shall be substituted, namely:—

"1. The Explosive Substances Act, 1908 (6 of 1908);

1A. The Atomic Energy Act, 1962 (33 of 1962);";

(ii) in serial number 3, for the figures, brackets and word "1982 (65 of 1982)", the figures, brackets and word "2016 (30 of 2016)" shall be substituted;

(iii) in serial number 8, for entry (b), the following entries shall be

substituted, namely:—

"(b)Sections 370 and 370A of Chapter XVI of the Indian Penal

Code (45 of 1860);

(c) Sections 489-A to 489-E (both inclusive) of the Indian Penal

Code (45 of 1860);

(d) Sub-section (1AA) of section 25 of Chapter V of the Arms Act,

1959 (54 of 1959);

(e) Section 66F of Chapter XI of the Information Technology Act,

2000 (21 of 2000).".

[Assented to on

26th July, 2019

Act No. 17 of 2019]

THE NEW DELHI INTERNATIONAL ARBITRATION CENTRE

ACT, 2019

AN

ACT

to provide for the establishment and incorporation of the New Delhi International Arbitration Centre for the purpose of creating an independent and autonomous regime for institutionalised arbitration and for acquisition and transfer of the undertakings of the International Centre for Alternative Dispute Resolution and to vest such undertakings in the New Delhi International Arbitration Centre for the better management of arbitration so as to make it a hub for institutional arbitration and to declare the New Delhi International Arbitration Centre to be an institution of national importance and for matters connected therewith or incidental thereto.

WHEREAS dispute resolution process has a huge impact on the Indian economy and global perception on doing business in our country and it has become necessary to inspire confidence and credibility among the litigants of commercial disputes;

AND WHEREAS rapidly changing economic activity demands expeditious settlement of disputes and creation and establishment of institutional arbitration;

21 of 1860.

AND WHEREAS the International Centre for Alternative Dispute Resolution was set up in the year 1995, under the aegis of the Central Government and registered under the Societies Registration Act, 1860, with the objective of promoting alternative dispute resolution mechanism and providing facilities for the same;

AND WHEREAS the International Centre for Alternative Dispute Resolution has received land and substantial funding by way of grants and other benefits from the Central Government for constructing infrastructure and making other facilities;

AND WHEREAS the International Centre for Alternative Dispute Resolution has not been able to actively engage and embrace developments in the arbitration ecosystem and to create a reputation par excellence keeping pace with the dynamic nature of arbitration over more than two decades;

AND WHEREAS studies conducted by the High Level Committee appointed by the Central Government indicate that the International Centre for Alternative Dispute Resolution has failed to address the growing needs of the institutional arbitration and also to bear optimum caseload and to become better choice to the parties for arbitration;

AND WHEREAS it has become expedient to take over the undertakings of the International Centre for Alternative Dispute Resolution including its regional offices without interfering with its activities and without adversely affecting its character as a Society but to utilise its existing infrastructure and other facilities which have been set up by using the public funds provided by the Government and to incorporate a robust institution for domestic and international arbitration to be known as the New Delhi International Arbitration Centre;

AND WHEREAS it is considered necessary to declare the New Delhi International Arbitration Centre as an institution of national importance for its overall development as a major arbitration hub by promoting quick and efficient dispute resolution mechanism.

BE it enacted by Parliament in the Seventieth Year of the Republic of India

as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the New Delhi International Arbitration Centre Short title and commencement.

Act, 2019.

(2) It shall be deemed to have come into force on the 2nd March, 2019.

Definitions.

2. (1) In this Act, unless the context otherwise requires,—

(a) "Centre" means the New Delhi International Arbitration Centre

established and incorporated under section 3;

(b) "Chairperson" means the Chairperson of the Centre referred to

in clause (a) of section 5;

(c) "Chief Executive Officer" means the Chief Executive Officer

appointed under section 21;

(d) "Committee" means the relevant Committee of the Centre referred

to in section 19;

(e) "Custodian" means the person who is appointed as Custodian

under sub-section (2) of section 11 in respect of the undertakings;

(f) "Fund" means the Fund of the Centre to be maintained under

section 25;

(g) "Member" means Full-time or Part-time Member of the Centre

and includes the Chairperson;

(h) "notification" means a notification published in the Official Gazette;

(i) "prescribed" means prescribed by rules made by the Central

Government under this Act;

(j) "regulations" means regulations made by the Centre under this

Act;

21 of 1860.

(k) "Society" means the International Centre for Alternative Dispute Resolution, registered as such under the Societies Registration Act, 1860, and having its registered office at New Delhi;

(l) "specified date" means the date as may be specified by the Central

Government by notification;

(m) "undertakings" means the undertakings of the Society which vests

with the Central Government under section 7.

26 of 1996.

(2) All other words and expressions used herein but not defined and defined in the Arbitration and Conciliation Act, 1996, shall have the same meanings as assigned to them in that Act.

CHAPTER II

ESTABLISHMENT AND INCORPORATION OF NEW DELHI INTERNATIONAL ARBITRATION CENTRE

3. (1) The Central Government shall, by notification, establish a body to be called the New Delhi International Arbitration Centre for the purposes of exercising the powers and discharging the functions under this Act.

Establishment and incorporation of New Delhi Interna tional Arbitration centre.

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

4. (1)Whereas, the objects of the New Delhi International Arbitration Centre are such as to make it as an institution of national importance, it is hereby declared that the New Delhi International Arbitration Centre is an institution of national importance.

Declaration of New Delhi Interna tional Arbitration Centre as an institution of national impor- ta nce.

(2) The head office of the Centre shall be at New Delhi and it may with the previous approval of the Central Government, establish branches at other places in India and abroad.

5. The Centre shall consist of the following Members, namely:––

Composition of Centre.

(a) a person, who has been a Judge of the Supreme Court or a Judge of a High Court or an eminent person, having special knowledge and experience in the conduct or administration of arbitration, law or management, appointed by the Central Government in consultation with the Chief Justice of India––Chairperson;

(b) two eminent persons having substantial knowledge and experience in institutional arbitration, both domestic and international, appointed by the Central Government––Full-time Members or Part-time Members;

(c) one representative of a recognised body of commerce and industry, chosen on rotational basis by the Central Government––Part-time Member;

(d) Secretary, Department of Legal Affairs, Ministry of Law and Justice or his representative, not below the rank of the Joint Secretary–– Member, ex officio;

(e) one Financial Adviser nominated by the Department of Expenditure, Ministry of Finance––Member, ex officio; and

(f) Chief Executive Officer––Member, ex officio.

6. (1) The Chairperson and Members shall hold office for a term of three years from the date on which they enter upon their office and shall be eligible for re- appointment:

Terms and conditions, etc., of Chairperson and Members.

Provided that no Chairperson or Member shall hold office as such after he has attained the age of seventy years in the case of Chairperson and sixty-seven years in the case of a Member.

(2) The terms and conditions, salaries and allowances payable to the

Chairperson and Full-time Member shall be such as may be prescribed.

(3) The term of office of a Member appointed to fill a casual vacancy shall be for the remainder of the term of the Member in whose place he has been appointed.

(4) The Part-time Member shall be entitled to such travelling and other

allowances as may be prescribed.

CHAPTER III

ACQUISITION AND TRANSFER OF UNDERTAKINGS OF SOCIETY

Transfer and vesting.

7. On and from the specified date, so much of the undertakings of the Society as form part of, or are relatable to the Society, and the right, title and interest of the Society in relation to such undertakings, shall, by virtue of this Act, stand transferred to, and vest in, the Central Government.

General effect of vesting.

Ord. 10 of 2019.

8. (1) The undertakings vested under section 7 shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges, and all property (movable and immovable), including lands, buildings, works, projects, instruments, automobiles and other vehicles, cash balances, funds, including reserve funds, investments and book debts of the Society as form part of, or are relatable to, the Society and all other rights and interest arising out of such properties as were immediately before the commencement of the New Delhi International Arbitration Centre Ordinance, 2019 in the ownership, possession, power or control of the Society, and all books of account, registers and all other documents of whatever nature relating thereto.

(2) All properties and assets as aforesaid which have vested in the Central Government under section 7 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them or of any attachment, injunction, decree or order of any court or other authority restricting the use of such properties or assets in any manner or appointing any receiver in respect of the whole or any part of such properties or assets shall be deemed to have been withdrawn.

(3) Any licence or other instrument granted to the Society in relation to any undertaking which has vested in the Central Government under section 7 at any time before the specified date and in force immediately before the specified date, shall continue to be in force on and after such day in accordance with its tenor in relation to and for the purpose of such undertaking or where the undertaking is directed under section 10, to vest in the Centre, the Centre shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to the Centre and the Centre shall hold it for the remainder of the period which the Society would have held it under the terms thereof.

(4) If, on the specified date, any suit, appeal or other proceeding, of whatever nature, in relation to any property or asset which has vested in the Central Government under section 7, instituted or preferred by or against the Society is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the undertaking of the Society of anything contained in this Act, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the Central Government or where the undertakings of the Society are directed under section 10, to vest in the Centre, by or against the Centre.

Liability prior to specified date.

9. Every liability in relation to any undertaking in respect of any period prior to the specified date, shall be enforceable against the Society and not against the Central Government.

10. (1) Notwithstanding anything contained in sections 7 and 8, the Central

Government shall, as soon as may be after the specified date, direct by notification,

that the undertakings and the right, title and interest of the Society in relation to

Power of Central Government to direct vesting of undertaking in Centre.

such undertakings which had vested in the Central Government under section 7,

shall, vest in the Centre either on the date of publication of the notification or on

such earlier or later date as may be specified in the notification.

(2) Where the right, title and interest of the Society in relation to the

undertakings vest, under sub-section (1), in the Centre, the Centre shall, on and

from the date of such vesting, be deemed to have become the owner in relation to

such undertakings and the rights and liabilities of the Central Government in relation

to such undertakings shall, on and from the date of such vesting, be deemed to have

become, the rights and liabilities, respectively, of the Centre.

Management, etc., of undertakings.

11. (1) The general superintendence, direction, control and management of affairs of the undertakings, the right, the interest in relation to which have vested in the Central Government under section 7, shall––

(a) where a direction has been made by the Central Government under sub-section (1) of section 10, vest in the Centre; or

(b) where no such direction has been made by the Central Government, vest in the Custodian appointed by the Central Government under sub-section (2),

and, thereupon, the Centre or the Custodian so appointed, as the case may be, shall be entitled to exercise all such powers and do all such things as the Society, is authorised to exercise and do in relation to its undertakings.

(2) The Central Government may appoint any person as the Custodian of the undertakings in relation to which no direction has been made by it under sub-section (1) of section 10.

(3) The Custodian so appointed shall receive such remuneration as the Central Government may fix and shall hold office during the pleasure of the Central Government.

Duties of persons in charge of management of undertakings to deliver all assets.

12. (1) On the vesting of the management of the undertakings in the Centre or on the appointment of a Custodian under sub-section (2) of section 11, all persons in charge of management of the undertakings immediately before such vesting or appointment shall be bound to deliver to the Centre or Custodian, as the case may be, all assets, books of account, registers and other documents in their custody relating to the undertakings.

(2) The Central Government may issue such directions as it may deem desirable in the circumstances of the case to the Custodian as to the powers and duties of the Custodian and such Custodian may also, if it is considered necessary so to do, apply to the Central Government at any time for instructions as to the manner in which the management of the undertaking shall be conducted or in relation to any other matter arising in the course of such management.

(3) Any person who on the specified date, has in his possession or under his control, any books, documents or other papers relating to the undertakings shall be liable to account for the said books, documents or other papers to the Central Government or the Custodian or the Centre, as the case may be, and shall deliver them to the Central Government or the Custodian or the Centre or to such person or body of persons as the Central Government or the Centre may specify in this behalf.

(4) The Central Government or the Centre may take or cause to be taken, all necessary steps for securing possession of all undertakings which have vested in the Central Government or the Centre under this Act.

Ord. 10 of 2019.

(5) The Society shall, within such period as the Central Government may allow in this behalf, furnish to that Government a complete inventory of all its properties and assets, as on the commencement of the New Delhi International Arbitration Centre Ordinance, 2019 pertaining to the undertaking and for this purpose, the Central Government or Custodian or the Centre shall afford to the Society, or body all reasonable facilities.

Certain powers of Central Govern- ment or Centre.

13. The Central Government or the Custodian or the Centre shall be entitled to receive up to the specified date, to the exclusion of all other persons, any money due to the Society in relation to its undertakings which have vested in the Central Government or Custodian or the Centre, as the case may be, andThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 37 Ord. 10 of 2019.

realised after the commencement of the New Delhi International Arbitration Centre Ordinance, 2019, notwithstanding that the realisation pertains to a period prior to the commencement of the New Delhi International Arbitration Centre Ordinance, 2019.

Objects of Centre.

14. The objects of the Centre shall be,––

(a) to bring targeted reforms to develop itself as a flagship institution

for conducting international and domestic arbitration;

(b) to promote research and study, providing teaching and training, and organising conferences and seminars in arbitration, conciliation, mediation and other alternative dispute resolution matters;

(c) to provide facilities and administrative assistance for conciliation,

mediation and arbitral proceedings;

(d) to maintain panels of accredited arbitrators, conciliators and mediators both at national and international level or specialists such as surveyors and investigators;

(e) to collaborate with other national and international institutions and organisations for ensuring credibility of the Centre as a specialised institution in arbitration and conciliation;

(f) to set up facilities in India and abroad to promote the activities of

the Centre;

(g) to lay down parameters for different modes of alternative dispute

resolution mechanisms being adopted by the Centre; and

(h) such other objectives as it may deem fit with the approval of the

Central Government.

15. Without prejudice to the provisions contained in section 14, the Centre Functions of Centre.

shall strive,––

(a) to facilitate for conducting international and domestic arbitration

and conciliation in the most professional manner;

(b) to provide cost effective and timely services for the conduct of

arbitration and conciliation at national and international level;

(c) to promote studies in the field of alternative dispute resolution and related matters, and to promote reforms in the system of settlement of disputes;

(d) to undertake teaching and to provide for diffusion of knowledge of law and procedures on alternative dispute resolution and related matters and to award certificates and other academic or professional distinction;

(e) to impart training in alternative dispute resolution and related

matters to those who are handling arbitration, conciliation and mediation;

(f) to co-operate with other societies, institutions and organisations,

national or international for promoting alternative dispute resolution; and

(g) to perform such other functions as may be entrusted to it by the

Central Government for promoting alternative dispute resolution.

16. No act or proceedings of the Centre shall be invalid merely by

reason of,––

Vacancies, etc., not to invalidate proceedings of Centre.

(a) any vacancy or any defect in the constitution of the Centre; orThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 38 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) (b) any defect in the appointment of a person acting as a Member of the Centre; or

(c) any irregularity in the procedure of the Centre not affecting the merits of the case.

Resignation of Members.

17. The Chairperson or the Full-time Member or Part-time Member may, by notice in writing, under his hand addressed to the Central Government, resign his office:

Provided that the Chairperson or the Full-time Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earlier.

18. (1) The Central Government may, remove a Member from his office Removal of Members.

if he,––

(a) is an undischarged insolvent; or

(b) has engaged at any time (except Part-time Member), during his term of office, in any paid employment; or

(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or

(f) has become physically or mentally incapable of acting as a Member.

(2) Notwithstanding anything contained in sub-section (1), no Member shall be removed from his office on the grounds specified in clauses (d) and (e) of that sub-section unless the Supreme Court, on a reference being made to it in this behalf by the Central Government, has, on an inquiry, held by it in accordance with such procedure as may be prescribed in this behalf by the Supreme Court, reported that the Member, ought on such ground or grounds to be removed.

19. (1) The Centre may constitute such Committees as may be considered Committees of Centre.

necessary to administer various aspects of its functions.

(2) The composition and functions of the Committees referred to in sub- section (1) shall be such as may be prescribed.

(3) The Committee shall meet at such time and at such places and shall observe such rules of procedure in regard to the transaction of business at its meetings including the quorum as may be specified by the regulations.

20. (1) The Chairperson shall ordinarily preside at the meetings of the Meetings of Centre.

Centre:

Provided that, in his absence, the Member chosen by the other Members present amongst themselves shall preside at the meetings.

(2) It shall be the duty of the Chairperson to ensure that the decisions taken by the Centre are implemented.

(3) The Chairperson shall exercise such other powers and perform such other duties as are assigned to him under this Act.

(4) The Centre shall meet at least four times a year and follow such procedure in its meetings including quorum at such meetings in such manner as may be specified by the regulations.

(5) All questions which come up before any meeting of the Centre shall

be—

(a) decided by a majority of votes by the Members present and voting, and in the event of an equality of votes, the Chairperson or in his absence, the person presiding, shall have a casting vote;

(b) dealt with as expeditiously as possible and the Centre shall dispose of the same within a period of sixty days from the date of receipt of the application:

Provided that where any such application could not be disposed of within the said period of sixty days, the Centre shall record its reasons in writing for not disposing of the application within that period.

(6) The Chairperson may invite any expert, not being a Member, to attend the meetings of the Centre, but such invitee shall not be entitled to vote at the meeting.

Chief Executive Officer.

21. (1) There shall be a Chief Executive Officer of the Centre who shall be responsible for day-to-day administration of the Centre and for this purpose, he shall maintain liaison with the Centre and the Secretariat.

(2) The appointment, qualifications and the terms and conditions of services of the Chief Executive Officer shall be such as may be specified by the regulations.

(3) The Chief Executive Officer shall exercise such powers and discharge such functions as may be specified by the regulations or as may be delegated to him by the Centre.

Delegation of powers.

22. The Centre may, for the purpose of discharging of its powers, functions and duties, by general or special order in writing, specify the powers and duties conferred or imposed upon the Centre by or under this Act (except the power to make regulation) which may also be exercised or performed by the Chief Executive Officer or any officer or officers of the Centre and the conditions and restrictions, if any, subject to which the powers and duties may be exercised and performed.

Secretariat.

23. (1) There shall be a Secretariat to the Centre consisting of––

(a) Registrar, who shall supervise the activities of the Centre;

(b) Counsel, dealing with the matters relating to domestic and

international arbitration; and

(c) such number of other officers and employees as may be

prescribed.

(2) The qualifications, experience, method of selection and the functions of the Registrar, Counsel and other officers and employees shall be such as may be prescribed.

CHAPTER IV

FINANCE, ACCOUNTS AND AUDIT

Grants by Central Government. 24. The Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Centre in each financial year such sums of money and in such manner as it may think fit for being utilised for the purposes of this Act.

Fund of Centre.

25. (1) The Centre shall maintain a Fund to which shall be credited,—

(a) all monies provided by the Central Government;

(b) all fees and other charges received during or in connection with the arbitration, conciliation, mediation or other proceedings;

(c) all monies received by the Centre for the facilities provided by it to the parties;

(d) all monies received by the Centre in the form of donations, grants, contributions and income from other sources; and

(e) the amount received from the investment income.

(2) All monies credited to the Fund shall be deposited in such banks or invested in such manner as may be decided by the Centre.

(3) The Fund shall be applied towards meeting the salaries and other allowances of Members and the expenses of the Centre including expenses incurred in the exercise of its powers and discharge of its duties under this Act.

Accounts and audit.

26. (1) The Centre shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance sheet, in such form and manner as may be prescribed in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Centre shall be audited by the Comptroller and Auditor- General of India and any expenditure incurred by him in connection with such audit shall be payable by the Centre to the Comptroller and Auditor-General of India.

(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of the Centre shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General of India has in connection with the audit of the Government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the Centre.

(4) The accounts of the Centre as certified by the Comptroller and Auditor- General of India or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the Central Government and the Central Government shall cause the same to be laid before each House of Parliament.

Assessment of assets and liabilities of undertaking.

27. The assets and liabilities in relation to any undertaking under this Act shall be caused to be assessed by any agency authorised by the Comptroller and Auditor-General of India in such manner as may be specified by him and any payment on a claim to be made in relation thereto shall be settled by him between the Society and the Central Government and shall be paid by the Society or the Central Government, as the case may be, in the manner as may be specified by the Comptroller and Auditor-General of India.

CHAPTER V

CHAMBER OF ARBITRATION AND ARBITRATION ACADEMY

Chamber of Arbitration.

28. (1) The Centre shall, establish a Chamber of Arbitration which shall empanel the Arbitrators and also scrutinise the applications for admission in the panel of reputed arbitrators to maintain a permanent panel of arbitrators.

(2) The Chamber of Arbitration shall consist of experienced arbitration practitioners of repute, at national and international level and persons having wide experience in the area of alternative dispute resolution and conciliation.

(3) The Centre shall by regulations lay down the criteria for admission to the panel of the cadre so as to maintain a pool of reputed arbitrators having expertise in international commercial arbitration and arbitration other than international commercial arbitration.

(4) The Registrar to the Secretariat of the Centre shall act as the Member-

Secretary to the Chamber of Arbitration.

29. (1) The Centre may establish an Arbitration Academy––

Arbitration Academy.

(a) to train the arbitrators, particularly in the area of international commercial arbitration to compete on par with the reputed international arbitral institutions;

(b) to conduct research in the area of alternative dispute resolution

and allied areas; and

(c) to give suggestions for achieving the objectives of the Act.

(2) For the purposes of sub-section (1), there may be constituted a permanent three member committee in order to suggest and to submit a report to the Centre with respect to the amendments, if any, necessary to the rules and regulations made under this Act.

CHAPTER VI

MISCELLANEOUS

30. (1) The Central Government may, by notification, make rules to carry Power to make rules.

out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing

power, such rules may make provision for—

(a) the terms and conditions and the salaries and allowances payable to the Chairperson and Full-time Members under sub-section (2) of section 6;

(b) the travelling and other allowances payable to the Part-time

Members under sub-section (4) of section 6;

(c) the composition and functions of the Committees referred to in

sub-section (2) of section 19;

(d) the number of officers and employees of the Secretariat of the

Centre under clause (c) of sub-section (1) of section 23;

(e) the qualifications, experience, method of selection and the functions of the Registrar, Counsel and other officers and employees of the Centre under sub-section (2) of section 23;

(f) annual statement of accounts, including the balance sheet under

sub-section (1) of section 26; and

(g) any other matter in respect of which provision is to be made or

may be made under this Act.

Power to make regulations.

31. (1) The Centre may, with the previous approval of the Central Government, by notification, make regulations consistent with this Act and the rules made thereunder to provide for all matters for which provision is necessary or expedient for the purposes of giving effect to the purposes of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may make provision for––

(a) the time and place and the rules of procedure to be observed in regard to the transaction of business of the Committee at the meetings including the quorum under sub-section (3) of section 19;

(b) the time and place and rules of procedure in regard to the transaction of business of the Centre or any Committee including the quorum at the meeting under sub-section (4) of section 20;

(c) the appointment, qualifications and the terms and conditions of service of the Chief Executive Officer under sub-section (2) of section 21;

(d) the powers and functions of the Chief Executive Officer under sub-section (3) of section 21;

(e) the criteria for admission to the panel of reputed arbitrators under sub-section (3) of section 28; and

(f) any other matter in respect of which provision, in the opinion of the Centre, is necessary for the performance of its functions under this Act. Laying of rules and regulations.

32. Every rule and regulation made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only 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 the validity of anything previously done under that rule or regulation.

Protection of action taken in good faith.

33. No suit, prosecution or other legal proceedings shall lie against the Centre, the Chairperson or Members or its employees and arbitrators for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder.

34. (1) If any difficulty arises in giving effect to the provisions of this Act, Power to remove difficulty.

the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty:

Provided that no such order shall be made under this section after the expiry of a period of two years from the date of commencement of this Act. `(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

35. (1) The New Delhi International Arbitration Centre Ordinance, 2019 Repeal and savings.

Ord. 10 of 2019.

is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the New Delhi International Arbitration Centre Ordinance, 2019, shall be deemed Ord. 10 of 2019.

to have been done or taken under the provisions of this Act.

[Assented to on

26th July, 2019

Act No. 18 of 2019]

THEAPPROPRIAIION (No.2) ACT, 2019

AN

ACT

to authorise payment and appropriation ofcertain sums from and out of the

Consolidated Fund of India for the services of the financial

year 2019-20.

BE it enacted by Parliament in the SeventiethYear of the Republic of lndia

as follows:—

Short title.

1. This Act may be called the Appropriation (No. 2) Act, 2019.

Issue of Rs. 981890382,00,000 out of the Consolidated Fund of India for the financial year 2019-20.

2. From and out of the Consolidated Fund of India there may be paid and applied sums not exceeding those specified in column 3 of the Schedule amounting in the aggregate to the sum of ninety-eight lakh eighteen thousand nine hundred three crore and eighty-two lakh rupees towards defraying the several charges which will come in course of payment during the financial year 2019-20 in respct of the services specified in column 2 of the Schedule.

Appropriation.

3. The sums authorised to be paid and applied from and out ofthe Consolidated Fund nppropriation of India by this Act shall be appropriated for the services and purposes expressed in the Schedule in relation to the said year,

Construction of references to Ministries or Departments in the Schedule.

4. References to Ministries or Departments in the Schedule are to such Ministries or Departments as existing immediately befbre the l9th June, 2019 and shall, on or after that date, be construed as references to the appropriate Ministries or Departments as reconstituted from time to timeThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 44 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA)

THE SCHEDULE

(See sections 2 and 3)

1 2

3

1 2

3

1 2

3

1 2

3

1 2

3

1 2

3

[Assented to on

27th July, 2019

Act No. 19 of 2019]

THE PROTECTION OF HUMAN RIGHTS (AMENDMENT) ACT, 2019

AN

ACT

further to amend the Protection of Human Rights Act, 1993.

BE it enacted by Parliament in the Seventieth Year of the Republic of

India as follows:—

1. (1) This Act may be called the Protection of Human Rights Short title and commencement.

(Amendment) Act, 2019.

(2) It shall come into force on such date as the Central Government may,

by notification in the Official Gazette, appoint.

10 of 1994.

2. In the Protection of Human Rights Act, 1993 (hereinafter referred to Amendment of section 2.

as the principal Act), in section 2, in sub-section (1),––

(i) after clause (b), the following clause shall be inserted, namely:—

49 of 2016.

'(ba) "Chief Commissioner" means the Chief Commissioner for Persons with Disabilities referred to in sub-section (1) of section 74 of the Rights of Persons with Disabilities Act, 2016;';

(ii) after clause (g), the following clause shall be inserted, namely:—

27 of 1993.

'(ga) "National Commission for Backward Classes" means the National Commission for Backward Classes constituted under section 3 of the National Commission for Backward Classes Act, 1993;';

(iii) after clause (h), the following clause shall be inserted, namely:—

4 of 2006.

'(ha) "National Commission for Protection of Child Rights" means the National Commission for Protection of Child Rights constituted under section 3 of the Commissions for Protection of Child Rights Act, 2005;'.

3. In section 3 of the principal Act,—

Amendment of section 3.

(a) in sub-section (2),—

(i) in clause (a), for the words "Chief Justice", the words "Chief

Justice of India or a Judge" shall be substituted;

(ii) in clause (d), for the words "two Members", the words "three Members, out of which at least one shall be a woman," shall be substituted;

(b) in sub-section (3),—

(i) for the words "the National Commission for Minorities", the words ", the National Commission for Backward Classes, the National Commission for Minorities, the National Commission for Protection of Child Rights" shall be substituted;

(ii) for the words "and the National Commission for Women", the words "the National Commission for Women and the Chief Commissioner for Persons with Disabilities" shall be substituted;

(c) in sub-section (4), for the portion beginning with "shall exercise such powers and discharge such functions" and ending with "as the case may be", the following shall be substituted, namely:—

"shall, subject to control of the Chairperson, exercise all administrative and financial powers (except judicial functions and the power to make regulations under section 40B).".

4. In section 6 of the principal Act,—

Amendment of section 6.

(i) in sub-section (1),—

(a) for the words "five years", the words "three years" shall be substituted;

(b) after the words "whichever is earlier" occurring at the end, the words "and shall be eligible for re-appointment" shall be inserted;

(ii) in sub-section (2),—

(a) for the words "five years", the words "three years" shall be substituted;

(b) the words "for another term of five years" shall be omitted.

5. In section 21 of the principal Act,—

Amendment of section 21.

(i) in sub-section (2), in clause (a), for the words "Chief Justice", the words "Chief Justice or a Judge" shall be substituted;

(ii) in sub-section (3), for the words "shall exercise such powers and discharge such functions of the State Commission as it may delegate to him", the words "shall, subject to control of the Chairperson, exercise all administrative and financial powers of the State Commission" shall be substituted;

(iii) after sub-section (6), the following sub-sections shall be inserted, namely:—

"(7) Subject to the provisions of section 12, the Central Government may, by order, confer upon the State Commission the functions relating to human rights being discharged by the Union territories, other than the Union territory of Delhi.

(8) The functions relating to human rights in case of Union territory of Delhi shall be dealt with by the Commission.".

6. In section 24 of the principal Act,—

Amendment of section 24.

(i) in sub-section (1),—

(a) or the words "five years", the words "three years" shall be substituted;

(b) after the words "whichever is earlier" occurring at the end, the words "and shall be eligible for re-appointment" shall be inserted;

(ii) in sub-section (2),––

(a) for the words "five years", the words "three years" shall be substituted;

(b) the words "for another term of five years" occurring at the end, shall be omitted.

Assented to on

31st July, 2019

Act No. 20 of 2019]

THE MUSLIM WOMEN (PROTECTION OF RIGHTS

ON MARRIAGE) ACT, 2019

AN

ACT

to protect the rights of married Muslim women and to prohibit divorce by

pronouncing talaq by their husbands and to provide for matters

connected therewith or incidental thereto.

BE it enacted by Parliament in the Seventieth Year of the Republic of India

as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Muslim Women (Protection of Rights

on Marriage) Act, 2019.

Short title, extent and commence- ment.

(2) It shall extend to the whole of India except the State of Jammu and

Kashmir.

(3) It shall be deemed to have come into force on the 19th day of September,

2018.

2. In this Act, unless the context otherwise requires,—

Definitions.

21 of 2000.

(a) "electronic form" shall have the same meaning as assigned to it in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000;

2 of 1974.

(b) "Magistrate" means a Judicial Magistrate of the first class exercising jurisdiction under the Code of Criminal Procedure, 1973, in the area where the married Muslim woman resides; and

(c) "talaq" means talaq-e-biddat or any other similar form of talaq having the effect of instantaneous and irrevocable divorce pronounced by a Muslim husband.

CHAPTER II

DECLARATIION OF TALAQ TO BE VOID AND LILEGAL

Talaq to be void and illegal.

3. Any pronouncement of talaq by a Muslim husband upon his wife, by words, either spoken or written or in electronic form or in any other manner whatsoever, shall be void and illegal.

Punishment for pronouncing talaq.

4. Any Muslim husband who pronounces talaq referred to in section 3 upon his wife shall be punished with imprisonment for a term which may extend to three years, and shall also be liable to fine.

CHAPTER III

PROTECTION OF RIGHTS OF MARRIED MUSLIM WOMEN

Subsistence allowance.

5. Without prejudice to the generality of the provisions contained in any other law for the time being in force, a married Muslim woman upon whom talaq is pronounced shall be entitled to receive from her husband such amount of subsistence allowance, for her and dependent children, as may be determined by the Magistrate.

Custody of minor children.

6. Notwithstanding anything contained in any other law for the time being in force, a married Muslim woman shall be entitled to custody of her minor children in the event of pronouncement of talaq by her husband, in such manner as may be determined by the Magistrate.

7. Notwithstanding anything contained in the Code of Criminal Procedure,

2 of 1974. 1973,—

Offence to be cognizable, compoundable. etc.

(a) an offence punishable under this Act shall be cognizable, if information relating to the commission of the offence is given to an officer in charge of a police station by the married Muslim woman upon whom talaq is pronounced or any person related to her by blood or marriage;

(b) an offence punishable under this Act shall be compoundable, at the instance of the married Muslim woman upon whom talaq is pronounced with the permission of the Magistrate, on such terms and conditions as he may determine;

(c) no person accused of an offence punishable under this Act shall be released on bail unless the Magistrate, on an application filed by the accused and after hearing the married Muslim woman upon whom talaq is pronounced, is satisfied that there are reasonable grounds for granting bail to such person.

8. (1) The Muslim Women (Protection of Rights on Marriage) Second Repeal and savings.

Ordinance, 2019 is hereby repealed.

Ord. 4 of 2019.

Ord. 4 of 2019.

(2) Notwithstanding such repeal, anything done or any action taken under the Muslim Women (Protection of Rights on Marriage) Second Ordinance, 2019, shall be deemed to have been done or taken under the provisions of this Act.

————

[Assented to on

31st July, 2019

Act No. 21 of 2019]

THE BANNING OF UNREGULATED DEPOSIT SCHEMES ACT, 2019

AN

ACT

to provide for a comyprehensive mechanism to ban the unregulated deposit

schemes, other than deposits taken in the ordinary course of business,

and to protect the interest of depositors and for matters connected

therewith or incidental thereto.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Banning of Unregulated Deposit Schemes Act, 2019.

Short title extent and commencement.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

(3) It shall be deemed to have come into force on the 21st day of

February, 2019.

Definitions.

2. In this Act, unless the context otherwise requires,—

(1) "appropriate Government" means in respect of matters relating

to,—

(i) the Union territory without legislature, the Central Government;

(ii) the Union territory of Puducherry, the Government of that Union

territory;

(iii) the Union territory of Delhi, the Government of that Union

territory; and

(iv) the State, the State Government;

(2) "company" shall have the same meaning as assigned to it in

clause (20) of section 2 of the Companies Act, 2013;

18 of 2013.

(3) "Competent Authority" means an Authority appointed by the

appropriate Government under section 7;

(4) "deposit" means an amount of money received by way of an advance or loan or in any other form, by any deposit taker with a promise to return whether after a specified period or otherwise, either in cash or in kind or in the form of a specified service, with or without any benefit in the form of interest, bonus, profit or in any other form, but does not include—

10 of 1949.

(a) amounts received as loan from a scheduled bank or a co- operative bank or any other banking company as defined in section 5 of the Banking Regulation Act, 1949;

2 of 1934.

(b) amounts received as loan or financial assistance from the Public Financial Institutions notified by the Central Government in consultation with the Reserve Bank of India or any non-banking financial company as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 and is registered with the Reserve Bank of India or any Regional Financial Institutions or insurance companies;

(c) amounts received from the appropriate Government, or any amount received from any other source whose repayment is guaranteed by the appropriate Government, or any amount received from a statutory authority constituted under an Act of Parliament or a State Legislature;

42 of 1999.

(d) amounts received from foreign Governments, foreign or international banks, multilateral financial institutions, foreign Government owned development financial institutions, foreign export credit collaborators, foreign bodies corporate, foreign citizens, foreign authorities or person resident outside India subject to the provisions of the Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder;

(e) amounts received by way of contributions towards the capital by partners of any partnership firm or a limited liability partnership;

(f) amounts received by an individual by way of loan from his relatives or amounts received by any firm by way of loan from the relatives of any of its partners;

(g) amounts received as credit by a buyer from a seller on the sale of any property (whether movable or immovable);

54 of 2002.

(h) amounts received by an asset re-construction company which is registered with the Reserve Bank of India under section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;

43 of 1951.

(i) any deposit made under section 34 or an amount accepted by a political party under section 29B of the Representation of the People Act, 1951;

(j) any periodic payment made by the members of the self- help groups operating within such ceilings as may be prescribed by the State Government or Union territory Government;

(k) any other amount collected for such purpose and within such ceilings as may be prescribed by the State Government;

(l) an amount received in the course of, or for the purpose of, business and bearing a genuine connection to such business including—

(i) payment, advance or part payment for the supply or hire of goods or provision of services and is repayable in the event the goods or services are not in fact sold, hired or otherwise provided;

(ii) advance received in connection with consideration of an immovable property under an agreement or arrangement subject to the condition that such advance is adjusted against such immovable property as specified in terms of the agreement or arrangement;

(iii) security or dealership deposited for the performance of the contract for supply of goods or provision of services; or

(iv) an advance under the long-term projects for supply

of capital goods except those specified in item (ii):

Provided that if the amounts received under items (i) to (iv) become refundable, such amounts shall be deemed to be deposits on the expiry of fifteen days from the date on which they become due for refund:

Provided further that where the said amounts become refundable, due to the deposit taker not obtaining necessary permission or approval under the law for the time being in force, wherever required, to deal in the goods or properties or services for which money is taken, such amounts shall be deemed to be deposits.

Explanation.—For the purposes of this clause,—

18 of 2013.

(i) in respect of a company, the expression "deposit" shall have the same meaning as assigned to it under the Companies Act, 2013;

2 of 1934.

(ii) in respect of a non-banking financial company registered under the Reserve Bank of India Act, 1934, the expression "deposit" shall have the same meaning as assigned to it in clause (bb) of section 45-I of the said Act;

9 of 1932.

(iii) the expressions "partner" and "firm" shall have the meanings respectively assigned to them under the Indian Partnership Act, 1932;

6 of 2009.

(iv) the expression "partner" in respect of a limited liability partnership shall have the same meaning as assigned to it in clause (q) of sub-section (1) of section 2 of the Limited Liability Partnership Act, 2008;

(v) the expression "relative" shall have the same

18 of 2013.

meaning as assigned to it in the Companies Act, 2013;

(5) "depositor" means any person who makes a deposit under this Act;

(6) "deposit taker" means—

(i) any individual or group of individuals;

(ii) a proprietorship concern;

(iii) a partnership firm (whether registered or not);

(iv) a limited liability partnership registered under the Limited

6 of 2009.

Liability Partnership Act, 2008;

(v) a company;

(vi) an association of persons;

2 of 1882.

(vii) a trust (being a private trust governed under the provisions of the Indian Trusts Act, 1882 or a public trust, whether registered or not);

(viii) a co-operative society or a multi-State co-operative society;

or

(ix) any other arrangement of whatsoever nature, receiving or

soliciting deposits, but does not include—

(i) a Corporation incorporated under an Act of Parliament

or a State Legislature;

10 of 1949.

(ii) a banking company, a corresponding new bank, the State Bank of India, a subsidiary bank, a regional rural bank, a co- operative bank or a multi-State co-operative bank as defined in the Banking Regulation Act,1949;

(7) "Designated Court" means a Designated Court constituted by the

appropriate Government under section 8;

(8) "insurer" shall have the same meaning as assigned to it in clause (9)

4 of 1938. of section 2 of the Insurance Act, 1938;

(9) "notification" means a notification published in the Official Gazette and

the expression "notify" shall be construed accordingly;

(10) "person" includes—

(i) an individual;

(ii) a Hindu Undivided Family;

(iii) a company;

(iv) a trust;

(v) a partnership firm;

(vi) a limited liability partnership;

(vii) an association of persons;

(viii) a co-operative society registered under any law for the time being in force relating to co-operative societies; or

(ix) every artificial juridical person, not falling within any of the preceding sub-clauses;

(11) "prescribed" means prescribed by the rules made by the Central Government or, as the case may be, the State Government under this Act;

(12) "property" means any property or assets of every description, whether corporeal or incorporeal, movable or immovable, tangible or intangible, and includes deeds and instruments evidencing title to, or interest in, such property or assets, wherever located;

(13) "public financial institution" shall have the same meaning as assigned

18 of 2013.

to it in clause (72) of section 2 of the Companies Act, 2013;

(14) "Regulated Deposit Scheme" means the Schemes specified under column (3) of the First Schedule;

(15) "Regulator" means the Regulator specified in column (2) of the First Schedule;

(16) "Schedule" means the Schedule appended to this Act;

(17) "Unregulated Deposit Scheme" means a Scheme or an arrangement under which deposits are accepted or solicited by any deposit taker by way of business and which is not a Regulated Deposit Scheme, as specified under column (3) of the First Schedule.

CHAPTER II

BANNING OF UNREGULATED DEPOSIT SCHEMES

3. On and from the date of commencement of this Act,—

Banning of Unregulated Deposit Schemes.

(a) the Unregulated Deposit Schemes shall be banned; and

(b) no deposit taker shall, directly or indirectly, promote, operate, issue any advertisement soliciting participation or enrolment in or accept deposits in pursuance of an Unregulated Deposit Scheme.

Fraudulent default in Regulated Deposit Schemes.

4. No deposit taker, while accepting deposits pursuant to a Regulated Deposit Scheme, shall commit any fraudulent default in the repayment or return of deposit on maturity or in rendering any specified service promised against such deposit.

Wrongful inducement in relation to Unregulated Deposit Schemes.

5. No person by whatever name called shall knowingly make any statement, promise or forecast which is false, deceptive or misleading in material facts or deliberately conceal any material facts, to induce another person to invest in, or become a member or participant of any Unregulated Deposit Scheme.

43 of 1978.

Cretain scheme to be Unregulated Deposit Scheme.

.

6. A prize chit or a money circulation scheme banned under the provisions of the Prize Chits and Money Circulation Scheme (Banning) Act, 1978 shall be deemed to be an Unregulated Deposit Scheme under this Act.

CHAPTER III

AUTHORITIES

Competent Authority.

7. (1) The appropriate Government shall, by notification, appoint one or more officers not below the rank of Secretary to that Government, as the Competent Authority for the purposes of this Act.

(2) The appropriate Government may, by notification, appoint such other officer or officers as it thinks fit, to assist the Competent Authority in discharging its functions under this Act.

(3) Where the Competent Authority or officers appointed under sub- section (2), for the purposes of this section, has reason to believe (the reason for such belief to be recorded in writing), on the basis of such information and particulars as may be prescribed, that any deposit taker is soliciting deposits in contravention of section 3, he may, by an order in writing, provisionally attach the deposits held by the deposit taker and the money or other property acquired either in the name of the deposit taker or in the name of any other person on behalf of the deposit taker from the date of the order, in such manner as may be prescribed.

5 of 1908.

(4) The Competent Authority shall, for the purposes of sub-section (3), have the same powers as vested in a civil court under the Code of Civil Procedure, 1908 while conducting investigation or inquiry in respect of the following matters, namely:—

(a) discovery and inspection;

(b) enforcing the attendance of any person, including any officer

of a reporting entity and examining him on oath;

(c) compelling the production of records;

(d) receiving evidence on affidavits;

(e) issuing commissions for examination of witnesses and

documents; and

(f) any other matter which may be prescribed.

(5) The Competent Authority shall have power to summon any person whose attendance he considers necessary whether to give evidence or to produce any records during the course of any investigation or proceeding under this section.

(6) All the persons so summoned shall be bound to attend in person or through authorised agents, as such officer may direct, and shall be bound to state the truth upon any subject respecting which they are examined or make statements, and produce such documents as may be required.

45 of 1860.

(7) Every proceeding under sub-sections (4) and (5) shall be deemed to be a judicial proceeding within the meaning of section 193 and section 228 of the Indian Penal Code.

(8) Subject to any rules made in this behalf by the Central Government, any officer referred to in sub-section (2) may impound and retain in his custody for such period, as he thinks fit, any records produced before him in any proceedings under this Act:

Provided that the officer or officers referred to in sub-section (2) shall

not—

(a) impound any records without recording his reasons for so doing; or

(b) retain in his custody any such records for a period exceeding three months, without obtaining the previous approval of the Competent Authority.

Designated Court.

8. (1) The appropriate Government shall, with the concurrence of the Chief Justice of the concerned High Court, by notification, constitute one or more Courts known as the Designated Courts for such area or areas or such case or cases as may be specified in such notification, which shall be presided over by a Judge not below the rank of a District and Sessions Judge or Additional District and Sessions Judge.

(2) No Court other than the Designated Court shall have jurisdiction in respect of any matter to which the provisions of this Act apply.

2 of 1974.

(3) When trying an offence under this Act, the Designated Court may also try an offence, other than an offence under this Act, with which the accused may, under the Code of Criminal Procedure, 1973, be charged at the same trial.

CHAPTER IV

INFORMATION ON DEPOSIT TAKERS

Central database.

9. (1) The Central Government may designate an authority, whether existing or to be constituted, which shall create, maintain and operate an online database for information on deposit takers operating in India.

(2) The authority designated under sub-section (1) may require any Regulator or the Competent Authority to share such information on deposit takers, as may be prescribed.

Information of business by deposit taker.

10. (1) Every deposit taker which commences or carries on its business as such on or after the commencement of this Act shall intimate the authority referred to in sub-section (1) of section 9 about its business in such form and manner and within such time, as may be prescribed.

(2) The Competent Authority may, if it has reason to believe that the deposits are being solicited or accepted pursuant to an Unregulated Deposit Scheme, direct any deposit taker to furnish such statements, information or particulars, as it considers necessary, relating to or connected with the deposits received by such deposit taker.

Explanation.—For the removal of doubts, it is hereby clarified that—

(a) the requirement of intimation under sub-section (1) is applicable to deposit takers accepting or soliciting deposits as defined in clause (4) of section 2; and

18 of 2013.

(b) the requirement of intimation under sub-section (1) applies to a company, if the company accepts the deposits under Chapter V of the Companies Act, 2013.

Information to be shared.

11. (1) The Competent Authority shall share all information received under section 29 with the Central Bureau of Investigation and with the authority which may be designated by the Central Government under section 9.

(2) The appropriate Government, any Regulator, income-tax authorities or any other investigation agency, having any information or documents in respect of the offence investigated under this Act by the police or the Central Bureau of Investigation, shall share all such information or documents with the police or the Central Bureau of Investigation.

(3) Where the principal officer of any banking company, a corresponding new bank, the State Bank of India, a subsidiary bank, a regional rural bank, a co- operative bank or a multi-State co-operative bank has reason to believe that any client is a deposit taker and is acting in contravention to the provisions of this Act, he shall forthwith inform the same to the Competent Authority.

CHAPTER V

RESTITUTION TO DEPOSITORS

Priority of depositors' claim.

54 of 2002.

31 of 2016.

12. Save as otherwise provided in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or the Insolvency and Bankruptcy Code, 2016, any amount due to depositors from a deposit taker shall be paid in priority over all other debts and all revenues, taxes, cesses and other rates payable to the appropriate Government or the local authority.

Precedence of atta chment.

54 of 2002.

31 of 2016.

13. (1) Save as otherwise provided in the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or the Insolvency and Bankruptcy Code, 2016, an order of provisional attachment passed by the Competent Authority, shall have precedence and priority, to the extent of the claims of the depositors, over any other attachment by any authority competent to attach property for repayment of any debts, revenues, taxes, cesses and other rates payable to the appropriate Government or the local authority.

(2) Where an order of provisional attachment has been passed by the

Competent Authority—

(a) such attachment shall continue until an order is passed under sub-section (3) or sub-section (5) of section 15 by the Designated Court;

(b) all the attached money or property of the deposit taker and the persons mentioned therein shall vest in the Competent Authority and shall remain so vested till further order of the Designated Court.

(3) The Competent Authority shall open an account in a scheduled bank

for the purpose of crediting and dealing with the money realised under this Act, which shall not be utilised except under the instructions of the Designated Court.

(4) The Competent Authority shall not dispose of or alienate the property or money attached, except in accordance with the order of the Designated Court under sub-section (3) or sub-section (5) of section 15.

(5) Notwithstanding anything contained in sub-section (4), the Competent Authority may, if it thinks it expedient, order the immediate sale of perishable items or assets, and the proceeds of the sale shall be utilised in the same manner as provided for other property.

Application for confirmatin of attachment and sale of property.

14. (1) The Competent Authority shall, within a period of thirty days, which may extend up to sixty days, for reasons to be recorded in writing, from the date of the order of provisional attachment, file an application with such particulars as may be prescribed, before the Designated Court for making the provisional attachment absolute, and for permission to sell the property so attached by public auction or, if necessary, by private sale.

(2) In case where the money or property has been attached on the permission granted by a Designated Court in another State or Union territory, the application for confirmation of such attachment shall be filed in that Court.

15. (1) Upon receipt of an application under section 14, the Designated

Court shall issue notice to—

Confirmaton of attachment by Designated Court.

(a) the deposit taker; and

(b) any person whose property is attached under section 14, to show cause, within a period of thirty days from the date of issue of notice, as to why the order of attachment should not be made absolute and the properties so attached be sold.

(2) The Designated Court shall also issue notice to all other persons represented to it as having or being likely to claim any interest or title in the property, to appear on the same date as persons referred to in sub-section (1) to raise objections, if they so desire, to the attachment of the property.

(3) The Designated Court shall, after adopting such procedure as may be prescribed, pass an order—

(a) making the provisional order of attachment absolute; or

(b) varying it by releasing a portion of the property from attachment; or (c) cancelling the provisional order of attachment, and in case of an order under clause (a) or clause (b), direct the Competent Authority to sell the property so attached by public auction or, if necessary, by private sale and realise the sale proceeds.

(4) The Designated Court shall not, in varying or cancelling the provisional order of attachment, release any property from attachment, unless it is satisfied that—

(a) the deposit taker or the person referred to in sub-section (1) has interest in such property; and

(b) there shall remain an amount or property sufficient for repayment to the depositors of such deposit taker.

(5) The Designated Court shall pass such order or issue such direction as may be necessary for the equitable distribution among the depositors of the money attached or realised out of the sale.

(6) The Designated Court shall endeavour to complete the proceedings under this section within a period of one hundred and eighty days from the date of receipt of the application referred to in sub-section (1).

Attachment of property of mala fide transferees.

16. (1) Where the Designated Court is satisfied that there is a reasonable cause for believing that the deposit taker has transferred any property otherwise than in good faith and not for commensurate consideration, it may, by notice, require any transferee of such property, whether or not he received the property directly from the said deposit taker, to appear on a date to be specified in the notice and show cause why so much of the transferee's property as is equivalent to the proper value of the property transferred should not be attached.

(2) Where the said transferee does not appear and show cause on the specified date or where the Designated Court is satisfied that the transfer of the property to the said transferee was not a bona fide transfer and not for commensurate consideration, it shall order the attachment of so much of the said transferee's property as in its opinion is equivalent to the proper value of the property transferred.

Payment in lieu of atta chment.

17. (1) Any deposit taker or a person referred to in sub-section (1) of section 15, or transferee referred to in section 16 whose property is about to be attached or has been provisionally attached under this Act, may, at any time before the confirmation of attachment, apply to the Designated Court for permission to deposit the fair value of the property in lieu of attachment.

(2) While allowing the deposit taker or person or transferee referred to in sub-section (1) to make the deposit under sub-section (1), the Designated Court may order such deposit taker or person or transferee to pay any sum towards costs as may be applicable.

18. (1) The Designated Court shall exercise the following powers, namely:— Powers of Designated Court.

(a) power to approve the statement of dues of the deposit taker

due from various debtors;

(b) power to assess the value of the assets of the deposit taker and

finalise the list of the depositors and their respective dues;

(c) power to direct the Competent Authority to take possession of any assets belonging to or in the control of the deposit taker and to sell, transfer or realise the attached assets, either by public auction or by private sale as it deems fit depending upon the nature of assets and credit the sale proceeds thereof to its bank account;

(d) power to approve the necessary expenditure to be incurred by the Competent Authority for taking possession and realisation of the assets of the deposit taker;

(e) power to pass an order for full payment to the depositors by the Competent Authority or an order for proportionate payment to the depositors in the event, the money so realised is not sufficient to meet the entire deposit liability;

(f) power to direct any person, who has made profit or averted loss by indulging in any transaction or activity in contravention of the provisions of this Act, to disgorge an amount equivalent to the wrongful gain made or loss averted by such contravention; and

(g) power to pass any other order which the Designated Court deems fit for realisation of assets of the deposit taker and for repayment of the same to the depositors of such deposit taker or on any other matter or issue incidental thereto.

(2) On the application of any person interested in any property attached and vested in the Competent Authority under this Act and after giving such Competent Authority an opportunity of being heard, make such order as the Designated Court considers just and reasonable for—

(a) providing from such of the property attached and vested in the Competent Authority as the applicant claims an interest in, such sums as may be reasonably necessary for the maintenance of the applicant and of his family, and for expenses connected with the defence of the applicant where criminal proceedings have been initiated against him in the Designated Court under this Act; or

(b) safeguarding, so far as may be practicable, the interest of any

business affected by the attachment.

Explanation.—For the purposes of this section, the expression "deposit taker" includes the directors, promoters, managers or members of said establishment or any other person whose property or assets have been attached under this Act.

Appeal to High Court.

19. Any person including the Competent Authority, if aggrieved by any final order of the Designated Court under this Chapter, may appeal to the High Court, within a period of sixty days from the date of such order:

Provided that the High Court may entertain the appeal after the expiry of the said period of sixty days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal in time.

Explanation.—The expression "High Court" means the High Court of a State or Union Territory where the Designated Court is situated.

Power of Supreme Court to Transfer cases.

20. (1) Whenever it is made to appear to the Supreme Court that there is a default in any deposit scheme or deposit schemes of the nature referred to in section 30, the Supreme Court may, by an order, direct that any particular case be transferred from one Designated Court to another Designated Court.

(2) The Supreme Court may act under this section only on an application filed by the Competent Authority or any interested party, and every such applica- tion shall be supported by an affidavit.

(3) Where an application for the exercise of the powers conferred by this section is dismissed, the Supreme Court may, if it is of opinion that the application was frivolous or vexatious, order the applicant to pay by way of compensation to any person who has opposed the application such sum not exceeding fifty thousand rupees as it may consider appropriate in the circumstances of the case.

CHAPTER VI

OFFENCES AND PUNISHMENTS

Punishment for contravention of section 3.

21. (1) Any deposit taker who solicits deposits in contravention of section 3 shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to five years and with fine which shall not be less than two lakh rupees but which may extend to ten lakh rupees.

(2) Any deposit taker who accepts deposits in contravention of section 3 shall be punishable with imprisonment for a term which shall not be less than two years but which may extend to seven years and with fine which shall not be less than three lakh rupees but which may extend to ten lakh rupees.

(3) Any deposit taker who accepts deposits in contravention of section 3 and fraudulently defaults in repayment of such deposits or in rendering any specified service, shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to ten years and with fine which shall not be less than five lakh rupees but which may extend to twice the amount of aggregate funds collected from the subscribers, members or participants in the Unregulated Deposit Scheme.

Explanation.—For the purposes of this Act,—

(i) the expression "fraudulently" shall have the same meaning as assigned to it in section 25 of the Indian Penal Code;

45 of 1860.

(ii) where the terms of the Deposit Scheme are entirely impracticable or unviable, the terms shall be relevant facts showing an intention to defraud.

Punishment for contravention of section 4.

22. Any deposit taker who contravenes the provisions of section 4 shall be punishable with imprisonment for a term which may extend to seven years, or with fine which shall not be less than five lakh rupees but which may extend to twenty-five crore rupees or three times the amount of profits made out of the fraudulent default referred to in said section, whichever is higher, or with both.

Punishment for contravention of section 5.

23. Any person who contravenes the provisions of section 5 shall be punishable with imprisonment for a term which shall not be less than one year but which may extend to five years and with fine which may extend to ten lakh rupees.

Punishment for repeat offenders.

24. Whoever having been previously convicted of an offence punishable under this Chapter, except the offence under section 26, is subsequently convicted of an offence shall be punishable with imprisonment for a term which shall not be less than five years but which may extend to ten years and with fine which shall not be less than ten lakh rupees but which may extend to fifty crore rupees.

Offences by deposit takers other than individuals.

25. (1) Where an offence under this Act has been committed by a deposit taker other than an individual, every person who, at the time the offence was committed, was in charge of, and was responsible to, the deposit taker for the conduct of its business, as well as the deposit taker, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.

(2) Nothing contained in sub-section (1) shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(3) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a deposit taker other than an individual, and it is proved that the offence—

(a) has been committed with the consent or connivance of; or

(b) is attributable to any neglect on the part of any director, manager, secretary, promoter, partner, employee or other officer of the deposit taker,

such person shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Punishment for contravention of section 10.

26. Whoever fails to give the intimation required under sub-section (1) of section 10 or fails to furnish any such statements, information or particulars as required under sub-section (2) of that section, shall be punishable with fine which may extend to five lakh rupees.

Cognizance of offences.

27. Notwithstanding anything contained in section 4, no Designated Court shall take cognizance of an offence punishable under that section except upon a complaint made by the Regulator:

Provided that the provisions of section 4 and this section shall not apply

in relation to a deposit taker which is a company.

CHAPTER VII

INVESTIGATION, SEARCH AND SEIZURE

2 of 1974.

Offences to be congnizable and non-bailable.

28. Notwithstanding anything contained in the Code of Criminal Procedure, 1973 every offence punishable under this Act, except the offence under section 22 and section 26, shall be cognizable and non-bailable.

29. The police officer shall, on recording information about the commission

of an offence under this Act, inform the same to the Competent Authority.

Competent Authority to be informed of offences.

30. (1) On receipt of information under section 29 or otherwise, if the Competent Authority has reason to believe that the offence relates to a deposit scheme or deposit schemes in which—

Investigation of offences by Central Bureau of Investigation.

(a) the depositors, deposit takers or properties involved are located in more than one State or Union territory in India or outside India; and

(b) the total value of the amount involved is of such magnitude as

to significantly affect the public interest,

the Competent Authority shall refer the matter to the Central Government for investigation by the Central Bureau of Investigation.

25 of 1946.

(2) The reference made by the Competent Authority under sub-section (1) shall be deemed to be with the consent of the State Government under section 6 of the Delhi Special Police Establishment Act, 1946.

25 of 1946.

(3) On the receipt of the reference under sub-section (1), the Central Government may transfer the investigation of the offence to the Central Bureau of Investigation under section 5 of the Delhi Special Police Establishment Act, 1946.

Power to enter, search and seize without warrant.

31. (1) Whenever any police officer, not below the rank of an officer in- charge of a police station, has reason to believe that anything necessary for the purpose of an investigation into any offence under this Act may be found in any place within the limits of the police station of which he is in-charge, or to which he is attached, such officer may, with the written authorisation of an officer not below the rank of Superintendent of Police, and after recording in writing so far as possible, the thing for which the search is to be made and subject to the rules made in this behalf, authorise any officer subordinate to him,—

(a) to enter and search any building, conveyance or place, between sunrise and sunset, which he has reason to suspect is being used for purposes connected with the promotion or conduct of any deposit taking scheme or arrangement in contravention of the provisions of this Act; (b) in case of resistance, to break open any door and remove any obstacle to such entry, if necessary by force, with such assistance as he considers necessary, for exercising the powers conferred by clause (a); (c) to seize any record or property found as a result of the search in the said building, conveyance or place, which are intended to be used, or reasonably suspected to have been used, in connection with any such deposit taking scheme or arrangement in contravention of the provisions of this Act; and

(d) to detain and search, and if he thinks proper, take into custody and produce before any Designated Court any such person whom he has reason to believe to have committed any offence punishable under this Act:

Provided that if such officer has reason to believe that the said written authorisation cannot be obtained without affording opportunity for the concealment of evidence or facility for the escape of an offender, he may, without the said written authorisation, enter and search such building, conveyance or place, at any time between sunset and sunrise after recording the grounds in writing.

(2) Where it is not practicable to seize the record or property, the officer authorised under sub-section (1), may make an order in writing to freeze such property, account, deposits or valuable securities maintained by any deposit taker about which a complaint has been made or credible information has been received or a reasonable suspicion exists of their having been connected with the promotion or conduct of any deposit taking scheme or arrangement in contravention of the provisions of this Act and it shall be binding on the concerned bank or financial or market establishment to comply with the said order:

Provided that no bank or financial or market establishment shall freeze such account, deposit or valuable securities, for a period beyond thirty days unless the same is authorised by the order of the Designated Court:

Provided further that, if at any time, it becomes practicable to seize the frozen property, the officer authorised under sub-section (1) may seize such property.

Explanation.—For the purposes of this section, the expressions,—

(i) "freezing of account" shall mean that no transaction, whether

deposit or withdrawal shall be allowed in the said account; and

(ii) "freezing of property" shall mean that no transfer, conversion,

disposition or movement of property shall be allowed.

(3) Where an officer takes down any information in writing or records grounds for his belief or makes an order in writing under sub-section (1) or sub- section (2), he shall, within a time of seventy-two hours send a copy thereof to the Designated Court in a sealed envelope and the owner or occupier of the building, conveyance or place shall, on application, be furnished, free of cost, with a copy of the same by the Designated Court.

(4) All searches, seizures and arrests under this section shall be made in

2 of1974. accordance with the provisions of the Code of Criminal Procedure, 1973.

32. (1) The Designated Court may take cognizance of offences under this

Act without the accused being committed to it for trial.

(2) Save as otherwise provided in section 31, the provisions of the Code

2 of 1974.

Application of Code of Criminal Procedure, 1973 to proceedings before Designated Corut.

of Criminal Procedure, 1973 shall apply—

(a) to all arrests, searches and seizures made under this Act;

(b) to the proceedings under this Act and for the purposes of the said provisions, the Designated Court shall be deemed to be a Court of Session and the persons conducting the prosecution before the Designated Court, shall be deemed to be Public Prosecutors.

CHAPTER VIII

MISCELLANEOUS

Publication of advertisement of Unregulated Deposit Scheme.

33. Where any newspaper or other publication of any nature, contains any statement, information or advertisement promoting, soliciting deposits for, or inducing any person to become a member of any Unregulated Deposit Scheme, the appropriate Government may direct such newspaper or publication to publish a full and fair retraction, free of cost, in the same manner and in the same position in such newspaper or publication as may be prescribed.

Act to have overriding effect.

34. Save as otherwise expressly provided in this Act, the provisions of this Act shall have effect notwithstanding anything contained in any other law for the time being in force, including any law made by any State or Union territory.

35. The provisions of this Act shall be in addition to, and not in derogation

of, the provisions of any other law for the time being in force.

Application of other laws not barred.

Protection of action taken in good faith.

36. No suit, prosecution or other legal proceedings shall lie against the appropriate Government or the Competent Authority or any officer of the appropriate Government for anything which is in good faith done or intended to be done under this Act or the rules made thereunder.

37. (1) The Central Government may, by notification, make rules for

carrying out the provisions of this Act.

Power of Central Government to make rules.

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

(a) the information and other particulars to be taken into consideration before issuing an order, and the manner of attachment, under sub-section (3) of section 7;

(b) the information to be shared under sub-section (2) of section 9;

(c) the form and manner in which and the time within which the intimation shall be given under sub-section (1) of section 10;

(d) the particulars contained in the application to be filed by the Competent Authority before the Designated Court under sub-section (1) of section 14;

(e) the procedure to be adopted by the Designated Court before issuing an order under sub-section (3) of section 15;

(f) rules under sub-section (1) of section 31;

(g) the manner of publication of advertisement under section 33;

and

(h) any other matter which is required to be, or may be, prescribed.

Power of State Government, etc., to make rules.

38. (1) The State Government or Union territory Government, as the case may be, in consultation with the Central Government, by notification, make rules for carrying out the provisions of this Act.

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

(a) ceiling for self-help groups under clause (j) of sub-section (4) of section 2;

(b) purpose and ceiling under clause (k) of sub-section (4) of section 2;

(c) the manner of provisional attachment of property by the Competent Authority under sub-section (3) of section 7;

(d) other matters under clause (f) of sub-section (4) of section 7;

(e) the rules relating to impounding and custody of records under sub-section (8) of section 7; and

(f) any other matter which is required to be, or may be, prescribed.

Laying of rules.

39. (1) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for total period of thirty days which may be comprised in one session, or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule, or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 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 the validity of anything previously done under that rule.

(2) Every rule made by a State Government or the Union territory Government, as the case may be, shall be laid, as soon as may be after it is made, before each House of the State Legislature or the Union territory Legislature, as the case may be, where it consists of two Houses, or where such Legislature consists of one House, before that House.

Power to amend First Schedule.

40. (1) The Central Government may, having regard to the objects of this Act, and if it considers necessary or expedient so to do, by notification, add to, or as the case may be, omit from the First Schedule, any scheme or arrangement, and on such addition, or omission, such scheme or arrangement shall become, or cease to be, a Regulated Deposit Scheme, as the case may be.

(2) A copy of every notification issued under this section shall, as soon as

may be after it has been issued, be laid before each House of Parliament.

41. The provisions of this Act shall not apply to deposits taken in the Act not to apply certain deposits.

ordinary course of business.

42. The enactments specified in the Second Schedule shall be amended

in the manner specified therein.

Amendment to certain enact- ments.

Power to remove difficulties.

43. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions, not inconsistent with the provisions of this Act, as may appear to it to be necessary for removing the difficulty:

Provided that no such order shall be made under this section after the

expiry of three years from the commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be

after it is made, before each House of Parliament.

Repeal and saving.

44. (1) The Banning of Unregulated Deposit Schemes Ordinance, 2019,

Ord. 7 of 2019. is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be deemed to have been done or taken under this Act.

THE FIRST SCHEDULE

[See section 2 (15)]

REGULATED DEPOSIT SCHEMES

(1) The Regulator and Regulated Deposit Scheme refers to the regulators and schemes and arrangements listed in the following Table, namely:—

TABLE

Sl. No. Regulator Regulated Deposit Scheme

(1) (2)

(3)

1. The Securities and (i) Any scheme or an arrangement [as defined Exchange Board under section 11AA of the Securities and of India Exchange Board of India Act, 1992 (15 of 1992)] launched, sponsored or carried out by a Collective Investment Management Company registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Collective Investment Scheme) Regulations, 1999. (ii) Any scheme or an arrangement registered with the Securities and Exchange Board of India under the Securities and Exchange Board of India (Alternative Investment Funds) Regulations, 2012. (iii) Any scheme or an arrangement, pursuant to which funds are managed by a portfolio manager, registered under the Securities and Exchange Board of India (Portfolio Managers) Regulations, 1993. (iv) Any scheme or an arrangement regulated under the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 or providing for employee benefits as permitted under the Companies Act, 2013 (18 of 2013). (v) Any other scheme or an arrangement registered under the Securities and Exchange Board of India Act, 1992 (15 of 1992), or the regulations made thereunder. (vi) Any amount received as contributions in the nature of subscriptions to a mutual fund registered with Securities and Exchange Board of India under the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.

2. The Reserve Bank (i) Any scheme under which deposits are accepted of India by Non-Banking Financial Companies as defined in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934) and registered with the Reserve Bank of India; or any other scheme or an arrangement registered under the Reserve Bank of India Act, 1934.

(1) (2)

(3)

(ii) Any scheme or an arrangement under which funds are accepted by individuals or entities engaged as Business Correspondents and Facilitators by banks subject to the guidelines and circulars issued by the Reserve Bank of India from time to time. (iii) Any scheme or an arrangement under which funds are received by a system provider operating as an authorised payment system under the Payment and Settlement Systems Act, 2007 (51 of 2007). (iv) Any other scheme or an arrangement regulated under the Reserve Bank of India Act, 1934 (2 of 1934), or the guidelines or circulars of the Reserve Bank of India.

3. The Insurance A contract of insurance pursuant to a certificate Regulatory and of registration obtained in accordance with the Development Insurance Act, 1938 (4 of 1938). Authority of India

4. The State Government (i) Any scheme or an arrangement made or or Union territory offered or Union territory by a co-operative Government society registered under the Government Co-operative So cieties Act, 1912 (2 of 1912) or a society being a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State or Union territory. (ii) Any scheme or an arrangement commenced or conducted as a chit business with the previous sanction of the State Government in accordance with the provisions of the Chit Funds Act, 1982 (40 of 1982). (iii) Any scheme or an arrangement regulated by any enactment relating to money lending which is for the time being in force in any State or Union territory. (iv) Any scheme or an arrangement by a prize chit or money circulation scheme under section 11 of the Prize Chits and Money Circulation Schemes (Banning) Act, 1978 (43 of 1978).

5. The National Any scheme or an arrangement for acceptance of Housing Bank deposits registered under the National Housing

Bank Act, 1987 (53 of 1987).

6. The Pension Fund Any scheme or an arrangement under the Pension Regulatory and Fund Regulatory and Development Authority Act, Development 2013 (23 of 2013). Authority

7. The Employees' Any scheme, Pension Scheme or Insurance Provident Fund Scheme framed under the Employees' Provident Organisation Fund and Miscellaneous Provisions Act, 1952

(19 of 1952).

(1) (2)

(3)

8. The Central Registrar, Any scheme or an arrangement for acceptance of Multi-State Co- deposits from voting members by a Multi-State operative Societies Co-operative Society registered under the Multi- State Co-operative Societies Act, 2002 (39 of 2002).

9. The Ministry of (i) Deposits accepted or permitted under the Corporate Affairs, provisions of Chapter V of the Companies Act, Government of India 2013 (18 of 2013).

(ii) Any scheme or an arrangement under which deposits are accepted by a company declared as a Nidhi or a Mutual Benefit Society under section 406 of the Companies Act, 2013 (18 of 2013).

(2) The following shall also be treated as Regulated Deposit Schemes under this Act, namely:—

(a) deposits accepted under any scheme or an arrangement registered with any regulatory body in India constituted or established under a statute; and

(b) any other scheme as may be notified by the Central Government under this Act.

THE SECOND SCHEDULE

(See section 42)

AMENDMENT TO CERTAIN ENACTMENTS

PART I

AMENDMENT TO THE RESERVE BANK OF INDIA

ACT, 1934

In the Reserve Bank of India Act, 1934, in section 45-I, in clause (bb),

after Explanation II, the following Explanation shall be inserted, namely:—

Amendment of section 45-I of Act 2 of 1934 "Explanation III.—The amounts accepted by a co-operative society from the members or shareholders, by whatever name called, but excluding the amounts received as share capital, shall be deemed to be deposits for the purposes of this clause, if such members or shareholders are nominal or associate members, by whatever name called, who do not have full voting rights in the meetings of such co-operative society.".

PART II

AMENDMENTS TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

In the Securities and Exchange Board of India Act, 1992,—

(i) in section 11, in sub-section (4), for clause (e), the following clause

Amendment of section 11 of Act 15 of 1992.

shall be substituted, namely :—

"(e) attach, for a period not exceeding ninety days, bank accounts or other property of any intermediary or any person associated with the securities market in any manner involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder :

Provided that the Board shall, within ninety days of the said attachment, obtain confirmation of the said attachment from the Special Court, established under section 26A, having jurisdiction and on such confirmation, such attachment shall continue during the pendency of the aforesaid proceedings and on conclusion of the said proceedings, the provisions of section 28A shall apply:

Provided further that only property, bank account or accounts or any transaction entered therein, so far as it relates to the proceeds actually involved in violation of any of the provisions of this Act, or the rules or the regulations made thereunder shall be allowed to be attached.";

(ii) in section 28A, after Explanation 3, the following Explanation shall

be inserted, namely:—

43 of 1961.

"Explanation 4.—The interest referred to in section 220 of the Income-tax Act, 1961 shall commence from the date the amount became payable by the person.".

PART III

AMENDMENTS TO THE MULTI-STATE CO-OPERATIVE SOCIETIES ACT, 2002

In the Multi-State Co-operative Societies Act, 2002, in section 67, in sub-

section (1),—

Amendment of section 67 of Act 39 of 2002.

(a) after the words "receive deposits", the words "from its voting

members" shall be inserted;

(b) the following Explanation shall be inserted, namely:—

"Explanation.—For the removal of doubts, it is hereby clarified that a multi-State co-operative society shall not be entitled to receive deposits from persons other than voting members.".

———

[Assented to on

31st July, 2019

Act No. 22 of 2019]

THE COMPANIES (AMENDMENT) ACT, 2019

AN

ACT

further to amend the Companies Act, 2013.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:

1. (1) This Act may be called the Companies (Amendment) Act, Short title and commencement.

2019.

(2) The provisions of this Act, except sections 6, 7 and 8, clauses (i), (iii) and clause (iv) of section 14, sections 20 and 21, section 31, sections 33, 34 and 35, sections 37 and 38 shall be deemed to have come into force on the 2nd day of November, 2018.

(3) The provisions of sections 6, 7 and 8, clauses (i), (iii) and clause (iv) of section 14, sections 20 and 21, section 31, sections 33, 34 and 35, sections 37 and 38 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for these provisions and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

18 of 2013.

2. In section 2 of the Companies Act, 2013 (hereinafter referred to as Amendment of section 2.

the principal Act), in clause (41),––

(a) for the first proviso, the following provisos shall be substituted, namely:—

"Provided that where a company or body corporate, which is a holding company or a subsidiary or associate company of a company incorporated outside India and is required to follow a different financial year for consolidation of its accounts outside India, the Central Government may, on an application made by that company or body corporate in such form and manner as may be prescribed, allow any period as its financial year, whether or not that period is a year:

Provided further that any application pending before the Tribunal as on the date of commencement of the Companies (Amendment) Act, 2019, shall be disposed of by the Tribunal in accordance with the provisions applicable to it before such commencement.";

(b) in the second proviso, for the words "Provided further that", the words "Provided also that" shall be substituted.

3. After section 10 of the principal Act, the following section shall be Insertion of new section 10A.

inserted, namely:—

Commencement of business, etc.

"10A. (1) A company incorporated after the commencement of the Companies (Amendment) Act, 2019 and having a share capital shall not commence any business or exercise any borrowing powers unless—

(a) a declaration is filed by a director within a period of one hundred and eighty days of the date of incorporation of the company in such form and verified in such manner as may be prescribed, with the Registrar thatThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 75 every subscriber to the memorandum has paid the value of the shares agreed to be taken by him on the date of making of such declaration; and

(b) the company has filed with the Registrar a verification of its

registered office as provided in sub-section (2) of section 12.

(2) If any default is made in complying with the requirements of this section, the company shall be liable to a penalty of fifty thousand rupees and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues but not exceeding an amount of one lakh rupees.

(3) Where no declaration has been filed with the Registrar under clause (a) of sub-section (1) within a period of one hundred and eighty days of the date of incorporation of the company and the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may, without prejudice to the provisions of sub-section (2), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII.".

4. In section 12 of the principal Act, after sub-section (8), the following Amendment of section 12.

sub-section shall be inserted, namely:—

"(9) If the Registrar has reasonable cause to believe that the company is not carrying on any business or operations, he may cause a physical verification of the registered office of the company in such manner as may be prescribed and if any default is found to be made in complying with the requirements of sub-section (1), he may without prejudice to the provisions of sub-section (8), initiate action for the removal of the name of the company from the register of companies under Chapter XVIII."

5. In section 14 of the principal Act,—

Amendment of section 14.

(i) in sub-section (1), for the second proviso, the following provisos

shall be substituted, namely:—

"Provided further that any alteration having the effect of conversion of a public company into a private company shall not be valid unless it is approved by an order of the Central Government on an application made in such form and manner as may be prescribed :

Provided also that any application pending before the Tribunal, as on the date of commencement of the Companies (Amendment) Act, 2019, shall be disposed of by the Tribunal in accordance with the provisions applicable to it before such commencement.";

(ii) in sub-section (2), for the word "Tribunal", the words "Central

Government" shall be substituted.

6. In section 26 of the principal Act,—

Amendment of section 26.

(i) in sub-sections (4), (5) and (6), for the word "registration", the

word "filing" shall be substituted;

(ii) sub-section (7) shall be omitted.

7. In section 29 of the principal Act,—

Amendment of section 29.

(i) in sub-section (1), in clause (b), the word "public" shall be

omitted;

(ii) after sub-section (1), the following sub-section shall be inserted, namely:—

22 of 1996.

"(1A) In case of such class or classes of unlisted companies as may be prescribed, the securities shall be held or transferred only in dematerialised form in the manner laid down in the Depositories Act, 1996 and the regulations made thereunder.".

Amendment of section 35.

8. In section 35 of the principal Act, in sub-section (2), in clause (c), for the words "delivery of a copy of the prospectus for registration", the words "filing of a copy of the prospectus with the Registrar" shall be substituted.

9. In section 53 of the principal Act, for sub-section (3), the following Amendment of section 53.

sub-section shall be substituted, namely:—

"(3) Where any company fails to comply with the provisions of this section, such company and every officer who is in default shall be liable to a penalty which may extend to an amount equal to the amount raised through the issue of shares at a discount or five lakh rupees, whichever is less, and the company shall also be liable to refund all monies received with interest at the rate of twelve per cent. per annum from the date of issue of such shares to the persons to whom such shares have been issued.".

10. In section 64 of the principal Act, for sub-section (2), the following Amendment of section 64.

sub-section shall be substituted, namely:—

"(2) Where any company fails to comply with the provisions of sub-section (1), such company and every officer who is in default shall be liable to a penalty of one thousand rupees for each day during which such default continues, or five lakh rupees whichever is less.".

11. In section 77 of the principal Act, in sub-section (1), for the first and Amendment of section 77. second provisos, the following provisos shall be substituted, namely:—

"Provided that the Registrar may, on an application by the company, allow such registration to be made––

(a) in case of charges created before the commencement of the Companies (Amendment) Act, 2019, within a period of three hundred days of such creation; or

(b) in case of charges created on or after the commencement of the Companies (Amendment) Act, 2019, within a period of sixty days of such creation,

on payment of such additional fees as may be prescribed:

Provided further that if the registration is not made within the period specified—

(a) in clause (a) to the first proviso, the registration of the charge shall be made within six months from the date of commencement of the Companies (Amendment) Act, 2019, on payment of such additional fees as may be prescribed and different fees may be prescribed for different classes of companies;

(b) in clause (b) to the first proviso, the Registrar may, on an application, allow such registration to be made within a further period of sixty days after payment of such ad valorem fees as may be prescribed.".

Amendment of section 86.

12. Section 86 of the principal Act shall be numbered as sub-section (1) thereof and after sub-section (1) as so numbered, the following sub-section shall be inserted, namely:—

"(2) If any person wilfully furnishes any false or incorrect information or knowingly suppresses any material information, required to be registered in accordance with the provisions of section 77, he shall be liable for action under section 447.".

13. For section 87 of the principal Act, the following section shall be

substituted, namely:—

Substitution of new section for section 87.

"87. The Central Government on being satisfied that—

(a) the omission to give intimation to the Registrar of the payment or satisfaction of a charge, within the time required under this Chapter; or

Rectification by Central Government in Register of charges.

(b) the omission or misstatement of any particulars, in any filing previously made to the Registrar with respect to any charge or modification thereof or with respect to any memorandum of satisfaction or other entry made in pursuance of section 82 or section 83,

was accidental or due to inadvertence or some other sufficient cause or it is not of a nature to prejudice the position of creditors or shareholders of the company, it may, on the application of the company or any person interested and on such terms and conditions as it deems just and expedient, direct that the time for the giving of intimation of payment or satisfaction shall be extended or, as the case may require, that the omission or misstatement shall be rectified.".

14. In section 90 of the principal Act,—

Amendment of section 90.

(i) after sub-section (4), the following sub-section shall be inserted,

namely:—

"(4A) Every company shall take necessary steps to identify an individual who is a significant beneficial owner in relation to the company and require him to comply with the provisions of this section.";

(ii) for sub-section (9), the following sub-section shall be substituted,

namely:—

"(9) The company or the person aggrieved by the order of the Tribunal may make an application to the Tribunal for relaxation or lifting of the restrictions placed under sub-section (8), within a period of one year from the date of such order:

Provided that if no such application has been filed within a period of one year from the date of the order under sub-section (8), such shares shall be transferred, without any restrictions, to the authority constituted under sub-section (5) of section 125, in such manner as may be prescribed.";

(iii) after sub-section (9), as so substituted, the following sub-section

shall be inserted, namely:—

"(9A) The Central Government may make rules for the purposes

of this section.";

(iv) in sub-section (11), after the word, brackets and figure "sub- section (4)", the words, brackets, figure and letter "or required to take necessary steps under sub-section (4A)" shall be inserted.

15. In section 92 of the principal Act, for sub-section (5), the following Amendment of section 92.

sub-section shall be substituted, namely:—

"(5) If any company fails to file its annual return under sub-section (4), before the expiry of the period specified therein, such company and its every officer who is in default shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.".

16. In section 102 of the principal Act, for sub-section (5), the following Amendment of section 102.

sub-section shall be substituted, namely:—

"(5) Without prejudice to the provisions of sub-section (4), if any default is made in complying with the provisions of this section, every promoter, director, manager or other key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees or five times the amount of benefit accruing to the promoter, director, manager or other key managerial personnel or any of his relatives, whichever is higher.".

Amendment of section 105.

17. In section 105 of the principal Act, in sub-section (3), for the words "punishable with fine which may extend to five thousand rupees", the words "liable to a penalty of five thousand rupees" shall be substituted.

18. In section 117 of the principal Act, for sub-section (2), the following Amendment of section 117.

sub-section shall be substituted, namely:—

"(2) If any company fails to file the resolution or the agreement under sub-section (1) before the expiry of the period specified therein, such company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of twenty-five lakh rupees and every officer of the company who is in default including liquidator of the company, if any, shall be liable to a penalty of fifty thousand rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.".

19. In section 121 of the principal Act, for sub-section (3), the following Amendment of section 121.

sub-section shall be substituted, namely:—

"(3) If the company fails to file the report under sub-section (2) before the expiry of the period specified therein, such company shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees and every officer of the company who is in default shall be liable to a penalty which shall not be less than twenty-five thousand rupees and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees."

20. In section 132 of the principal Act,—

Amendment of section 132.

(a) after sub-section (1), the following sub-section shall be inserted, namely:—

"(1A) The National Financial Reporting Authority shall perform its functions through such divisions as may be prescribed.";

(b) after sub-section (3), the following sub-sections shall be inserted,

namely:—

"(3A) Each division of the National Financial Reporting Authority shall be presided over by the Chairperson or a full-time Member authorised by the Chairperson.

(3B) There shall be an executive body of the National Financial Reporting Authority consisting of the Chairperson and full-time Members of such Authority for efficient discharge of its functions under sub-section (2) [other than clause (a)] and sub-section (4).";

(c) in sub-section (4), in clause (c), for sub-clause (B), the following

sub-clause shall be substituted, namely:—

"(B) debarring the member or the firm from—

I. being appointed as an auditor or internal auditor or undertaking any audit in respect of financial statements or internal audit of the functions and activities of any company or body corporate; or

II. performing any valuation as provided under section 247,

for a minimum period of six months or such higher period not exceeding ten years as may be determined by the National Financial Reporting Authority.".

21. In section 135 of the principal Act,—

Amendment of section 135.

(a) in sub-section (5), —

(i) after the words "three immediately preceding financial years,", the words "or where the company has not completed the period of three financial years since its incorporation, during such immediately preceding financial years," shall be inserted;

(ii) in the second proviso, after the words "reasons for not spending the amount" occurring at the end, the words, brackets, figure and letters "and, unless the unspent amount relates to any ongoing project referred to in sub-section (6), transfer such unspent amount to a Fund specified in Schedule VII, within a period of six months of the expiry of the financial year" shall be inserted;

(b) after sub-section (5), the following sub-sections shall be inserted,

namely:—

"(6)Any amount remaining unspent under sub-section (5), pursuant to any ongoing project, fulfilling such conditions as may be prescribed, undertaken by a company in persuance of its Corporate Social Responsibility Policy, shall be transferred by the company within a period of thirty days from the end of the financial year to a special account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account, and such amount shall be spent by the company in pursuance of its obligation towards the Corporate Social Responsibility Policy within a period of three financial years from the date of such transfer, failing which, the company shall transfer the same to a Fund specified in Schedule VII, within a period of thirty days from the date of completion of the third financial year.

(7) If a company contravenes the provisions of sub-section (5) or sub-section (6), the company shall be punishable with fine which shall not be less than fifty thousand rupees but which may extend to twenty-five lakh rupees and every officer of such company who is in default shall be punishable with imprisonment for a term which may extend to three years or with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees, or with both.

(8) The Central Government may give such general or special directions to a company or class of companies as it considers necessary to ensure compliance of provisions of this section and such company or class of companies shall comply with such directions.".

22. In section 137 of the principal Act, in sub-section (3),—

Amendment of section 137.

(a) for the words "punishable with fine", the words "liable to a penalty" shall be substituted;

(b) for the portion beginning with the words "punishable with imprisonment", and ending with the words "five lakh rupees or with both", the words "shall be liable to a penalty of one lakh rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees" shall be substituted.

23. In section 140 of the principal Act, for sub-section (3), the following Amendment of section 140. sub-section shall be substituted, namely:—

"(3) If the auditor does not comply with the provisions of sub-section (2), he or it shall be liable to a penalty of fifty thousand rupees or an amount equal to the remuneration of the auditor, whichever is less, and in case of continuing failure, with a further penalty of five hundred rupees for each day after the first during which such failure continues, subject to a maximum of five lakh rupees.".

24. In section 157 of the principal Act, for sub-section (2), the following Amendment of section 157.

sub-section shall be substituted, namely:—

"(2) If any company fails to furnish the Director Identification Number under sub-section (1), such company shall be liable to a penalty of twenty- five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees, and every officer of the company who is in default shall be liable to a penalty of not less than twenty-five thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of one lakh rupees.".

25. For section 159 of the principal Act, the following section shall be substituted, namely:—

Substitution of new section for section 159.

Penalty for default of certain provisions.

"159. If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.".

26. In section 164 of the principal Act, in sub-section (1), after clause Amendment of section 164. (h), the following clause shall be inserted, namely:—

"(i) he has not complied with the provisions of sub-section (1) of section 165.".

Amendment of section 165.

27. In section 165 of the principal Act, in sub-section (6), for the portion beginning with the words "punishable with fine" and ending with the words "contravention continues", the words "liable to a penalty of five thousand rupees for each day after the first during which such contravention continues" shall be substituted.

28. In section 191 of the principal Act, for sub-section (5), the following Amendment of section 191.

sub-section shall be substituted, namely:—

"(5) If a director of the company makes any default in complying with the provisions of this section, such director shall be liable to a penalty of one lakh rupees.".

29. In section 197 of the principal Act,—

Amendment of section 197.

(a) sub-section (7) shall be omitted;

(b) for sub-section (15), the following sub-section shall be substituted,

namely:—

"(15) If any person makes any default in complying with the provisions of this section, he shall be liable to a penalty of one lakh rupees and where any default has been made by a company, the company shall be liable to a penalty of five lakh rupees.".

30. In section 203 of the principal Act, for sub-section (5), the following Amendment of section 203.

sub-section shall be substituted, namely:—

"(5) If any company makes any default in complying with the provisions of this section, such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such default continues but not exceeding five lakh rupees.".

31. In section 212 of the principal Act,—

Amendment of section 212.

(a) in sub-section (8), for the words "If the Director, Additional Director or Assistant Director", the words "If any officer not below the rank of Assistant Director" shall be substituted;

(b) in sub-section (9), for the portion beginning with the words "The Director" and ending with the word, brackets and figure "sub-section (8)", the words, brackets and figure "The officer authorised under sub-section (8) shall, immediately after arrest of such person under such sub-section" shall be substituted;

(c) in sub-section (10),—

(i) for the words "Judicial Magistrate", the words "Special Court

or Judicial Magistrate" shall be substituted;

(ii) in the proviso, for the words "Magistrate's court", the words

"Special Court or Magistrate's court" shall be substituted;

(d) after sub-section (14), the following sub-section shall be inserted,

namely:—

"(14A) Where the report under sub-section (11) or sub-section (12) states that fraud has taken place in a company and due to such fraud any director, key managerial personnel, other officer of the company or any other person or entity, has taken undue advantage or benefit, whether in the form of any asset, property or cash or in any other manner, the Central Government may file an application before the Tribunal for appropriate orders with regard to disgorgement of such asset, property or cash and also for holding such director, key managerial personnel, other officer or any other person liable personally without any limitation of liability.".

Amendment of section 238.

32. In section 238 of the principal Act, in sub-section (3), for the words "punishable with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees", the words "liable to a penalty of one lakh rupees" shall be substituted.

33. In section 241 of the principal Act,—

Amendment of section 241.

(a) in sub-section (2), the following proviso shall be inserted, namely:—

"Provided that the applications under this sub-section, in respect of such company or class of companies, as may be prescribed, shall be made before the Principal Bench of the Tribunal which shall be dealt with by such Bench.";

(b) after sub-section (2), the following sub-sections shall be inserted, namely:—

"(3)Where in the opinion of the Central Government there exist circumstances suggesting that––

(a) any person concerned in the conduct and management of the affairs of a company is or has been in connection therewith guilty of fraud, misfeasance, persistent negligence or default in carrying out his obligations and functions under the law or of breach of trust;

(b) the business of a company is not or has not been conducted and managed by such person in accordance with sound business principles or prudent commercial practices;

(c) a company is or has been conducted and managed by such person in a manner which is likely to cause, or has caused, serious injury or damage to the interest of the trade, industry or business to which such company pertains; or

(d) the business of a company is or has been conducted and managed by such person with intent to defraud its creditors, members or any other person or otherwise for a fraudulent or unlawful purpose or in a manner prejudicial to public interest,

the Central Government may initiate a case against such person and refer the same to the Tribunal with a request that the Tribunal may inquire into the case and record a decision as to whether or not such person is a fit and proper person to hold the office of director or any other office connected with the conduct and management of any company.

(4) The person against whom a case is referred to the Tribunal under sub-section (3), shall be joined as a respondent to the application.

(5) Every application under sub-section (3)––

(a) shall contain a concise statement of such circumstances and materials as the Central Government may consider necessary for the purposes of the inquiry; and

5 of 1908.

(b) shall be signed and verified in the manner laid down in the Code of Civil Procedure, 1908, for the signature and verification of a plaint in a suit by the Central Government.".

34. In section 242 of the principal Act, after sub-section (4), the following Amendment of section 242.

sub-section shall be inserted, namely:––

"(4A) At the conclusion of the hearing of the case in respect of sub- section (3) of section 241, the Tribunal shall record its decision stating therein specifically as to whether or not the respondent is a fit and proper person to hold the office of director or any other office connected with the conduct and management of any company.".

35. In section 243 of the principal Act,––

Amendment of section 243.

(a) after sub-section (1), the following sub-sections shall be inserted,

namely:—

"(1A) The person who is not a fit and proper person pursuant to sub-section (4A) of section 242 shall not hold the office of a director or any other office connected with the conduct and management of the affairs of any company for a period of five years from the date of the said decision:

Provided that the Central Government may, with the leave of the Tribunal, permit such person to hold any such office before the expiry of the said period of five years.

(1B) Notwithstanding anything contained in any other provision of this Act, or any other law for the time being in force, or any contract, memorandum or articles, on the removal of a person from the office of a director or any other office connected with the conduct and management of the affairs of the company, that person shall not be entitled to, or be paid, any compensation for the loss or termination of office.";

(b) in sub-section (2), after the word, brackets and figure "sub-section (1)", the words, brackets, figure and letter "or sub-section (1A)" shall be inserted.

36. In section 248 of the principal Act, in sub-section (1),—

Amendment of section 248.

(a) in clause (c), for the word and figures "section 455,", the words

and figures "section 455; or" shall be substituted;

(b) after clause (c) and before the long line, the following clauses

shall be inserted, namely:—

"(d) the subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation under sub-section (1) of section 10A; or (e) the company is not carrying on any business or operations, as revealed after the physical verification carried out under sub-section (9) of section 12.".

Amendment of section 272.

37. In section 272 of the principal Act, in sub-section (3), for the words, brackets and letter "or clause (e) of that sub-section", the words "of that section" shall be substituted.

38. In section 398 of the principal Act, in sub-section (1), in clause (f), Amendment of section 398.

the word "prospectus," shall be omitted.

39. In section 441 of the principal Act,—

Amendment of section 441.

(a) in sub-section (1), in clause (b), for the words "does not exceed five lakh rupees", the words "does not exceed twenty-five lakh rupees" shall be substituted;

(b) for sub-section (6), the following sub-section shall be substituted,

namely:—

2 of 1974.

"(6)Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence which is punishable under this Act with imprisonment only or with imprisonment and also with fine shall not be compoundable.".

Amendment of section 446B.

40. In section 446B of the principal Act, for the portion beginning with the words "punishable with fine" and ending with the words "specified in such sections", the words "liable to a penalty which shall not be more than one-half of the penalty specified in such sections" shall be substituted.

41. In section 447 of the principal Act, in the second proviso, for the Amendment of section 447.

words "twenty lakh rupees", the words "fifty lakh rupees" shall be substituted.

42. In section 454 of the principal Act,—

Amendment of section 454.

(i) for sub-section (3), the following sub-section shall be substituted, namely:—

"(3) The adjudicating officer may, by an order—

(a) impose the penalty on the company, the officer who is in default, or any other person, as the case may be, stating therein any non- compliance or default under the relevant provisions of this Act; and

(b) direct such company, or officer who is in default, or any other person, as the case may be, to rectify the default, wherever he considers fit.";

(ii) in sub-section (4), for the words "such company and the officer who is in default", the words "such company, the officer who is in default or any other person" shall be substituted;

(iii) in sub-section (8),—

(a) in clause (i), for the words "does not pay the penalty imposed by the adjudicating officer or the Regional Director", the words, brackets and figures "fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be," shall be substituted;

(b) in clause (ii)––

(i) for the words "Where an officer of a company", the words "Where an officer of a company or any other person" shall be substituted;

(ii) for the words "does not pay the penalty", the words, brackets and figures "fails to comply with the order made under sub-section (3) or sub-section (7), as the case may be," shall be substituted.

43. After section 454 of the principal Act, the following section shall be Insertion of new section 454A. inserted, namely:—

Penalty for repeated default.

"454A. Where a company or an officer of a company or any other person having already been subjected to penalty for default under any provisions of this Act, again commits such default within a period of three years from the date of order imposing such penalty passed by the adjudicating officer or the Regional Director, as the case may be, it or he shall be liable for the second or subsequent defaults for an amount equal to twice the amount of penalty provided for such default under the relevant provisions of this Act.".

44. (1) The Companies (Amendment) Second Ordinance, 2019 is hereby Repeal and savings.

Ord. 6 of 2019. repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.

[Assented to on

1st August, 2019

Act No. 23 of 2019]

THE FINANCE (NO. 2) ACT, 2019

AN

ACT

to give effect to the financial proposals of the Central Government for

the financial year 2019-2020.

BE it enacted by Parliament in the Seventieth Year of the Republic

of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Finance (No. 2) Act, 2019. Short title and commencement.

(2) Save as otherwise provided in this Act,—

(a) sections 2 to 69 shall be deemed to have come into force

on the 1st day of April, 2019 ;

(b) sections 92 to 112 and section 114 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

CHAPTER II

RATES OF INCOME-TAX

Income-tax.

2. (1) Subject to the provisions of sub-sections (2) and (3), for the assessment year commencing on the 1st day of April, 2019, income-tax shall be charged at the rates specifiedin Part I of the First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in each case in the manner provided therein.

(2) In the cases to which Paragraph A of Part I of the First Schedule applies, where the assessee has, in the previous year, any net agricultural income exceeding five thousand rupees, in addition to total income, and the total income exceeds two lakh fifty thousand rupees, then,—

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging income-tax in respect of the total income ; and

(b) the income-tax chargeable shall be calculated as follows:—

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, and the amount of income-tax shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income as so increased were the total income;

(iii) the amount of income-tax determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax in respect of the total income :

Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words "two lakh fifty thousand rupees", the words "three lakh rupees" had been substituted :

Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part I of the First Schedule, the provisions of this sub-section shall have effect as if for the words "two lakh fifty thousand rupees", the words "five lakh rupees" had been substituted.

43 of 1961 (3) In cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub- section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act, 1961 (hereinafter referred to as the Income-tax Act) apply, the tax chargeable shall be determined as provided in that Chapter or that section, and with reference to the rates imposed by sub-section (1) or the rates as specified in that Chapter or section, as the case may be :

Provided that the amount of income-tax computed in accordance with the provisions of section 111A or section 112 or section 112A of the Income-tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part I of the First Schedule :

Provided further that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA, 115BBF, 115BBG, 115E, 115JB or 115JC of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes of the Union, calculated,—

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(i) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax ; and

(ii) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax ;

(b) in the case of every co-operative society or firm or local authority, at the rate of twelve per cent. of such income-tax, where the total income exceeds one crore rupees ;

(c) in the case of every domestic company,—

(i) at the rate of seven per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of twelve per cent. of such income-tax, where

the total income exceeds ten crore rupees;

(d) in the case of every company, other than a domestic company,—

(i) at the rate of two per cent. of such income-tax, where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such income-tax, where the

total income exceeds ten crore rupees :

Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds,—

(i) fifty lakh rupees but does not exceed one crore rupees, the total amount payable as income-tax and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(ii) one crore rupees, the total amount payable as income- tax and surcharge thereon shall not exceed the total amount payable as incometax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees :

Provided also that in the case of persons mentioned in (b) above, having total income chargeable to tax under section 115JC of the Incometax Act, and such income exceeds one crore rupees, the total amount payable as income-tax on such income and surcharge thereon shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees :

Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees :

Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees,This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 88 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) the total amount payable as income-tax on such income and surcharge thereon, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees :

Provided also that in respect of any income chargeable to tax under clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the amount of income-tax computed under this sub-section shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twenty-five per cent. of such income-tax.

(4) In cases in which tax has to be charged and paid under sub-section (2A) of section 92CE or section 115-O or section 115QA or sub-section (2) of section 115R or section 115TA or section 115TD of the Income-tax Act, the tax shall be charged and paid at the rates as specified in those sections and shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twelve per cent. of such tax.

(5) In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D, 194LBA, 194LBB, 194LBC and 195 of the Income- tax Act, at the rates in force, the deductions shall be made at the rates specified in Part II of the First Schedule and shall be increased by a surcharge, for the purposes of the Union, calculated in cases wherever prescribed, in the manner provided therein.

(6) In cases in which tax has to be deducted under sections 192A, 194C, 194DA, 194E, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC, 194LD, 194M, 194N, 196B, 196C and 196D of the Income-tax Act, the deductions shall be made at the rates specified in those sections and shall be increased by a surcharge, for the purposes of the Union,—

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, being a non-resident, calculated,—

(i) at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed two crore rupees ;

(iii) at the rate of twenty-five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds two crore rupees but does not exceed five crore rupees ;

(iv) at the rate of thirty-seven per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds five crore rupees ;

(b) in the case of every co-operative society or firm, being a non- resident, calculated at the rate of twelve per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees ;

(c) in the case of every company, other than a domestic company,

calculated,—

(i) at the rate of two per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

(7) In cases in which tax has to be collected under the proviso to section 194B of the Income-tax Act, the collection shall be made at the rates specified in Part II of the First Schedule, and shall be increased by a surcharge, for the purposes of the Union, calculated, in cases wherever prescribed, in the manner provided therein.

(8) In cases in which tax has to be collected under section 206C of the Income-tax Act, the collection shall be made at the rates specified in that section and shall be increased by a surcharge, for the purposes of the Union,—

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, being a non-resident, calculated,—

(i) at the rate of ten per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed two crore rupees;

(iii) at the rate of twenty-five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the collection exceeds two crore rupees but does not exceed five crore rupees;

(iv) at the rate of thirty-seven per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds five crore rupees ;

(b) in the case of every co-operative society or firm, being a non- resident, calculated at the rate of twelve per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees;

(c) in the case of every company, other than a domestic company, calculated,—

(i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees.

(9) Subject to the provisions of sub-section (10), in cases in which income-tax has to be charged under sub-section (4) of section 172 or sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the Income-tax Act or deducted from, or paid on, income chargeable under the head "Salaries" under section 192 of the said Act or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, "advance tax" shall be charged, deducted or computed at the rate or rates specified in Part III of the First Schedule and such tax shall be increased by a surcharge, for the purposes of the Union, calculated in such cases and in such manner as provided therein:

Provided that in cases to which the provisions of Chapter XII or Chapter XII-A or section 115JB or section 115JC or Chapter XII-FA or Chapter XII-FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act apply, "advance tax" shall be computed with reference to the rates imposed by this sub-section or the rates as specified in that Chapter or section, as the case may be :

Provided further that the amount of "advance tax" computed in accordance with the provisions of section 111A or section 112 or section 112A of the Income- tax Act shall be increased by a surcharge, for the purposes of the Union, as provided in Paragraph A, B, C, D or E, as the case may be, of Part III of the First Schedule :

Provided also that in respect of any income chargeable to tax under section 115A, 115AB, 115AC, 115ACA, 115AD, 115B, 115BA, 115BB, 115BBA, 115BBC, 115BBD, 115BBDA, 115BBF, 115BBG, 115E, 115JB or 115JC of the Income-tax Act, "advance tax" computed under the first proviso shall be increased by a surcharge, for the purposes of the Union, calculated,—

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(i) at the rate of ten per cent. of such "advance tax", where the total income exceeds fifty lakh rupees but does not exceed one crore rupees;

(ii) at the rate of fifteen per cent. of such "advance tax", where the total income exceeds one crore rupees but does not exceed two crore rupees;

(iii) at the rate of twenty-five per cent. of such "advance tax", where the total income exceeds two crore rupees but does not exceed five crore rupees;

(iv) at the rate of thirty-seven per cent. of such "advance

tax", where the total income exceeds five crore rupees;

(b) in the case of every co-operative society or firm or local authority at the rate of twelve per cent. of such "advance tax", where the total income exceeds one crore rupees;

(c) in the case of every domestic company,—

(i) at the rate of seven per cent. of such "advance tax", where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of twelve per cent. of such "advance tax",

where the total income exceeds ten crore rupees;

(d) in the case of every company, other than a domestic company,—

(i) at the rate of two per cent. of such "advance tax", where the total income exceeds one crore rupees but does not exceed ten crore rupees;

(ii) at the rate of five per cent. of such "advance tax", where

the total income exceeds ten crore rupees :

Provided also that in the case of persons mentioned in (a) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds,—

(a) fifty lakh rupees but does not exceed one crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon shall not exceed the total amount payable as "advance tax" on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees but does not exceed two crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon shall not exceed the total amount payable as "advance tax" on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees;

(c) two crore rupees but does not exceed five crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon shall not exceed the total amount payable as "advance tax" on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees;

(d) five crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon shall not exceed the total amount payable as "advance tax" on aThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 92 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) total income of five crore rupees by more than the amount of income that exceeds five crore rupees:

Provided also that in the case of persons mentioned in (b) above, having total income chargeable to tax under section 115JC of the Income-tax Act, and such income exceeds one crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon shall not exceed the total amount payable as "advance tax" on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees :

Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds one crore rupees but does not exceed ten crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon, shall not exceed the total amount payable as "advance tax" on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided also that in the case of every company having total income chargeable to tax under section 115JB of the Income-tax Act, and such income exceeds ten crore rupees, the total amount payable as "advance tax" on such income and surcharge thereon, shall not exceed the total amount payable as "advance tax" and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees :

Provided also that in respect of any income chargeable to tax under clause (i) of sub-section (1) of section 115BBE of the Income-tax Act, the "advance tax" computed under the first proviso shall be increased by a surcharge, for the purposes of the Union, calculated at the rate of twenty-five per cent. of such "advance tax".

(10) In cases to which Paragraph A of Part III of the First Schedule applies, where the assessee has, in the previous year or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any net agricultural income exceeding five thousand rupees, in addition to total income and the total income exceeds two lakh fifty thousand rupees, then, in charging income-tax under sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or in computing the "advance tax" payable under Chapter XVII-C of the said Act, at the rate or rates in force,—

(a) the net agricultural income shall be taken into account, in the manner provided in clause (b) [that is to say, as if the net agricultural income were comprised in the total income after the first two lakh fifty thousand rupees of the total income but without being liable to tax], only for the purpose of charging or computing such income-tax or, as the case may be, "advance tax" in respect of the total income; andThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 93 (b) such income-tax or, as the case may be, "advance tax" shall

be so charged or computed as follows:—

(i) the total income and the net agricultural income shall be aggregated and the amount of income-tax or "advance tax" shall be determined in respect of the aggregate income at the rates specified in the said Paragraph A, as if such aggregate income were the total income;

(ii) the net agricultural income shall be increased by a sum of two lakh fifty thousand rupees, and the amount of income-tax or "advance tax" shall be determined in respect of the net agricultural income as so increased at the rates specified in the said Paragraph A, as if the net agricultural income were the total income;

(iii) the amount of income-tax or "advance tax" determined in accordance with sub-clause (i) shall be reduced by the amount of income-tax or, as the case may be, "advance tax" determined in accordance with sub-clause (ii) and the sum so arrived at shall be the income-tax or, as the case may be, "advance tax" in respect of the total income:

Provided that in the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, referred to in item (II) of Paragraph A of Part III of the First Schedule, the provisions of this sub-section shall have effect as if for the words "two lakh fifty thousand rupees", the words "three lakh rupees" had been substituted:

Provided further that in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year, referred to in item (III) of Paragraph A of Part III of the First Schedule, the provisions of this sub- section shall have effect as if for the words "two lakh fifty thousand rupees", the words "five lakh rupees" had been substituted:

Provided also that the amount of income-tax or "advance tax" so arrived at, shall be increased by a surcharge for the purposes of the Union, calculated in each case, in the manner provided therein.

(11) The amount of income-tax as specified in sub-sections (1) to (3) and as increased by the applicable surcharge, for the purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes of the Union, to be called the "Health and Education Cess on income-tax", calculated at the rate of four per cent. of such income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance quality health services and universalised quality basic education and secondary and higher education.

(12) The amount of income-tax as specified in sub-sections (4) to (10) and as increased by the applicable surcharge, for the purposes of the Union, calculated in the manner provided therein, shall be further increased by an additional surcharge, for the purposes of the Union, to be called the "Health and Education Cess on income-tax", calculated at the rate of four per cent. of suchThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 94 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) income-tax and surcharge so as to fulfil the commitment of the Government to provide and finance quality health services and universalised quality basic education and secondary and higher education:

Provided that nothing contained in this sub-section shall apply to cases in which tax is to be deducted or collected under the sections of the Income-tax Act mentioned in sub-sections (5), (6), (7) and (8), if the income subjected to deduction of tax at source or collection of tax at source is paid to a domestic company and any other person who is resident in India.

(13) For the purposes of this section and the First Schedule,—

(a) "domestic company" means an Indian company or any other company which, in respect of its income liable to income-tax under the Income-tax Act, for the assessment year commencing on the 1st day of April, 2019, has made the prescribed arrangements for the declaration and payment within India of the dividends (including dividends on preference shares) payable out of such income;

(b) "insurance commission" means any remuneration or reward, whether by way of commission or otherwise, for soliciting or procuring insurance business (including business relating to the continuance, renewal or revival of policies of insurance);

(c) "net agricultural income" in relation to a person, means the total amount of agricultural income, from whatever source derived, of that person computed in accordance with the rules contained in Part IV of the First Schedule;

(d) all other words and expressions used in this section and the First Schedule but not defined in this sub-section and defined in the Income- tax Act shall have the meanings, respectively, assigned to them in that Act.

CHAPTER III

DIRECT TAXES

Income-tax

Amendment of section 2.

3. In section 2 of the Income-tax Act, in clause (19AA), in sub-clause (iii), the following proviso shall be inserted with effect from the 1st day of April, 2020, namely:—

"Provided that the provisions of this sub-clause shall not apply where the resulting company records the value of the property and the liabilities of the undertaking or undertakings at a value different from the value appearing in the books of account of the demerged company, immediately before the demerger, in compliance to the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting Standards) Rules, 2015;".

Amendment of section 9.

4. In section 9 of the Income-tax Act, in sub-section (1), after clause (vii), the following clause shall be inserted with effect from the 1st day of April, 2020, namely:––

"(viii) income arising outside India, being any sum of money referred to in sub-clause (xviia) of clause (24) of section 2, paid on or after the 5th day of July, 2019 by a person resident in India to a non-resident, not being a company, or to a foreign company.".

Amendment of section 9A.

5. In section 9A of the Income-tax Act, in sub-section (3),–– (i) in clause (j), in the first proviso, for the words "at the end of such previous year", the words "at the end of a period of six months from the last day of the month of its establishment or incorporation, or at the end of such previous year, whichever is later" shall be substituted;

(ii) in clause (m), for the words "the arm's length price of the said activity", the words "the amount calculated in such manner as may be prescribed" shall be substituted.

6. In section 10 of the Income-tax Act,––

Amendment of section 10.

(I) after clause (4B), the following clause shall be inserted,

namely:––

"(4C) any income by way of interest payable to a non-resident, not being a company, or to a foreign company, by any Indian company or business trust in respect of monies borrowed from a source outside India by way of issue of rupee denominated bond, as referred to in clause (ia) of sub-section (2) of section 194LC, during the period beginning from the 17th day of September, 2018 and ending on the 31st day of March, 2019;";

(II) after clause (4C) as so inserted, the following shall be inserted

with effect from 1st day of April, 2020, namely:—

'(4D) any income accrued or arisen to, or received by a specified fund as a result of transfer of capital asset referred to in clause (viiab) or section 47, on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange, to the extent such income accrued or arisen to, or is received in respect of units held by a non-resident.

Explanation.—For the pur poses of this clause, the

expression—

42 of 1999.

(a) "convertible foreign exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 and the rules made thereunder;

15 of 1992.

(b) "manager" shall have the meaning assigned to it in clause (q) of sub-regulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992;

(c) "specified fund" means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate,—

15 of 1992.

(i) which has been granted a certificate of registration as a Category III Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992;

(ii) which is located in any International Financial Services Centre;

(iii) of which all the units are held by non-residents other than unit held by a sponsor or manager;

15 of 1992.

(d) "sponsor" shall have the meaning assigned to it in clause (w) of subregulation (1) of regulation 2 of the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012, made under the Securities and Exchange Board of India Act, 1992;

(e) "trust" means a trust established under the Indian Trusts

2 of 1882.

Act, 1882 or under any other law for the time being in force;

(f) "unit" means beneficial interest of an investor in the fund and shall include shares or partnership interest;

(III) with effect from the 1st day of April, 2020,––

(a) in clause (12A), for the words "forty per cent.", the words "sixty per cent." shall be substituted;

(b) in clause (15), after sub-clause (viii), the following sub- clause shall be inserted, namely:—

'(ix) any income by way of interest payable to a non- resident by a unit located in an International Financial Services Centre in respect of monies borrowed by it on or after the 1st day of September, 2019.

Explanation.—For the purposes of this sub-clause,—

28 of 2005.

(a) "International Financial Services Centre" shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005;

(b) "unit" shall have the meaning assigned to it in clause (zc) of

28 of 2005.

section 2 of the Special Economic Zones Act, 2005;';

(IV) in clause (23C), with effect from the 1st day of September, 2019,—

(a) in the second proviso, for the words "and the prescribed authority", the words "and the compliance of such requirements under any other law for the time being in force by such fund or trust or institution or any university or other educational institution or any hospital or other medical institutions, as the case may be, as are material for the purpose of achieving its objects and the prescribed authority," shall be substituted;

(b) in the fifteenth proviso, for the portion beginning with "(ii) the activities of such fund" and ending with "was notified or approved,", the following shall be substituted, namely:—

"(ii) the activities of such fund or institution or trust or any university or other educational institution or any hospital or other medical institution—

(A) are not genuine; or

(B) are not being carried out in accordance with all or any of the conditions subject to which it was notified or approved; orThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 97 (iii) such fund or institution or trust or any university or other educational institution or any hospital or other medical institution has not complied with the requirement of any other law for the time being in force, and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality,';

(V) in clause (34A), the brackets and words "(not being listed on a recognised stock exchange)" shall be omitted with effect from the 5th day of July, 2019.

7. In section 12AA of the Income-tax Act, with effect from the 1st day Amendment of section 12AA.

of September, 2019,––

(I) in sub-section (1),––

(i) for clause (a), the following clause shall be substituted,

namely:–

"(a) call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about,––

(i) the genuineness of activities of the trust or institution;

and

(ii) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects, and may also make such inquiries as he may deem necessary in this behalf; and";

(ii) in clause (b), after the words "genuineness of its activities", the words, brackets, figures and letter "as required under sub-clause (i) of clause (a) and compliance of the requirements under sub-clause (ii) of the said clause" shall be inserted;

(II) in sub-section (4), for the portion beginning with the words "the activities of the trust or the institution" and ending with the words "cancel the registration of such trust or institution", the following shall be substituted, namely:––

"(a) the activities of the trust or the institution are being carried out in a manner that the provisions of sections 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (1) of section 13; or

(b) the trust or institution has not complied with the requirement of any other law, as referred to in sub-clause (ii) of clause (a) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred, has either not been disputed or has attained finality, then, the Principal Commissioner or the Commissioner may, by an order in writing, cancel the registration of such trust or institution".

Amendment of section 13A.

8. In section 13A of the Income-tax Act, in the first proviso, in clause (d), for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of April, 2020.

Amendment of section 35AD.

9. In section 35AD of the Income-tax Act, in sub-section (8), in clause (f), for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of April, 2020.

10. In section 40 of the Income-tax Act, in clause (a), with effect from Amendment of section 40.

the 1st day of April, 2020,—

(a) in sub-clause (i), after the proviso, the following proviso shall be inserted, namely:––

"Provided further that where an assessee fails to deduct the whole or any part of the tax in accordance with the provisions of Chapter XVII-B on any such sum but is not deemed to be an assessee in default under the first proviso to sub-section (1) of section 201, then, for the purposes of this sub-clause, it shall be deemed that the assessee has deducted and paid the tax on such sum on the date of furnishing of return of income by the payee referred to in the said proviso;";

(b) in sub-clause (ia), in the second proviso, the word "resident" shall be omitted.

11. In section 40A of the Income-tax Act, with effect from the 1st day Amendment of section 40A.

of April, 2020,––

(i) for the words "bank account" wherever they occur, the words "bank account or through such other electronic mode as may be prescribed" shall be substituted;

(ii) in sub-section (4), after the words "such cheque or draft or electronic clearing system", the words "or such other electronic mode as may be prescribed" shall be inserted.

Amendment of section 43.

12. In section 43 of the Income-tax Act, in clause (1), in the second proviso, for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of April, 2020.

13. In section 43B of the Income-tax Act, with effect from the 1st day Amendment of section 43B.

of April, 2020,––

(i) after clause (d), the following clause shall be inserted, namely:––

"(da) any sum payable by the assessee as interest on any loan or borrowing from a deposit taking non-banking financial company or systemically important non-deposit taking non-banking financial company, in accordance with the terms and conditions of the agreement governing such loan or borrowing, or";

(ii) after Explanation 3A, the following Explanation shall be inserted, namely:–

"Explanation 3AA.—For the removal of doubts, it is hereby declared that where a deduction in respect of any sum referred to in clause (da) is allowed in computing the income referred to in section 28, of the previous year (being a previous year relevant to the assessment year commencing on the 1st day of April, 2019, or any earlier assessment year) in which the liability to pay such sum was incurred by the assessee, the assessee shall not be entitled toThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 99 any deduction under this section in respect of such sum in computing the income of the previous year in which the sum is actually paid by him.";

(iii) after Explanation 3C, the following Explanation shall be

inserted, namely:—

"Explanation 3CA.—For the removal of doubts, it is hereby declared that a deduction of any sum, being interest payable under clause (da), shall be allowed if such interest has been actually paid and any interest referred to in that clause which has been converted into a loan or borrowing shall not be deemed to have been actually paid.";

(iv) in Explanation 4, after clause (d), the following clauses shall

be inserted, namely:––

2 of 1934.

'(e) "deposit taking non-banking financial company" means a non-banking financial company which is accepting or holding public deposits and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934;

2 of 1934.

(f) "non-banking financial company" shall have the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934;

2 of 1934.

(g) "systemically important non-deposit taking non-banking financial company" means a non-banking financial company which is not accepting or holding public deposits and having total assets of not less than five hundred crore rupees as per the last audited balance sheet and is registered with the Reserve Bank of India under the provisions of the Reserve Bank of India Act, 1934.'.

Amendment of section 43CA.

14. In section 43CA of the Income-tax Act, in sub-section (4), for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of April, 2020.

15. In section 43D of the Income-tax Act, with effect from the 1st day Amendment of section 43D.

of April, 2020,––

(i) in clause (a), after the words "State industrial investment corporation", the words "or a deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company" shall be inserted;

(ii) in the long line, after the words "State industrial investment corporation or", the words "a deposit taking non-banking financial company or a systemically important non-deposit taking non-banking financial company or" shall be inserted;

(iii) in the Explanation, after clause (g), the following clause shall

be inserted, namely:––

'(h) the expressions "deposit taking non-banking financial company", "non-banking financial company" and "systemically important non-deposit taking non-banking financial company" shall have the meanings respectively assigned to them in clauses (e), (f) and (g) of Explanation 4 to section 43B.'.

Amendment of section 44AD.

16. In section 44AD of the Income-tax Act, in sub-section (1), in the proviso, for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of April, 2020.

17. In section 47 of the Income-tax Act, in clause (viiab), with effect Amendment of section 47.

from the 1st day of April, 2020,––

(A) for sub-clause (c), the following sub-clauses shall be substituted, namely:—

"(c) derivative; or

(d) such other securities as may be notified by the Central Government in this behalf,";

(B) in the Explanation, after clause (c), the following clause shall be inserted, namely:—

42 of 1956.

'(d) "securities" shall have the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956;'.

Amendment of section 50C.

18. In section 50C of the Income-tax Act, in sub-section (1), in the second proviso, for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of April, 2020.

Amendment of section 50CA.

19. In section 50CA of the Income-tax Act, before the Explanation, the following proviso shall be inserted with effect from the 1st day of April, 2020, namely:—

"Provided that the provisions of this section shall not apply to any consideration received or accruing as a result of transfer by such class of persons and subject to such conditions as may be prescribed.".

20. In section 54GB of the Income-tax Act, with effect from the 1st day Amendment of section 54GB.

of April, 2020,—

(i) in sub-section (4), the following proviso shall be inserted, namely:—

'Provided that in case of a new asset, being computer or computer software, acquired by an eligible start-up referred to in the proviso to clause (d) of sub-section (6), the provisions of this sub-section shall have effect as if for the words "five years", the words "three years" had been substituted.';

(ii) in sub-section (5), in the proviso, for the figures "2019", the figures "2021" shall be substituted;

(iii) in sub-section (6), in clause (b), in sub-clause (iii), for the word "fifty" at both the places where it occurs, the word "twenty-five" shall be substituted.

21. In section 56 of the Income-tax Act, in sub-section (2),––

Amendment of section 56.

(i) in clause (viib), with effect from the 1st day of April, 2020,—

(a) in the proviso, in clause (i), for the words "venture capital fund", the words "venture capital fund or a specified fund" shall be substituted;

(b) after the proviso, the following proviso shall be inserted,

namely:—

"Provided further that where the provisions of this clause have not been applied to a company on account of fulfilment of conditions specified in the notification issued under clause (ii) of the first proviso and such company fails to comply with any of those conditions, then, any consideration received for issue of share that exceeds the fair market value of such share shall be deemed to be the income of that company chargeable to income-tax for the previous year in which such failure has taken place and, it shall also be deemed that the company has under reported the income in consequence of the misreporting referred to in sub-section (8) and sub-section (9) of section 270A for the said previous year.";

(c) in the Explanation, after clause (a), the following clauses

shall be inserted, namely:—

15 of 1992.

'(aa) "specified fund" means a fund established or incorporated in India in the form of a trust or a company or a limited liability partnership or a body corporate which has been granted a certificate of registration as a Category I or a Category II Alternative Investment Fund and is regulated under the Securities and Exchange Board of India (Alternative Investment Fund) Regulations, 2012 made under the Securities and Exchange Board of India Act, 1992;

2 of 1882.

(ab) "trust" means a trust established under the Indian Trusts Act, 1882 or under any other law for the time being in force;';

(ii) in clause (viii), for the words, brackets, letters and figures "clause (b) of section 145A", the words, brackets, figures and letter "sub-section (1) of section 145B" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017;

(iii) in clause (x),––

(A) in sub-clause (b), in the second proviso, for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of April, 2020;

(B) in the proviso, after clause (X), the following clause shall be inserted with effect from the 1st day of April, 2020, namely:—

"(XI) from such class of persons and subject to such

conditions, as may be prescribed.".

22. For section 79 of the Income-tax Act, the following section shall be Substitution of section 9.

substituted with effect from the 1st day of April, 2020, namely:––

Carry forward and set off of losess in case of certain compa nies.

'79. (1) Notwithstanding anything contained in this Chapter, where a change in shareholding has taken place during the previous year in the case of a company, not being a company in which the public are substantially interested, no loss incurred in any year prior to the previous year shall be carried forward and set off against the income of the previous year, unless on the last day of the previous year, the shares of the company carrying not less than fifty-one per cent. of the votingThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 102 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) power were beneficially held by persons who beneficially held shares of the company carrying not less than fifty-one per cent. of the voting power on the last day of the year or years in which the loss was incurred:

Provided that even if the said condition is not satisfied in case of an eligible start up as referred to in section 80-IAC, the loss incurred in any year prior to the previous year shall be allowed to be carried forward and set off against the income of the previous year if all the shareholders of such company who held shares carrying voting power on the last day of the year or years in which the loss was incurred, continue to hold those shares on the last day of such previous year and such loss has been incurred during the period of seven years beginning from the year in which such company is incorporated.

(2) Nothing contained in sub-section (1) shall apply,––

(a) to a case where a change in the said voting power and shareholding takes place in a previous year consequent upon the death of a shareholder or on account of transfer of shares by way of gift to any relative of the shareholder making such gift;

(b) to any change in the shareholding of an Indian company which is a subsidiary of a foreign company as a result of amalgamation or demerger of a foreign company subject to the condition that fifty-one per cent. shareholders of amalgamating or demerged foreign company continue to be the shareholders of the amalgamated or the resulting foreign company;

31 of 2016.

(c) to a company where a change in the shareholding takes place in a previous year pursuant to a resolution plan approved under the Insolvency and Bankruptcy Code, 2016, after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner;

(d) to a company, and its subsidiary and the subsidiary of such subsidiary, where,––

18 of 2013.

(i) the Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013, has suspended the Board of Directors of such company and has appointed new directors nominated by the Central Government, under section 242 of the said Act; and

18 of 2013.

(ii) a change in shareholding of such company, and its subsidiary and the subsidiary of such subsidiary, has taken place in a previous year pursuant to a resolution plan approved by the Tribunal under section 242 of the Companies Act, 2013 after affording a reasonable opportunity of being heard to the jurisdictional Principal Commissioner or Commissioner.

Explanation.––For the purposes of this section,––

(i) a company shall be a subsidiary of another company, if such other company holds more than half in nominal value of the equity share capital of the company;

(ii) "Tribunal" shall have the meaning assigned to it in clause (90)

18 of 2013.

of section 2 of the Companies Act, 2013.'.

Amendment of section 80C.

23. In section 80C of the Income-tax Act, in sub-section (2), after clause (xxiv), the following clause shall be inserted with effect from the 1st day of April, 2020, namely:—

'(xxv) being an employee of the Central Government, as a contribution to a specified account of the pension scheme referred to in section 80CCD––

(a) for a fixed period of not less than three years; and

(b) which is in accordance with the scheme as may be notified by the Central Government in the Official Gazette for the purposes of this clause.

23 of 2013.

Explanation.—For the purposes of this clause, "specified account" means an additional account referred to in sub-section (3) of section 20 of the Pension Fund Regulatory and Development Authority Act, 2013.'.

Amendment of section 80CCD.

24. In section 80CCD of the Income-tax Act, in sub-section (2), for the words "does not exceed ten per cent. of his salary in the previous year", the words, brackets and letters "does not exceed––

(a) fourteen per cent., where such contribution is made by the

Central Government;

(b) ten per cent., where such contribution is made by any other

employer,

of his salary in the previous year" shall be substituted with effect from the 1st day of April, 2020.

25. After section 80EE of the Income-tax Act, the following sections

shall be inserted with effect from the 1st day of April, 2020, namely:––

Insertion of new sections 80EEA and 80EEB.

Deduction of respect of interest on loan tak en for certain house property.

'80EEA. (1) In computing the total income of an assessee, being an individual not eligible to claim deduction under section 80EE, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of acquisition of a residential house property.

(2) The deduction under sub-section (1) shall not exceed one lakh and fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2020 and subsequent assessment years.

(3) The deduction under sub-section (1) shall be subject to the

following conditions, namely:—

(i) the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2020;

(ii) the stamp duty value of residential house property does

not exceed forty-five lakh rupees;

(iii) the assessee does not own any residential house property

on the date of sanction of loan.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

(5) For the purposes of this section,––

(a) the expression "financial institution" shall have the meaning assigned to it in clause (a) of sub-section (5) of section 80EE;

(b) the expression "stamp duty value" means value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property.

Deduction in respect of purchase of electric vehicle.

80EEB. (1) In computing the total income of an assessee, being an individual, there shall be deducted, in accordance with and subject to the provisions of this section, interest payable on loan taken by him from any financial institution for the purpose of purchase of an electric vehicle.

(2) The deduction under sub-section (1) shall not exceed one lakh and fifty thousand rupees and shall be allowed in computing the total income of the individual for the assessment year beginning on the 1st day of April, 2020 and subsequent assessment years.

(3) The deduction under sub-section (1) shall be subject to the condition that the loan has been sanctioned by the financial institution during the period beginning on the 1st day of April, 2019 and ending on the 31st day of March, 2023.

(4) Where a deduction under this section is allowed for any interest referred to in sub-section (1), deduction shall not be allowed in respect of such interest under any other provision of this Act for the same or any other assessment year.

(5) For the purposes of this section,––

(a) "electric vehicle" means a vehicle which is powered exclusively by an electric motor whose traction energy is supplied exclusively by traction battery installed in the vehicle and has such electric regenerative braking system, which during braking provides for the conversion of vehicle kinetic energy into electrical energy;

10 of 1949.

(b) "financial institution" means a banking company to which the Banking Regulation Act, 1949 applies, or any bank or banking institution referred to in section 51 of that Act and includes any deposit taking non- banking financial company or a systemically important non-deposit taking non-banking financial company as defined in clauses (e) and (g) of Explanation 4 to section 43B.'.

26. In section 80-IBA of the Income-tax Act, with effect from the 1st Amendment of section 80-IBA. day of April, 2020,—

(A) in sub-section (2), after clause (i), the following proviso shall be inserted, namely:—

'Provided that for the projects approved on or after the 1st day of September, 2019, the provisions of this sub-section shall have effect as if for clauses (d) to (i), the following clauses had been substituted, namely :––

"(d) the project is on a plot of land measuring not less than—

(i) one thousand square metres, where such project is located within the metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, GreaterThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 105 Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region); or

(ii) two thousand square metres, where such project is

located in any other place;

(e) the project is the only housing project on the plot of land as

specified in clause (d);

(f) the carpet area of the residential unit comprised in the housing

project does not exceed—

(i) sixty square metres, where such project is located within the metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region); or

(ii) ninety square metres, where such project is located

in any other place;

(g) the stamp duty value of a residential unit in the housing project

does not exceed forty-five lakh rupees;

(h) where a residential unit in the housing project is allotted to an individual, no other residential unit in the housing project shall be allotted to the individual or the spouse or the minor children of such individual;

(i) the project utilises—

(I) not less than ninety per cent. of the floor area ratio permissible in respect of the plot of land under the rules to be made by the Central Government or the State Government or the local authority, as the case may be, where such project is located within the metropolitan cities of Bengaluru, Chennai, Delhi National Capital Region (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad), Hyderabad, Kolkata and Mumbai (whole of Mumbai Metropolitan Region); or

(II) not less than eighty per cent. of such floor area ratio where such project is located in any place other than the place referred to in sub-clause (I); and

(j) the assessee maintains separate books of account in respect of

the housing project.".';

(B) in sub-section (6), after clause (e), the following clause shall be

inserted, namely:—

'(f) "stamp duty value" means the value adopted or assessed or assessable by any authority of the Central Government or a State Government for the purpose of payment of stamp duty in respect of an immovable property.'.

Amendment of section 80JJAA.

27. In section 80JJAA of the Income-tax Act, in the Explanation, in clause (i), in the first proviso, in clause (b), for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of April, 2020.

28. In section 80LA of the Income-tax Act, with effect from the 1st day Amendment of section 80LA.

of April, 2020,—

(i) for sub-section (1), the following sub-sections shall be substituted, namely:—

"(1) Where the gross total income of an assessee, being a scheduled bank, or, any bank incorporated by or under the laws of a country outside India; and having an Offshore Banking Unit in a Special Economic Zone, includes any income referred to in sub- section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to––

(a) one hundred per cent. of such income for five consecutive assessment years beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the Banking

10 of 1949.

15 of 1992.

Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act,1992 or any other relevant law was obtained, and thereafter;

(b) fifty per cent. of such income for five consecutive assessment years.

(1A) Where the gross total income of an assessee, being a Unit of an International Financial Services Centre, includes any income referred to in sub-section (2), there shall be allowed, in accordance with and subject to the provisions of this section, a deduction from such income, of an amount equal to one hundred per cent. of such income for any ten consecutive assessment years, at the option of the assessee, out of fifteen years, beginning with the assessment year relevant to the previous year in which the permission, under clause (a) of sub-section (1) of section 23 of the

10 of 1949.

15 of 1992.

Banking Regulation Act, 1949 or permission or registration under the Securities and Exchange Board of India Act,1992 or any other relevant law was obtained.";

(ii) in sub-section (2), in the opening portion, for the word, brackets and figure "sub-section (1)", the words, brackets, figures and letter "sub- section (1) and sub-section (1A)" shall be substituted.

29. In section 92CD of the Income-tax Act, with effect from the 1st day Amendment of section 92CD.

of September, 2019,––

(a) in sub-section (3), for the words "proceed to assess or reassess or recompute the total income of the relevant assessment year", the words "pass an order modifying the total income of the relevant assessment year determined in such assessment or reassessment, as the case may be," shall be substituted;

(b) in sub-section (5), in clause (a), the words "of assessment, reassessment or recomputation of total income" shall be omitted.

30. In section 92CE of the Income-tax Act,––

Amendment of section 92CE.

(a) in sub-section (1),––

(I) in clause (iii), for the word, figures and letters "section 92CC", the words, figures and letters "section 92CC, on or after the 1st day of April, 2017," shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(II) in the proviso, in clause (i), for the words "one crore rupees; and", the words "one crore rupees; or" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(III) after the proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2018, namely:—

"Provided further that no refund of taxes paid, if any, by virtue of provisions of this sub-section as they stood immediately before their amendment by the Finance (No.2) Act, 2019 shall be claimed and allowed.";

(b) in sub-section (2),––

(i) for the words "the excess money which", the words "the excess money or part thereof, as the case may be, which" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2018;

(ii) the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2018, namely:––

"Explanation.––For the removal of doubts, it is hereby clarified that the excess money or part thereof may be repatriated from any of the associated enterprises of the assessee which is not a resident in India.";

(c) after sub-section (2), the following sub-sections shall be inserted

with effect from the 1st day of September, 2019, namely:––

"(2A) Without prejudice to the provisions of sub-section (2), where the excess money or part thereof has not been repatriated within the prescribed time, the assessee may, at his option, pay additional income-tax at the rate of eighteen per cent. on such excess money or part thereof, as the case may be.

(2B) The tax on the excess money or part thereof so paid by the assessee under sub-section (2A) shall be treated as the final payment of tax in respect of the excess money or part thereof not repatriated and no further credit therefor shall be claimed by the assessee or by any other person in respect of the amount of tax so paid.

(2C) No deduction under any other provision of this Act shall be allowed to the assessee in respect of the amount on which tax has been paid in accordance with the provisions of sub-section (2A).

(2D) Where the additional income-tax referred to in sub-section (2A) is paid by the assessee, he shall not be required to make secondary adjustment under sub-section (1) and compute interest under sub-section (2) from the date of payment of such tax.".

31. In the Income-tax Act, for section 92D, the following section shall Substitution of section 92D.

be substituted with effect from the 1st day of April, 2020, namely:––

'92D. (1) Every person,––

Ma intenance, keeping and furnishing of information a nd document by certain persons.

(i) who has entered into an international transaction or specified domestic transaction shall keep and maintain such information and document in respect thereof as may be prescribed;

(ii) being a constituent entity of an international group, shall keep and maintain such information and document in respect of an international group as may be prescribed.

Explanation.––For the purposes of this clause,––

(A) "constituent entity" shall have the meaning assigned to it in clause (d) of sub-section (9) of section 286;

(B) "international group" shall have the meaning assigned to it in clause (g) of sub-section (9) of section 286.

(2) Without prejudice to the provisions contained in sub-section (1), the Board may prescribe the period for which the information and document shall be kept and maintained under the said sub-section.

(3) The Assessing Officer or the Commissioner (Appeals) may, in the course of any proceeding under this Act, require any person referred to in clause (i) of sub-section (1) to furnish any information or document referred therein, within a period of thirty days from the date of receipt of a notice issued in this regard :

Provided that the Assessing Officer or the Commissioner (Appeals) may, on an application made by such person, extend the period of thirty days by a further period not exceeding thirty days.

(4) The person referred to in clause (ii) of sub-section (1) shall furnish the information and document referred therein to the authority prescribed under sub-section (1) of section 286, in such manner, on or before such date, as may be prescribed.'.

Amendment of section 111A.

32. In section 111A of the Income-tax Act, in the Explanation, in clause (a), for the words, brackets and figures "the Explanation to clause (38) of section 10", the words, brackets, letters and figures "clause (a) of the Explanation to section 112A" shall be substituted with effect from the 1st day of April, 2020.

Amendment of section 115A.

33. In section 115A of the Income-tax Act, in sub-section (4), after clause (b), the following proviso shall be inserted with effect from the 1st day of April, 2020, namely:––

"Provided that nothing contained in this sub-section shall apply to a deduction allowed to a Unit of an International Financial Services Centre under section 80LA.".

Amendment of section 115JB.

34. In section 115JB of the Income-tax Act, in sub-section (2), in Explanation 1, in the long line, for clause (iih), the following clause shall be substituted with effect from the 1st day of April, 2020, namely:—

'(iih) the aggregate amount of unabsorbed depreciation and loss

brought forward in case of a—

18 of 2013.

(A) company, and its subsidiary and the subsidiary of such subsidiary, where, the Tribunal, on an application moved by the Central Government under section 241 of the Companies Act, 2013 has suspended the Board of Directors of such company and has appointed new directors who are nominated by the Central Government under section 242 of the said Act;

31 of 2016.

(B) company against whom an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016.

Explanation.––For the purposes of this clause,—

31 of 2016.

(i) "Adjudicating Authority" shall have the meaning assigned to it in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016;

(ii) "Tribunal" shall have the meaning assigned to it in clause (90)

18 of 2013.

of section 2 of the Companies Act, 2013;

(iii) a company shall be a subsidiary of another company, if such other company holds more than half in the nominal value of equity share capital of the company;

(iv) "loss" shall not include depreciation; or'.

Amendment of section 115-O.

35. In section 115-O of the Income-tax Act, in sub-section (8), for the words "out of its current income", the words "out of its current income or income accumulated as a unit of International Financial Services Centre after the 1st day of April, 2017" shall be substituted with effect from the 1st day of September, 2019.

Amendment of section 115QA.

36. In section 115QA of the Income-tax Act, in sub-section (1), the brackets and words "(not being shares listed on a recognised stock exchange)" shall be omitted with effect from the 5th day of July, 2019.

37. In section 115R of the Income-tax Act, in sub-section (2), with Amendment of section 115R.

effect from the 1st day of September, 2019,—

(A) after the second proviso, before the Explanation, the following

proviso shall be inserted, namely:—

"Provided also that no additional income-tax shall be chargeable in respect of any amount of income distributed on or after the 1st day of September, 2019 by a specified Mutual Fund, out of its income derived from transactions made on a recognised stock exchange located in any International Financial Services Centre and where the consideration for such transaction is paid or payable in convertible foreign exchange.";

(B) in the Explanation,—

(a) after clause (i), the following clause shall be inserted, namely:––

42 of 1999.

'(ia) "convertible foreign exchange" means foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purposes of the Foreign Exchange Management Act, 1999 and the rules made thereunder;';

(b) after clause (ii), the following clauses shall be inserted, namely:—

28 of 2005.

'(iii) "International Financial Services Centre" shall have the meaning assigned to it in clause (q) of section 2 of the Special Economic Zones Act, 2005;

(iv) "recognised stock exchange" shall have the meaning assigned to it in clause (ii) of Explanation 1 to clause (5) of section 43;

(v) "specified Mutual Fund" means a Mutual Fund specified under clause (23D) of section 10—

(a) located in any International Financial Services Centre;

(b) of which all the units are held by non-residents;

(vi) "unit" means beneficial interest of an investor in the fund;'.

38. In section 115UB of the Income-tax Act, in sub-section (2), with Amendment of section 115UB.

effect from the 1st day of April, 2020,––

(a) for clauses (i) and (ii), the following clauses shall be substituted, namely:––

(i) out of such loss, the loss arising to the investment fund as a result of the computation under the head "Profit and gains of business or profession", if any, shall be,––

(a) allowed to be carried forward and it shall be set off by the investment fund in accordance with the provisions of Chapter VI; and

(b) ignored for the purposes of sub-section (1);

(ii) the loss other than the loss referred to in clause (i), if any, shall also be ignored for the purposes of sub-section (1), if such loss has arisen in respect of a unit which has not been held by the unit holder for a period of atleast twelve months.';

(b) after sub-section (2), the following sub-section shall be inserted, namely:––

'(2A) The loss other than the loss under the head "Profit and gains of business or profession", if any, accumulated at the level of investment fund as on the 31st day of March, 2019, shall be,––

(i) deemed to be the loss of a unit holder who held the unit on the 31st day of March, 2019 in respect of the investments made by him in the investment fund, in the same manner as provided in sub-section (1); andThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 111 (ii) allowed to be carried forward by such unit holder for the remaining period calculated from the year in which the loss had occurred for the first time taking that year as the first year and shall be set off by him in accordance with the provisions of Chapter VI:

Provided that the loss so deemed under this sub-section shall not be available to the investment fund on or after the 1st day of April, 2019.'.

39. In section 139 of the Income-tax Act, in sub-section (1), with effect Amendment of section 139.

from the 1st day of April, 2020,––

(a) in the sixth proviso, after the word, figures and letters "section 10BA", the words, figures and letters "or section 54 or section 54B or section 54D or section 54EC or section 54F or section 54G or section 54GA or section 54GB" shall be inserted;

(b) after the sixth proviso, and before Explanation 1 the following

proviso shall be inserted, namely:––

"Provided also that a person referred to in clause (b), who is not required to furnish a return under this sub-section, and who during the previous year––

(i) has deposited an amount or aggregate of the amounts exceeding one crore rupees in one or more current accounts maintained with a banking company or a co-operative bank; or

(ii) has incurred expenditure of an amount or aggregate of the amounts exceeding two lakh rupees for himself or any other person for travel to a foreign country; or

(iii) has incurred expenditure of an amount or aggregate of the amounts exceeding one lakh rupees towards consumption of electricity; or

(iv) fulfils such other conditions as may be prescribed,

shall furnish a return of his income on or before the due date in such form and verified in such manner and setting forth such other particulars, as may be prescribed.";

(c) after Explanation 5, the following Explanation shall be inserted,

namely:––

'Explanation 6.—For the purposes of this sub-section,—

(a) "banking company" shall have the meaning assigned

to it in clause (i) of the Explanation to section 269SS;

(b) "co-operative bank" shall have the meaning assigned

to it in clause (ii) of the Explanation to section 269SS.'.

40. In section 139A of the Income-tax Act, with effect from the 1st day Amendment of section 139A.

of September, 2019,––

(i) in sub-section (1), in clause (vi), for the words, brackets and figure "on behalf of the person referred to in clause (v)", the following shall be substituted, namely:––

"on behalf of the person referred to in clause (v); orThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 112 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) (vii) who intends to enter into such transaction as may be prescribed by the Board in the interest of revenue,";

(ii) after sub-section (5D), the following sub-section shall be inserted, namely:—

"(5E) Notwithstanding anything contained in this Act, every person who is required to furnish or intimate or quote his permanent account number under this Act, and who,––

(a) has not been allotted a permanent account number but possesses the Aadhaar number, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number, and such person shall be allotted a permanent account number in such manner as may be prescribed;

(b) has been allotted a permanent account number, and who has intimated his Aadhaar number in accordance with provisions of sub-section (2) of section 139AA, may furnish or intimate or quote his Aadhaar number in lieu of the permanent account number.";

(iii) in sub-section (6), for the words "the General Index Register Number", the words "the General Index Register Number or the Aadhaar number, as the case may be," shall be substituted;

(iv) after sub-section (6), the following sub-sections shall be inserted, namely:—

"(6A) Every person entering into such transaction, as may be prescribed, shall quote his permanent account number or Aadhaar number, as the case may be, in the documents pertaining to such transactions and also authenticate such permanent account number or Aadhaar number, in such manner as may be prescribed.

(6B) Every person receiving any document relating to the transactions referred to in sub-section (6A), shall ensure that permanent account number or Aadhaar number, as the case may be, has been duly quoted in such document and also ensure that such permanent account number or Aadhaar number is so authenticated.";

(v) in sub-section (8), in clauses (b) and (f), for the words "the General Index Register Number", the words "the General Index Register Number or the Aadhaar number, as the case may be," shall be substituted;

(vi) in the Explanation, for clause (a), the following clauses shall be substituted, namely:––

18 of 2016.

'(a) "Aadhaar number" shall have the meaning assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016;

(aa) "Assessing Officer" includes an income-tax authority who is assigned the duty of allotting permanent account numbers;

(ab) "authentication" means the process by which the permanent account number or Aadhaar number alongwith demographic information or biometric information of an individual is submitted to the income-tax authority or such other authority or agency as may be prescribed for its verification and such authority or agency verifies the correctness, or the lack thereof, on the basis of information available with it;'.

Amendment of section 139AA.

41. In section 139AA of the Income-tax Act, in sub-section (2), in the proviso, for the words "deemed to be invalid and the other provisions of this Act shall apply, as if the person had not applied for allotment of permanent account number", the words "made inoperative after the date so notified in such manner as may be prescribed" shall be substituted with effect from the 1st day of September, 2019.

42. In section 140A of the Income-tax Act,––

Amendment of section 140A.

(i) in sub-section (1), after clause (ii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

"(iia) any relief of tax claimed under section 89;";

(ii) in sub-section (1A), in clause (i), after sub-clause (b), the following sub-clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

"(ba) any relief of tax claimed under section 89;";

(iii) in sub-section (1B), in the Explanation, after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

"(ia) any relief of tax claimed under section 89;".

Amendment of section 143.

43. In section 143 of the Income-tax Act, in sub-section (1), in clause (c), after the words "any advance tax paid,", the words and figures "any relief allowable under section 89," shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007.

Amendment of section 194DA.

44. In section 194DA of the Income-tax Act, for the words "one per cent.", the words "five per cent. on the amount of income comprised therein" shall be substituted with effect from the 1st day of September, 2019.

Amendment of section 1 94-IA.

45. In section 194-IA of the Income-tax Act, in the Explanation, after clause (a), the following clause shall be inserted with effect from the 1st day of September, 2019,––

'(aa) "consideration for transfer of any immovable property" shall include all charges of the nature of club membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other charges of similar nature, which are incidental to transfer of the immovable property;'.

46. After section 194LD of the Income-tax Act, the following sections shall be inserted with effect from the 1st day of September, 2019, namely:––

Insertion of new section 194M and 194N '194M. (1) Any person, being an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per the provisions of section 194C, section 194H or section 194J) responsible

Pa yment of certain sums by certain individuals or Hindu undivided family.

for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract, by way of commission (not being insurance commission referred to in section 194D) or brokerage or by way of fees for professional services during the financial year, shall, at the time of credit of such sum or at the time of payment of such sum in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to five per cent. of such as income-tax thereon:

Provided that no such deduction under this section shall be made if such sum or, as the case may be, aggregate of such sums, credited or paid to a resident during a financial year does not exceed fifty lakh rupees.

(2) The provisions of section 203A shall not apply to a person required to deduct tax in accordance with the provisions of this section.

Explanation.––For the purposes of this section,––

(a) "contract" shall have the meaning assigned to it in clause (iii) of the Explanation to section 194C;

(b) "commission or brokerage" shall have the meaning assigned to it in clause (i) of the Explanation to section 194H;

(c) "professional services" shall have the meaning assigned to it in clause (a) of the Explanation to section 194J;

(d) "work" shall have the meaning assigned to it in clause (iv) of the Explanation to section 194C.

194N. Every person, being,––

Pa yment of certain amounts in cash.

10 of 1949.

(i) a banking company to which the Banking Regulation Act, 1949 applies (including any bank or banking institution referred to in section 51 of that Act);

(ii) a co-operative society engaged in carrying on the business of banking; or

(iii) a post office,

who is responsible for paying any sum, or, as the case may be, aggregate of sums, in cash, in excess of one crore rupees during the previous year, to any person (hereinreferred to as the recipient) from one or more accounts maintained by the recipient with it shall, at the time of payment of such sum, deducts an amount equal to two per cent. of sum exceeding one crore rupees, as income- tax:

Provided that nothing contained in this sub-section shall apply to any payment made to,––

(i) the Government;

(ii) any banking company or co-operative society engaged in carrying on the business of banking or a post office;

2 of 1994.

(iii) any business correspondent of a banking company or co- operative society engaged in carrying on the business of banking, in accordance with the guidelines issued in this regard by the Reserve Bank of India under the Reserve Bank of India Act, 1934;

51 of 2007.

(iv) any white label automated teller machine operator of a banking company or co-operative society engaged in carrying on the business of banking, in accordance with the authorisation issued by the Reserve Bank of India under the Payment and Settlement Systems Act, 2007;

(v) such other person or class of persons, which the Central Government may, by notification in the Official Gazette, specify in consultation with the Reserve Bank of India.'.

47. In section 195 of the Income-tax Act, with effect from the 1st day Amendment of section 195.

of November, 2019,––

(a) in sub-section (2), for the words "to the Assessing Officer to determine, by general or special order", the words "in such form and manner to the Assessing Officer, to determine in such manner, as may be prescribed" shall be substituted;

(b) in sub-section (7), for the words "to the Assessing Officer to determine, by general or special order", the words "in such form and manner to the Assessing Officer, to determine in such manner, as may be prescribed" shall be substituted.

Amendment of section 197.

48. In section 197 of the Income-tax Act, in sub-section (1), for the figures and letters "194LBC", the figures and letters "194LBC, 194M" shall be substituted with effect from the 1st day of September, 2019.

Amendment of section 198.

49. In section 198 of the Income-tax Act, after the first proviso, the following proviso shall be inserted with effect from the 1st day of September, 2019, namely:—

''Provided further that the sum deducted in accordance with the provisions of section 194N for the purpose of computing the income of an assessee, shall be deemed to be income received.''.

50. In section 201 of the Income-tax Act, with effect from the 1st day Amendment of section 201.

of September, 2019,––

(a) in sub-section (1), in the first proviso, for the word "resident"

wherever it occurs, the word "payee" shall be substituted;

(b) in sub-section (1A), in the proviso, for the word "resident"

wherever it occurs, the word "payee" shall be substituted;

(c) in sub-section (3), after the words "credit is given", the words, brackets and figures "or two years from the end of the financial year in which the correction statement is delivered under the proviso to sub- section (3) of section 200, whichever is later" shall be inserted.

51. For section 206A of the Income-tax Act, the following section shall Amendment of section 206-A.

be substituted with effect from the 1st day of September, 2019, namely:––

Furnishing of statement in respect of pa yment of a ny income to residents without deduction of tax.

"206A. (1) Any banking company or co-operative society or public company referred to in the proviso to clause (i) of sub-section (3) of section 194A responsible for paying to a resident any income not exceeding forty thousand rupees, where the payer is a banking company or a co- operative society, and five thousand rupees in any other case by way of interest (other than interest on securities), shall prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and deliver or cause to be delivered the said statement to the prescribed income-tax authority or to the person authorised by such authority.

(2) The Board may require any person, other than a person mentioned in subsection (1), responsible for paying to a resident any income liable for deduction of tax at source under Chapter XVII, to prepare such statement in such form, containing such particulars, for such period, verified in such manner and within such time, as may be prescribed, and deliver or cause to be delivered the said statement to the income-tax authority or the authorised person referred to in sub-section (1).

(3) The person responsible for paying to a resident any income referred to in sub-section (1) or sub-section (2) may also deliver to the income-tax authority referred to in sub-section (1), a correction statement for rectification of any mistake or to add, delete or update the information furnished in the statement delivered under the said sub-sections in such form and verified in such manner, as may be prescribed.".

52. In section 228A of the Income-tax Act, with effect from the 1st day Amendment of section 228A. of September, 2019,––

(a) in sub-section (1),––

(i) for the words "corresponding law from", the words "corresponding law from a resident, or" shall be substituted;

(ii) for the words "any Tax Recovery Officer", the words "any Tax Recovery Officer having jurisdiction over the resident, or" shall be substituted;

(b) in sub-section (2),––

(i) for the words "has property in a country outside India", the words " is a resident of a country" shall be substituted;

(ii) for the words "forward to the Board", the words "or has any property in that country, forward to the Board" shall be substituted.

Amendment of section 234A.

53. In section 234A of the Income-tax Act, in sub-section (1), in the long line, after clause (ii), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:–– "(iia) any relief of tax allowed under section 89;".

Amendment of section 234B.

54. In section 234B of the Income-tax Act, in sub-section (1), in Explanation 1, after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

"(ia) any relief of tax allowed under section 89;".

Amendment of section 234C.

55. In section 234C of the Income-tax Act, in sub-section (1), in the Explanation, after clause (i), the following clause shall be inserted and shall be deemed to have been inserted with effect from the 1st day of April, 2007, namely:––

"(ia) any relief of tax allowed under section 89;".

56. In section 239 of the Income-tax Act, with effect from the 1st day Amendment of section 239.

of September, 2019,––

(a) in sub-section (1), for the words "in the prescribed form and verified in the prescribed manner", the words and figures "by furnishing return in accordance with the provisions of section 139" shall be substituted;

(b) sub-section (2) shall be omitted.

Amendment of section 246A.

57. In section 246A of the Income-tax Act, in sub-section (1), in clause (bb), for the words "of assessment or reassessment", the word "made" shall be substituted with effect from the 1st day of September, 2019.

Amendment of section 269SS.

58. In section 269SS of the Income-tax Act, in the opening portion, for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of September, 2019.

Amendment of section 269ST.

59. In section 269ST of the Income-tax Act, in the long line, for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of September, 2019.

60. After section 269ST of the Income-tax Act, the following section Insertion of new section 269SU.

shall be inserted with effect from the 1st day of November, 2019, namely:—

Acceptance of pa yment throu gh prescribed electronic modes.

"269SU. Every person, carrying on business, shall provide facility for accepting payment through prescribed electronic modes, in addition to the facility for other electronic modes, of payment, if any, being provided by such person, if his total sales, turnover or gross receipts, as the case may be, in business exceeds fifty crore rupees during the immediately preceding previous year.".

Amendment of section 269T.

61. In section 269T of the Income-tax Act, in the opening portion, for the words "bank account", the words "bank account or through such other electronic mode as may be prescribed" shall be substituted with effect from the 1st day of September, 2019.

62. In section 270A of the Income-tax Act,––

Amendment of section 270A.

(A) for the words "no return of income has been furnished" at both the places where they occur, the words and figures "no return of income has been furnished or where return has been furnished for the first time under section 148" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017;

(B) in sub-section (2), in clause (e), for the words "no return of income has been filed", the words and figures "no return of income has been furnished or where return has been furnished for the first time under section 148" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017;

(C) in sub-section (3), in clause (i), in sub-clause (b), for the words "no return has been furnished", the words and figures "no return of income has been furnished or where return has been furnished for the first time under section 148" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2017.

63. After section 271DA of the Income-tax Act, the following section Insertion of new section 271DB.

shall be inserted with effect from the 1st day of November, 2019, namely:—

Penalty for failure to comply with provisions of section 269SU.

"271DB. (1) If a person who is required to provide facility for accepting payment through the prescribed electronic modes of payment referred to in section 269SU, fails to provide such facility, he shall be liable to pay, by way of penalty, a sum of five thousand rupees, for every day during which such failure continues:

Provided that no such penalty shall be imposable if such person

proves that there were good and sufficient reasons for such failure.

(2) Any penalty imposable under sub-section (1) shall be imposed by the Joint Commissioner of Income-tax.".

Amendment of section 271FAA.

64. In section 271FAA of the Income-tax Act, in the opening portion, the words, brackets and letter "clause (k) of" shall be omitted with effect from the 1st day of September, 2019.

65. In section 272B of the Income-tax Act, with effect from the 1st day Amendment of section 272B.

of September, 2019,––

(a) in sub-section (2),––

(i) for the words "permanent account number", the words "permanent account number or Aadhaar number, as the case may be," shall be substituted;

(ii) for the words "ten thousand rupees", the words "ten thousand rupees for each such default" shall be substituted;

(b) after sub-section (2), the following sub-sections shall be inserted, namely:—

"(2A) If a person, who is required to quote his permanent account number or Aadhaar number, as the case may be, in documents referred to in sub-section (6A) of section 139A or authenticate such number in accordance with the provisions of the said sub-section, fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.

(2B) If a person, who is required to ensure that the permanent account number or the Aadhaar number, as the case may be, has been,––

(i) duly quoted in the documents relating to transactions referred to in clause (c) of sub-section (5) or in sub-section (6A) of section 139A; or

(ii) duly authenticated in respect of transactions referred to under sub-section (6A) of that section,

fails to do so, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees for each such default.";

(c) in sub-section (3), for the word, brackets and figure "sub- section (2)", the words, brackets, figures and letters "sub-section (2) or sub-section (2A) or sub-section (2B)" shall be substituted.

Amendment of section 276CC.

66. In section 276CC of the Income-tax Act, in the proviso, in clause (ii), for sub-clause (b), the following sub-clause shall be substituted with effect from the 1st day of April, 2020, namely:––

"(b) the tax payable by such person, not being a company, on the total income determined on regular assessment, as reduced by the advance tax or self-assessment tax, if any, paid before the expiry of the assessment year, and any tax deducted or collected at source, does not exceed ten thousand rupees.".

67. In section 285BA of the Income-tax Act, with effect from the 1st Amendment of section 285BA.

day of September, 2019,––

(i) in sub-section (1), for clause (k), the following clauses shall be

substituted, namely:––

"(k) a prescribed reporting financial institution; or

(l) a person, other than those referred to in clauses (a) to (k),

as may be prescribed,";

(ii) in sub-section (3), the second proviso shall be omitted;

(iii) in sub-section (4), for the words "such statement shall be treated as an invalid statement and the provisions of this Act shall apply as if such person had failed to furnish the statement", the words "the provisions of this Act shall apply as if such person had furnished inaccurate information in the statement" shall be substituted.

Amendment of section 286.

68. In section 286 of the Income-tax Act, in sub-section (9), in clause (a), in sub-clause (i), the words "or alternate reporting entity" shall be omitted and shall be deemed to have been omitted with effect from the 1st day of April, 2017.

69. In the Second Schedule to the Income-tax Act, in Part III, in rule

68B, in sub-rule (1), with effect from the 1st day of September, 2019,––

Amendment of rule 68B of Second Schedule.

(a) for the words "three years'', the words "seven years" shall be

substituted;

(b) in the proviso, for the word "Provided", the words "Provided

further" shall be substituted;

(c) before the proviso as so amended, the following proviso shall

be inserted, namely:—

"Provided that the Board may, for reasons to be recorded in writing, extend the aforesaid period for a further period not exceeding three years:".

CHAPTER IV

INDIRECT TAXES

Customs

52 of 1962.

Amendment of section 41.

70. In section 41 of the Customs Act, 1962 (hereinafter referred to as the Customs Act), in sub-section (1), for the portion beginning with the words "The person-in-charge of a conveyance", and ending with the words "not exceeding fifty thousand rupees", the following shall be substituted, namely:—

"The person-in-charge of a conveyance carrying export goods or imported goods or any other person as may be specified by the Central Government, by notification, shall, before departure of the conveyance from a customs station, deliver to the proper officer in the case of a vessel or aircraft, a departure manifest or an export manifest by presenting electronically, and in the case of a vehicle, an export report, in such form and manner as may be prescribed and in case, such person-in-charge or other person fails to deliver the departure manifest or export manifest or the export report or any part thereof within such time, and the proper officer is satisfied that there is no sufficient cause for such delay, such person-in-charge or other person shall be liable to pay penalty not exceeding fifty thousand rupees".

71. After Chapter XIIA of the Customs Act, the following Chapter shall Insertion of New Chapter XIIB.

be inserted, namely:––

'CHAPTER XIIB

VERIFICATION OF IDENTITY AND COMPLIANCE

Verifica tion of identity and compliance thereof.

99B. (1) The proper officer, authorised in this behalf by the Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, may, for the purposes of ascertaining compliance of the provisions of this Act or any other law for the time being in force, require a person, whose verification he considers necessary for protecting the interest of revenue or for preventing smuggling, to do all or any of the following, namely:––

(a) undergo authentication, or furnish proof of possession of Aadhaar number, in such manner and within such time as may be prescribed;

(b) submit such other document or information, in such manner and within such time as may be prescribed:

Provided that where such person has not been assigned the Aadhaar number, or where so assigned, but authentication of such person has failed due to technical reasons or for reasons beyond his control, then, he shall be provided an opportunity to furnish such other alternative and viable means of identification in such form and manner and within such time as may be prescribed.

(2) The provisions of sub-section (1) shall not apply to such person or class of persons as may be prescribed.

(3) Notwithstanding anything contained in any other provisions of this Act, where the Principal Commissioner of Customs or the Commissioner of Customs comes to the conclusion, based on reasons to be recorded in writing, that the person referred to in sub-section (1) has–

(i) failed to comply with the requirements of the said sub- section or submitted incorrect documents or information under the said sub-section, he may, by order, suspend––

(a) clearance of imported goods or export goods;

(b) sanction of refund;

(c) sanction of drawback;

(d) exemption from duty;

(e) licence or registration granted under this Act; or

(f) any benefit, monetary or otherwise, arising out of import or export,

relating to such person, subject to such conditions as may be prescribed;

(ii) failed authentication as required under the said sub-section, he may, by order, direct that such person shall not have the benefit of any of the items specified in sub-clauses (a) to (f) of clause (i).

(4) The order of suspension under sub-section (3) shall remain in force until the person concerned complies with the requirements of sub- section (1) or furnishes correct document or information thereunder.

18 of 2016.

Explanation.—For the purposes of this section, the expression "Aadhaar number" shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.'.

72. In section 103 of the Customs Act,—

Amendment of section 103.

(i) for sub-section (1), the following sub-section shall be substituted,

namely:–

"(1) Where the proper officer has reason to believe that any person referred to in sub-section (2) of section 100 has any goods liable to confiscation secreted inside his body, he may detain such person and shall,––

(a) with the prior approval of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as soon as practicable, screen or scan such person using such equipment as may be available at the customs station, but without prejudice to any of the rights available to such person under any other law for the time being in force, including his consent for such screening or scanning, and forward a report of such screening or scanning to the nearest magistrate if such goods appear to be secreted inside his body; or

(b) produce him without unnecessary delay before the

nearest magistrate.";

(ii) in sub-section (6), after the words "Where on receipt of a report", the words, brackets, letter and figure "from the proper officer under clause (a) of sub-section (1) or" shall be inserted.

73. In section 104 of the Customs Act, ––

Amendment of section 104.

(i) in sub-section (1), the words "in India or within the Indian

customs waters" shall be omitted;

(ii) in sub-section (4),––

(A) in clause (b), for the word "rupees,", the words "rupees;

or" shall be substituted;

(B) after clause (b), the following clauses shall be inserted,

namely:—

"(c) fraudulently availing of or attempting to avail drawback or any exemption from duty provided under this Act, where the amount of drawback or exemption from duty exceeds fifty lakh rupees; or

22 of 1992.

(d) fraudulently obtaining an instrument for the purposes of this Act or the Foreign Trade (Development and Regulation) Act, 1992, and such instrument is utilised under this Act, where duty relatable to such utilisation of instrument exceeds fifty lakh rupees,";

(iii) in sub-section (6),––

(A) in clause (d), for the word "rupees,", the words "rupees;

or" shall be substituted;

(B) after clause (d), the following clause shall be inserted, namely:—

22 of 1992.

"(e) fraudulently obtaining an instrument for the purposes of this Act or the Foreign Trade (Development and Regulation) Act, 1992, and such instrument is utilised under this Act, where duty relatable to such utilisation of instrument exceeds fifty lakh rupees,";

(iv) after sub-section (7), the following Explanation shall be inserted, namely:—

'Explanation.––For the purposes of this section, the expression "instrument" shall have the same meaning as assigned to it in Explanation 1 to section 28AAA.'.

74. In section 110 of the Customs Act,––

Amendment of section 110.

(i) in sub-section (1), for the proviso, the following provisos shall be substituted, namely:—

"Provided that where it is not practicable to remove, transport, store or take physical possession of the seized goods for any reason, the proper officer may give custody of the seized goods to the owner of the goods or the beneficial owner or any person holding himself out to be the importer, or any other person from whose custody such goods have been seized, on execution of an undertaking by such person that he shall not remove, part with, or otherwise deal with the goods except with the previous permission of such officer:

Provided further that where it is not practicable to seize any such goods, the proper officer may serve an order on the owner of the goods or the beneficial owner or any person holding himself out to be importer, or any other person from whose custody such goods have been found, directing that such person shall not remove, part with, or otherwise deal with such goods except with the previous permission of such officer.";

(ii) after sub-section (4), the following sub-section shall be inserted, namely:—

"(5) Where the proper officer, during any proceedings under the Act, is of the opinion that for the purposes of protecting the interest of revenue or preventing smuggling, it is necessary so to do, he may, with the approval of the Principal Commissioner of Customs or Commissioner of Customs, by order in writing, provisionally attach any bank account for a period not exceeding six months:

Provided that the Principal Commissioner of Customs or Commissioner of Customs may, for reasons to be recorded in writing, extend such period to a further period not exceeding six months and inform such extension of time to the person whose bank account is provisionally attached, before the expiry of the period so specified.".

75. In section 110A of the Customs Act,—

Amendment of section 110A.

(i) in the marginal heading, after the words ''things seized'', the

words ''or bank account provisionally attached'' shall be inserted;

(ii) after the words "documents or things seized", the words "or

bank account provisionally attached" shall be inserted;

(iii) after the words ''to the owner'', the words ''or the bank

account holder'' shall be inserted.

76. After section 114AA of the Customs Act, the following section shall Insertion of new section 114AB.

be inserted, namely:––

Penalty for obtaining instrument by fraud, etc. '114AB. Where any person has obtained any instrument by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by such person or any other person for discharging duty, the person to whom the instrument was issued shall be liable for penalty not exceeding the face value of such instrument.

Explanation.––For the purposes of this section, the expression "instrument" shall have the same meaning as assigned to it in the Explanation 1 to section 28AAA.'.

77. In section 117 of the Customs Act, for the words "one lakh rupees", Amendment of section 117.

the words "four lakh rupees" shall be substituted.

Amendment of section 125.

78. In section 125 of the Customs Act, in sub-section (1), in the first proviso, for the words "the provisions of this section shall not apply", the words "no such fine shall be imposed" shall be substituted.

79. In section 135 of the Customs Act,––

Amendment of section 135.

(i) in sub-section (1),—

(a) in clause (d), for the words ''export of goods,'', the

words ''export of goods; or'' shall be substituted;

(b) after clause (d), the following clause shall be inserted,

namely:—

"(e) obtains an instrument from any authority by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by such person or any other person,";

(c) in item (i),—

(I) in sub-item (D), for the words ''of rupees,'', the words ''of rupees;or'' shall be substituted;

(II) after sub-item (D), the following sub-item shall be inserted, namely:—

"(E) obtaining an instrument from any authority by fraud, collusion, wilful misstatement or suppression of facts and such instrument has been utilised by any person, where the duty relatable to utilisation of the instrument exceeds fifty lakh rupees,".

(ii) after sub-section (3), the following Explanation shall be inserted, namely:—

'Explanation.––For the purposes of this section, the expression "instrument" shall have the same meaning as assigned to it in the Explanation 1 to section 28AAA.'.

Amendment of section 149.

80. In section 149 of the Customs Act, after the words "custom house to be amended", the words "in such form and manner, within such time, subject to such restrictions and conditions, as may be prescribed" shall be inserted.

81. In section 157 of the Customs Act, in sub-section (2),––

Amendment of section 157.

(i) after clause (k), the following clause shall be inserted, namely:–

"(ka) the manner of authentication and the time limit for such authentication, the document or information to be furnished and the manner of submitting such document or information and the time limit for such submission, the form and the manner of furnishing alternative means of identification and the time limit for furnishing such identification, person or class of persons to be exempted and conditions subject to which suspension may be made, under Chapter XIIB;";

(ii) after clause (m), the following clause shall be inserted, namely:—

"(n) the form and manner, the time limit and the restrictions and conditions for amendment of any document under section 149.".

Amendment of section 158.

82. In section 158 of the Customs Act, in sub-section (2), in clause (ii), for the words "fifty thousand rupees", the words "two lakh rupees" shall be substituted.

52 of 1962.

Amendment of notifica tions issued under sub- section (1) of section 25 of Customs Act, retrospectively.

83. (1) The notifications of the Government of India in the Ministry of Finance (Department of Revenue) numbers G.S.R. 423(E), dated the 1st June, 2011, G.S.R. 499(E), dated the 1st July, 2011 and G.S.R. 185(E), dated the 17th March, 2012 issued by the Central Government under sub-section (1) of section 25 of the Customs Act, 1962, shall stand amended and shall be deemed to have been amended in the manner as specified in the Second Schedule, on and from the date mentioned in column (4) of that Schedule, against each of such notifications, retrospectively, and accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done under the said notifications, shall be deemed to be, and always to have been, for all purposes, as validly and effectively taken or done as if the notifications as amended by this sub-section had been in force at all material times.

(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the notifications referred to in the said sub-section with retrospective effect as if the Central Government had the power to amend the said notifications under sub-section (1) of section 25 of the Customs Act, retrospectively, at all material times.

52 of 1962.

51 of 1975.

84. (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 785(E), dated the 30th June, 2017 issued by the Central Government under sub-section (1) of section 25 of the Customs Act, 1962 and subsection (12) of section 3 of the Customs Tariff Act, 1975, shall stand amended and shall be deemed to have been amended in the manner as specified in the Third Schedule, on and from the date mentioned Amendment of notification issued under sub-section (1) of section 25 of Customs Act and sub-section(12) of Section 3 of Customs Tariff Act, retrospectively.

in column (4) of that Schedule and accordingly, notwithstanding anything contained in any judgment, decree or order of any court, tribunal or other authority, any action taken or anything done or purported to have been taken or done under the said notification, shall be deemed to be, and always to have been, for all purposes, as validly and effectively taken or done as if the notification as amended by this sub-section had been in force at all material times.

(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in the said sub-section with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 25 of the Customs Act and sub-section (12) of section 3 of Customs Tariff Act, retrospectively, at all material times.

52 of 1962.

51 of 1975.

85. The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 1270 (E), dated the 31st December, 2018 amending the notification number G.S.R. 665 (E), dated the 2nd August, 1976, which was issued in exercise of powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 and sub-section (12) of section 3 of the Customs Tariff Act, 1975, shall be deemed to have, and always to have, for all purposes, come into force on and from the 1st day of July, 2017.

Retrospective effect of notifi- cation issued under sub-section (1) of section 25 of Customs Act and sub-section (12) of section 3 of Customs Tariff Act.

Customs Tariff

51 of 1975.

Amendment of section 9.

86. In section 9 of the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), after sub-section (1), the following sub-section shall be inserted, namely:––

"(1A) Where the Central Government, on such inquiry as it considers necessary, is of the opinion that circumvention of countervailing duty imposed under sub-section (1) has taken place, either by altering the description or name or composition of the article on which such duty has been imposed or by import of such article in an unassembled or disassembled form or by changing the country of its origin or export or in any other manner, whereby the countervailing duty so imposed is rendered ineffective, it may extend the countervailing duty to such other article also.".

87. In section 9C of the Customs Tariff Act, for sub-section (1), the Amendment of section 9C.

following sub-section shall be substituted, namely:––

52 of 1962.

"(1) An appeal against the order of determination or review thereof shall lie to the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (hereinafter referred to as the Appellate Tribunal), in respect of the existence, degree and effect of—

(i) any subsidy or dumping in relation to import of any article;

or

(ii) import of any article into India in such increased quantities and under such condition so as to cause or threatening to cause serious injury to domestic industry requiring imposition of safeguard duty in relation to import of that article.".

88. In the Customs Tariff Act, the First Schedule shall––

Amendment of First Schedule.

(a) be amended in the manner specified in the Fourth Schedule;

(b) be also amended in the manner specified in the Fifth Schedule, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint.

51 of 1975.

Validation of modifica tion in classification of certain goods leviable to anti- dumping duty with retros- pective effect.

89. (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 186 (E), dated the 22nd February, 2016 amending the notification number G.S.R. 804 (E), dated the 21st October, 2015, issued in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975 read with rules 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti- dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 shall be deemed to have, and always to have, for all purposes, validly come into force on and from the 21st day of October, 2015.

(2) Refund shall be made of all such anti-dumping duty which has been collected, but which would not have been so collected, if the notification referred to in sub-section (1) been in force at all material times.

(3) An application for refund of anti-dumping duty referred to in sub- section (2) shall be made within a period of six months from the date on which the Finance (No.2) Bill, 2019 receives the assent of the President.

Validation of modifica tion in description of goods with retrospective effect.

51 of 1975.

90. (1) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 665 (E), dated the 5th July, 2016 amending the notification number G.S.R. 285 (E), dated the 8th March, 2016, issued in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, 1975, read with rules 18, 20 and 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 shall be deemed to have, and always to have, for all purposes, come into force on and from the 8th day of March, 2016.

(2) Refund shall be made of all such anti-dumping duty which has been collected, but which would not have been so collected, if the notification referred to in sub-section (1) been in force at all material times.

(3) An application for refund of anti-dumping duty referred to in sub- section (2) shall be made within a period of six months from the date on which the Finance (No.2) Bill, 2019 receives the assent of the President.

Central Excise

1 of 1944.

Amendment of Fourth Schedule.

91. In the Fourth Schedule to the Central Excise Act, 1944, in Chapter 27, for the entry in column (4) occurring against tariff item 2709 20 00, the entry "Re.1 per tonne" shall be substituted.

Central Goods and Services Tax

12 of 2017.

Amendment of section 2.

92. In section 2 of the Central Goods and Services Tax Act, 2017 (hereinafter referred as the Central Goods and Services Tax Act), in clause (4), after the words "the Appellate Authority for Advance Ruling,", the words "the National Appellate Authority for Advance Ruling," shall be inserted.

93. In section 10 of the Central Goods and Services Tax Act,––

Amendment of section 10.

(a) in sub-section (1), after the second proviso, the following Explanation shall be inserted, namely:—

"Explanation.––For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for determining the value of turnover in a State or Union territory.";

(b) in sub-section (2),—

(i) in clause (d), the word ''and'' occuring at the end shall be

omitted;

(ii) in clause (e), for the word ''Council:'', the words ''Council;

and'' shall be substituted;

(iii) after clause (e), the following clause shall be inserted,

namely:––

"(f) he is neither a casual taxable person nor a non-

resident taxable person:";

(c) after sub-section (2), the following sub-section shall be

inserted, namely:––

"(2A) Notwithstanding anything to the contrary contained in this Act, but subject to the provisions of sub-sections (3) and (4) of section 9, a registered person, not eligible to opt to pay tax under sub-section (1) and sub-section (2), whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him under sub-section (1) of section 9, an amount of tax calculated at such rate as may be prescribed, but not exceeding three per cent. of the turnover in State or turnover in Union territory, if he is not––

(a) engaged in making any supply of goods or services

which are not leviable to tax under this Act;

(b) engaged in making any inter-State outward supplies

of goods or services;

(c) engaged in making any supply of goods or services through an electronic commerce operator who is required to collect tax at source under section 52;

(d) a manufacturer of such goods or supplier of such services as may be notified by the Government on the recommendations of the Council; and

(e) a casual taxable person or a non-resident taxable

person:

43 of 1961.

Provided that where more than one registered person are having the same Permanent Account Number issued under the Income-tax Act, 1961, the registered person shall not be eligible to opt for the scheme under this sub-section unless all such registered persons opt to pay tax under this sub-section.";

(d) in sub-section (3), after the words, brackets and figure "under sub-section (1)" at both the places where they occur, the words, brackets, figure and letter "or sub-section (2A), as the case may be," shall be inserted.

(e) in sub-section (4), after the words, brackets and figure "of sub- section (1)", the words, brackets, figure and letter "or, as the case may be, sub-section (2A)" shall be inserted.

(f) in sub-section (5), after the words, brackets and figure "under sub-section (1)", the words, brackets, figure and letter "or sub-section (2A), as the case may be," shall be inserted.

(g) after sub-section (5), the following Explanations shall be inserted, namely:—

'Explanation 1.––For the purposes of computing aggregate turnover of a person for determining his eligibility to pay tax under this section, the expression "aggregate turnover" shall include the value of supplies made by such person from the 1st day of April of a financial year up to the date when he becomes liable for registration under this Act, but shall not include the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.

Explanation 2.––For the purposes of determining the tax payable by a person under this section, the expression "turnover in State or turnover in Union territory" shall not include the value of following supplies, namely:––

(i) supplies from the first day of April of a financial year up to the date when such person becomes liable for registration under this Act; and

(ii) exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.'.

Amendment of section 22.

94. In section 22 of the Central Goods and Services Tax Act, in sub- section (1), after the second proviso, the following shall be inserted, namely:–– "Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.

Explanation.––For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.".

95. In section 25 of the Central Goods and Services Tax Act, after sub- Amendment of section 25.

section (6), the following sub-sections shall be inserted, namely:—

"(6A) Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed:

Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe:

Provided further that in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate andThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 129 viable means of identification, registration allotted to such person shall be deemed to be invalid an the other provisions of this Act shall apply as if such person does not have a registration.

(6B) On and from the date of notification, every individual shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government may, on the recommendations of the Council, specify in the said notification:

Provided that if an Aadhaar number is not assigned to an individual, such individual shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.

(6C) On and from the date of notification, every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustees, authorised representative, authorised signatory and such other class of persons, in such manner, as the Government may, on the recommendations of the Council, specify in the said notification:

Provided that where such person or class of persons have not been assigned the Aadhaar Number, such person or class of persons shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.

(6D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or Union territory or part thereof, as the Government may, on the recommendations of the Council, specify by notification.

18 of 2016.

Explanation.—For the purposes of this section, the expression "Aadhaar number" shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.".

96. After section 31 of the Central Goods and Services Tax Act, the Insertion of new section 31A.

following section shall be inserted, namely:––

Facility of digital pa yment to recipient.

"31A. The Government may, on the recommendations of the Council, prescribe a class of registered persons who shall provide prescribed modes of electronic payment to the recipient of supply of goods or services or both made by him and give option to such recipient to make payment accordingly, in such manner and subject to such conditions and restrictions, as may be prescribed.".

97. In section 39 of the Central Goods and Services Tax Act,–– Amendment of section 39.

(a) for sub-sections (1) and (2), the following sub-sections shall be

substituted, namely:––

''(1) Every registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions of section 10 or section 51 or section 52 shall, for every calendar month or part thereof, furnish, a return,This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 130 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed:

Provided that the Government may, on the recommendations of the Council, notify certain class of registered persons who shall furnish a return for every quarter or part thereof, subject to such conditions and restrictions as may be specified therein.

(2) A registered person paying tax under the provisions of section 10, shall, for each financial year or part thereof, furnish a return, electronically, of turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, tax paid and such other particulars in such form and manner, and within such time, as may be prescribed.'';

(b) for sub-section (7), the following sub-section shall be substituted, namely:—

"(7) Every registered person who is required to furnish a return under sub-section (1), other than the person referred to in the proviso thereto, or sub-section (3) or sub-section (5), shall pay to the Government the tax due as per such return not later than the last date on which he is required to furnish such return:

Provided that every registered person furnishing return under the proviso to sub-section (1) shall pay to the Government, the tax due taking into account inward and outward supplies of goods or services or both, input tax credit availed, tax payable and such other particulars during a month, in such form and manner, and within such time, as may be prescribed:

Provided further that every registered person furnishing return under sub-section (2) shall pay to the Government, the tax due taking into account turnover in the State or Union territory, inward supplies of goods or services or both, tax payable, and such other particulars during a quarter, in such form and manner, and within such time, as may be prescribed.".

98. In section 44 of the Central Goods and Services Tax Act, in sub- Amendment of section 44.

section (1), the following provisos shall be inserted, namely:—

"Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual return for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.".

99. In section 49 of the Central Goods and Services Tax Act, after sub- Amendment of section 49.

section (9), the following sub-sections shall be inserted, namely:—

"(10) A registered person may, on the common portal, transfer any amount of tax, interest, penalty, fee or any other amount available in the electronic cash ledger under this Act, to the electronic cash ledger for integrated tax, central tax, State tax, Union territory tax or cess, in suchThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 131 form and manner and subject to such conditions and restrictions as may be prescribed and such transfer shall be deemed to be a refund from the electronic cash ledger under this Act.

(11) Where any amount has been transferred to the electronic cash ledger under this Act, the same shall be deemed to be deposited in the said ledger as provided in sub-section (1).".

100. In section 50 of the Central Goods and Services Tax Act, in sub- Amendment of section 50.

section (1), the following proviso shall be inserted, namely:––

"Provided that the interest on tax payable in respect of supplies made during a tax period and declared in the return for the said period furnished after the due date in accordance with the provisions of section 39, except where such return is furnished after commencement of any proceedings under section 73 or section 74 in respect of the said period, shall be levied on that portion of the tax that is paid by debiting the electronic cash ledger.".

101. In section 52 of the Central Goods and Services Tax Act,–– Amendment of section 52.

(a) in sub-section (4), the following provisos shall be inserted,

namely:—

"Provided that the Commissioner may, for reasons to be recorded in writing, by notification, extend the time limit for furnishing the statement for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.";

(b) in sub-section (5), the following provisos shall be inserted, namely:—

"Provided that the Commissioner may, on the recommendations of the Council and for reasons to be recorded in writing, by notification, extend the time limit for furnishing the annual statement for such class of registered persons as may be specified therein:

Provided further that any extension of time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner.".

102. After section 53 of the Central Goods and Services Tax Act, the

following section shall be inserted, namely:––

Insertion of new section 53A. Transfer of certain amounts.

"53A. Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State Goods and Services Tax Act or the Union territory Goods and Services Tax Act, the Government shall, transfer to the State tax account or the Union territory tax account, an amount equal to the amount transferred from the electronic cash ledger, in such manner and within such time as may be prescribed.".

103. In section 54 of the Central Goods and Services Tax Act, after Amendment of section 54.

sub-section (8), the following sub-section shall be inserted, namely:––

"(8A) The Government may disburse the refund of the State tax

in such manner as may be prescribed.".

104. In section 95 of the Central Goods and Services Tax Act,––

Amendment of section 95.

(i) in clause (a),––

(a) after the words "Appellate Authority", the words "or the National Appellate Authority" shall be inserted;

(b) after the words and figures "of section 100", the words, figures and letter "or of section 101C" shall be inserted;

(ii) after clause (e), the following clause shall be inserted, namely:—

'(f) "National Appellate Authority" means the National Appellate Authority for Advance Ruling referred to in section 101A.'.

105. After section 101 of the Central Goods and Services Tax Act, the following sections shall be inserted, namely:––

Insertion of new sections 101A, 101B, and 101C.

Constitution of National Appella te Authority for Advance Ruling

"101A. (1) The Government shall, on the recommendations of the Council, by notification, constitute, with effect from such date as may be specified therein, an Authority known as the National Appellate Authority for Advance Ruling for hearing appeals made under section 101B.

(2) The National Appellate Authority shall consist of—

(i) the President, who has been a Judge of the Supreme Court or is or has been the Chief Justice of a High Court, or is or has been a Judge of a High Court for a period not less than five years;

(ii) a Technical Member (Centre) who is or has been a member of Indian Revenue (Customs and Central Excise) Service, Group A, and has completed at least fifteen years of service in Group A;

(iii) a Technical Member (State) who is or has been an officer of the State Government not below the rank of Additional Commissioner of Value Added Tax or the Additional Commissioner of State tax with at least three years of experience in the administration of an existing law or the State Goods and Services Tax Act or in the field of finance and taxation.

(3) The President of the National Appellate Authority shall be appointed by the Government after consultation with the Chief Justice of India or his nominee:

Provided that in the event of the occurrence of any vacancy in the office of the President by the reason of his death, resignation or otherwise, the senior most Member of the National Appellate Authority shall act as the President until the date on which a new President, appointed in accordance with the provisions of this Act to fill such vacancy, enters upon his office:

Provided further that where the President is unable to discharge his functions owing to absence, illness or any other cause, the senior most Member of the National Appellate Authority shall discharge the functions of the President until the date on which the President resumes his duties.

(4) The Technical Member (Centre) and Technical Member (State) of the National Appellate Authority shall be appointed by the Government on the recommendations of a Selection Committee consisting of such persons and in such manner as may be prescribed.

(5) No appointment of the Members of the National Appellate Authority shall be invalid merely by the reason of any vacancy or defect in the constitution of the Selection Committee.

(6) Before appointing any person as the President or Members of the National Appellate Authority, the Government shall satisfy itself that such person does not have any financial or other interests which are likely to prejudicially affect his functions as such President or Member.

(7) The salary, allowances and other terms and conditions of service of the President and the Members of the National Appellate Authority shall be such as may be prescribed:

Provided that neither salary and allowances nor other terms and conditions of service of the President or Members of the National Appellate Authority shall be varied to their disadvantage after their appointment.

(8) The President of the National Appellate Authority shall hold office for a term of three years from the date on which he enters upon his office, or until he attains the age of seventy years, whichever is earlier and shall also be eligible for reappointment.

(9) The Technical Member (Centre) or Technical Member (State) of the National Appellate Authority shall hold office for a term of five years from the date on which he enters upon his office, or until he attains the age of sixty-five years, whichever is earlier and shall also be eligible for reappointment.

(10) The President or any Member may, by notice in writing under

his hand addressed to the Government, resign from his office:

Provided that the President or Member shall continue to hold office until the expiry of three months from the date of receipt of such notice by the Government, or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earliest.

(11) The Government may, after consultation with the Chief Justice

of India, remove from the office such President or Member, who—

(a) has been adjudged an insolvent; or

(b) has been convicted of an offence which, in the opinion of

such Government involves moral turpitude; or

(c) has become physically or mentally incapable of acting as

such President or Member; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as such President or Member; or

(e) has so abused his position as to render his continuance in

office prejudicial to the public interest:

Provided that the President or the Member shall not be removed on any of the grounds specified in clauses (d) and (e), unless he has been informed of the charges against him and has been given an opportunity of being heard.

(12) Without prejudice to the provisions of sub-section (11), the President and Technical Members of the National Appellate Authority shall not be removed from their office except by an order made by the Government on the ground of proven misbehaviour or incapacity afterThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 134 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) an inquiry made by a Judge of the Supreme Court nominated by the Chief Justice of India on a reference made to him by the Government and such President or Member had been given an opportunity of being heard.

(13) The Government, with the concurrence of the Chief Justice of India, may suspend from office, the President or Technical Members of the National Appellate Authority in respect of whom a reference has been made to the Judge of the Supreme Court under sub-section (12). (14) Subject to the provisions of article 220 of the Constitution, the President or Members of the National Appellate Authority, on ceasing to hold their office, shall not be eligible to appear, act or plead before the National Appellate Authority where he was the President or, as the case may be, a Member.

Appea l to National Appella te Au thority.

101B. (1) Where, in respect of the questions referred to in sub- section (2) of section 97, conflicting Advance Rulings are given by the Appellate Authorities of two or more States or Union territories or both under sub-section (1) or sub-section (3) of section 101, any officer authorised by the Commissioner or an applicant, being distinct person referred to in section 25 aggrieved by such Advance Ruling, may prefer an appeal to National Appellate Authority:

Provided that the officer shall be from the States in which such Advance Rulings have been given.

(2) Every appeal under this section shall be filed within a period of thirty days from the date on which the ruling sought to be appealed against is communicated to the applicants, concerned officers and jurisdictional officers:

Provided that the officer authorised by the Commissioner may file appeal within a period of ninety days from the date on which the ruling sought to be appealed against is communicated to the concerned officer or the jurisdictional officer:

Provided further that the National Appellate Authority may, if it is satisfied that the appellant was prevented by a sufficient cause from presenting the appeal within the said period of thirty days, or as the case may be, ninety days, allow such appeal to be presented within a further period not exceeding thirty days.

Explanation.––For removal of doubts, it is clarified that the period of thirty days or as the case may be, ninety days shall be counted from the date of communication of the last of the conflicting rulings sought to be appealed against.

(3) Every appeal under this section shall be in such form, accompanied by such fee and verified in such manner as may be prescribed.

Order of National Appella te Au thority.

101C. (1) The National Appellate Authority may, after giving an opportunity of being heard to the applicant, the officer authorised by the Commissioner, all Principal Chief Commissioners, Chief Commissioners of Central tax and Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories, pass such order as it thinks fit, confirming or modifying the rulings appealed against.

(2) If the members of the National Appellate Authority differ in opinion on any point, it shall be decided according to the opinion of the majority.

(3) The order referred to in sub-section (1) shall be passed as far as possible within a period of ninety days from the date of filing of the appeal under section 101B.

(4) A copy of the Advance Ruling pronounced by the National Appellate Authority shall be duly signed by the Members and certified in such manner as may be prescribed and shall be sent to the applicant, the officer authorised by the Commissioner, the Board, the Chief Commissioner and Commissioner of State tax of all States and Chief Commissioner and Commissioner of Union territory tax of all Union territories and to the Authority or Appellate Authority, as the case may be, after such pronouncement.".

106. In section 102 of the Central Goods and Services Tax Act, in the Amendment of section 102.

opening portion,—

(a) after the words "Appellate Authority", at both the places where they occur, the words "or the National Appellate Authority" shall be inserted;

(b) after the words and figures "or section 101", the words, figures

and letter "or section 101C, respectively," shall be inserted;

(c) for the words "or the appellant", the words ",appellant, the

Authority or the Appellate Authority" shall be substituted.

107. In section 103 of the Central Goods and Services Tax Act,–– Amendment of section 103.

(i) after sub-section (1), the following sub-section shall be inserted,

namely:––

"(1A) The Advance Ruling pronounced by the National

Appellate Authority under this Chapter shall be binding on—

43 of 1961.

(a) the applicants, being distinct persons, who had sought the ruling under sub-section (1) of section 101B and all registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961;

43 of 1961.

(b) the concerned officers and the jurisdictional officers in respect of the applicants referred to in clause (a) and the registered persons having the same Permanent Account Number issued under the Income-tax Act, 1961.";

(ii) in sub-section (2), after the words, brackets and figure "in sub- section (1)", the words, brackets, figure and letter "and sub-section (1A)" shall be inserted.

108. In section 104 of the Central Goods and Services Tax Act, in sub- Amendment of section 104.

section (1),––

(a) after the words "Authority or the Appellate Authority", the

words "or the National Appellate Authority" shall be inserted;

(b) after the words and figures "of section 101", the words, figures

and letter "or under section 101C" shall be inserted.

109. In section 105 of the Central Goods and Services Tax Act,––

Amendment of section 105.

(a) for the marginal heading, the following marginal heading shall be substituted, namely:––

"Powers of Authority, Appellate Authority and National Appellate Authority.";

(b) in sub-section (1), after the words "Appellate Authority", the words "or the National Appellate Authority" shall be inserted;

(c) in sub-section (2), after the words "Appellate Authority", the words "or the National Appellate Authority" shall be inserted.

110. In section 106 of the Central Goods and Services Tax Act,––

Amendment of section 106.

(a) for the marginal heading, the following marginal heading shall be substituted, namely:––

"Procedure of Authority, Appellate Authority and National Appellate Authority.";

(b) after the words "Appellate Authority", the words "or the National Appellate Authority" shall be inserted.

Amendment of section 168.

111. In section 168 of the Central Goods and Services Tax Act, in sub- section (2), after the word and figures "section 39,", the words, brackets and figures "sub-section (1) of section 44, sub-sections (4) and (5) of section 52," shall be inserted.

112. In section 171 of the Central Goods and Services Tax Act, after Amendment of section 171.

sub-section (3), the following shall be inserted, namely:––

'(3A) Where the Authority referred to in sub-section (2), after holding examination as required under the said sub-section comes to the conclusion that any registered person has profiteered under sub-section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so profiteered:

Provided that no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority.

Explanation.—For the purposes of this section, the expression "profiteered" shall mean the amount determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of the goods or services or both.'.

12 of 2017.

113. (1) In the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 674(E), dated the 28th June, 2017, issued by the Central Government on the recommendations of the Council, under sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017, in the Schedule, after S. No. 103 and the entries relating thereto, the following S. No. and the entries shall be inserted and shall deemed to have been inserted retrospectively with effect from the 1st day of July, 2017, namely:–– Amendment of notifica tion number G.S.R. 674(E) issued under sub-section (1) of section 11 of Central Goods and Services Tax Act, retrospec- tively.

(1) (2) (3)

"103A 26 Uranium Ore Concentrate".

(2) For the purposes of sub-section (1), the Central Government shall

have and shall be deemed to have the power to amend the notification referred to in sub-section (1) with retrospective effect as if the Central Government had

the power to amend the said notification under sub-section (1) of section 11 of the said Act, retrospectively, at all material times.

(3) No refund shall be made of all such tax which has been collected,

but which would not have been so collected, if the notification referred to in sub- section (1) had been in force at all material times.

Integrated Goods and Services Tax

114. After section 17 of the Integrated Goods and Services Tax Act, Insertion of new section 17A.

13 of 2017. 2017, the following section shall be inserted, namely:––

Trasnfer of certain amounts.

"17A. Where any amount has been transferred from the electronic cash ledger under this Act to the electronic cash ledger under the State

Goods and Services Tax Act or the Union Territory Goods and Services

Tax Act, the Government shall transfer to the State tax account or the Union territory tax account, an amount equal to the amount transferred

from the electronic cash ledger, in such manner and within such time, as may be prescribed.".

115. (1) In the notification of the Government of India in the Ministry

of Finance (Department of Revenue) number G.S.R. 667(E), dated the 28th June, 2017, issued by the Central Government on the recommendations of the

Council, under sub-section (1) of section 6 of the Integrated Goods and Services

13 of 2017. Tax Act, 2017, in the Schedule, after S. No. 103 and the entries relating thereto, the following S. No. and the entries shall be inserted and shall deemed to have

Amendment of notifica tion number G.S.R. 667(E) issued under sub-section (1) of section 6 of Integrated Goods and Services Tax Act, retrospectively.

been inserted retrospectively with effect from the 1st day of July, 2017, namely:—

(1) (2) (3)

"103A 26 Uranium Ore Concentrate".

(2) For the purposes of sub-section (1), the Central Government shall

have and shallbe deemed to have the power to amend the notification referred to in sub-section (1) with retrospective effect as if the Central Government had

the power to amend the said notification under sub-section (1) of section 6 of the said Act, retrospectively, at all material times.

(3) No refund shall be made of all such tax which has been collected,

but which would not have been so collected, if the notification referred to in sub-

section (1) had been in force at all material times.

Union Territory Goods and Services Tax

116. (1) In the notification of the Government of India in the Ministry

of Finance (Department of Revenue) number G.S.R. 711(E), dated the 28th June, 2017, issued by the Central Government on the recommendations of the

14 of 2017.

Council, under sub-section (1) of section 8 of the Union Territory Goods and Services Tax Act, 2017, in the Schedule, after S. No. 103 and the entries relating

thereto, the following S. No. and the entries shall be inserted and shall deemed

Amendment of notifica tion number G.S.R. 711(E) issued under sub-section (1) of section 8 of Union Territory Goods and Services Tax Act, retrospectively.

to have been inserted retrospectively with effect from the 1st day of July, 2017, namely:––

(1) (2) (3)

"103A 26 Uranium Ore Concentrate".

(2) For the purposes of sub-section (1), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in sub-section (1) with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 8 of the said Act, retrospectively, at all material times.

(3) No refund shall be made of all such tax which has been collected, but which would not have been so collected, if the notification referred to in sub- section (1) had been in force at all material times.

Service Tax

32 of 1994.

12 of 2017.

Special provision for retrospective exemption from service tax on service by way of gra nt of liquor licence.

117. (1) Notwithstanding anything contained in section 66B of Chapter V of the Finance Act, 1994 as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 with effect from the 1st day of July, 2017 (hereinafter referred to as the said Chapter), no service tax shall be levied or collected in respect of taxable service provided or agreed to be provided by the State Government by way of grant of liquor licence, against consideration in the form of licence fee or application fee, by whatever name called, during the period commencing from the 1st day of April, 2016 and ending with the 30th day of June, 2017 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance (No. 2) Bill, 2019 receives the assent of the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said Chapter shall apply for refund under this section retrospectively as if the said Chapter had been in force at all material times.

32 of 1994.

12 of 2017.

Special provision for retrospective exemption from service tax in certain cases relating to services provided by Indian Institutes of Ma nagement to students.

118. (1) Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, or in section 66B, as it stood prior to the 1st day of July, 2017, of Chapter V of the Finance Act, 1994, as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the said Chapter), no service tax shall be levied or collected during the period commencing from the 1st day of July, 2003 and ending with the 31st day of March, 2016 (both days inclusive), in respect of taxable services provided or agreed to be provided by the Indian Institutes of Management to the students as per the guidelines of the Central Government, by way of the following educational programmes, except Executive Development Programme, namely:—

(a) two years full time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which admissions are made on the basis of Common Admission Test conducted by the Indian Institute of Management;

(b) fellow programme in Management;

(c) five years integrated programme in Management.

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance (No. 2) Bill, 2019 receives the assent of the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said Chapter shall apply for refund under this section retrospectively as if the said Chapter had been in force at all material times.

32 of 1994.

12 of 2017.

Special provision for retrospective exemption from service tax in certain cases relating to long term lease of plots for development of infrastructure for financial business.

119. (1) Notwithstanding anything contained in section 66B of Chapter V of the Finance Act, 1994, as it stood prior to its omission vide section 173 of the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the said Chapter), no service tax shall be levied or collected on upfront amount, called as premium, salami, cost, price, development charges or by any other name, payable in respect of service by way of granting long term lease of thirty years or more of plots for development of infrastructure for financial business, provided or agreed to be provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having fifty per cent. or more of the ownership of the Central Government or the State Government or the Union territory, either directly or through an entity which is wholly owned by the Central Government or the State Government or the Union territory, to the developers in any industrial or financial business area during the period commencing from the 1st day of October, 2013 and ending with the 30th day of June, 2017 (both days inclusive).

(2) Refund shall be made of all such service tax which has been collected, but which would not have been so collected, had sub-section (1) been in force at all material times:

Provided that an application for the claim of refund of service tax shall be made within a period of six months from the date on which the Finance (No. 2) Bill, 2019 receives assent of the President.

(3) Notwithstanding the omission of the said Chapter, the provisions of the said Chapter shall apply for refund under this section retrospectively as if the said Chapter had been in force at all material times.

CHAPTER V

SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019

Short title and commencement.

120. (1) This Scheme shall be called the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (hereafter in this Chapter referred to as the "Scheme").

(2) It shall come into force on such date as the Central Government

may, by notification in the Official Gazette, appoint.

Definitions.

121. In this Scheme, unless the context otherwise requires,—

(a) "amount declared" means the amount declared by the declarant

under section 125;

(b) "amount estimated" means the amount estimated by the

designated committee under section 127;

(c) "amount in arrears" means the amount of duty which is recoverable as arrears of duty under the indirect tax enactment, on account of—

(i) no appeal having been filed by the declarant against an order or an order in appeal before expiry of the period of time for filing appeal; or

(ii) an order in appeal relating to the declarant attaining finality;

or

(iii) the declarant having filed a return under the indirect tax enactment on or before the 30th day of June, 2019, wherein he has admitted a tax liability but not paid it;

(d) "amount of duty" means the amount of central excise duty, the service tax and the cess payable under the indirect tax enactment;

(e) "amount payable" means the final amount payable by the declarant as determined by the designated committee and as indicated in the statement issued by it, in order to be eligible for the benefits under this Scheme and shall be calculated as the amount of tax dues less the tax relief;

(f ) "appellate forum" means the Supreme Court or the High Court or the Customs, Excise and Service Tax Appellate Tribunal or the Commissioner ( Appeals);

(g) "audit" means any scrutiny, verification and checks carried out under the indirect tax enactment, other than an enquiry or investigation, and will commence when a written intimation from the central excise officer regarding conducting of audit is received;

(h) "declarant" means a person who is eligible to make a declaration and files such declaration under section 125;

(i ) "declaration" means the declaration filed under section 125;

(j) "departmental appeal" means the appeal filed by a central excise officer authorised to do so under the indirect tax enactment, before the appellate forum;

(k) "designated committee" means the committee referred to in section 126;

(l) "discharge certificate" means the certificate issued by the designated committee under section 127;

(m) ''enquiry or investigation'', under any of the indirect tax enactment, shall include the following actions, namely:—

(i) search of premises;

(ii) issuance of summons;

(iii) requiring the production of accounts, documents or other evidence;

(iv) recording of statements;

(n) "indirect tax enactment" means the enactments specified in section 122;

(o) "order" means an order of determination under any of the indirect tax enactment, passed in relation to a show cause notice issued under such indirect tax enactment;

(p) "order in appeal" means an order passed by an appellate forum

with respect to an appeal filed before it;

(q) "person" includes—

(i) an individual;

(ii) a Hindu undivided family;

(iii) a company;

(iv) a society;

(v) a limited liability partnership;

(vi) a firm;

(vii) an association of persons or body of individuals, whether

incorporated or not;

(viii) the Government;

(ix) a local authority;

(x) an assessee as defined in rule 2 of the Central Excise

Rules, 2002;

(xi) every artificial juridical person, not falling within any of

the preceding clauses;

(r) ''quantified", with its cognate expression, means a written communication of the amount of duty payable under the indirect tax enactment;

(s) "statement" means the statement issued by the designated

committee under section 127;

(t) "tax relief" means the amount of relief granted under section

124;

(u) all other words and expressions used in this Scheme, but not defined, shall have the same meaning as assigned to them in the indirect tax enactment and in case of any conflict between two or more such meanings in any indirect tax enactment, the meaning which is more congruent with the provisions of this Scheme shall be adopted.

122. This Scheme shall be applicable to the following enactments,

namely:—

Application of Scheme to indirect tax ena ctments.

1 of 1944.

5 of 1986.

32 of 1994.

(a) the Central Excise Act, 1944 or the Central Excise Tariff Act, 1985 or Chapter V of the Finance Act, 1994 and the rules made thereunder;

(b) the following Acts, namely:—

27 of 1940.

(i) the Agricultural Produce Cess Act,1940;

7 of 1942.

(ii) the Coffee Act, 1942;

22 of 1946.

(iii) the Mica Mines Labour Welfare Fund Act, 1946;

24 of 1947.

(iv) the Rubber Act, 1947;

49 of 1953.

(v) the Salt Cess Act, 1953;

(vi) the Medicinal and Toilet Preparations (Excise Duties)

16 of 1955.

Act, 1955;

(vii) the Additional Duties of Excise (Goods of Special

58 of 1957.

Importance) Act, 1957;

(viii) the Mineral Products (Additional Duties of Excise and

57 of 1958.

Customs) Act, 1958;

58 of 1959.

(ix) the Sugar (Special Excise Duty) Act, 1959;

41 of 1963.

(x) the Textiles Committee Act, 1963;

15 of 1966.

(xi) the Produce Cess Act, 1966;

(xii) the Limestone and Dolomite Mines Labour Welfare Fund

62 of 1972.

Act, 1972;

(xiii) the Coal Mines (Conservation and Development)

28 of 1974.

Act, 1974;

47 of 1974.

(xiv) the Oil Industry (Development) Act, 1974;

26 of 1975.

(xv) the Tobacco Cess Act, 1975;

(xvi) the Iron Ore Mines, Manganese Ore Mines and Chrome

55 of 1976.

Ore Mines Labour Welfare Cess Act, 1976;

(xvii) the Bidi Workers Welfare Cess Act, 1976;

56 of 1976.

(xviii) the Additional Duties of Excise (Textiles and Textile

40 of 1978.

Articles) Act, 1978;

3 of 1982.

(xix) the Sugar Cess Act, 1982;

28 of 1983.

(xx) the Jute Manufacturers Cess Act, 1983;

(xxi) the Agricultural and Processed Food Products Export

2 of 1986.

Cess Act, 1985;

11 of 1986.

(xxii) the Spices Cess Act, 1986;

22 of 2004.

(xxiii) the Finance Act, 2004;

17 of 2007.

(xxiv) the Finance Act, 2007;

20 of 2015.

(xxv) the Finance Act, 2015;

28 of 2016.

(xxvi) the Finance Act, 2016;

(c) any other Act, as the Central Government may, by notification in the Official Gazette, specify.

Tax dues.

123. For the purposes of the Scheme, "tax dues" means—

(a) where—

(i) a single appeal arising out of an order is pending as on the 30th day of June, 2019 before the appellate forum, the total amount of duty which is being disputed in the said appeal;

(ii) more than one appeal arising out of an order, one by the declarant and the other being a departmental appeal, which are pending as on the 30th day of June, 2019 before the appellate forum, the sum of the amount of duty which is being disputed byThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 143 the declarant in his appeal and the amount of duty being disputed in the departmental appeal:

Provided that nothing contained in the above clauses shall be applicable where such an appeal has been heard finally on or before the 30th day of June, 2019.

Illustration 1: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs.1000 and amount of penalty of Rs.100. The declarant files an appeal against this order. The amount of duty which is being disputed is Rs.1000 and hence the tax dues are Rs.1000.

Illustration 2: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs.900 and penalty of Rs. 90. The declarant files an appeal against this order. The amount of duty which is being disputed is Rs. 900 and hence tax dues are Rs.900.

Illustration 3: The show cause notice to a declarant was for an amount of duty of Rs.1000 and an amount of penalty of Rs.100. The order was for an amount of duty of Rs. 900 and penalty of Rs. 90. The declarant files an appeal against this order of determination. The departmental appeal is for an amount of duty of Rs. 100 and penalty of Rs. 10. The amount of duty which is being disputed is Rs. 900 plus Rs. 100 i.e Rs. 1000 and hence tax dues are Rs. 1000.

Illustration 4: The show cause notice to a declarant was for an amount of duty of Rs. 1000. The order was for an amount of duty of Rs.1000. The declarant files an appeal against this order of determination. The first appellate authority reduced the amount of duty to Rs. 900. The declarant files a second appeal. The amount of duty which is being disputed is Rs. 900 and hence tax dues are Rs. 900;

(b) where a show cause notice under any of the indirect tax enactment has been received by the declarant on or before the 30th day of June, 2019, then, the amount of duty stated to be payable by the declarant in the said notice:

Provided that if the said notice has been issued to the declarant and other persons making them jointly and severally liable for an amount, then, the amount indicated in the said notice as jointly and severally payable shall be taken to be the amount of duty payable by the declarant;

(c) where an enquiry or investigation or audit is pending against the declarant, the amount of duty payable under any of the indirect tax enactment which has been quantified on or before the 30th day of June, 2019;

(d) where the amount has been voluntarily disclosed by the

declarant, then, the total amount of duty stated in the declaration;

(e) where an amount in arrears relating to the declarant is due, the

amount in arrears.

124. (1) Subject to the conditions specified in sub-section (2), the relief Relief available under Scheme. available to a declarant under this Scheme shall be calculated as follows:—

(a) where the tax dues are relatable to a show cause notice or one or more appeals arising out of such notice which is pending as on the 30th day of June, 2019, and if the amount of duty is,—

(i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues;

(ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues;

(b) where the tax dues are relatable to a show cause notice for late fee or penalty only, and the amount of duty in the said notice has been paid or is nil, then, the entire amount of late fee or penalty;

(c) where the tax dues are relatable to an amount in arrears and,—

(i) the amount of duty is, rupees fifty lakhs or less, then, sixty per cent. of the tax dues;

(ii) the amount of duty is more than rupees fifty lakhs, then, forty per cent. of the tax dues;

(iii) in a return under the indirect tax enactment, wherein the declarant has indicated an amount of duty as payable but not paid it and the duty amount indicated is,—

(A) rupees fifty lakhs or less, then, sixty per cent. of the tax dues;

(B) amount indicated is more than rupees fifty lakhs, then, forty per cent. of the tax dues;

(d) where the tax dues are linked to an enquiry, investigation or audit against the declarant and the amount quantified on or before the 30th day of June, 2019 is—

(i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues;

(ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues;

(e) where the tax dues are payable on account of a voluntary disclosure by the declarant, then, no relief shall be available with respect to tax dues.

(2) The relief calculated under sub-section (1) shall be subject to the condition that any amount paid as predeposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be deducted when issuing the statement indicating the amount payable by the declarant:

Provided that if the amount of predeposit or deposit already paid by the declarant exceeds the amount payable by the declarant, as indicated in the statement issued by the designated committee, the declarant shall not be entitled to any refund.

125. (1) All persons shall be eligible to make a declaration under this Declaration under Scheme.

Scheme except the following, namely:—

(a) who have filed an appeal before the appellate forum and such appeal has been heard finally on or before the 30th day of June, 2019;

(b) who have been convicted for any offence punishable under any provision of the indirect tax enactment for the matter for which he intends to file a declaration;

(c) who have been issued a show cause notice, under indirect tax enactment and the final hearing has taken place on or before the 30th day of June, 2019;

(d) who have been issued a show cause notice under indirect tax

enactment for an erroneous refund or refund;

(e) who have been subjected to an enquiry or investigation or audit and the amount of duty involved in the said enquiry or investigation or audit has not been quantified on or before the 30th day of June, 2019;

(f) a person making a voluntary disclosure,—

(i) after being subjected to any enquiry or investigation or

audit; or

(ii) having filed a return under the indirect tax enactment, wherein he has indicated an amount of duty as payable, but has not paid it;

(g) who have filed an application in the Settlement Commission for

settlement of a case;

1 of 1944.

(h) persons seeking to make declarations with respect to excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944.

(2) A declaration under sub-section (1) shall be made in such electronic

form as may be prescribed.

126. (1) The designated committee shall verify the correctness of the declaration made by the declarant under section 125 in such manner as may be prescribed:

Verifica tion of declaration by designated committee.

Provided that no such verification shall be made in case where a voluntary

disclosure of an amount of duty has been made by the declarant.

(2) The composition and functioning of the designated committee shall

be such as may be prescribed.

Issue of statement by designated committee.

127. (1) Where the amount estimated to be payable by the declarant, as estimated by the designated committee, equals the amount declared by the declarant, then, the designated committee shall issue in electronic form, a statement, indicating the amount payable by the declarant, within a period of sixty days from the date of receipt of the said declaration.

(2) Where the amount estimated to be payable by the declarant, as estimated by the designated committee, exceeds the amount declared by the declarant, then, the designated committee shall issue in electronic form, an estimate of the amount payable by the declarant within thirty days of the date of receipt of the declaration.

(3) After the issue of the estimate under sub-section (2), the designated committee shall give an opportunity of being heard to the declarant, if he so desires, before issuing the statement indicating the amount payable by the declarant:

Provided that on sufficient cause being shown by the declarant, only one adjournment may be granted by the designated committee.

(4) After hearing the declarant, a statement in electronic form indicating the amount payable by the declarant, shall be issued within a period of sixty days from the date of receipt of the declaration.

(5) The declarant shall pay electronically through internet banking, the amount payable as indicated in the statement issued by the designated committee, within a period of thirty days from the date of issue of such statement.

(6) Where the declarant has filed an appeal or reference or a reply to the show cause notice against any order or notice giving rise to the tax dues, before the appellate forum, other than the Supreme Court or the High Court, then, notwithstanding anything contained in any other provisions of any law for the time being in force, such appeal or reference or reply shall be deemed to have been withdrawn.

(7) Where the declarant has filed a writ petition or appeal or reference before any High Court or the Supreme Court against any order in respect of the tax dues, the declarant shall file an application before such High Court or the Supreme Court for withdrawing such writ petition, appeal or reference and after withdrawal of such writ petition, appeal or reference with the leave of the Court, he shall furnish proof of such withdrawal to the designated committee, in such manner as may be prescribed, along with the proof of payment referred to in sub-section (5).

(8) On payment of the amount indicated in the statement of the designated committee and production of proof of withdrawal of appeal, wherever applicable, the designated committee shall issue a discharge certificate in electronic form, within thirty days of the said payment and production of proof.

Rectification of errors.

128. Within thirty days of the date of issue of a statement indicating the amount payable by the declarant, the designated committee may modify its order only to correct an arithmetical error or clerical error, which is apparent on the face of record, on such error being pointed out by the declarant or suo motu, by the designated committee.

129. (1) Every discharge certificate issued under section 126 with respect to the amount payable under this Scheme shall be conclusive as to the matter and time period stated therein, and—

Issue of discharge certificate to be conclusive of matter a nd time period.

(a) the declarant shall not be liable to pay any further duty, interest, or penalty with respect to the matter and time period covered in the declaration;

(b) the declarant shall not be liable to be prosecuted under the indirect tax enactment with respect to the matter and time period covered in the declaration;

(c) no matter and time period covered by such declaration shall be reopened in any other proceeding under the indirect tax enactment.

(2) Notwithstanding anything contained in sub-section (1),—

(a) no person being a party in appeal, application, revision or reference shall contend that the central excise officer has acquiesced in the decision on the disputed issue by issuing the discharge certificate under this scheme;

(b) the issue of the discharge certificate with respect to a matter for a time period shall not preclude the issue of a show cause notice,—

(i) for the same matter for a subsequent time period; or

(ii) for a different matter for the same time period;

(c) in a case of voluntary disclosure where any material particular furnished in the declaration is subsequently found to be false, within a period of one year of issue of the discharge certificate, it shall be presumed as if the declaration was never made and proceedings under the applicable indirect tax enactment shall be instituted.

130. (1) Any amount paid under this Scheme,—

Restrictions of Scheme.

(a) shall not be paid through the input tax credit account under the

indirect tax enactment or any other Act;

(b) shall not be refundable under any circumstances;

(c) shall not, under the indirect tax enactment or under any other

Act,—

(i) be taken as input tax credit; or

(ii) entitle any person to take input tax credit, as a recipient, of the excisable goods or taxable services, with respect to the matter and time period covered in the declaration.

(2) In case any predeposit or other deposit already paid exceeds the amount payable as indicated in the statement of the designated committee, the difference shall not be refunded.

Removal of doubts.

131. For the removal of doubts, it is hereby declared that, save as otherwise expressly provided in sub-section (1) of section 124, nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant in any proceedings other than those in relation to the matter and time period to which the declaration has been made.

132. (1) The Central Government may, by notification in the Official Power to make rules.

Gazette, make rules for carrying out the provisions of this Scheme.

(2) Without prejudice to the generality of the foregoing power, such rules

may provide for all or any of the following matters, namely:—

(a) the form in which a declaration may be made and the manner

in which such declaration may be verified;

(b) the manner of constitution of the designated committee and its

rules of procedure and functioning;

(c) the form and manner of estimation of amount payable by the

declarant and the procedure relating thereto;

(d) the form and manner of making the payment by the declarant

and the intimation regarding the withdrawal of appeal;

(e) the form and manner of the discharge certificate which may be granted to the declarant;

(f) the manner in which the instructions may be issued and published;

(g) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules.

(3) The Central Government shall cause every rule made under this Scheme to be laid, as soon as may be after it is made, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 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 the validity of anything previously done under that rule.

Power to issue orders, instructions, etc.

133. (1) The Central Board of Indirect Taxes and Customs may, from time to time, issue such orders, instructions and directions to the authorities, as it may deem fit, for the proper administration of this Scheme, and such authorities, and all other persons employed in the execution of this Scheme shall observe and follow such orders, instructions and directions:

Provided that no such orders, instructions or directions shall be issued so as to require any designated authority to dispose of a particular case in a particular manner.

(2) Without prejudice to the generality of the foregoing power, the Central Board of Indirect Taxes and Customs may, if it considers necessary or expedient so to do, for the purpose of proper and efficient administration of the Scheme and collection of revenue, issue, from time to time, general or special orders in respect of any class of cases, setting forth directions or instructions as to the guidelines, principles or procedures to be followed by the authorities in the work relating to administration of the Scheme and collection of revenue and any such order may, if the said Board is of opinion that it is necessary in the public interest so to do, be published in the prescribed manner.

Removal of difficulties.

134. (1) If any difficulty arises in giving effect to the provisions of this Scheme, the Central Government may, by order, not inconsistent with the provisions of this Scheme, remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of this Scheme come into force.

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each House of Parliament.

Protection to officers.

135. (1) No suit, prosecution or other legal proceeding shall lie against the Central Government or any officer of the Central Government for anything which is done, or intended to be done in good faith, in pursuance of this Scheme or any rule made thereunder.

(2) No proceeding, other than a suit shall be commenced against the Central Government or any officer of the Central Government for anything done or purported to have been done in pursuance of this Scheme, or any rule made thereunder, without giving the Central Government or such officer a prior notice of not less than one month in writing of the intended proceeding and of the cause thereof, or after the expiration of three months from the accrual of such cause.

(3) No proceeding shall be commenced against any officer only on the ground of subsequent detection of an error in calculating the amount of duty payable by the declarant, unless there is evidence of misconduct.

CHAPTER VI

MISCELLANEOUS

PART I

AMENDMENTS TO THE RESERVE BANK OF INDIA ACT, 1934

136. The provisions of this Part shall come into force on such date as Commencement of this Pa rt.

the Central Government may, by notification in the Official Gazette, appoint.

2 of 1934.

Amendment of section 45-1A.

137. In the Reserve Bank of India Act, 1934 (hereafter in this Part referred to as the principal Act), in section 45-IA, in sub-section (1), for clause (b), the following shall be substituted, namely:—

"(b) having the net owned fund of twenty-five lakh rupees or such other amount, not exceeding hundred crore rupees, as the Bank may, by notification in the Official Gazette, specify:

Provided that the Bank may notify different amounts of net owned

fund for different categories of non-banking financial companies.".

138. After section 45-IC of the principal Act, the following sections shall

be inserted, namely:—

Insertion of new sections 45-ID and 45-IE.

Power of Bank to remove directors from office.

"45-ID. (1) Where the Bank is satisfied that in the public interest or to prevent the affairs of a non-banking financial company being conducted in a manner detrimental to the interest of the depositors or creditors, or financial stability or for securing the proper management of such company, it is necessary so to do, the Bank may, by order and for reasons to be recorded in writing, remove from office, a director (by whatever name called) of such company, other than Government owned non-banking financial company with effect from such date as may be specified in the said order.

(2) No order under sub-section (1) shall be made unless the director concerned has been given a reasonable opportunity of making a representation to the Bank against the proposed order:

Provided that if, in the opinion of the Bank, any delay will be detrimental to the interest of the said company or its depositors, the Bank may, at the time of giving the aforesaid opportunity or at any time thereafter, by order direct that, pending the consideration of the representation, if any, the director, shall not, with effect from the date of such order––

(a) act as such director of that company;

(b) in any way, whether directly or indirectly, be concerned

with or take part in the management of that company.

(3) Where any order is made in respect of a director of a company under sub-section (1), he shall cease to be a director of that non-banking financial company and shall not, in any way, whether directly or indirectly, be concerned with, or take part in the management of any non-banking financial company for such period not exceeding five years at a time as may be specified in the order.

(4) Where an order under sub-section (1) has been made, the Bank may, by order in writing, appoint a suitable person in place of the director, who has been so removed from his office, with effect from such date as may be specified in such order.

(5) Any person appointed under sub-section (4) shall,—

(a) hold office during the pleasure of the Bank and subject thereto for a period not exceeding three years or such further periods not exceeding three years at a time;

(b) not incur any obligation or liability by reason only of his being a director for anything done or omitted to be done in good faith in the execution of the duties of his office or in relation thereto.

(6) Notwithstanding anything contained in any other law for the time being in force or in any contract, memorandum or articles of association, on the removal of a director from office under this section, such director shall not be entitled to claim any compensation for the loss or termination from office.

Supersession of Board of directors of non- banking financial compa ny (other than Government Compa ny).

45-IE. (1) Where the Bank is satisfied that in the public interest or to prevent the affairs of a non-banking financial company being conducted in a manner detrimental to the interest of the depositors or creditors, or of the non-banking financial company (other than Government Company), or for securing the proper management of such company or for financial stability, it is necessary so to do, the Bank may, for reasons to be recorded in writing, by order, supersede the Board of Directors of such company for a period not exceeding five years as may be specified in the order, which may be extended from time to time, so, however, that the total period shall not exceed five years.

(2) The Bank may, on supersession of the Board of Directors of the non-banking financial company under sub-section (1), appoint a suitable person as the Administrator for such period as it may determine.

(3) The Bank may issue such directions to the Administrator as it may deem appropriate and the Administrator shall be bound to follow such directions.

(4) Upon making the order of supersession of the Board of Directors of a nonbanking financial company,––

(a) the chairman, managing director and other directors shall from the date of supersession of the Board of Directors vacate their offices;

(b) all the powers, functions and duties, which may, by or under the provisions of this Act or any other law for the time being in force, be exercised and discharged by or on behalf of the Board of Directors of such non-banking financial company or by a resolution passed in general meeting of such nonbanking financial company, shall, until the Board of Directors of such company is reconstituted, be exercised and discharged by the Administrator referred to in sub-section (2).

(5) (a) The Bank may constitute a committee consisting of three or more members who have experience in law, finance, banking, administration or accountancy to assist the Administrator in discharge of his duties.

(b) The committee shall meet at such times and places and observe

such rules of procedure as may be specified by the Bank.

(6) The salary and allowances payable to the Administrator and the members of the committee constituted by the Bank shall be such as may be specified by the Bank and be paid by the concerned non-banking financial company.

(7) On or before the expiration of the period of supersession of the Board of Directors as specified in the order issued under sub-section (1), the Administrator of the non-banking financial company shall facilitate reconstitution of the Board of Directors of the non-banking financial company.

(8) Notwithstanding anything contained in any other law for the time being in force or in any contract, no person shall be entitled to claim any compensation for the loss or termination of his office.

(9) The Administrator referred to in sub-section (2) shall vacate office immediately after the Board of Directors of the non-banking financial company has been reconstituted.".

139. After section 45MA of the principal Act, the following section shall Insertion of new section 45MAA.

be inserted, namely:—

Power to take action against auditors.

''45MAA. Where any auditor fails to comply with any direction given or order made by the Bank under section 45MA, the Bank, may, if satisfied, remove or debar the auditor from exercising the duties as auditor of any of the Bank regulated entities for a maximum period of three years, at a time.".

140. After section 45MB of the principal Act, the following section shall Insertion of new section 45MBA.

be inserted, namely:—

Resolution of non-ba nking financial compa ny.

'45MBA. (1) Without prejudice to any other provision of this Act or any other law for the time being in force, the Bank may, if it is satisfied, upon an inspection of the Books of a non-banking financial company that it is in the public interest or in the interest of financial stability so to do for enabling the continuance of the activities critical to the functioning of the financial system, frame schemes which may provide for any one or more of the following, namely:––

(a) amalgamation with any other non-banking institution;

(b) reconstruction of the non-banking financial company;

(c) splitting the non-banking financial company into different units or institutions and vesting viable and non-viable businesses in separate units or institutions to preserve the continuity of the activities of that non-banking financial company that are critical to the functioning of the financial system and for such purpose establish institutions called "Bridge Institutions".

Explanation.––For the purposes of this sub-section, "Bridge Institutions" mean temporary institutional arrangement made under the scheme referred to in this sub-section, to preserve the continuity of the activities of a non-banking financial company that are critical to the functioning of the financial system.

(2) Without prejudice to the generality of the foregoing provisions, the scheme referred to in sub-section (1) may provide for––

(a) reduction of the pay and allowances of the chief executive officer, managing director, chairman or any officer in the senior management of the nonbanking financial company;

(b) cancellation of all or some of the shares of the non- banking financial company held by the chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company or their relatives;

(c) sale of any of the assets of the non-banking financial company.

(3) The chief executive officer, managing director, chairman or any officer in the senior management of the non-banking financial company whose pay and allowances are reduced or the shareholders whose shares are cancelled under the scheme shall not be entitled to any compensation.'.

141. After section 45NA of the principal Act, the following section shall Insertion of new section 45NAA. be inserted, namely:—

Power in respect of group compa nies.

"45NAA. (1) The Bank may, at any time, direct a non-banking financial company to annex to its financial statements or furnish separately, within such time and at such intervals as may be specified by the Bank, such statements and information relating to the business or affairs of any group company of the non-banking financial company as the Bank may consider necessary or expedient to obtain for the purposes of this Act.

18 of 2013.

(2) Notwithstanding anything to the contrary contained in the Companies Act, 2013, the Bank may, at any time, cause an inspection or audit to be made of any group company of a non-banking financial company and its books of account.

Explanation.––For the purposes of this section,––

(a) "group company" shall mean an arrangement involving two or more entities related to each other through any of the following relationships, namely:—

(i) subsidiary— parent (as may be notified by the Bank in accordance with Accounting Standards);

(ii) joint venture (as may be notified by the Bank in accordance with Accounting Standards);

(iii) associate (as may be notified by the Bank in accordance with Accounting Standards);

15 of 1992.

(iv) promoter-promotee (under the Securities and Exchange Board of India Act, 1992 or the rules or regulations made thereunder for listed companies);

(v) related party;

(vi) common brand name (that is usage of a registered brand name of an entity by another entity for business purposes); and

(vii) investment in equity shares of twenty per cent. and

above in the entity;

18 of 2013.

1 of 1956.

(b) "Accounting Standards" means the Accounting Standards notified by the Central Government under section 133, read with section 469 of the Companies Act, 2013 and sub-section (1) of section 210A of the Companies Act, 1956.".

142. In section 58B of the principal Act,––

Amendment of section 58B.

(i) in sub-section (2), for the words "two thousand rupees" and "one hundred rupees", the words "one lakh rupees" and "five thousand rupees" shall respectively be substituted;

(ii) in sub-section (4A), for the words "five lakh rupees", the

words "twenty-five lakh rupees" shall be substituted;

(iii) in sub-section (4AA), for the words "five thousand rupees",

the words "ten lakh rupees" shall be substituted;

(iv) in sub-section (4AAA), for the words "rupees fifty", the words

"five thousand rupees" shall be substituted;

(v) in sub-section (5),––

(A) in clause (a), for the words "any deposit", the words "any deposit without being authorised so to do or" shall be substituted;

(B) in clause (b), for the word, figures and letters "section 45NA", the word, figures and letter "section 45J" shall be substituted;

(vi) in sub-section (6), for the words "two thousand rupees" and "one hundred rupees", the words "one lakh rupees" and "ten thousand rupees" shall respectively be substituted.

143. In section 58G of the principal Act, in sub-section (1),—

Amendment of section 58G.

(A) in clause (a), for the words ''five thousand'', the words ''twenty-

five thousand'' shall be substituted;

(B) in clause (b), for the words ''five lakh'' and ''twenty-five thousand'', the words ''ten lakh'' and ''one lakh'' respectively shall be substituted.

PART II

AMENDMENT TO THE INSURANCE ACT, 1938

144. In the Insurance Act, 1938, in section 6, after sub-section (2), the Amendment of Act of 1938.

following sub-section shall be inserted, namely:––

28 of 2005.

"(3) No insurer, being a foreign company engaged in re-insurance business through a branch established in an International Financial Services Centre referred to in sub-section (1) of section 18 of the Special Economic Zones Act, 2005, shall be registered unless it has net owned funds of not less than rupees one thousand crore.".

PART III

AMENDMENT TO THE SECURITIES CONTRACTS (REGULATION) ACT, 1956

145. The provisions of this Part shall come into force on such date as Commencement of this Pa rt.

the Central Government may, by notification in the Official Gazette, appoint.

Amendment of Act 42 of 1956.

146. In the Securities Contracts (Regulation) Act, 1956, in section 23A, in clause (a), for the words "report to a recognised stock exchange, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange or who furnishes", the words "report to a recognised stock exchange or to the Board, fails to furnish the same within the time specified therefor in the listing agreement or conditions or bye-laws of the recognised stock exchange or the Act or rules made thereunder, or who furnishes" shall be substituted.

PART IV

AMENDMENT TO THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1970

147. The provisions of this Part shall come into force on such date as Commencement of this Pa rt.

the Central Government may, by notification in the Official Gazette, appoint.

Amendment of Act 5 of 1970.

148. In the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, in section 9, in sub-section (3), for clause (a), the following clause shall be substituted, namely:—

'(a) not more than five whole-time directors to be appointed by the Central Government after consultation with the Reserve Bank:

Provided that the Central Government, may, after consultation with the Reserve Bank, by notification published in the Official Gazette, post a whole-time director so appointed to any other corresponding new bank.

Explanation.—For the purposes of this clause, the expression "corresponding new bank" shall include a "corresponding new bank" as defined in clause (b) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980;'.

PART V

AMENDMENT TO THE GENERAL INSURANCE BUSINESS (NATIONALISATION) ACT, 1972

Amendment of Act 57 of 1972.

149. In the General Insurance Business (Nationalisation) Act, 1972, in section 16, in sub-section (2), for the words "only four companies", the words "up to four companies" shall be substituted.

PART VI

AMENDMENT TO THE BANKING COMPANIES (ACQUISITION AND TRANSFER OF UNDERTAKINGS) ACT, 1980

150. The provisions of this Part shall come into force on such date as Commencement of this Pa rt.

the Central Government may, by notification in the Official Gazette, appoint.

Amendment of Act 40 of 1980.

151. In the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, in section 9, in sub-section (3), for clause (a), the following clause shall be substituted, namely:—

'(a) not more than five whole-time directors to be appointed by the

Central Government after consultation with the Reserve Bank:

Provided that the Central Government, may, after consultation with the Reserve Bank, by notification published in the Official Gazette, post a whole-time director so appointed to any other corresponding new bank.

Explanation.—For the purposes of this clause, the expression "corresponding new bank" shall include a "corresponding new bank" as defined in clause (d) of section 2 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970;'.

PART VII

AMENDMENTS TO THE NATIONAL HOUSING BANK ACT, 1987

152. The provisions of this Part shall come into force on such date as Commencement of this Pa rt.

the Central Government may, by notification in the Official Gazette, appoint.

53 of 1987.

Substitution of heading of Chapter V. 153. In the National Housing Bank Act, 1987 (hereafter in this Part referred to as the principal Act), in Chapter V, for the heading, the following heading shall be substituted, namely:—

"PROVISIONS RELATING TO HOUSING FINANCE INSTITUTIONS"

154. In section 29A of the principal Act,—

Amendment of section 29A.

(a) for sub-sections (1) and (2), the following sub-sections shall be

substituted, namely:—

"(1) Notwithstanding anything contained in this Chapter or in any other law for the time being in force, no housing finance institution which is a company shall commence housing finance as its principal business or carry on the business of housing finance as its principal business without—

(a) obtaining a certificate of registration issued under this

Chapter; and

(b) having the net owned fund of ten crore rupees or such other higher amount, as the Reserve Bank may, by notification, specify.

(2) Every housing finance institution which is a company shall make an application for registration to the Reserve Bank in such form as may be specified by the Reserve Bank:

Provided that an application made by a housing finance institution which is a company to the National Housing Bank and pending for consideration with the National Housing Bank as on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, shall stand transferred to the Reserve Bank and thereupon the application shall be deemed toThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 156 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) have been made under the provisions of this sub-section and shall be dealt with accordingly:

Provided further that the provisions of this sub-section shall not apply to the housing finance institution which is a company and having a valid registration certificate granted under sub-section (5) on the date of commencement of the provisions of Part VII of Chapter VI of the Finance (No.2) Act, 2019, and such housing finance institution shall be deemed to have been granted a certificate of registration under the provision of this Act.";

(b) sub-section (3) shall be omitted;

(c) in sub-section (4),—

(i) for the words "National Housing Bank" at both the places where they occur, the words "Reserve Bank" shall be substituted;

(ii) after clause (g), the following proviso shall be inserted, namely:––

"Provided that the Reserve Bank may, wherever it considers necessary so to do, require the National Housing Bank to inspect the books of such housing finance institution and submit a report to the Reserve Bank for the purpose of considering the application.";

(d) in sub-section (5), for the words "National Housing Bank", the words "Reserve Bank" shall be substituted;

(e) in sub-section (6),—

(i) in the opening portion, for the words "National Housing Bank", the words "Reserve Bank" shall be substituted;

(ii) in clause (iv), for the words "National Housing Bank" wherever they occur, the words "Reserve Bank or the National Housing Bank" shall be substituted;

(iii) in the first proviso,—

(A) for the words "housing finance institution" at both the places where they occur, the words "housing finance institution which is a company" shall be substituted;

(B) for the words "National Housing Bank" at both the places where they occur, the words "Reserve Bank" shall be substituted;

(f) in sub-section (7),––

(i) for the words "National Housing Bank", the words "Reserve Bank" shall be substituted;

(ii) in the Explanation,––

(A) in clause (I), in sub-clause (b), in item (1), for sub- item (iii), the following sub-item shall be substituted, namely:—

"(iii) all other housing finance companies; and";

(B) for clause (II), the following clause shall be

substituted, namely:—

18 of 2013.

'(II) the expressions "subsidiaries" and "companies in the same group" shall have the meanings respectively assigned to them in the Companies Act, 2013:

Provided that the National Housing Bank shall, in consultation with the Reserve Bank, specify the companies to be deemed to be in the same group.'.

155. In section 29B of the principal Act,—

Amendment of section 29B.

(i) for the words "housing finance institution" wherever they occur, the words "housing finance institution which is a company" shall be substituted;

(ii) in sub-section (1), for the words "National Housing Bank", the

words "Reserve Bank" shall be substituted;

(iii) in sub-section (2), for the words "such higher percentage not exceeding twenty-five per cent., as the National Housing Bank may", the words "such higher percentage not exceeding twenty-five per cent., as the Reserve Bank may" shall be substituted;

(iv) in sub-section (3), for the words "National Housing Bank" at both the places where they occur, the words "Reserve Bank" shall be substituted.

156. In section 29C of the principal Act, in sub-section (2),––

Amendment of section 29C.

(a) for the words "specified by the National Housing Bank", the

words "specified by the Reserve Bank" shall be substituted;

(b) for the words "reported to the National Housing Bank", the words "reported to the National Housing Bank and the Reserve Bank" shall be substituted;

(c) in the proviso, for the words "Provided that the National Housing Bank", the words "Provided that the National Housing Bank or the Reserve Bank" shall be substituted;

(d) in sub-section (3), for the words "the National Housing Bank",

the words "the Reserve Bank" shall be substituted.

157. For section 30 of the principal Act, the following section shall be Substitution of section 30.

substituted, namely:—

"30. The Reserve Bank may, if it considers necessary in the public

interest so to do, by general or special order,—

Reserve Bank to regulate or prohibit issue of prospectus or advertisement soliciting deposits of money.

(a) regulate or prohibit the issue by any housing finance institution which is a company of any prospectus or advertisement soliciting deposits of money from the public; and

(b) specify the conditions subject to which any such prospectus

or advertisement, if not prohibited, may be issued.".

158. For section 30A of the principal Act, the following section shall be Substitution of section 30A. substituted, namely:—

Power of Reserve Bank to determine policy and issue directions.

"30A. (1) If the Reserve Bank is satisfied that, in the public interest or to regulate the housing finance system of the country to its advantage or to prevent the affairs of any housing finance institution which is a company being conducted in a manner detrimental to the interest of the depositors or in a manner prejudicial to the interest of such housing finance institutions, it is necessary or expedient so to do, it may determine the policy and give directions to all or any of the housing finance institution which is a company relating to income recognition, accounting standards, making of proper provision for bad and doubtful debts, capital adequacy based on risk weights for assets and credit conversion factors for off balance-sheet items and also relating to deployment of funds by a housing finance institution which is a company or a group of such housing finance institutions or housing finance institutions which are companies generally, as the case may be, and such housing finance institutions shall be bound to follow the policy so determined and the direction so issued.

(2) Without prejudice to the generality of the powers vested under sub-section (1), the Reserve Bank may give directions to housing finance institutions which are companies generally or to a group of such housing finance institutions or to any housing finance institution which is a company in particular as to—

(a) the purpose for which advances or other fund-based or non-fundbased accommodation may not be made; and

(b) the maximum amount of advances or other financial accommodation or investment in shares and other securities which, having regard to the paid-up capital, reserves and deposits of the housing finance institution and other relevant considerations, may be made by that housing finance institution to any person or a company or to a group of companies.

(3) The Reserve Bank may, if it considers necessary in the public interest so to do, issue directions to housing finance institutions which are companies accepting deposits referred to in section 31, either generally or to any group of such housing finance institutions accepting deposits, and in particular, in respect of any matters relating to, or connected with, the receipt of deposits, including credit rating of the housing finance institution which is a company accepting deposits, the rates of interest payable on such deposits, and the periods for which deposits may be received.

(4) If any housing finance institution which is a company accepting deposits fails to comply with any direction issued under sub-section (3), the Reserve Bank may, by order, prohibit the acceptance of deposits by that housing finance institution.".

159. For section 31 of the principal Act, the following section shall be Substitution of section 31.

substituted, namely:—

"31. (1) The National Housing Bank may at any time direct that every housing finance institution which is a company accepting deposits shall furnish to the National Housing Bank and the Reserve Bank in such form, at such intervals and within such time, such statements, information Power of National Housing Bank to collect information from housing finance institutions as to deposits.

or particulars relating to or connected with deposits received by such housing finance institution, as may be specified by the National Housing Bank by general or special order.

(2) Without prejudice to the generality of the power vested in the National Housing Bank under sub-section (1), the statements, information or particulars to be furnished under sub-section (1), may relate to all or any of the following matters, namely, the amount of the deposits, the purposes and periods for which, and the rates of interest and other terms and conditions on which, such deposits are received.

(3) Every housing finance institution which is a company receiving deposits, shall, if so required by the National Housing Bank and within such time as the National Housing Bank may specify, cause to be sent at the cost of such housing finance institution, a copy of its annual balance-sheet and profit and loss account or other annual accounts to every person from whom the housing finance institution which is a company holds, as on the last day of the year to which the accounts relate, deposits higher than such sum as may be specified by the National Housing Bank.".

160. For section 32 of the principal Act, the following section shall be Substitution of section 32.

substituted, namely:—

Duty of housing finance insti- tution to furnish statements, etc., under this Chapter.

"32. Every housing finance institution which is a company shall furnish the statements, information or particulars called for by the National Housing Bank or the Reserve Bank, as the case may be, and shall comply with any direction given to it under the provisions of this Chapter.".

161. In section 33 of the principal Act,—

Amendment of section 33.

(a) in sub-section (1),—

(i) for the words "housing finance institution" wherever they occur, the words "housing finance institution which is a company" shall be substituted;

(ii) for the words "the National Housing Bank" at both the places where they occur, the words "the National Housing Bank and the Reserve Bank'' shall be substituted;

(b) in sub-section (1A), for the words "National Housing Bank",

the words "Reserve Bank" shall be substituted;

(c) in sub-section (2), for the words "the National Housing Bank" at both the places where they occur, the words "the National Housing Bank and the Reserve Bank" shall be substituted;

(d) in sub-section (3), for the words "it may at any time", the words "it may at any time and shall, on being directed to do so by the Reserve Bank," shall be substituted.

162. For section 33A of the principal Act, the following section shall be Substitution of section 33A.

substituted, namely:—

"33A. (1) If any housing finance institution which is a company violates the provisions of any section or fails to comply with any direction or order given by the National Housing Bank or the Reserve Bank, under any of the provisions of this Chapter, the Reserve Bank may, by order, prohibit such housing finance institution from accepting any deposit.

Power of Reserve Bank to prohibit acceptance of deposit and alienation of assets.

(2) Notwithstanding anything to the contrary contained in any agreement or instrument or any law for the time being in force, the Reserve Bank on being satisfied that it is necessary so to do in the public interest or in the interest of the depositors, may direct the housing finance institution which is a company, against which an order prohibiting from accepting deposit has been issued, not to sell, transfer, create charge or mortgage or deal in any manner with its property and assets without prior written permission of the National Housing Bank for such period not exceeding six months from the date of the order.".

163. In section 33B of the principal Act,—

Amendment of section 33B.

(i) in sub-section (1), in clause (c), for the words "the National Housing Bank", the words "the National Housing Bank or the Reserve Bank" shall be substituted;

(ii) in sub-section (3), for the words "the Registrar of Companies", the words "the Registrar of Companies and the Reserve Bank" shall be substituted.

164. In section 34 in the principal Act,—

Amendment of section 34.

(i) for the words "at any time", the words "at any time or on being directed so to do by the Reserve Bank, shall" shall be substituted;

(ii) for the words "housing finance institution accepting deposits" at both the places where they occur, the words "housing finance institution which is a company" shall be substituted;

(iii) after sub-section (3), the following sub-section shall be inserted, namely:—

"(4) The National Housing Bank shall submit a copy of the report of inspection referred to in sub-section (1) to the Reserve Bank.".

165. In section 35 of the principal Act,—

Amendment of section 35.

(i) in the opening portion, for the words "housing finance institution", the words "housing finance institution which is a company" shall be substituted;

(ii) in clause (b), for the words "National Housing Bank", the words "Reserve Bank" shall be substituted.

166. In section 35A of the principal Act,—

Amendment of section 35A.

(a) for the words "housing finance institution" wherever they occur, the words "housing finance institution which is a company" shall be substituted;

(b) for the words "the National Housing Bank" wherever they occur, the words "the National Housing Bank or the Reserve Bank, as the case may be," shall be substituted.

167. For section 35B of the principal Act, the following section shall be Substitution of section 35B.

substituted, namely:—

Power of Reserve Bank to exempt housing fina nce institution.

"35B. (1) The Reserve Bank, on being satisfied that it is necessary so to do, may declare by notification that all or any of the provisions of this Chapter shall not apply to a housing finance institution which is a company or a group of such housing finance institutions either generally or for such period as may be specified, subject to such conditions, limitations or restrictions as it may think fit to impose.

(2) Every notification made under this section shall be laid, as soon

as may be after it is made, before each House of Parliament.".

Amendment of section 44.

168. In section 44 of the principal Act, in sub-section (1), for the words "National Housing Bank" at both the places where they occur, the words "National Housing Bank or the Reserve Bank, as the case may be," shall be substituted.

Amendment of section 46.

169. In section 46 of the principal Act, for the words "the National Housing Bank" wherever they occur, the words "the National Housing Bank or the Reserve Bank" shall be substituted.

170. In section 49 of the principal Act,—

Amendment of section 49.

(a) in sub-section (2B), for the words "the National Housing Bank", the words "the National Housing Bank or the Reserve Bank" shall be substituted;

(b) in sub-section (2C), for the words "any order made by the authorised officer", the words "any order made by the National Company Law Tribunal" shall be substituted;

(c) in sub-section (3), in clause (aa), for the words "the National Housing Bank", the words "the National Housing Bank or the Reserve Bank" shall be substituted.

Amendment of section 51.

171. In section 51 of the principal Act, for the words "the National Housing Bank," wherever they occur, the words "the National Housing Bank or the Reserve Bank" shall be substituted.

172. For section 52A of the principal Act, the following section shall be Substitution of section 52A.

substituted, namely:—

Power of National Housing Bank and Reserve Bank to impose fine.

"52A. (1) Notwithstanding anything contained in section 49, if the contravention or default of the nature referred to in the said section is committed by a housing finance institution which is a company, the National Housing Bank or the Reserve Bank, as the case may be, may impose on such company—

(a) a penalty not exceeding five thousand rupees; or

(b) where the contravention or default is under sub-section (2A) or clause (a) or clause (aa) of sub-section (3) of that section, a penalty not exceeding five lakh rupees or twice the amount involved in such contravention or default, where the amount is quantifiable, whichever is more; and where such contravention or default is a continuing one, further penalty which may extend to twenty-five thousand rupees for every day, after the first, during which the contravention or default continues.

(2) For the purpose of imposing penalty under sub-section (1), the National Housing Bank or the Reserve Bank, as the case may be, shall serve a notice on the housing finance institution which is a company requiring it to show cause why the amount specified in the notice should not be imposed as a penalty and a reasonable opportunity of being heard shall also be given to such housing finance institution.

(3) Any penalty imposed by the National Housing Bank or the Reserve Bank, as the case may be, under this section shall be payable within a period of thirty days from the date on which notice issued by the National Housing Bank or the Reserve Bank, as the case may be, demanding payment of the sum is served on the housing finance institution which is a company and, in the event of failure of such housing finance institution to pay the sum within such period, may be levied on a direction made by the principal civil court having jurisdiction in the area where the registered office or the head office of such housing finance institution is situated:

Provided that no such direction shall be made, except on an application made by an officer of the National Housing Bank or the Reserve Bank, as the case may be, authorised in this behalf, to the principal civil court.

(4) The court which makes a direction under sub-section (3), shall issue a certificate specifying the sum payable by the housing finance institution which is a company and every such certificate shall be enforceable in the same manner as if it were a decree made by the court in a civil suit.

(5) No complaint shall be filed against any housing finance institution which is a company in any court of law pertaining to any contravention or default in respect of which any penalty has been imposed by the National Housing Bank or the Reserve Bank, as the case may be, under this section.

(6) Where any complaint has been filed against a housing finance institution which is a company in a court in respect of contravention or default of the nature referred to in section 49, no proceedings for imposition of penalty against such housing finance institution shall be taken under this section.".

PART VIII

AMENDMENTS TO THE PROHIBITION OF BENAMI PROPERTY TRANSACTIONS ACT, 1988

45 of 1988.

Amendment of section 23.

173. In the Prohibition of Benami Property Transactions Act, 1988 (hereafter in this Part referred to as the principal Act), in section 23, the following Explanation shall be inserted and shall be deemed to have been inserted with effect from the 1st day of November, 2016, namely:––

"Explanation.––For the removal of doubts, it is hereby clarified that nothing contained in this section shall apply and shall be deemed to have ever applied where a notice under sub-section (1) of section 24 has been issued by the Initiating Officer.".

174. In section 24 of the principal Act, with effect from the 1st day of Amendment of section 24.

September, 2019,—

(a) in sub-section (3), for the words, brackets and figure "from the date of issue of notice under sub-section (1)", the words, brackets and figure "from the last day of the month in which the notice under sub- section (1) is issued" shall be substituted;

(b) in sub-section (4), for the words, brackets and figure "from the date of issue of notice under sub-section (1)", the words, brackets and figure "from the last day of the month in which the notice under sub- section (1) is issued" shall be substituted;

(c) the following Explanation shall be inserted, namely:—

"Explanation.––For the purposes of this section, in computing the period of limitation, the period during which the proceeding is stayed by an order or injunction of any court shall be excluded:

Provided that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in sub-section (4) available to the Initiating Officer for passing order of attachment is less than thirty days, such remaining period shall be deemed to be extended to thirty days:

Provided further that where immediately after the exclusion of the aforesaid period, the period of limitation referred to in sub- section (5) available to the Initiating Officer to refer the order of attachment to Adjudicating Authority is less than seven days, such remaining period shall be deemed to be extended to seven days.".

Amendment of section 26.

175. In section 26 of the principal Act, in sub-section (7), with effect from the 1st day of September, 2019, the following Explanation shall be inserted, namely:-—

"Explanation.—For the purposes of this sub-section, in computing the period of limitation, the period during which the proceeding is stayed by an order or injunction of any court shall be excluded:

Provided that where immediately after the exclusion of the aforesaid period, the period of limitation available to the Adjudicating Authority for passing order is less than sixty days, such remaining period shall be deemed to be extended to sixty days.".

Amendment of section 30.

176. In section 30 of the principal Act, for the words "the Adjudicating Authority", the words "any authority" shall be substituted with effect from the 1st day of September, 2019.

177. In section 46 of the principal Act, with effect from the 1st day of Amendment of section 46.

September, 2019,—

(a) after sub-section (1), the following sub-section shall be inserted,

namely:—

"(1A) Any person aggrieved by an order passed by the authority under section 54A may prefer an appeal in such form along with such fees, as may be prescribed, to the Appellate Tribunal against the said order within a period of forty-five days from the date of that order.";

(b) in sub-section (3), after the word, brackets and figure "sub- section (1)," the words, brackets, figure and letter "or sub-section (1A)" shall be inserted.

Amendment of section 47.

178. In section 47 of the principal Act, for sub-section (1), the following sub-section shall be substituted with effect from the 1st day of September, 2019, namely:—

"(1) The Appellate Tribunal or any authority may, in order to rectify any mistake apparent on the face of the record, amend any order passed by it under the provisions of this Act, within a period of one year from the end of the month in which such order was passed.".

179. In the principal Act, after section 54, the following sections shall be inserted with effect from the 1st day of September, 2019, namely:—

Insertion of new sections 54A and 54B.

"54A. (1) Any person who fails to,––

(i) comply with summons issued under sub-section (1) of section 19; or

Penalty for failure to comply with notices or furnish informa tion.

(ii) furnish information as required under section 21, shall be liable to pay penalty of twenty-five thousand rupees for each such failure.

(2) The penalty under sub-section (1) shall be imposed by the authority who had issued the summons or called for the information.

(3) No order under sub-section (2) shall be passed by the authority unless the person on whom the penalty is to be imposed has been given an opportunity of being heard:

Provided that no penalty shall be imposed if, such person proves that there were good and sufficient reasons which prevented him from complying with the summons or furnishing information.

Proof of entries in records or documents.

54B. The entries in the records or other documents in the custody of an authority shall be admitted in evidence in any proceedings for the prosecution of any person for an offence under section 3 or this Chapter, as the case may be, and all such entries may be proved either by––

(i) the production of the records or other documents in the custody of the authority containing such entries; or

(ii) the production of a copy of the entries certified by the authority having custody of the records or other documents under its signature stating that it is a true copy of the original entries and that such original entries are contained in the records or other documents in its custody.".

180. In section 55 of the principal Act, with effect from the 1st day of Amendment of section 55.

September, 2019,—

(i) for the word "Board", the words "competent authority" shall be substituted;

(ii) the following Explanation shall be inserted, namely:––

43 of 1961.

'Explanation.––For the purposes of this section, "competent authority" means a Commissioner, a Director, a Principal Commissioner of Income-tax or a Principal Director of Income-tax as defined in clause (16), clause (21), clause (34B) and clause (34C), respectively, of section 2 of the Income-tax Act, 1961.'.

PART IX

AMENDMENT TO THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

181. The provisions of this Part shall come into force on such date as Commencement of this Pa rt.

the Central Government may, by notification in the Official Gazette, appoint.

15 of 1992.

182. In the Securities and Exchange Board of India Act, 1992 (hereafter Amendment of section 14.

in this Part referred to as the principal Act), in section 14,—

(i) in sub-section (2), after clause (c), the following clause shall be

inserted, namely:—

"(d) the capital expenditure, as per annual capital expenditure

plan approved by the Board and the Central Government.";

(ii) after sub-section (2), the following sub-sections shall be inserted,

namely:—

"(3) The Board shall constitute a Reserve Fund and twenty- five per cent. of the annual surplus of the General Fund in any year shall be credited to such Reserve Fund and such fund shall not exceed the total of annual expenditure of preceding two financial years.

(4) After incurring all the expenses referred to in sub-section (2) and transfer to Reserve Fund as specified in sub-section (3), the surplus of the General Fund shall be transferred to the Consolidated Fund of India.".

Amendment of section 15C.

183. In section 15C of the principal Act, after the words "after having been called upon by the Board in writing", the words "including by any means of electronic communication" shall be inserted.

Amendment of section 15F.

184. In section 15F of the principal Act, in sub-clause (a), after the words "one lakh rupees but which may extend to", the words "one crore rupees" shall be inserted.

185. After section 15HA of the principal Act, the following section shall Insertion of new section 15HAA.

be inserted, namely:—

'15HAA. Any person, who—

Penalty for alteration, destruction, etc., of records and failure to protect the electronic database of Board.

(a) knowingly alters, destroys, mutilates, conceals, falsifies, or makes a false entry in any information, record, document (including electronic records), which is required under this Act or any rules or regulations made thereunder, so as to impede, obstruct, or influence the investigation, inquiry, audit, inspection or proper administration of any matter within the jurisdiction of the Board.

Explanation.—For the purposes of this clause, a person shall be deemed to have altered, concealed or destroyed such information, record or document, in case he knowingly fails to immediately report the matter to the Board or fails to preserve the same till such information continues to be relevant to any investigation, inquiry, audit, inspection or proceeding, which may be initiated by the Board and conclusion thereof;

(b) without being authorised to do so, access or tries to access, or denies of access or modifies access parameters, to the regulatory data in the database;

(c) without being authorised to do so, downloads, extracts, copies, or reproduces in any form the regulatory data maintained in the system database;

(d) knowingly introduces any computer virus or other computer contaminant into the system database and brings out a trading halt;

(e) without authorisation disrupts the functioning of system database;

(f) knowingly damages, destroys, deletes, alters, diminishes in value or utility, or affects by any means, the regulatory data in the system database; or

(g) knowingly provides any assistance to or causes any other person to do any of the acts specified in clauses (a) to (f),

shall be liable to a penalty which shall not be less than one lakh rupees but which may extend to ten crore rupees or three times the amount of profits made out of such act, whichever is higher.

21 of 2000.

Explanation.—In this section, the expressions "computer contaminant", "computer virus" and "damage" shall have the meanings respectively assigned to them under section 43 of the Information Technology Act, 2000.

PART X

AMENDMENTS TO THE CENTRAL ROAD AND INFRASTRUCTURE FUND ACT, 2000

54 of 2000.

Amendment of section 10.

186. In the Central Road and Infrastructure Fund Act, 2000 (hereafter in this Part referred to as the principal Act), in section 10, in sub-section (1),—

(a) for clause (iv), the following clause shall be substituted, namely:—

"(iv) formulation of criteria for allocation of funds for development and maintenance of State road projects including the projects of inter-State and economic importance;";

(b) clauses (v) and (vii) shall be omitted.

187. In section 11 of the principal Act, for sub-section (1), the following Amendment of section 11.

sub-section shall be substituted, namely:––

"(1) The share of the Fund to be spent on development and maintenance of State roads, based on the criteria formulated under clause (iv) of sub-section (1) of section 10, shall be allocated in such manner as may be finalised by the Committee referred to in section 7A.".

188. In section 12 of the principal Act, in sub-section (2), clause (c) shall Amendment of section 12.

be omitted.

PART XI

AMENDMENT TO THE FINANCE ACT, 2002

189. In the Finance Act, 2002, in the Eighth Schedule,––

Amendment of Act 20 of 2002.

(a) against Item No. 1, for the entry in column (3), the entry

"Rs.10 per litre" shall be substituted;

(b) against Item No. 2, for the entry in column (3), the entry "Rs.4

per litre" shall be substituted.

PART XII

AMENDMENTS TO THE UNIT TRUST OF INDIA (TRANSFER OF UNDERTAKING AND REPEAL) ACT, 2002

Amendment of Act 58 of 2002.

190. In the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002, in section 13, in sub-section (1), for the words, figures and letters "the 31st day of March, 2019", the words, figures and letters "the 31st day of March, 2021" shall be substituted and shall be deemed to have been substituted with effect from the 1st day of April, 2019.

PART XIII

AMENDMENTS TO THE PREVENTION OF MONEY-LAUNDERING ACT, 2002

191. Clause (iii) of section 187, sections 187A, 190A, 190B, 190C and Commencement of this Pa rt.

190D shall come into force from the 1st day of August, 2019.

15 of 2003.

192. In the Prevention of Money-laundering Act, 2002 (hereafter in this Amendment of section 2.

Part referred to as the principal Act), in section 2, in sub-section (1),––

(i) in clause (n), in sub-clause (i), the word "sub-broker," shall be

omitted;

(ii) in clause (sa), for sub-clause (ii), the following sub-clause shall

be substituted, namely:––

16 of 1908.

''(ii) Inspector-General of Registration appointed under section 3 of the Registration Act, 1908 as may be notified by the Central Government;''.

(iii) in clause (u), the following Explanation shall be inserted,

namely:—

'Explanation.—For the removal of doubts, it is hereby clarified that "proceeds of crime" include property not only derived or obtained from the scheduled offence but also any property which may directly or indirectly be derived or obtained as a result of any criminal activity relatable to the scheduled offence;'.

193. In section 3 of the principal Act, the following Explanation shall Amendment of section 3.

be inserted, namely:—

''Explanation.—For the removal of doubts, it is hereby clarified

that,—

(i) a person shall be guilty of offence of money-laundering if such person is found to have directly or indirectly attempted to indulge or knowingly assisted or knowingly is a party or is actually involved in oneThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 168 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) or more of the following processes or activities connected with proceeds of crime, namely:—

(a) concealment; or

(b) possession; or

(c) acquisition; or

(d) use; or

(e) projecting as untainted property; or

(f) claiming as untainted property;

in any manner whatsoever;

(ii) the process or activity connected with proceeds of crime is a continuingactivity and continues till such time a person is directly or indirectly enjoying the proceeds of crime by its concealment or possession or acquisition or use or projecting it as untainted property or claiming it as untainted property in any manner whatsoever.".

Amendment of section 12A.

194. In section 12A of the principal Act, in sub-section (1), for the words, brackets and figures "sub-section (1) of section 12", the words, figures, letters and brackets "section 11A, sub-section (1) of section 12, sub-section (1) of section 12AA" shall be substituted.

195. After section 12A of the principal Act, the following section shall Insertion of new section 12AA.

be inserted, namely:––

'12AA. (1) Every reporting entity shall, prior to the commencement Enhanced due diligence.

of each specified transaction,—

18 of 2016.

(a) vertify the identity of the clients undertaking such specified transaction by authentication under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 in such manner and subject to such conditions, as may be prescribed:

Provided that where verification requires authentication of a person who is not entitled to obtain an Aadhaar number under the provisions of the said Act, verification to authenticate the identity of the client undertaking such specified transaction shall be carried out by such other process or mode, as may be prescribed;

(b) take additional steps to examine the ownership and financial position, including sources of funds of the client, in such manner as may be prescribed;

(c) take additional steps as may be prescribed to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties.

(2) Where the client fails to fulfil the conditions laid down under sub-section (1), the reporting entity shall not allow the specified transaction to be carried out.

(3) Where any specified transaction or series of specified transactions undertaken by a client is considered suspicious or likely to involve proceeds of crime, the reporting entity shall increase the future monitoring of the business relationship with the client, including greater scrutiny or transactions in such manner as may be prescribed.

(4) The information obtained while applying the enhanced due diligence measures under sub-section (1) shall be maintained for a period of five years from the date of transaction between a client and the

reporting entity.

Explanation.—For the purposes of this section, "specified

transaction" means—

(a) any withdrawal or deposit in cash, exceeding such amount;

(b) any transaction in foreign exchange, exceeding such

amount;

(c) any transaction in any high value imports or remittances;

(d) such other transaction or class of transactions, in the interest of revenue or where there is a high risk or money-laundering or terrorist financing, as may be prescribed.'.

Amendment of section 15.

196. In section 15 of the principal Act, for the words, brackets and figures "sub-section (1) of section 12", the words, figures, letters and brackets

"section 11A, sub-section (1) of section 12 and sub-section (1) of section 12AA" shall be substituted.

197. In section 17 of the principal Act, in sub-section (1), the proviso Amendment of section 17.

shall be omitted.

198. In section 18 of the principal Act, in sub-section (1), the proviso Amendment of section 18.

shall be omitted.

199. In section 44 of the principal Act, in sub-section (1),—

Amendment of section 44.

(i) after clause (b), the following proviso shall be inserted, namely:—

"Provided that after conclusion of investigation, if no offence of moneylaundering is made out requiring filing of such complaint, the said authority shall submit a closure report before the Special Court; or";

(ii) after clause (d), the following Explanation shall be inserted,

namely:—

"Explanation.—For the removal of doubts, it is clarified

that,—

(i) the jurisdiction of the Special Court while dealing with the offence under this Act, during investigation, enquiry or trial

under this Act, shall not be dependent upon any orders passed in respect of the scheduled offence, and the trial of both sets of offences by the same court shall not be construed as joint trial;

(ii) the complaint shall be deemed to include any subsequent complaint in respect of further investigation that

may be conducted to bring any further evidence, oral or documentary, against any accused person involved in respect of the offence, for which complaint has already been filed, whether named in the original complaint or not.".

200. In section 45 of the principal Act, after sub-section (2), the following Amendment of section 45.

Explanation shall be inserted, namely:—

'Explanation.—For the removal of doubts, it is clarified that the expression "Offences to be cognizable and non-bailable" shall mean and shall be deemed to have always meant that all offences under this Act shall be cognizable offences and non-bailable offences notwithstanding anything to the contrary contained in the Code of Criminal Procedure, 1973, and accordingly the officers authorised under this Act are empowered 2 of 1974.

to arrest an accused without warrant, subject to the fulfilment of conditions under section 19 and subject to the conditions enshrined under this section.'.

201. After section 72 of the principal Act, the following section shall be Insertion of new section 72A.

inserted, namely:—

"72A. The Central Government may, by notification, constitute an Inter-ministerial Co-ordination Committee for inter-departmental and inter- Interministerial Co-ordination Committee.

agency co-ordination for the following purposes, namely:—

(a) operational co-operation between the Government, law enforcement agencies, the Financial Intelligence Unit, India and the regulators or supervisors;

(b) policy co-operation and co-ordination across all relevant or competent authorities;

(c) such consultation among the concerned authorities, the financial sector and other sectors, as are appropriate, and are related to anti money-laundering or countering the financing of terrorism laws, regulations and guidelines;

(d) development and implementing policies on anti money- laundering or countering the financing of terrorism; and

(e) any other matter as the Central Government may, by notification, specify in this behalf.".

202. In section 73 of the principal Act, in sub-section (2), after clause Amendment of section 73.

(jj), the following clauses shall be inserted, namely:––

"(jja) the manner and the conditions in which authentication of the identity of clients shall be verified by the reporting entities under clause (a) of sub-section (1) of section 12AA;

(jjb) the manner of identifying the ownership and financial position of the client under clause (b) of sub-section (1) of section 12AA;

(jjc) additional steps to record the purpose behind conducting the specified transaction and the intended nature of the relationship between the transaction parties under clause (c) of sub-section (1) of section 12AA;

(jjd) manner of increasing the future monitoring under sub-section (3) of section 12AA.''.

PART XIV

AMENDMENT TO THE FINANCE (NO. 2) ACT, 2004

203. In section 99 of the Finance (No. 2) Act, 2004, with effect from Amendment of Act 23 of 2004.

the 1st day of September, 2019,––

(I) in clause (a), in sub-clause (ii), for the words "settlement

price", the words "intrinsic value" shall be substituted;

(II) after the proviso, the following Explanation shall be inserted,

namely:––

'Explanation.––For the purposes of this section, the expression "intrinsic value" means the difference between the settlement price and the strike price.'.

PART XV

AMENDMENT TO THE P AYMENT AND SETTLEMENT S YSTEMS ACT, 2007

Amendment of Act 51 of 2007.

204. In the Payment and Settlement Systems Act, 2007, after section 10, the following section shall be inserted with effect from the 1st day of November, 2019, namely:––

Bank, etc. not to impose charge for using electrionic modes of payment.

43 of 1961.

"10A. Notwithstanding anything contained in this Act, no bank or system provider shall impose, whether directly or indirectly, any charge upon a person making or receiving a payment by using the electronic modes of payment prescribed under section 269SU of the Income-tax Act, 1961.".

PART XVI

AMENDMENT TO THE BLACK MONEY (UNDISCLOSED FOREIGN INCOME AND ASSETS) AND IMPOSITION OF TAX ACT, 2015

Amendment of section 2.

22 of 2015.

205. In the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 (hereafter in this Part referred to as the principal Act), in section 2, for clause (2), the following clause shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2015, namely:––

'(2) "assessee" means a person,––

(a) being a resident in India within the meaning of section 6 of the

43 of 1961.

Income-tax Act, 1961 in the previous year; or

43 of 1961.

(b) being a non-resident or not ordinarily resident in India within the meaning of clause (6) of section 6 of the Income-tax Act, 1961 in the previous year, who was resident in India either in the previous year to which the income referred to in section 4 relates; or in the previous year in which the undisclosed asset located outside India was acquired:

Provided that the previous year, in case of acquisition of undisclosed asset outside India, shall be determined without giving effect to the provisions of clause (c) of section 72;'.

206. In section 10 of the principal Act,––

Amendment of section 10.

(i) in sub-section (3), after the word "assess", the words "or reassess" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2015;

(ii) in sub-section (4), after the word "assessment", the words "or reassessment" shall be inserted and shall be deemed to have been inserted with effect from the 1st day of July, 2015.

Amendment of section 17.

207. In the principal Act, in section 17, in sub-section (1), in clause (b), for the words "such order", the words "or vary such order either to enhance or reduce the penalty" shall be substituted with effect from the 1st day of September, 2019.

Amendment of section 84.

208. In the principal Act, in section 84, for the figures "138", the figures and letter "138, 144A" shall be substituted with effect from the 1st day of September, 2019.

PART XVII

AMENDMENT TO THE FINANCE ACT, 2016

28 of 2016.

Amendment of section 187.

209. In the Finance Act, 2016 (hereafter in this Part referred to as the principal Act), in section 187, in sub-section (1), the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:––

"Provided that where the amount of tax, surcharge and penalty, has not been paid within the due date notified under this sub-section, the Central Government may, by notification in the Official Gazette, specify the class of persons, who may, make the payment of such amount on or before such date as may be notified by the Central Government, along with the interest on such amount, at the rate of one per cent. for every month or part of a month comprised in the period commencing on the date immediately following the due date and ending on the date of such payment.".

Amendment of section 191.

210. In section 191 of the principal Act, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 1st day of June, 2016, namely:––

"Provided that the Central Government may, by notification in the Official Gazette, specify the class of persons to whom the amount of tax, surcharge and penalty, paid in excess of the amount payable under this Scheme shall be refundable.".

PART XVIII

AMENDMENT TO THE FINANCE ACT, 2018

Amendment of Act 13 of 2018.

211. In the Finance Act, 2018, in the Sixth Schedule, against Item Nos. 1 and 2, for the entry in column (3), the entry "Rs.10 per litre" shall be substituted.

Repeal.

7 of 2019.

212. Section 2 of the Finance Act, 2019 is hereby repealed and shall be deemed never to have been enacted.

THE FIRST SCHEDULE

(See section 2)

PART I

INCOME-TAX

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax

(1) where the total income does not exceed Nil;

Rs. 2,50,000

(2) where the total income exceeds 5 per cent. of the amount by which the Rs. 2,50,000 but does not exceed total income exceeds Rs. 2,50,000; Rs. 5,00,000

(3) where the total income exceeds Rs.12,500 plus 20 per cent. of the amount by Rs. 5,00,000 but does not exceed which the total income exceeds Rs. 5,00,000; Rs. 10,00,000

(4) where the total income exceeds Rs. 1,12,500 plus 30 per cent. of the amount Rs. 10,00,000 which by the total income exceeds

Rs.10,00,000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—

Rates of income-tax

(1) where the total income does not exceed Nil;

Rs. 3,00,000

(2) where the total income exceeds 5 per cent. of the amount by which the Rs. 3,00,000 but does not exceed total income exceeds Rs. 3,00,000; Rs. 5,00,000

(3) where the total income exceeds Rs.10,000 plus 20 per cent. of the amount by Rs. 5,00,000 but does not exceed which the total income exceeds Rs. 5,00,000; Rs. 10,00,000

(4) where the total income exceeds Rs. 1,10,000 plus 30 per cent. of the amount by Rs. 10,00,000 which the total income exceeds Rs. 10,00,000.

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,—

Rates of income-tax

(1) where the total income does not exceed Nil;

Rs. 5,00,000

(2) where the total income exceeds Rs. 5,00,000 20 per cent. of the amount by which the total but does not exceed Rs. 10,00,000 income exceeds Rs. 5,00,000;

(3) where the total income exceeds Rs. 1,00,000 plus 30 per cent. of the amount Rs. 10,00,000

by which the total income exceeds Rs. 10,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax; and

(b) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding,—

(a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1) where the total income does not exceed 10 per cent. of the total income;

Rs. 10,000

(2) where the total income exceeds Rs.10,000 Rs.1,000 plus 20 per cent. of the amount by but does not exceed Rs. 20,000 which the total income exceeds Rs. 10,000;

(3) where the total income exceeds Rs. 20,000 Rs.3,000 plus 30 per cent. of the amount by

which the total income exceeds Rs. 20,000;

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph C

In the case of every firm,—

Rate of income-tax

On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company,—

(i) where its total turnover or the gross receipt 25% per cent. of the total income ;

in the previous year 2016-2017 does not exceed two hundred and fifty crore rupees;

(ii) other than that referred to in item (i) 30% per cent. of the total income ;

II. In the case of a company other than a domestic company,—

(i) on so much of the total income as consists of,—

(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or

(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in 50 per cent.; either case, been approved by the Central Government

(ii) on the balance, if any, of the total income 40 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union calculated,—

(i) in the case of every domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;

(ii) in the case of every company other than a domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

PART II

RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES

In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D, 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:—

Rate of income-tax 1. In the case of a person other than a company—

(a) where the person is resident in India—

(i) on income by way of interest other than 10 per cent.;

"Interest on securities"

(ii) on income by way of winnings from lotteries, 30 per cent.;

crossword puzzles, card games and other games of any sort

(iii) on income by way of winnings from horse races 30 per cent.;

(iv) on income by way of insurance commission 5 per cent.;

(v) on income by way of interest payable on— 10 per cent.;

Rate of income-tax (A) any debentures or securities for money issued

by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

(B) any debentures issued by a company where

such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

(C) any security of the Central or State Government;

(vi) on any other income

10 per cent.;

(b) where the person is not resident in India—

(i) in the case of a non-resident Indian—

(A) on any investment income 20 per cent.;

(B) on income by way of long-term capital gains 10 per cent.;

referred to in section 115E or sub-clause (iii)

of clause (c) of sub-section (1) of section 112

(C) on income by way of long-term capital gains 10 per cent.;

referred to in section 112A

(D) on other income by way of long-term capital 20 per cent.;

gains [not being long-term capital gains referred

to in clauses (33) and (36) of section 10]

referred to in section 112A exceeding

one lakh rupees

(E) on income by way of short-term capital gains 15 per cent.;

referred to in section 111A

(F) on income by way of interest payable by 20 per cent.;

Government or an Indian concern on moneys

borrowed or debt incurred by Government or the

Indian concern in foreign currency (not being

income by way of interest referred to in

section 194LB or section 194LC)

(G) on income by way of royalty payable by 10 per cent.;

Government or an Indian concern in pursuance

of an agreement made by it with the Government

or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subjectThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 178 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) Rate of income-tax referred to in the first proviso to sub-section (1A) of section115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section115A of the Income-tax Act, to a person resident in India

(H) on income by way of royalty [not being royalty 10 per cent.;

of the nature referred to in sub-item (b)(i)(G)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

(I) on income by way of fees for technical services 10 per cent.;

by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

(J) on income by way of winnings from lotteries, 30 per cent.;

puzzles, card games and other games of any sort

(K) on income by way of winnings from horse races 30 per cent.;

(L) on the whole of the other income 30 per cent.;

(ii) in the case of any other person—

(A) on income by way of interest payable by 20 per cent.;

Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section194LB or section 194LC)

(B) on income by way of royalty payable by 10 per cent.;

Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is inThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 179 Rate of income-tax consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

(C) on income by way of royalty [not being royalty 10 per cent.;

of the nature referred to in sub-item (b)(ii)(B)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

(D) on income by way of fees for technical 10 per cent.;

services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

(E) on income by way of winnings from lotteries, 30 per cent.;

crossword puzzles, card games and other games of any sort

(F) on income by way of winnings from horse races 30 per cent.;

(G) on income by way of short-term capital gains 15 per cent.;

referred to in section 111A

(H) on income by way of long-term capital gains 10 per cent.;

referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

(I) on income by way of long-term capital gains 10 per cent.;

referred to in section 112A exceeding one lakh rupees

(J) on income by way of other long-term capital 20 per cent.;

gains [not being long-term capital gains referred to in clauses (33) and (36) of section 10]

(K) on the whole of the other income 30 per cent.

Rate of income-tax 2. In the case of a company—

(a) where the company is a domestic company—

(i) on income by way of interest other than "Interest on 10 per cent.;

securities"

(ii) on income by way of winnings from lotteries, crossword 30 per cent.;

puzzles, card games and other games of any sort

(iii) on income by way of winnings from horse races 30 per cent.;

(iv) on any other income

10 per cent.;

(b) where the company is not a domestic company—

(i) on income by way of winnings from lotteries, crossword 30 per cent.;

puzzles, card games and other games of any sort

(ii) on income by way of winnings from horse races 30 per cent.;

(iii) on income by way of interest payable by Government 20 per cent.;

or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

(iv) on income by way of royalty payable by Government 10 per cent.;

or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

(v) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(iv)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

(A) where the agreement is made after the 50 per cent.; 31st day of March, 1961 but before the 1st day of April, 1976

(B) where the agreement is made after the 10 per cent.; 31st day of March, 1976This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 181 Rate of income-tax (vi) on income by way of fees for technical services payable

by the Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

(A) where the agreement is made after the 50 per cent.; 29th day of February, 1964 but before the 1st day of April, 1976

(B) where the agreement is made after the 10 per cent.; 31st day of March, 1976

(vii) on income by way of short-term capital gains referred 15 per cent.;

to in section 111A

(viii) on income by way of long-term capital gains referred 10 per cent.;

to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

(ix) on income by way of long-term capital gains referred 10 per cent.;

to in section 112A exceeding one lakh rupees

(x) on income by way of other long-term capital gains 20 per cent.;

[not being long-term capital gains referred to in clauses (33) and (36) of section 10]

(xi) on any other income

40 per cent.

Explanation.—For the purposes of item 1(b)(i) of this Part, "investment income" and "non-resident Indian" shall have the respective meanings assigned to them in Chapter XII-A of the Income-tax Act.

Surcharge on income-tax

The amount of income-tax deducted in accordance with the provisions of––

(i) item 1 of this Part, shall be increased by a surcharge, for the purposes of the Union,–– (a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, being a non-resident, calculated,––

I. at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;

II. at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed two crore rupees;

III. at the rate of twenty-five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds two crore rupees but does not exceed five crore rupees; and

IV. at the rate of thirty-seven per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds five crore rupees;

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent., where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;

(ii) Item 2 of this Part shall be increased by a surcharge, for the purposes of the Union, in the case of every company other than a domestic company, calculated,––

(a) at the rate of two per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees; and

(b) at the rate of five per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

PART III

RATES FOR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER THE HEAD "SALARIES" AND COMPUTING "ADVANCE TAX"

In cases in which income-tax has to be charged under sub-section (4) of section 172 of the Income- tax Act or sub-section (2) of section 174 or section 174A or section 175 or sub-section (2) of section 176 of the said Act or deducted from, or paid on, from income chargeable under the head "Salaries" under section 192 of the said Act or in which the "advance tax" payable under Chapter XVII-C of the said Act has to be computed at the rate or rates in force, such incometax or, as the case may be, "advance tax" [not being "advance tax" in respect of any income chargeable to tax under Chapter XII or Chapter XII- A or income chargeable to tax under section 115JB or section 115JC or Chapter XII-FA or Chapter XII- FB or sub-section (1A) of section 161 or section 164 or section 164A or section 167B of the Income-tax Act at the rates as specified in that Chapter or section or surcharge, wherever applicable, on such "advance tax" in respect of any income chargeable to tax under section 115A or section 115AB or section 115AC or section 115ACA or section 115AD or section 115B or section 115BA or section 115BB or section 115BBA or section 115BBC or section 115BBD or section 115BBDA or section 115BBE or section 115BBF or section 115BBG or section 115E or section 115JB or section 115JC] shall be charged, deducted or computed at the following rate or rates:—

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of this Part applies,—

Rates of income-tax

(1) where the total income does not exceed Nil;

Rs. 2,50,000

(2) where the total income exceeds 5 per cent. of the amount by which the total Rs. 2,50,000 but does not exceed income exceeds Rs. 2,50,000; Rs. 5,00,000

(3) where the total income exceeds Rs. 12,500 plus 20 per cent. of the amount by Rs. 5,00,000 but does not exceed which the total income exceeds Rs. 5,00,000; Rs. 10,00,000

(4) where the total income exceeds Rs. 1,12,500 plus 30 per cent. of the amount by Rs. 10,00,000 which the total income exceeds Rs.10,00,000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—

Rates of income-tax

(1) where the total income does not exceed Nil;

Rs. 3,00,000

(2) where the total income exceeds 5 per cent. of the amount by which the total Rs. 3,00,000 but does not exceed income exceeds Rs. 3,00,000; Rs. 5,00,000

(3) where the total income exceeds Rs. 10,000 plus 20 per cent. of the amount by Rs. 5,00,000 but does not exceed which the total income exceeds Rs. 5,00,000; Rs. 10,00,000

(4) where the total income exceeds Rs. 1,10,000 plus 30 per cent. of the amount by Rs. 10,00,000 which the total income exceeds Rs. 10,00,000.

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,—

Rates of income-tax

(1) where the total income does not exceed Nil;

Rs. 5,00,000

(2) where the total income exceeds 20 per cent. of the amount by which the total Rs. 5,00,000 but does not exceed income exceeds Rs. 5,00,000; Rs. 10,00,000

(3) where the total income exceeds Rs. 1,00,000 plus 30 per cent. of the amount by Rs.10,00,000 which the total income exceeds Rs. 10,00,000.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax;

(b) having a total income exceeding one crore rupees but not exceeding two crore rupees, at the rate of fifteen per cent. of such income-tax;

(c) having a total income exceeding two crore rupees but not exceeding five crore rupees, at the rate of twenty-five per cent. of such income-tax; and

(d) having a total income exceeding five crore rupees, at the rate of thirty-seven per cent. of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding,—

(a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as incometax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees but does not exceed two crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees;

(c) two crore rupees but does not exceed five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees;

(d) five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of five crore rupees by more than the amount of income that exceeds five crore rupees.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1) where the total income does not exceed Rs.10,000 10 per cent. of the total income;

(2) where the total income exceeds Rs.10,000 but Rs. 1,000 plus 20 per cent. of the amount does not exceed Rs. 20,000 by which the total income exceeds

Rs. 10,000

(3) where the total income exceeds Rs. 20,000 Rs. 3,000 plus 30 per cent. of the amount

by which the total income exceeds Rs. 20,000

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph C

In the case of every firm,—

Rate of income-tax

On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income 30 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall, in the case of every local authority, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:

Provided that in the case of every local authority mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Paragraph E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company,—

(i) where its total turnover or the gross receipt 25 per cent. of the total income;

in the previous year 2017-2018 does not

exceed four hundred crore rupees;

(ii) other than that referred to in item (i) 30 per cent. of the total income.

II. In the case of a company other than a domestic company,—

(i) on so much of the total income as consists of,—

(a) royalties received from the Government

or an Indian concern in pursuance of an agreement

made by it with the Government or the Indian concern

after the 31st day of March, 1961 but before the

1st day of April, 1976; or

(b) fees for rendering technical services received

from Government or an Indian concern in

pursuance of an agreement made by it with the

Government or the Indian concern after

the 29th day of February, 1964 but before the

1st day of April, 1976,

and where such agreement has, in either case, been approved 50 per cent.;

by the Government

(ii) on the balance, if any, of the total income 40 per cent.

Surcharge on income-tax

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated,––

(i) in the case of every domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;

(ii) in the case of every company other than a domestic company,––

(a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and

(b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:

Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

PART IV

[See section 2 (13)(c)]

RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME

Rule 1.—Agricultural income of the nature referred to in sub-clause (a) of clause (1A) of section 2 of the Income-tax Act shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from other sources" and the provisions of sections 57 to 59 of that Act shall, so far as may be, apply accordingly:

Provided that sub-section (2) of section 58 shall apply subject to the modification that the reference to section 40A therein shall be construed as not including a reference to sub-sections (3), (3A) and (4) of section 40A.

Rule 2.—Agricultural income of the nature referred to in sub-clause (b) or sub-clause (c) of clause (1A) of section 2 of the Income-tax Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue of the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under that Act under the head "Profits and gains of business or profession" and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections (3), (3A) and (4) thereof], 41, 43, 43A, 43B and 43C of the Income-tax Act shall, so far as may be, apply accordingly.

Rule 3.—Agricultural income of the nature referred to in sub-clause (c) of clause (1A) of section 2 of the Income-tax Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under that Act under the head "Income from house property" and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 4.—Notwithstanding anything contained in any other provisions of these rules, in a case—

(a) where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed in accordance with rule 8 of the Income-tax Rules, 1962, and sixty per cent. of such income shall be regarded as the agricultural income of the assessee;

(b) where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in India, such income shall be computed in accordance with rule 7A of the Income-tax Rules, 1962, and sixty-five per cent. of such income shall be regarded as the agricultural income of the assessee;

(c) where the assessee derives income from sale of coffee grown and manufactured by him in India, such income shall be computed in accordance with rule 7B of the Income-tax Rules, 1962, and sixty per cent. or seventy-five per cent., as the case may be, of such income shall be regarded as the agricultural income of the assessee.

Rule 5.—Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the Income-tax Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6.—Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income:

Provided that where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 8.—(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2019, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2011 or the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018, is a loss, then, for the purposes of sub-section (2) of section 2 of this Act,—

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2011, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 188 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) (iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2016, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2017 or the 1st day of April, 2018,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2017, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2018,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2018,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2019.

(2) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st day of April, 2020, or, if by virtue of any provision of the Income-tax Act, income-tax is to be charged in respect of the income of a period other than the previous year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st day of April, 2012 or the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019, is a loss, then, for the purposes of sub-section (10) of section 2 of this Act,––

(i) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2012, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2013 or the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019, (ii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2013, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2014 or the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,

(iii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2014, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2015 or the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 189 (iv) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2015, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2016 or the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,

(v) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2016, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2017 or the 1st day of April, 2018 or the 1st day of April, 2019,

(vi) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2017, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2018 or the 1st day of April, 2019,

(vii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2018, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st day of April, 2019,

(viii) the loss so computed for the previous year relevant to the assessment year commencing on the 1st day of April, 2019,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st day of April, 2020.

(3) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) or sub-rule (2) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1) or, as the case may be, sub-rule (2).

(4) Notwithstanding anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in the First Schedule to the Finance Act, 2011 (8 of 2011) or the First Schedule to the Finance Act, 2012 (23 of 2012) or the First Schedule to the Finance Act, 2013 (17 of 2013) or the First Schedule to the Finance (No. 2) Act, 2014 (25 of 2014) or the First Schedule to the Finance Act, 2015 (20 of 2015) or the First Schedule to the Finance Act, 2016 (28 of 2016) or the First Schedule to the Finance Act, 2017 (7 of 2017) or the First Schedule to the Finance Act, 2018 (13 of 2018) shall be set off under sub-rule (1) or, as the case may be, sub-rule (2).

Rule 9.—Where the net result of the computation made in accordance with these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 10.—The provisions of the Income-tax Act relating to procedure for assessment (including the provisions of section 288A relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

Rule 11.—For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the Income-tax Act for the purposes of assessment of the total income.

THE SECOND SCHEDULE

[See section 83(1)]

Notification Amendment number and date

Period of effect of amendment (1) (2)

(3) G.S.R. 423 (E), In the said notification, in the Table, against serial 31st March, 2017 dated the 1st June, number 443, in column (2), for the figures "3823 11 90", to 14th September, 2011 [46/2011- the figures "3823 11 00" shall be substituted. 2017 Customs, dated 1st June, 2011]

G.S.R. 499 (E), In the said notification, in the Table, against serial 31st March, 2017 dated the 1st July, number 476, in column (2), for the figures "3823 11 90", to 14th September, 2011 [53/2011- the figures "3823 11 00" shall be substituted. 2017 Customs, dated 1st July, 2011]

G.S.R. 185 (E), In the said notification, in the Table, against serial 31st March, 2017 to dated the 17th March, numbers 230 and 230A, in column (2), for the 30th June, 2017 2012 [12/2012- figures "3823 11 90", the figures "3823 11 00" shall Customs, dated be substituted. 17th March, 2012]This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 191

THE THIRD SCHEDULE

[See section 84(1)]

Notification Amendment number and date

Period of effect of amendment (1) (2)

(3) G.S.R. 785 (E), In the said notification, in the Table, against serial 1st July, 2017 to dated the 30th June, number 251 and 252, in column (2), for the 14th September, 2017 [50/2017- figures "3823 11 90", the figures "3823 11 00" 2017 Customs, dated shall be substituted. 30th June, 2017]This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 192 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) THE FOURTH SCHEDULE

[See section 88(a)]

In the First Schedule to the Customs Tariff Act,—

(1) in Chapter 39, for the entry in column (4) occurring against all the tariff items of heading 3918, the entry "15%" shall be substituted;

(2) in Chapter 68, for the entry in column (4) occurring against all the tariff items of heading 6813, the entry "15%" shall be substituted;

(3) in Chapter 69, for the entry in column (4) occurring against all the tariff items of headings 6905 and 6907, the entry "15%" shall be substituted;

(4) in Chapter 70, for the entry in column (4) occurring against all the tariff items of heading 7009, the entry "15%" shall be substituted;

(5) in Chapter 71,––

(i) for the entry in column (4) occurring against all the tariff items of headings 7106, 7108, 7110 and 7112, the entry "12.5%" shall be substituted;

(ii) for the entry in column (4) occurring against tariff items 7107 00 00, 7109 00 00 and 7111 00 00, the entry "12.5%" shall be substituted;

(6) in Chapter 83,––

(i) for the entry in column (4) occurring against tariff item 8301 20 00, the entry "15%" shall be substituted;

(ii) for the entry in column (4) occurring against all the tariff items of heading 8302, the entry "15%" shall be substituted;

(7) in Chapter 84,––

(i) for the entry in column (4) occurring against tariff item 8415 90 00, the entry "20%" shall be substituted;

(ii) for the entry in column (4) occurring against tariff items 8421 23 00, 8421 31 00, 8421 39 20 and 8421 39 90, the entry "10%" shall be substituted;

(8) in Chapter 85,—

(i) for the entry in column (4) occurring against tariff items 8512 10 00, 8512 20 10, 8512 20 20, 8512 20 90, 8512 30 10, 8512 30 90 and 8512 40 00, the entry "15%" shall be substituted;

(ii) for the entry in column (4) occurring against tariff item 8512 90 00, the entry "10%" shall be substituted;

(iii) for the entry in column (4) occurring against tariff items 8518 21 00 and 8518 22 00, the entry "15%" shall be substituted;

(iv) for the entry in column (4) occurring against tariff item 8521 90 90, the entry "20%" shall be substituted;

(v) for the entry in column (4) occurring against tariff items 8525 80 10, 8525 80 20, 8525 80 30 and 8525 80 90, the entry "20%" shall be substituted;

(vi) for the entry in column (4) occurring against tariff items 8539 10 00, 8539 21 20 and 8539 29 40, the entry "15%" shall be substituted;

(8) in Chapter 87, for the entry in column (4) occurring against all the tariff items of headings 8706 and 8707, the entry "15%" shall be substituted;

(9) in Chapter 90, for the entry in column (4) occurring against tariff item 9001 10 00, the entry "15%" shall be substituted;

(10) in Chapter 98, after Note 6, the following Note shall be inserted, namely :—

"7. Heading 9804 is to be taken not to apply to printed books.".

THE FIFTH SCHEDULE

[See section 88(b)]

In the First Schedule to the Customs Tariff Act,––

Tariff Item Description of goods Unit Rate of duty

Standard Preferential (1) (2)

(3) (4) (5) (1) in Chapter 1, for the entry in column (2) occurring against tariff item 0106 20 00, the following shall be substituted, namely:—

"- Reptiles (including snakes and turtles)";

(2) in Chapter 2,—

(i) for the entry in column (2) occurring against heading 0201, the following shall be substituted, namely:—

"MEAT OF BOVINE ANIMALS,

FRESH OR CHILLED";

(ii) for the entry in column (2) occurring against heading 0207, the following shall be substituted, namely:—

"MEAT AND EDIBLE OFFAL, OF

THE POULTRY OF HEADING 0105,

FRESH, CHILLED OR FROZEN";

(3) in Chapter 3,—

(i) in heading 0303,—

(a) in the entry in column (2) occurring against tariff item 0303 14 00, for the words "Oncorhynchus clarkii", the words "Oncorhynchus clarki" shall be substituted;

(b) in the entry in column (2) occurring after the entry against tariff item 0303 19 00, for the words and bracket "carp (Cyprinus carpio, Carassius carassius, Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti, Leptobarbus hoeveni, Megalobroma spp.", the words and brackets "carp (Cyprinus spp., Carassius spp., Ctenopharyngodon idellus, Hypophthalmichthys spp., Cirrhinus spp., Mylopharyngodon piceus, Catla catla, Labeo spp., Osteochilus hasselti, Leptobarbus hoeveni, Megalobrama spp.)" shall be substituted;

(c) in the entry in column (2) occurring against tariff item 0303 25 00,—

(i) for the words "Cyprinus carpio, Carassius carassius", the words "Cyprinus spp., Carassius spp." shall be substituted;

(ii) for the word "Megalobroma", the word "Megalobrama" shall be substituted;

(d) in the entry in column (2) occurring against tariff item 0303 31 00, for the word "hippoglossidae", the word "hippoglossoides" shall be substituted;

(e) in the entry in column (2) occurring after the entry against tariff item 0303 49 00, for the words and brackets "scads (Decapterusspp.)", the words and brackets "scads (Decapterus spp.)" shall be substituted;

(f) for tariff item 0303 59 00 and the entries relating thereto, the following shall be substituted, namely:—

"0303 59 - - Others:

0303 59 10 - - - Indian mackerels (Rastrelliger spp.) kg. 30% - 0303 59 90 - - - Other

kg. 30% -";

(ii) in heading 0304, in the entry in column (2) occurring against tariff items 0304 42 00 and 0304 82 00, for the words "Oncorhynchus clarkii", the words "Oncorhynchus clarki" shall be substituted;

(iii) in heading 0305,—

(a) in the entry in column (2) occurring against tariff item 0305 32 00, for the word "Uclichthyidae", the word "Euclichthyidae" shall be substituted;

(b) in the entry in column (2) occurring against tariff item 0305 43 00, for the words "Oncorhynchus clarkii", the words "Oncorhynchus clarki" shall be substituted;

(iv) in heading 0306, after tariff item 0306 17 19 and the entries relating thereto, the following shall be inserted, namely:—

"0306 17 20 - - - Vannamei shrimp (Litopenaeus vannamei) kg. 30% - 0306 17 30 - - - Indian white shrimp (Fenneropenaeus indicus) kg. 30% - 0306 17 40 - - - Black tiger shrimp (Penaeus monodon) kg. 30% - 0306 17 50 - - - Flower shrimp (Penaeus semisulcatus) kg. 30% -";

(v) in heading 0308,—

(a) in the entry in column (2), for the words "MOLLUSCS, LIVE, FRESH, CHILLED, DRIED, SALTED OR IN BRINE", the words "MOLLUSCS, LIVE, FRESH, CHILLED, FROZEN, DRIED, SALTED OR IN BRINE" shall be substituted;

(b) for tariff item 0308 90 00 and the entries relating thereto, the following shall be substituted, namely:—

"0308 90 00 - Other kg.

30% -";

(4) in Chapter 4, in heading 0406,—

(i) for the entry in column (2) occurring against tariff item 0406 10 00, the following shall be substituted, namely:—

"- Fresh (unripened or uncured) cheese,

including whey cheese, and curd";

(ii) for the entry in column (2) occurring against tariff item 0406 30 00, the following shall be substituted, namely:—

"- Processed cheese, not grated or powdered";

(5) in Chapter 5, in the entry in column (2) occurring against heading 0506, for the words "DEGELATINISED POWDER", the words "DEGELATINISED; POWDER" shall be substituted;

(6) in Chapter 7,—

(i) in Note 2, for the words "Majorana hartensis", the words "Majorana hortensis" shall be substituted;

(ii) in the entry in column (2) occurring against heading 0705, for the word "LACTUCASATIVA", the words "LACTUCA SATIVA" shall be substituted;

(iii) for tariff item 0709 93 00 and the entries relating thereto, the following shall be substituted, namely:—

"0709 93 - - Pumpkins, squash and gourds (Cucurbita spp.):

0709 93 10 - - - Pumpkins

kg. 30% 20% 0709 93 20 - - - Squash

kg. 30% 20% 0709 93 30 - - - Bitter gourd

kg. 30% 20% 0709 93 40 - - - Bottle gourd

kg. 30% 20% 0709 93 50 - - - Snake gourd

kg. 30% 20% 0709 93 60 - - - Coccinia (Kundru) kg. 30% 20% 0709 93 90 - - - Other

kg. 30% 20%";

(iv) for tariff item 0709 99 20 and the entries relating thereto, the following shall be substituted, namely:—

"0709 99 30 - - - Okra/lady finger (Bhindi) kg. 30% 20%";

(v) for tariff item 0713 10 00 and the entries relating thereto, the following shall be substituted, namely:—

"0713 10 - Peas (Pisum sativum):

0713 10 10 - - - Yellow peas

kg. 50% 40% 0713 10 20 - - - Green peas

kg. 50% 40% 0713 10 90 - - - Other

kg. 50% 40%";

(7) in Chapter 8,—

(i) for tariff item 0804 50 20 and the entries relating thereto, the following shall be substituted, namely:—

"- - - Mangoes, fresh:

0804 50 21 - - - - Alphonso (Hapus) kg. 30% 20% 0804 50 22 - - - - Banganapalli

kg. 30% 20% 0804 50 23 - - - - Chausa

kg. 30% 20% 0804 50 24 - - - - Dasheri

kg. 30% 20% 0804 50 25 - - - - Langda

kg. 30% 20% 0804 50 26 - - - - Kesar

kg. 30% 20% 0804 50 27 - - - - Totapuri

kg. 30% 20% 0804 50 28 - - - - Mallika

kg. 30% 20% 0804 50 29 - - - - Other

kg. 30% 20%";

(ii) for tariff item 0807 19 00 and the entries relating thereto, the following shall be substituted, namely:—

"0807 19 - - Other:

0807 19 10 - - - Musk melons kg. 30% 20% 0807 19 90 - - - Other

kg. 30% 20%";

(iii) in the entry in column (2) occurring against heading 0809, for the words "PLUMS AND SOLES", the words "PLUMS AND SLOES" shall be substituted;

(8) in Chapter 9, for the entry in column (2) occurring against sub-heading 0906 19, the following shall be substituted, namely:—

"- - Other:";

(9) in Chapter 10, for tariff item 1005 90 00 and the entries relating thereto, the following shall be substituted, namely:—

"1005 90 - Other:

- - - Dent corn (Zea mays var. indenta):

1005 90 11 - - - - Yellow kg. 60% - 1005 90 19 - - - - Other

kg. 60% - 1005 90 20 - - - Flint corn (Zea mays var. indurata) kg. 60% - 1005 90 30 - - - Pop corn (Zea mays var. everta) kg. 60% - 1005 90 90 - - - Other

kg. 60% -";

(10) in Chapter 11, after tariff item 1102 90 10 and the entries relating thereto, the following shall be inserted, namely:—

"- - - Rice flour:

1102 90 21 - - - - Brown rice flour kg. 30% - 1102 90 22 - - - - White rice flour kg. 30% - 1102 90 29 - - - - Other

kg. 30% -";

(11) in Chapter 12, in the entry in column (2) occurring against heading 1212, for the words "Ci- chorium intybus sativum", the words "CICHORIUM INTYBUS SATIVUM" shall be substituted;

(12) in Chapter 15,—

(i) for the entry in column (2) occurring against tariff item 1512 19 30, the following shall be substituted, namely:—

"- - - Safflower oil, edible grade";

(ii) for the entry in column (2) occurring against tariff item 1512 19 40, the following shall be substituted, namely:—

"- - - Safflower oil, non-edible grade";

(13) in Chapter 21, in the entry in column (2) occurring against heading 2103, for the words "THEREFOR, MIXED", the words "THEREFOR; MIXED" shall be substituted;

(14) in Chapter 22,—

(i) in Note 1, in clause (a), for the words "products falling thereunder", the words "products of this Chapter" shall be substituted;

(ii) in the entry in column (2) occurring against tariff item 2206 00 00, for the words "MIXTURES OF FERMENTED BEVERAGES AND NON-ALCOHOLIC BEVERAGES", the words "MIXTURES OF FERMENTED BEVERAGES AND MIXTURES OF FERMENTED BEVERAGES AND NON-ALCOHOLIC BEVERAGES" shall be substituted;

(iii) in heading 2208,—

(a) tariff items 2208 20 12, 2208 20 92 and 2208 50 13 and the entries relating thereto shall be omitted;

(b) for tariff item 2208 60 93 and the entries relating thereto, the following shall be substituted, namely:—

"2208 60 00 - Vodka l 150% -":

(15) in Chapter 25, in Note 2, in clause (b), for the words "evaluated at", the words "evaluated as" shall be substituted;

(16) in Chapter 26,—

(i) in Note 3, in clause (a), for the words "excluding slag, ash and residues", the words "excluding ash and residues" shall be substituted;

(ii) in heading 2620,—

(a) for the tariff item 2620 19 00 and the entries relating thereto, the following shall be substituted, namely:—

"2620 19 - - Other:

2620 19 10 - - - Zinc dross kg. 10% -

2620 19 90 - - - Other kg. 10% -";

(b) for the tariff item 2620 29 00 and the entries relating thereto, the following shall be substituted, namely:—

"2620 29 - - Other:

2620 29 10 - - - Lead dross kg. 5% -

2620 29 90 - - - Other kg. 5% -";

(17) in Chapter 27,—

(i) for the Supplementary Note, the following Supplementary Note shall be substituted, namely:—

"Supplementary Note:

In this Chapter, reference to any standard of the Bureau of Indian Standards refers to the last published version of that standard.

Illustration : IS 1459 refers to IS 1459: 2018 and not to IS 1459: 1974.";

(ii) in the entry in column (2) occurring against heading 2707, for the words "COAL TAR SIMILAR PRODUCTS", the words "COAL TAR; SIMILAR PRODUCTS" shall be substituted;

(iii) in heading 2710,—

(a) for sub-heading 2710 12, tariff items 2710 12 11 to 2710 12 90, sub-heading 2710 19 and tariff items 2710 19 10 to 2710 20 00 and the entries relating thereto, the following shall be substituted, namely:—

"2710 12 - - Light oils and preparations:

- - - Naphtha:

2710 12 21 - - - - Light naphtha kg. 10% - 2710 12 22 - - - - Heavy naphtha kg. 10% - 2710 12 29 - - - - Full range naphtha kg. 10% - - - - Solvent 60/80, solvent 50/120 and solvent 145/205 (petroleum hydrocarbon solvents) as specified under standard IS 1745:

2710 12 31 - - - - Solvent 60/80 kg. 10% - 2710 12 32 - - - - Solvent 50/120 kg. 10% - 2710 12 39 - - - - Solvent 145/205 kg. 10% - - - - Motor gasoline conforming to

standard IS 2796, IS 17021 or

IS 17076:

2710 12 41 - - - - Motor gasoline conforming to kg. 10% -

standard IS 2796

2710 12 42 - - - - E 20 fuel conforming to standard kg. 10% -

IS 17021

2710 12 49 - - - - M15 fuel conforming to standard kg. 10% -

IS 17076

2710 12 50 - - - Aviation gasoline conforming to kg. 10% -

standard IS 1604

2710 12 90 - - - Other

kg. 10% - 2710 19 - - Other:

2710 19 20 - - - Solvent 125/240 (petroleum kg. 10% -

hydrocarbon solvent) as specified under standard IS 1745

- - - Kerosene intermediate and oils

obtained from kerosene

intermediate:

2710 19 31 - - - - Kerosene intermediate kg. 10% - 2710 19 32 - - - - Kerosene conforming to standard kg. 10% -

IS 1459

2710 19 39 - - - - Aviation turbine fuels, kerosene kg. 10% -

type conforming to standard IS 1571

- - - Gas oil and oils obtained from gas oil:

2710 19 41 - - - - Gas oil

kg. 10% -This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 199 2710 19 42 - - - - Vacuum gas oil kg. 10% - 2710 19 43 - - - - Light diesel oil conforming to kg. 10% -

standard IS 15770

2710 19 44 - - - - Automotive diesel fuel, not kg. 10% -

containing biodiesel, conforming to

standard IS 1460

2710 19 49 - - - - High flash high speed diesel fuel kg. 10% -

conforming to standard IS 16861

- - - Fuel oils conforming to standard

IS 1593:

2710 19 51 - - - - Grade LV kg. 10% - 2710 19 52 - - - - Grade MV1 kg. 10% - 2710 19 53 - - - - Grade MV2 kg. 10% - 2710 19 59 - - - - Grade HV kg. 10% - - - - Fuels (Class F) or marine fuels

conforming to standard IS 16731:

2710 19 61 - - - - Distillate oil kg. 10% - 2710 19 69 - - - - Residual oil kg. 10% - - - - Base oil and lubricating oil:

2710 19 71 - - - - Base oil

kg. 10% - 2710 19 72 - - - - Engine oil (internal combustion kg. 10% -

engine crankcase oils) conforming to standard IS 13656

2710 19 73 - - - - Engine oil conforming to standard kg. 10% -

IS 14234

2710 19 74 - - - - Automotive gear oil conforming to kg. 10% -

standard IS 1118

2710 19 75 - - - - Industrial gear oil conforming to kg. 10% -

standard IS 8406

2710 19 76 - - - - General purpose machinery and kg. 10% -

spindle oils conforming to standard IS 493

2710 19 77 - - - - Turbine lubricating oil conforming to kg. 10% -

standard IS 1012

2710 19 78 - - - - Other lubricating oil, conforming to kg. 10% -

any other BIS standard

2710 19 79 - - - - Other lubricating oil, not conforming kg. 10% -

to any BIS standard

- - - Cutting oil, hydraulic oil, industrial

white oil, jute batching oil, mineral

oil for cosmetic industry, transformer

oil:

2710 19 81 - - - - Cutting oil conforming to standard kg. 10% -

IS 1115

2710 19 82 - - - - Cutting oil (neat) conforming to kg. 10% -

standard IS 3065

2710 19 83 - - - - Hydraulic oil conforming to standard kg. 10% -

IS 3098 or IS 11656

2710 19 84 - - - - Industrial white oil conforming to kg. 10% -

standard IS 1083

2710 19 85 - - - - Insulating oil for transformer and kg. 10% -

circuit-breaker (transformer and circuit-breaker oils) conforming to standard IS 335 or IS 12463

2710 19 86 - - - - Mineral oil for cosmetic industry kg. 10% -

conforming to standard IS 7299

2710 19 87 - - - - Jute batching oil conforming to kg. 10% -

standard IS 1758

2710 19 88 - - - - Other cutting oil, hydraulic oil, kg. 10% -

industrial white oil, jute batching oil, mineral oil for cosmetic industry, transformer oil conforming to any other BIS standard

2710 19 89 - - - - Other cutting oil, hydraulic oil, kg. 10% -

industrial white oil, jute batching oil, mineral oil for cosmetic industry, transformer oil, not conforming to any BIS standard

2710 19 90 - - - Other

kg. 10% - 2710 20 - Petroleum oils and oils obtained from bituminous minerals (other than crude) and preparations not elsewhere specified or included, containing by weight 70 % or more of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, containing biodiesel, other than waste oils:

2710 20 10 - - - Automotive diesel fuel, containing kg. 10% -

biodiesel, conforming to standard

IS 1460

2710 20 20 - - - Diesel fuel blend (B6 to B20) kg. 10% -

conforming to standard IS 16531

2710 20 90 - - - Other

kg. 10% -";

(b) for the entry in column (2) occurring against tariff item 2710 99 00, the following shall be substituted namely:—

"- - Other" ;

(iv) in heading 2711, for tariff item 2711 19 00 and the entries relating thereto, the following shall be substituted, namely:—

"2711 19 - - Other:

2711 19 10 - - - LPG (for non-automotive purposes) kg. 10% -

conforming to standard IS 4576

2711 19 20 - - - LPG (for automotive purposes) kg. 10% -

conforming to standard IS 14861

2711 19 90 - - - Other

kg. 10% -";

(v) in heading 2713, for tariff items 2713 11 00 and 2713 12 00 and the entries relating thereto, the following shall be substituted, namely:—

"2713 11 - - Not calcined:

2713 11 10 - - - Raw petroleum coke for anode kg. 10% -

making in aluminium industry conforming to standard IS 17049

2713 11 90 - - - Other

kg. 10% - 2713 12 - - Calcined:

2713 12 10 - - - Calcined petroleum coke for anode kg. 10% -

making in aluminium industry conforming to standard IS 17049

2713 12 90 - - - Other

kg. 10% -";

(18) in Chapter 28,—

(i) in Note 3, in clause (e), for the words and figures "of heading 3813, ink removers", the words and figures "of heading 3813; ink removers" shall be substituted;

(ii) for the entry in column (2) occurring against tariff item 2836 30 00, the following shall be substituted, namely:—

"- Sodium hydrogencarbonate (sodium bicarbonate)";

(19) in Chapter 29,—

(i) in Note 5, in clause (C), in paragraph (1), for the words "compound; and", the word "compound;" shall be substituted;

(ii) in Note 7, for the words "thioaldehydes anhydrides", the words "thioaldehydes, anhydrides" shall be substituted;

(iii) after tariff item 2901 29 20 and the entries relating thereto, the following shall be inserted, namely:—

"2901 29 30 - - - Dihydromyrcene kg. 10% - 2901 29 40 - - - Tetradecene

kg. 10% -";

(iv) in heading 2902,—

(a) for tariff item 2902 19 00 and the entries relating thereto, the following shall be substituted, namely:—

"2902 19 - - Other:

2902 19 10 - - - Cyclopropyl actetylene kg. 10% - 2902 19 90 - - - Other

kg. 10% -";

(b) after tariff item 2902 90 50 and the entries relating thereto, the following shall be inserted, namely:—

"2902 90 60 - - - N-propyl benzene kg. 10% -";

(v) in heading 2904, tariff item 2904 10 40 and the entries relating thereto, shall be omitted;

(vi) in heading 2905,—

(a) after tariff item 2905 22 40 and the entries relating thereto, the following shall be inserted, namely:—

"2905 22 50 - - - Dihydromyrcenol kg. 10% -";

(b) after tariff item 2905 39 10 and the entries relating thereto, the following shall be inserted, namely:—

"2905 39 20 - - - Hexylene glycol kg. 10% -";

(vii) in heading 2907, after tariff item 2907 29 10 and the entries relating thereto, the following shall be inserted, namely:—

"2907 29 20 - - - Tris (p-hydroxy phenyl) ethane kg. 10% - 2907 29 30 - - - Tertiary butyl hydroquinone kg. 10% -";

(viii) in heading 2909,—

(a) for tariff item 2909 19 00 and the entries relating thereto, the following shall be substituted, namely:—

"2909 19 - - Other:

2909 19 10 - - - Tertiary amyl methyl ether kg. 10% - 2909 19 20 - - - Methyl tertiary butyl ether (MTBE) kg. 10% - 2909 19 90 - - - Other

kg. 10% -";

(b) for the entry in column (2) occurring against tariff item 2909 41 00, the following shall be substituted, namely:—

"- - 2,2'-oxydiethanol (diethylene glycol, digol)";

(c) for tariff item 2909 49 00 and the entries relating thereto, the following shall be substituted, namely:—

"2909 49 - - Other:

2909 49 10 - - - Phenoxy ethanol kg. 10% - 2909 49 20 - - - 1-(4-phenoxyphenoxy) propan-2-ol kg. 10% - 2909 49 30 - - - Meta phenoxy benzyl alcohol kg. 10% -

(MPBA)

2909 49 90 - - - Other

kg. 10% -";

(d) after tariff item 2909 50 30 and the entries relating thereto, the following shall be inserted, namely:—

"2909 50 40 - - - 4-methoxy phenol (mono methyl ether kg. 10% -

of hydroquinone

"2909 50 50 - - - Butylated hydroxyanisole (BHA) kg. 10% -";

(ix) in heading 2912, after tariff item 2912 29 20 and the entries relating thereto, the following shall be inserted, namely:—

"2912 29 30 - - - Hexyl cinnamic aldehyde kg. 10% -";

(x) in heading 2914,—

(a) after tariff item 2914 29 22 and the entries relating thereto, the following shall be inserted, namely:—

"2914 29 30 - - - Pentyl-2-cyclopenten-1-one kg. 10% - 2914 29 40 - - - Cyclohexane dione kg. 10% - 2914 29 50 - - - 7-acetyl, 1,2,3,4,5,6,7,8-octahydro, kg. 10% - " ;

1,1, 6, 7-tetra methyl

Naphthalene / 1-(2,3,8,8- tetramethyl-1,2,3,4,5,6,7,8- octahydronaphthalen-2-yl) ethanone

(b) after tariff item 2914 79 20 and the entries relating thereto, the following shall be inserted, namely:—

"2914 79 30 - - - Tri fluoro methyl acetophenone kg. 10% - 2914 79 40 - - - Chloro-4-(4-chloro phenoxy) kg. 10% -

acetophenone

2914 79 50 - - - Dichloroacetophenone kg. 10% -";

(xi) in heading 2915,—

(a) after tariff item 2915 39 60 and the entries relating thereto, the following shall be inserted, namely:—

"2915 39 70 - - - Ortho tertiary butyl cyclohexyl acetate kg. 10% - 2915 39 80 - - - Para tertiary butyl cyclohexyl acetate kg. 10% -";

(b) for tariff item 2915 39 90 and the entries relating thereto, the following shall be substituted, namely:—

"- - - Other:

2915 39 91 - - - - Methyl cyclohexyl acetate kg. 10% - 2915 39 92 - - - - Ethylene glycol mono ethyl ether kg. 10% -

acetate

2915 39 99 - - - - Other

kg. 10% -";

(c) for tariff items 2915 90 20 to 2915 90 90 and the entries relating thereto, the following shall be substituted, namely:—

"2915 90 40 - - - Pivaloyl chloride kg. 10% - 2915 90 50 - - - N-valeryl chloride kg. 10% - 2915 90 60 - - - N-octanoyl chloride kg. 10% - 2915 90 70 - - - Neodecanoyl chloride kg. 10% - - - - Other:

2915 90 91 - - - - Hexoic acid (caproic acid) kg. 10% - 2915 90 92 - - - - Octoic acid (caprylic acid) kg. 10% - 2915 90 93 - - - - Tri fluoro acetic acid kg. 10% - 2915 90 94 - - - - Ethyl difluoro acetate kg. 10% - 2915 90 95 - - - - Ethyl trifluoro acetate kg. 10% - 2915 90 99 - - - - Other

kg. 10% -";

(xii) in heading 2916,—

(a) after tariff item 2916 19 60 and the entries relating thereto, the following shall be inserted, namely:—

"2916 19 70 - - - Erucic acid

kg. 10% -";

(b) for tariff item 2916 20 00 and the entries relating thereto, the following shall be substituted, namely:—

"2916 20 - Cyclanic, cyclenic or cycloterpenic

monocarboxylic acids, their anhydrides,

halides, peroxides, peroxyacids and their

derivatives:

2916 20 10 - - - D. V. acid chloride/cypermethric kg. 10% -

acid chloride

2916 20 90 - - - Other

kg. 10% -";

(c) after tariff item 2916 39 50 and the entries relating thereto, the following shall be inserted, namely:—

"2916 39 60 - - - Dichlorophenyl acetyl chloride kg. 10% -";

(xiii) in heading 2917,—

(a) for tariff item 2917 13 00 and the entries relating thereto, the following shall be substituted, namely:—

"2917 13 - - Azelaic acid, sebacic acid, their

salts and esters:

2917 13 10 - - - Sebacic Acid kg. 10% - 2917 13 90 - - - Other

kg. 10% -";

(b) in the entry in column (2) occurring against tariff item 2917 20 00, for the word "polycaroxylic", the word "polycarboxylic" shall be substituted;

(xiv) in heading 2918,—

(a) for the entry in column (2) occurring against sub-heading 2918 19, the following shall be substituted, namely:—

"- - Other:";

(b) after tariff item 2918 19 10 and the entries relating thereto, the following shall be inserted, namely:—

"2918 19 20 - - - Cholic acid kg. 10% - 2918 19 30 - - - Ricinoleic acid kg. 10% -";

(c) after tariff item 2918 23 30 and the entries relating thereto, the following shall be inserted, namely:—

"2918 23 40 - - - Benzyl salicylate kg. 10% -";

(d) after tariff item 2918 30 40 and the entries relating thereto, the following shall be inserted, namely:—

"2918 30 50 - - - Fluoro benzoyl butyric acid kg. 10% -";

(e) for tariff item 2918 99 00 and the entries relating thereto, the following shall be substituted, namely:—

"2918 99 - - Other:

2918 99 10 - - - Sodium phenoxy acetate kg. 10% - 2918 99 20 - - - Methyl (E)-2-[2-(chloro methyl) kg. 10% -

phenyl]-3- methoxyacrylate

2918 99 90 - - - Other

kg. 10% -";

(xv) in heading 2920, for tariff item 2920 90 99 and the entries relating thereto, the following shall be substituted, namely:—

"2920 90 00 - Other

kg. 10% -";

(xvi) in heading 2921,––

(a) for tariff items 2921 42 15 to 2921 42 24 and the entries relating thereto, the following shall be substituted, namely:—

"2921 42 15 - - - - 2 - 4 - 5 trichloroaniline kg. 10% - - - - N-benzyl-N-ethylaniline,

N,N-diethylaniline,

N,N-dimethylaniline, meta

nitroaniline, para nitroaniline:

2921 42 21 - - - - N-benzyl-N-ethylaniline kg. 10% - 2921 42 22 - - - - N,N-diethylaniline kg. 10% - 2921 42 23 - - - - N,N-dimethylaniline kg. 10% - 2921 42 24 - - - - N-ethyl aniline kg. 10% -";

(b) for tariff items 2921 43 10 to 2921 43 20 and the entries relating thereto, the following shall be substituted, namely:—

"2921 43 10 - - - N,N-diethyl toluidine kg. 10% - 2921 43 20 - - - N,N-dimethyl toluidine kg. 10% -";

(c) after tariff item 2921 49 10 and the entries relating thereto, the following shall be inserted, namely:—

"2921 49 20 - - - Para cumidine kg. 10% -";

(d) after tariff item 2921 59 30 and the entries relating thereto, the following shall be inserted, namely:—

"2921 59 40 - - - Diaminostilbene 2,2-disulphonic acid kg. 10% - " ;

(Dasda)

(xvii) in heading 2922,—

(a) for the entry in column (2) occurring against sub-heading 2922 11, the following shall be substituted, namely:—

"- - Monoethanolamine and its salts:";

(b) in the entry in column (2) occurring after the entry against tariff item 2922 29 26, after the words, brackets and letter "Picramic acid (T-grade)", the words ", para cresidine ortho sulphonic acid" shall be inserted;

(c) after tariff item 2922 29 35 and the entries relating thereto, the following shall be inserted, namely:—

"2922 29 36 - - - - Para cresidine ortho sulphonic acid kg. 10% -";

(xviii) in heading 2930, after tariff item 2930 90 97 and the entries relating thereto, the following shall be inserted, namely :—

"2930 90 98 - - - - Dichloro diphenyl sulphone kg. 10% -";

(xix) in heading 2932, for tariff item 2932 99 00 and the entries relating thereto, the following shall be substituted, namely:—

"2932 99 - - Other:

2932 99 10 - - - Cineole

kg. 10% -

2932 99 90 - - - Other

kg. 10% -";

(xx) in heading 2933,—

(a) for tariff item 2933 19 90 and the entries relating thereto, the following shall be substituted, namely:—

"- - - Other:

2933 19 91 - - - - Fluoro-3-(difluoromethyl)-1-methyl- kg. 10% -

1h-pyrazole-4-carbonyl fluoride

2933 19 99 - - - - Other

kg. 10% -";

(b) tariff item 2933 39 17 and the entries relating thereto, shall be omitted;

(c) after tariff item 2933 69 10 and the entries relating thereto, the following shall be inserted, namely:—

"2933 69 20 - - - 4-[4,6-bis(2,4-dimethylphenyl)-1,3,5- kg. 10% -

triazine-2-yl]-1,3-benzenediol

2933 69 30 - - - Tris(2-hydroxyethyl) isocyanurate kg. 10% - 2933 69 40 - - - Ethylhexyltriazone kg. 10% - 2933 69 50 - - - 2,4,6-tri(2,4-dyhydroxyl-3-methylphenyl)- kg. 10% -";

1,3,5-triazine

(d) for tariff item 2933 79 00 and the entries relating thereto, the following shall be substituted, namely:—

"2933 79 - - Other lactams :

2933 79 10 - - - N-methyl-2-pyrrolidone kg. 10% - 2933 79 20 - - - N-ethyl-2-pyrrolidone kg. 10% - 2933 79 90 - - - Other

kg. 10% -";

(e) in the entry in column (2) occurring against tariff item 2933 91 00, for the words, brackets and letters "flunitrzepam (INN), flurazepam (INN), halazaepam (INN)", the words, brackets and letters "flunitrazepam (INN), flurazepam (INN), halazepam (INN)" shall be substituted;

(f) for tariff item 2933 99 00 and the entries relating thereto, the following shall be substituted, namely:—

"2933 99 - - Other:

2933 99 10 - - - Imidazo pyridine methyl amine kg. 10% - 2933 99 90 - - - Other

kg. 10% -";

(xxi) in heading 2934,—

(a) in the entry in column (2) occurring against tariff item 2934 91 00, for the word "claxazolam", the word "cloxazolam" shall be substituted;

(b) for tariff item 2934 99 00 and the entries relating thereto, the following shall be substituted, namely:—

"2934 99 - - Other:

2934 99 10 - - - Chloro thiophene-2-carboxylic acid kg. 10% - 2934 99 20 - - - Morpholine kg. 10% - 2934 99 90 - - - Other

kg. 10% -";

(xxii) in heading 2937, in the entry in column (2) occurring against tariff item 2937 21 00, for the words and brackets "prednisone, (dehydrocortisone)", the words and brackets "prednisone (dehydrocortisone)" shall be substituted;

(xxiii) in heading 2939,—

(a) for the entry in column (2) occurring against tariff item 2939 19 00, the following shall be substituted, namely:—

"- - Other";

(b) for tariff item 2939 79 00 and the entries relating thereto, the following shall be substituted, namely:—

"2939 79 - - Other:

2939 79 10 - - - Nicotine

kg. 10% - 2939 79 90 - - - Other

kg. 10% -";

(20) in Chapter 30,—

(i) in heading 3004, in the entry in column (2) occurring after the entry against tariff item 3004 20 99, for the words "hormones and other products", the words "hormones or other products" shall be substituted;

(ii) in heading 3006, in the entry in column (2) occurring against sub-heading 3006 60, for the words "hormones, or other products", the words "hormones, on other products" shall be substituted;

(21) in Chapter 31, in Note 1, in clause (c), for the brackets, words, figures and letter "(other than optical elements weighing not less than 2.5 g. each, of heading 3824)", the brackets, words, figures and letter "(other than optical elements) weighing not less than 2.5 g. each, of heading 3824" shall be substituted;

(22) in Chapter 32,—

(i) in heading 3204, in the entry in column (2) occurring against sub-heading 3204 15, for the words "preparations thereon", the words "preparations based thereon" shall be substituted;

(ii) in the entry in column (2) occurring against heading 3207, for the words "CERAMIC ENAMELLING", the words "CERAMIC, ENAMELLING" shall be substituted;

(23) in Chapter 33,—

(i) in heading 3301, for the entry in column (2) occurring after the entry against tariff item 3301 30 10, the following shall be substituted;

"- - - Other:"

(ii) in the entry in column (2) occurring against heading 3307, for the words "INCLUDED, PREPARED", the words "INCLUDED; PREPARED" shall be substituted;

(24) in Chapter 34, in heading 3402,—

(i) in the entry in column (2) occurring against heading 3402, for the brackets and words "(OTHER THAN SOAP), SURFACE-ACTIVE PREPARATIONS", the brackets and words "(OTHER THAN SOAP); SURFACE-ACTIVE PREPARATIONS" shall be substituted;

(ii) for the entry in column (2) occurring against sub-heading 3402 90, the following shall be substituted;

"- Other:"

(25) in Chapter 37, in the entry in column (2) occurring against heading 3703, for the words "TEXTILES SENSITISED", the words "TEXTILES, SENSITISED" shall be substituted;

(26) in Chapter 38,—

(i) in Sub-heading Note 3, for the brackets and words "(pchlorophenyl)ethane", the brackets and words "(p-chlorophenyl)ethane" shall be substituted;

(ii) Supplementary Notes shall be omitted;

(iii) in heading 3804,—

(a) in the entry in column (2), for the words "LYES FOR", the words "LYES FROM" shall be substituted;

(b) in the entry in column (2) occurring against sub-heading 3804 00, for the words "lyes for", the words "lyes from" shall be substituted;

(iv) in heading 3808,—

(a) for the entry in column (2) occurring against sub-heading 3808 92, the following shall be substituted, namely:—

"- - Fungicides:";

(b) in the entry in column (2) occurring against sub-heading 3808 93, for the words "plant-growth regulated ", the words "plant-growth regulators" shall be substituted;

(v) in heading 3824,—

(a) after tariff item 3824 88 00 and the entries relating thereto, the following shall be inserted, namely:—

"- Other:";

(b) for sub-heading 3824 99 and tariff items 3824 99 11 to 3824 99 90 and the entries relating thereto, the following shall be substituted, namely:—

"3824 99 00 - - Other

kg. 10% -";

(27) in Chapter 39,—

(i) in heading 3901,—

(a) for tariff item 3901 10 10 and the entries relating thereto, the following shall be substituted, namely:—

"3901 10 10 - - - Linear low density polyethylene kg. 10% -

(LLDPE), in which ethylene monomer

unit contributes 95 % or more by

weight of the total polymer content

3901 10 20 - - - Low density polyethylene (LDPE) kg. 10% -";

(b) for tariff item 3901 40 00, sub-heading 3901 90 and tariff items 3901 90 10 to 3901 90 90 and the entries relating thereto, the following shall be substituted, namely:—

"3901 40 - Ethylene-alpha-olefin copolymers,

having a specific gravity of less

than 0.94:

3901 40 10 - - - Linear low density polyethylene kg. 10% -

(LLDPE), in which ethylene monomer unit contributes less than 95 % by

weight of the total polymer content

3901 40 90 - - - Other

kg. 10% - 3901 90 00 - Other

kg. 10% -";

(ii) in heading 3904,—

(a) for tariff items 3904 40 00 to 3904 50 10 and the entries relating thereto, the following shall be substituted, namely:—

"3904 40 00 - Other vinyl chloride copolymers kg. 10% - 3904 50 - Vinylidene chloride polymers :

3904 50 10 - - - Copolymer of vinylidene chloride with kg. 10% -";

acrylonitrite, in the form of expansible beads of a diameter of 4 micrometers

or more but not more than 20 micrometers

(b) for tariff item 3904 90 00 and the entries relating thereto, the following shall be substituted, namely:—

"3904 90 - Other:

3904 90 10 - - - Chlorinated poly vinyl chloride (CPVC) kg. 10% -

resin

3904 90 90 - - - Other

kg. 10% -";

(iii) in heading 3906, for tariff items 3906 90 10 to 3906 90 30 and the entries relating thereto, the following shall be substituted, namely:—

"3906 90 40 - - - Poly (acrylic acid) kg. 10% - 3906 90 50 - - - Polyacrylonitrile (PAN) kg. 10% - 3906 90 60 - - - Copolymers of acrylonitrile kg. 10% - 3906 90 70 - - - Sodium polyacrylate kg. 10% -";

(iv) in heading 3907,—

(a) for tariff item 3907 61 00 and the entries relating thereto, the following shall be substituted, namely:—

"3907 61 - - Having a viscosity number of

78 ml/g or higher:

3907 61 10 - - - PET flake (chip) kg. 10% - 3907 61 90 - - - Other primary form kg. 10% -";

(b) for tariff items 3907 69 10 to 3907 69 90 and the entries relating thereto, the following shall be substituted, namely:—

"3907 69 30 - - - PET flake (chip) kg. 10% - 3907 69 90 - - - Other primary form kg. 10% -";

(c) for sub-heading 3907 99 and tariff items 3907 99 10 to 3907 99 90 and the entries relating thereto, the following shall be substituted, namely:—

"3907 99 00 - - Other

kg. 10% -";

(v) in heading 3908, for tariff items 3908 10 10 to 3908 10 90, sub-heading 3908 90 and tariff items 3908 90 10 to 3908 90 90 and the entries relating thereto, the following shall be substituted, namely:—

"- - - Polyamide -6 (Nylon-6):

3908 10 11 - - - - Flake (chip) kg. 10% - 3908 10 19 - - - - Other primary form kg. 10% - - - - Polyamide -11 (Nylon-11):

3908 10 21 - - - - Flake (chip) kg. 10% - 3908 10 29 - - - - Other primary form kg. 10% - - - - Polyamide -12 (Nylon-12):

3908 10 31 - - - - Flake (chip) kg. 10% - 3908 10 39 - - - - Other primary form kg. 10% - - - - Polyamide -6,6 (Nylon-6,6):

3908 10 41 - - - - Flake(chip) kg. 10% - 3908 10 49 - - - - Other primary form kg. 10% -This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 212 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) - - - Polyamide -6,9 (Nylon-6,9):

3908 10 51 - - - - Flake (chip) kg. 10% - 3908 10 59 - - - - Other primary form kg. 10% - - - - Polyamide -6,10 (Nylon-6,10):

3908 10 61 - - - - Flake (chip) kg. 10% - 3908 10 69 - - - - Other primary form kg. 10% - - - - Polyamide -6,12 (Nylon-6,12):

3908 10 71 - - - - Flake (chip) kg. 10% - 3908 10 79 - - - - Other primary form kg. 10% - 3908 90 00 - Other

kg. 10% -";

(vi) in heading 3911, in the entry in column (2) occurring against sub-heading 3911 10, for the words "Petroleum resins, coumarone-indene", the words "Petroleum resins, coumarone, indene" shall be substituted;

(vii) in heading 3920, for sub-heading 3920 91 and tariff items 3920 91 11 to 3920 91 19 and the entries relating thereto, the following shall be substituted, namely:—

"- Of other plastics:

3920 91 - - Of poly (vinyl butyral):

3920 91 10 - - - Rigid, plain kg. 10% - 3920 91 20 - - - Flexible, plain kg. 10% - 3920 91 90 - - - Other

kg. 10% -";

(28) in Chapter 40,—

(i) in Note 5, in clause (B), in paragraph (iii), for the word "vulcanised", the word "stabilisers" shall be substituted;

(ii) in heading 4010,—

(a) for the entry in column (2) occurring against sub-heading 4010 31, the following shall be substituted, namely:—

"- - Endless transmission belts of trapezoidal cross-section (V-belts), V-ribbed, of an

outside circumference exceeding 60 cm but not exceeding 180 cm:";

(b) for the entry in column (2) occurring against sub-heading 4010 33, the following shall be substituted, namely:—

"- - Endless transmission belts of

trapezoidal crosssection (V-belts),

V-ribbed, of an outside circumference

exceeding 180 cm but not exceeding

240 cm:";

(29) in Chapter 42, in Note 2, in clause (f), for the word "rigid-crops", the word "riding-crops" shall be substituted;

(30) in Chapter 44,—

(i) in Note 1, in clause (m), for the word and figures "Section XVII", the word and figures "Section XVIII" shall be substituted;

(ii) in Supplementary Note 1, for the letters and figures "IS : 710-1976", the letters and figures "IS 710" shall be substituted;

(iii) in Supplementary Note 2, for the letters and figures "IS : 709-1974 and IS : 4859- 1968", the letters and figures "IS 709 and IS 4859" shall be substituted;

(iv) in heading 4402, for sub-heading 4402 10 and tariff item 4402 10 10 and the entries relating thereto, the following shall be substituted, namely:—

"4402 10 00 - Of bamboo mt 5% -";

(31) in Chapter 46, in heading 4601, after tariff item 4601 29 00 and the entries relating thereto, the following shall be inserted, namely:—

"- Other:";

(32) in Chapter 48,—

(i) in heading 4818, in the entry in column (2) occurring against tariff item 4818 20 00, for the word "cleaning", the word "cleansing" shall be substituted;

(ii) in the entry in column (2) occurring against heading 4820, for the words "EXCISE BOOKS", the words "EXERCISE BOOKS" shall be substituted;

(33) in Chapter 53, in the entry in column (2) occurring against heading 5310, for the words "BASE FIBRES", the words "BAST FIBRES" shall be substituted;

(34) in Chapter 55,—

(i) in heading 5502,—

(a) for the entry in column (2) occurring against sub-heading 5502 10, the following shall be substituted, namely:—

"- Of cellulose acetate:";

(b) for the entry in column (2) occurring against sub-heading 5502 90, the following shall be substituted, namely:—

"- Other:";

(ii) in heading 5504, for tariff item 5504 10 00 and the entries relating thereto, the following shall be substituted, namely:—

"5504 10 - Of viscose rayon:

5504 10 10 - - - Obtained from wood other than kg. 20% -

bamboo

5504 10 20 - - - Obtained from bamboo kg. 20% - 5504 10 90 - - - Other

kg. 20% -";

(35) in Chapter 56, in the entry in column (2) occurring against heading 5605, for the words "NOT GIMPED BEING TEXTILE YARN", the words "NOT GIMPED, BEING TEXTILE YARN" shall be substituted;

(36) in Chapter 57,—

(i) in heading 5701, for tariff item 5701 10 00, sub-heading 5701 90 and tariff items 5701 90 10 to 5701 90 20 and the entries relating thereto, the following shall be substituted, namely:—

"5701 10 - Of wool or fine animal hair:

5701 10 10 - - - Hand-made m² 25% -This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 215 (40) in Chapter 62,—

(i) in Note 3, in clause (b), for the words "corresponding of compatible size", the words "corresponding or compatible size" shall be substituted;

(ii) after Note 9, the following Supplementary Note shall be inserted, namely:—

"Supplementary Note:

For the purpose of this Chapter, "Khadi" means,—

(a) the article of apparel or clothing accessories, made from any cloth woven on handlooms in India from cotton, silk or woollen yarn handspun in India or from a mixture of any two or all of such yarns; and

(b) produced by a person certified or recognised by the Khadi Village Industries Commission established under section 4 of the Khadi and Village Industries Commission Act, 1956 (61 of 1956).";

(iii) in heading 6203,—

(a) for tariff items 6203 29 00 to 6203 31 00 and the entries relating thereto, the following shall be substituted, namely:—

"6203 29 - - Of other textile materials:

- - - Of silk:

6203 29 11 - - - - Khadi u 25% or Rs. 145 per piece, -

whichever is higher 6203 29 19 - - - - Other u 25% or Rs. 145 per piece, -

whichever is higher 6203 29 90 - - - Other u 25% or Rs. 145 per piece, -

whichever is higher - Jackets and blazers:

6203 31 - - Of wool or fine animal hair:

6203 31 10 - - - Khadi u 25% or Rs. 815 per piece, -

whichever is higher 6203 31 90 - - - Other u 25% or Rs. 815 per piece, -";

whichever is higher (b) for tariff item 6203 39 10 and the entries relating thereto, the following shall be substituted, namely:—

"- - - Of silk:

6203 39 11 - - - - Khadi u 25% or Rs. 755 per piece, -

whichever is higher 6203 39 19 - - - - Other u 25% or Rs. 755 per piece, -";

whichever is higher (c) for tariff item 6203 42 00 and the entries relating thereto, the following shall be substituted, namely:—

"6203 42 - - Of cotton:

6203 42 10 - - - Handloom u 25% or Rs. 135 per piece, -

whichever is higher 6203 42 90 - - - Other u 25% or Rs. 135 per piece,

whichever is higher -";

(iv) in heading 6204,—

(a) for tariff item 6204 29 11 and the entries relating thereto, the following shall be substituted, namely:—

"6204 29 12 - - - - Khadi u 25% -";

(b) for tariff item 6204 31 00 and the entries relating thereto, the following shall be substituted, namely:—

"6204 31 - - Of wool or fine animal hair:

6204 31 10 - - - Khadi u 25% or Rs. 370 per piece, -

whichever is higher 6204 31 90 - - - Other u 25% or Rs. 370 per piece, -";

whichever is higher (c) for tariff item 6204 39 11 and the entries relating thereto, the following shall be substituted, namely:—

"6204 39 12 - - - - Khadi u 25% or Rs. 350 per piece, -";

whichever is higher (d) for the entry in column (2) occurring against tariff item 6204 42 20, the following shall be substituted, namely:—

"- - - Handloom";

(e) for tariff item 6204 62 00 and the entries relating thereto, the following shall be substituted, namely:—

"6204 62 - - Of cotton:

6204 62 10 - - - Handloom u 25% or Rs. 135 per piece, -

whichever is higher 6204 62 90 - - - Other u 25% or Rs. 135 per piece, -";

whichever is higher (v) in heading 6205,—

(a) for tariff item 6205 20 00 and the entries relating thereto, the following shall be substituted, namely:—

"6205 20 - Of cotton:

6205 20 10 - - - Handloom u 25% or Rs. 85 per piece, -

whichever is higher 6205 20 90 - - - Other u 25% or Rs. 85 per piece, -";

whichever is higher (b) for tariff item 6205 90 10 and the entries relating thereto, the following shall be substituted, namely:—

"- - - Of silk:

6205 90 11- - - - Khadi u 25% or Rs. 95 per piece, -

whichever is higher 6205 90 19- - - - Other u 25% or Rs. 95 per piece, -";

whichever is higherThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 217 (vi) in heading 6206, for tariff item 6206 30 00 and the entries relating thereto, the following shall be substituted, namely:—

"6206 30 - Of cotton:

6206 30 10 - - - Handloom u 25% or Rs. 95 per piece, -

whichever is higher 6206 30 90 - - - Other u 25% or Rs. 95 per piece, -";

whichever is higher (vii) in heading 6207, for tariff items 6207 19 90 to 6207 22 00 and the entries relating thereto, the following shall be substituted, namely:—

"6207 19 90- - - Other u 25% or Rs.30 per piece, -

whichever is higher - Night shirts and pyjamas:

6207 21 - - Of cotton:

6207 21 10 - - - Handloom u 25% - 6207 21 90 - - - Other u 25% - 6207 22 00 - - Of man-made fibres u 25% -";

(viii) in heading 6208, for tariff item 6208 21 00 and the entries relating thereto, the following shall be substituted, namely:—

"6208 21 - - Of cotton:

6208 21 10 - - - Handloom u 25% - 6208 21 90 - - - Other u 25% -";

(ix) in heading 6209, for tariff item 6209 20 00 and the entries relating thereto, the following shall be substituted, namely:—

"6209 20 - Of cotton:

6209 20 10 - - - Handloom u 25% - 6209 20 90 - - - Other u 25% -";

(x) in heading 6211—

(a) for tariff item 6211 39 00 and the entries relating thereto, the following shall be substituted, namely:—

"6211 39 - - Of other textile materials:

- - - Of silk:

6211 39 11 - - - - Handloom u 25% - 6211 39 19 - - - - Other u 25% - 6211 39 90 - - - Other u 25% -";

(b) after tariff item 6211 49 10 and the entries relating thereto, the following shall be inserted, namely:—

"- - - Of silk:

6211 49 21 - - - - Khadi u 25% - 6211 49 29 - - - - Other u 25% -";

(xi) in heading 6214, for tariff items 6214 20 20 and 6214 20 30 and the entries relating thereto, the following shall be substituted, namely:—

"- - - Scarves:

6214 20 21 - - - - Khadi u 25% or Rs. 180 per piece, -

whichever is higher 6214 20 29 - - - - Other u 25% or Rs. 180 per piece, -

whichever is higher - - - Mufflers:

6214 20 31 - - - - Khadi u 25% or Rs. 180 per piece, -

whichever is higher 6214 20 39 - - - - Other u 25% or Rs. 180 per piece, -";

whichever is higher (xii) in heading 6215, for tariff item 6215 10 00 and the entries relating thereto, the following shall be substituted, namely:—

"6215 10 - Of silk or silk waste:

6215 10 10 - - - Khadi u 25% or Rs. 55 per piece, -

whichever is higher 6215 10 90 - - - Other u 25% or Rs. 55 per piece, -";

whichever is higher (41) in Chapter 68,—

(i) in Note 1, in clause (b), for the words "paper coated with mica", the words "paper and paperboard coated with mica" shall be substituted;

(ii) in heading 6813, for sub-heading 6813 20, tariff items 6813 20 10 to 6813 89 00 and the entries relating thereto, the following shall be substituted, namely:—

"6813 20 - Containing asbestos:

6813 20 10 - - - Brake lining and pads kg. 15% - 6813 20 90 - - - Asbestos friction materials kg. 15% - - Not containing asbestos:

6813 81 00 - - Brake linings and pads kg. 15% - 6813 89 00 - - Other kg. 15% -";

(42) in Chapter 70,—

(i) in sub-heading Note, for the figures "7013 91", the figures "7013 91 00" shall be substituted;

(ii) in heading 7005, in the entry in column (2) occurring against sub-heading 7005 21, for the words and brackets "mass (body tinted) opacified", the words and brackets "mass (body tinted), opacified" shall be substituted;

(iii) in the entry in column (2) occurring against heading 7018, for the words "JEWELLERY, GLASS", the words "JEWELLERY; GLASS" shall be substituted;

(43) in Chapter 71,—

(i) in heading 7103, for sub-heading 7103 10 and tariff items 7103 10 11 to 7103 99 90 and the entries relating thereto, the following shall be substituted, namely:—

"7103 10 - Unworked or simply sawn or roughly shaped:

- - - Precious or semi-precious stones of "Beryl"

and "Chrysoberyl" mineralogical species:

7103 10 31 - - - - Emerald kg. 10% - 7103 10 32 - - - - Yellow/golden/pink/red/green beryl kg. 10% - 7103 10 33 - - - - Chrysoberyl (including chrysoberyl kg. 10% -

cat's eye) 7103 10 34 - - - - Alexandrite (including alexandrite kg. 10% -

cat's eye) 7103 10 39 - - - - Other kg. 10% -

- - - Precious or semi-precious stones of

"Corundum" and "Feldspar"

mineralogical species:

7103 10 41 - - - - Ruby 7103 10 42 - - - - Sapphire 7103 10 43 - - - - Moonstone 7103 10 49 - - - - Other kg. 10% - kg. 10% - kg. 10% - kg. 10% -

- - - Precious or semi-precious stones of

"Garnet" and "Lazurite"

mineralogical species:

7103 10 51 - - - - Garnet 7103 10 52 - - - - Lapis-lazuli 7103 10 59 - - - - Other kg. 10% - kg. 10% - kg. 10% -

- - - Precious or semi-precious stones of

"Prehnite" and "Quartz" mineralo-

gical species:

7103 10 61 - - - - Prehnite 7103 10 62 - - - - Agate 7103 10 63 - - - - Aventurine 7103 10 64 - - - - Chalcedony 7103 10 69 - - - - Other kg. 10% - kg. 10% - kg. 10% - kg. 10% - kg. 10% -

- - - Precious or semi-precious stones of

"Tourmaline" and "Zoisite" mineralo-

gical species:

7103 10 71 - - - - Tourmaline 7103 10 72 - - - - Tanzanite 7103 10 79 - - - - Other 7103 10 90 - - - Other - Otherwise worked:

7103 91 - - Ruby, sapphire and emeralds:

7103 91 10 - - - Ruby 7103 91 20 - - - Sapphire 7103 91 30 - - - Emeralds 7103 99 - - Other:

kg. 10% - kg. 10% - kg. 10% - kg. 10% - c/k 10% - c/k 10% - c/k 10% -

- - - Precious or semi-precious stones of

"Beryl" and "Chrysoberyl" mineralo-

gical species, other than "Emerald":

7103 99 11 - - - - Yellow/golden/pink/red/green beryl c/k 10% - 7103 99 12 - - - - Chrysoberyl (including chrysoberyl c/k 10% -

cat's eye)

7103 99 13 - - - - Alexandrite (including alexandrite c/k 10% -

cat's eye)

7103 99 19 - - - - Other

c/k 10% - - - - Precious or semi-precious stones of

"Corundum" and "Feldspar" mineralo-

gical species, other than "Ruby" and

"Sapphire":

7103 99 21 - - - - Moonstone c/k 10% -

7103 99 29 - - - - Other c/k 10% -

- - - Precious or semi-precious stones

of "Garnet" and "Lazurite"

mineralogical species:

7103 99 31 - - - - Garnet

c/k 10% - 7103 99 32 - - - - Lapis-lazuli

c/k 10% - 7103 99 39 - - - - Other

c/k 10% - - - - Precious or semi-precious stones of

"Prehnite" and "Quartz" mineralogical

species:

7103 99 41 - - - - Prehnite

c/k 10% - 7103 99 42 - - - - Agate

c/k 10% - 7103 99 43 - - - - Aventurine

c/k 10% - 7103 99 44 - - - - Chalcedony c/k 10% - 7103 99 49 - - - - Other

c/k 10% - - - - Precious or semi-precious stones

of "Tourmaline" and "Zoisite"

mineralogical species:

7103 99 51 - - - - Tourmaline

c/k 10% - 7103 99 52 - - - - Tanzanite

c/k 10% - 7103 99 59 - - - - Other

c/k 10% - 7103 99 90 - - - Other

c/k 10% -";

(ii) in heading 7104, for tariff item 7104 20 00 and the entries relating thereto, the following shall be substituted, namely:—

"7104 20 - Other, unworked or simply sawn or roughly shaped:

7104 20 10 - - - Laboratory-created or laboratory kg. 10% -

grown or manmade or cultured or synthetic diamonds

7104 20 90 - - - Other

kg. 10% -";

(iii) in heading 7106,—

(a) for tariff item 7106 91 00 and the entries relating thereto, the following shall be substituted, namely:—

"7106 91 - - Unwrought:

7106 91 10 - - - Grains

kg. 12.5% - 7106 91 90 - - - Other

kg. 12.5% -";

(b) after tariff item 7106 92 10 and the entries relating thereto, the following shall be inserted, namely:—

"7106 92 20 - - - Bar

kg. 12.5% -";

(44) in Chapter 72, in heading 7222, for the entry in column (2) occurring after the entry against tariff item 7222 20 19, the following shall be substituted, namely:—

"- - - Other:";

(45) in Chapter 73, in heading 7304,—

(i) for the entry in column (2) occurring against tariff item 7304 22 00, the following shall be substituted, namely:—

"- - Drill pipe of stainless steel";

(ii) for the entry in column (2) occurring against tariff item 7304 23 90, the following shall be substituted, namely:—

"- - - Other";

(iii) for the entry in column (2) occurring after the entry against tariff item 7304 49 00, the following shall be substituted, namely:—

"- Other, of circular cross section, of alloy steel:";

(46) in Chapter 74, in heading 7404,—

(i) for tariff item 7404 00 21 and the entries relating thereto, the following shall be substituted, namely:—

"7404 00 21 - - - - Empty or discharged cartridges kg. 5% -";

of all bores and sizes, including the following: clean fired 70/30 brass shells free of bullets, iron and any other foreign material covered by ISRI code word 'Lake'; clean muffled (popped) 70/30 brass shells free of bullets, iron and any other foreign material covered by ISRI code word 'Lamb' ";

(ii) in the entry in column (2) occurring against tariff item 7404 00 22, the portion beginning with the words "manganese bronze solids" and ending with the words "code word 'Lamb';" shall be omitted;

(iii) for tariff item 7404 00 23 and the entries relating thereto, the following shall be substituted, namely:—

"7404 00 24 - - - - Bronze scrap, including the kg. 5% -

following:manganese bronze solids covered ISRI code word 'Parch'; High lead bronze solids and borings covered by ISRI code word 'Elias'

7404 00 25 - - - - Copper nickel scrap, including the kg. 5% -";

following: new cupro nickel clips and solids covered by ISRI code word 'Dandy'; cupro nickel solids covered by ISRI code word 'Daunt'; soldered cupro-nickel solids covered by ISRI code word 'Delta'; cupro nickel spinnings, turnings, borings covered by ISRI code word 'Decoy';'';

(47) in Chapter 75, in heading 7503, in the entry in column (2) occurring against tariff item 7503 00 10, the portion beginning with the words "new cupro nickel clips" and ending with the words "code word 'Depth';" shall be omitted;

(48) in Chapter 76, in heading 7602, in the entry in column (2) occurring against tariff item 7602 00 10,—

(i) the words and letters "Sweated aluminium covered by ISRI code word 'Throb';" shall be omitted;

(ii) the words and letters "Aluminium drosses, spatterns, spellings, skimmings and sweepings covered by ISRI code word 'Thirl';" shall be omitted;

(49) in Chapter 78, in heading 7802, in the entry in column (2) occurring against tariff item 7802 00 10,—

(i) the words and letters "lead covered copper cable covered by ISRI code word 'Relay';" shall be omitted;

(ii) the portion beginning with the words "Lead battery plates" and ending with the words "code word 'Rents';" shall be omitted;

(50) in Chapter 79, in heading 7902, in the entry in column (2) occurring against tariff item 7902 00 10,—

(i) the words and letters "Zinc die cast slabs or pigs covered by ISRI code word 'Scull';" shall be omitted;

(ii) the portion beginning with the words "Hot dip galvanizers" and ending with the words "corrosion or 'oxidation';" shall be omitted;

(51) in Chapter 85,—

(i) in heading 8517,––

(a) for tariff items 8517 12 10 and 8517 12 90 and entries relating thereto, the following shall be substituted, namely:—

"- - - Telephones for cellular networks:

8517 12 11 - - - - Mobile phones, other than push button type u 20% - 8517 12 19 - - - - Mobile phones, push button type u 20% - 8517 12 90 - - - Telephones for other wireless networks u 20% -";

(b) tariff item 8517 69 30 and the entries relating thereto, shall be omitted;

(ii) in heading 8525, for sub-heading 8525 60 and tariff items 8525 60 11 to 8525 60 99 and the entries relating thereto, the following shall be substituted, namely:—

"8525 60 00 - Transmission apparatus incorporating u Free -";

reception apparatus

(iii) in heading 8527, for sub-heading 8527 99 and tariff items 8527 99 11 to 8527 99 90 and the entries relating thereto, the following shall be substituted, namely:—

"8527 99 00 - - Other

u 10% -";

(52) in Chapter 90, in heading 9018, for tariff items 9018 90 29 to 9018 90 33 and the entries relating thereto, the following shall be substituted, namely:—

"9018 90 29 - - - - Other

u 10% - - - - Artificial kidney (dialysis) apparatus, blood transfusion apparatus:

9018 90 31 - - - - Artificial kidney (dialysis) apparatus u 10% - 9018 90 32 - - - - Blood transfusion apparatus u 10% -".

[Assented to on

1st August, 2019

Act No. 24 of 2019]

THE RIGHT TO INFORMATION (AMENDMENT) ACT, 2019

AN

ACT

to amend the Right to Information Act, 2005.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Right to Information (Amendment) Short title and commencement.

Act, 2019.

(2) It shall come into force on such date as the Central Government

may, by notification in the Official Gazette, appoint.

2. In the Right to Information Act, 2005 (hereinafter referred to as

22 of 2005.

Amendment of section 13.

the principal Act), in section 13,—

(a) in sub-section (1), for the words "for a term of five years from the date on which he enters upon his office", the words "for such term as may be prescribed by the Central Government" shall be substituted;

(b) in sub-section (2), for the words "for a term of five years from the date on which he enters upon his office", the words "for such term as may be prescribed by the Central Government" shall be substituted;

(c) for sub-section (5), the following sub-section shall be

substituted, namely:—

"(5) The salaries and allowances payable to and other terms and conditions of service of the Chief Information Commissioner and the Information Commissioners shall be such as may be prescribed by the Central Government:

Provided that the salaries, allowances and other conditions of service of the Chief Information Commissioner or the Information Commissioners shall not be varied to their disadvantage after their appointment:

Provided further that the Chief Information Commissioner and the Information Commissioners appointed before the commencement of the Right to Information (Amendment) Act, 2019 shall continue to be governed by the provisions of this Act and the rules made thereunder as if the Right to Information (Amendment) Act, 2019 had not come into force.".

3. In section 16 of the principal Act,—

Amendment of section 16.

(a) in sub-section (1), for the words "for a term of five years from the date on which he enters upon his office", the words "for such term as may be prescribed by the Central Government" shall be substituted;

(b) in sub-section (2), for the words "for a term of five years from the date on which he enters upon his office", the words "for such term as may be prescribed by the Central Government" shall be substituted;

(c) for sub-section (5), the following sub-section shall be substituted, namely:—

"(5) The salaries and allowances payable to and other terms and conditions of service of the State Chief Information Commissioner and the State Information Commissioners shall be such as may be prescribed by the Central Government:

Provided that the salaries, allowances and other conditions of service of the State Chief Information Commissioner and the State Information Commissioners shall not be varied to their disadvantage after their appointment:

Provided further that the State Chief Information Commissioner and the State Information Commissioners appointed before the commencement of the Right to Information (Amendment) Act, 2019 shall continue to be governed by the provisions of this Act and the rules made thereunder as if the Right to Information (Amendment) Act, 2019 had not come into force.".

4. In section 27 of the principal Act, in sub-section (2), after clause (c), Amendment of section 27.

the following clauses shall be inserted, namely:—

"(ca) the term of office of the Chief Information Commissioner and Information Commissioners under sub-sections (1) and (2) of section 13 and the State Chief Information Commissioner and State Information Commissioners under sub-sections (1) and (2) of section 16;

(cb) the salaries, allowances and other terms and conditions of service of the Chief Information Commissioner and the Information Commissioners under sub-section (5) of section 13 and the State Chief Information Commissioner and the State Information Commissioners under sub-section (5) of section 16;".

[Assented to on

5th August, 2019

Act No. 25 of 2019]

THE PROTECTION OF CHILDREN FROM SEXUAL OFFENCES

(AMENDMENT) ACT, 2019

AN

ACT

further to amend the Protection of Children from Sexual Offences Act, 2012.

BE it enacted by Parliament in the SeventiethYear of the Republic of India as follows:—

1. (1) This Act may be called the Protection of Children from Sexual Short title and commencement. Offences (Amendment) Act, 2019.

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

32 of 2012.

2. In the Protection of Children from Sexual Offences Act, 2012 Amendment of section 2.

(hereinafter referred to as the principal Act), in section 2,—

(a) in sub-section (1), after clause (d), the following clause shall be

inserted, namely:—

'(da) "child pornography" means any visual depiction of sexually explicit conduct involving a child which include photograph, video, digital or computer generated image indistinguishable from an actual child, and image created, adapted, or modified, but appear to depict a child;';

56 of 2000.

2 of 2016.

(b) in sub-section (2), for the words, brackets and figures "the Juvenile Justice (Care and Protection of Children) Act, 2000", the words, brackets and figures "the Juvenile Justice (Care and Protection of Children) Act, 2015" shall be substituted.

3. In the principal Act, section 4 shall be renumbered as section 4(1) Amendment of section 4.

thereof and—

(a) in sub-section (1) as so renumbered, for the words "seven years",

the words "ten years" shall be substituted;

(b) after sub-section (1), the following sub-sections shall be inserted,

namely:—

"(2) Whoever commits penetrative sexual assault on a child below sixteen years of age shall be punished with imprisonment for a term which shall not be less than twenty years, but which may extend to imprisonment for life, which shall mean imprisonment for the remainder of natural life of that person, and shall also be liable to fine.

(3) The fine imposed under sub-section (1) shall be just and reasonable and paid to the victim to meet the medical expenses and rehabilitation of such victim.".

4. In section 5 of the principal Act,—

Amendment of section 5.

(I) in clause (j),—

(A) in sub-clause (i), the word "or" occurring at the end shall

be omitted;

(B) in sub-clause (iii), the word "or" occurring at the end shall

be omitted;

(C) after sub-clause (iii), the following sub-clause shall be

inserted, namely:—

"(iv) causes death of the child; or";

(II) in clause (s), for the words "communal or sectarian violence", the words "communal or sectarian violence or during any natural calamity or in similar situations" shall be substituted.

5. For section 6 of the principal Act, the following section shall be

substituted, namely:—

Substitution of new section for section 6.

Punishment for aggravated penetrative sexual assault.

"6. (1) Whoever commits aggravated penetrative sexual assault shall be punished with rigorous imprisonment for a term which shall not be less than twenty years, but which may extend to imprisonment for life, which shall mean imprisonment for the remainder of natural life of that person, and shall also be liable to fine, or with death.

(2) The fine imposed under sub-section (1) shall be just and reasonable and paid to the victim to meet the medical expenses and rehabilitation of such victim.".

6. In section 9 of the principal Act,—

Amendment of section 9.

(i) in clause (s), for the words "communal or sectarian violance", the words "communal or sectarian violence or during any natural calamity or in any similar situations" shall be substituted;

(ii) after clause (u), the following clause shall be inserted, namely:—

"(v) whoever persuades, induces, entices or coerces a child to get administered or administers or direct anyone to administer, help in getting administered any drug or hormone or any chemical substance, to a child with the intent that such child attains early sexual maturity;".

7. For section 14 of the principal Act, the following section shall be substituted, namely:—

Substitution of new section for section 14.

Punishment for using child for pornographic purposes.

"14. (1) Whoever uses a child or children for pornographic purposes shall be punished with imprisonment for a term which shall not be less than five years and shall also be liable to fine, and in the event of second or subsequent conviction with imprisonment for a term which shall not be less than seven years and also be liable to fine.

(2) Whoever using a child or children for pornographic purposes under sub-section (1), commits an offence referred to in section 3 or section 5 or section 7 or section 9 by directly participating in such pornographic acts, shall be punished for the said offences also under section 4, section 6, section 8 and section 10, respectively, in addition to the punishment provided in sub-section (1).".

8. For section 15 of the principal Act, the following section shall be substituted, namely:—

Substitution of new section for section 15.

Punishment for storage of pornographic material involving child.

"15. (1) Any person, who stores or possesses pornographic material in any form involving a child, but fails to delete or destroy or report the same to the designated authority, as may be prescribed, with an intention to share or transmit child pornography, shall be liable to fine not less than five thousand rupees, and in the event of second or subsequent offence, with fine which shall not be less than ten thousand rupees.

(2) Any person, who stores or possesses pornographic material in any form involving a child for transmitting or propagating or displaying or distributing in any manner at any time except for the purpose of reporting, as may be prescribed, or for use as evidence in court, shall be punished with imprisonment of either description which may extend to three years, or with fine, or with both.

(3) Any person, who stores or possesses pornographic material in any form involving a child for commercial purpose shall be punished on the first conviction with imprisonment of either description which shall not be less than three years which may extend to five years, or with fine, or with both, and in the event of second or subsequent conviction, with imprisonment of either description which shall not be less than five years which may extend to seven years and shall also be liable to fine.".

Amendment of section 34.

56 of 2000.

2 of 2016.

9. In section 34 of the principal Act, for the words, brackets and figures "the Juvenile Justice (Care and Protection of Children) Act, 2000", the words, brackets and figures "the Juvenile Justice (Care and Protection of Children) Act, 2015" shall be substituted.

Amendment of section 42.

45 of 1860.

21 of 2000.

10. In section 42 of the principal Act, for the figures, letter and words "376E or section 509 of the Indian Penal Code", the figures, letters and words "376E, section 509 of the Indian Penal Code or section 67B of the Information Technology Act, 2000" shall be substituted.

Amendment of section 45.

11. In section 45 of the principal Act, in sub-section (2), clause (a) shall be re-lettered as clause (ab) thereof and before clause (ab) as so re-lettered, the following clauses shall be inserted, namely:—

"(a) the manner of deleting or destroying or reporting about pornographic material in any form involving a child to the designated authority under sub-section (1) of section 15;

(aa) the manner of reporting about pornographic material in any form

involving a child under sub-section (2) of section 15;".

[Assented to on

5th August, 2019

Act No. 26 of 2019]

THE INSOLVENCY AND BANKRUPTCY CODE (AMENDMENT) ACT, 2019

AN

ACT

further to amend the Insolvency and Bankruptcy Code, 2016.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Insolvency and Bankruptcy Code Short title and commencement.

(Amendment) Act, 2019.

(2) It shall come into force on such date as the Central Government may,

by notification in the Official Gazette, appoint.

31 of 2016.

Amendment of section 5.

2. In section 5 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the principal Act), in clause (26), the following Explanation shall be inserted, namely:––

"Explanation.––For the removal of doubts, it is hereby clarified that a resolution plan may include provisions for the restructuring of the corporate debtor, including by way of merger, amalgamation and demerger;".

3. In section 7 of the principal Act, in sub-section (4), the following Amendment of section 7.

proviso shall be inserted, namely:––

"Provided that if the Adjudicating Authority has not ascertained the existence of default and passed an order under sub-section (5) within such time, it shall record its reasons in writing for the same.".

4. In section 12 of the principal Act, in sub-section (3), after the proviso, Amendment of section 12.

the following provisos shall be inserted, namely:––

"Provided further that the corporate insolvency resolution process shall mandatorily be completed within a period of three hundred and thirty days from the insolvency commencement date, including any extension of the period of corporate insolvency resolution process granted under this section and the time taken in legal proceedings in relation to such resolution process of the corporate debtor:

Provided also that where the insolvency resolution process of a corporate debtor is pending and has not been completed within the period referred to in the second proviso, such resolution process shall be completed within a period of ninety days from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019.".

5. In section 25A of the principal Act, after sub-section (3), the following Amendment of section 2 5A.

sub-section shall be inserted, namely:––

"(3A) Notwithstanding anything to the contrary contained in sub-section (3), the authorised representative under sub-section (6A) of section 21 shall cast his vote on behalf of all the financial creditors he represents in accordance with the decision taken by a vote of more than fifty per cent. of the voting share of the financial creditors he represents, who have cast their vote:

Provided that for a vote to be cast in respect of an application under section 12A, the authorised representative shall cast his vote in accordance with the provisions of sub-section (3).".

6. In section 30 of the principal Act,––

Amendment of section 30.

(a) in sub-section (2), for clause (b), the following shall be substituted, namely:—

"(b) provides for the payment of debts of operational creditors in such manner as may be specified by the Board which shall not be less than––

(i) the amount to be paid to such creditors in the event of a liquidation of the corporate debtor under section 53; or

(ii) the amount that would have been paid to such creditors, if the amount to be distributed under the resolution plan had been distributed in accordance with the order of priority in sub-section (1) of section 53,

whichever is higher, and provides for the payment of debts of financial creditors, who do not vote in favour of the resolution plan, in such manner as may be specified by the Board, which shall not be less than the amount to be paid to such creditors in accordance with sub- section (1) of section 53 in the event of a liquidation of the corporate debtor.

Explanation 1.––For the removal of doubts, it is hereby clarified that a distribution in accordance with the provisions of this clause shall be fair and equitable to such creditors.

Explanation 2.––For the purposes of this clause, it is hereby declared that on and from the date of commencement of the Insolvency and Bankruptcy Code (Amendment) Act, 2019, the provisions of this clause shall also apply to the corporate insolvency resolution process of a corporate debtor––

(i) where a resolution plan has not been approved or

rejected by the Adjudicating Authority;

(ii) where an appeal has been preferred under section 61 or section 62 or such an appeal is not time barred under any provision of law for the time being in force; or

(iii) where a legal proceeding has been initiated in any court against the decision of the Adjudicating Authority in respect of a resolution plan;";

(b) in sub-section (4), after the words "feasibility and viability,", the words, brackets and figures "the manner of distribution proposed, which may take into account the order of priority amongst creditors as laid down in sub-section (1) of section 53, including the priority and value of the security interest of a secured creditor" shall be inserted.

Amendment of section 31.

7. In section 31 of the principal Act, in sub-section (1), after the words "members, creditors,", the words "including the Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed," shall be inserted.

8. In section 33 of the principal Act, in sub-section (2), the following Amendment of section 33.

Explanation shall be inserted, namely:––

"Explanation.––For the purposes of this sub-section, it is hereby declared that the committee of creditors may take the decision to liquidate the corporate debtor, any time after its constitution under sub-section (1) of section 21 and before the confirmation of the resolution plan, including at any time before the preparation of the information memorandum.".

Amendment of section 2 40.

9. In section 240 of the principal Act, in sub-section (2), in clause (w), for the words "repayment of debts of operational creditors", the words "payment of debts" shall be substituted.

[Assented to on

6th August, 2019

Act No. 27 of 2019]

THE AIRPORTS ECONOMIC REGULATORY AUTHORITY OF INDIA (AMENDMENT) ACT, 2019

AN

ACT

to amend the Airports Economic Regulatory Authority of India Act, 2008.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Airports Economic Regulatory Short title and commencement.

Authority of India (Amendment) Act, 2019.

(2) It shall come into force on such date as the Central Government may,

by notification in the Official Gazette, appoint.

27 of 2008.

Amendment of section 2.

2. In section 2 of the Airports Economic Regulatory Authority of India Act, 2008 (hereinafter referred to as the principal Act), in clause (i), for the words "one and a half million", the words "three and a half million" shall be substituted.

3. In section 13 of the principal Act, after sub-section (1), the following Amendment of section 13.

sub-section shall be inserted, namely:—

"(1A) Notwithstanding anything contained in sub-sections (1) and (2), the Authority shall not determine the tariff or tariff structures or the amount of development fees in respect of an airport or part thereof, if such tariff or tariff structures or the amount of development fees has been incorporated in the bidding document, which is the basis for award of operatorship of that airport:

Provided that the Authority shall be consulted in advance regarding the tariff, tariff structures or the amount of development fees which is proposed to be incorporated in the said bidding document and such tariff, tariff structures or the amount of development fees shall be notified in the Official Gazette.".

[Assented to on

8th August, 2019

Act No. 28 of 2019]

THE UNLAWFUL ACTIVITIES (PREVENTION) AMENDMENT ACT, 2019

AN

ACT

further to amend the Unlawful Activities (Prevention) Act, 1967.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

1. (1) This Act may be called the Unlawful Activities (Prevention) Short title and commencement.

Amendment Act, 2019.

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

37 of 1967.

2. In the Unlawful Activities (Prevention) Act, 1967 (hereinafter referred Amendment of section 2.

to as the principal Act), in section 2, in sub-section (1),—

(i) in clause (d), for the word and figures "section 21", the word and figures "section 22" shall be substituted;

(ii) in clause (ha), for the words "the Schedule", the words "a Schedule" shall be substituted;

(iii) in clause (m), for the word "Schedule", the words "First Schedule" shall be substituted.

Amendment of section 25.

3. In section 25 of the principal Act, in sub-section (1), for the words "in which such property is situated, make an order", the words "in which such property is situated, or where the investigation is conducted by an officer of the National Investigation Agency, with the prior approval of the Director General of National Investigation Agency, make an order" shall be substituted.

4. In Chapter VI of the principal Act, for the Chapter heading, the

following Chapter heading shall be substituted, namely:—

Amendment of heading of Chapter VI.

"TERRORIST ORGANISATIONS AND INDIVIDUALS".

5. In section 35 of the principal Act,—

Amendment of section 35.

(i) in sub-section (1),—

(A) in clause (a), after the words "First Schedule", the words "or the name of an individual in the Fourth Schedule" shall be inserted;

(B) in clause (b), after the words "United Nations", the words "or the name of an individual in the Fourth Schedule" shall be inserted;

(C) in clause (c), after the words "First Schedule", the words "or the name of an individual from the Fourth Schedule" shall be inserted;

(D) in clause (d), after the words "First Schedule", the words

"or the Fourth Schedule" shall be inserted;

(ii) in sub-section (2), for the words "an organisation only if it believes that it is", the words "an organisation or an individual only if it believes that such organisation or individual is" shall be substituted;

(iii) in sub-section (3), for the words "an organisation shall be deemed to be involved in terrorism if it", the words "an organisation or an individual shall be deemed to be involved in terrorism if such organisation or individual" shall be substituted.

6. In section 36 of the principal Act,—

Amendment of section 36.

(i) in the marginal heading, for the words "a terrorist organisation",

the words "terrorist organisation or individual" shall be substituted;

(ii) in sub-section (1), for the words "an organisation from the Schedule", the words "an organisation from the First Schedule, or as the case may be, the name of an individual from the Fourth Schedule" shall be substituted;

(iii) in sub-section (2),—

(A) in clause (b), for the words "Schedule as a terrorist organisation", the words "First Schedule as a terrorist organisation, or" shall be substituted;

(B) after clause (b), the following clause shall be inserted,

namely:—

"(c) any person affected by inclusion of his name in

the Fourth Schedule as a terrorist.";

(iv) in sub-section (5), for the words "an organisation from the Schedule", the words "an organisation from the First Schedule or the name of an individual from the Fourth Schedule" shall be substituted;

(v) in sub-section (6), after the words "an organisation", the words "or an individual" shall be inserted;

(vi) in sub-section (7), for the word "Schedule", the words "First Schedule or the name of an individual from the Fourth Schedule" shall be substituted.

Amendment of section 38.

7. In section 38 of the principal Act, in sub-section (1), in the proviso, in clause (b), for the word "Schedule", the words "First Schedule" shall be substituted.

8. In section 43 of the principal Act,—

Amendment of section 43.

(i) after clause (b), the following clause shall be inserted, namely:—

"(ba) in the case of National Investigation Agency, below the rank of Inspector;";

(ii) in clause (c), after the words, brackets and letter "or clause (b)", the words, brackets and letters "or clause (ba)" shall be inserted.

9. In section 45 of the principal Act, in sub-section (1), in clause (ii), for Amendment of section 45.

the word "where", the word "if" shall be substituted.

Amendment of First Schedule.

10. In the First Schedule to the principal Act, for the brackets, words, figures and letter "[See sections 2(1)(m) and 35]", the brackets, words, figures and letter "[See sections 2(1)(m), 35, 36 and 38 (1)]" shall be substituted.

11. In the Second Schedule to the principal Act,—

Amendment of Second Schedule.

(a) in item (v), the words "as amended from time to time" shall be inserted at the end;

(b) after item (ix), the following item shall be inserted, namely:—

"(x) International Convention for Suppression of Acts of Nuclear Terrorism (2005).".

12. After the Third Schedule to the principal Act, the following Schedule shall be added, namely:—

Addition of Fou rth Schedule.

"THE FOURTH SCHEDULE

[See sections 35(1) and 36]

Sl. No. Name of Individuals

" .

[Assented to on

8th August, 2019

Act No. 29 of 2019]

THE CODE ON WAGES, ACT 2019

AN

ACT

to amend and consolidate the laws relating to wages and bonus and matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Code on Wages, 2019.

Short title, extent and commencement.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette appoint; and different dates may be appointed for different provisions of this Code and any reference in any such provision to the commencement of this Code shall be construed as a reference to the coming into force of that provision.

Definitions.

2. In this Code, unless the context otherwise requires,––

(a) "accounting year" means the year commencing on the 1st day of

April ;

(b) "Advisory Board" means the Central Advisory Board or, as the

case may be, the State Advisory Board, constituted under section 42;

(c) "agricultural income tax law" means any law for the time being

in force relating to the levy of tax on agricultural income;

(d) "appropriate Government" means,––

(i) in relation to, an establishment carried on by or under the authority of the Central Government or the establishment of railways, mines, oil field, major ports, air transport service, telecommunication, banking and insurance company or a corporation or other authority established by a Central Act or a central public sector undertaking or subsidiary companies set up by central public sector undertakings or autonomous bodies owned or controlled by the Central Government, including establishment of contractors for the purposes of such establishment, corporation or other authority, central public sector undertakings, subsidiary companies or autonomous bodies, as the case may be, the Central Government;

(ii) in relation to any other establishment, the State Government;

(e) "company" means a company as defined in clause (20) of

18 of 2013.

section 2 of the Companies Act, 2013;

(f) "contractor", in relation to an establishment, means a person, who—

(i) undertakes to produce a given result for the establishment, other than a mere supply of goods or articles of manufacture to such establishment, through contract labour; or

(ii) supplies contract labour for any work of the establishment as mere human resource and includes a sub-contractor;

(g) "contract labour" means a worker who shall be deemed to be employed in or in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer and includes inter- State migrant worker but does not include a worker (other than part-time employee) who ––

(i) is regularly employed by the contractor for any activity of his establishment and his employment is governed by mutually accepted standards of the conditions of employment (including engagement on permanent basis), and

(ii) gets periodical increment in the pay, social security coverage and other welfare benefits in accordance with the law for the time being in force in such employment;

2 of 1912.

(h) "co-operative society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912, or any other law for the time being in force relating to co-operative societies in any State;

(i) "corporation" means any body corporate established by or under any Central Act, or State Act, but does not include a company or a co- operative society;

(j) "direct tax" means––

(i) any tax chargeable under the––

43 of 1961.

(A) Income-tax Act, 1961;

7 of 1964.

(B) Companies (Profits) Surtax Act, 1964;

(C) Agricultural income tax law; and

(ii) any other tax which, having regard to its nature or incidence, may be declared by the Central Government, by notification, to be a direct tax for the purposes of this Code;

52 of 1961.

(k) "employee" means, any person (other than an apprentice engaged under the Apprentices Act, 1961), employed on wages by an establishment to do any skilled, semi-skilled or unskilled, manual, operational, supervisory, managerial, administrative, technical or clerical work for hire or reward, whether the terms of employment be express or implied, and also includes a person declared to be an employee by the appropriate Government, but does not include any member of the Armed Forces of the Union;

(l) "employer" means a person who employs, whether directly or through any person, or on his behalf or on behalf of any person, one or more employees in his establishment and where the establishment is carried on by any department of the Central Government or the State Government, the authority specified, by the head of such department, in this behalf or where no authority, is so specified the head of the department and inThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 235 relation to an establishment carried on by a local authority, the chief executive of that authority, and includes,—

63 of 1948.

(i) in relation to an establishment which is a factory, the occupier of the factory as defined in clause (n) of section 2 of the Factories Act, 1948 and, where a person has been named as a manager of the factory under clause (f) of sub-section (1) of section 7 of the said Act, the person so named;

(ii) in relation to any other establishment, the person who, or the authority which, has ultimate control over the affairs of the establishment and where the said affairs is entrusted to a manager or managing director, such manager or managing director;

(iii) contractor; and

(iv) legal representative of a deceased employer;

(m) "establishment" means any place where any industry, trade, business, manufacture or occupation is carried on and includes Government establishment;

(n) "factory" means a factory as defined in clause (m) of section 2

63 of 1948.

of the Factories Act, 1948;

(o) "Government establishment" means any office or department of

the Government or a local authority;

(p) "Income-tax Act" means the Income -tax Act, 1961;

43 of 1961.

(q) "industrial dispute" means,—

(i) any dispute or difference between employers and employers, or between employers and workers or between workers and workers which is connected with the employment or non-employment or the terms of employment or with the conditions of labour, of any person; and

(ii) any dispute or difference between an individual worker and an employer connected with, or arising out of, discharge, dismissal, retrenchment or termination of such worker;

(r) "Inspector-cum-Facilitator" means a person appointed by the

appropriate Government under sub-section (1) of section 51;

(s) "minimum wage" means the wage fixed under section 6;

(t) "notification" means a notification published in the Gazette of India or in the Official Gazette of a State, as the case may be, and the expression "notify" with its grammatical variations and cognate expressions shall be construed accordingly;

(u) "prescribed" means prescribed by rules made by the appropriate

Government;

(v) "same work or work of a similar nature" means work in respect of which the skill, effort, experience and responsibility required are the same, when performed under similar working conditions by employees and the difference if any, between the skill, effort, experience and responsibility required for employees of any gender, are not of practical importance in relation to the terms and conditions of employment;

(w) "State" includes a Union Territory;

(x) "Tribunal" shall have the same meaning as assigned to it in clause

14 of 1947.

(r) of section 2 of the Industrial Disputes Act, 1947;

42 of 2005.

(y) "wages" means all remuneration whether by way of salaries, allowances or otherwise, expressed in terms of money or capable of being so expressed which would, if the terms of employment, express or implied, were fulfilled, be payable to a person employed in respect of his employment or of work done in such employment, and includes,—

(i) basic pay;

(ii) dearness allowance; and

(iii) retaining allowance, if any,

but does not include––

(a) any bonus payable under any law for the time being in force, which does not form part of the remuneration payable under the terms of employment;

(b) the value of any house-accommodation, or of the supply of light, water, medical attendance or other amenity or of any service excluded from the computation of wages by a general or special order of the appropriate Government;

(c) any contribution paid by the employer to any pension or provident fund, and the interest which may have accrued thereon;

(d) any conveyance allowance or the value of any travelling concession;

(e) any sum paid to the employed person to defray special expenses entailed on him by the nature of his employment;

(f) house rent allowance;

(g) remuneration payable under any award or settlement between the parties or order of a court or Tribunal;

(h) any overtime allowance;

(i) any commission payable to the employee;

(j) any gratuity payable on the termination of employment;

(k) any retrenchment compensation or other retirement benefit payable to the employee or any ex gratia payment made to him on the termination of employment:

Provided that, for calculating the wages under this clause, if payments made by the employer to the employee under clauses (a) to (i) exceeds one-half, or such other per cent. as may be notified by the Central Government, of the all remuneration calculated under this clause, the amount which exceeds such one-half, or the per cent. so notified, shall be deemed as remuneration and shall be accordingly added in wages under this clause:

Provided further that for the purpose of equal wages to all genders and for the purpose of payment of wages, the emoluments specified in clauses (d), (f), (g) and (h) shall be taken for computation of wage.

Explanation.––Where an employee is given in lieu of the whole or part of the wages payable to him, any remuneration in kind by his employer, the value of such remuneration in kind which does not exceed fifteen per cent. of the total wages payable to him, shall be deemed to form part of the wages of such employee;

52 of 1961.

(z) "worker" means any person (except an apprentice as defined under clause (aa) of section 2 of the Apprentices Act, 1961) employed in any industry to do any manual, unskilled, skilled, technical, operational, clerical or supervisory work for hire or reward, whether the terms of employment be express or implied, and includes—

45 of 1955.

(i) working journalists as defined in clause (f ) of section 2 of the Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955; and

11 of 1976.

(ii) sales promotion employees as defined in clause (d) of section 2 of the Sales Promotion Employees (Conditions of Service) Act, 1976, and for the purposes of any proceeding under this Code in relation to an industrial dispute, includes any such person who has been dismissed, discharged or retrenched or otherwise terminated in connection with, or as a consequence of, that dispute, or whose dismissal, discharge or retrenchment has led to that dispute,

but does not include any such person––

(a) who is subject to the Air Force Act, 1950, or the Army

Act, 1950, or the Navy Act, 1957; or

45 of 1950. 46 of 1950. 62 of 1957.

(b) who is employed in the police service or as an officer or

other employee of a prison; or

(c) who is employed mainly in a managerial or administrative

capacity; or

(d) who is employed in a supervisory capacity drawing wage of exceeding fifteen thousand rupees per month or an amount as may be notified by the Central Government from time to time.

Prohibition of discrimination on ground of gender.

3. (1) There shall be no discrimination in an establishment or any unit thereof among employees on the ground of gender in matters relating to wages by the same employer, in respect of the same work or work of a similar nature done by any employee.

(2) No employer shall,—

(i) for the purposes of complying with the provisions of sub-section

(1), reduce the rate of wages of any employee; and

(ii) make any discrimination on the ground of sex while recruiting any employee for the same work or work of similar nature and in the conditions of employment, except where the employment of women in such work is prohibited or restricted by or under any law for the time being in force.

4. Where there is any dispute as to whether a work is of same or similar nature for the purposes of section 3, the dispute shall be decided by such authority as may be notified by the appropriate Government.

Decision as to disputes with regard to same or similar nature of work.

CHAPTER II

MINIMUM WAGES

5. No employer shall pay to any employee wages less than the minimum rate of wages notified by the appropriate Government.

Payment of minimum rate of wages.

Fixation of minimum wages.

6. (1) Subject to the provisions of section 9, the appropriate Government shall fix the minimum rate of wages payable to employees in accordance with the provisions of section 8.

(2) For the purposes of sub-section (1), the appropriate Government shall fix a minimum rate of wages––

(a) for time work; or

(b) for piece work.

(3) Where employees are employed on piece work, for the purpose of sub-section (1), the appropriate Government shall fix a minimum rate of wages for securing such employees a minimum rate of wages on a time work basis.

(4) The minimum rate of wages on time work basis may be fixed in accordance with any one or more of the following wage periods, namely:–– (i) by the hour; or

(ii) by the day; or

(iii) by the month.

(5) Where the rates of wages are fixed by the hour or by the day or by the month, the manner of calculating the wages shall be such, as may be prescribed.

(6) For the purpose of fixation of minimum rate of wages under this section, the appropriate Government,—

(a) shall primarily take into account the skill of workers required for working under the categories of unskilled, skilled, semi-skilled and highly- skilled or geographical area or both; and

(b) may, in addition to such minimum rate of wages for certain category of workers, take into account their arduousness of work like temperature or humidity normally difficult to bear, hazardous occupations or processes or underground work as may be prescribed by that Government; and

(c) the norms of such fixation of minimum rate of wages shall be such as may be prescribed.

(7) The number of minimum rates of wages referred to in sub-section (6) may, as far as possible, be kept at minimum by the appropriate Government. 7. (1) Any minimum rate of wages fixed or revised by the appropriate Components of minimum wages.

Government under section 8 may consist of––

(a) a basic rate of wages and an allowance at a rate to be adjusted, at such intervals and in such manner as the appropriate Government may direct, to accord as nearly as practicable with the variation in the cost of living index number applicable to such workers (hereinafter referred to as "cost of living allowance"); orThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 239 (b) a basic rate of wages with or without the cost of living allowance, and the cash value of the concessions in respect of supplies of essential commodities at concession rates, where so authorised; or

(c) an all-inclusive rate allowing for the basic rate, the cost of living

allowance and the cash value of the concessions, if any.

(2) The cost of living allowance and the cash value of the concessions in respect of supplies of essential commodities at concession rate shall be computed by such authority, as the appropriate Government may by notification, appoint, at such intervals and in accordance with such directions as may be specified or given by the appropriate Government from time to time.

8. (1) In fixing minimum rates of wages for the first time or in revising minimum rates of wages under this Code, the appropriate Government shall either—

Procedure for fixing and revising minimum wages.

(a) appoint as many committees as it considers necessary to hold enquiries and recommend in respect of such fixation or revision, as the case may be; or

(b) by notification publish its proposals for the information of persons likely to be affected thereby and specify a date not less than two months from the date of the notification on which the proposals shall be taken into consideration.

(2) Every committee appointed by the appropriate Government under

clause (a) of sub-section (1) shall consist of persons––

(a) representing employers;

(b) representing employees which shall be equal in number of the

members specified in clause (a); and

(c) independent persons, not exceeding one-third of the total members

of the committee.

(3) After considering the recommendation of the committee appointed under clause (a) of sub-section (1) or, as the case may be, all representations received by it before the date specified in the notification under clause (b) of that sub-section, the appropriate Government shall by notification fix, or as the case may be, revise the minimum rates of wages and unless such notification otherwise provides, it shall come into force on the expiry of three months from the date of its issue:

Provided that where the appropriate Government proposes to revise the minimum rates of wages in the manner specified in clause (b) of sub-section (1), it shall also consult concerned Advisory Board constituted under section 42.

(4) The appropriate Government shall review or revise minimum rates of

wages ordinarily at an interval not exceeding five years.

9. (1) The Central Government shall fix floor wage taking into account minimum living standards of a worker in such manner as may be prescribed:

Power of Central Government to fix floor wage.

Provided that different floor wage may be fixed for different geographical

areas.

(2) The minimum rates of wages fixed by the appropriate Government under section 6 shall not be less than the floor wage and if the minimum rates of wages fixed by the appropriate Government earlier is more than the floor wage, then, the appropriate Government shall not reduce such minimum rates of wages fixed by it earlier.

(3) The Central Government may, before fixing the floor wage under sub- section (1), obtain the advice of the Central Advisory Board constituted under sub-section (1) of section 42 and consult State Governments in such manner as may be prescribed.

Wages of employee who works for less than normal working day.

10. If an employee whose minimum rate of wages has been fixed under this Code by the day works on any day on which he was employed for a period of less than the requisite number of hours constituting a normal working day, he shall, save as otherwise hereinafter provided, be entitled to receive wages in respect of work done on that day, as if he had worked for a full normal working day:

Provided that he shall not be entitled to receive wages for a full normal working day,—

(i) in any case where his failure to work is caused by his unwillingness to work and not by the omission of the employer to provide him with work; and

(ii) in such other cases and circumstances, as may be prescribed.

Wages for two or more classes of work.

11. Where an employee does two or more classes of work to each of which a different minimum rate of wages is applicable, the employer shall pay to such employee in respect of the time respectively occupied in each such class of work, wages at not less than the minimum rate in force in respect of each such class.

12. Where a person is employed on piece work for which minimum time rate and not a minimum piece rate has been fixed under this Code, the employer shall pay to such person wages at not less than the minimum time rate.

Minimum time rate wages for piece work.

13. (1) Where the minimum rates of wages have been fixed under this Code, the appropriate Government may —

Fixing hours of work for normal working day.

(a) fix the number of hours of work which shall constitute a normal working day inclusive of one or more specified intervals;

(b) provide for a day of rest in every period of seven days which shall be allowed to all employees or to any specified class of employees and for the payment of remuneration in respect of such days of rest;

(c) provide for payment for work on a day of rest at a rate not less than the overtime rate.

(2) The provisions of sub-section (1) shall, in relation to the following classes of employees apply, only to such extent and subject to such conditions as may be prescribed, namely:—

(a) employees engaged in any emergency which could not have been foreseen or prevented;

(b) employees engaged in work of the nature of preparatory or complementary work which must necessarily be carried on outside the limits laid down for the general working in the employment concerned;

(c) employees whose employment is essentially intermittent;

(d) employees engaged in any work which for technical reasons has to be completed before the duty is over; and

(e) employees engaged in a work which could not be carried on except at times dependent on the irregular action of natural forces.

(3) For the purposes of clause (c) of sub-section (2), employment of an employee is essentially intermittent when it is declared to be so by the appropriate Government on the ground that the daily hours of duty of the employee, or if there be no daily hours of duty as such for the employee, the hours of duty normally include periods of inaction during which the employee may be on duty but is not called upon to display either physical activity or sustained attention.

Wages for overtime work.

14. Where an employee whose minimum rate of wages has been fixed under this Code by the hour, by the day or by such a longer wage-period as may be prescribed, works on any day in excess of the number of hours constituting a normal working day, the employer shall pay him for every hour or for part of an hour so worked in excess, at the overtime rate which shall not be less than twice the normal rate of wages.

CHAPTER III

PAYMENT OF WAGES

Mode of payment of wages.

15. All wages shall be paid in current coin or currency notes or by cheque or by crediting the wages in the bank account of the employee or by the electronic mode:

Provided that the appropriate Government may, by notification, specify the industrial or other establishment, the employer of which shall pay to every person employed in such industrial or other establishment, the wages only by cheque or by crediting the wages in his bank account.

Fixation of wage period.

16. The employer shall fix the wage period for employees either as daily or weekly or fortnightly or monthly subject to the condition that no wage period in respect of any employee shall be more than a month:

Provided that different wage periods may be fixed for different

establishments.

17. (1) The employer shall pay or cause to be paid wages to the

employees, engaged on—

Time limit for payment of wages.

(i) daily basis, at the end of the shift;

(ii) weekly basis, on the last working day of the week, that is to say,

before the weekly holiday;

(iii) fortnightly basis, before the end of the second day after the end

of the fortnight;

(iv) monthly basis, before the expiry of the seventh day of the

succeeding month.

(2) Where an employee has been—

(i) removed or dismissed from service; or

(ii) retrenched or has resigned from service, or became unemployed

due to closure of the establishment,

the wages payable to him shall be paid within two working days of his removal, dismissal, retrenchment or, as the case may be, his resignation.

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the appropriate Government may, provide any other time limit for payment of wages where it considers reasonable having regard to the circumstances under which the wages are to be paid.

(4) Nothing contained in sub-section (1) or sub-section (2) shall affect any time limit for payment of wages provided in any other law for the time being in force.

Deductions which may be made from wages.

18. (1) Notwithstanding anything contained in any other law for the time being in force, there shall be no deductions from the wages of the employee, except those as are authorised under this Code.

Explanation.––For the purposes of this sub-section,—

(a) any payment made by an employee to the employer or his agent shall be deemed to be a deduction from his wages;

(b) any loss of wages to an employee, for a good and sufficient cause, resulting from—

(i) the withholding of increment or promotion, including the stoppage of an increment; or

(ii) the reduction to a lower post or time-scale; or

(iii) the suspension,

shall not be deemed to be a deduction from wages in a case where the provisions made by the employer for such purposes are satisfying the requirements specified in the notification issued by the appropriate Government in this behalf.

(2) Deductions from the wages of an employee shall be made in accordance with the provisions of this Code, and may be made only for the following purposes, namely:—

(a) fines imposed on him;

(b) deductions for his absence from duty;

(c) deductions for damage to or loss of goods expressly entrusted to the employee for custody; or for loss of money for which he is required to account, where such damage or loss is directly attributable to his neglect or default;

(d) deductions for house-accommodation supplied by the employer or by appropriate Government or any housing board set up under any law for the time being in force, whether the Government or such board is the employer or not, or any other authority engaged in the business of subsidising house-accommodation which may be specified in this behalf by the appropriate Government by notification;

(e) deductions for such amenities and services supplied by the employer as the appropriate Government or any officer specified by it in this behalf may, by general or special order, authorise and such deduction shall not exceed an amount equivalent to the value of such amenities and services.

Explanation.––For the purposes of this clause, the expression "services" does not include the supply of tools and raw materials required for the purposes of employment;

(f) deductions for recovery of—

(i) advances of whatever nature (including advances for travelling allowance or conveyance allowance), and the interest due in respect thereof, or for adjustment of overpayment of wages;

(ii) loans made from any fund constituted for the welfare of labour, as may be prescribed by the appropriate Government, and the interest due in respect thereof;

(g) deductions for recovery of loans granted for house-building or other purposes approved by the appropriate Government and the interest due in respect thereof;

(h) deductions of income-tax or any other statutory levy levied by the Central Government or State Government and payable by the employee or deductions required to be made by order of a court or other authority competent to make such order;

(i) deductions for subscription to, and for repayment of advances from any social security fund or scheme constituted by law including provident fund or pension fund or health insurance scheme or fund known by any other name;

(j) deductions for payment of co-operative society subject to such

conditions as the appropriate Government may impose;

16 of 1926.

(k) deductions made, with the written authorisation of the employee, for payment of the fees and contribution payable by him for the membership of any Trade Union registered under the Trade Unions Act, 1926;

(l) deductions for recovery of losses sustained by the railway administration on account of acceptance by the employee of counterfeit or base coins or mutilated or forged currency notes;

(m) deductions for recovery of losses sustained by the railway administration on account of the failure of the employee to invoice, to bill, to collect or to account for the appropriate charges due to the railway administration whether in respect of fares, freight, demurrage, wharfage and cranage or in respect of sale of food in catering establishments or in respect of commodities in grain shops or otherwise;

(n) deductions for recovery of losses sustained by the railway administration on account of any rebates or refunds incorrectly granted by the employee where such loss is directly attributable to his neglect or default;

(o) deductions, made with the written authorisation of the employee, for contribution to the Prime Minister's National Relief Fund or to such other fund as the Central Government may, by notification, specify.

(3) Notwithstanding anything contained in this Code and subject to the provisions of any other law for the time being in force, the total amount of deductions which may be made under sub-section (2) in any wage period from the wages of an employee shall not exceed fifty per cent. of such wages.

(4) Where the total deductions authorised under sub-section (2) exceed fifty per cent of the wages, the excess may be recovered in such manner, as may be prescribed.

(5) Where any deduction is made by the employer from the wages of an employee under this section but not deposited in the account of the trust or Government fund or any other account, as required under the provisions of the law for the time being in force, such employee shall not be held responsible for such default of the employer.

Fines.

19. (1) No fine shall be imposed on any employee save in respect of those acts and omissions on his part as the employer, with the previous approval of the appropriate Government or of such authority as may be prescribed, may have specified by notice under sub-section (2).

(2) A notice specifying such acts and omissions shall be exhibited in such manner as may be prescribed, on the premises in which the employment is carried on.

(3) No fine shall be imposed on any employee until such employee has been given an opportunity of showing cause against the fine or otherwise than in accordance with such procedure as may be prescribed for the imposition of fines.

(4) The total amount of fine which may be imposed in any one wage- period on any employee shall not exceed an amount equal to three per cent. of the wages payable to him in respect of that wage-period.

(5) No fine shall be imposed on any employee who is under the age of fifteen years.

(6) No fine imposed on any employee shall be recovered from him by instalments or after the expiry of ninety days from the day on which it was imposed.

(7) Every fine shall be deemed to have been imposed on the day of the act or omission in respect of which it was imposed.

(8) All fines and all realisations thereof shall be recorded in a register to be kept in such manner and form as may be prescribed; and all such realisations shall be applied only to such purposes beneficial to the persons employed in the establishment as are approved by the prescribed authority.

Deductions for absence from duty.

20. (1) Deductions may be made under clause (b) of sub-section (2) of section 18 only on account of the absence of an employee from the place or places where by the terms of his employment, he is required to work, such absence being for the whole or any part of the period during which he is so required to work.

(2) The amount of such deduction shall in no case bear to the wages payable to the employed person in respect of the wage-period for which the deduction is made in a larger proportion than the period for which he was absent bears to the total period within such wage-period during which by the terms of his employment he was required to work:

Provided that, subject to any rules made in this behalf by the appropriate Government, if ten or more employed persons acting in concert absent themselves without due notice (that is to say without giving the notice which is required under the terms of their contracts of employment) and without reasonable cause, such deduction from any such person may include such amount not exceeding his wages for eight days as may by any such terms be due to the employer in lieu of due notice.

Explanation.––For the purposes of this section, an employee shall be deemed to be absent from the place where he is required to work if, although present in such place, he refuses, in pursuance of a stay-in strike or for any other cause which is not reasonable in the circumstances, to carry out his work.

Deductions for damage or loss.

21. (1) A deduction under clause (c) or clause (n) of sub-section (2) of section 18 for damage or loss shall not exceed the amount of the damage or loss caused to the employer by negligence or default of the employee.

(2) A deduction shall not be made under sub-section (1) until the employee has been given an opportunity of showing cause against the deduction or otherwise than in accordance with such procedure as may be prescribed for the making of such deductions.

(3) All such deductions and all realisations thereof shall be recorded in a

register to be kept in such form as may be prescribed.

Deductions for services rendered.

22. A deduction under clause (d) or clause (e) of sub-section (2) of section 18 shall not be made from the wages of an employee, unless the house- accommodation amenity or service has been accepted by him as a term of employment or otherwise and such deduction shall not exceed an amount equivalent to the value of the house-accommodation amenity or service supplied and shall be subject to such conditions as the appropriate Government may impose.

Deductions for recovery of advances.

23. Deductions under clause (f) of sub-section (2) of section 18 for recovery of advances given to an employee shall be subject to the following conditions, namely:––

(a) recovery of advance of money given to an employee before the employment began shall be made from the first payment of wages to him in respect of a complete wage-period but no recovery shall be made of such advances given for travelling expenses;

(b) recovery of advance of money given to an employee after the employment began shall be subject to such conditions as may be prescribed;

(c) recovery of advances of wages to an employee not already

earned shall be subject to such conditions as may be prescribed.

Deductions for recovery of loans.

24. Deductions under clause (g) of sub-section (2) of section 18 for recovery of loans granted to an employee, regulating the extent to which such loans may be granted and the rate of interest payable thereon, shall be such as may be prescribed.

25. The provisions of this Chapter shall not apply to the Government establishments unless the appropriate Government, by notification, applies such provisions to the Government establishments specified in the said notification.

Chapter not to apply to Government establishments.

CHAPTER IV

PAYMENT OF BONUS

Eligibility for bonus, etc. 26. (1) There shall be paid to every employee, drawing wages not exceeding such amount per mensem, as determined by notification, by the appropriate Government, by his employer, who has put in at least thirty days work in an accounting year, an annual minimum bonus calculated at the rate of eight and one-third per cent. of the wages earned by the employee or one hundred rupees, whichever is higher whether or not the employer has any allocable surplus during the previous accounting year.

(2) For the purpose of calculation of the bonus where the wages of the employee exceeds such amount per mensem, as determined by notification by the appropriate Government, the bonus payable to such employee under sub- sections (1) and (3) shall be calculated as if his wage were such amount, so determined by the appropriate Government or the minimum wage fixed by the appropriate Government, whichever is higher.

(3) Where in respect of any accounting year referred to in sub-section (1), the allocable surplus exceeds the amount of minimum bonus payable to the employees under that sub-section, the employer shall, in lieu of such minimum bonus, be bound to pay to every employee in respect of that accounting year, bonus which shall be an amount in proportion to the wages earned by the employee during the accounting year, subject to a maximum of twenty per cent. of such wages.

(4) In computing the allocable surplus under this section, the amount set on or the amount set off under the provisions of section 36 shall be taken into account in accordance with the provisions of that section.

(5) Any demand for bonus in excess of the bonus referred to in sub- section (1), either on the basis of production or productivity in an accounting year for which the bonus is payable shall be determined by an agreement or settlement between the employer and the employees, subject to the condition that the total bonus including the annual minimum bonus referred to in sub-section (1) shall not exceed twenty per cent. of the wages earned by the employee in the accounting year.

(6) In the first five accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, bonus shall be payable only in respect of the accounting year in which the employer derives profit from such establishment and such bonus shall be calculated in accordance with the provisions of this Code in relation to that year, but without applying the provisions of section 36.

(7) For the sixth and seventh accounting years following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 36 shall apply subject to the following modifications, namely:—

(i) for the sixth accounting year set on or set off, as the case may be, shall be made, in the manner as may be prescribed by the Central Government, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth and sixth accounting years;

(ii) for the seventh accounting year set on or set off, as the case may be, shall be made, in the manner as may be prescribed by the Central Government, taking into account the excess or deficiency, if any, as the case may be, of the allocable surplus set on or set off in respect of the fifth, sixth and seventh accounting years.

(8) From the eighth accounting year following the accounting year in which the employer sells the goods produced or manufactured by him or renders services, as the case may be, from such establishment, the provisions of section 36 shall apply in relation to such establishment as they apply in relation to any other establishment.

Explanation 1.––For the purpose of sub-section (6), an employer shall not be deemed to have derived profit in any accounting year, unless––

(a) he has made provision for depreciation of that year to which he is entitled under the Income-tax Act or, as the case may be, under the agricultural income tax law; andThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 247 (b) the arrears of such depreciation and losses incurred by him in respect of the establishment for the previous accounting years have been fully set off against his profits.

Explanation 2.––For the purposes of sub-sections (6), (7) and (8), sale of the goods produced or manufactured during the course of the trial running of any factory or of the prospecting stage of any mine or an oil-field shall not be taken into consideration and where any question arises with regard to such production or manufacture, the appropriate Government may, after giving the parties a reasonable opportunity of representing the case, decide upon the issue.

(9) The provisions of sub-sections (6), (7) and (8) shall, so far as may be, apply to new departments or undertakings or branches set up by existing establishments.

Proportionate reduction in bonus in certain cases.

27. Where an employee has not worked for all the working days in an accounting year, the minimum bonus under sub-section (1) of section 26, if such bonus is higher than eight and one third per cent. of the salary or wage of the days such employee has worked in that accounting year, shall be proportionately reduced.

28. For the purposes of section 27, an employee shall be deemed to have worked in an establishment in any accounting year also on the days on which,–

Computation of number of working days.

20 of 1946. 14 of 1947.

(a) he has been laid off under an agreement or as permitted by standing orders under the Industrial Employment (Standing Orders) Act, 1946, or under the Industrial Disputes Act, 1947, or under any other law applicable to the establishment;

(b) he has been on leave with salary or wages;

(c) he has been absent due to temporary disablement caused by

accident arising out of and in the course of his employment; and

(d) the employee has been on maternity leave with salary or wages,

during the accounting year.

Disqualification for bonus.

29. Notwithstanding anything contained in this Code, an employee shall be disqualified from receiving bonus under this Code, if he is dismissed from service for––

(a) fraud; or

(b) riotous or violent behaviour while on the premises of the

establishment; or

(c) theft, misappropriation or sabotage of any property of the

establishment; or

(d) conviction for sexual harassment.

Establishments to include departments, undertakings and branches.

30. Where an establishment consists of different departments or undertakings or has branches, whether situated in the same place or in different places, all such departments or undertakings or branches shall be treated as parts of the same establishment for the purpose of computation of bonus under this Code:

Provided that where for any accounting year a separate balance sheet and profit and loss account are prepared and maintained in respect of any such department or undertaking or branch, then, such department or undertaking or branch shall be treated as a separate establishment for the purpose of computationThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 248 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) of bonus, under this Code for that year, unless such department or undertaking or branch was, immediately before the commencement of that accounting year treated as part of the establishment for the purpose of computation of bonus.

Payment of bonus out of allocable surplus.

31. (1) The bonus shall be paid out of the allocable surplus which shall be an amount equal to sixty per cent. in case of a banking company and sixty-seven per cent. in case of other establishment, of the available surplus and the available surplus shall be the amount calculated in accordance with section 33.

(2) Audited accounts of companies shall not normally be questioned.

(3) Where there is any dispute regarding the quantum of bonus, the authority notified by the appropriate Government having jurisdiction may call upon the employer to produce the balance sheet before it, but the authority shall not disclose any information contained in the balance sheet unless agreed to by the employer.

32. The gross profits derived by an employer from an establishment in Computation of gross profits.

respect of the accounting year shall,––

(a) in the case of a banking company, be calculated in the manner as may be prescribed by the Central Government;

(b) in any other case, be calculated in the manner as may be prescribed by the Central Government.

Computation of available surplus.

33. The available surplus in respect of any accounting year shall be the gross profits for that year after deducting therefrom the sums referred to in section 34:

Provided that the available surplus in respect of the accounting year commencing on any day in a year after the commencement of this Code and in respect of every subsequent accounting year shall be the aggregate of—

(a) the gross profits for that accounting year after deducting therefrom the sums referred to in section 34; and

(b) an amount equal to the difference between––

(i) the direct tax, calculated in accordance with the provisions of section 35, in respect of an amount equal to the gross profits of the employer for the immediately preceding accounting year; and

(ii) the direct tax, calculated in accordance with provisions of section 35, in respect of an amount equal to the gross profits of the employer for such preceding accounting year after deducting therefrom the amount of bonus which the employer has paid or is liable to pay to his employees in accordance with the provisions of this Code for that year.

34. The following sums shall be deducted from the gross profits as prior charges, namely:—

Sums deductible from gross profits.

(a) any amount by way of depreciation admissible in accordance with the provisions of sub-section (1) of section 32 of the Income-tax Act or in accordance with the provisions of the agricultural income-tax law, for the time being in force, as the case may be;

(b) subject to the provisions of section 35, any direct tax which the employer is liable to pay for the accounting year in respect of his income, profits and gains during that year;

(c) such further sums in respect of the employer as may be prescribed

by the Central Government.

35. For the purposes of this Code, any direct tax payable by the employer for any accounting year shall, subject to the following provisions, be calculated at the rates applicable to the income of the employer for that year, namely:—

Calculation of direct tax payable by employer.

(a) in calculating such tax no account shall be taken of,––

(i) any loss incurred by the employer in respect of any previous accounting year and carried forward under any law for the time being in force relating to direct taxes;

(ii) any arrears of depreciation which the employer is entitled to add to the amount of the allowance for depreciation for any succeeding accounting year or years under sub-section (2) of section 32 of the Income-tax Act;

(b) where the employer is a religious or a charitable institution to which the provisions of section 41 do not apply and the whole or any part of its income is exempt from the tax under the Income-tax Act, then, with respect to the income so exempted, such institution shall be treated as if it were a company in which the public are substantially interested within the meaning of that Act;

(c) where the employer is an individual or a Hindu undivided family, the tax payable by such employer under the Income-tax Act shall be calculated on the basis that the income derived by him from the establishment is his only income;

(d) where the income of any employer includes any profits and gains derived from the export of any goods or merchandise out of India and any rebate on such income is allowed under any law for the time being in force relating to direct taxes, then, no account shall be taken of such rebate;

(e) no account shall be taken of any rebate other than development rebate or investment allowance or development allowance or credit or relief or deduction (not hereinbefore mentioned in this section) in the payment of any direct tax allowed under any law for the time being in force relating to direct taxes or under the relevant annual Finance Act, for the development of any industry.

Set on and set off of allocable surplus.

36. (1) Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 26, then, the excess shall, subject to a limit of twenty per cent. of the total salary or wage of the employees employed in the establishment in that accounting year, be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year to be utilised for the purpose of payment of bonus in such manner as may be prescribed by the Central Government.

(2) Where for any accounting year, there is no available surplus or the allocable surplus in respect of that year falls short of the amount of minimum bonus payable to the employees in the establishment under section 26, and thereThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 250 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) is no amount or sufficient amount carried forward and set on under sub-section (1) which could be utilised for the purpose of payment of the minimum bonus, then, such minimum amount or the deficiency, as the case may be, shall be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year in such manner as may be prescribed by the Central Government.

(3) The principle of set on and set off as may be provided in rules by the Central Government under this Code shall apply to all other cases not covered by sub-section (1) or sub-section (2) for the purpose of payment of bonus under this Code.

(4) Where in any accounting year any amount has been carried forward and set on or set off under this section, then, in calculating bonus for the succeeding accounting year, the amount of set on or set off carried forward from the earliest accounting year shall first be taken into account.

37. Where in any accounting year,—

(a) an employer has paid any puja bonus or other customary bonus to employee; or

Adjustment of customary or interim bonus against bonus payable under this Code.

(b) an employer has paid a part of the bonus payable under this Code to an employee before the date on which such bonus becomes payable, then, the employer shall be entitled to deduct the amount of bonus so paid from the amount of bonus payable by him to the employee under this Code in respect of that accounting year and the employee shall be entitled to receive only the balance.

Deduction of certain amounts from bonus payable.

38. Where in any accounting year, an employee is found guilty of misconduct causing financial loss to the employer, then, it shall be lawful for the employer to deduct the amount of loss from the amount of bonus payable by him to the employee under this Code in respect of that accounting year only and the employee shall be entitled to receive the balance, if any.

Time limit for payment of bonus.

39. (1) All amounts payable to an employee by way of bonus under this Code shall be paid by crediting it in the bank account of the employee by his employer within a period of eight months from the close of the accounting year:

Provided that the appropriate Government or such authority as the appropriate Government may specify in this behalf may, upon an application made to it by the employer and for sufficient reasons, by order, extend the said period of eight months to such further period or periods as it thinks fit; so, however, that the total period so extended shall not in any case exceed two years.

(2) Notwithstanding anything contained in sub-section (1), where there is a dispute regarding payment of bonus pending before any authority, such bonus shall be paid, within a period of one month from the date on which the award becomes enforceable or the settlement comes into operation, in respect of such dispute:

Provided that if, there is a dispute for payment at the higher rate, the employer shall pay eight and one-third per cent. of the wages earned by the employee as per the provisions of this Code within a period of eight months from the close of the accounting year.

Application of this Chapter to establishments in public sector in certain cases.

40. (1) If in any accounting year an establishment in public sector sells any goods produced or manufactured by it or renders any services, in competition with an establishment in private sector, and the income from such sale or services or both, is not less than twenty per cent. of the gross income of the establishment in public sector for that year, then, the provisions of this Chapter shall apply in relation to such establishment in public sector as they apply in relation to a like establishment in private sector.

(2) Save as otherwise provided in sub-section (1), nothing in this Chapter

shall apply to the employees employed by any establishment in public sector.

41. (1) Nothing in this Chapter shall apply to––

Non-applicability of this Chapter.

(a) employees employed by the Life Insurance Corporation of India;

(b) seamen as defined in clause (42) of section 3 of the Merchant

44 of 1958.

Shipping Act, 1958;

9 of 1948.

(c) employees registered or listed under any scheme made under the Dock Workers (Regulation of Employment) Act, 1948, and employed by registered or listed employers;

(d) employees employed by an establishment under the authority of any department of the Central Government or a State Government or a local authority;

(e) employees employed by––

(i) the Indian Red Cross Society or any other institution of a

like nature including its branches;

(ii) universities and other educational institutions;

(iii) institutions including hospitals, chamber of commerce and

social welfare institutions established not for purposes of profit;

(f) employees employed by the Reserve Bank of India;

(g) employees employed by public sector financial institution other than a banking company, which the Central Government may, by notification, specify, having regard to—

(i) its capital structure;

(ii) its objectives and the nature of its activities;

(iii) the nature and extent of financial assistance or any

concession given to it by the Government; and

(iv) any other relevant factor;

(h) employees employed by inland water transport establishments

operating on routes passing through any other country; and

(i) employees of any other establishment which the appropriate Government may, by notification, exempt having regard to the overall benefits under any other scheme of profit sharing available in such establishments to the employees.

(2) Subject to the provisions of sub-section (1) and notwithstanding anything contained in any other provisions of this Chapter, the provisions of this Chapter shall apply to such establishment in which twenty or more persons are employed or were employed on any day during an accounting year.

CHAPTER V

ADVISORY BOARD

42. (1) The Central Government shall constitute the Central Advisory Board which shall consist of persons to be nominated by the Central Government—

Central Advisory Board and State Advisory Boards.

(a) representing employers;

(b) representing employees which shall be equal in number of the members specified in clause (a);

(c) independent persons, not exceeding one-third of the total members of the Board; and

(d) five representatives of such State Governments as may be nominated by the Central Government.

(2) One-third of the members referred to in sub-section (1) shall be women and a member specified in clause (c) of the said sub-section shall be appointed by the Central Government as the Chairperson of the Board.

(3) The Central Advisory Board constituted under sub-section (1) shall from time to time advise the Central Government on reference of issues relating to––

(a) fixation or revision of minimum wages and other connected matters;

(b) providing increasing employment opportunities for women;

(c) the extent to which women may be employed in such establishments or employments as the Central Government may, by notification, specify in this behalf; and

(d) any other matter relating to this Code,

and on such advice, the Central Government may issue directions to the State Government as it deems fit in respect of matters relating to issues referred to the Board.

(4) Every State Government shall constitute a State Advisory Board for advising the State Government—

(a) in fixation or revision of minimum wages and other connected matters;

(b) for the purpose of providing increasing employment opportunities for women;

(c) with regard to the extent to which women may be employed in such establishments or employments as the State Government may, by notification, specify in this behalf; and

(d) in any other matter relating to this Code, which the State Government may refer from time to time to the Board.

(5) The State Advisory Board may constitute one or more committees or sub-committees to look into issues pertaining to matters specified in clauses (a) to (d) of sub-section (4).

(6) The State Advisory Board and each of the committees and sub-

committees thereof shall consist of persons––

(a) representing employers;

(b) representing employees which shall be equal in number of the

members specified in clause (a); and

(c) independent persons, not exceeding one-third of the total members

of the Board or committee or sub-committee, as the case may be.

(7) One-third of the members referred to in sub-section (6) shall be women and one among the members specified in clause (c) of the said sub-

section shall be––

(a) appointed by the State Government as the Chairperson of the

Board;

(b) appointed by the State Advisory Board as the Chairperson of the

committee or sub-committee, as the case may be.

(8) In tendering its advice in the matters specified in clause (b) or clause

(c) of sub-section (4), the State Advisory Board shall have regard to the number of women employed in the concerned establishment, or employment, the nature of work, hours of work, suitability of women for employment, as the case may be, the need for providing increasing employment opportunities for women, including part time employment, and such other relevant factors as the Board may think fit.

(9) The State Government may, after considering the advice tendered to it by the State Advisory Board and after inviting and considering the representations from establishment or employees or any other person which that Government thinks fit, issue such direction as may be deemed necessary.

(10) The Central Advisory Board referred to in sub-section (1) and the State Advisory Board referred to in sub-section (4) shall respectively regulate

their own procedure including that of the committees and sub-committees constituted by the State Advisory Board, in such manner as may be prescribed.

(11) The terms of office of the Central Advisory Board referred to in sub-section (1) and the State Advisory Board referred to in sub-section (4) including that of the committees and sub-committees constituted by the State Advisory Board, shall be such as may be prescribed.

CHAPTER VI

PAYMENT OF DUES, CLAIMS AND AUDIT

43. Every employer shall pay all amounts required to be paid under this

Code to every employee employed by him:

Responsibility for payment of various dues.

Provided that where such employer fails to make such payment in accordance with this Code, then, the company or firm or association or any other person who is the proprietor of the establishment, in which the employee is employed, shall be responsible for such payment.

9 of 1932.

Explanation.––For the purposes of this section the expression "firm" shall have the same meaning as assigned to it in the Indian Partnership Act, 1932.

44. (1) Subject to the other provisions of this Code, all amounts payable to an employee under this Code shall, if such amounts could not or cannot be paid on account of his death before payment or on account of his whereabouts not being known,—

Payment of various undisbursed dues in case of death of employee.

(a) be paid to the person nominated by him in this behalf in accordance with the rules made under this Code; or

(b) where no such nomination has been made or where for any reasons such amounts cannot be paid to the person so nominated, be deposited with the such authority, as may be prescribed, who shall deal with the amounts so deposited in the manner as may be prescribed.

(2) Where in accordance with the provisions of sub-section (1), all amounts payable to an employee under this Code—

(a) are paid by the employer to the person nominated by the employee;

or

(b) are deposited by the employer with the authority referred to in clause (b) of sub-section (1), then, the employer shall be discharged of his liability to pay those amounts.

45. (1) The appropriate Government may, by notification, appoint one or more authorities, not below the rank of a Gazetted Officer, to hear and determine the claims which arises under the provisions of this Code.

Claims under Code and procedure thereof.

(2) The authority appointed under sub-section (1), while deciding the claim under that sub-section, may order, having regard to the circumstances under which the claim arises, the payment of compensation in addition to the claim determined, which may extend to ten times of the claim determined and endeavour shall be made by the authority to decide the claim within a period of three months.

(3) If an employer fails to pay the claim determined and compensation ordered to be paid under sub-section (2), the authority shall issue a certificate of recovery to the Collector or District Magistrate of the district where the establishment is located who shall recover the same as arrears of land revenue and remit the same to the authority for payment to the concerned employee.

(4) Any application before the authority for claim referred to in sub- section (1) may be filed by,––

(a) the employee concerned; or

16 of 1926.

(b) any Trade Union registered under the Trade Unions Act, 1926 of which the employee is a member; or

(c) the Inspector-cum-Facilitator.

(5) Subject to such rules as may be made, a single application may be filed under this section on behalf or in respect of any number of employees employed in an establishment.

(6) The application under sub-section (4) may be filed within a period of three years from the date on which claims referred to in sub-section (1) arises:

Provided that the authority referred to in sub-section (1) may, entertain the application after three years on sufficient cause being shown by the applicant for such delay.

5 of 1908.

2 of 1974.

(7) The authority appointed under sub-section (1) and the appellate authority appointed under sub-section (1) of section 49, shall have all the powers of a civil court under the Code of Civil Procedure, 1908, for the purpose of taking evidence and of enforcing the attendance of witnesses and compelling the production of documents, and every such authority or appellate authority shall be deemed to be a civil court for all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973.

46. Notwithstanding anything contained in this Code, where any dispute

arises between an employer and his employees with respect to—

Reference of disputes under this Code. (a) fixation of bonus or eligibility for payment of bonus under the

provisions of this Code; or

14 of 1947.

(b) the application of this Code, in respect of bonus, to an establishment in public sector, then, such dispute shall be deemed to be an industrial dispute within the meaning of the Industrial Disputes Act, 1947.

47. (1) Where, during the course of proceedings before—

(a) the authority under section 45; or

(b) the appellate authority under section 49; or

(c) a Tribunal; or

Presumption about accuracy of balance sheet and profit and loss account of corporations and companies.

(d) an arbitrator referred to in clause (aa) of section 2 of the

14 of 1947.

Industrial Disputes Act, 1947,

18 of 2013.

in respect of any dispute of the nature specified in sections 45 and 46 or in respect of an appeal under section 49, the balance sheet and the profit and loss account of an employer, being a corporation or a company (other than a banking company), duly audited by the Comptroller and Auditor-General of India or by auditors duly qualified to act as auditors of companies under section 141 of the Companies Act, 2013, are produced before it, then, the said authority, appellate authority, Tribunal or arbitrator, as the case may be, may presume the statements and particulars contained in such balance sheet and profit and loss account to be accurate and it shall not be necessary for the corporation or the company to prove the accuracy of such statements and particulars by the filing of an affidavit or by any other mode:

Provided that where the said authority, appellate authority, Tribunal or arbitrator, as the case may be, is satisfied that the statements and particulars contained in the balance sheet or the profit and loss account of the corporation or the company are not accurate, it may take such steps as it thinks necessary to find out the accuracy of such statements and particulars.

(2) When an application is made to the authority, appellate authority, Tribunal or arbitrator, as the case may be, referred to in sub-section (1), by any Trade Union being a party to the dispute or as the case may be, an appeal, and where there is no Trade Union, by the employees being a party to the dispute, or as the case may be, an appeal, requiring any clarification relating to any item in the balance sheet or the profit and loss account, then such authority, appellate authority, Tribunal or arbitrator, may, after satisfying itself that such clarification is necessary, by order, direct the corporation or, as the case may be, the company, to furnish to the Trade Union or the employees such clarification within such time as may be specified in the direction and the corporation or, as the case may be, the company, shall comply with such direction.

Audit of account of employers not being coporations or companies.

18 of 2013.

48. (1) Where any claim, dispute or appeal with respect to bonus payable under this Code between an employer, not being a corporation or a company, and his employees is pending before any authority, appellate authority, Tribunal or arbitrator, as the case may be, as referred to in sub-section (1) of section 47 and the accounts of such employer audited by any auditor duly qualified to act as auditor of companies under the provisions of section 141 of the Companies Act, 2013, are produced before such authority, appellate authority, Tribunal or arbitrator, then the provisions of section 47 shall, so far as may be, apply to the accounts so audited.

(2) When the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, finds that the accounts of such employer have not been audited by any such auditor and it is of opinion that an audit of the accounts of such employer is necessary for deciding the question referred to it, then, such authority, appellate authority, Tribunal or arbitrator, may, by order, direct the employer to get his accounts audited within such time as may be specified in the direction or within such further time as it may allow by such auditor or auditors as it thinks fit and thereupon the employer shall comply with such direction.

(3) Where an employer fails to get the accounts audited under sub- section (2), the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, may, without prejudice to the provisions of section 54, get the accounts audited by such auditor or auditors as it thinks fit. (4) When the accounts are audited under sub-section (2) or sub-section (3), the provisions of section 47 shall, so far as may be, apply to the accounts so audited. (5) The expenses of, and incidental to, any audit under sub-section (3) including the remuneration of the auditor or auditors shall be determined by the authority, appellate authority, Tribunal or arbitrator, referred to in sub-section (1), as the case may be, and paid by the employer and in default of such payment shall be recoverable by the authority referred to in sub-section (3) of section 45 from the employer in the manner provided in that sub-section.

Appeal.

49. (1) Any person aggrieved by an order passed by the authority under sub-section (2) of section 45 may prefer an appeal, to the appellate authority having jurisdiction appointed by the appropriate Government, by notification, for such purpose, within ninety days from the date of such order, in such form and manner as may be prescribed:

Provided that the appellate authority may entertain the appeal after ninety days if it satisfied that the delay in filing the appeal has occurred due to sufficient cause.

(2) The appellate authority shall be appointed from the officers of the appropriate Government holding the post at least one rank higher than the authority referred under sub-section (1) of section 45.

(3) The appellate authority shall, after hearing the parties in the appeal, dispose of the appeal and endeavour shall be made to dispose of the appeal within a period of three months.

(4) The outstanding dues under the orders of the appellate authority shall be recovered by the authority referred to in section 45, by issuing the certificate of recovery in the manner specified in sub-section (3) of that section.

Records, returns and notices.

50. (1) Every employer of an establishment to which this Code applies shall maintain a register containing the details with regard to persons employed, muster roll, wages and such other details in such manner as may be prescribed.

(2) Every employer shall display a notice on the notice board at a prominent place of the establishment containing the abstract of this Code, category- wise wage rates of employees, wage period, day or date and time of payment of wages, and the name and address of the Inspector-cum-Facilitator having jurisdiction.

(3) Every employer shall issue wage slips to the employees in such form

and manner as may be prescribed.

(4) The provisions of sub-sections (1) to (3) shall not apply in respect of the employer to the extent he employs not more than five persons for agriculture or domestic purpose:

Provided that such employer, when demanded, shall produce before the Inspectorcum-Facilitator, the reasonable proof of the payment of wages to the persons so employed.

Explanation.—For the purposes of this sub-section, the expression "domestic purpose" means the purpose exclusively relating to the home or family affairs of the employer and does not include any affair relating to any establishment, industry, trade, business, manufacture or occupation.

CHAPTER VII

INSPECTOR-CUM-FACILITATOR

Appointment of Inspector- cum-Facilitators and their powers.

51. (1) The appropriate Government may, by notification, appoint Inspector- cum-Facilitators for the purposes of this Code who shall exercise the powers conferred on them under sub-section (4) throughout the State or such geographical limits assigned in relation to one or more establishments situated in such State or geographical limits or in one or more establishments, irrespective of geographical limits, assigned to him by the appropriate Government, as the case may be.

(2) The appropriate Government may, by notification, lay down an inspection scheme which may also provide for generation of a web-based inspection and calling of information relating to the inspection under this Code electronically.

(3) Without prejudice to the provisions of sub-section (2), the appropriate Government may, by notification, confer such jurisdiction of randomised selection of inspection for the purposes of this Code to the Inspector-cum-Facilitator as may be specified in such notification.

45 of 1860.

(4) Every Inspector-cum-Facilitator appointed under sub-section (1) shall be deemed to be public servant within the meaning of section 21 of the Indian Penal Code.

(5) The Inspector-cum-Facilitator may––

(a) advice to employers and workers relating to compliance with the

provisions of this Code;

(b) inspect the establishments as assigned to him by the appropriate Government, subject to the instructions or guidelines issued by the appropriate Government from time to time.

(6) Subject to the provisions of sub-section (4), the Inspector-cum- Facilitator may,—

(a) examine any person who is found in any premises of the establishment, whom the Inspector-cum-Facilitator has reasonable cause to believe, is a worker of the establishment;

(b) require any person to give any information, which is in his power to give with respect to the names and addresses of the persons;

(c) search, seize or take copies of such register, record of wages or notices or portions thereof as the Inspector-cum-Facilitator may consider relevant in respect of an offence under this Code and which the Inspector- cum-Facilitator has reason to believe has been committed by the employer;

(d) bring to the notice of the appropriate Government defects or abuses not covered by any law for the time being in force; and

(e) exercise such other powers as may be prescribed.

45 of 1860.

(7) Any person required to produce any document or to give any information required by a Inspector-cum-Facilitator under sub-section (5) shall be deemed to be legally bound to do so within the meaning of section 175 and section 176 of the Indian Penal Code.

2 of 1974.

(8) The provisions of the Code of Criminal Procedure, 1973 shall, so far as may be, apply to the search or seizure under sub-section (5) as they apply to the search or seizure made under the authority of a warrant issued under section 94 of the said Code.

CHAPTER VIII

OFFENCES AND PENALTIES

Cognizance of offences.

16 of 1926.

52. (1) No court shall take cognizance of any offence punishable under this Code, save on a complaint made by or under the authority of the appropriate Government or an officer authorised in this behalf, or by an employee or a registered Trade Union registered under the Trade Unions Act, 1926 or an Inspector-cum-Facilitator.

2 of 1974.

(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, no court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the first class shall try the offences under this Code.

Power of officers of appropriate Government to impose penalty in certain cases.

53. (1) Notwithstanding anything contained in section 52, for the purpose of imposing penalty under clauses (a) and (c) of sub-section (1) and sub-section (2) of section 54 and sub-section (7) of section 56, the appropriate Government may appoint any officer not below the rank of Under Secretary to the Government of India or an officer of equivalent rank in the State Government, as the case may be, for holding enquiry in such manner, as may be prescribed by the Central Government.

(2) While holding the enquiry, the officer referred to in sub-section (1) shall have the power to summon and enforce attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document, which in the opinion of such officer, may be useful for or relevant to the subject matter of the enquiry and if, on such enquiry, he is satisfied that the person has committed any offence under the provisions referred to in sub-section (1), he may impose such penalty as he thinks fit in accordance with such provisions.

54. (1) Any employer who—

Penalties for offences.

(a) pays to any employee less than the amount due to such employee under the provisions of this Code shall be punishable with fine which may

extend to fifty thousand rupees;

(b) having been convicted of an offence under clause (a) is again found guilty of similar offence under this clause, within five years from

the date of the commission of the first or subsequent offence, he shall, on the second and the subsequent commission of the offence, be punishable

with imprisonment for a term which may extend to three months or with

fine which may extend to one lakh rupees, or with both;

(c) contravenes any other provision of this Code or any rule made

or order made or issued thereunder shall be punishable with fine which

may extend to twenty thousand rupees;

(d) having been convicted of an offence under clause (c) is again

found guilty of similar offence under this clause, within five years from the date of the commission of the first or subsequent offence, he shall,

on the second and the subsequent commission of the offence under this

clause, be punishable with imprisonment for a term which may extend to one month or with fine which may extend to forty thousand rupees, or

with both.

(2) Notwithstanding anything contained in sub-section (1), for the offences of non-maintenance or improper maintenance of records in the establishment,

the employer shall be punishable with fine which may extend to ten thousand rupees.

(3) Notwithstanding anything contained in clause (c) of sub-section (1)

or sub-section (2), the Inspector-cum-Facilitator shall, before initiation of prosecution proceeding for the offences under the said clause or sub-section,

give an opportunity to the employer to comply with the provisions of this Code by way of a written direction, which shall lay down a time period for such

compliance, and, if the employer complies with the direction within such period,

the Inspector-cum-Facilitator shall not initiate such prosecution proceeding and, no such opportunity shall be accorded to an employer, if the violation of the

same nature of the provisions under this Code is repeated within a period of five years from the date on which such first violation was committed and in such

case the prosecution shall be initiated in accordance with the provisions of this Code.

55. (1) If the person committing an offence under this Code is a company, Offences by companies.

every person who, at the time the offence was committed was in charge of, and was responsible to the company for the conduct of business of the company, as

well as the company, shall be deemed to be guilty of the offence and shall be

liable to be proceeded against and punished accordingly:

Provided that nothing contained in this sub-section shall render any such

person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the

commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Code has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation.––For the purposes of this section,––

(a) "company" means anybody corporate and includes—

(i) a firm; or

(ii) a limited liability partnership registered under the Limited

6 of 2009.

Liability Partnership Act, 2008; or

(iii) other association of individuals; and

(b) "director" in relation to a firm means a partner in the firm.

2 of 1974.

Composition of offences.

56. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, any offence punishable under this Code, not being an offence punishable with imprisonment only, or with imprisonment and also with fine, may, on an application of the accused person, either before or after the institution of any prosecution, be compounded by a Gazetted Officer, as the appropriate Government may, by notification, specify, for a sum of fifty per cent. of the maximum fine provided for such offence, in the manner as may be prescribed.

(2) Nothing contained in sub-section (1) shall apply to an offence committed by a person for the second time or thereafter within a period of five years from the date— (i) of commission of a similar offence which was earlier compounded; (ii) of commission of similar offence for which such person was earlier convicted.

(3) Every officer referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the appropriate Government.

(4) Every application for the compounding of an offence shall be made in such manner as may be prescribed.

(5) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted in relation to such offence, against the offender in relation to whom the offence is so compounded.

(6) Where the composition of any offence is made after the institution of any prosecution, such composition shall be brought by the officer referred to in sub-section (1) in writing, to the notice of the court in which the prosecution is pending and on such notice of the composition of the offence being given, the person against whom the offence is so compounded shall be discharged.

(7) Any person who fails to comply with an order made by the officer referred to in sub-section (1), shall be punishable with a sum equivalent to twenty per cent. of the maximum fine provided for the offence, in addition to such fine.

(8) No offence punishable under the provisions of this Code shall be compounded except under and in accordance with the provisions of this section.

CHAPTER IX

MISCELLANEOUS

Bar of suits.

57. No court shall entertain any suit for the recovery of minimum wages, any deduction from wages, discrimination in wages and payment of bonus, in so far as the sum so claimed—

(a) forms the subject of claims under section 45;

(b) has formed the subject of a direction under this Code;

(c) has been adjudged in any proceeding under this Code;

(d) could have been recovered under this Code.

Protection of action taken in good faith.

58. No suit, prosecution or any other legal proceeding shall lie against the appropriate Government or any officer of that Government for anything which is in good faith done or intended to be done under this Code.

Burden of proof.

59. Where a claim has been filed on account of non-payment of remuneration or bonus or less payment of wages or bonus or on account of making deductions not authorised by this Code from the wages of an employee, the burden to prove that the said dues have been paid shall be on the employer.

Contracting out.

60. Any contract or agreement whereby an employee relinquishes the right to any amount or the right to bonus due to him under this Code shall be null and void in so far as it purports to remove or reduce the liability of any person to pay such amount under this Code.

61. The provisions of this Code shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in the terms of any award, agreement, settlement or contract of service.

Effect of laws agreements, etc., inconsistent with this Code.

Delegation of powers.

62. The appropriate Government may, by notification, direct that any power exercisable by it under this Code shall, in relation to such matters and subject to such conditions, if any, as may be specified in the notification, be also exercisable—

(a) where the appropriate Government is the Central Government, by such officer or authority subordinate to the Central Government or by the State Government or by such officer or authority subordinate to the State Government, as may be specified in the notification;

(b) where the appropriate Government is a State Government, by such officer or authority subordinate to the State Government as may be specified in the notification.

Exemption of employer from liability in certain cases.

63. Where an employer is charged with an offence under this Code, he shall be entitled upon complaint duly made by him, to have any other person whom he charges as the actual offender, brought before the court at the time appointed for hearing the charge; and if, after the commission of the offence has been proved, the employer proves to the satisfaction of the court—

(a) that he has used due diligence to enforce the execution of this

Code; and

(b) that the said other person committed the offence in question

without his knowledge, consent or connivance,This is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 262 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) that other person shall be convicted of the offence and shall be liable to the like punishment as if he were the employer and the employer shall be discharged from any liability under this Code in respect of such offence:

Provided that in seeking to prove, as aforesaid, the employer may be examined on oath, and the evidence of the employer or his witness, if any, shall be subject to cross-examination by or on behalf of the person whom the employer charges as the actual offender and by the prosecution.

Protection against atta chments of assets of employer with Government.

64. Any amount deposited with the appropriate Government by an employer to secure the due performance of a contract with that Government and any other amount due to such employer from that Government in respect of such contract shall not be liable to attachment under any decree or order of any court in respect of any debt or liability incurred by the employer other than any debt or liability incurred by the employer towards any employee employed in connection with the contract aforesaid.

Power of Central Government to give directions.

65. The Central Government may, for carrying into execution of the provisions of this Code in the State give directions to the State Government, and the State Government shall abide by such directions.

Saving.

42 of 2005.

46 of 1948.

66. Nothing contained in this Code shall be deemed to affect the provisions of the Mahatma Gandhi National Rural Employment Guarantee Act, 2005 and the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948, or of any scheme made thereunder.

67. (1) The appropriate Government may, subject to the condition of previous publication, make rules for carrying out the provisions of this Code. Power of appropriate Government to make rules.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:– (a) the manner of calculating the wages under sub-section (4) of section 6;

(b) the arduousness of work to be taken into account in addition to minimum rate of wages for certain category of workers under clause (b) of sub-section (6) of section 6;

(c) the norms under clause (c) of sub-section (6) of section 6;

(d) the cases and circumstances in which an employee employed for a period of less than the requisite number of hours shall not be entitled to receive wages for a full normal working day, under section 10;

(e) the extent and conditions, which shall apply in relation to certain classes of employees under sub-section (2) of section 13;

(f) the longer wage period for fixation of minimum rate of wages as referred to in section 14;

(g) the manner of deducting loans made from any fund constituted for the welfare of labour under sub-clause (ii) of clause (f) of sub-section (2) of section 18;

(h) the manner of recovery of excess of amount under sub-section (4) of section 18;

(i) the authority to provide approval for imposition of fine under sub- section (1) of section 19;

(j) the manner of exhibition of the acts and omissions to be specified in the notice under sub-section (2) of section 19;

(k) the procedure for the imposition of fines under sub-section (3)

of section 19;

(l) the form of the register to record all fines and all realisations

thereof under sub-section (8) of section 19;

(m) the procedure for making deductions for absence from duty

under sub-section (2) of section 20;

(n) the procedure for making deductions for damage or loss under

sub-section (2) of section 21;

(o) the form of the register to record all deductions and all realisations

thereof under sub-section (3) of section 21;

(p) conditions for recovery of advance of money given to an employee

after the employment began under clause (b) of section 23;

(q) conditions for recovery of advances of wages to an employee

not already earned under clause (c) of section 23;

(r) deductions for recovery of loans and the rate of interest payable

thereon under section 24;

(s) the manner of regulating the procedure by the Central Advisory Board and the State Advisory Board, including that of the committees and sub-committees constituted by the State Advisory Board, under sub-section (10) of section 42;

(t) the terms of office of members of the Central Advisory Board, the State Advisory Board, including that of the committees and sub- committees constituted by the State Advisory Board, under sub-section (11) of section 42;

(u) the authority and manner of depositing with such authority, various

undisbursed dues under clause (b) of sub-section (1) of section 44;

(v) the form of single application in respect of a number of employees

under sub-section (5) of section 45;

(w) the form for making an appeal to the appellate authority under

sub-section (1) of section 49;

(x) the manner of maintenance of a register by the employer under

sub-section (1) of section 50;

(y) the form and manner of issuing wage slips under sub-section (3)

of section 50;

(z) the other powers to be exercised by the Inspector-cum-Facilitator

under sub-section (5) of section 51;

(za) the manner of imposing fine under sub-section (1) of section 56;

(zb) the manner of composition of offence by a Gazetted Officer

specified under sub-section (4) of section 56;

(zc) any other matter which is required to be, or may be, prescribed

under the provisions of this Code.

(3) The Central Government may, subject to the condition of previous

publication, make rules for,—

(a) the manner of fixing floor wage under sub-section (1) of section 9;

(b) the manner of consultation with State Government under sub-

section (3) of section 9;

(c) the manner of making set on or set off for the sixth accounting

year under clause (i) of sub-section (7) of section 26;

(d) the manner of making set on or set off for the seventh accounting year under clause (ii) of sub-section (7) of section 26;

(e) the manner of calculating gross profit under clauses (a) and (b) of section 32;

(f) such further sums in respect of employer under clause (c) of section 34;

(g) the manner of utilising the excess of allocable surplus to be carried forward for being set on in the succeeding accounting year and so on up to and inclusive of the fourth accounting year under sub-section (1) of section 36;

(h) the manner of utilising the minimum amount or the deficiency to be carried forward for being set off in the succeeding accounting year and so on up to and inclusive of the fourth accounting year under sub-section (2) of section 36; and

(i) the manner of holding an enquiry under sub-section (1) of section 53.

(4) Every rule made by the Central Government under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions as aforesaid, both Houses agree in making any modification in the rule or both Houses agree that rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or amendment shall be without prejudice to the validity of anything previously done under that rule.

(5) Every rule made by the State Government under this section shall, as soon as possible after it is made, be laid before the State Legislature.

Power to remove difficulties.

68. (1) If any difficulty arises in giving effect to the provisions of this Code, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Code, as may appear to be necessary for removing the difficulty:

Provided that no such order shall be made under this section after the expiry of a period of three years from the commencement of this Code.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

Repeal and savings.

69. (1) The Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976 are hereby repealed.

4 of 1936. 11 of 1948. 21 of 1965. 25 of 1976.

(2) Notwithstanding such repeal, anything done or any action taken under the enactments so repealed including any notification, nomination, appointment, order or direction made thereunder or any amount of wages provided in any provision of such enactments for any purpose shall be deemed to have been done or taken or provided for such purpose under the corresponding provisions of this Code and shall be in force to the extent they are not contrary to the provisions of this Code till they are repealed under the corresponding provisions of this Code or by the notification to that effect by the Central Government.

10 of 1897.

(3) Without prejudice to the provisions of sub-section (2), the provisions of section 6 of the General Clauses Act, 1897 shall apply to the repeal of such enactments.

[Assented to on

8th August, 2019

Act No. 30 of 2019]

THE NATIONAL MEDICAL COMMISSION ACT, 2019

AN

ACT

to provide for a medical education system that improves access

to quality and affordable medical education, ensures availability of

adequate and high quality medical professionals in all parts of the

country; that promotes equitable and universal healthcare that

encourages community health perspective and makes services of medical

professionals accessible to all the citizens; that promotes national health

goals; that encourages medical professionals to adopt latest medical

research in their work and to contribute to research; that has an

objective periodic and transparent assessment of medical institutions

and facilitates maintenance of a medical register for India and enforces

high ethical standards in all aspects of medical services; that is flexible

to adapt to changing needs and has an effective grievance redressal

mechanism and for matters connected therewith or incidental thereto.

BE it enacted by Parliament in the Seventieth Year of the Republic

of India as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the National Medical Commission

Act, 2019.

Short title, extent and commencement.

(2) It extends to the whole of India.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

Definitions.

2. In this Act, unless the context otherwise requires,—

(a) "Autonomous Board" means any of the Autonomous Boards

constituted under section 16;

(b) "Chairperson" means the Chairperson of the National Medical

Commission appointed under section 5;

(c) "Commission" means the National Medical Commission

constituted under section 3;

(d) "Council" means the Medical Advisory Council constituted

under section 11;

(e) " Ethics and Medical Registration Board" means the Board

constituted under section 16;

(f) "health University" means a University specialised in affiliating institutions engaged in teaching medicine, medical and health sciences and includes a medical University and University of health sciences;

(g) "licence" means a licence to practice medicine granted under sub- section (1) of section 33;

(h) "Medical Assessment and Rating Board" means the Board constituted under section 16;

(i) "medical institution" means any institution within or outside India which grants degrees, diplomas or licences in medicine and include affiliated colleges and deemed to be Universities;

(j) "medicine" means modern scientific medicine in all its branches and includes surgery and obstetrics, but does not include veterinary medicine and surgery;

(k) "Member" means a Member of the Commission appointed under section 5 and includes the Chairperson thereof;

21 of 1860.

(l) "National Board of Examination" means the body registered as such under the Societies Registration Act, 1860 which grants broad- speciality and super-speciality qualifications referred to in the Schedule;

(m) "National Register" means a National Medical Register maintained by the Ethics and Medical Registration Board under section 31;

(n) "notification" means notification published in the Official Gazette and the expression "notify" shall be construed accordingly;

(o) "Post-Graduate Medical Education Board" means the Board constituted under section 16;

(p) "prescribed" means prescribed by rules made under this Act; (q) "President" means the President of an Autonomous Board appointed under section 18;

(r) "recognised medical qualification" means a medical qualification recognised under section 35 or section 36 or section 37 or section 40, as the case may be;

(s) "regulations" means the regulations made by the Commission under this Act;

(t) "Schedule" means the Schedule to this Act;

(u) "State Medical Council" means a medical council constituted under any law for the time being in force in any State or Union territory for regulating the practice and registration of practitioners of medicine in that State or Union territory;

(v) "State Register" means a register maintained under any law for the time being in force in any State or Union territory for registration of practitioners of medicine;

(w) "Under-Graduate Medical Education Board" means the Board constituted under section 16;

3 of 1956.

(x) "University" shall have the same meaning as assigned to it in clause (f) of section 2 of the University Grants Commission Act, 1956 and includes a health University.

CHAPTER II

THE NATIONAL MEDICAL COMMISSION

3. (1) The Central Government shall constitute a Commission, to be known as the National Medical Commission, to exercise the powers conferred upon, and to perform the functions assigned to it, under this Act.

Constitution of National Medical Commission.

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

(3) The head office of the Commission shall be at New Delhi.

4. (1) The Commission shall consist of the following persons to be Composition of Commission.

appointed by the Central Government, namely:—

(a) a Chairperson;

(b) ten ex officio Members; and

(c) twenty-two part-time Members.

(2) The Chairperson shall be a medical professional of outstanding ability, proven administrative capacity and integrity, possessing a postgraduate degree in any discipline of medical sciences from any University and having experience of not less than twenty years in the field of medical sciences, out of which at least ten years shall be as a leader in the area of medical education.

(3) The following persons shall be the ex officio Members of the

Commission, namely:—

(a) the President of the Under-Graduate Medical Education Board;

(b) the President of the Post-Graduate Medical Education Board;

(c) the President of the Medical Assessment and Rating Board;

(d) the President of the Ethics and Medical Registration Board;

(e) the Director General of Health Services, Directorate General of

Health Services, New Delhi;

(f) the Director General, Indian Council of Medical Research;

(g) a Director of any of the All India Institutes of Medical Sciences,

to be nominated by the Central Government;

(h) two persons from amongst the Directors of Postgraduate Institute of Medical Education and Research, Chandigarh; Jawaharlal Institute of Postgraduate Medical Education and Research, Puducherry; Tata Memorial Hospital, Mumbai; North Eastern Indira Gandhi Regional Institute of Health and Medical Sciences, Shillong; and All India Institute of Hygiene and Public Health, Kolkata; to be nominated by the Central Government; and

(i) one person to represent the Ministry of the Central Government dealing with Health and Family Welfare, not below the rank of Additional Secretary to the Government of India, to be nominated by that Ministry.

(4) The following persons shall be appointed as part-time Members of the

Commission, namely:—

(a) three Members to be appointed from amongst persons of ability, integrity and standing, who have special knowledge and professionalThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 268 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) experience in such areas including management, law, medical ethics, health research, consumer or patient rights advocacy, science and technology and economics;

(b) ten Members to be appointed on rotational basis from amongst the nominees of the States and Union territories, under clauses (c) and (d) of sub-section (2) of section 11, in the Medical Advisory Council for a term of two years in such manner as may be prescribed;

(c) nine members to be appointed from amongst the nominees of the States and Union territories, under clause (e) of sub-section (2) of section 11, in the Medical Advisory Council for a term of two years in such manner as may be prescribed.

Explanation.—For the purposes of this section and section 17, the term "leader" means the Head of a Department or the Head of an organisation.

Search Committee for a ppointment of Chairperson and Members.

5. (1) The Central Government shall appoint the Chairperson, part-time Members referred to in clause (a) of sub-section (4) of section 4 and the Secretary referred to in section 8 on the recommendation of a Search Committee consisting of—

(a) the Cabinet Secretary—Chairperson;

(b) three experts, possessing outstanding qualifications and experience of not less than twenty-five years in the field of medical education, public health education and health research, to be nominated by the Central Government—Members;

(c) one expert, from amongst the part-time Members referred to in clause (c) of sub-section (4) of section 4, to be nominated by the Central Government in such manner as may be prescribed—Member;

(d) one person, possessing outstanding qualifications and experience of not less than twenty-five years in the field of management or law or economics or science and technology, to be nominated by the Central Government—Member; and

(e) the Secretary to the Government of India in charge of the Ministry of Health and Family Welfare, to be the Convenor—Member.

(2) The Central Government shall, within one month from the date of occurrence of any vacancy, including by reason of death, resignation or removal of the Chairperson or a Member, or within three months before the end of tenure of the Chairperson or Member, make a reference to the Search Committee for filling up of the vacancy.

(3) The Search Committee shall recommend a panel of at least three names for every vacancy referred to it.

(4) The Search Committee shall, before recommending any person for appointment as the Chairperson or a Member of the Commission, satisfy itself that such person does not have any financial or other interest which is likely to affect prejudicially his functions as such Chairperson or Member.

(5) No appointment of the Chairperson or Member shall be invalid merely by reason of any vacancy or absence of a Member in the Search Committee.

(6) Subject to the provisions of sub-sections (2) to (5), the Search Committee may regulate its own procedure.

Term of office and conditions of service of Chairperson and Members.

6. (1) The Chairperson and the part-time Members, other than the part- time Members appointed under clauses (b) and (c) of sub-section (4) of section 4, shall hold office for a term not exceeding four years and shall not be eligible for any extension or re-appointment:

Provided that such person shall cease to hold office after attaining the age

of seventy years.

(2) The term of office of an ex officio Member shall continue as long

as he holds the office by virtue of which he is such Member.

(3) Where a Member, other than an ex officio Member, is absent from three consecutive ordinary meetings of the Commission and the cause of such absence is not attributable to any valid reason in the opinion of the Commission, such Member shall be deemed to have vacated the seat.

(4) The salaries and allowances payable to, and other terms and conditions of service of, the Chairperson and Member, other than an ex officio Member, shall be such as may be prescribed.

(5) The Chairperson or a Member may,—

(a) relinquish his office by giving in writing to the Central Government

a notice of not less than three months; or

(b) be removed from his office in accordance with the provisions of

section 7:

Provided that such person may be relieved from duties earlier than three months or be allowed to continue beyond three months until a successor is appointed, if the Central Government so decides.

(6) The Chairperson and every member of the Commission shall make declaration of his assets and his liabilities at the time of entering upon his office and at the time of demitting his office and also declare his professional and commercial engagement or involvement in such form and manner as may be prescribed, and such declaration shall be published on the website of the Commission.

(7) The Chairperson or a Member, ceasing to hold office as such, shall not accept, for a period of two years from the date of demitting such office, any employment, in any capacity, including as a consultant or an expert, in any private medical institution, whose matter has been dealt with by such Chairperson or Member, directly or indirectly:

Provided that nothing herein shall be construed as preventing such person from accepting an employment in a body or institution, including medical institution, controlled or maintained by the Central Government or a State Government:

Provided further that nothing herein shall prevent the Central Government from permitting the Chairperson or a Member to accept any employment in any capacity, including as a consultant or expert in any private medical institution whose matter has been dealt with by such Chairperson or Member.

7. (1) The Central Government may, by order, remove from office the

Chairperson or any other Member, who—

Removal of Chairperson and Member of Commission.

(a) has been adjudged an insolvent; or

(b) has been convicted of an offence which, in the opinion of the

Central Government, involves moral turpitude; orThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 270 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) (c) has become physically or mentally incapable of acting as a Member;

or

(d) is of unsound mind and stands so declared by a competent court;

or

(e) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or

(f) has so abused his position as to render his continuance in office prejudicial to public interest.

(2) No Member shall be removed under clauses (e) and (f) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.

8. (1) There shall be a Secretariat for the Commission to be headed by a Secretary, to be appointed by the Central Government in accordance with the provisions of section 5.

Appointment of Secretary, experts, professionals, officers and other employees of Commission.

(2) The Secretary of the Commission shall be a person of proven administrative capacity and integrity, possessing such qualifications and experience as may be prescribed.

(3) The Secretary shall be appointed by the Central Government for a term of four years and shall not be eligible for any extension or re-appointment.

(4) The Secretary shall discharge such functions of the Commission as are assigned to him by the Commission and as may be specified by regulations made under this Act.

(5) The Commission may, for the efficient discharge of its functions under this Act, appoint such officers and other employees, as it considers necessary, against the posts created by the Central Government.

(6) The salaries and allowances payable to, and other terms and conditions of service of, the Secretary, officers and other employees of the Commission shall be such as may be prescribed.

(7) The Commission may engage, in accordance with the procedure specified by regulations, such number of experts and professionals of integrity and outstanding ability, who have special knowledge of, and experience in such fields, including medical education, public health, management, health economics, quality assurance, patient advocacy, health research, science and technology, administration, finance, accounts and law, as it deems necessary, to assist the Commission in the discharge of its functions under this Act.

9. (1) The Commission shall meet at least once every quarter at such time Meetings, etc., of Commission. and place as may be appointed by the Chairperson.

(2) The Chairperson shall preside at the meeting of the Commission, and if, for any reason, the Chairperson is unable to attend a meeting of the Commission, any other Member, being the President of an Autonomous Board, nominated by the Chairperson, shall preside at the meeting.

(3) Unless the procedure to be followed at the meetings of the Commission is otherwise provided by regulations, one-half of the total number of Members of the Commission including the Chairperson shall constitute the quorum and all the acts of the Commission shall be decided by a majority of the members, present and voting and in the event of equality of votes, the Chairperson, or in hisThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 271 absence, the President of the Autonomous Board nominated under sub-section (2), shall have the casting vote.

(4) The general superintendence, direction and control of the administration

of the Commission shall vest in the Chairperson.

(5) No act done by the Commission shall be questioned on the ground of the existence of a vacancy in, or a defect in the constituti on of, the Commission.

(6) A person who is aggrieved by any decision of the Commission except the decision rendered under sub-section (4) of section 30 may prefer an appeal to the Central Government against such decision within thirty days of the communication of such decision.

10. (1) The Commission shall perform the following functions, namely:— Powers and functions of Commission.

(a) lay down policies for maintaining a high quality and high standards

in medical education and make necessary regulations in this behalf;

(b) lay down policies for regulating medical institutions, medical researches and medical professionals and make necessary regulations in this behalf;

(c) assess the requirements in healthcare, including human resources for health and healthcare infrastructure and develop a road map for meeting such requirements;

(d) promote, co-ordinate and frame guidelines and lay down policies by making necessary regulations for the proper functioning of the Commission, the Autonomous Boards and the State Medical Councils;

(e) ensure co-ordination among the Autonomous Boards;

(f) take such measures, as may be necessary, to ensure compliance by the State Medical Councils of the guidelines framed and regulations made under this Act for their effective functioning under this Act;

(g) exercise appellate jurisdiction with respect to the decisions of the

Autonomous Boards;

(h) lay down policies and codes to ensure observance of professional ethics in medical profession and to promote ethical conduct during the provision of care by medical practitioners;

(i) frame guidelines for determination of fees and all other charges in respect of fifty per cent. of seats in private medical institutions and deemed to be universities which are governed under the provisions of this Act;

(j) exercise such other powers and perform such other functions as

may be prescribed.

(2) All orders and decisions of the Commission shall be authenticated by

the signature of the Secretary.

(3) The Commission may delegate such of its powers of administrative

and financial matters, as it deems fit, to the Secretary.

(4) The Commission may constitute sub-committees and delegate such of its powers to such sub-committees as may be necessary to enable them to accomplish specific tasks.

CHAPTER III

THE MEDICAL ADVISORY COUNCIL

11. (1) The Central Government shall constitute an advisory body to be known as the Medical Advisory Council.

Constitution and composition of Medical Advisory Council.

(2) The Council shall consist of a Chairperson and the following members, namely:—

(a) the Chairperson of the Commission shall be the ex officio Chairperson of the Council;

(b) every member of the Commission shall be the ex officio members of the Council;

(c) one member to represent each State, who is the Vice-Chancellor of a health University in that State, to be nominated by that State Government;

(d) one member to represent each Union territory, who is the Vice- Chancellor of a health University in that Union territory, to be nominated by the Ministry of Home Affairs in the Government of India;

(e) one member to represent each State and each Union territory from amongst elected members of the State Medical Council, to be nominated by that State Medical Council;

(f) the Chairman, University Grants Commission;

(g) the Director, National Assessment and Accreditation Council;

(h) four members to be nominated by the Central Government from amongst persons holding the post of Director in the Indian Institutes of Technology, Indian Institutes of Management and the Indian Institute of Science:

Provided that if there is no health University in any State or Union territory, the Vice-Chancellor of a University within that State or Union territory having the largest number of medical colleges affiliated to it shall be nominated by the State Government or by the Ministry of Home Affairs in the Government of India:

Provided further that if there is no University in any Union territory, the Ministry of Home Affairs shall nominate a member who possesses such medical qualification and experience as may be prescribed.

Functions of Medical Advisory Council.

12. (1) The Council shall be the primary platform through which the States and Union territories may put forth their views and concerns before the Commission and help in shaping the overall agenda, policy and action relating to medical education and training.

(2) The Council shall advise the Commission on measures to determine and maintain, and to co-ordinate maintenance of, the minimum standards in all matters relating to medical education, training and research.

(3) The Council shall advise the Commission on measures to enhance equitable access to medical education.

13. (1) The Council shall meet at least twice a year at such time and place as may be decided by the Chairperson.

Meetings of Medical Advisory Council.

(2) The Chairperson shall preside at the meeting of the Council and if for any reason the Chairperson is unable to attend a meeting of the Council, such other member as nominated by the Chairperson shall preside over the meeting.

(3) Unless the procedure is otherwise provided by regulations, fifty per cent. of the members of the Council including the Chairperson shall form the quorum and all acts of the Council shall be decided by a majority of the members present and voting.

CHAPTER IV

NATIONAL EXAMINATION

National Eligibility-cum- Entrance Test.

14. (1) There shall be a uniform National Eligibility-cum-Entrance Test for admission to the undergraduate and postgraduate super-speciality medical education in all medical institutions which are governed by the provisions of this Act:

Provided that the uniform National Eligibility-cum-Entrance Test for admission to the undergraduate medical education shall also be applicable to all medical institutions governed under any other law for the time being in force.

(2) The Commission shall conduct the National Eligibility-cum-Entrance Test in English and in such other languages, through such designated authority and in such manner, as may be specified by regulations.

(3) The Commission shall specify by regulations the manner of conducting common counselling by the designated authority for admission to undergraduate and postgraduate super-speciality seats in all the medical institutions which are governed by the provisions of this Act:

Provided that the designated authority of the Central Government shall conduct the common counselling for all India seats and the designated authority of the State Government shall conduct the common counselling for the seats at the State level.

National Exit Test.

15. (1) A common final year undergraduate medical examination, to be known as the National Exit Test shall be held for granting licence to practice medicine as medical practitioners and for enrolment in the State Register or the National Register, as the case may be.

(2) The Commission shall conduct the National Exit Test through such

designated authority and in such manner as may be specified by regulations.

(3) The National Exit Test shall become operational on such date, within three years from the date of commencement of this Act, as may be appointed by the Central Government, by notification.

(4) Any person with a foreign medical qualification shall have to qualify National Exit Test for the purpose of obtaining licence to practice medicine as medical practitioner and for enrolment in the State Register or the National Register, as the case may be, in such manner as may be specified by regulations.

(5) The National Exit Test shall be the basis for admission to the postgraduate broad-speciality medical education in medical institutions which are governed under the provisions of this Act or under any other law for the time being in force and shall be done in such manner as may be specified by regulations.

(6) The Commission shall specify by regulations the manner of conducting common counselling by the designated authority for admission to the postgraduate broad-speciality seats in the medical institutions referred to in sub-section (5):

Provided that the designated authority of the Central Government shall conduct the common counselling for All India seats and the designated authority of the State Government shall conduct the common counselling for the seats at the State level.

CHAPTER V

AUTONOMOUS BOARDS

Constitution of Autonomous Boards.

16. (1) The Central Government shall, by notification, constitute the following Autonomous Boards, under the overall supervision of the Commission, to perform the functions assigned to such Boards under this Act, namely:—

(a) the Under-Graduate Medical Education Board;

(b) the Post-Graduate Medical Education Board;

(c) the Medical Assessment and Rating Board; and

(d) the Ethics and Medical Registration Board.

(2) Each Board referred to in sub-section (1) shall be an autonomous body which shall carry out its functions under this Act subject to the regulations made by the Commission.

17. (1) Each Autonomous Board shall consist of a President and two whole-time Members and two part-time Members.

Composition of Autonomous Boards.

(2) The President of each Autonomous Board, three Members (including one part-time Member) of the Under-Graduate Medical Education Board and the Post-Graduate Medical Education Board, and two Members (including one part- time Member) each of the Medical Assessment and Rating Board and the Ethics and Medical Registration Board shall be persons of outstanding ability, proven administrative capacity and integrity, possessing a postgraduate degree in any discipline of medical sciences from any University and having experience of not less than fifteen years in such field, out of which at least seven years shall be as a leader in the area of medical education, public health, community medicine or health research.

(3) The third Member of the Medical Assessment and Rating Board shall be a person of outstanding ability and integrity, possessing a postgraduate degree in any of the disciplines of management, quality assurance, law or science and technology from any University, having not less than fifteen years' experience in such field, out of which at least seven years shall be as a leader.

(4) The third Member of the Ethics and Medical Registration Board shall be a person of outstanding ability who has demonstrated public record of work on medical ethics or a person of outstanding ability possessing a postgraduate degree in any of the disciplines of quality assurance, public health, law or patient advocacy from any University and having not less than fifteen years' experience in such field, out of which at least seven years shall be as a leader.

(5) The fourth Member of each Autonomous Boards, being a part-time Member, shall be chosen from amongst the elected Members of the State Medical Council in such manner as may be prescribed.

Search Committee for a ppointment of President and Members.

18. The Central Government shall appoint the President and Members of the Autonomous Boards, except Members referred to in sub-section (5) of section 17, on the recommendations made by the Search Committee constituted under section 5 in accordance with the procedure specified in that section.

19. (1) The President and Members (other than part-time Members) of each Autonomous Board shall hold the office for a term not exceeding four years and shall not be eligible for any extension or re-appointment:

Term of office and conditions of service of President and Members.

Provided that part-time Members of each Autonomous Board shall hold

the office for a term of two years:

Provided further that a Member shall cease to hold office after attaining

the age of seventy years.

(2) The salaries and allowances payable to, and other terms and conditions of service of the President and Members (other than part-time Members) of an Autonomous Board shall be such as may be prescribed:

Provided that part-time Members of each Autonomous Board shall be

entitled for such allowances as may be prescribed.

(3) The provisions of sub-sections (3), (5), (6), (7) and (8) of section 6 relating to other terms and conditions of service of, and section 7 relating to removal from the office of, the Chairperson and Members of the Commission shall also be applicable to the President and Members of the Autonomous Boards.

Advisory committees of experts.

20. (1) Each Autonomous Board, except the Ethics and Medical Registration Board, shall be assisted by such advisory committees of experts as may be constituted by the Commission for the efficient discharge of the functions of such Boards under this Act.

(2) The Ethics and Medical Registration Board shall be assisted by such ethics committees of experts as may be constituted by the Commission for the efficient discharge of the functions of that Board under this Act.

Staff of Autonomous Boards.

21. The experts, professionals, officers and other employees appointed under section 8 shall be made available to the Autonomous Boards in such number, and in such manner, as may be specified by regulations by the Commission.

22. (1) Every Autonomous Board shall meet at least once a month at

such time and place as it may appoint.

Meetings, etc., of Autonomous Boards.

(2) All decisions of the Autonomous Boards shall be made by majority

of votes of the President and Members.

(3) Subject to the provision of section 28, a person who is aggrieved by any decision of an Autonomous Board may prefer an appeal to the Commission against such decision within sixty days of the communication of such decision.

23. (1) The President of each Autonomous Board shall have such administrative and financial powers as may be delegated to it by the Commission to enable such Board to function efficiently.

Powers of Autonomous Boards and delegation of powers.

(2) The President of an Autonomous Board may further delegate any of

his powers to a Member or an officer of that Board.

24. (1) The Under-Graduate Medical Education Board shall perform the following functions, namely:—

Powers and functions of Under-Graduate Medical Education Board.

(a) determine standards of medical education at undergraduate level and oversee all aspects relating thereto;

(b) develop competency based dynamic curriculum at undergraduate level in accordance with the regulations made under this Act;

(c) develop competency based dynamic curriculum for addressing the needs of primary health services, community medicine and family medicine to ensure healthcare in such areas, in accordance with the provisions of the regulations made under this Act;

(d) frame guidelines for setting up of medical institutions for imparting undergraduate courses, having regard to the needs of the country and the global norms, in accordance with the provisions of the regulations made under this Act; (e) determine the minimum requirements and standards for conducting courses and examinations for undergraduates in medical institutions, having regard to the needs of creativity at local levels, including designing of some courses by individual institutions, in accordance with the provisions of the regulations made under this Act;

(f) determine standards and norms for infrastructure, faculty and quality of education in medical institutions providing undergraduate medical education in accordance with the provisions of the regulations made under this Act;

(g) facilitate development and training of faculty members teaching undergraduate courses;

(h) facilitate research and the international student and faculty exchange programmes relating to undergraduate medical education;

(i) specify norms for compulsory annual disclosures, electronically or otherwise, by medical institutions, in respect of their functions that has a bearing on the interest of all stakeholders including students, faculty, the Commission and the Central Government;

(j) grant recognition to a medical qualification at the undergraduate level.

(2) The Under-Graduate Medical Education Board may, in the discharge of its duties, make such recommendations to, and seek such directions from, the Commission, as it deems necessary.

25. (1) The Post-Graduate Medical Education Board shall perform the following functions, namely:—

Powers and functions of Post-Graduate Medical Education Board.

(a) determine the standards of medical education at the postgraduate level and super-speciality level in accordance with the regulations made under this Act and oversee all aspects relating thereto;

(b) develop competency based dynamic curriculum at postgraduate level and super-speciality level in accordance with the regulations made under this Act, with a view to develop appropriate skill, knowledge, attitude, values and ethics among postgraduates and super-specialists to provide healthcare, impart medical education and conduct medical research;

(c) frame guidelines for setting up of medical institutions for imparting postgraduate and super-speciality courses, having regard to the needs of the country and global norms, in accordance with the regulations made under this Act;

(d) determine the minimum requirements and standards for conducting postgraduate and super-speciality courses and examinations in medical institution, in accordance with the regulations made under this Act;

(e) determine standards and norms for infrastructure, faculty and quality of education in medical institutions conducting postgraduate and super-speciality medical education, in accordance with the regulations made under this Act;

(f) facilitate development and training of the faculty members teaching

postgraduate and super-speciality courses;

(g) facilitate research and the international student and faculty exchange programmes relating to postgraduate and super-speciality medical education;

(h) specify norms for compulsory annual disclosure, electronically or otherwise, by medical institutions in respect of their functions that has a bearing on the interest of all stakeholders including students, faculty, the Commission and the Central Government;

(i) grant recognition to the medical qualifications at the postgraduate

level and super-speciality level;

(j) promote and facilitate postgraduate courses in family medicine.

(2) The Post-Graduate Medical Education Board may, in the discharge of its functions, make such recommendations to, and seek such directions from, the Commission, as it deems necessary.

26. (1) The Medical Assessment and Rating Board shall perform the

following functions, namely:—

Powers and functions of Medical Assessment and Rating Board.

(a) determine the procedure for assessing and rating the medical institutions for their compliance with the standards laid down by the Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be, in accordance with the regulations made under this Act;

(b) grant permission for establishment of a new medical institution, or to start any postgraduate course or to increase number of seats, in accordance with the provisions of section 28;

(c) carry out inspections of medical institutions for assessing and rating such institutions in accordance with the regulations made under this Act:

Provided that the Medical Assessment and Rating Board may, if it deems necessary, hire and authorise any other third party agency or persons for carrying out inspections of medical institutions for assessing and rating such institutions:

Provided further that where inspection of medical institutions is carried out by such third party agency or persons authorised by the Medical Assessment and Rating Board, it shall be obligatory on such institutions to provide access to such agency or person;

(d) conduct, or where it deems necessary, empanel independent rating agencies to conduct, assess and rate all medical institutions, within such period of their opening, and every year thereafter, at such time, and in such manner, as may be specified by the regulations;

(e) make available on its website or in public domain the assessment and ratings of medical institutions at regular intervals in accordance with the regulations made under this Act;

(f) take such measures, including issuing warning, imposition of monetary penalty, reducing intake or stoppage of admissions and recommending to the Commission for withdrawal of recognition, against a medical institution for failure to maintain the minimum essential standards specified by the Under-Graduate Medical Education Board or the Post- Graduate Medical Education Board, as the case may be, in accordance with the regulations made under this Act.

(2) The Medical Assessment and Rating Board may, in the discharge of its functions, make such recommendations to, and seek such directions from, the Commission, as it deems necessary.

27. (1) The Ethics and Medical Registration Board shall perform the following functions, namely:—

Powers and functions of Ethics and Medical Registration Board.

(a) maintain National Registers of all licensed medical practitioners in accordance with the provisions of section 31;

(b) regulate professional conduct and promote medical ethics in accordance with the regulations made under this Act:

Provided that the Ethics and Medical Registration Board shall ensure compliance of the code of professional and ethical conduct through the State Medical Council in a case where such State Medical Council has been conferred power to take disciplinary actions in respect of professional or ethical misconduct by medical practitioners under respective State Acts;

(c) develop mechanisms to have continuous interaction with State Medical Councils to effectively promote and regulate the conduct of medical practitioners and professionals;

(d) exercise appellate jurisdiction with respect to the actions taken by a State Medical Council under section 30.

(2) The Ethics and Medical Registration Board may, in the discharge of its duties, make such recommendations to, and seek such directions from, the Commission, as it deems necessary.

28. (1) No person shall establish a new medical college or start any postgraduate course or increase number of seats without obtaining prior permission of the Medical Assessment and Rating Board.

Permission for establishment of new medical college.

(2) For the purposes of obtaining permission under sub-section (1), a person may submit a scheme to the Medical Assessment and Rating Board in such form, containing such particulars, accompanied by such fee, and in such manner, as may be specified by the regulations.

(3) The Medical Assessment and Rating Board shall, having due regard to the criteria specified in section 29, consider the scheme received under sub- section (2) and either approve or disapprove such scheme within a period of six months from the date of such receipt:

Provided that before disapproving such scheme, an opportunity to rectify the defects, if any, shall be given to the person concerned.

(4) Where a scheme is approved under sub-section (3), such approval shall be the permission under sub-section (1) to establish new medical college.

(5) Where a scheme is disapproved under sub-section (3), or where no decision is taken within six months of submitting a scheme under sub-section (1), the person concerned may prefer an appeal to the Commission for approval of the scheme within fifteen days of such disapproval or, as the case may be, lapse of six months, in such manner as may be specified by the regulations.

(6) The Commission shall decide the appeal received under sub-section (5) within a period of forty-five days from the date of receipt of the appeal and in case the Commission approves the scheme, such approval shall be the permission under sub-section (1) to establish a new medical college and in case the Commission disapproves the scheme, or fails to give its decision within the specified period, the person concerned may prefer a second appeal to the Central Government within thirty days of communication of such disapproval or, as the case may be, lapse of specified period.

(7) The Medical Assessment and Rating Board may conduct evaluation and assessment of any medical institution at any time, either directly or through any other expert having integrity and experience of medical profession and without any prior notice and assess and evaluate the performance, standards and benchmarks of such medical institution.

Explanation.—For the purposes of this section, the term "person" includes a University, trust or any other association of persons or body of individuals, but does not include the Central Government.

29. While approving or disapproving a scheme under section 28, the Medical Assessment and Rating Board, or the Commission, as the case may be, shall take into consideration the following criteria, namely:—

Criteria for approving or disapproving scheme.

(a) adequacy of financial resources;

(b) whether adequate academic faculty and other necessary facilities have been provided to ensure proper functioning of medical college or would be provided within the time-limit specified in the scheme;

(c) whether adequate hospital facilities have been provided or would

be provided within the time-limit specified in the scheme;

(d) such other factors as may be prescribed:

Provided that, subject to the previous approval of the Central Government, the criteria may be relaxed for the medical colleges which are set up in such areas as may be specified by the regulations.

State Medical Councils.

30. (1) The State Government shall, within three years of the commencement of this Act, take necessary steps to establish a State Medical Council if no such Council exists in that State.

(2) Where a State Act confers power upon the State Medical Council to take disciplinary actions in respect of any professional or ethical misconduct by a registered medical practitioner or professional, the State Medical Council shall act in accordance with the regulations made, and the guidelines framed, under this Act:

Provided that till such time as a State Medical Council is established in a State, the Ethics and Medical Registration Board shall receive the complaints and grievances relating to any professional or ethical misconduct against aThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 280 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) registered medical practitioner or professional in that State in accordance with such procedure as may be specified by the regulations:

Provided further that the Ethics and Medical Registration Board or, as the case may be, the State Medical Council shall give an opportunity of hearing to the medical practitioner or professional concerned before taking any action, including imposition of any monetary penalty against such person.

(3) A medical practitioner or professional who is aggrieved by any action taken by a State Medical Council under sub-section (2) may prefer an appeal to the Ethics and Medical Registration Board against such action, and the decision, if any, of the Ethics and Medical Registration Board thereupon shall be binding on the State Medical Council, unless a second appeal is preferred under sub- section (4).

(4) A medical practitioner or professional who is aggrieved by the decision of the Ethics and Medical Registration Board may prefer an appeal to the Commission within sixty days of communication of such decision.

Explanation.—For the purposes of this Act,—

(a) "State" includes Union Territory and the expressions "State Government" and "State Medical Council", in relation to a Union Territory, shall respectively mean the "Central Government" and "Union Territory Medical Council";

(b) the expression "professional or ethical misconduct" includes any act of commission or omission as may be specified by the regulations.

National Register and State Register.

31. (1) The Ethics and Medical Registration Board shall maintain a National Register containing the name, address, all recognised qualifications possessed by a licensed medical practitioner and such other particulars as may be specified by the regulations.

(2) The National Register shall be maintained in such form, including electronic form, in such manner, as may be specified by the regulations.

(3) The manner in which a name or qualification may be added to, or removed from, the National Register and the grounds for removal thereof, shall be such as may be specified by the regulations.

(4) The National Register shall be a public document within the meaning

1 of 1872.

of section 74 of the Indian Evidence Act, 1872.

(5) The National Register shall be made available to the public by placing it on the website of the Ethics and Medical Registration Board.

(6) Every State Medical Council shall maintain and regularly update the State Register in the specified electronic format and supply a physical copy of the same to the Ethics and Medical Registration Board within three months of the commencement of this Act.

(7) The Ethics and Medical Registration Board shall ensure electronic synchronisation of the National Register and the State Register in such a manner that any change in one register is automatically reflected in the other register.

(8) The Ethics and Medical Registration Board shall maintain a separate National Register in such form, containing such particulars, including the name, address and all recognised qualifications possessed by a Community Health Provider referred to in section 32 in such manner as may be specified by the regulations.

Commu nity Health Provider.

32. (1) The Commission may grant limited licence to practice medicine at mid-level as Community Health Provider to such person connected with modern scientific medical profession who qualify such criteria as may be specified by the regulations:

Provided that the number of limited licence to be granted under this sub- section shall not exceed one-third of the total number of licenced medical practitioners registered under sub-section (1) of section 31.

(2) The Community Health Provider who is granted limited licences under sub-section (1), may practice medicine to such extent, in such circumstances and for such period, as may be specified by the regulations.

(3) The Community Health Provider may prescribe specified medicine independently, only in primary and preventive healthcare, but in cases other than primary and preventive healthcare, he may prescribe medicine only under the supervision of medical practitioners registered under sub-section (1) of section 32.

33. (1) Any person who qualifies the National Exit Test held under section 15 shall be granted a licence to practice medicine and shall have his name and qualifications enrolled in the National Register or a State Register, as the case may be:

102 of 1956.

Rights of persons to have licence to practice and to be enrolled in National Register or State Register and their obligations thereto.

Provided that a person who has been registered in the Indian Medical Register maintained under the Indian Medical Council Act, 1956 prior to the coming into force of this Act and before the National Exit Test becomes operational under sub-section (3) of section 15, shall be deemed to have been registered under this Act and be enrolled in the National Register maintained under this Act.

(2) No person who has obtained medical qualification from a medical institution established in any country outside India and is recognised as a medical practitioner in that country, shall, after the commencement of this Act and the National Exit Test becomes operational under sub-section (3) of section 15, be enrolled in the National Register unless he qualifies the National Exit Test.

(3) When a person whose name is entered in the State Register or the National Register, as the case may be, obtains any title, diploma or other qualification for proficiency in sciences or public health or medicine which is a recognised medical qualification under section 35 or section 36, as the case may be, he shall be entitled to have such title, diploma or qualification entered against his name in the State Register or the National Register, as the case may be, in such manner as may be specified by the regulations.

Bar to practice.

34. (1) No person other than a person who is enrolled in the State

Register or the National Register, as the case may be, shall—

(a) be allowed to practice medicine as a qualified medical practitioner;

(b) hold office as a physician or surgeon or any other office, by whatever name called, which is meant to be held by a physician or surgeon;

(c) be entitled to sign or authenticate a medical or fitness certificate or any other certificate required by any law to be signed or authenticated by a duly qualified medical practitioner;

1 of 1872.

(d) be entitled to give evidence at any inquest or in any court of law as an expert under section 45 of the Indian Evidence Act, 1872 on any matter relating to medicine:

Provided that the Commission shall submit a list of such medical professionals to the Central Government in such manner as may be prescribed:

Provided further that a foreign citizen who is enrolled in his country as a medical practitioner in accordance with the law regulating the registration of medical practitioners in that country may be permitted temporary registration in India for such period and in such manner as may be specified by the regulations.

(2) Any person who contravenes any of the provisions of this section shall be punished with imprisonment for a term which may extend to one year, or with fine which may extend to five lakh rupees or with both.

CHAPTER VI

RECOGNITION OF MEDICAL QUALIFICATIONS

35. (1) The medical qualification granted by any University or medical institution in India shall be listed and maintained by the Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be, in such manner as may be specified by the regulations and such medical qualification shall be a recognised medical qualification for the purposes of this Act.

Recognition of medical qualifications granted by Universities or medical institutions in India.

(2) Any University or medical institution in India which grants an undergraduate or postgraduate or super-speciality medical qualification not included in the list maintained by the Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be, may apply to that Board for granting recognition to such qualification.

(3) The Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be, shall examine the application for grant of recognition to a medical qualification within a period of six months in such manner as may be specified by the regulations.

(4) Where the Under-Graduate Medical Education Board or the Post- Graduate Medical Education Board, as the case may be, decides to grant recognition to a medical qualification, it shall include such medical qualification in the list maintained by it and also specify the date of effect of such recognition.

(5) Where the Under-Graduate Medical Education Board or the Post- Graduate Medical Education Board, as the case may be, decides not to grant recognition to a medical qualification, the University or the medical institution concerned may prefer an appeal to the Commission for grant of recognition within sixty days of the communication of such decision, in such manner as may be specified by the regulations.

(6) The Commission shall examine the appeal received under sub-section (5) within a period of two months and if it decides that recognition may be granted to such medical qualification, it may direct the Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be, to include such medical qualification in the list maintained by that Board, in such manner as may be specified by the regulations.

(7) Where the Commission decides not to grant recognition to the medical qualification, or fails to take a decision within the specified period, the UniversityThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 283 or the medical institution concerned may prefer a second appeal to the Central Government within thirty days of the communication of such decision or lapse of specified period, as the case may be.

102 of 1956.

(8) All medical qualifications which have been recognised before the date of commencement of this Act and are included in the First Schedule and Part I of the Third Schedule to the Indian Medical Council Act, 1956, shall also be recognised medical qualifications for the purposes of this Act, and shall be listed and maintained by the Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be, in such manner as may be specified by the regulations.

Recognition of medical qualifications granted by medical institutions outside India.

36. (1) Where an authority in any country outside India, which by the law of that country is entrusted with the recognition of medical qualifications in that country, makes an application to the Commission for granting recognition to such medical qualification in India, the Commission may, subject to such verification as it may deem necessary, either grant or refuse to grant recognition to that medical qualification:

Provided that the Commission shall give a reasonable opportunity of being

heard to such authority before refusing to grant such recognition.

(2) A medical qualification which is granted recognition by the Commission under sub-section (1) shall be a recognised medical qualification for the purposes of this Act, and such qualification shall be listed and maintained by the Commission in such manner as may be specified by the regulations.

(3) Where the Commission refuses to grant recognition to the medical qualification under sub-section (1), the authority concerned may prefer an appeal to the Central Government against such decision within thirty days of communication thereof.

102 of 1956.

(4) All medical qualifications which have been recognised before the date of commencement of this Act and are included in the Second Schedule and Part II of the Third Schedule to the Indian Medical Council Act, 1956, shall also be recognised medical qualifications for the purposes of this Act, and shall be listed and maintained by the Commission in such manner as may be specified by the regulations.

37. (1) The medical qualifications granted by any statutory or other body in India which are covered by the categories listed in the Schedule shall be recognised medical qualifications for the purposes of this Act.

Recognition of medical qualifications granted by statutory or other body in India.

(2) The Diplomate of National Board in broad-speciality qualifications and superspeciality qualifications when granted in a medical institution with attached hospital or in a hospital with the strength of five hundred or more beds, by the National Board of Examinations, shall be equivalent in all respects to the corresponding postgraduate qualification and the super-speciality qualification granted under this Act, but in all other cases, senior residency in a medical college for an additional period of one year shall be required for such qualification to be equivalent for the purposes of teaching also.

(3) The Central Government may, on the recommendation of the Commission, and having regard to the objects of this Act, by notification, add to, or, as the case may be, omit from, the Schedule any categories of medical qualifications granted by a statutory or other body in India and on such addition, or as the case may be, omission, the medical qualifications granted by such statutory or other body in India shall be, or shall cease to be, recognised medical qualifications for the purposes of this Act.

38. (1) Where, upon receiving a report from the Medical Assessment and Rating Board under section 26, or otherwise, if the Commission is of the opinion that—

Withdrawal of recognition granted to medical qualification granted by medical institutions in India.

(a) the courses of study and examination to be undergone in, or the proficiency required from candidates at any examination held by, a University or medical institution do not conform to the standards specified by the Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be; or

(b) the standards and norms for infrastructure, faculty and quality of education in medical institution as determined by the Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be, are not adhered to by any University or medical institution, and such University or medical institution has failed to take necessary corrective action to maintain specified minimum standards, the Commission may initiate action in accordance with the provisions of sub- section (2):

Provided that the Commission shall, before taking any action for suo motu withdrawal of recognition granted to the medical qualification awarded by a University or medical institution, impose penalty in accordance with the provisions of clause (f) of sub-section (1) of section 26.

(2) The Commission shall, after making such further inquiry as it deems fit, and after holding consultations with the concerned State Government and the authority of the concerned University or medical institution, comes to the conclusion that the recognition granted to a medical qualification ought to be withdrawn, it may, by order, withdraw recognition granted to such medical qualification and direct the Under-Graduate Medical Education Board or the Post-Graduate Medical Education Board, as the case may be, to amend the entries against the University or medical institution concerned in the list maintained by that Board to the effect that the recognition granted to such medical qualification is withdrawn with effect from the date specified in that order.

Derecognition of medical qualifications granted by medical institutions outside India.

39. Where, after verification with the authority in any country outside India, the Commission is of the opinion that a recognised medical qualification which is included in the list maintained by it is to be derecognised, it may, by order, derecognise such medical qualification and remove it from the list maintained by the Commission with effect from the date of such order.

Special provision in certain cases for recognition of medical qualifications.

40. Where the Commission deems it necessary, it may, by an order published in the Official Gazette, direct that any medical qualification granted by a medical institution in a country outside India, after such date as may be specified in that notification, shall be a recognised medical qualification for the purposes of this Act:

Provided that medical practice by a person possessing such qualification shall be permitted only if such person qualifies National Exit Test.

CHAPTER VII

GRANTS, AUDIT AND ACCOUNTS

Grants by Central Government.

41. The Central Government may, after due appropriation made by Parliament by law in this behalf, make to the Commission grants of such sums of money as the Central Government may think fit.

National Medical Commission Fund.

42. (1) There shall be constituted a fund to be called "the National Medical Commission Fund" which shall form part of the public account of India and there shall be credited thereto—

(a) all Government grants, fees, penalties and charges received by

the Commission and the Autonomous Boards;

(b) all sums received by the Commission from such other sources as

may be decided by it.

(2) The Fund shall be applied for making payment towards—

(a) the salaries and allowances payable to the Chairperson and Members of the Commission, the Presidents and Members of the Autonomous Boards and the administrative expenses including the salaries and allowances payable to the officers and other employees of the Commission and Autonomous Boards;

(b) the expenses incurred in carrying out the provisions of this Act, including in connection with the discharge of the functions of the Commission and the Autonomous Boards.

Audit and accounts.

43. (1) The Commission shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed, in consultation with the Comptroller and Auditor-General of India.

(2) The accounts of the Commission shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the Commission to the Comptroller and Auditor-General of India.

(3) The Comptroller and Auditor-General of India and any other persons appointed by him in connection with the audit of the accounts of the Commission shall have the same rights and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of Government accounts and in particular, shall have the right to demand the production of, and complete access to, records, books, accounts, connected vouchers and other documents and papers and to inspect the office of the Commission.

(4) The accounts of the Commission as certified by the Comptroller and Auditor-General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually by the Commission to the Central Government which shall cause the same to be laid, as soon as may be after it is received, before each House of Parliament.

Furnishing of returns and reports to Central Government. 44. (1) The Commission shall furnish to the Central Government, at such time, in such form and in such manner, as may be prescribed or as the Central Government may direct, such reports and statements, containing such particulars in regard to any matter under the jurisdiction of the Commission, as the Central Government may, from time to time, require.

(2) The Commission shall prepare, once every year, in such form and at such time as may be prescribed, an annual report, giving a summary of its activities during the previous year and copies of the report shall be forwarded to the Central Government.

(3) A copy of the report received under sub-section (2) shall be laid by the Central Government, as soon as may be after it is received, before each House of Parliament.

CHAPTER VIII

MISCELLANEOUS

Power of Central Government to give directions to Commission and Autonomous Boards.

45. (1) Without prejudice to the foregoing provisions of this Act, the Commission and the Autonomous Boards shall, in exercise of their powers and discharge of their functions under this Act, be bound by such directions on questions of policy as the Central Government may give in writing to them from time to time :

Provided that the Commission and the Autonomous Boards shall, as far as practicable, be given an opportunity to express their views before any direction is given under this sub-section.

(2) The decision of the Central Government whether a question is one of policy or not shall be final.

46. The Central Government may give such directions, as it may deem necessary, to a State Government for carrying out all or any of the provisions of this Act and the State Government shall comply with such directions.

Power of Central Government to give directions to State Governments.

47. (1) The Commission shall furnish such reports, copies of its minutes, abstracts of its accounts, and other information to the Central Government as that Government may require.

Information to be furnished by Commission and publication thereof.

(2) The Central Government may publish, in such manner as it may think fit, the reports, minutes, abstracts of accounts and other information furnished to it under sub-section (1).

Obligation of universities and medical institutions.

48. Every University and medical institution governed under this Act shall maintain a website at all times and display on its website all such information as may be required by the Commission or an Autonomous Board, as the case may be.

Completion of courses of studies in medical institutions.

49. (1) Notwithstanding anything contained in this Act, any student who was studying for a degree, diploma or certificate in any medical institution immediately before the commencement of this Act shall continue to so study and complete his course for such degree, diploma or certificate, and such institution shall continue to provide instructions and examination for such student in accordance with the syllabus and studies as existed before such commencement, and such student shall be deemed to have completed his course of study under this Act and shall be awarded degree, diploma or certificate under this Act. (2) Notwithstanding anything contained in this Act, where recognition granted to a medical institution has lapsed, whether by efflux of time or by its voluntary surrender or for any other reason whatsoever, such medical institution shall continue to maintain and provide the minimum standards required to be provided under this Act till such time as all candidates who are admitted in that medical institution complete their study.

50. (1) There shall be a joint sitting of the Commission, the Central Council of Homoeopathy and the Central Council of Indian Medicine at least once a year, at such time and place as they mutually appoint, to enhance the interface between Homoeopathy, Indian Systems of Medicine and modern systems of medicine.

Joint sittings of Commission, Central Councils of Homoeopathy and Indian medicine to enhance interface between their respective systems of medicine.

(2) The agenda for the joint sitting may be prepared with mutual agreement between the Chairpersons of the Commission, the Central Council of Homoeopathy and the Central Council of Indian Medicine or be prepared separately by each of them.

(3) The joint sitting referred to in sub-section (1) may, by an affirmative vote of all members present and voting, decide on approving specific educational modules or programmes that may be introduced in the undergraduate course and the postgraduate course across medical systems and promote medical pluralism.

51. Every State Government may, for the purposes of addressing or promoting primary healthcare in rural area, take necessary measures to enhance the capacity of the healthcare professionals.

State Government to promote primary healthcare in rural areas.

45 of 1860.

52. The Chairperson, Members, officers and other employees of the Commission and the President, Members and officers and other employees of the Autonomous Boards shall be deemed, when acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants within the meaning of section 21 of the Indian Penal Code.

Chairperson, Members, officers of Commission and of Autonomous Boards to be public servants.

Protection of action taken in good faith.

53. No suit, prosecution or other legal proceeding shall lie against the Government, the Commission or any Autonomous Board or a State Medical Council or any Committee thereof, or any officer or other employee of the Government or of the Commission acting under this Act for anything which is in good faith done or intended to be done under this Act or the rules or regulations made thereunder.

Cognizance of offences.

54. No court shall take cognizance of an offence punishable under this Act except upon a complaint in writing made in this behalf by an officer authorised by the Commission or the Ethics and Medical Registration Board or a State Medical Council, as the case may be.

55. (1) If, at any time, the Central Government is of opinion that—

(a) the Commission is unable to discharge the functions and duties

Power of Central Government to supersede Commission.

imposed on it by or under the provisions of this Act; or

(b) the Commission has persistently made default in complying with any direction issued by the Central Government under this Act or in the discharge of the functions and duties imposed on it by or under the provisions of this Act,

the Central Government may, by notification, supersede the Commission for such period, not exceeding six months, as may be specified in the notification:

Provided that before issuing a notification under this sub-section, the Central Government shall give a reasonable opportunity to the Commission to show cause as to why it should not be superseded and shall consider the explanations and objections, if any, of the Commission.

(2) Upon the publication of a notification under sub-section (1) superseding

the Commission,—

(a) all the Members shall, as from the date of supersession, vacate

their offices as such;

(b) all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Commission, shall, until the Commission is re-constituted under sub-section (3), be exercised and discharged by such person or persons as the Central Government may direct;

(c) all property owned or controlled by the Commission shall, until the Commission is re-constituted under sub-section (3), vest in the Central Government.

(3) On the expiration of the period of supersession specified in the notification issued under sub-section (1), the Central Government may,—

(a) extend the period of supersession for such further term not exceeding six months, as it may consider necessary; or

(b) re-constitute the Commission by fresh appointment and in such case the Members who vacated their offices under clause (a) of sub- section (2) shall not be deemed disqualified for appointment:

Provided that the Central Government may, at any time before the expiration of the period of supersession, whether as originally specified under sub-section (1) or as extended under this sub-section, take action under clause (b) of this sub-section.

(4) The Central Government shall cause a notification issued under sub- section (1) and a full report of any action taken under this section and the circumstances leading to such action to be laid before both Houses of Parliament at the earliest opportunity.

56. (1) The Central Government may, by notification, make rules to carry Power to make rules.

out the purposes of this Act.

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

(a) the manner of appointing six Members of the Commission on rotational basis from amongst the nominees of the States and Union territories in the Medical Advisory Council under clause (b) of sub-section (4) of section 4;

(b) the manner of appointing five members of the Commission under clause (c) of sub-section (4) of section 4;

(c) the manner of nominating one expert by the Central Government under clause (c) of sub-section (1) of section 5;

(d) the salary and allowances payable to, and other terms and conditions of service of the Chairperson and Members under sub-section (4) of section 6;

(e) the form and the manner of making declaration under sub-section (6) of section 6;

(f) the qualifications and experience to be possessed by the Secretary of the Commission under sub-section (2) of section 8;

(g) the salaries and allowances payable to, and other terms and conditions of service of the Secretary, officers and other employees of the Commission under sub-section (6) of section 8;

(h) the other powers and functions of the Commission under clause (j) of sub-section (1) of section 10;

(i) the medical qualification and experience to be possessed by a member under the second proviso to section 11;

(j) the manner of choosing part-time Members under sub-section (5) of section 17;

(k) the salary and allowances payable to, and other terms and conditions of service of the President and Members of an Autonomous Board under sub-section (2), and the allowances payable to part-time Members under the proviso thereunder, of section 19;

(l) the other factors under clause (d) of section 29;

(m) the manner of submitting a list of medical professionals under the

second proviso to sub-section (1) of section 34;

(n) the form for preparing annual statement of accounts under sub-

section (1) of section 43;

(o) the time within which, and the form and the manner in which, the reports and statements shall be furnished by the Commission and the particulars with regard to any matter as may be required by the Central Government under sub-section (1) of section 44;

(p) the form and the time for preparing annual report under sub-

section (2) of section 44;

(q) any other matter in respect of which provision is to be made by

rules.

Power to make regulations.

57. (1) The Commission may, after previous publication, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for all or any of the following matters, namely:—

(a) the functions to be discharged by the Secretary of the Commission

under sub-section (4) of section 8;

(b) the procedure in accordance with which experts and professionals may be engaged and the number of such experts and professionals under sub-section (7) of section 8;

(c) the procedure to be followed at the meetings of Commission, including the quorum at its meetings under sub-section (3) of section 9;

(d) the quality and standards to be maintained in medical education

under clause (a) of sub-section (1) of section 10;

(e) the manner of regulating medical institutions, medical researches and medical professionals under clause (b) of sub-section (1) of section 10;

(f) the manner of functioning of the Commission, the Autonomous Boards and the State Medical Councils under clause (d) of sub-section (1) of section 10;

(g) the procedure to be followed at the meetings of the Medical Advisory Council, including the quorum at its meetings under sub-section (3) of section 13;

(h) the other languages in which and the manner in which the National Eligibility-cum-Entrance Test shall be conducted under sub-section (2) of section 14;

(i) the manner of conducting common counselling by the designated authority for admission to the undergraduate and postgraduate super- speciality medical education under sub-section (3) of section 14;

(j) the designated authority, and the manner for conducting the National Exit Test under sub-section (2) of section 15;

(k) the manner in which a person with foreign medical qualification shall qualify National Exit Test under sub-section (4) of section 15;

(l) the manner in which admission to the postgraduate broad-speciality medical education shall be made on the basis of National Exit Test under sub-section (5) of section 15;

(m) the manner of conducting common counselling by the designated authority for admission to the postgraduate broad-speciality medical education under sub-section (6) of section 15;

(n) the number of, and the manner in which, the experts, professionals, officers and other employees shall be made available by the Commission to the Autonomous Boards under section 21;

(o) the curriculum at undergraduate level under clause (b) of sub- section (1) of section 24;

(p) the curriculum for primary medicine, community medicine and family medicine under clause (c) of sub-section (1) of section 24;

(q) the manner of imparting undergraduate courses by medical institutions under clause (d) of sub-section (1) of section 24;

(r) the minimum requirements and standards for conducting courses and examinations for undergraduates in medical institutions under clause (e) of sub-section (1) of section 24;

(s) the standards and norms for infrastructure, faculty and quality of education at undergraduate level in medical institutions under clause (f) of sub-section (1) of section 24;

(t) the standards of medical education at the postgraduate level and superspeciality level under clause (a) of sub-section (1) of section 25;

(u) the curriculum at postgraduate level and super-speciality level under clause (b) of sub-section (1) of section 25;

(v) the manner of imparting postgraduate and super-speciality courses by medical institutions under clause (c) of sub-section (1) of section 25;

(w) the minimum requirements and standards for conducting postgraduate and super-speciality courses and examinations in medical institutions under clause (d) of sub-section (1) of section 25;

(x) the standards and norms for infrastructure, faculty and quality of education in medical institutions conducting postgraduate and super-speciality medical education under clause (e) of sub-section (1) of section 25;

(y) the procedure for assessing and rating the medical institutions under clause (a) of sub-section (1) of section 26;

(z) the manner of carrying out inspections of medical institutions for assessing and rating such institutions under clause (c) of sub-section (1) of section 26;

(za) the manner of conducting, and the manner of empanelling independent rating agencies to conduct, assessment and rating of medical institutions under clause (d) of sub-section (1) of section 26;

(zb) the manner of making available on website or in public domain the assessment and ratings of medical institutions under clause (e) of sub-section (1) of section 26;

(zc) the measures to be taken against a medical institution for its failure to maintain the minimum essential standards under clause (f) of sub-section (1) of section 26;

(zd) the manner of regulating professional conduct and promoting

medical ethics under clause (b) of sub-section (1) of section 27;

(ze) the form of scheme, the particulars thereof, the fee to be accompanied and the manner of submitting scheme for establishing a new medical college or for starting any postgraduate course or for increasing number of seats under sub-section (2) of section 28;

(zf) the manner of making an appeal to the Commission for approval

of the scheme under sub-section (5) of section 28;

(zg) the areas in respect of which criteria may be relaxed under

the proviso to section 29;

(zh) the manner of taking disciplinary action by a State Medical Council for professional or ethical misconduct of registered medical practitioner or professional and the procedure for receiving complaints and grievances by Ethics and Medical Registration Board, under sub- section (2) of section 30;

(zi) the act of commission or omission which amounts to professional or ethical misconduct under clause (b) of the Explanation to section 30;

(zj) other particulars to be contained in a National Register under

sub-section (1) of section 31;

(zk) the form, including the electronic form and the manner of

maintaining the National Register under sub-section (2) of section 31;

(zl) the manner in which any name or qualification may be added to, or removed from, the National Register and the grounds for removal thereof, under sub-section (3) of section 31;

(zm) the form and manner in which the National Register for registering Community Health Provider is to be maintained under sub- section (8) of section 31;

(zn) the criteria for granting limited licence to practice medicine

under sub-section (1) of section 32;

(zo) the extent, the circumstances and the period under sub-section

(2) of section 32;

(zp) the manner of listing and maintaining medical qualifications granted by a University or medical institution in India under sub-section (1) of section 35;

(zq) the manner of examining the application for grant of recognition

under sub-section (3) of section 35;

(zr) the manner of preferring an appeal to the Commission for

grant of recognition under sub-section (5) of section 35;

(zs) the manner of including a medical qualification in the list maintained by the Board under sub-section (6) of section 35;

(zt) the manner of listing and maintaining medical qualifications which have been granted recognition before the date of commencement of this Act under sub-section (8) of section 35.

Rules and regulations to be laid before Parliament.

58. Every rule and every regulation made, and every notification issued, under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or regulation or notification; both Houses agree that the rule or regulation or notification should not be made, the rule or regulation or notification shall thereafter have effect only 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 the validity of anything previously done under that rule or regulation or notification.

Power to remove difficulties.

59. (1) If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act, as may appear to it to be necessary, for removing the difficulty:

Provided that no order shall be made under this section after the expiry of a period of two years from the commencement of this Act.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

Repeal and saving.

60. (1) With effect from such date as the Central Government may appoint in this behalf, the Indian Medical Council Act, 1956 shall stand repealed and the Medical Council of India constituted under sub-section (1) of section 3 of the said Act shall stand dissolved.

(2) Notwithstanding the repeal of the Act referred to in sub-section (1), it shall not affect,—

(a) the previous operation of the Act so repealed or anything duly done or suffered thereunder; or

(b) any right, privilege, obligation or liability acquired, accrued or incurred under the Act so repealed; or

(c) any penalty incurred in respect of any contravention under the Act so repealed; or

(d) any proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty as aforesaid, and any such proceeding or remedy may be instituted, continued or enforced, and any such penalty may be imposed as if that Act had not been repealed.

(3) On the dissolution of the Medical Council of India, the person appointed as the Chairman of the Medical Council of India and every other person appointed as the Member and any officer and other employee of that Council and holding office as such immediately before such dissolution shall vacate their respective offices and such Chairman and other Members shall be entitled to claim compensation not exceeding three months' pay and allowances for the premature termination of term of their office or of any contract of service:

Provided that any officer or other employee who has been, immediately before the dissolution of the Medical Council of India appointed on deputation basis to the Medical Council of India, shall, on such dissolution, stand reverted to his parent cadre, Ministry or Department, as the case may be:

Provided further that any officer or other employee who has been, immediately before the dissolution of the Medical Council of India, employed on regular or contractual basis by the Medical Council of India, shall, on and from such dissolution, cease to be the officer or employee of the Medical Council of India and his employment in the Medical Council of India stand terminated with immediate effect:

102 of 1956.

Provided also that such officer or employee of the Medical Council of India shall be entitled to such compensation for the premature termination of his employment, which shall not be less than three months' pay and allowances, as may be prescribed. (4) Notwithstanding the repeal of the aforesaid enactment, any order made, any licence to practice issued, any registration made, any permission to start new medical college or to start higher course of studies or for increase in the admission capacity granted, any recognition of medical qualifications granted, under the Indian Medical Council Act, 1956, which are in force as on the date of commencement of this Act, shall continue to be in force till the date of their expiry for all purposes, as if they had been issued or granted under the provisions of this Act or the rules or regulations made thereunder.

Tra nsitory provisions.

61. (1) The Commission shall be the successor in interest to the Medical Council of India including its subsidiaries or owned trusts and all the assets and liabilities of the Medical Council of India shall be deemed to have been transferred to the Commission.

102 of 1956.

(2) Notwithstanding the repeal of the Indian Medical Council Act, 1956, the educational standards, requirements and other provisions of the Indian Medical Council Act, 1956 and the rules and regulations made thereunder shall continue to be in force and operate till new standards or requirements are specified under this Act or the rules and regulations made thereunder:

Provided that anything done or any action taken as regards the educational standards and requirements under the enactment under repeal and the rules and regulations made thereunder shall be deemed to have been done or taken under the corresponding provisions of this Act and shall continue in force accordingly unless and until superseded by anything done or by any action taken under this Act.

THE SCHEDULE

[See section 37]

LIST OF CATEGORIES OF MEDICAL QUALIFICATIONS GRANTED BY STATUTORY BODY OR OTHER BODY IN INDIA

Sl. No. Categories of medical qualifications

1. All medical qualifications granted by the Jawaharlal Institute of Postgraduate Medical Education and Research, Puducherry.

2. All medical qualifications granted by All India Institutes of Medical Sciences.

3. All medical qualifications granted by the Postgraduate Institute of Medical Education and Research, Chandigarh.

4. All medical qualifications granted by the National Institute of Mental Health and Neuro-Sciences, Bangalore.

5. All medical qualifications granted by the National Board of Examination.

[Assented to on

8th August, 2019

Act No. 31 of 2019]

THE REPEALING AND AMENDING ACT, 2019

AN

ACT

to repeal certain enactments and to amend certain other enactments.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

Short title.

1. This Act may be called the Repealing and Amending Act, 2019.

2. The enactments specified in the First Schedule are hereby repealed. Repeal of certain enactments.

3. The enactments specified in the Second Schedule are hereby amended

to the extent and in the manner specified in the fourth column thereof.

Amendment of certain enactments.

Savings.

4. The repeal by this Act of any enactment shall not affect any other enactment in which the repealed enactment has been applied, incorporated or referred to;

and this Act shall not affect the validity, invalidity, effect or consequences of anything already done or suffered, or any right, title, obligation or liability already acquired, accrued or incurred, or any remedy or proceeding in respect thereof, or any release or discharge of or from any debt, penalty, obligation, liability, claim or demand, or any indemnity already granted, or the proof of any past act or thing;

nor shall this Act affect any principle or rule of law, or established jurisdiction, form or course of pleading, practice or procedure, or existing usage, custom, privilege, restriction, exemption, office or appointment, notwithstanding that the same respectively may have been in any manner affirmed or recognised or derived by, in or from any enactment hereby repealed;

nor shall the repeal by this Act of any enactment revive or restore any jurisdiction, office, custom, liability, right, title, privilege, restriction, exemption, usage, practice, procedure or other matter or thing not now existing or in force.

THE FIRST SCHEDULE

(See section 2)

REPEALS

Year Act No. Short Title

1 2

3

1850 XII The Public Accountants' Defaults Act, 1850.

1881 XI The Municipal Taxation Act, 1881.

1892 X The Government Management of Private Estates Act, 1892.

1956 69 The Terminal Tax on Railway Passengers Act, 1956.

1958 56 The Himachal Pradesh Legislative Assembly (Constitution

and Proceedings) Validation Act, 1958.

1960 22 The Cotton Transport (Amendment) Act, 1960.

1963 1 The Hindi Sahitya Sammelan (Amendment) Act, 1963.

1963 35 The Dramatic Performances (Delhi Repeal) Act, 1963.

1964 10 The Public Employment (Requirement as to Residence)

Amendment Act, 1964.

1968 49 The Delhi and Ajmer Rent Control (Nasirabad Cantonment

Repeal) Act, 1968.

1973 56 The Alcock Ashdown Company Limited (Acquisition of

Undertakings) Act, 1973.

1976 55 The Iron Ore Mines, Manganese Ore Mines and Chrome

Ore Mines Labour Welfare Cess Act, 1976.

1976 61 The Iron Ore Mines, Manganese Ore Mines and Chrome

Ore Mines Labour Welfare Fund Act, 1976.

1976 62 The Beedi Workers Welfare Fund Act, 1976.

1980 68 The Tea (Amendment) Act, 1980.

1981 62 The Aligarh Muslim University (Amendment) Act, 1981.

1982 63 The Road Transport Corporations (Amendment) Act, 1982.

1983 41 The Transformers and Switchgear Limited (Acquisition

and Transfer of Undertakings) Act, 1983.

1988 22 The Tamil Nadu Agricultural Service Co-operative Societies

(Appointment of Special Officers) Amendment Act, 1988.

1999 3 The High Denomination Bank Notes (Demonetisation)

Amendment Act, 1998.

2001 39 The Motor Vehicles (Amendment) Act, 2001.

2001 48 The Registration and Other Related Laws (Amendment)

Act, 2001.

2002 16 The Institutes of Technology (Amendment) Act, 2002.

2002 43 The Delhi University (Amendment) Act, 2002.

2007 3 The Dalmia Dadri Cement Limited (Acquisition and

Transfer of Undertakings) Amendment Act, 2006.

2007 28 The Central Road Fund (Amendment) Act, 2007.

2009 21 The Prevention of Money-laundering (Amendment) Act,

2009.

1 2

3

2009 22 The Central Industrial Security Force (Amendment) Act,

2009.

2009 38 The Central Universities (Amendment) Act, 2009.

2010 3 The Civil Defence (Amendment) Act, 2009.

2011 6 The Repatriation of Prisoners (Amendment) Act, 2011.

2011 14 The Customs (Amendment and Validation) Act, 2011.

2012 28 The National Institutes of Technology (Amendment) Act,

2012.

2012 34 The Institutes of Technology (Amendment) Act, 2012.

2014 8 The Governors (Emoluments, Allowances and Privileges)

Amendment Act, 2014.

2014 9 The National Institute of Technology, Science Education

and Research (Amendment) Act, 2014.

2014 19 The Andhra Pradesh Reorganisation (Amendment) Act, 2014.

2014 20 The Telecom Regulatory Authority of India (Amendment)

Act, 2014.

2014 31 The Merchant Shipping (Amendment) Act, 2014.

2014 32 The Merchant Shipping (Second Amendment) Act, 2014.

2014 39 The National Capital Territory of Delhi Laws (Special

Provisions) Second (Amendment) Act, 2014.

2015 2 The Public Premises (Eviction of Unauthorised Occupants)

Amendment Act, 2015.

2015 3 The Motor Vehicles (Amendment) Act, 2015.

2015 5 The Insurance Laws (Amendment) Act, 2015.

2015 10 The Mines and Minerals (Development and Regulation)

Amendment Act, 2015.

2015 12 The Andhra Pradesh Reorganisation (Amendment) Act, 2015.

2015 14 The Regional Rural Banks (Amendment) Act, 2015.

2015 16 The Warehousing Corporations (Amendment) Act, 2015.

2015 21 The Companies (Amendment) Act, 2015.

2016 10 The Election Laws (Amendment) Act, 2016.

2016 13 The High Court and the Supreme Court Judges (Salaries

and Conditions of Service) Amendment Act, 2016.

2016 25 The Mines and Minerals (Development and Regulation)

Amendment Act, 2016.

2016 42 The National Institute of Technology, Science Education and Research (Amendment) Act, 2016.

2016 45 The Central Agricultural University (Amendment) Act, 2016.

2016 48 The Taxation Laws (Second Amendment) Act, 2016.

2017 19 The National Institute of Technology, Science Education

and Research (Amendment) Act, 2017.

2017 21 The Collection of Statistics (Amendment) Act, 2017.

2017 25 The Indian Institutes of Information Technology

(Amendment) Act, 2017.

THE SECOND SCHEDULE

(See section 3)

AMENDMENTS

Year Act No. Short title Amendments

1 2 3 4

1961 43 The Income-tax Act, In section 54GA, in the Explanation 1961 to sub-section (1), in clause (a), after the word, brackets, letters "clause (za)", the words and figure "of section 2" shall be inserted.

2017 33 The Indian Institutes (i) in section 3, in clause (f), for the of Management words '"Director", means', the words Act, 2017 '"Director" means' shall be substituted;

(ii) in section 36, in sub-section (1), for the word "Ordinance", the word "Ordinances" shall be substituted.

[Assented to on

9th August, 2019

Act No. 32 of 2019]

THE MOTOR VEHICLES (AMENDMENT) ACT, 2019

AN

ACT

further to amend the Motor Vehicles Act, 1988.

BE it enacted by Parliament in the Seventieth Year of the Republic of India

as follows:—

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Motor Vehicles (Amendment) Act, Short title and commencement.

2019.

(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act and any reference in any such provision to the commencement of this Act shall be construed as a reference to the coming into force of that provision.

59 of 1988.

2. In the Motor Vehicles Act, 1988 (hereinafter referred to as the principal Amendment of section 2.

Act), in section 2,—

(i) for clause (1), the following clauses shall be substituted, namely:—

'(1) "adapted vehicle" means a motor vehicle either specially designed and constructed, or to which alterations have been made under sub-section (2) of section 52, for the use of a person suffering from any physical defect or disability, and used solely by or for such person;

(1A) "aggregator" means a digital intermediary or market place for a passenger to connect with a driver for the purpose of transportation;

(1B) "area", in relation to any provision of this Act, means such area as the State Government may, having regard to the requirements of that provision, specify by notification in the Official Gazette;';

(ii) after clause (4), the following clause shall be inserted, namely:—

'(4A) "community service" means an unpaid work which a person is required to perform as a punishment for an offence committed under this Act;';

(iii) after clause (9), the following clause shall be inserted, namely:—

'(9A) "driver refresher training course" means the course referred

to in sub-section (2A) of section 19;';

(iv) after clause (12), the following clause shall be inserted, namely:—

'(12A) "golden hour" means the time period lasting one hour following a traumatic injury during which there is highest likelihood of preventing death by providing prompt medical care;';

(v) clause (18) shall be omitted;

(vi) in clause (24), for the words "invalid carriage", the words "adapted vehicle" shall be substituted;

(vii) in clause (26), for the words "invalid carriage", the words "adapted vehicle" shall be substituted;

(viii) after clause (38), the following clause shall be inserted, namely:—

'(38A) "scheme" means a scheme framed under this Act;';

(ix) after clause (42), the following clause shall be inserted, namely:—

'(42A) "testing agency" means any entity designated as a testing agency under section 110B;';

(x) in clause (49), after the word "rests", the words "or moves" shall be inserted.

3. After section 2A of the principal Act, the following section shall be inserted, namely:—

Insertion of new section 2B.

Promotion of innova tion.

"2B. Notwithstanding anything contained in this Act and subject to such conditions as may be prescribed by the Central Government, in order to promote innovation, research and development in the fields of vehicular engineering, mechanically propelled vehicles and transportation in general, the Central Government may exempt certain types of mechanically propelled vehicles from the application of the provisions of this Act.".

4. In section 8 of the principal Act,—

Amendment of section 8.

(i) in sub-section (1), for the words "the licensing authority having jurisdiction in the area", the words "any of the licensing authority in the State" shall be substituted;

(ii) in sub-section (2), for the words "and with such fee", the words "with such fee and submit in such manner, including electronic means" shall be substituted;

(iii) in sub-section (3),—

(a) after the word "application", the words "to drive a transport vehicle made" shall be inserted;

(b) the proviso shall be omitted;

(iv) in sub-section (4), in the proviso, for the words "invalid carriage", the words "adapted vehicle" shall be substituted;

(v) in sub-section (5), for the words "passes to the satisfaction of the licensing authority such test", the words "satisfies such conditions" shall be substituted;

(vi) in sub-section (6), after the proviso, the following provisos shall be inserted, namely:—

"Provided further that a licencing authority may issue a learner's licence in electronic form and such manner as may be prescribed by the Central Government.:

Provided also that the licensing authority may, before issuing the license, verify the identity of the applicant in such manner as may be prescribed by the Central Government.".

5. In section 9 of the principal Act,—

Amendment of section 9.

(i) in sub-section (1), for the words "the licensing authority having jurisdiction in the area", the words "any licensing authority in the State" shall be substituted;

(ii) in sub-section (3), for the second proviso, the following proviso

shall be substituted, namely:—

"Provided further that a driving licence for driving an adapted vehicle may be issued to the applicant, if the licensing authority is satisfied that he is fit to drive such motor vehicle.";

(iii) in sub-section (4), the words "such minimum educational qualification as may be prescribed by the Central Government and" shall be omitted;

(iv) in sub-section (5), in the proviso, after the words "last such test", the words and figures "and such applicant shall be required to complete a remedial driver training course from any school or establishment under section 12" shall be inserted.

Amendment of section 10.

6. In section 10 of the principal Act, in sub-section (2), in clause (c), for the words "invalid carriage", the words "adapted vehicle" shall be substituted.

7. In section 11 of the principal Act,—

Amendment of section 11.

(i) in sub-section (1), for the words "the licensing authority having jurisdiction in the area", the words "any licensing authority in the State" shall be substituted;

(ii) in sub-section (2), the following proviso shall be inserted, namely:—

"Provided that the licensing authority may, before issuing the license verify the identity of the applicant in such manner as may be prescribed by the Central Government.".

8. In section 12 of the principal Act, after sub-section (4), the following Amendment of section 12.

sub-sections shall be inserted, namely:—

"(5) Notwithstanding anything contained in any other provision, where any school or establishment has been accredited by a body notified by the Central Government under any other law for the time being in force, any person who has successfully completed a training module at such school or establishment covering a particular type of motor vehicle shall be eligible to obtain a driving licence for such type of motor vehicle.

(6) The curriculum of the training module referred to in sub-section (5) and the remedial driver training course referred to in sub-section (5) of section 9 shall be such as may be prescribed by the Central Government and that Government may make rules for the regulation of such schools or establishments.".

9. In section 14 of the principal Act, in sub-section (2),—

Amendment of section 14.

(i) in clause (a),—

(A) for the words "three years", the words "five years" shall

be substituted;

(B) in the proviso, for the portion beginning with the words "one year" and ending with the word "and" the words "three years and renewal thereof shall be subject to such conditions as the Central Government may prescribe; and", shall be substituted;

(ii) for clause (b), the following clause shall be substituted, namely:—

"(b) in the case of any other licence, subject to such conditions as the Central Government may prescribe, if the person obtaining the licence, either originally or on renewal thereof,—

(i) has not attained the age of thirty years on the date of issue or, renewal thereof, be effective until the date on which such person attains the age of forty years; or

(ii) has attained the age of thirty years but has not attained the age of fifty years on the date of issue or, renewal thereof, be effective for a period of ten years from the date of such issue or renewal; or

(iii) has attained the age of fifty years but has not attained the age of fifty-five years on the date of issue or, renewal thereof, be effective until the date on which such person attains the age of sixty years; or

(iv) has attained the age of fifty-five years on the date of issue or as the case may be, renewal thereof, be effective for a period of five years from the date of such issue or renewal.";

(iii) the proviso shall be omitted.

10. In section 15 of the principal Act,—

Amendment of section 15.

(i) in sub-section (1), in the first proviso, for the words "more than thirty days", the words "either one year prior to date of its expiry or within one year" shall be substituted;

(ii) in sub-section (3), for the words "thirty days", the words "one year" shall be substituted; and

(iii) in sub-section (4),—

(a) for the words "thirty days", the words "one year" shall be substituted; and

(b) in the second proviso for the words "five years after the driving license has ceased to be effective, the licensing authority may", the words "one year after the driving licence has ceased to be effective, the licensing authority shall" shall be substituted.

11. In section 19 of the principal Act,—

Amendment of section 19.

(i) after sub-section (1), the following sub-section shall be inserted, namely:—

"(1A) Where a licence has been forwarded to the licensing authority under sub-section (4) of section 206, the licensing authority, if satisfied after giving the holder of the driving licence an opportunity of being heard, may either discharge the holder of a driving licence or, it may for detailed reasons recorded in writing, make an order disqualifying such person from holding or obtaining any licence to drive all or any class or description of vehicles specified in the licence—

(a) for a first offence, for a period of three months;

(b) for a second or subsequent offence, with revocation of the driving licence of such person:

Provided that where a driving licence is revoked under this section, the name of the holder of such driving licence may be placed in the public domain in such manner as may be prescribed by the Central Government.";

(ii) in sub-section (2),––

(a) after the word, brackets and figure "sub-section (1)", the words, brackets, figure and letter "or sub-section (1A)" shall be inserted;

(b) for the proviso, the following proviso shall be substituted,

namely:—

"Provided that the driving licence shall be returned to the holder at the end of the period of disqualification only if he successfully completes the driver refresher training course.";

(iii) after sub-section (2), the following sub-sections shall be inserted,

namely:—

"(2A) The licence holder whose licence has been suspended shall undergo the driver refresher training course from a school or establishment licenced and regulated under section 12 or such other agency, as may be notified by the Central Government.

(2B) The nature, syllabus and duration of the driver refresher training course shall be such as may be prescribed by the Central Government.";

(iv) in sub-section (3), after the word, brackets and figure "sub- section (1)", the words, brackets, figure and letter "or sub-section (1A)" shall be inserted.

12. After section 25 of the principal Act, the following section shall be

inserted, namely:—

Insertion of new section 25 A. "25A. (1) The Central Government shall maintain a National Register

of Driving Licences in such form and manner as may be prescribed.

National Register of Driving Licences.

(2) All State Registers of Driving Licences shall be subsumed under the National Register of Driving Licences by a date to be notified by the Central

Government.

(3) No driving licence issued, or renewed, under this Act shall be valid unless it has been issued a unique driving licence number under the National

Register of Driving Licences.

(4) All State Governments and licensing authorities under this Act shall transmit all information including contained data in the State Register of Driving

Licences in such form and manner as may be prescribed by the Central

Government.

(5) The State Governments shall be entitled to access the National Register and update their records in such manner as may be prescribed by the

Central Government.".

13. For section 26 of the principal Act, the following section shall be substituted, namely:—

Substitution of new section for section 26.

Maintenance of State Registers of Driving Licences.

"26. Each State Government shall maintain, in such form as may be prescribed by the Central Government, a register to be known as the State Register of Driving Licences, in respect of driving licences issued and renewed by the licensing authorities of the State Government, containing particulars, including––

(a) names and addresses of holders of driving licences;

(b) licence numbers;

(c) dates of issue or renewal of licences;

(d) dates of expiry of licences;

(e) classes and types of vehicles authorised to be driven; and

(f) such other particulars as the Central Government may prescribe.".

14. In section 27 of the principal Act,—

Amendment of section 27.

(i) after clause (d), the following clauses shall be inserted, namely:—

"(da) the form and manner in which a licensing authority may issue a learner's licence under sub-section (6) of section 8;

(db) the manner in which a licensing authority may verify the identity of the applicant under the third proviso to sub-section (6) of section 8;";

(ii) after clause (j), the following clauses shall be inserted, namely:—

"(ja) the curriculum of training modules and the regulation of schools and establishments under sub-section (6) of section 12;

(jb) the conditions for the renewal of licence to drive transport vehicles carrying goods of dangerous or hazardous nature and other motor vehicles under clause (a) and clause (b) of sub-section (2) of section 14;

(jc) the manner in which a licensing authority may verify the identity of the applicant under the third proviso to sub-section (2) of section 11;";

(iii) after clause (n), the following clauses shall be inserted, namely:—

"(na) the manner of placing in the public domain of the name of the licence holder as referred to in sub-section (1A) of section 19;

(nb) providing for the nature, syllabus and duration of the driver refresher training course as referred to in sub-section (2B) of section 19;";

(iv) after clause (o), the following clause shall be inserted, namely:—

"(oa) all or any of the matters referred to in section 25A;";

(v) in clause (p), the words, brackets and figure "sub-section (1) of" shall be omitted.

15. In section 28 of the principal Act, in sub-section (2), clause (j) shall Amendment of section 28. be omitted.

Amendment of section 40.

16. In section 40 of the principal Act, for the words "a registering authority", the words "any registering authority in the State" shall be substituted.

17. In section 41 of the principal Act,––

Amendment of section 41.

(i) in sub-section (1), after the proviso, the following proviso shall be

inserted, namely :—

"Provided further that in the case of a new motor vehicle, the application for registration in the State shall be made by the dealer of such motor vehicle, if the new motor vehicle is being registered in the same State in which the dealer is situated.";

(ii) in sub-section (3),––

(a) for the words "to the owner of a motor vehicle registered by it a certificate of registration", the words "a certificate of registration in the name of the owner" shall be substituted;

(iii) in sub-section (6), the following proviso shall be inserted,

namely:—

"Provided that in case of a new motor vehicle, the application for the registration of which is made under the second proviso to sub- section (1), such motor vehicle shall not be delivered to the owner until such registration mark is displayed on the motor vehicle in such form and manner as may prescribed by the Central Government.";

(iv) in sub-section (7),—

(a) the words "other than a transport vehicle" shall be omitted;

and

(b) after the words "date of issue of such certificate", the words "or for such period as may be prescribed by the Central Government" shall be inserted;

(v) in sub-section (8), the words "other than a transport vehicle,"

shall be omitted;

(vi) in sub-section (10),—

(a) for the words "for a period of five years", the words "for such period, as may be prescribed by the Central Government" shall be substituted;

(b) the following proviso shall be inserted, namely:—

"Provided that the Central Government may prescribe different period of renewal for different types of motor vehicles.";

(vii) sub-sections (11), (12) and (13) shall be omitted.

18. For section 43 of the principal Act, the following section shall be

substituted, namely:—

Substitution of new section for section 43.

Temporary Registration.

"43. Notwithstanding anything contained in section 40, the owner of a motor vehicle may apply to any registering authority or other authority as may be prescribed by the State Government to have the motor vehicle temporarily registered and such authority shall issue a temporary certificate of registration and temporary registration mark in accordance with such rules as may be made by the Central Government:

Provided that the State Government may register a motor vehicle that plies, temporarily, within the State and issue a certificate of registration and registration mark for a period of one month in such manner as may be prescribed by the State Government.".

19. For section 44 of the principal Act, the following section shall be substituted, namely :—

Substitution of new section for section 44.

Production of vehicle at the time of registration.

"44. (1) Subject to such terms and conditions as may be prescribed by the Central Government in this behalf, a motor vehicle sold by an authorised dealer shall not require production before a registering authority for the purposes of registration for the first time.

(2) Subject to such terms and conditions as may be prescribed by the State Government, a person in whose name a certificate of registration has been issued shall not be required to produce the vehicle registered or transferred before a registering authority.".

20. In section 49 of the principal Act,—

Amendment of section 49.

(i) in sub-section (1), for the words "registering authority, to that other registering authority", the words "State, to any registering authority in that State" shall be substituted;

(ii) after sub-section (1), the following sub-section shall be inserted, namely:—

"(1A) The intimation under sub-section (1) may be sent to the appropriate registering authority in electronic form along with the electronic form of such Substitution of documents, including proof of authentication in such manner as may be prescribed by the Central Government.";

(iii) in sub-section (2), for the words "one hundred rupees", the words "five hundred rupees" shall be substituted.

21. In section 52 of the principal Act,—

Amendment of section 52.

(i) in sub-section (1), for the second proviso, the following proviso shall be substituted, namely:—

"Provided further that the Central Government may prescribe specifications, conditions for approval, retrofitment and other related matters for the alteration of motor vehicles and in such cases, the warranty granted by the manufacturer shall not be considered as void for the purposes of such alteration or retrofitment.";

(ii) after sub-section (1), the following sub-section shall be inserted, namely:—

"(1A) A manufacturer of a motor vehicle shall on the direction issued by the Central Government, alter or retrofit safety equipment, or any other equipment in accordance with such standards and specifications as may be specified by the Central Government.";

(iii) for sub-section (2), the following sub-section shall be substituted, namely:—

"(2) Notwithstanding anything contained in sub-section (1), any person may, with the subsequent approval of the registering authority, alter or cause to be altered any vehicle owned by him to be converted into an adapted vehicle:

Provided that such alteration complies with such conditions as

may be prescribed by the Central Government.";

(iv) in sub-section (3), the words, brackets and figure "or by reason of replacement of its engine without such approval under sub-section (2)" shall be omitted.

22. In section 55 of the principal Act, after sub-section (5), the following Amendment of section 55.

sub-section shall be inserted, namely:—

"(5A) If any registering authority or other prescribed authority has reason to believe that any motor vehicle within its jurisdiction has been used in the commission of an offence punishable under section 199A, the authority may, after giving the owner an opportunity of making a representation in writing, cancel the certificate of registration of the vehicle for a period of one year:

Provided that the owner of the motor vehicle may apply for fresh registration in accordance with the provisions of section 40 and section 41.".

23. In section 56 of the principal Act,—

Amendment of section 56.

(i) in sub-section (1), after the proviso, the following proviso shall be

inserted, namely:—

"Provided further that no certificate of fitness shall be granted to a vehicle, after such date as may be notified by the Central Government, unless such vehicle has been tested at an automated testing station.";

(ii) for sub-section (2), the following sub-section shall be substituted,

namely:—

"(2) The "authorised testing station" referred to in sub-section (1) means any facility, including automated testing facilities, authorised by the State Government, where fitness testing may be conducted in accordance with the rules made by the Central Government for recognition, regulation and control of such stations.";

(iii) in sub-section (4), for the proviso, the following provisos shall be

substituted, namely:—

"Provided that no such cancellation shall be made by the

prescribed authority unless,—

(a) such prescribed authority holds such technical qualification as may be prescribed by the Central Government and where the prescribed authority does not hold the technical qualification, such cancellation is made on the basis of the report of an officer having such qualification; and

(b) the reasons recorded in writing cancelling a certificate of fitness are confirmed by an authorised testing station chosen by the owner of the vehicle whose certificate of fitness is sought to be cancelled:

Provided further that if the cancellation is confirmed by the authorised testing station, the cost of undertaking the test shall be borne by the owner of the vehicle being tested and in the alternative by the prescribed authority.";

(iv) after sub-section (5), the following sub-sections shall be inserted, namely:—

"(6) All transport vehicles with a valid certificate of fitness issued under this section shall carry, on their bodies, in a clear and visible manner such distinguishing mark as may be prescribed by the Central Government.

(7) Subject to such conditions as the Central Government may prescribe, the provisions of this section may be extended to non- transport vehicles.".

24. In section 59 of the principal Act, after sub-section (3), the following Amendment of section 59.

sub-section shall be inserted, namely:—

"(4) The Central Government may, having regard to the public safety, convenience, protection of the environment and the objects of this Act, make rules prescribing the manner of recycling of motor vehicles and parts thereof which have exceeded their life.".

25. After section 62 in the principal Act, the following sections shall be inserted, namely:—

Insertion of new sections 62A and 62B.

"62A. (1) No registering authority shall register any motor vehicle that contravenes any rule made under clause (a) of sub-section (1) of section 110.

Prohibition of registration and issuance of certificate of fitness to oversized vehicles.

(2) No prescribed authority or authorised testing station shall issue a certificate of fitness under section 56 to any motor vehicle that contravenes any rule made under section 110.

62B. (1) The Central Government shall maintain a National Register of Motor Vehicles in such form and manner as may be prescribed by it:

National Register of Mot or Vehicles.

Provided that all State Registers of Motor Vehicles shall be subsumed under the National Register of Motor Vehicles by such date as may be notified in the Official Gazette by the Central Government.

(2) No certificate of registration issued, or renewed, under this Act shall be valid unless it has been issued a unique registration number under the National Register of Motor Vehicles.

(3) In order to maintain the National Register of Motor Vehicles, all State Governments and registering authorities under this Act shall transmit all information and data in the State Register of Motor Vehicles to the Central Government in such form and manner as may be prescribed by the Central Government.

(4) State Governments shall be able to access the National Register of Motor Vehicles and update records in accordance with the provisions of this Act and the rules made by the Central Government thereunder.".

26. For section 63 of the principal Act, the following section shall be substituted, namely:—

Substitution of new section for section 63.

"63. Each State Government shall maintain in such form as may be prescribed by the Central Government a register to be known as the State Register of Motor Vehicles, in respect of the motor vehicles in that State, containing the particulars including—

Maintenance of State Registers of mo to r vehicles.

(a) registration numbers;

(b) years of manufacture;

(c) classes and types;

(d) names and addresses of registered owners; and

(e) such other particulars as may be prescribed by the Central

Government.".

27. In section 64 of the principal Act,—

Amendment of section 64.

(i) after clause (d), the following clause shall be inserted, namely:—

"(da) providing for the period of validity of a certificate of

registration under sub-section (7) of section 41;";

(ii) after clause (e), the following clause shall be inserted, namely:—

"(ea) the period of renewal of certificate of registration of different types of motor vehicles under sub-section (10) of section 41;";

(iii) after clause (f), the following clauses shall be inserted, namely:—

"(fa) the issue of temporary certificate of registration and

temporary registration mark under section 43;

(fb) the terms and conditions under which a motor vehicle sold by an authorised dealer shall not require production before a registering authority under sub-section (1) of section 44;";

(iv) after clause (j), the following clause shall be inserted, namely:—

"(ja) the form and manner for the electronic submission of the intimation of change of address, documents to be submitted along with such intimation including proof of authentication under sub-section (1A) of section 49;";

(v) after clause (l), the following clauses shall be inserted, namely:—

"(la) specifications, conditions for approval, retrofitment and other related matters for the alteration of motor vehicles under sub-section (1) of section 52;

(lb) the conditions for the alteration of any motor vehicle into an

adapted vehicle under sub-section (2) of section 52;";

(vi) after clause (n), the following clauses shall be inserted, namely:—

"(na) the distinguishing mark to be carried on the body of

transport vehicles under sub-section (6) of section 56;

(nb) the conditions under which the application of section 56 may be extended to non-transport vehicles under sub-section (7) of section 56;

(nc) the recycling of motor vehicles and parts thereof which

have exceeded their life under sub-section (4) of section 59;";

(vii) after clause (o), the following clauses shall be inserted, namely:—

"(oa) all or any of the matters under sub-section (1) of section

62B;

(ob) all or any of the matters under sub-section (1) and sub-

section (2) of section 63;".

28. In section 65 of the principal Act, in sub-section (2),—

Amendment of section 65.

(i) in clause (f), after the word "marks", the words and figures "under the proviso to section 43" shall be inserted;

(ii) clause (o) shall be omitted.

29. In section 66 of the principal Act,––

Amendment of section 66.

(i) in sub-section (1), after the third proviso, the following proviso shall be inserted, namely:—

"Provided also that where a transport vehicle has been issued any permit or permits, as well as a licence under this Act, such vehicle may be used either under the permit, or permits, so issued to it, or under such licence, at the discretion of the vehicle owner.";

(ii) in sub-section (3), after clause (p), the following clause shall be inserted, namely:—

"(q) to any transport vehicle having been issued a licence under a scheme, under sub-section (3) of section 67 or sub-section (1) of section 88A, or plying under such orders as may be issued by the Central Government or by the State Government.".

30. After section 66 of the principal Act, the following sections shall be inserted, namely:––

Insertion of new sections 66A and 66B.

National Transportation Policy.

"66A. The Central Government may develop a National Transportation Policy consistent with the objects of this Act in concurrence with the State Governments and other agencies with a view to—

(i) establish a planning framework for passengers and goods transportation within which transport bodies are to operate;

(ii) establish a medium and long term planning framework for all forms of road transport, identify areas for the development of transport improvement infrastructure across India in consultation with the authorities and agencies related to ports, railways and aviation as well as with local and State level planning, land holding and regulatory authorities for the delivery of an integrated multimodal transport system;

(iii) establish the framework of grant of permits and schemes;

(iv) establish strategic policy for transport by road and its role as a link to other means of transport;

(v) identify strategic policies and specify priorities for the transport system that address current and future challenges;

(vi) provide medium to long term strategic directions, priorities and actions;

(vii) promote competition, innovation, increase in capacity, seamless mobility and greater efficiency in transport of goods or livestock or passengers, and economical use of resources;

(viii) safeguard the interest of the public and promote equity, while seeking to enhance private participation and public-private partnership in the transport sector;

(ix) demonstrate an integrated approach to transport and land use planning;

(x) identify the challenges that the National Transportation Policy

seeks to address; and

(xi) address any other matter deemed relevant by the Central

Government.

66B. No person who holds the permit issued under this Act shall— No bar against permit holders to apply and hold licences under schemes.

(a) be disqualified from applying for a licence under the scheme made under sub-section (3) of section 67 or sub-section (1) of section 88A by reason of holding such permit; and

(b) be required to get such permit cancelled on being issued a

licence under any scheme made under this Act.".

31. In section 67 of the principal Act,—

Amendment of section 67.

(i) for sub-section (1), the following sub-section shall be substituted,

namely:—

"(1) A State Government, having regard to—

(a) the advantages offered to the public, trade and industry

by the development of motor transport;

(b) the desirability of co-ordinating road and rail transport;

(c) the desirability of preventing the deterioration of the

road system, and

(d) promoting effective competition among the transport

service providers,

may, from time to time, by notification in the Official Gazette issue directions both to the State Transport Authority and Regional Transport Authority regarding the passengers' convenience, economically competitive fares, prevention of overcrowding and road safety.";

(ii) in sub-section (2), the following proviso shall be inserted,

namely:—

"Provided that the State Government may subject to such conditions as it may deem fit, and with a view to achieving the objectives specified in clause (d) of sub-section (1), relax all or any of the provisions made under this Chapter.";

(iii) after sub-section (2), the following sub-sections shall be inserted,

namely:—

"(3) Notwithstanding anything contained in this Act, the State Government may, by notification in the Official Gazette, modify any permit issued under this Act or make schemes for the transportation of goods and passengers and issue licences under such scheme for the promotion of development and efficiency in transportation—

(a) last mile connectivity;

(b) rural transport;

(c) reducing traffic congestion;

(d) improving urban transport;

(e) safety of road users;

(f) better utilisation of transportation assets;

(g) the enhancement of economic vitality of the area, through competitiveness, productivity and efficiency;

(h) the increase in the accessibility and mobility of people;

(i) the protection and enhancement of the environment;

(j) the promotion of energy conservation;

(k) improvement of the quality of life;

(l) enhance integration and connectivity of the transportation system, across and between modes of transport; and

(m) such other matters as the Central Government may deem fit.

(4) The scheme framed under sub-section (3), shall specify the fees to be charged, form of application and grant of a licence including the renewal, suspension, cancellation or modification of such licence.".

32. In section 72 of the principal Act, in sub-section (2), the following Amendment of section 72.

proviso shall be inserted, namely:—

"Provided that the Regional Transport Authority may waive any such condition for a stage carriage permit operating in a rural area, as it deems fit.".

33. In section 74 of the principal Act,—

Amendment of section 74.

(i) in sub-section (2), the following proviso shall be inserted, namely:—

"Provided that the Regional Transport Authority may in the interests of last mile connectivity waive any such condition in respect of any such types of vehicles as may be specified by the Central Government.";

(ii) in sub-section (3), in the proviso to clause (b), after sub-clause (vi), the following sub-clause shall be inserted, namely:—

"(vii) self-help groups.".

34. After section 88 of the principal Act, the following section shall be inserted, namely:—

Insertion of new section 88 A.

"88A. (1) Notwithstanding anything contained in this Act, the Central Government may, by notification in the Official Gazette, modify any permit issued under this Act or make schemes for national, multimodal and inter- State transportation of goods or passengers, and issue or modify licences under, such scheme for the following purposes, namely :—

(a) last mile connectivity;

Power of Central Government to make schemes for national, multimodal and inter-State transport of passengers and goods.

(b) rural transport;

(c) improving the movement of freight, and logistics;

(d) better utilisation of transportation assets;

(e) the enhancement to the economic vitality of the area, especially by enabling competitiveness, productivity and efficiency;

(f) the increase in the accessibility and mobility of people;

(g) the protection and enhancement of the environment;

(h) the promotion of energy conservation;

(i) improvement of the quality of life;

(j) enhancement of the integration and connectivity of the transportation system, across and between modes of transport; and

(k) such other matters as the Central Government may deem fit:

Provided that the Central Government may, before taking any action

under this sub-section seek concurrence of the State Governments.

(2) Notwithstanding anything contained in sub-section (1), two or more States may make schemes for the operation within such States for the inter-State transportation of goods or passengers :

Provided that in the event of any repugnancy between the schemes made by the Central Government under sub-section (1) and schemes made by two or more States under this sub-section, the schemes made under sub-section (1) shall prevail.".

Amendment of section 92.

35. In section 92 of the principal Act, for the words "stage carriage or contract carriage, in respect of which a permit", the words "transport vehicle, in respect of which a permit or licence" shall be substituted.

36. In section 93 of the principal Act,—

Amendment of section 93.

(i) for the marginal heading, the following marginal heading shall be

substituted, namely:—

"Agent or canvasser or aggregator to obtain licence.";

(ii) in sub-section (1),—

(a) after clause (ii), the following clause shall be inserted,

namely:—

"(iii) as an aggregator,";

(b) the following provisos shall be inserted, namely:—

"Provided that while issuing the licence to an aggregator the State Government may follow such guidelines as may be issued by the Central Government:

21 of 2000.

Provided further that every aggregator shall comply with the provisions of the Information Technology Act, 2000 and the rules and regulations made thereunder.".

Amendment of section 94.

37. In section 94 of the principal Act, after the word "permit" occurring at both the places the words "or licence issued under any scheme" shall be inserted.

38. In section 96 of the principal Act, in sub-section (2), after clause Amendment of section 96.

(xxxii), the following clauses shall be inserted, namely:—

"(xxxiia) framing of schemes under sub-section (3) of section 67;

(xxxiib) the promotion of effective competition, passenger convenience

and safety, competitive fares and prevention of overcrowding;".

39. In section 110 of the principal Act,—

Amendment of section 110.

(i) in sub-section (1), in clause (k), after the words "standards of the components", the words ", including software," shall be inserted;

(ii) in sub-section (2), after the words "in particular circumstances", the words "and such rules may lay down the procedure for investigation, the officers empowered to conduct such investigations, the procedure for hearing of such matters and the penalties to be levied thereunder" shall be inserted;

(iii) after sub-section (2), the following sub-section shall be inserted, namely:—

5 of 1908.

"(2A) Persons empowered under sub-section (2) to conduct investigations referred to in sub-section (2) shall have all the powers of a civil court, while trying a suit under the Code of Civil Procedure, 1908 in respect of the following matters, namely:—

(a) summoning and enforcing the attendance of any person and examining him on oath;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavit; and

(d) any other matter as may be prescribed.".

40. After section 110 of the principal Act, the following sections shall be inserted, namely:—

Insertion of new sections 110A and 110B.

Recall of motor vehicles.

"110A. (1) The Central Government may, by order, direct a manufacturer to recall motor vehicles of a particular type or its variants, if– (a) a defect in that particular type of motor vehicle may cause harm to the environment or to the driver or occupants of such motor vehicle or other road users; and

(b) a defect in that particular type of motor vehicle has been reported to the Central Government by—

(i) such percentage of owners, as the Central Government, may by notification in the Official Gazette, specify; or

(ii) a testing agency; or

(iii) any other source.

(2) Where the defect referred to in sub-section (1) lies in a motor vehicle component, the Central Government may, by order, direct a manufacturer to recall all motor vehicles which contain such component, regardless of the type or variants of such motor vehicle.

(3) A manufacturer whose vehicles are recalled under sub-section (1) or sub-section (2), shall—

(a) reimburse the buyers for the full cost of the motor vehicle, subject to any hire-purchase or lease-hypothecation agreement; or (b) replace the defective motor vehicle with another motor vehicle of similar or better specifications which complies with the standards specified under this Act or repair it; andThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 315 (c) pay such fines and other dues in accordance with sub-

section (6).

(4) Where a manufacturer notices a defect in a motor vehicle manufactured by him, he shall inform the Central Government of the defect and initiate recall proceedings and in such case the manufacturer shall not be liable to pay fine under sub-section (3).

5 of 1908.

(5) The Central Government may authorise any officer to conduct investigation under this section who shall have all the powers of a civil court, while trying a suit under the Code of Civil Procedure, 1908 in respect of the following matters, namely:—

(a) summoning and enforcing the attendance of any person and

examining him on oath;

(b) requiring the discovery and production of any document;

(c) receiving evidence on affidavit; and

(d) any other matter as may be prescribed.

(6) The Central Government may make rules for regulating the recall of motorvehicles, of a particular type or its variants, for any defect which in the opinion of the Central Government, may cause harm to the environment or to the driver or occupants of such motor vehicle or to other road users.

Type-approval certificate and testing agencies.

110B. (1) No motor vehicle, including a trailer or semi-trailer or modular hydraulic trailer or side car shall be sold or delivered or offered for sale or delivery or used in a public place in India unless a type- approval certificate referred to in sub-section (2) has been issued in respect of such vehicle:

Provided that the Central Government may, by notification in the Official Gazette, extend the requirement of type-approval certificate to other vehicles drawn or intended to be drawn by a motor vehicle:

Provided further that such certificate shall not be required for vehicles

which are—

(a) intended for export or display or demonstration or exhibition;

or

(b) used by a manufacturer of motor vehicles or motor vehicle components or a research and development centre or a test by agency for testing and validation or for data collection, inside factory premises or in a non-public place; or

(c) exempted by the Central Government.

(2) The manufacturer or importer of motor vehicles including trailers, semi-trailers, modular hydraulic trailers and side cars shall submit the prototype of the vehicle to be manufactured or imported for test to a testing agency for obtaining a type-approval certificate by such agency.

(3) The Central Government shall make rules for the accreditation,

registration and regulation of testing agencies.

(4) The testing agencies shall conduct tests on vehicles drawn from the production line of the manufacturer or obtained otherwise to verify the conformity of such vehicles to the provisions of this Chapter and the rules and regulations made thereunder.

(5) Where the motor vehicle having a type-approval certificate is recalled under section 110A, the testing agency which granted the certificate to such motor vehicle shall be liable for its accreditation and registration to be cancelled.".

Amendment of section 114.

41. In section 114 of the principal Act, in sub-section (1), for the words "authorised in this behalf by the State Government", the words "or any other person authorised in this behalf by the State Government" shall be substituted.

42. In section 116 of the principal Act,—

Amendment of section 116.

(i) after sub-section (1), the following sub-section shall be inserted, namely:—

68 of 1988.

"(1A) Notwithstanding anything contained in sub-section (1), the National Highways Authority of India constituted under the National Highways Authority of India Act, 1988 or any other agency authorised by the Central Government, may cause or permit traffic signs, as provided in the First Schedule, to be placed or erected or removed on national highways for the purpose of regulating motor vehicle traffic and may order the removal of any sign or advertisement which in its opinion is so placed as to obscure any traffic sign from view or is so similar in appearance to a traffic sign as to mislead or is likely to distract the attention or concentration of the driver:

Provided that for the purposes of this sub-section, the National Highway Authority of India or any other agency authorised by the Central Government may seek assistance from the authorities of the State Government and the said State Government shall provide such assistance.";

(ii) in sub-section (3), after the words, brackets and figure "provided by sub-section (1)", the words, brackets, figure and letter "or sub-section (1A)" shall be inserted.

43. In section 117 of the principal Act, the following provisos shall be Amendment of section 117.

inserted, namely:—

"Provided that the State Government or the authorised authority shall, give primacy to the safety of road users and the free flow of traffic in determining such places:

68 of 1988.

Provided further that for the purpose of this section the National Highways Authority of India, constituted under the National Highways Authority of India Act, 1988 or any other agency authorised by the Central Government, may also determine such places.".

44. For section 129 of the principal Act, the following section shall be substituted, namely:—

Substitution of new section for section 129.

Wearing of protective headgear.

'129. Every person, above four years of age, driving or riding or being carried on a motorcycle of any class or description shall, while in a public place, wear protective headgear conforming to such standards as may be prescribed by the Central Government:

Provided that the provisions of this section shall not apply to a person who is a Sikh, if, while driving or riding on the motorcycle, in a public place, he is wearing a turban:

Provided further that the Central Government may by rules provide for measures for the safety of children below four years of age riding or being carried on a motorcycle.

Explanation.— "Protective headgear" means a helmet which,—

(a) by virtue of its shape, material and construction, could reasonably be expected to afford to the person driving or riding on a motorcycle a degree of protection from injury in the event of an accident; and

(b) is securely fastened to the head of the wearer by means of

straps or other fastenings provided on the headgear.'.

45. After section 134 of the principal Act, the following section shall be Insertion of new section 134A.

inserted, namely:—

Protection of Good Samaritans.

"134A. (1) A Good Samaritan shall not be liable for any civil or criminal action for any injury to or death of the victim of an accident involving a motor vehicle, where such injury or death resulted from the Good Samaritan's negligence in acting or failing to act while rendering emergency medical or non-medical care or assistance.

(2) The Central Government may by rules provide for the procedure for questioning or examination of the Good Samaritan, disclosure of personal information of the Good Samaritan and such other related matters.

Explanation.—For the purposes of this section, "Good Samaritan" means a person, who in good faith, voluntarily and without expectation of any reward or compensation renders emergency medical or non-medical care or assistance at the scene of an accident to the victim or transports such victim to the hospital.".

46. In section 135 of the principal Act,—

Amendment of section 135.

(i) in sub-section (1),—

(a) in clause (c), the word "and" shall be omitted;

(b) in clause (d), for the word "highways", the words

"highways; and" shall be substituted; and

(ii) after clause (d), the following clause shall be inserted, namely:—

"(e) any other amenities in the interests of the safety and the

convenience of the public.";

(iii) after sub-section (2), the following sub-section shall be inserted,

namely:—

"(3) The Central Government may, by notification in the Official Gazette, make one or more schemes to conduct in-depth studies on the causes and analysis of road accidents.".

47. After section 136 of the principal Act, the following section shall be

inserted, namely:—

Amendment of new section 136 A.

Electronic monitoring and enforcement of road safety.

'136A. (1) The State Government shall ensure electronic monitoring and enforcement of road safety in the manner provided under sub-section (2) on national highways, state highways, roads or in any urban city within a State which has a population up to such limits as may be prescribed by the Central Government.

(2) The Central Government shall make rules for the electronic monitoring and enforcement of road safety including speed cameras, closed- circuit television cameras, speed guns, body wearable cameras and such other technology.

Explanation.—For the purpose of this section the expression "body wearable camera" means a mobile audio and video capture device worn on the body or uniform of a person authorised by the State Government.'. 48. In section 137 of the principal Act,—

Amendment of section 137.

(i) after clause (a), the following clause shall be inserted, namely:—

"(aa) providing for the standards of protective headgear and measures for the safety of children below the age of four years riding under section 129;";

(ii) after clause (b), the following clauses shall be inserted, namely:—

"(c) providing for limits of urban city by the State Governments under sub-section (1) of section 136A; and

(d) providing for electronic monitoring and enforcement under sub-section (2) of section 136A.".

49. In section 138 of the principal Act, after sub-section (1), the following Amendment of section 138.

sub-section shall be inserted, namely:—

"(1A) The State Government may, in the interest of road safety, make rules for the purposes of regulating the activities and access of non- mechanically propelled vehicles and pedestrians to public places and national highways:

Provided that in the case of national highways, such rules shall be framed in consultation with the National Highways Authority of India.".

50. Chapter X in the principal Act shall be omitted.

Omission of Chapter X.

51. For Chapter XI of the principal Act, the following Chapter shall be substituted, namely:—

Substitution of new Chapter XI for Chapter XI.

'CHAPTER XI

INSURANCE OF MOTOR VEHICLES AGAINST THIRD PARTY RISKS

Definitions.

145. In this Chapter,—

41 of 1999.

57 of 1972 (a) "authorised insurer" means an insurer for the time being carrying on general insurance business in India and granted a certificate of registration by the Insurance Regulatory and Development Authority of India established under section 3 of the Insurance Regulatory and Development Authority Act, 1999 and any Government insurance fund authorised to do general insurance business under the General Insurance Business (Nationalisation) Act, 1972;

(b) "certificate of insurance" means a certificate issued by an authorised insurer in pursuance of section 147 and includes a cover note complying with such requirements as may be prescribed, and where more than one certificate has been issued in connection with a policy, or where a copy of a certificate has been issued, all those certificates or that copy, as the case may be;

(c) "grievous hurt" shall have the same meaning as assigned to it in

45 of 1860.

section 320 of the Indian Penal Code;

(d) "hit and run motor accident" means an accident arising out of the use of a motor vehicle or motor vehicles the identity whereof cannot be ascertained in spite of reasonable efforts for the purpose;

41 of 1999.

(e) "Insurance Regulatory and Development Authority" means the Insurance Regulatory and Development Authority established under section 3 of the Insurance Regulatory and Development Authority Act, 1999;

(f) "policy of insurance" includes certificate of insurance;

(g) "property" includes roads, bridges, culverts, causeways, trees, posts, milestones and baggage of passengers and goods carried in any motor vehicle;

(h) "reciprocating country" means any such country as may on the basis of reciprocity be notified by the Central Government in the Official Gazette to be a reciprocating country for the purposes of this Act;

(i) "third party" includes the Government, the driver and any other

co-worker on a transport vehicle.

Necessity for insurance against third party risks.

146. (1) No person shall use, except as a passenger, or cause or allow any other person to use, a motor vehicle in a public place, unless there is in force, in relation to the use of the vehicle by that person or that other person, as the case may be, a policy of insurance complying with the requirements of this Chapter:

6 of 1991.

Provided that in the case of a vehicle carrying, or meant to carry, dangerous or hazardous goods, there shall also be a policy of insurance under the Public Liability Insurance Act, 1991.

Explanation.—For the purposes of this sub-section, a person driving a motor vehicle merely as a paid employee, while there is in relation to the use of the vehicle no such policy in force as is required by this sub-section, shall not be deemed to act in contravention of the sub-section unless he knows or has reason to believe that there is no such policy in force.

(2) The provisions of sub-section (1) shall not apply to any vehicle owned by the Central Government or a State Government and used for purposes not connected with any commercial enterprise.

(3) The appropriate Government may, by order, exempt from the operation of sub-section (1), any vehicle owned by any of the following authorities, namely:—

(a) the Central Government or a State Government, if the vehicle is

used for purposes connected with any commercial enterprise;

(b) any local authority;

(c) any State Transport Undertaking:

Provided that no such order shall be made in relation to any such authority unless a fund has been established and is maintained by that authority in such manner as may be prescribed by appropriate Government.

Explanation.—For the purposes of this sub-section, "appropriate Government" means the Central Government or a State Government, as the case may be, and—

(i) in relation to any corporation or company owned by the Central Government or any State Government, means the Central Government or that State Government;

(ii) in relation to any corporation or company owned by the Central Government and one or more State Governments, means the Central Government;

(iii) in relation to any other State Transport Undertaking or any local authority, means that Government which has control over that undertaking or authority.

147. (1) In order to comply with the requirements of this Chapter, a policy of insurance must be a policy which—

Requirement of policies and limits of liability.

(a) is issued by a person who is an authorised insurer; and

(b) insures the person or classes of persons specified in the policy to the extent specified in sub-section (2)—

(i) against any liability which may be incurred by him in respect of the death of or bodily injury to any person including owner of the goods or his authorised representative carried in the motor vehicle or damage to any property of a third party caused by or arising out of the use of the motor vehicle in a public place;

(ii) against the death of or bodily injury to any passenger of a transport vehicle, except gratuitous passengers of a goods vehicle, caused by or arising out of the use of the motor vehicle in a public place.

Explanation.—For the removal of doubts, it is hereby clarified that the death of or bodily injury to any person or damage to any property of a third party shall be deemed to have been caused by or to have arisen out of, the use of a vehicle in a public place, notwithstanding that the person who is dead or injured or the property which is damaged was not in a public place at the time of the accident, if the act or omission which led to the accident occurred in a public place.

(2) Notwithstanding anything contained under any other law for the time being in force, for the purposes of third party insurance related to either death of a person or grievous hurt to a person, the Central Government shall prescribe a base premium and the liability of an insurer in relation to such premium for an insurance policy under sub-section (1) in consultation with the Insurance Regulatory and Development Authority.

(3) A policy shall be of no effect for the purposes of this Chapter unless and until there is issued by the insurer in favour of the person by whom the policy is effected, a certificate of insurance in the prescribed form and containing the prescribed particulars of any condition subject to which the policy is issued and of any other prescribed matters; and different forms, particulars and matters may be prescribed in different cases.

(4) Notwithstanding anything contained in this Act, a policy of Insurance issued before the commencement of the Motor Vehicles (Amendment) Act, 2019 shall be continued on the existing terms under the contract and the provisions of this Act shall apply as if this Act had not been amended by the said Act.

(5) Where a cover note issued by the insurer under the provisions of this Chapter or the rules or regulations made thereunder is not followed by a policy of insurance within the specified time, the insurer shall, within seven days of the expiry of the period of the validity of the cover note, notify the fact to the registering authority or to such other authority as the State Government may prescribe.

(6) Notwithstanding anything contained in any other law for the time being in force, an insurer issuing a policy of insurance under this section shall be liable to indemnify the person or classes of persons specified in the policy in respect of any liability which the policy purports to cover in the case of that person or those classes of persons.

Validity of policies of insurance issued in reciprocating countries.

148. Where, in pursuance of an arrangement between India and any reciprocating country, the motor vehicle registered in the reciprocating country operates on any route or within any area common to the two countries and there is in force in relation to the use of the vehicle in the reciprocating country, a policy of insurance complying with the requirements of the law of insurance for the time being in force in that country, then, notwithstanding anything contained in section 147 but subject to any rules which may be made under section 164B such policy of insurance shall be effective throughout the route or area in respect of which the arrangement has been made, as if the policy of insurance had complied with the requirements of this Chapter.

149. (1) The insurance company shall, upon receiving information of the accident, either from claimant or through accident information report or otherwise, designate an officer to settle the claims relating to such accident.

Settlement by insurance company and procedure therefor.

(2) An officer designated by the insurance company for processing the settlement of claim of compensation may make an offer to the claimant for settlement before the Claims Tribunal giving such details, within thirty days and after following such procedure as may be prescribed by the Central Government.

(3) If, the claimant to whom the offer is made under sub-section (2),—

(a) accepts such offer,—

(i) the Claims Tribunal shall make a record of such settlement,

and such claim shall be deemed to be settled by consent; and

(ii) the payment shall be made by the insurance company within a maximum period of thirty days from the date of receipt of such record of settlement;

(b) rejects such offer, a date of hearing shall be fixed by the Claims

Tribunal to adjudicate such claim on merits.

Duty of insurers to satisfy judgments and awards against persons insured in respect of third party risks.

150. (1) If, after a certificate of insurance has been issued under sub- section (3) of section 147 in favour of the person by whom a policy has been effected, judgment or award in respect of any such liability as is required to be covered by a policy under clause (b) of sub-section (1) of section 147 (being a liability covered by the terms of the policy) or under the provisions of section 164 is obtained against any person insured by the policy, then, notwithstanding that the insurer may be entitled to avoid or cancel or may have avoided or cancelled the policy, the insurer shall, subject to the provisions of this section, pay to the person entitled to the benefit of the award any sum not exceeding the sum assured payable thereunder, as if that person were the decree holder, inThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 322 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) respect of the liability, together with any amount payable in respect of costs and any sum payable in respect of interest on that sum by virtue of any enactment relating to interest on judgments.

(2) No sum shall be payable by an insurer under sub-section (1) in respect of any judgment or award unless, before the commencement of the proceedings in which the judgment or award is given the insurer had notice through the court or, as the case may be, the Claims Tribunal of the bringing of the proceedings, or in respect of such judgment or award so long as its execution is stayed pending an appeal; and an insurer to whom notice of the bringing of any such proceedings is so given shall be entitled to be made a party thereto, and to defend the action on any of the following grounds, namely:—

(a) that there has been a breach of a specified condition of the policy, being one of the following conditions, namely:––

(i) a condition excluding the use of the vehicle—

(A) for hire or reward, where the vehicle is on the date of the contract of insurance a vehicle not covered by a permit to ply for hire or reward; or

(B) for organised racing and speed testing; or

(C) for a purpose not allowed by the permit under which the vehicle is used, where the vehicle is a transport vehicle; or

(D) without side-car being attached where the vehicle is a two-wheeled vehicle; or

(ii) a condition excluding driving by a named person or by any person who is not duly licenced or by any person who has been disqualified for holding or obtaining a driving licence during the period of disqualification or driving under the influence of alcohol or drugs as laid down in section 185; or

(iii) a condition excluding liability for injury caused or contributed to by conditions of war, civil war, riot or civil commotion; or

(b) that the policy is void on the ground that it was obtained by nondisclosure of any material fact or by representation of any fact which was false in some material particular; or

(c) that there is non-receipt of premium as required under section

4 of 1938. 64VB of the Insurance Act, 1938.

5 of 1908.

4 of 1938.

(3) Where any such judgment or award as is referred to in sub-section (1) is obtained from a court in a reciprocating country and in the case of a foreign judgment is, by virtue of the provisions of section 13 of the Code of Civil Procedure, 1908 conclusive as to any matter adjudicated upon by it, the insurer (being an insurer registered under the Insurance Act, 1938 and whether or not that person is registered under the corresponding law of the reciprocating country) shall be liable to the person entitled to the benefit of the decree in the manner and to the extent specified in sub-section (1), as if the judgment or award were given by a court in India:

Provided that no sum shall be payable by the insurer in respect of any such judgment or award unless, before the commencement of the proceedings in which the judgment or award is given, the insurer had notice through the court concerned of the bringing of the proceedings and the insurer to whom notice isThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 323 so given is entitled under the corresponding law of the reciprocating country, to be made a party to the proceedings and to defend the action on grounds similar to those specified in sub-section (2).

(4) Where a certificate of insurance has been issued under sub-section (3) of section 147 to the person by whom a policy has been effected, so much of the policy as purports to restrict the insurance of the persons insured thereby, by reference to any condition other than those in sub-section (2) shall, as respects such liabilities as are required to be covered by a policy under clause (b) of sub-section (1) of section 147, be of no effect.

(5) No insurer to whom the notice referred to in sub-section (2) or sub- section (3) has been given shall be entitled to avoid his liability to any person entitled to the benefit of any such judgment or award as is referred to in sub- section (1) or in such judgment as is referred to in sub-section (3) otherwise than in the manner provided for in sub-section (2) or in the corresponding law of the reciprocating country, as the case may be.

(6) If on the date of filing of any claim, the claimant is not aware of the insurance company with which the vehicle had been insured, it shall be the duty of the owner of the vehicle to furnish to the tribunal or court the information as to whether the vehicle had been insured on the date of the accident, and if so, the name of the insurance company with which it is insured.

Explanation.—For the purposes of this section,—

(a) "award" means an award made by the Claims Tribunal under

section 168;

(b) "Claims Tribunal" means a Claims Tribunal constituted under

section 165;

(c) "liability covered by the terms of the policy" means the liability which is covered by the policy or which would be so covered but for the fact that the insurer is entitled to avoid or cancel or has avoided or cancelled the policy; and

(d) "material fact" and "material particular" mean, respectively, a fact or particular of such a nature as to influence the judgment of a prudent insurer in determining whether he shall take the risk and, if so, at what premium and on what conditions.

151. (1) Where under any contract of insurance affected in accordance with the provisions of this Chapter, a person is insured against liabilities which he may incur to third party, then—

Rights of third party against insurers on insolvency of insured.

(a) in the event of the person becoming insolvent or making a composition

or arrangement with his creditors; or

(b) where the insured person is a company, in the event of a winding-up order being made or a resolution for a voluntary winding-up being passed with respect to the company or of a receiver or manager of the company's business or undertaking being duly appointed, or of possession being taken by or on behalf

of the holders of any debentures secured by a floating charge of any property comprised in or subject to the charge,

if, either before or after that event, any such liability is incurred by the insured person his rights against the insurer under the contract in respect of the liabilityThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 324 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) shall, notwithstanding anything to the contrary in any provision of law, be transferred to and vest in the third party to whom the liability was so incurred.

(2) Where an order for the administration of the estate of a deceased debtor is made according to the law of insolvency, then, if any debt provable in insolvency is owing by the deceased in respect of a liability to a third party against which he was insured under a contract of insurance in accordance with the provisions of this Chapter, the deceased debtor's rights against the insurer in respect of that liability shall, notwithstanding anything to the contrary in any provision of law, be transferred to and vest in the person to whom the debt is owing.

(3) Any condition in a policy issued for the purposes of this Chapter purporting, either directly or indirectly, to avoid the policy or to alter the rights of the parties thereunder upon the happening to the insured person of any of the events specified in clause (a) or clause (b) of sub-section (1) or upon the making of an order for the administration of the estate of a deceased debtor according to the law of insolvency, shall be of no effect.

(4) Upon a transfer under sub-section (1) or sub-section (2), the insurer shall be under the same liability to the third party as he would have been to the insured person, but—

(a) if the liability of the insurer to the insured person exceeds the liability of the insured person to the third party, nothing in this Chapter shall affect the rights of the insured person against the insurer in respect of the excess amount; and

(b) if the liability of the insurer to the insured person is less than the liability of the insured person to the third party, nothing in this Chapter shall affect the rights of the third party against the insured person in respect of the balance amount.

Duty to give information as to insurance.

152. (1) No person against whom a claim is made in respect of any liability referred to in clause (b) of sub-section (1) of section 147 shall, on demand by or on behalf of the person making the claim, refuse to state whether or not he was insured in respect of that liability by any policy issued under the provisions of this Chapter, or would have been so insured if the insurer had not avoided or cancelled the policy, nor shall he refuse, if he was or would have been so insured, to give such particulars with respect to that policy as were specified in the certificate of insurance issued in respect thereof.

(2) In the event of any person becoming insolvent or making an arrangement with his creditors or in the event of an order being made for the administration of the estate of a deceased person according to the law of insolvency, or in the event of a winding-up order being made or a resolution for a voluntary winding- up being passed with respect to any company or of a receiver or manager of the company's business or undertaking being duly appointed or of possession being taken by or on behalf of the holders of any debentures secured by a floating charge on any property comprised in or subject to the charge, it shall be the duty of the insolvent debtor, personal representative of the deceased debtor or company, as the case may be, or the official assignee or receiver in insolvency, trustee, liquidator, receiver or manager, or person in possession of the property to give, on the request of any person claiming that the insolvent debtor, deceased debtor or company is under such liability to him as is covered by the provision of thisThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) 325 Chapter, such information as may reasonably be required by him for the purpose of ascertaining whether any rights have been transferred to and vested in him by section 151 and for the purpose of enforcing such rights, if any, and any such contract of insurance as purports whether directly or indirectly to avoid the contract or to alter the rights of the parties thereunder upon the giving of such information in the events aforesaid, or otherwise to prohibit or prevent the giving thereof in the said events, shall be of no effect.

(3) If, from the information given to any person in pursuance of sub- section (2) or otherwise, he has reasonable ground for supporting that there have or may have been transferred to him under this Chapter rights against any particular insurer, that insurer shall be subject to the same duty as is imposed by the said sub-section on the persons therein mentioned.

(4) The duty to give the information imposed by this section shall include a duty to allow all contracts of insurance, receipts for premiums, and other relevant documents in the possession or power of the person on whom the duty is so imposed to be inspected and copies thereof to be taken.

Settlement between insurers and insured persons.

153. (1) No settlement made by an insurer in respect of any claim which might be made by a third party in respect of any liability of the nature referred to in clause (b) of sub-section (1) of section 147 shall be valid unless such third party is a party to the settlement.

(2) The Claims Tribunal shall ensure that the settlement is bona fide and was not made under undue influence and the compensation is made in accordance with the payment schedule referred to in sub-section (1) of section 164.

(3) Where a person who is insured under a policy issued for the purpose of this Chapter has become insolvent, or where, if such insured person is a company, a winding-up order has been made or a resolution for a voluntary winding-up has been passed with respect to the company, no agreement made between the insurer and the insured person after the liability has been incurred to a third party and after the commencement of the insolvency or winding-up, as the case may be, nor any waiver, assignment or other disposition made by or payment made to the insured person after the commencement aforesaid, shall be effective to defeat the rights transferred to the third party under this Chapter; but those rights shall be the same as if no such agreement, waiver, assignment or disposition or payment has been made.

Saving in respect of sections 151, 152 and 153.

154. (1) For the purposes of sections 151, 152 and 153, a reference to "liabilities to third parties" in relation to a person insured under any policy of insurance shall not include a reference to any liability of that person in the capacity of insurer under some other policy of insurance.

(2) The provisions of sections 151, 152 and 153 shall not apply where a company is wound-up voluntarily merely for the purposes of reconstruction or of an amalgamation with another company.

39 of 1925.

Effect of death on certain causes of action.

155. Notwithstanding anything contained in section 306 of the Indian Succession Act, 1925, the death of a person in whose favour a certificate of insurance had been issued, if it occurs after the happening of an event which has given rise to a claim under the provisions of this Chapter, shall not be a bar to the survival of any cause of action arising out of such event against his estate or against the insurer.

156. When an insurer has issued a certificate of insurance in respect of a contract of insurance between the insurer and the insured person, then—

Effect of certificate of insurance.

(a) if and so long as the policy described in the certificate has not been issued by the insurer to the insured, the insurer shall, as between himself and any other person except the insured, be deemed to have issued to the insured person a policy of insurance conforming in all respects with the description and particulars stated in such certificate; and

(b) if the insurer has issued to the insured the policy described in the certificate, but the actual terms of the policy are less favourable to persons claiming under or by virtue of the policy against the insurer either directly or through the insured than the particulars of the policy as stated in the certificate, the policy shall, as between the insurer and any other person except the insured, be deemed to be in terms conforming in all respects with the particulars stated in the said certificate.

Transfer of certificate of insurance.

157. (1) Where a person, in whose favour the certificate of insurance has been issued in accordance with the provisions of this Chapter, transfers to another person the ownership of the motor vehicle in respect of which such insurance was taken together with the policy of insurance relating thereto, the certificate of insurance and the policy described in the certificate shall be deemed to have been transferred in favour of the person to whom the motor vehicle is transferred with effect from the date of its transfer.

Explanation.—For the removal of doubts, it is hereby clarified that such deemed transfer shall include transfer of rights and liabilities of the said certificate of insurance and policy of insurance.

(2) The transferee shall apply within fourteen days from the date of transfer in the prescribed form to the insurer for making necessary changes in regard to the fact of transfer in the certificate of insurance and the policy described in the certificate in his favour, and the insurer shall make the necessary changes in the certificate and the policy of insurance in regard to the transfer of insurance.

158. (1) Any person driving a motor vehicle in any public place shall, on being so required by a police officer in uniform authorised in this behalf by the State Government, produce—

(a) the certificate of insurance;

Production of certain certificates, licence and permit in certain cases.

(b) the certificate of registration;

(c) the pollution under control certificate;

(d) the driving licence;

(e) in the case of a transport vehicle, also the certificate of fitness referred to in section 56, and the permit; and

(f) any certificate or authorisation of exemption that has been granted under this Act,

relating to the use of the vehicle.

(2) Where, owing to the presence of a motor vehicle in a public place, an accident occurs involving death or bodily injury to another person, if the driver of the vehicle does not at that time produce the required certificate, driving licence and permit referred to in sub-section (1) to a police officer, he or the owner shall produce the said certificates, licence and permit at the police station at which the driver makes the report required by section 134.

(3) No person shall be liable to conviction for offences under sub-section (1) or sub-section (2) by reason of the failure to produce the required certificate if, within seven days from the date on which its production was required under sub-section (1), or as the case may be, from the date of occurrence of the accident, he produces the certificate at such police station as may have been specified by him to the police officer who required its production or, as the case may be, to the police officer at the site of the accident or to the officer-in-charge of the police station at which he reported the accident:

Provided that except to such extent and with such modifications as may be prescribed, the provisions of this sub-section shall not apply to the driver of a transport vehicle.

(4) The owner of a motor vehicle shall give such information as he may be required by or on behalf of a police officer empowered in this behalf by the State Government for the purpose of determining whether the vehicle was or was not being driven in contravention of section 146 and on any occasion when the driver was required under this section to produce the certificate of insurance.

(5) In this section, the expression "produce the certificate of insurance" means production for examination the relevant certificate of insurance or such other evidence as may be prescribed to prove that the vehicle was not being driven in contravention of section 146.

Informa tion to be given regarding accident.

159. The police officer shall, during the investigation, prepare an accident information report to facilitate the settlement of claim in such form and manner, within three months and containing such particulars and submit the same to the Claims Tribunal and such other agency as may be prescribed.

Duty to furnish particulars of vehicle involved in accident.

160. A registering authority or the officer-in-charge of a police station shall, if so required by a person who alleges that he is entitled to claim compensation in respect of an accident arising out of the use of a motor vehicle, or if so required by an insurer against whom a claim has been made in respect of any motor vehicle, furnish to that person or to that insurer, as the case may be, on payment of the prescribed fee, any information at the disposal of the said authority or the said police officer relating to the identification marks and other particulars of the vehicle and the name and address of the person who was using the vehicle at the time of the accident or was injured by it and the property, if any, damaged in such form and within such time as the Central Government may prescribe.

Special provisions as to compensation in case of hit and run motor accident.

161. (1) Notwithstanding anything contained in any other law for the time being in force or any instrument having the force of law, the Central Government shall provide for paying in accordance with the provisions of this Act and the scheme made under sub-section (3), compensation in respect of the death of, or grievous hurt to, persons resulting from hit and run motor accidents.

(2) Subject to the provisions of this Act and the scheme made under sub-

section (3), there shall be paid as compensation,–

(a) in respect of the death of any person resulting from a hit and run motor accident, a fixed sum of two lakh rupees or such higher amount as may be prescribed by the Central Government;

(b) in respect of grievous hurt to any person resulting from a hit and run motor accident, a fixed sum of fifty thousand rupees or such higher amount as may be prescribed by the Central Government.

(3) The Central Government may, by notification in the Official Gazette, make a scheme specifying the manner in which the scheme shall be administered by the Central Government or General Insurance Council, the form, manner and the time within which applications for compensation may be made, the officers or authorities to whom such applications may be made, the procedure to be followed by such officers or authorities for considering and passing orders on such applications, and all other matters connected with, or incidental to, the administration of the scheme and the payment of compensation under this section.

(4) A scheme made under sub-section (3) may provide that,—

(a) a payment of such sum as may be prescribed by the Central Government as interim relief to any claimant under such scheme;

(b) a contravention of any provision thereof shall be punishable with imprisonment which may extend to two years, or with fine which shall not be less than twenty-five thousand rupees but may extend to five lakh rupees or with both;

(c) the powers, functions or duties conferred or imposed on any officer or authority by such scheme may be delegated with the prior approval in writing of Central Government, by such officer or authority to any other officer or authority.

Scheme for golden hour.

57 of 1972.

162. (1) Notwithstanding anything contained in the General Insurance Companies (Nationalisation) Act, 1972 or any other law for the time being in force or any instrument having the force of law, the insurance companies for the time being carrying on general insurance business in India shall provide in accordance with the provisions of this Act and the schemes made under this Act for treatment of road accident victims, including during the golden hour.

(2) The Central Government shall make a scheme for the cashless treatment of victims of the accident during the golden hour and such scheme may contain provisions for creation of a fund for such treatment.

Refund in certain cases of compensation paid under section 161.

163. (1) The payment of compensation in respect of the death of, or grievous hurt to, any person under section 161 shall be subject to the condition that if any compensation (hereafter in this sub-section referred to as the other compensation) or other amount in lieu of or by way of satisfaction of a claim for compensation is awarded or paid in respect of such death or grievous hurt under any other provision of this Act or any other law for the time being in force or otherwise, so much of the other compensation or other amount aforesaid as is equal to the compensation paid under section 161, shall be refunded to the insurer.

(2) Before awarding compensation in respect of an accident involving the death of, or bodily injury to, any person arising out of the use of a motor vehicle under any provision of this Act other than section 161 or any other law for the time being in force, the Claims Tribunal, court or other authority awarding such compensation shall verify as to whether in respect of such death or bodily injury compensation has already been paid under section 161 or an application for payment of compensation is pending under that section, and such Tribunal, court or other authority shall—

(a) if compensation has already been paid under section 161, direct the person liable to pay the compensation awarded by it to refund to the insurer, so much thereof as is required to be refunded in accordance with the provisions of sub-section (1);

(b) if an application for payment of compensation is pending under section 161 forward the particulars as to the compensation awarded by it to the insurer.

Explanation.—For the purpose of this sub-section, an application for

compensation under section 161 shall be deemed to be pending—

(i) if such application has been rejected, till the date of the

rejection of the application; and

(ii) in any other case, till the date of payment of compensation

in pursuance of the application.

Payment of compensation in case of death or grevious hurt, etc. 164. (1) Notwithstanding anything contained in this Act or in any other law for the time being in force or instrument having the force of law, the owner of the motor vehicle or the authorised insurer shall be liable to pay in the case of death or grievous hurt due to any accident arising out of the use of motor vehicle, a compensation, of a sum of five lakh rupees in case of death or of two and a half lakh rupees in case of grievous hurt to the legal heirs or the victim, as the case may be.

(2) In any claim for compensation under sub-section (1), the claimant shall not be required to plead or establish that the death or grievous hurt in respect of which the claim has been made was due to any wrongful act or neglect or default of the owner of the vehicle or of the vehicle concerned or of any other person.

(3) Where, in respect of death or grievous hurt due to an accident arising out of the use of motor vehicle, compensation has been paid under any other law for the time being in force, such amount of compensation shall be reduced from the amount of compensation payable under this section.

164A. (1) The Central Government, may make schemes for the provision

of interim relief to claimants praying for compensation under this Chapter.

Scheme for interim relief for claimants.

(2) A scheme made under sub-section (1) shall also provide for procedure to recover funds disbursed under such scheme from the owner of the motor vehicle, where the claim arises out of the use of such motor vehicle or other sources as may be prescribed by the Central Government.

164B. (1) The Central Government shall constitute a Fund to be called Motor Vehicle Accident Fund.

the Motor Vehicle Accident Fund and thereto shall be credited—

(a) payment of a nature notified and approved by the Central

Government;

(b) any grant or loan made to the Fund by the Central Government;

(c) the balance of the Fund created under scheme framed under section 163, as it stood immediately before the commencement of the Motor Vehicles (Amendment) Act, 2019; and

(d) any other source of income as may be prescribed by the Central

Government.

(2) The Fund shall be constituted for the purpose of providing compulsory

insurance cover to all road users in the territory of India.

(3) The Fund shall be utilised for the following, namely:—

(a) treatment of the persons injured in road accidents in accordance with the scheme framed by the Central Government under section 162;

(b) compensation to representatives of a person who died in hit and run motor accident in accordance with schemes framed under section 161;

(c) compensation to a person grievously hurt in a hit and run motor accident in accordance with schemes framed under section 161; and

(d) compensation to such persons as may be prescribed by the Central Government.

(4) The maximum liability amount that shall be paid in each case shall be such as may be prescribed by the Central Government.

(5) In all cases specified in clause (a) of sub-section (3), when the claim of such person becomes payable, where amount has been paid out of this Fund to any person, the same amount shall be deductible from the claim received by such person from the insurance company.

(6) The Fund shall be managed by such authority or agency as the Central Government may specify having regard to the following:—

(a) knowledge of insurance business of the agency;

(b) capability of the agency to manage funds; and

(c) any other criteria as may be prescribed by the Central Government. (7) The Central Government shall maintain proper accounts and other relevant records and prepare an annual statement of accounts of the Fund in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.

(8) The accounts of the Fund shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him.

(9) The Comptroller and Auditor-General of India or any person appointed by him in connection with the audit of the accounts of the Fund under this Act shall have the same rights, privileges and authority in connection with such audit of the Government accounts and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any of the offices of the Authority.

(10) The accounts of the Fund, as certified by the Comptroller and Auditor- General of India or any other person appointed by him in this behalf, together with the audit report thereon, shall be forwarded annually to the Central Government and the Central Government shall cause the same to be laid before each House of the Parliament.

(11) Any scheme framed under sub-section (3) of section 161, as it stood immediately before the commencement of the Motor Vehicles (Amendment) Act, 2019, shall be discontinued and all rights and liabilities accruing thereunder shall be met out of the Fund with effect from the date of commencement of this Act. 164C. (1) The Central Government may make rules for the purposes of carrying into effect, the provisions of this Chapter.

Power of Central Government to make rules.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for—

(a) the forms to be used for the purposes of this Chapter including,—

(i) the form of the insurance policy and the particulars it shall contain as referred to in sub-section (3) of section 147;

(ii) the form for making changes in regard to the fact of transfer

in the certificate of insurance under sub-section (2) of section 157;

(iii) the form in which the accident information report may be

prepared, the particulars it shall contain, the manner and the time for submitting the report to the Claims Tribunal and the other agency

under section 159;

(iv) the form for furnishing information under section 160; and

(v) the form of the annual statement of accounts for the Motor

Vehicle Accident Fund under sub-section (7) of section 164B;

(b) the making of applications for and the issue of certificates of

insurance;

(c) the issue of duplicates to replace certificates of insurance lost,

destroyed or mutilated;

(d) the custody, production, cancellation and surrender of certificates

of insurance;

(e) the records to be maintained by insurers of policies of insurance

issued under this Chapter;

(f) the identification by certificates or otherwise of persons or vehicles

exempted from the provisions of this Chapter;

(g) the furnishing of information respecting policies of insurance by

insurers;

(h) adopting the provisions of this Chapter to vehicles brought into

India by persons making only a temporary stay therein or to vehicles registered in a reciprocating country and operating on any route or within

any area in India by applying those provisions with prescribed modifications;

(i) the requirements which a certificate of insurance is required to

comply with as referred to in clause (b) of section 145;

(j) administration of the Fund established under sub-section (3) of

section 146;

(k) the minimum premium and the maximum liability of an insurer

under sub-section (2) of section 147;

(l) the conditions subject to which an insurance policy shall be issued

and other matters related thereto as referred to in sub-section (3) of section 147;

(m) the details of settlement, the time limit for such settlement and

the procedure thereof under sub-section (2) of section 149;

(n) the extent of exemptions and the modifications under the proviso

to sub-section (3) of section 158;

(o) the other evidence under sub-section (5) of section 158;

(p) such other agency to which the accident information report as

referred to in section 159 may be submitted;

(q) the time limit and fee for furnishing information under section 160;

(r) the higher amount of compensation in respect of death under clause (a) of sub-section (2) of section 161;

(s) a sum to be paid as interim relief as referred to in clause (a) of\ sub-section (4) of section 161;

(t) the procedure for payment of compensation under sub-section (1) of section 164;

(u) such other sources from which funds may be recovered for the scheme as referred to in sub-section (2) of section 164A;

(v) any other source of income that may be credited into the Motor Vehicle Accident Fund under sub-section (1) of section 164B;

(w) the persons to whom compensation may be paid under clause (d) of sub-section (3) of section 164B;

(x) the maximum liability amount under sub-section (4) of section 164B;

(y) the other criteria under clause (c) of sub-section (6) of section 164B;

(z) any other matter which is to be, or may be, prescribed or in respect of which provision is to be made by rules.

Power of State Government to make rules.

164D. (1) The State Government may make rules for the purposes of carrying into effect, the provisions of this Chapter other than the matters specified in section 164C.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for—

(a) the other authority under sub-section (5) of section 147; and (b) any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made by rules.".

Amendment of section 165.

52. In section 165 of the principal Act, in the Explanation, for the words, figures and letter "section 140 and section 163A", the word and figures "section 164" shall be substituted.

53. In section 166 of the principal Act,—

Amendment of section 166.

(i) in sub-section (1), after the proviso, the following proviso shall be inserted, namely:—

"Provided further that where a person accepts compensation under section 164 in accordance with the procedure provided under section 149, hisclaims petition before the Claims Tribunal shall lapse.".

(ii) in sub-section (2), the proviso shall be omitted;

(iii) after sub-section (2), the following sub-section shall be inserted, namely:—

"(3) No application for compensation shall be entertained unless it is made within six months of the occurrence of the accident.".

(iv) in sub-section (4), for the words, brackets and figures "sub- section (6) of section 158", the word and figures "section 159" shall be substituted;

(v) after sub-section (4), the following sub-section shall be inserted,

namely:—

"(5) Notwithstanding anything in this Act or any other law for the time being in force, the right of a person to claim compensation for injury in an accident shall, upon the death of the person injured, survive to his legal representatives, irrespective of whether the cause of death is relatable to or had any nexus with the injury or not.".

54. In section 168 of the principal Act, in sub-section (1),—

Amendment of section 168.

(i) for the word and figures "section 162", the word and figures

"section 163" shall be substituted;

(ii) the proviso shall be omitted.

55. In section 169 of the principal Act, after sub-section (3), the following Amendment of section 169.

sub-section shall be inserted, namely:—

5 of 1908.

"(4) For the purpose of enforcement of its award, the Claims Tribunal shall also have all the powers of a Civil Court in the execution of a decree under the Code of Civil Procedure, 1908, as if the award were a decree for the payment of money passed by such court in a civil suit.".

56. In section 170 of the principal Act, for the word and figures "section Amendment of section 170. 149" the word and figures "section 150" shall be substituted.

57. In section 173 of the principal Act, in sub-section (2), for the words Amendment of section 173.

"ten thousand", the words "one lakh" shall be substituted.

Amendment of section 177.

58. In section 177 of the principal Act, for the words "one hundred rupees" and "three hundred rupees", the words "five hundred rupees" and "one thousand and five hundred rupees" shall respectively be substituted.

59. After section 177 of the principal Act, the following section shall be Insertion of section 177A.

inserted, namely:—

"177A. Whoever contravenes the regulations made under section 118, shall be punishable with fine which shall not be less than five hundred rupees, but may extend to one thousand rupees.".

Penalty for contravention of regulations under section 11 8.

Amendment of section 178.

60. In section 178 of the principal Act, in sub-section (3), in clause (b), for the words "two hundred rupees", the words "five hundred rupees" shall be substituted.

61. In section 179 of the principal Act,—

Amendment of section 179.

(i) in sub-section (1), for the words "five hundred rupees", the words

"two thousand rupees" shall be substituted;

(ii) in sub-section (2), for the words "five hundred rupees", the

words "two thousand rupees" shall be substituted.

Amendment of section 180.

62. In section 180 of the principal Act, for the words "which may extend to one thousand rupees", the words "of five thousand rupees" shall be substituted.

Amendment of section 181.

63. In section 181 of the principal Act, for the words "which may extend to five hundred rupees", the words "of five thousand rupees" shall be substituted.

64. In section 182 of the principal Act,—

Amendment of section 182.

(i) in sub-section (1), for the words "which may extend to five hundred rupees", the words "of ten thousand rupees" shall be substituted;

(ii) in sub-section (2), for the words "one hundred rupees", the words "ten thousand rupees" shall be substituted.

65. For section 182A of the principal Act, the following sections shall be substituted, namely:—

Substitution of new section for section 182 A.

"182A. (1) Whoever, being a manufacturer, importer or dealer of motor vehicles, sells or delivers or alters or offers to sell or deliver or alter, a motor vehicle that is in contravention of the provisions of Chapter VII or the rules and regulations made thereunder, shall be punishable with imprisonment for a term which may extend to one year, or with fine of one lakh rupees per such motor vehicle or with both:

Punishment for offences relating to construction, maintenance, sale and alteration of mo to r vehicles and components.

Provided that no person shall be convicted under this section if he proves that, at the time of sale or delivery or alteration or offer of sale or delivery or alteration of such motor vehicle, he had disclosed to the other party the manner in which such motor vehicle was in contravention of the provisions of Chapter VII or the rules and regulations made thereunder.

(2) Whoever, being a manufacturer of motor vehicles, fails to comply with the provisions of Chapter VII or the rules and regulations made thereunder, shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to one hundred crore rupees or with both.

(3) Whoever, sells or offers to sell, or permits the sale of any component of a motor vehicle which has been notified as a critical safety component by the Central Government and which does not comply with Chapter VII or the rules and regulations made thereunder shall be punishable with imprisonment for a term which may extend to one year or with fine of one lakh rupees per such component or with both.

(4) Whoever, being the owner of a motor vehicle, alters a motor vehicle, including by way of retrofitting of motor vehicle parts, in a manner not permitted under the Act or the rules and regulations made thereunder shall be punishable with imprisonment for a term which may extend to six months, or with fine of five thousand rupees per such alteration or with both.

Punishment for contravention of section 62A.

182B. Whoever contravenes the provisions of section 62A, shall be punishable with fine which shall not be less than five thousand rupees, but may extend to ten thousand rupees.".

66. In section 183 of the principal Act,—

Amendment of section 183.

(i) in sub-section (1),—

(a) after the words "Whoever drives", the words "or causes any person who is employed by him or subjects someone under his control to drive" shall be inserted;

(b) for the words "with fine which extend to four hundred rupees, or, if having been previously convicted of an offence under this sub-section is again convicted of an offence under this sub- section, with fine which may extend to one thousand rupees", the following shall be substituted, namely:—

"in the following manner, namely:—

(i) where such motor vehicle is a light motor vehicle with fine which shall not be less than one thousand rupees but may extend to two thousand rupees;

(ii) where such motor vehicle is a medium goods vehicle or a medium passenger vehicle or a heavy goods vehicle or a heavy passenger vehicle with fine which shall not be less than two thousand rupees, but may extend to four thousand rupees; and

(iii) for the second or any subsequent offence under this sub-section the driving licence of such driver shall be impounded as per the provisions of the sub-section (4) of section 206.".

(ii) sub-section (2) shall be omitted.

(iii) in sub-section (3), after the word "mechanical", the words "or

electronic" shall be inserted.

(iv) in sub-section (4), for the word, brackets and figure "sub-section (2)", the word, brackets and figure "sub-section (1)" shall be substituted.

67. In section 184 of the principal Act,—

Amendment of section 184.

(i) after the words "dangerous to the public", the words "or which

causes a sense of alarm or distress to the occupants of the vehicle, other

road users, and persons near roads," shall be inserted;

(ii) for the words "which may extend to six months or with fine

which may extend to one thousand rupees", the words "which may extend

to one year but shall not be less than six months or with fine which shall

not be less than one thousand rupees but may extend to five thousand

rupees, or with both" shall be substituted;

(iii) for the words "which may extend to two thousand rupees", the

words "of ten thousand rupees" shall be substituted;

(iv) the following Explanation shall be inserted, namely:—

"Explanation.—For the purpose of this section,—

(a) jumping a red light;

(b) violating a stop sign;

(c) use of handheld communications devices while driving;

(d) passing or overtaking other vehicles in a manner contrary

to law;

(e) driving against the authorised flow of traffic; orThis is Digitally Signed Gazette. To verify, visit : https://egazette.chd.gov.in 336 CHD. ADMN. GAZ., OCTOBER 17, 2019 (ASVN 25, 1941 SAKA) (f) driving in any manner that falls far below what would be expected of a competent and careful driver and where it would be obvious to a competent and careful driver that driving in that manner would be dangerous,

shall amount to driving in such manner which is dangerous to the public.".

68. In section 185 of the principal Act,—

Amendment of section 185.

(i) in clause (a), after the words "breath analyser,", the words "or in any other test including a laboratory test," shall be inserted;

(ii) for the words "which may extend to two thousand rupees", the words "of ten thousand rupees" shall be substituted;

(iii) the words " if committed within three years of the commission of the previous similar offence," shall be omitted;

(iv) for the words "which may extend to three thousand rupees", the words "of fifteen thousand rupees" shall be substituted;

(v) for the Explanation, the following Explanation shall be substituted, namely:–

61 of 1985.

'Explanation.—For the purposes of this section, the expression "drug" means any intoxicant other than alcohol, natural or synthetic, or any natural material or any salt, or preparation of such substance or material as may be notified by the Central Government under this Act and includes a narcotic drug and psychotropic substance as defined in clause (xiv) and clause (xxiii) of section 2 of the Narcotic Drugs and Psychotropic Substances Act, 1985.'.

Amendment of section 186.

69. In section 186 in the principal Act, for the words "two hundred rupees" and "five hundred rupees", the words "one thousand rupees" and "two thousand rupees" shall respectively be substituted.

70. In section 187 of the principal Act,—

Amendment of section 187.

(i) for the brackets and letter "(c)" the brackets and letter "(a)" shall be substituted;

(ii) for the words "three months", the words "six months" shall be substituted;

(iii) for the words "which may extend to five hundred rupees", the words "of five thousand rupees" shall be substituted;

(iv) for the words "six months", the words "one year" shall be substituted; and

(v) for the words "which may extend to one thousand rupees", the words "of ten thousand rupees" shall be substituted.

71. In section 189 of the principal Act,—

Amendment of section 189.

(i) for the words "one month", the words "three months" shall be substituted;

(ii) for the words "which may extend to five hundred rupees", the words "of five thousand rupees" shall be substituted;

(iii) after the words "with both", the words, "and for a subsequent offence shall be punishable with imprisonment for a term which may extend to one year, or with fine of ten thousand rupees; or with both." shall be inserted.

72. In section 190 of the principal Act,—

Amendment of section 190.

(i) in sub-section (1),—

(a) for the words "which may extend to two hundred and fifty rupees", the words "of one thousand five hundred rupees" shall be substituted;

(b) for the words "which may extend to one thousand rupees",

the words "of five thousand rupees" shall be substituted; and

(c) after the words "with both", the words "and for a subsequent offence shall be punishable with imprisonment for a term which may extend to six months, or with a fine of ten thousand rupees for bodily injury or damage to property" shall be inserted.

(ii) in sub-section (2),—

(a) for the words "a fine of one thousand rupees", the words "imprisonment for a term which may extend to three months, or with fine which may extend to ten thousand rupees or with both and he shall be disqualified for holding licence for a period of three months" shall be substituted; and

(b) for the words "a fine of two thousand rupees", the words "imprisonment for a term which may extend to six months, or with fine which may extend to ten thousand rupees or with both" shall be substituted;

(iii) in sub-section (3),—

(a) for the words "which may extend to three thousand rupees", the words "with a fine of ten thousand rupees and he shall be disqualified for holding licence for a period of three months" shall be substituted; and

(b) for the words "which may extend to five thousand rupees",

the words "of twenty thousand rupees" shall be substituted.

73. Section 191of the principal Act shall be omitted.

Amendment of section 191.

74. In section 192 of the principal Act, the following Explanation shall Amendment of section 192.

be inserted, namely:—

"Explanation.—Use of a motor vehicle in contravention of the provisions of section 56 shall be deemed to be a contravention of the provisions of section 39 and shall be punishable in the same manner as provided in sub-section (1).".

75. In section 192A of the principal Act, in sub-section (1),—

Amendment of section 192A.

(i) after the words "for the first offence with", the words "imprisonment for a term which may extend to six months and" shall be inserted;

(ii) for the words "which may extend to five thousand rupees but shall not be less than two thousand rupees", the words "of ten thousand rupees" shall be substituted;

(iii) for the words "three months", the words "six months" shall be

substituted;

(iv) for the words "which may extend to ten thousand rupees but shall not be less than five thousand rupees", the words "of ten thousand rupees" shall be substituted.

76. After section 192A of the principal Act, the following section shall be Amendment of section 192B.

inserted, namely:—

Offences relating to registration.

"192B. (1) Whoever, being the owner of a motor vehicle, fails to make an application for registration of such motor vehicle under sub- section (1) of section 41 shall be punishable with fine of five times the annual road tax or one-third of the lifetime tax of the motor vehicle whichever is higher.

(2) Whoever, being a dealer, fails to make an application for the registration of a new motor vehicle under the second proviso to sub- section (1) of section 41 shall be punishable with fine of fifteen times the annual road tax or the lifetime tax of the motor vehicle whichever is higher.

(3) Whoever, being the owner of a motor vehicle, obtains a certificate of registration for such vehicle on the basis of documents which were, or by representation of facts which was, false in any material particular, or the engine number or the chassis number embossed thereon are different from such number entered in the certificate of registration shall be punishable with imprisonment for a term which shall not be less than six months but may extend to one year and with fine equal to ten times the amount of the annual road tax or two-third the lifetime tax of the motor vehicle, whichever is higher.

(4) Whoever, being a dealer, obtains a certificate of registration for such vehicle on the basis of documents which were, or by representation of facts which was, false in any material particular, or the engine number or the chassis number embossed thereon are different from such number entered in the certificate of registration shall be punishable with imprisonment for a term which shall not be less than six months but may extend to one year and with fine equal to ten times the amount of annual road tax or two-third the lifetime tax of the motor vehicle, whichever is higher.".

77. In the principal Act,—

Amendment of section 193.

(A) in section 193, in the marginal heading, for the words "agents and canvassers", the words "agents, canvassers and aggregators" shall be substituted;