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REGISTERED No. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-Section (i)

PUBLISHED BY AUTHORITY

No 218] NEW DELHI, TUESDAY, NOVEMBER i, 1966/KARTIKA- 10, 1888

Separate paging is given to this part in order that it may be filed as a separate compilation

MINISTRY OF FINANCE

(Department of Revenue & Insurance)

NOTIFICATION

New Delhi, the 1st November, 1966

THE DEFENCE OF INDIA (FOURTH AMENDMENT) RULES, 1966

G.S.R, 1616—In exercise 'of the powers conferred by section 3 of the Defence of India Act, 1962 (51 of 1962), the Central Government hereby makes the following rules further to amend the Defence of India Rules, 1962, namely:—

1. Short title and commencement—(1) These rules may be called the Defence ol India (fourth Amendment) Rules, 1966.

(2) These rules, except rules 5, 9 and 10. shall come into force at once and rules 5, 9 and 10 shall come Into force on such date as the Central Government may, by notification, appoint and different dates may be appointed for the different rules,

2. In the Defence of India. Rules, 1962 (hereinafter referred to as the said rules), in rule 126-A,—

(a) after clause (a), the following clauses shall be Inserted, namely:—

'(aa) "article" means any article (other than ornament) In a finished form made of or manufactured from or containing gold and Includes parts of any broken article but does not Include primary gold;

(ab) "artisan" means a person who makes, manufactures, prepares, polishes or repairs ornaments for a dealer licensed under this Part, or melts, processes or converts gold for the purpose of making, manufacturing, preparing or repairing ornaments for such dealer, whether lor cash or for deferred payment, or for commission, remuneration or other valu- able consideration;';

(ao) "commencement of the Defence of India (Fourth Amendment) Rules, 1966," means, in relation to any provision of the said rules, the com- mencement of that provision;

(b) u" clause (g), for the words "unfinished fprm", the words "unfinished or semi-finished form" shall be substituted;

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

'(I) "refinery" means a place where gold is melted, assayed, refined, alloyed or subjected to any other process for the purpose of making primary gold and, Includes a place where gold is assayed at the request of any dealer or other person, whether for the purpose of making primary gold or not, but does not Include a place where gold is melted, alloyed or subjected to any other process by a dealer licensed under this Part or hig artisan or a goldsmith certified under this Part for the purpose of making, manufacturing,.preparing, polishing or repairing ornaments;';

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

'(J) "standard gold bar" means primary gold of such fineness, dimension, weight and description and containing such markings, as¹ may be prescribed.'.

3. In rule 126-B of the said rules,—

(a) for sub-rule (1), the following sub-rule shall be substituted, namely:—

"(1) On and from the commencement of the Defence pf India (Fourth Amendment) Rules, 1966,—

"126-CC. RESTRICTION ON THE MANUFACTURE OF GOLD BY REFINERS.— (1) Notwith-

(2) A refiner shall not receive, melt, assay, alloy, or refine gold or subject it to any other process except under such conditions, limitations and restrictions as may be prescribed.

(3) II a refiner carries on, in the same premises, the business of refining silver or other metal, he shall carry on the business of refining gold in such part of the premises and under such conditions and limitations as may be specified by the Administrator.

(4) Every refiner who makes or manufactures standard gold bars after the commencement of the Defence of India (Fourth Amendment; Rules, 1966, shall put a stamp containing such particulars as may be pres- cribed on each piece of standard gold bar.

(5) No stamp referred to in sub-rule (4) shall be used in stamping any standard gold bar unless such stamp has been approved and regis- tered by the Administrator.

(6) Every person who refines silver shall—•

(a) maintain a record of gold, if any recovered from such refining ;

(b) declare on or before the fifth day of each month in such form as

may be prescribed the amount of gold so recovered;

(c) sell such gold within fifteen days from the date of such declaration

to a refiner licensed under this Part.

(7) The Administrator may impose a penalty of a sum not exceeding rupees one thousand on every refiner who contravenes any provision of this rule or any order or direction made thereunder".

6. In rule 126-D of the said rules,—

(a) for sub-rule (1), the following sub-rule shall be substituted, namely:—

"(1) As from the commencement of the Defence of India (Fourth Amend- • ment) Rules, 1966, no person shall make, advance, grant any loan to any other person on the hypothecation, pledge, mortgage or charge of primary gold.";

(b) after sub-rule (1), the following sub-rule shall be inserted, namely:—

"(1A) As from the commencement of the Defence of India (Fourth Amend- ment) Rules, 1966, no person shall obtain any lpan from any other person on the hypothecation, pledge, mortgage or charge of any article or ornament, unless such article or ornament has been Included in a declaration or further declaration made under rule 126-1 or unless In respect of such article or ornament no such declaration is required to be made under that rule ". •

7. In rule 126-E of the said rules,—

(A) for sub-rule (1A), the following sub-rule shall be substituted, namely:—

"(1A) (a) Notwithstanding anything contained in this Part or in any licence, every refiner holding, at the commencement of the Defence of India (Fourth Amendment) Rules, 1966, a licence to carry on business as such refiner shall make, within fifteen days from such commencement, i^n application to the Administrator for the renewal of the licence held by him;

(b) Notwithstanding anything contained in sub-rule (1), no refiner shall carry on business as such refiner, after the expiry of a period of fifteen days from the commencement of the Defence of India (Fourth Amendment) Rules, 1966. unless he has made an application for the renewal of the licence held by him in accordance with the provisinns of clause fa) of this sub-rule;

(c) No licence granted to a refiner under this rule shall be renewed after the commencement of the Defence of India (Fourth Amendment) Rules, 1966 unless such refiner fulfils the conditions specified' In the second proviso to sub-rule (8);

(d) The Central Government may, if it is satisfied that the public interest so requires, grant, after the commencement of the Defence of India (Fourth Amendment) Rules, lB6fl, a licence to any -person or authority to carry on business as a refiner:

Provided that no such licence shall he granted unless such person or authority fulfils the conditions specified in the second proviso to sub-rule (8).

(B) In sub-rule (8), in the second proviso,—

U) in clause (b), for the words "the demand", the words "the anticipated demand, as estimated by him," shall be substituted;

(11) in clause (d), for the words "commencement of this Part" the words "commencement of the Defence of India (Fourth Amendment) Rules, 196fl" shall be substituted;

(ill) clauses (e) and (f) shall be re-lettered as clauses (h) and

"(e) the security of the premises where the applicant intends to carry on business as refiner, and arrangements for the storage of fold therein before and after refining,

(f) the existence, or the .probability of the existence, of equipment In the refinery for the manufacture of standard gold bars,

(g) the existence of facilities in the refinery for the exercise of supervision and control by the Administrator qr any other person authorised by him in this behalf.".

(C) in sub-rule (10), for the words "a refiner whose application for the issue £ a licence", the words "a refiner whose application for the issue or renewal of licence" shall be substituted,

8. In rule 126-F of the said rules, after sub-rule (1). the following subrule ball be itiBorted, namely:—

"(1A) The Administrator may, if he is opinion that it is necessary In the public interest so to do, require any person, who makes, advances or grants any loan on the hypothecation, pledge, mortgage or charge of any article or ornament, to make to him, In such form and within such time as may be prescribed, a return as to the receipt, delivery, or sale of such article or ornament and as to the persona from whom they were received or, as the case may be, to whom they were delivered or Bold.".

8. In rule 126-H of the said rules,— (a) after sub-rule (1), the following sub-rules shall be inmarted, namely:— "(1A) No person (other th'an a dealer or Teftnor licensed under this Part) shall, after the expiry erf a period of fdx months from the com- mencement of the Defence of India (Fourth Amendment) Rules, 1966, either own or have in hia possession, custody or control any primary gold.

(IB) Every person who owns or have in his possession, custody or control at the commencement of the Defence of India /'Fourth Amendment) Rules, 1966, any primary gold which has been included in a declara- tion or further declaration made under rule 126-1 (as in force immediately before the commencement of the said rules) or in res- pect of which no such declaration is required to be made under that rule, shall dispose of such primary gold in the following man- ner, namely:—

(i) if he, being the nwner, is fTTpSssession, custody or control thereof at such eommenqement, he shall, within a period of six "months from such commencement, wither aell such primary gold to a refiner or dealer licensed under this PHrt or deliver the same to a dealer or goldsmith licensed or certified, as the case may be, under this Part for conversion thereof Into ornaments;

(ii) if he, being the owner, is not in possession, custody or control thereof at such commencement, he shall, within a period of four months from auch commencement either recover (after redemption. _where necessary) the possession, custody or control thereof or autfibrlse.

within the saH period, the person who is in possession, custody or control thereof—

(B) to sell such primary gold to a dealer or refiner licensed under this Part, or

(b) to deliver the same to a dealer or goldsmith licensed or certified, as the case may be, under this Part, for conversion thereof into ornaments;

(iii) if he being the owner, omits or fails to recover the possession, cus- tody or control of such primary gold within a period of four months from the commencement of the Defence of India (Fourth Amend- ment) Rules, 1966, and further omits, neglects or fails to authorise the person who is in possession, custody or control thereof to sell such primary gold or to deliver the game to a dealer or .goldsmith for conversion thereof into ornaments, the person who is in posses- sion, custody or control of such primary gold shall, within a period of two months from the date of expiry of the said period of four months, sell such primary gold to a dealer or refiner licensed under this Part and dispose of the proceeds of such sale In any manner authorised by law.

(1C) Every'sale or delivery of primary gold under sub-rule (IB) shall be made in such manner and under such conditions as may be prescrlbed-

(1D) Every dealer to whom any primary gold is sold or delivered under sub-rule (IB) shall, within a period of one month from such sale or delivery, as the case may be, deliver the same to a refiner for conversion thereof into standard gold bars.

(IE) Every dealer to whom any primary' gold is delivered under sub- rule (IB) for conversion thereof into ornaments, shall, within a period of six months from the date of receipt of such gold, deliver to the person by whom such gold was delivered or his duly authoris- ed agent ornaments which have been made from such primary gold.

( ID Every refiner licensed under this Part, who has any primary gold in his possession, custody or control at the commencement of the Defence of India (Foijrth Amendment) Rules, 1966, shall, within a period of one month from such commencement, convert sucji primary gold into standard gold bars.

(1G) Every dealer licensed under this Partt who has any primary gold in his possession, custody or control at the commencement of the Defence of India (Fourth Amendment) Rules, 1966, shall, within a period of one month from such commencement, deliver such primary gold to a refiner licensed under this Part for conversion thereof into standard gold bars."

(b) in sub-rule (2),— (i) in clause (b), In the proviso, the words "not being ornament" shall be omitted;

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

"(bb) no dealer licensed under this Part shall—

(i) have, at any time, in his possession, custody or control primary gold in any form except in the form of standard gold bars:

Provided that such dealer may keep in his possession, custody or control not more than—

(a) five hundred grammes, if he employs not more than ten artisans, (b) one thousand grammes, if he employs more than ten, but not more

than twenty, artisans,

(c) two thousand grammes, if he. employs more than twenty artisans,

of primary gold in any form other than standard gold bars;

(ii) keep in the premises where he carries on business as such dealer, any primary gold, article or ornament which is not a part of his stock in trade or held by him in his capacity as a dealer and every primary gold, article or ornament found in such premises shall be deemed to be a part of the stock in trade of such dealer;";

(lii) in clause (d), after the proviso, the following provisos shall be inserted, namely:—

"Provided further that no person shall, after the expiry of a period of six months from the commencement of the Defence of India (Fourth Amendment) Rules, 1986, acquire any primary gold by suc- cession, intestate or testamentary:

Provided further that if any person acquires any primary gold by suc- cession, intestate or testamentary, within a period of six month* from the commencement of the Defence of India (Fourth Amend- ment) Rules, 1966, he shall, within a period of two months from the date of such acquisition or six months from such commence- ment, whichever is later, either sell such primary gold to a dealer or refiner licensed under this Part or deliver the same to a dealer or goldsmith licensed or certified, as the case may be, under thi* Part, for conversion thereof into ornaments.";

(c) alter sub-rule (3), the following sub-rules shall be inserted, namely:—

"(4) Nothing in this rule shall apply to any primary gold, which forma part of any structure or any other construction or appendage within the precincts of a temple, mutt, church, mosque, gurdwara or any other place of public religious worship.

(5) Every public religious institution owning any primary gold [other than any gold referred to in sub-rule (4)] at tne commencement of the Defence of India (Fourth Amendment) Rules, 1966, shall, within a period of six months from such commencement, either seH such primary gold to a refiner or dealer licensed under this Part or deliver the same to a dealer or goldsmith licensed or certified, aa the case may be, under this Part for conversion thereof into orna- ments for the deity or idol or, with the previous permission of the Administrator, into such article as may be necessary or required f"r the purpose of worship in such institution.

(6) Notwithstanding anything contained in this Part, a public religious

institution may receive any gold as offerings:

Provided that—

(a) where any article has been received bv such institution, such article

may be—

(i) kept by such institution for its use, or (ii) sold to a dealer or refiner licensed under this Part, or (iii) converted, with the previous permission of the Administrator, into ornaments for the deity or idol or Into any article which may be necessary or required for worship in ^the institution or for use in or decoration of the structure or other appendage of the institution,

(b) where any primary gold has been received by such institution, suoh

primary gold may be—

(i) converted, with the previous permission of the Administrator, into ornaments for the deity or idol, or article which may be necessary or required for worship In the institution or for use In or decoration of the structure or other appendage of the institution, or

(ii) sold to such person and under such conditions, restrictions and limitations as may be prescribed.

(7) Every religious institution shall submit in such form and In such manner as may be prescribed, to the Administrator monthly accounts of the primary gold received by it as- offerings.

(8) The person in charge of the management of any such Institution shall be responsible for anything done or omitted to be done by such institution.

10. In rule 126-HH of the said rules,— (a) for sub-rules (1) and (2), the following sub-rules shall be substituted, namely:—

"(1) Notwithstanding anything contained In rule 126-H, a dealer who is not required by sub-rule (3) or sub-rule (4) of rule 126-E to make any application • for the issue of a licence under that rule and has not obtained any licence in pursuance of an application for the isaue of a licence under that rule and has not obtained any licence in pursu- ance of an application made by him under sub-rule (6) of that rule may, if he was carrying on business as a goldsmith for more than a year immediately before the commencement of this Part, buy¹ standard gold bars from a dealer or refiner licensed under this Put, or accept from any person any article or ornament, for the purpose of making, manufacturing, preparing or repairing, and may make, manufacture or prepare new orjnament or ornaments, or repair old ornaments, from that gold, article or ornament or all or any of them and may repair or polish any aiciile or ornament:

Provided that no such dealer shall have, at any time, in his possession, custody or control any quantity of standard gold bar in excess of one hundred grammes.

(1A) Notwithstanding anything contained in sub-rule (1), a certified goldsmith may accept primary gold delivered to him under the proviso to rule (IB) of rule 126-H and may convert the same Into ornament or ornaments;

(IB) As from the commencement of the Defence of India (Fourth Amend- ment) Rules, 1966, no such dealer shall make, manufacture, pre- pare, repair or polish any ornament or buy standard gold bar or accept any ornament or buy standard gold bar or accept any article or ornament for the purpose of making, manufacturing, preparing, polishing or repairing any ornament, unless—

(a) he holds at such commencement a valid certificate recognising

him as a goldsmith, or

(b) he has, before such commencement, made an application to the Administrator in the prescribed form and on payment of a fee of rupee one for the issue of a certificate recognising him as a goldsmith:

Provided that no such dealer shall carry on business as a goldsmith after he is informed by the Administrator, by notice in writing, that his application for the issue of a certificate has been rejected, or

(c) he has, after such commencement, made an application to the Administrator in the prescribed form and on payment of a lee of rupee one for the issue of a certificate recognising him as a goldsmith and has been granted such certificate.";

(b) for sub-rule (2), the following sub-rule shall be substituted, namely:—

"(2) Notwithstanding anything contained In sub-rule (1), where any dealer, referred to in sub-rule (1), has received any loan or other rehabilitation benefit from the Government, he shall not' be eligible for obtaining a certificate recognising him as a goldsmith":

Provided that a dealer who has received a loan from the Government shall become eligible for obtaining a certificate recognising him as a gold- smith if he repays the loan (otherwise than in accordance with the terms and conditions thereof) within a period of three months from the commencement of the Defence of India (Fourth Amendment) Rules, 1966. or within such further time as the Administrator may on sufficient cause being shown, allow.";

(c) (i) in sub-rule (3), for the word, brackets and figure "sub-rule (2)" the word, brackets and figure "sub-rule (IB)" shall be substituted; ' ' (il) to sub-rule (3), the following proviso shall be added, namely:—

"Provided that no such certificate shall be granted after the commence- ment of the Defence of India (Fourth Amendment) Rules, 1966. to

any person unless such person—

(a) had been carrying on business as a goldsmith for more than a year

immediately before the commencement of this Part, or

(b) is the son or grandson of a person referred to in clause (a) or Is a member of the family of such person and had been assisting such person in his work as a goldsmith for not less than one year Immediately before the commencement of this Part, or

(c) is a repatriate from any country and had been earning his livelihood

aB a goldsmith before such repatriation, or

(d) belongs to a category or class to which, in the opinion of the Ad- ministrator, such certificate, may be granted in the public interest."; (d) for sub-rule (8), the following sub-rule shall be substituted, namely:—

"(8) Notwithstanding anything contained in rule 126-B, a certified gold- smith may, for the purpose of making ornaments, make or manu- facture primary gold (other than standard gold bar) by melting, processing or converting any article or ornament:

Provided that a certified goldsmith shall not, at any time, have in his possession, custody or control any quantity of primary sold, Includ- ing standard gold bars, in excess of two hundred grammes."; (e) in sub-rule (9), the words "having gold of a purity exceeding 14 carats",

wherever they occur, shall be omitted.

ir After rule 126-HH, the following rule shall be inserted, namely:—

"I26-HHH. Artisans.—(1) A dealer licensed under this Part may employ, whether on a whole-time or part-time basis or on payment of daily wages, or other remuneration, an artisan—

(a) who was a dealer or goldsmith or was employed by a dealer for a period of not less than one year Immediately preceding the commencement of this Part or at any time after such commence- ment but before the commencement of the Defence of India (Fourth Amendment) Rules, 1966, or

(b) who is otherwise eligible to obtain a certificate as a goldsmith, as an

aide for carrying on his business as such dealer or refiner:

Provided that no such artisan shall be employed by such dealer unless the name of such artisan has been entered in the Register of Artisans to be maintained by such dealer.

(2) A certified goldsmith who accepts employment as an artisan shall, before commencing work as such artisan, surrender his certificate to the Administrator.

(3) Every dealer shall grant identity cards, in such form as may be prescribed, to every artisan whose name is entered by him in the Register of Artisans showing that the name of such artisan has been entered in that register and send such identity cards, within one month from the date of issue thereof, to the Administrator for his approval and countersignature.

<4) On receipt of the identity card of an artisan under this rule the Ad- ministrator may, after making such inquiry, If any, as he may con- sider necessary, either countersign the identity card or, by an order in writing, refuse to do so.

(5) No artisan, the countersignature of whose identity card has been re- fused by the Administrator or whose identity card has been cancelled, shall be employed, after such refusal or cancellation, by any dealer.

(16) An artisan whose identity card has been countersigned by the Ad- ministrator shall produce the same to the Administrator or any officer authorised by him in this behalf, on demand.

(.7) If any dealer engages an artisan, who already holds an identity card duly countersigned by the Administrator, such dealer shall enter the name of such artisan in the Register of Artisuns maintained by him and shall within seven days thereof forward the Identity card of such artisan to the Administrator for an endorsement thereon.