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REGISTERED No. D-(D)-72

The Gazette of India

EXTRAORDINARY

PART II—Section 3—Sub-section (i)

PUBLISHED BY AUTHORITY

No. x] NEW DELHI, THURSDAY, JANUARY 1, 1976/PAUSA 11, 1897

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

MINISTRY OF COMMERCE

(Tobacco Industry Development Control)

NOTIFICATION

New Delhi, the 1st January 1976

G.S.R. 1(E).—In exercise of the powers conferred by section 32 of the Tobacco Board Act, 1975 (4 of 1975), the Central Government hereby makes the following rules, namely:—

CHAPTER I

PRELIMINARY

1. Short title and commencement.—(1) Those rules may be called the Tobacco Board Rules, 1976.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions.—In these rules, unless the context otherwise requires,—

(a) "Act" means the Tobacco Board Act, 1975 (4 of 1975);

(b) "Board" means the Tobacco Board established under section 4; (c) the terms "Chairman", "curing", "dealer", "Executive Director", "export"; "member", "registered" and "registered grower" shall have the meanings respectively assigned to them in the Act;

( 1 )

(d) "Committee" means any of the Committees appointed by the Board appointed under Section 7;

(e) "Secretary" means the Secretary of the Board appointed under Section 6:

(f) "Section" mean* a section of the Act; (g) "Form" means a Form appended to these rules;

CHAPTER n

THE BOARD AND ITS COMMITTEES

3. Manner of filling vacancies among members.—(1) The Central Government may make such consultations as it thinks fit before appointing members to be appointed under the provisions contained ini clauses (c), (d) and (e) of sub-section (4) of section 4.

(.2) When a member of the Board dies or resigns or is deemed to have resigned or is removed from office or becomes incapable of acting, the Central Government may by notification in the Official Oazette appoint a person to fill that vacancy:

Provided that whore the vacancy is one which was held by the outgoing member by virtue of bis memberajup of Parliament under clause (b) of sub-section (4) of section 4, the appointment of the next incumbent of that vacancy shall be on the basis of fresh election by that Houae- of Parliament to which the outgoing member belonged.

4. Term of Office of membtts.-O) A member appointed under clauses (a) (b), W and

Provided that a member shall be eligible for re appointment:

Provided further that such member shall cease to be a member if he ceases (i) to be a member of the House of Parliament by which be was elected; or (ii) to represent the category from which he was appointed.

(2) A person appointed to fill a casual vacancy under sub-rule (2) of rule 3 shall holdf office so long as the member whoso place he. fills would have been entitled to holr¹' office, if the vacancy had not occurred.

5. Resignation.—0) A member may resign his office by writing under his ham addressed to the Chairman. '

(2) The office of a member shall fall vacant from the date on which his resignation is accepted or on the exjpiry of thirty daysi from the date of receipt of intimation resignation, which ever ia earlier.

(3) The power to accept the resignation of a member shall vest in the Chairman, who- on accepting the resignation, shall report that fact to the Board at Jls next meeting.

6. Removal from the Board—The Central Government mav remove any membe from office—

'

(a) if he is of unsound mind and stands so declared by a competent court; or (b) if he is an undischarged insolvent; or

(c) if he is convicted of an offence involving moral turpitude; or

(d) if without the leave of the Chairman, he fails to attend three consecutive meetinj3 of the Board.

7. Absence from Ind;a.—(1) Before a member of the Board goes out of India—

(a) he shall intimate the Secretary the date of his departure from and the date of his expected return to India; and

(b) if he intends to be absent from India for a longer period than six months he shall tender his resignation.

(2)I If a member leaves India without observing the provisions of sub-rule (1) he "nall be deemed to have resigned with effect from the date of his departure from India

SEC. 3(0] *E GAZETTE OF EXTRAORDlNAlti 3

8. Membership Roll.—The Secretary shall keep a record of the names of members and their addresses.

_ 9. Change of Address.—A member shall keep the Secretary informed of any change in his address and if he fails to inform the change of address, the address in the official records shall for all purposes be deemed to be his correct address.

10. VJce-Chafrman,—(1) The Board shall elect, in each year, from amongst its .members, a Vice-chairman for a period of twelve months commencing from the date of .his election, or if the election is held before the expiry of the term of office of an exist- ing Vice-Chairman, from the date on which such Vice-Chairman would vacate office.

(2) H a casual vacancy occurs in the office of the Vice-Chairman on account of resignation or his ceasing to be a member or otherwise, the Board shall, at its next meet- ing, elect another member to be the Vice-Chairman who shall hold office for the un- cxpired portion of the term of office of the Vice-Chairman elected under sub-rule (1).

11. Committees of the Board.—(1) The Committees appointed by ttie Board under -section 7, may be of either advisory or executive character and shall exercise such powers and discharge such functions of the Board as may be decided by the Board in conformity with the provisions contained in the Act and these rules and also the directions, if any, that may be given to the Board by the Central Government.

(2) All important decisions taken by the Committees shall be placed before the Board Tat ils next meeting for its information and lor such review as ^t may consider necessary.

CHAPTER III

PROCEDURE FOR MEETINGS OF THE BOARD

12. Meetings of tlie Board-—There shall be not less than two ordinary meetings of the Board in a year on such dates and at such places as the Chairman may think fit and the interval between any two ordinary meetings shall not. in any case, be longer than eight rmonths.

13. Power to Call Meetings.—(1) The Chairman may, at 'any time, call a meeting of the Board and may do so if a requisition for a meeting is presented to him in writing by at least seven members,

(2) The Chairman may require any officer of the Boird, besides the Executive Director or invite any person to 'attend any meeting of t'ae Board, but such officer or person shall not be entitled to vote.

(3) At least fourteen clear days before any meeting of the Board, notice of the time and place of the intended meeting signed by the Secretary shall be sent to the Central •Government and left at or posted to the address of every member;

Provided that in case of urgency, a special meeting of the Board may be summoned at any time by the Chairman, who shall inform, in advance, the Central Government and the membcis, of the subject matter for discussion and the reasons for which he considers "the matter urgent.

(4) Notwithstanding anything contained in this rule, the Centtal Government may, at any time, call a meeting of the Board.

14. Quorum.—(1) No business shall be transacted it a meeting of the Board unless "there arc present at such meeting at least seven members.

(2) If at any tim- the number of members present at 'a meeting is less than the number •of members specified in sub-rule (1), the member presiding shall adjourn (he meeting to a date not later than three days from the date of such meeting after informing the members of the date, lime and place of the adjourned meeting and it shall thereupon be Tawful for the member presiding at such adjourned meeting to dispose of the business intended to be transacted at the original mcctine, irrespective of the numb-r of members present.

15. Chairman of mectlnes. - The Chairman ihall preside over e v iy meeting of the Board 'and in his absence the Vice-Chnirman shall prc-sidc" Ff both the Chairman and the Vic--Chairman are absent, the members present at the meeting shall elect one from amongst themselves to preside over such meeting.

16. Agenda (1) The Chairman shall cause to be prepared and circulated to the Centfal Government and among the members, at least ten days before a meeting ol the Board, a list of business to be transacted at such meeting.

(2) No business not included in the agenda, shall be transacted at a meeting of the Board without the permission of the Chairman.

17. Voting.—(1) Every question brought before a meeting of the Board shall be decid- ed by a majority of the members present and voting.

<2) In the case of an equality of votes, the Chairman, the Viee-Chairman or the mem- ber presiding over such meeting shall have a second or casting vote.

18. Transaction of business by circulation.—(1) Any business which is to be transacted, by the Board may, it the Chairman so directs, be referred to members (other than mem- bers who are not in India) by circulation of papers, and copies of papers so circulated shall also be sent to the Central Government.

(2) Any proposal or resolution circulated under sub-rule (1) and approved by the majority of the members who have recorded their views in writing shall be as effectual and binding as if such proposal or resolution was decided by the majority of the members at a meeting of the Board:

Provided thai at least six members of the Board have recorded fheir views on the pro- posal or resolution;

Provided further that when a proposal or resolution is referred to the members by circulation, any five members may require that the proposal or resolution ba referred to members at a meeting, and thereupon such reference shall be made to members at a mooting of the Board.

(3) Where any business is referred to members under sub-rule (1), a period of not less than ten clear days shall be allowed for the receipt of replies from members and such period shall be reckoned from the date on which the notice of business is issued.

(4) If a proposal or resolution is circulated under this rule, the result of the circulation shall be communicated to all the members and to the Central Government.

(5) All decisions on questions arrived at by circulation of papers shall be placed at the next meeting of the Board for record,

19. Record of Business.—(1) A record of items of business transacted by the Board¹ shall be maintained by the Secretary and copies of such record shall be forwarded to trie- Central Government.

(2) The record of business transacted at every meeting of the Board shall be signed by the Chairman, the Vice Chairman or, as the case may be, the member presiding at suchi meeting.

(3) When any business- is transacted by circulation of papers, a record of the business.

so transacted shall be signed by the Chairman,

20. Review.—(1) The Central Government may, for reasons to be recorded in writing,, review any decision of the Board and pass such order in the matter as it thinks fit.

(2) A copy of every order passetd under sub-rule (1) shall be sent to the Board by the- Central Government.

CHAPTER IV

FINANCE, BUDGET AND ACCOUNTS OF THE BOARD

21. Budfiet Estimates—(1) The Board shall in each year, prepare budget estimates for the ensuing year and revised estimates for the current year and shall submit them for the sanction of the Central Government on or before such dates as may be fixed by tno- Govemment. The revised budget when sanctioned shall supersede the original budget and shall be deemed to be the sanctioned budget for the year,

(2) No expenditure shall be incurred until the budget is sanctioned by the Centra* Government and the expenditure has received the sanction of the competent authorities.

(3) The budget shall be prepared in accordance with inch instructions as may be issued from time to time and be m such form as the Central Government may direct. It shall include a statement of—

(i) The estimated opening balance;

(ii) the estimated receipts under tVie different he'ads referred to in sub-section (1) of of Seotion 17;

(iii) the estimated expenditure classified under the following heads and sub-heads or such other heads and sub-heads us the Central Government may from time to time direct;—

Heads : (a) Administration;

'(b) Development of Tobacco Production and Curing;

(k) Propaganda and publicity; (1) Ofncrs.

Sub-heads :

(i) Pay of officers; (ii) Pay of establishment;

(iii) Allowances, honoi'aria rfnd the like; and (iv) Other charges, contingencies and the like.

1.4) Supplementary estimates of. expenditure, if any, shall be submitted for the sanction of the Central Government in such form and on such dates as may be directed by it in ihis behalf.

22. Accounts of the Board.—(1) The Board shall maintain accounts of all receipts and ^expenditure relating to each year.

(2) The expenditure incinred in a particular yo.ir shall be shown under separate heads and sub-heads.

(3) The opening balance, if any, shall be stated us such separately.

(4) Tne closing balance of the year shall be shown at the foot of the accounts on the expenditiue side.

(5) An annual proforma account on accrual basis shall also be picpared for bringing rtut assets and liabilities as well ns the details of reserves and investments.

23. Deposit of funds "f Board in banks Hnd investment of such funds,—(.1) Money required for the current expenditure of the Board with the exception of the petty cash, and surplus moneys shall be kept in the Petsonal Ledger Account in the District Treasury OT Sub-treasury or in current account with t'lic State Bank of India or any of ita subsidiaries.

(2) Any funds not required for current expenditure may be placed in deposit account with the Central Government in the Public Account:

Provided that the funds in the Board's pension fund or provident fund, not required for current expenditure, may be invested in Trustee Securities or Ten-Year Treasury Savings Deposit Certificates or National Dfcfence Certificates to tho extent permissible or in fixed deposit with the State Bonk of India or any of its subsidiaries or, if approved by the Central Government, with any other scheduled bank.

(3) Payment by or on behalf of-the Board shall be made in cash or by cheque drawn .igainst the current account of the Board.

CliAPVEft V

POWERS OF THE BOARD, THE CHAIRMAN T HE EXECUTIVE DIRECTOR AND- l tin oECKciTARY

r ""d *> ™"te "fl Losses.—{[) Subject to the provision* *t th⁴' A ^ T V, *° l n7r e xPe n d l t u r o of the Act these rules and the rules made by the Central Government relating to revenue and expenditure for the time being in force, the Board may inc^r suTexpenditure as it may think fit or Hems provided for, and within tho amounts sanctioned by the Centra! uovcrnm^at, in the budget.

(2) The Board may write off losses or waive recoveries upto ten thousand rupees in any single case.

*

(3) Re-appropriations between sub-heads under heads of expenditure may be made by the Board,

(4) The Board shall not incur expenditure outside India in excess of fifteen thousand rupees on any single item without the previous sanction of the Central Government.

25. Borrowing powers.—The Board may, with the previous sanction of the Central Government borrow, on the security ot the Tobacco Fund or any of its other assets, for meeting its expenses or for carrying out the measures referred to in section 8.

26. Contracts.—(1) The 'Board may enter into any contracts for the discharge of its- functions under the Act:

Provided that—

(a) every contract other than a contract for, or the actual purchase or sale of, Virginia tobacco under the provisions of rule 32, which extends over a period of more than three years or involves an expenditure in excess of rupees one lakh; and

(b) every agreement or contract for technical collaboration or consultation service* with firms or foreign Governments shall reqfuirc the previous sanction of the Central Government.

(2) Contracts shall not be binding on the Board unless they are executed by tho Chairman or any officer authorised by the Board with the previous approval of the appropriate authority concerned.

(3) Neither the Chairman nor any officer of the Board not any member thereof shall, be personally liable under any assurances of contracts made by the Board and anv liability arising under such assurances or contracts shall be discharged from the moneys at the disposal of the Board.

27. Financial transactions in general—Except as otherwise provided iru these rules, the. provisions of the Central Treasury Rules, the Delegation of Financial Power Rules, 1958, and the General Financial Rules, 1962 of tho Central Government, for the time being in force, shall, subject to such modifications or adaptations as may be made by the Board therein with the previous approval of the Central Government, apply to all financial transactions of the Board.

28. Powers and duties of ChiJnmr-' —Ml The Chairman shall bo responsible for the proper functioning of the Board and for the discharge of its functions under the Act and these rules.

(2) The Chairman shall have the following powers, namely:—

(i) to print leave to officers and employees of the Board including the Executive Director and the Secretary;

(ii) to exercise administrative control over all departments and officers of the Board including the Executive Director and the Secretary;

(iii) to call for documents and records and to inspect or cause to be inspected any land or premises including places of business or of sorting, curing, process- ing, grading, manufacture, packing, storage or auction, ins required under, the Act or 'these rules or as may be considered necessary for discharcing- properly any of the functions of the Board;

(iv) to sanction expenditure for contingencies, supplies and services and purchaso- of article required for the working of the office of the Board, and

fv) to carry out the measures referred to in Section 8.

(3) The Chairman shall have power to require the Board or any Committee thereof fo defer taking action in pursuance of any decision taken by the Board or the Committee, as the case may be, pending a reference to the Central Government on such decision.

(4) Where a matter has to bo disposed of by tho Board or a Committee and a decision in respect of that matter cannot wait till a meeting of the Board or the Committee, as the case may be, is held or till tho circulation of the resolution relating to that matter among the members of the Board or Committee, as the case may be, the Chairman may take the decision himself.

(5) Where the Chairman takes a decision under sub-rule (4), he shall submit tho samo for ratification to the Board or tho Committee, as the case may be, at its next meeting:

Provided that where the Board or the Committee modifies or cancels the action taken by the Chairman, such modification or cancellation shall be without prejudice to tho validity of any action taken before such modification or cancellation.

29. Powers and duties of Executive Director.—(1) The Executive Director shall bo responsible, subject to the overall responsibility of the Chairman, for implementing the Board's policies in regard to regulation of production and internal .marketing of Virginia tobacco, ensuring a fair and remunerative price to the growers, purchasing of Virginia tobacco from the growers when considered necessary by the Board, the disposal of tha tobacco so purchased, promoting the grading of Virginia tobacco-, at the level of growers, sponsoring, assisting, co-o¹ dinating or encouraging scientific, technological and economic research for the promotion of the tobacco industry. It shall also be his responsibility to ensure that in carrying out these functions, the. Board works in close liaison with Union agencies, institutions and authorities such as the Directorate of Tobacco Develop- ment, the Directorate of Marketing and Inspection, the Tndian Council of Agricultural Research etc., which may be concerned with these aspects of the tobacco industry, ana avoids duplication of effort.

(2) Besides carrying out, such other functions as may be assigned to him by tho Chairman, or such directions as the Chairman may give to him in regard to the perfor- mance of the functions stated in sub-rule (1), the Executive Director shall present to tho Board such r>criodical reports in respect of tho work under his charge, as may b" specified by the Chairman.

30. Powers and duties of Secretary.—(1) The Secretary shall be responsible for the implementation of the decisions arrived at by the Board or by its Committees and the discharge of the duties imposed on him under the Act or by these rules.

(2) Subject to such powers and duties as may be delegated by the Chairman, the Secretary shall—

(a) cause all important papers and matters presented to the Board as early aa

practicable;

(b) issue directions as to the method of carrying out the decisions of the Board;

(c) grant receipts on behalf of the Board for all moneys received under the Act; (d) maintain or cause to bo maintained an account of the receipts and expenditure of the Board and also the various registers that may be prescribed for the Board under the Act or these rules;

(e) receive applications from growers, curers, exporters, packers, auctioneers, dealers, owncrs/lessers of auction platforms, for registration with the Board under section 10 to 13, examine them in accordance with the policy of Board, the provisions, of the Act and these rules and issuing necessary certificates of registration or otherwise communicating the decision on such applications to the applicants;

(f) receive appeals written or oral, against the decisions of the Board and taking appropriate action thereon in accordance with the provisions contained in the Act, these rules and the guidelines that may be laid dpwn by the Board or the Chairman;

(g) present an annual draft report on the working of tho Board to the Board for approval and submit the report in the form approved by the Board to the Central Government not later than the dates specified from time to time

in this behalf by the Centre! Government for being laid before each HoiBb of Parliament;

(h) assist the Chairman in all administrative matters and in the discharge of such other functions as the Chairman may desire.

CHAPTER VI

MINIMUM EXPORT PRICES AND PURCHASE, SALE AND EXPORT OF

VIRGINIA TOBACCO

31. Minimum Export Prices.—(1) By 31st December every year, the Board shall recommend for the consideration of the Central Government the minimum price* which in its view should bo fixed for the next year for the export of Virginia tobacco as well as -for such other varieties of tobacco which have an export prospect.

(2) In recommending the said minimum export prices, besides such other matterss as may be considered relevant, th" Board shall ^ake into consideration the following matters, namely:—

(i) surplus available from the previous crops and the size of the new crop; 01) total assessed demand for home consumption and for exports;

and the trend of prices during the last three months;

(v) desirability of ensuring a fair and remunerative return *" the growers consistent with the need to make the minimum export prices attractive enough to taKe care of the entire exportable surplus.

(3) The recommendations of the Board shall be accompamed by a d e m ^ a n a l y s is of the data taken into consideration in arriving at those recommendations.indicating also manner in which the said recommended prices have been woricea om.

(4) If and when, hi the opinion of the Board u situation develops warranting the revision of the said minimum export prices during the course of the year, or when so S e ^ by thTSraT^ovcrnmenTthe Bom-d shall make special ^ ^ ^ f ^ V f er ^d Government for its consideration, over and above the annual recommendation referred to in sub-rule (1).

32 Pnrchase of Vtautnte Tobacco.—(.1) The Board may, and if bo. directed by the Central Government shall, purchase Virginia tobacco from the growers of such tobacco to India when the Board or as the case may be, the Central Government is satisfied that such a step is necessary or expedient to protect the interests of the growers.

(ft The Tobacco so purchased by the Board shall be disposed of by jt in India or abroad as and when considered appropriate and in such manner as the Board may thmk fit or as may be directed by the Central Government.

(3) The Board shall make maximum possible utilisation of the agency of the Slate Trading Corporation of India Ltd. in exporting the Virginia tobacco purchased by the Board.

(4) The Board shall keep the Central Government fully informed of the tobacco purchase operations that may be undertaken by it and shall comply with such instructions, guidelines or restrictiona etc. that may be issued or imposed by the. Central Government ik regard to such purchases and also the sales, including exports, to be made out of the stocks so purchased by the Board.

(5) The prices at which Virginia tobacco shaU be purchased or sold by the Board HhaJl be such aTconflidered appropriate by it subject to such guidelines, if any, which the S rd G o v e X e T m ay loy down specifically for the purpose from time to time through directions to the Board.

[No. F.l8(9)/75-EP(Agri.L]

V. C. PANDE, It. Secy.

PRINTED BY THE GENERAL MANAGER. GOVERNMENT Of INDIA PRESS, MINTO ROAD., NEW DELHI AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI, 197G