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MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 11

th August, 2016/Shravana 20, 1938 (Saka)

The following Act of Parliament received the assent of the President on the 10

th August, 2016, and is hereby published for

general information:-

THE BENAMI TRANSACTIONS (PROHIBITION) (AMENDMENT) ACT, 2016

No.43 OF 2016

[10^th August, 2016]

An Act further to amend the Benami Transactions (Prohibition) Act, 1988.

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:-

1. Short title and commencement. (1) This Act may be called the Benami Transactions (Prohibition) Amendment Act, 2016.

(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.

2. Insertion of new heading before section 1. In the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) (hereinafter

referred to as the principal Act), before section 1, the following heading shall be inserted, namely:-

¸ÀA¥ÀÄl 152

Volume 152

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Bengaluru, Thursday, March 2, 2017 (Phalguna 11, Shaka Varsha 1938)

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Issue 9

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"CHAPTER I

PRELIMINARY."

3. Amendment of section 1. In section 1 of the principal Act, for sub-section (1), the following sub-section shall be substituted,

namely:-

"(1) This Act may be called the Prohibition of Benami Property Transactions Act, 1988." (45 of 1988)

4. Substitution of new section for section 2. For section 2 of the principal Act, the following section shall be substituted,

namely:-

'2. Definitions. In this Act, unless the context otherwise requires,-

(1) "Adjudicating Authority" means the Adjudicating Authority appointed under section 7;

(2) "Administrator" means an Income-tax Officer as defined in clause (25) of section 2 of the Income-tax Act, 1961; (43 of 1961)

(3) "Appellate Tribunal" means the Appellate Tribunal established under section 30;

(4) "Approving Authority" means an Additional Commissioner or a Joint Commissioner as defined in clauses (1 C) and (28C)

respectively of section 2 of the Income-tax Act, 1961; (43 of 1961)

(5) "attachment" means the prohibition of transfer, conversion, disposition or movement of property, by an order issued under

this Act;

(6) "authority" means an authority referred to in sub-section (1) of section 18;

(7) "banking company" means a company to which the provisions of the Banking Regulation Act, 1949, applies and includes any

bank or banking institution referred to in section 51 of that Act; (10 of 1949)

(8) "benami property" means any property which is the subject matter of a benami transaction and also includes the proceeds

from such property;

(9) "benami transaction" means,-

(A) a transaction or an arrangement-

(a)

where a property is transferred to, or is held by, a person, and the consideration for such property has been

provided, or paid by, another person; and

(b)

the property is held for the immediate or future benefit, direct or indirect, of the person who has provided the

consideration,

except when the property is held by-

(i)

a Karta, or a member of a Hindu undivided family, as the case may be, and the property is held for his

benefit or benefit of other members in the family and the consideration for such property has been provided

or paid out of the known sources of the Hindu undivided family;

(ii)

a person standing in a fiduciary capacity for the benefit of another person towards whom he stands in such

capacity and includes a trustee, executor, partner, director of a company, a depository or a participant as an

agent of a depository under the Depositories Act, 1996 (22 of 1996) and any other person as may be

notified by the Central Government for this purpose;

(iii)

any person being an individual in the name of his spouse or in the name of any child of such individual and

the consideration for such property has been provided or paid out of the known sources of the individual;

(iv)

any person in the name of his brother or sister or lineal ascendant or descendant, where the names of

brother or sister or lineal ascendant or descendant and the individual appear as joint-owners in any

document, and the consideration for such property has been provided or paid out of the known sources of

the individual; or

(B) a transaction or an arrangement in respect of a property carried out or made in a fictitious name; or

knowledge of, such ownership;

(D) a transaction or an arrangement in respect of a property where the person providing the consideration is not

traceable or is fictitious;

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Explanation.-For the removal of doubts, it is hereby declared that benami transaction shall not include any transaction involving

the allowing of possession of any property to be taken or retained in part performance of a contract referred to in section 53A of the

Transfer of Property Act, 1882, (4 of 1882) if, under any law for the time being in force,-

(i)

consideration for such property has been provided by the person to whom possession of property has been allowed

but the person who has granted possession thereof continues to hold ownership of such property;

(ii)

stamp duty on such transaction or arrangement has been paid; and

(iii)

the contract has been registered.

(10) "benamidar" means a person or a fictitious person, as the case may be, in whose name the benami property is transferred

or held and includes a person who lends his name;

(11) "Bench" means a Bench of the Adjudicating Authority or the Appellate Tribunal, as the case may be;

(12) "beneficial owner" means a person, whether his identity is known or not, for whose benefit the benami property is held by a

benamidar;

(13) "Board" means the Central Board of Direct Taxes constituted under the Central Boards of Revenue Act, 1963; (54 of 1963)

(14) "director" shall have the same meaning as assigned to it in clause (34) of section 2 of the Companies Act, 2013; (18 of

2013)

(15) "executor" shall have the same meaning as assigned to it in clause (c) of section 2 of the Indian Succession Act, 1925; (39

of 1925)

(16) "fair market value", in relation to a property, means-

(i)

the price that the property would ordinarily fetch on sale in the open market on the date of the transaction; and

(ii)

where the price referred to in sub-clause (i) is not ascertainable, such price as may be determined in accordance

with such manner as may be prescribed;

(17) "firm" shall have the same meaning as assigned to it in section 4 of the Indian Partnership Act, 1932 (9 of 1932) and shall

include a limited liability partnership as defined in the Limited Liability Partnership Act, 2008; (6 of 2009)

(18) "High Court" means-

(i)

the High Court within the jurisdiction of which the aggrieved party ordinarily resides or carries on business or

personally works for gain; and

(ii)

where the Government is the aggrieved party, the High Court within the jurisdiction of which the respondent, or in a

case where there are more than one respondent, any of the respondents, ordinarily resides or carries on business

or personally works for gain;

(19) "Initiating Officer" means an Assistant Commissioner or a Deputy Commissioner as defined in clauses (9A) and (19A)

respectively of section 2 of the Income-tax Act, 1961; (43 of 1961)

(20) "Member" means the Chairperson or the Member of the Adjudicating Authority or the Appellate Tribunal, as the case may

be;

(21) "notification" means a notification published in the Official Gazette and the expression "notified" shall be construed

accordingly;

(22) "partner" shall have the same meaning as assigned to it in section 4 of the Indian Partnership Act, 1932, (9 of 1932) and

shall include,-

(a)

any person who, being a minor, has been admitted to the benefits of partnership; and

(b)

a partner of a limited liability partnership formed and registered under the Limited Liability Partnership Act, 2008;

(6 of 2009)

(23) "partnership" shall have the same meaning as assigned to it in section 4 of the Indian Partnership Act, 1932, (9 of 1932)

and shall include a limited liability partnership formed and registered under the Limited Liability Partnership Act, 2008; (6 of 2009)

(24) "person" shall include-

(i)

an individual;

(ii)

a Hindu undivided family;

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(iii)

a company;

(iv)

a firm;

(v)

an association of persons or a body of individuals, whether incorporated or not;

(vi)

every artificial juridical person, not falling under sub-clauses (i) to (v);

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

(26) "property" means assets of any kind, whether movable or immovable, tangible or intangible, corporeal or incorporeal and

includes any right or interest or legal documents or instruments evidencing title to or interest in the property and where the property is

capable of conversion into some other form, then the property in the converted form and also includes the proceeds from the property;

(27) "public financial institution" shall have the same meaning as assigned to it in clause (72) of section 2 of the Companies Act,

2013; (18 of 2013)

(28) "Special Court" means a Court of Session designated as Special Court under sub-section (1) of section 50;

(29) "transfer" includes sale, purchase or any other form of transfer of right, title, possession or lien;

(30) "trustee" means the trustee as defined in the section 3 of the Indian Trusts Act, 1882; (2 of 1882)

(31) words and expressions used herein and not defined in this Act but defined in the Indian Trusts Act, 1882, (2 of 1882) the

Indian Succession Act, 1925, (39 of 1925) the Indian Partnership Act, 1932, (9 of 1932) the Income-tax Act, 1961, (43 of 1961) the

Depositories Act, 1996, (22 of 1996) the Prevention of Money-Laundering Act, 2002, (15 of 2003) the Limited Liability Partnership Act,

2008 (6 of 2009) and the Companies Act, 2013, (18 of 2013) shall have the same meanings respectively assigned to them in those

Acts.

5. Insertion of new heading before section 3. Before section 3 of the principal Act, the following heading shall be inserted,

namely:-

"CHAPTER II

PROHIBITION OF BENAMI TRANSACTIONS"

6. Amendment of section 3. In section 3 of the principal Act,-

(a)

sub-section (2) shall be omitted;

(b)

sub-section (3) shall be renumbered as sub-section (2) thereof;

(c)

after sub-section (2) as so renumbered, the following sub-section shall be inserted, namely:-

"(3) Whoever enters into any benami transaction on and after the date of commencement of the Benami Transactions

(Prohibition) Amendment Act, 2016, shall, notwithstanding anything contained in sub-section (2), be punishable in accordance with the

provisions contained in Chapter VII.";

(d) sub-section (4) shall be omitted.

7. Amendment of section 4. In section 4 of the principal Act, sub-section (3) shall be omitted.

8. Substitution of new sections for sections 5 and 6. For sections 5 and 6 of the principal Act, the following sections shall be

substituted, namely:-

"5. Property held benami liable to confiscation. Any property, which is subject matter of benami transaction, shall be liable to

be confiscated by the Central Government.

6. Prohibition on re-transfer of property by benamidar. (1) No person, being a benamidar shall re-transfer the benami

property held by him to the beneficial owner or any other person acting on his behalf.

(2) Where any property is re-transferred in contravention of the provisions of sub-section (1), the transaction of such property

shall be deemed to be null and void.

(3) The provisions of sub-sections (1) and (2) shall not apply to a transfer made in accordance with the provisions of section 190

of the Finance Act, 2016." (28 of 2016)

9. Insertion of new Chapters III to VII. After section 6 of the principal Act, the following shall be inserted, namely:-

'CHAPTER III

AUTHORITIES

7. Adjudicating Authority. The Central Government shall, by notification, appoint one or more Adjudicating Authorities to

exercise jurisdiction, powers and authority conferred by or under this Act.

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8. Composition of Authority. An Adjudicating Authority shall consist of a Chairperson and at least two other Members.

9. Qualifications for appointment of Chairperson and Members. (1) A person shall not be qualified for appointment as the

Chairperson or a Member of the Adjudicating Authority unless he,-

(a)

has been a member of the Indian Revenue Service and has held the post of Commissioner of Income-tax or

equivalent post in that Service; or

(b)

has been a member of the Indian Legal Service and has held the post of Joint Secretary or equivalent post in that

Service.

(2) The Chairperson and other Members of the Adjudicating Authority shall be appointed by the Central Government in such

manner as may be prescribed.

(3) The Central Government shall appoint the seniormost Member to be the Chairperson of the Adjudicating Authority.

10. Constitution of Benches of Adjudicating Authority. (1) Subject to the provisions of this Act,-

(a)

the jurisdiction of the Adjudicating Authority may be exercised by Benches thereof;

(b)

a Bench may be constituted by the Chairperson of the Adjudicating Authority with two Members, as the Chairperson

may deem fit;

(c)

the Benches of the Adjudicating Authority shall ordinarily sit in the National Capital Territory of Delhi and at such

other places as the Central Government may, in consultation with the Chairperson, by notification, specify;

(d)

the Central Government shall, by notification, specify the areas in relation to which each Bench of the Adjudicating

Authority may exercise jurisdiction.

(2) Notwithstanding anything contained in sub-section (1), the Chairperson may transfer a Member from one Bench to another

Bench.

11. Power of Adjudicating Authority to regulate its own procedure. The Adjudicating Authority shall not be bound by the

procedure laid down by the Code of Civil Procedure, 1908, (5 of 1908) but shall be guided by the principles of natural justice and,

subject to the other provisions of this Act, the Authority shall have powers to regulate its own procedure.

12. Term of office of Chairperson and Members of Adjudicating Authority. The Chairperson and Members of the

Adjudicating Authority shall hold office for a term not exceeding five years from the date on which they enter upon their office, or until

they attain the age of sixty-two years, whichever is earlier and shall not be eligible for reappointment.

13. Terms and conditions of services of Chairperson and Members of Adjudicating Authority. (1) The salary and

allowances payable to, and the other terms and conditions of service of the Chairperson and other Members of the Adjudicating

Authority shall be such as may be prescribed.

(2) Any vacancy caused to the office of the Chairperson or any other Member shall be filled up within a period of three months

from the date on which such vacancy occurs.

14. Removal of Chairperson and Members of Adjudicating Authority. (1) The Central Government may, by order, remove

from office, the Chairperson or other Members of the Adjudicating Authority, if the Chairperson or such other Member, as the case

may be,-

(a)

has been adjudged as an insolvent; or

(b)

has been convicted of an offence, involving moral turpitude; or

(c)

has become physically or mentally incapable of acting as a Member; or

(d)

has acquired such financial or other interest as is likely to affect prejudicially his functions; or

(e)

has so abused his position as to render his continuance in office is prejudicial to the public interest.

(2) No Chairperson or Member shall be removed from his office under clause (d) or clause (e) of sub-section (1) unless he has

been given a reasonable opportunity of being heard in the matter.

15. Member to act as Chairperson in certain circumstances. (1) In the event of the occurrence of any vacancy in the office

of the Chairperson by reason of his death, resignation or otherwise, the seniormost Member shall act as the Chairperson of the

Adjudicating Authority until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such

vacancy, enters upon his office.

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(2) When the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the seniormost

Member shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties.

16. Vacancies, etc., not to invalidate proceedings of Adjudicating Authority. No act or proceeding of the Adjudicating

Authority shall be invalid merely by reason of-

(a)

any vacancy in, or any defect in the constitution of the Authority; or (b) any defect in the appointment of a person

acting as a Member of the Authority; or

(c)

any irregularity in the procedure of the Authority not affecting the merits of the case.

17. Officers and employees of Adjudicating Authority. (1) The Central Government shall provide each Adjudicating Authority

with such officers and employees as that Government may think fit.

(2) The officers and employees of the Adjudicating Authority shall discharge their functions under the general superintendence

of the Chairperson of the Adjudicating Authority.

18. Authorities and jurisdiction. (1)The following shall be the authorities for the purposes of this Act, namely:-

(a)

the Initiating Officer;

(b)

the Approving Authority;

(c)

the Administrator; and

(d)

the Adjudicating Authority.

(2) The authorities shall exercise all or any of the powers and perform all or any of the functions conferred on, or, assigned, as

the case may be, to it under this Act or in accordance with such rules as may be prescribed.

19. Powers of authorities. (1) The authorities shall, for the purposes of this Act, have the same powers Powers of as are

vested in a civil court under the Code of Civil Procedure, 1908, (5 of 1908) while trying a suit authorities. in respect of the following

matters, namely:-

(a)

discovery and inspection;

(b)

enforcing the attendance of any person, including any official of a banking company or a public financial institution

or any other intermediary or reporting entity, and examining him on oath;

(c)

compelling the production of books of account and other documents;

(d)

issuing commissions;

(e)

receiving evidence on affidavits; and

(f)

any other matter which may be prescribed.

(2) All the persons summoned under sub-section (1) shall be bound to attend in person or through authorised agents, as any

authority under this Act 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.

(3) Every proceeding under sub-section (1) or sub-section (2) shall be deemed to be a judicial proceeding within the meaning of

section 193 and section 228 of the Indian Penal Code. (45 of 1860)

(4) For the purposes of this Act, any authority under this Act may requisition the service of any police officer or of any officer of

the Central Government or State Government or of both to assist him for all or any of the purposes specified in sub-section (1), and it

shall be the duty of every such officer to comply with the requisition or direction.

(5) For the purposes of this section, "reporting entity" means any intermediary or any authority or of the Central or the State

Government or any other person as may be notified in this behalf.

Explanation.-For the purposes of sub-section (5), "intermediary" shall have the same meaning as assigned to it in clause (n) of

sub-section (1) of section 2 of the Prevention of Money-Laundering Act, 2002. (15 of 2003)

20. Certain officers to assist in inquiry, etc. The following officers shall assist the authorities in the enforcement of this Act,

namely:-

(a)

income-tax authorities appointed under sub-section (1) of section 117 of the Income- tax Act, 1961; (43 of 1961)

(b)

officers of the Customs and Central Excise Departments;

(c)

officers appointed under sub-section (1) of section 5 of the Narcotic Drugs and Psychotropic Substances Act, 1985;

(61 of 1985)

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(d)

officers of the stock exchange recognised under section 4 of the Securities Contracts (Regulation) Act, 1956; (42 of

1956)

(e)

officers of the Reserve Bank of India constituted under sub-section (1) of section 3 of the Reserve Bank of India

Act, 1934; (2 of 1934)

(f)

police;

(g)

officers of enforcement appointed under sub-section (1) of section 36 of the Foreign Exchange Management Act,

1999; (40 of 1999)

(h)

officers of the Securities and Exchange Board of India established under section 3 of the Securities and Exchange

Board of India Act, 1992; (15 of 1992)

(i)

officers of any other body corporate constituted or established under a Central or a State Act; and

(j)

such other officers of the Central Government, State Government, local authorities or banking companies as the

Central Government may, by notification, specify, in this behalf.

21. Power to call for information. (1) The Initiating Officer or the Approving Authority or the Adjudicating Authority shall have

power to require any officer of the Central Government or State Government or a local body or any person or officer who is responsible

for registering and maintaining books of account or other documents containing a record of any transaction relating to any property or

any other person to furnish any information in relation to any person, point or matter as in his opinion shall be useful for or relevant for

the purposes of this Act.

(2) Without prejudice to sub-section (1), every officer or person referred to in sub-section (1) shall furnish such information to

any authority under this Act in such form and manner as may be prescribed.

22. Power of authority to impound documents. (1) Where any books of account or other documents are produced before the

authority in any proceedings under this Act and the authority in this behalf has reason to believe that any of the books of account or

other documents are required to be impounded and retained for any inquiry under this Act, it may impound and retain the books of

account or other documents for a period not exceeding three months from the date of order of attachment made by the Adjudicating

Authority under sub-section (3) of section 26:

Provided that the period for retention of the books of account or other documents may be extended beyond a period exceeding

three months from the date of order of attachment made by the Adjudicating Authority under sub-section (3) of section 26 where the

authority records in writing the reasons for extending the same.

(2) Where the authority impounding and retaining the books of account or other documents, under sub-section (1) is the

Initiating Officer, he shall obtain approval of the Approving Authority within a period of fifteen days from the date of initial impounding

and seek further approval of the Approving Authority for extending the period of initial retention, before the expiry of the period of initial

retention, if so required.

(3) The period of retention of the books of account or other documents under sub-section (1) shall in no case exceed a period of

thirty days from the date of conclusion of all the proceedings under this Act.

(4) The person, from whom the books of account or other documents were impounded under sub-section (1), shall be entitled to

obtain copies thereof.

(5) On the expiry of the period specified under sub-section (1), the books of account or other documents shall be returned to the

person from whom such books of account or other documents were impounded unless the Approving Authority or the Adjudicating

Authority permits their release to any other person.

23. Power of authority to conduct inquiry, etc. The Initiating Officer, after obtaining prior approval of the Approving Authority,

shall have power to conduct or cause to be conducted any inquiry or investigation in respect of any person, place, property, assets,

documents, books of account or other documents, in respect of any other relevant matters under this Act.

CHAPTER IV

ATTACHMENT, ADJUDICATION AND CONFISCATION

24. Notice and attachment of property involved in benami transaction. (1) Where the Initiating Officer, on the basis of

material in his possession, has reason to believe that any person is a benamidar in respect of a property, he may, after recording

reasons in writing, issue a notice to the person to show cause within such time as may be specified in the notice why the property

should not be treated as benami property.

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(2) Where a notice under sub-section (1) specifies any property as being held by a benamidar referred to in that sub-section, a

copy of the notice shall also be issued to the beneficial owner if his identity is known.

(3) Where the Initiating Officer is of the opinion that the person in possession of the property held benami may alienate the

property during the period specified in the notice, he may, with the previous approval of the Approving Authority, by order in writing,

attach provisionally the property in the manner as may be prescribed, for a period not exceeding ninety days from the date of issue of

notice under sub-section (1).

(4) The Initiating Officer, after making such inquires and calling for such reports or evidence as he deems fit and taking into

account all relevant materials, shall, within a period of ninety days from the date of issue of notice under sub-section (1),-

(a) where the provisional attachment has been made under sub-section (3), -

(i)

pass an order continuing the provisional attachment of the property with the prior approval of the Approving

Authority, till the passing of the order by the Adjudicating Authority under sub-section (3) of section 26; or

(ii)

revoke the provisional attachment of the property with the prior approval of the Approving Authority;

(b)

where provisional attachment has not been made under sub-section (3),-

(i)

pass an order provisionally attaching the property with the prior approval of the Approving Authority, till the

passing of the order by the Adjudicating Authority under sub-section (3) of section 26; or

(ii)

decide not to attach the property as specified in the notice, with the prior approval of the Approving Authority.

(5) Where the Initiating Officer passes an order continuing the provisional attachment of the property under sub-clause (i) of

clause (a) of sub-section (4) or passes an order provisionally attaching the property under sub-clause (i) of clause (b) of that sub-

section, he shall, within fifteen days from the date of the attachment, draw up a statement of the case and refer it to the Adjudicating

Authority.

25. Manner of service of notice. (1) A notice under sub-section (1) of section 24 may be served on the person named therein

either by post or as if it were a summons issued by a Court under the Code of Civil Procedure, 1908. (5 of 1908)

(2) Any notice referred to in sub-section (1) may be addressed-

(i)

in case of an individual, to such individual;

(ii)

in the case of a firm, to the managing partner or the manager of the firm;

(iii)

in the case of a Hindu undivided family, to Karta or any member of such family;

(iv)

in the case of a company, to the principal officer thereof;

(v)

in the case of any other association or body of individuals, to the principal officer or any member thereof;

(vi)

in the case of any other person (not being an individual), to the person who manages or controls his affairs.

26. Adjudication of benami property. (1) On receipt of a reference under sub-section (5) of section 24, the Adjudicating

Authority shall issue notice, to furnish such documents, particulars or evidence as is considered necessary on a date to be specified

therein, on the following persons, namely:-

(a)

the person specified as a benamidar therein;

(b)

any person referred to as the beneficial owner therein or identified as such;

(c)

any interested party, including a banking company;

(d)

any person who has made a claim in respect of the property:

Provided that the Adjudicating Authority shall issue notice within a period of thirty days from the date on which a reference has

been received:

Provided further that the notice shall provide a period of not less than thirty days to the person to whom the notice is issued to

furnish the information sought.

(2) Where the property is held jointly by more than one person, the Adjudicating Authority shall make all endeavours to serve

notice to all persons holding the property:

Provided that where the notice is served on anyone of the persons, the service of notice shall not be invalid on the ground that

the said notice was not served to all the persons holding the property.

(3) The Adjudicating Authority shall, after-

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(a) considering the reply, if any, to the notice issued under sub-section (1);

(b) making or causing to be made such inquiries and calling for such reports or evidence as it deems fit; and

provide an opportunity of being heard to the person specified as a benamidar therein, the Initiating Officer, and any other person who

claims to be the owner of the property, and, thereafter, pass an order-

(i)

holding the property not to be a benami property and revoking the attachment order; or

(ii)

holding the property to be a benami property and confirming the attachment order, in all other cases.

(4) Where the Adjudicating Authority is satisfied that some part of the properties in respect of which reference has been made to

him is benami property, but is not able to specifically identify such part, he shall record a finding to the best of his judgment as to which

part of the properties is held benami.

(5) Where in the course of proceedings before it, the Adjudicating Authority has reason to believe that a property, other than a

property referred to it by the Initiating Officer is benami property, it shall provisionally attach the property and the property shall be

deemed to be a property referred to it on the date of receipt of the reference under sub-section (5) of section 24.

(6) The Adjudicating Authority may, at any stage of the proceedings, either on the application of any party, or suo motu, strike

out the name of any party improperly joined or add the name of any person whose presence before the Adjudicating Authority may be

necessary to enable him to adjudicate upon and settle all the questions involved in the reference.

(7) No order under sub-section (3) shall be passed after the expiry of one year from the end of the month in which the reference

under sub-section (5) of section 24 was received.

(8) The benamidar or any other person who claims to be the owner of the property may either appear in person or take the

assistance of an authorised representative of his choice to present his case.

Explanation.-For the purposes of sub-section (8), authorised representative means a person authorised in writing, being-

(i)

a person related to the benamidar or such other person in any manner, or a person regularly employed by the

benamidar or such other person as the case may be; or

(ii)

any officer of a scheduled bank with which the benamidar or such other person maintains an account or has other

regular dealings; or

(iii)

any legal practitioner who is entitled to practice in any civil court in India; or

(iv)

any person who has passed any accountancy examination recognised in this behalf by the Board; or

(v)

any person who has acquired such educational qualifications as the Board may prescribe for this purpose.

27. Confiscation and vesting of benami property. (1) Where an order is passed in respect of any property under sub-section

(3) of section 26 holding such property to be a benami property, the Adjudicating Authority shall, after giving an opportunity of being

heard to the person concerned, make an order confiscating the property held to be a benami property:

Provided that where an appeal has been filed against the order of the Adjudicating Authority, the confiscation of property shall

be made subject to the order passed by the Appellate Tribunal under section 46:

Provided further that the confiscation of the property shall be made in accordance with such procedure as may be prescribed.

(2) Nothing in sub-section (1) shall apply to a property held or acquired by a person from the benamidar for adequate

consideration, prior to the issue of notice under sub-section (1) of section 24 without his having knowledge of the benami transaction.

(3) Where an order of confiscation has been made under sub-section (1), all the rights and title in such property shall vest

absolutely in the Central Government free of all encumbrances and no compensation shall be payable in respect of such confiscation.

(4) Any right of any third person created in such property with a view to defeat the purposes of this Act shall be null and void.

(5) Where no order of confiscation is made upon the proceedings under this Act attaining finality, no claim shall lie against the

Government.

28. Management of properties confiscated. (1) The Administrator shall have the power to receive and manage the property,

in relation to which an order of confiscation under sub-section (1) of section 27 has been made, in such manner and subject to such

conditions, as may be prescribed.

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(2) The Central Government may, by order published in the Official Gazette, notify as many of its officers as it thinks fit, to

perform the functions of Administrators.

(3) The Administrator shall also take such measures, as the Central Government may direct, to dispose of the property which is

vested in the Central Government under sub-section (3) of section 27, in such manner and subject to such conditions as may be

prescribed.

29. Possession of the property. (1) Where an order of confiscation in respect of a property under sub-section (1) of section 27,

has been made, the Administrator shall proceed to take the possession of the property.

(2) The Administrator shall,-

(a)

by notice in writing, order within seven days of the date of the service of notice to any person, who may be in

possession of the benami property, to surrender or deliver possession thereof to the Administrator or any other

person duly authorised in writing by him in this behalf;

(b)

in the event of non-compliance of the order referred to in clause (a), or if in his opinion, taking over of immediate

possession is warranted, for the purpose of forcibly taking over possession, requisition the service of any police

officer to assist him and it shall be the duty of the officer to comply with the requisition.

CHAPTER V

APPELLATE TRIBUNAL

30. Establishment of Appellate Tribunal. The Central Government shall, by notification, establish an Appellate Tribunal to

hear appeals against the orders of the Adjudicating Authority under this Act.

31. Composition, etc., of Appellate Tribunal. (1) The Appellate Tribunal shall consist of a Chairperson and at least two other

Members of which one shall be a Judicial Member and other shall be an Administrative Member.

(2) Subject to the provisions of this Act,-

(a)

the jurisdiction of the Appellate Tribunal may be exercised by Benches thereof;

(b)

a Bench may be constituted by the Chairperson with two Members as the Chairperson may deem fit;

(c)

the Benches of the Appellate Tribunal shall ordinarily sit in the National Capital Territory of Delhi and at such other

places as the Central Government may, in consultation with the Chairperson, by notification, specify;

(d)

the Central Government shall, by notification, specify the areas in relation to which each Bench of the Appellate

Tribunal may exercise its jurisdiction.

(3) Notwithstanding anything contained in sub-section (2), the Chairperson may transfer a Member from one Bench to another

Bench.

32. Qualifications for appointment of Chairperson and Members of Appellate Tribunal. (1) A person shall not be qualified

for appointment as Chairperson of the Appellate Tribunal unless he is a sitting or retired Judge of a High Court, who has completed not

less than five years' of service.

(2) A person shall not be qualified for appointment as a Member unless he¬

(a)

in the case of a Judicial Member, has been a Member of the Indian Legal Service and has held the post of

Additional Secretary or equivalent post in that Service;

(b)

in the case of an Administrative Member, has been a Member of the Indian Revenue Service and has held the post

of Chief Commissioner of Income-tax or equivalent post in that Service.

(3) No sitting Judge of a High Court shall be appointed under this section except after consultation with the Chief Justice of the

High Court.

(4) The Chairperson or a Member holding a post as such in any other Tribunal, established under any law for the time being in

force, in addition to his being the Chairperson or a Member of that Tribunal, may be appointed as the Chairperson or a Member, as the

case may be, of the Appellate Tribunal under this Act.

33. Terms and conditions of services of Chairperson and Members of Appellate Tribunal. (1) The salary and allowances

payable to, and the other terms and conditions of service of the Chairperson and other Members shall be such as may be prescribed

and shall not be varied to their disadvantage during their tenure.

(2) Any vacancy caused to the office of the Chairperson or any other Member shall be filled up within a period of three months

from the date on which such vacancy occurs.

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34. Term of office of Chairperson and Members. The Chairperson and Members of the Appellate Tribunal shall hold office for

a term not exceeding five years from the date on which they enter upon their office, or until they attain the age of sixty- five years,

whichever is earlier and shall not be eligible for reappointment.

35. Removal of Chairperson and Member from office in certain circumstances. (1) The Central Government may, in

consultation with the Chief Justice of High Court, remove from office of the Chairperson or any Member, who-

(a)

has been adjudged as an insolvent; or

(b)

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

(c)

has become physically or mentally incapable; or

(d)

has acquired such financial or other interest as is likely to affect prejudicially his functions; or

(e)

has so abused his position as to render his continuance in office prejudicial to the public interest.

(2) The Chairperson or Judicial Member shall not be removed from his office except by an order made by the Central

Government after an inquiry made by Chief Justice of the High Court in which the Chairperson or Judicial Member has been informed of

the charges against him and given a reasonable opportunity of being heard in respect of those charges.

(3) The Central Government may suspend from office the Chairperson or Judicial Member in respect of whom a reference of

conducting an inquiry has been made to the Chief Justice of the High Court under sub-section (2), until the Central Government passes

an order on receipt of the report of inquiry made by Chief Justice of the High Court on the reference.

(4) The Central Government may regulate the procedure for inquiry referred to in sub-section (2) in the manner as may be

prescribed.

(5) The Administrative Member may be removed from his office by an order of the Central Government on the grounds specified

in sub-section (1) and in accordance with the procedure notified by the Central Government:

Provided that the Administrative Member shall not be removed unless he has been given an opportunity of being heard in the

matter.

36. Vacancies, etc., not to invalidate proceedings of Appellate Tribunal. No act or proceeding of the Appellate Tribunal

shall be invalid merely by reason of-

(a) any vacancy in, or any defect in the constitution of the Tribunal; or

(b) any defect in the appointment of a person acting as a Member of the Tribunal; or

37. Resignation and removal. The Chairperson or any other Member may, by notice in writing under his hand addressed to the

Central Government, resign his office:

Provided that the Chairperson or any other 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 the 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 earlier.

38. Member to act as Chairperson in certain circumstances. (1) In the event of the occurrence of any vacancy in the office

of the Chairperson of the Appellate Tribunal by reason of his death, resignation or otherwise, the senior-most Member shall act as the

Chairperson until the date on which a new Chairperson, appointed in accordance with the provisions of this Act to fill such vacancy,

enters upon his office.

(2) When the Chairperson is unable to discharge his functions owing to absence, illness or any other cause, the senior-most

Member shall discharge the functions of the Chairperson until the date on which the Chairperson resumes his duties.

39. Staff of Appellate Tribunal. (1) The Central Government shall provide the Appellate Tribunal with such officers and

employees as it may thinks fit.

(2) The officers and employees of the Appellate Tribunal shall discharge their functions under the general superintendence of

the Chairperson.

(3) The salaries and allowances and other conditions of service of the officers and employees of the Appellate Tribunal shall be

such, as may be prescribed.

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40. Procedure and powers of Appellate Tribunal. (1) The Appellate Tribunal shall not be bound by the procedure laid down

by the Code of Civil Procedure, 1908, (5 of 1908) but shall be guided by the principles of natural justice and, subject to the other

provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure.

(2) The Appellate Tribunal shall, for the purposes of discharging its functions under this Act, have the same powers as are

vested in a civil court under the Code of Civil Procedure, 1908 (5 of 1908) while trying a suit, 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 documents; (c) receiving evidence on affidavits;

(d)

subject to the provisions of sections 123 and 124 of the Indian Evidence Act, 1872, (1 of 1872) requisitioning any

public record or document or copy of such record or document from any office;

(e)

issuing commissions for the examination of witnesses or documents; (j) reviewing its decisions;

(g)

dismissing a representation for default or deciding it ex parte;

(h)

setting aside any order of dismissal of any representation for default or any order passed by it ex parte; and

(i)

any other matter, which may be, prescribed by the Central Government.

(3) An order made by the Appellate Tribunal under this Act shall be executable by it as a decree of civil court and, for this

purpose, the Appellate Tribunal shall have all the powers of a civil court.

(4) Notwithstanding anything contained in sub-section (3), the Appellate Tribunal may transmit any order made by it to a civil

court having jurisdiction and the civil court shall execute the order as if it were a decree made by that court.

(5) All proceedings before the Appellate Tribunal shall be deemed to be judicial proceedings within the meaning of sections 193

and 228 (45 of 1860) of the Indian Penal Code and the Appellate Tribunal shall be deemed to be a civil court for the purposes of

sections 345 and 346 of the Code of Criminal Procedure, 1973. (2 of 1974)

41. Distribution of business amongst Benches of Appellate Tribunal. Where any Benches are constituted, the Chairperson

may, from time to time, by notification, make provision as to the distribution of the business of the Appellate Tribunal amongst the

Benches and also provide for the matters which may be dealt with by each Bench.

42. Power of Chairperson of Appellate Tribunal to transfer cases. On the application of any of the parties and notice to the

parties, and after hearing them, or on his own motion without any notice, the Chairperson of the Appellate Tribunal may transfer any

case pending before one Bench, for disposal, to any other Bench.

43. Decision to be by majority. If the Members of a Bench consisting of two Members differ in opinion on any point, they shall

state the point or points on which they differ, and make a reference to the Chairperson of the Appellate Tribunal who shall either hear

the point or points himself or refer the case for hearing on the point or points by one or more of the other Members and the point or

points shall be decided according to the opinion of the majority of the Members of the Appellate Tribunal who have heard the case,

including those who first heard it.

44. Members, etc., to be public servants. The Chairperson, Members and other officers and employees of the Appellate

Tribunal, the Adjudicating Authority, Approving Authority, Initiating Officer, Administrator and the officers subordinate to all of them shall

be deemed to be public servants within the meaning of section 21 of the Indian Penal Code. (45 of 1860)

45. Bar of jurisdiction of civil courts. No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any

matter which any of the authorities, an Adjudicating Authority or the Appellate Tribunal is empowered by or under this Act to determine,

and no injunction shall be granted by any court or other forum in respect of any action taken or to be taken in pursuance of any power

conferred by or under this Act.

46. Appeals to Appellate Tribunal. (1) Any person, including the Initiating Officer, aggrieved by an order of the Adjudicating

Authority may prefer an appeal in such form and along with such fees, as may be prescribed, to the Appellate Tribunal against the order

passed by the Adjudicating Authority under sub-section (3) of section 26, within a period of forty-five days from the date of the order.

(2) The Appellate Tribunal may entertain any appeal after the said period of forty-five days, if it is satisfied that the appellant was

prevented, by sufficient cause, from filing the appeal in time.

(3) On receipt of an appeal under sub-section (1), the Appellate Tribunal may, after giving the parties to the appeal an

opportunity of being heard, pass such orders thereon as it thinks fit.

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(4) An Appellate Tribunal while deciding the appeal shall have the power-

(a)

to determine a case finally, where the evidence on record is sufficient;

(b)

to take additional evidence or to require any evidence to be taken by the Adjudicating Authority, where the

Adjudicating Authority has refused to admit evidence, which ought to have been admitted;

(c)

to require any document to be produced or any witness to be examined for the purposes of proceeding before it;

(d)

to frame issues which appear to the Appellate Tribunal essential for adjudication of the case and refer them to the

Adjudicating Authority for determination;

(e)

to pass final order and affirm, vary or reverse an order of adjudication passed by the Adjudicating Authority and

pass such other order or orders as may be necessary to meet the ends of justice.

(5) The Appellate Tribunal, as far as possible, may hear and finally decide the appeal within a period of one year from the last

date of the month in which the appeal is filed.

47. Rectification of mistakes. (1) The Appellate Tribunal or the Adjudicating Authority may, in order to rectify any mistake

apparent on the face of the record, amend any order made by it under section 26 and section 46 respectively, within a period of one

year from the end of the month in which the order was passed.

(2) No amendment shall be made under sub-section (1), if the amendment is likely to affect any person prejudicially, unless he

has been given notice of intention to do so and has been given an opportunity of being heard.

48. Right to representation. (1) A person preferring an appeal to the Appellate Tribunal under this Act may either appear in

person or take the assistance of an authorised representative of his choice to present his case before the Appellate Tribunal.

(2) The Central Government may authorise one or more of its officers to act as presenting officers on its behalf, and every

person so authorised may present the case with respect to any appeal before the Appellate Tribunal.

Explanation.-For the purposes of this section, "authorised representative" means a person authorised by the appellant in writing

to appear on his behalf, being-

(i)

a person related to the appellant in any manner, or a person regularly employed by the appellant; or

(ii)

any officer of a scheduled bank with which the appellant maintains an account or has other regular dealings; or

(iii)

any legal practitioner who is entitled to practice in any civil court in India; or

(iv)

any person who has passed any accountancy examination recognised in this behalf by the Board; or

(v)

any person who has acquired such educational qualifications as the Board may prescribe for this purpose.

49. Appeal to High Court. (1) Any party aggrieved by any decision or order of the Appellate Tribunal may file an appeal to the

High Court within a period of sixty days from the date of communication of the decision or order of the Appellate Tribunal to him on any

question of law arising out of such order.

(2) The High Court may entertain any appeal after the said period of sixty days, if it is satisfied that the appellant was prevented

by sufficient cause from filing the appeal within the period specified in sub-section (1).

(3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question.

(4) The appeal shall be heard only on the question so formulated, and the respondents shall, at the hearing of the appeal, be

allowed to argue that the case does not involve such question.

(5) Nothing in this sub-section shall be deemed to take away or abridge the power of the court to hear, for reasons to be

recorded, the appeal on any other substantial question of law not formulated by it, if it is satisfied that the case involves such question.

(6) The High Court shall decide the question of law so formulated and deliver the judgment thereon containing the grounds on

which any decision is founded and may award any cost as it deems fit.

(7) The High Court may determine any issue which-

(a)

has not been determined by the Appellate Tribunal; or

(b)

has been wrongly determined by the Appellate Tribunal, by reason of a decision on such question of law as is

referred to in sub-section (1).

(8) Save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908, (5 of 1908) relating to appeals to

the High Court shall, as far as may be, apply in the case of appeals under this section.

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CHAPTER VI

SPECIAL COURTS

50. Special Courts. (1) The Central Government, in consultation with the Chief Justice of the High Court, shall, for trial of an

offence punishable under this Act, by notification, designate one or more Courts of Session as Special Court or Special Courts for such

area or areas or for such case or class or group of cases as may be specified in the notification.

(2) While trying an offence under this Act, a Special Court shall also try an offence other than an offence referred to in sub-

section (1), with which the accused may, under the Code of Criminal Procedure, 1973, (2 of 1974) be charged at the same trial.

(3) The Special Court shall not take cognizance of any offence punishable under this Act except upon a complaint in writing

made by-

(i)

the authority; or

(ii)

any officer of the Central Government or State Government authorised in writing by that Government by a general

or special order made in this behalf.

(4) Every trial under this section shall be conducted as expeditiously as possible and every endeavour shall be made by the

Special Court to conclude the trial within six months from the date of filing of the complaint.

51. Application of Code of Criminal Procedure, 1973 to proceedings before Special Court. (1) Save as otherwise provided

in this Act, the provisions of the Code of Criminal Procedure, 1973, (2 of 1974) shall apply to the proceedings before a Special Court

and the persons conducting the prosecution before the Special Court, shall be deemed to be Public Prosecutors:

Provided that the Central Government may also appoint for any case or class or group of cases, a Special Public Prosecutor.

(2) A person shall not be qualified to be appointed as a Public Prosecutor or a Special Public Prosecutor under this section

unless, the Public Prosecutor has been in practice as an advocate for not less than seven years, and the Special Public Prosecutor has

been in practice as an advocate for not less than ten years in any court.

(3) Every person appointed as a Public Prosecutor or a Special Public Prosecutor under this section shall be deemed to be a

Public Prosecutor within the meaning of clause (u) of section 2 of the Code of Criminal Procedure, 1973 (2 of 1974) and the provisions

of that Code shall have effect accordingly.

52. Appeal and revision. The High Court may exercise, so far as may be applicable, all the powers conferred by Chapter XXIX

or Chapter XXX of the Code of Criminal Procedure, 1973, (2 of 1974) on a High Court, as if a Special Court within the local limits of the

jurisdiction of the High Court were a Court of Session trying cases within the local limits of the jurisdiction of the High Court.

CHAPTER VII

OFFENCES AND PROSECUTION

53. Penalty for benami transaction. (1) Where any person enters into a benami transaction in order to defeat the provisions of

any law or to avoid payment of statutory dues or to avoid payment to creditors, the beneficial owner, benamidar and any other person

who abets or induces any person to enter into the benami transaction, shall be guilty of the offence of benami transaction.

(2) Whoever is found guilty of the offence of benami transaction referred to in sub-section (1) shall be punishable with rigorous

imprisonment for a term which shall not be less than one year, but which may extend to seven years and shall also be liable to fine

which may extend to twenty-five per cent. of the fair market value of the property.

54. Penalty for false information. Any person who is required to furnish information under this Act knowingly gives false

information to any authority or furnishes any false document in any proceeding under this Act, shall be punishable with rigorous

imprisonment for a term which shall not be less than six months but which may extend to five years and shall also be liable to fine which

may extend to ten per cent. of the fair market value of the property.

55. Previous sanction. No prosecution shall be instituted against any person in respect of any offence under sections 3, 53 or

section 54 without the previous sanction of the Board.'.

10. Substitution of new Chapter VIII for sections 7 and 8. For sections 7 and 8 of the principal Act, the following shall be

substituted, namely:-

CHAPTER VIII

MISCELLANEOUS

56. Repeal of provisions of certain Acts. (1) Sections 81, 82 and 94 of the Indian Trusts Act, 1882, (2 of 1882) section 66 of

the Code of Civil Procedure, 1908 (5 of 1908) and section 281A of the Income-tax Act, 1961, (43 of 1961) are hereby repealed.

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(2) For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall affect the continued operation of section

281A of the Income-tax Act, 1961 (43 of 1961) in the State of Jammu and Kashmir.

57. Certain transfers to be null and void. Notwithstanding anything contained in the Transfer of the Property Act, 1882 or any

other law for the time being in force, where, after the issue of a notice under section 24, any property referred to in the said notice is

transferred by any mode whatsoever, the transfer shall, for the purposes of the proceedings under this Act, be ignored and if the

property is subsequently confiscated by the Central Government under section 27, then, the transfer of the property shall be deemed to

be null and void. (4 of 1882)

58. Exemption. (1) The Central Government may, by notification, exempt any property relating to charitable or religious trusts

from the operation of this Act.

(2) Every notification issued under sub-section (1) shall be laid before each House of Parliament.

59. Power of Central Government to issue directions, etc. (1) The Central Government may, from time to time, issue such

orders, instructions or directions to the authorities or require any person to furnish information as it may deem fit for the proper

administration of this Act and such authorities and all other persons employed in execution of this Act shall observe and follow the

orders, instructions and directions of the Central Government.

(2) In issuing the directions or orders referred to in sub-section (1), the Central Government may have regard to anyone or more

of the following criteria, namely:-

(a)

territorial area;

(b)

classes of persons;

(c)

classes of cases; and

(d)

any other criterion that may be specified by the Central Government in this behalf.

(3) No orders, instructions or directions under sub-section (1) shall be issued so as to-

(a)

require any authority to decide a particular case in a particular manner; or

(b)

interfere with the discretion of the Adjudicating Authority in the discharge of its functions.

60. Application of other laws not barred. The provisions of this Act shall be in addition to, and not, save as hereinafter

expressly provided, in derogation of any other law for the time being in force.

61. Offences to be non-cognizable. Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974)

an offence under this Act shall be non-cognizable.

62. Offences by companies. (1) Where a person committing contravention of any of the provisions of this Act or of any rule,

direction or order made thereunder is a company, every person who, at the time the contravention was committed, was in charge of,

and was responsible to, the company, for the conduct of the business of the company as well as the company, shall be deemed to be

guilty of the contravention and shall be liable to be proceeded against and punished accordingly.

(2) Nothing contained in sub-section (1), shall render any person liable to punishment if he proves that the contravention took

place without his knowledge.

(3) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions of this Act or of any

rule, direction or order made thereunder has been committed by a company and it is proved that the contravention has taken place 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, the director, manager, secretary or other officer shall also be deemed to be guilty of the contravention and shall be liable to be

proceeded against and punished accordingly.

Explanation.-For the purposes of this section,-

(a)

"company" means a body corporate, and includes-

(i)

a firm; and

(ii) an association of persons or a body of individuals whether incorporated or not; and

(b)

"director", in relation to-

(i)

a firm, means a partner in the firm;

(ii) any association of persons or a body of individuals, means any member controlling the affairs thereof.

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63. Notice, etc., not to be invalid on certain grounds. No notice, summons, order, document or other proceeding, furnished

or made or issued or taken or purported to have been furnished or made or issued or taken in pursuance of any of the provisions of this

Act shall be invalid, or shall be deemed to be invalid merely by reason of any mistake, defect or omission in the notice, summons, order,

document or other proceeding if the notice, summons, order, document or other proceeding is in substance and effect in conformity with

or according to the intent and purpose of this Act.

64. Protection of action taken in good faith. No prosecution, suit or other proceeding shall lie against the Government or any

officer of the Government or the Appellate Tribunal or the Adjudicating Authority established under this Act, for anything done or

intended to be done in good faith under this Act.

65. Transfer of pending cases. (1) Every suit or proceeding in respect of a benami transaction pending in any Court (other

than a High Court) or Tribunal or before any forum on the date of the commencement of this Act shall stand transferred to the

Adjudicating Authority or the Appellate Tribunal, as the case may be, having jurisdiction in the matter.

(2) Where any suit, or other proceeding stands transferred to the Adjudicating Authority or the Appellate Tribunal under sub-

section (1),-

(a)

the court, Tribunal or other forum shall, as soon as may be, after the transfer, forward the records of the suit, or

other proceeding to the Adjudicating Authority or the Appellate Tribunal, as the case may be;

(b)

the Adjudicating Authority may, on receipt of the records, proceed to deal with the suit, or other proceeding, so far

as may be, in the same manner as in the case of a reference made under sub-section (5) of section 24, from the

stage which was reached before the transfer or from any earlier stage or de novo as the Adjudicating Authority may

deem fit.

66. Proceedings, etc., against legal representative. (1) Where a person dies during the course of any proceeding under this

Act, any proceeding taken against the deceased before his death shall be deemed to have been taken against the legal representative

and may be continued against the legal representative from the stage at which it stood on the date of the death of the deceased.

(2) Any proceeding which could have been taken against the deceased if he had survived may be taken against the legal

representative and all the provisions of this Act, except sub-section (2) of section 3 and the provisions of Chapter VII, shall apply

accordingly.

(3) Where any property of a person has been held benami under sub-section (3) of section 26, then, it shall be lawful for the

legal representative of the person to prefer an appeal to the Appellate Tribunal, in place of the person and the provisions of section 46

shall, so far as may be, apply, or continue to apply, to the appeal.

67. Act to have overriding effect. The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith

contained in any other law for the time being in force.

68. Power to make rules. (1) The Central Government may, 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)

manner of ascertaining the fair market value under clause 16 of section 2;

(b)

the manner of appointing the Chairperson and the Member of the Adjudicating Authorities under sub-section (2) of

section 9;

(c)

the salaries and allowances payable to the Chairperson and the Members of the Adjudicating Authority under sub-

section (1) of section 13;

(d)

the powers and functions of the authorities under sub-section (2) of section 18;

(e)

other powers of the authorities under clause (f) of sub-section (1) of section 19;

(f)

the form and manner of furnishing any information to the authority under sub-section (2) of section 21;

(g)

the manner of provisional attachment of property under sub-section (3) of section 24;

(h)

the procedure for confiscation of benami property under the second proviso to sub-section (1) of section 27;

(i)

the manner and conditions to receive and manage the property under sub-section (1) of section 28;

(j)

the manner and conditions of disposal of property vested in the Central Government under sub-section (3) of

section 28;

¨sÁUÀ 4

PÀ£ÁðlPÀ gÁdå¥ÀvÀæ, UÀÄgÀÄªÁgÀ, ªÀiÁZïð 2, 2017

(k)

the salaries and allowances payable to and the other terms and conditions of service of the Chairperson and other

Members of the Appellate Tribunal under sub-section (1) of section 33;

(l)

the manner of prescribing procedure for removal of Chairperson or Member under sub-section (4) of section 35;

(m) the salaries and allowances payable to and the other terms and conditions of service of the officers and employees

of the Appellate Tribunal under sub-section (3) of section 39;

(n)

any power of the Appellate Tribunal under clause (i) of sub-section (2) of section 40;

(o)

the form in which appeal shall be filed and the fee for filing the appeal under sub-section (1) of section 46;

(p)

any other matter which is to be, or may be, prescribed, or in respect of which provision is to be made, by rules.

69. Laying of rules and notifications before Parliament. Every rule made and notification issued under this Act shall be laid,

as soon as may be after it is made or issued, 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 rules or notifications,

as the case may be, both Houses agree that the rules or notifications, as the case may be, should not be made or issued, the rule or

notification, as the case may be, 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

notification, as the case may be.

70. Power to remove difficulties. (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

be necessary for removing the difficulty.

(2) No order shall be made under this section after the expiry of two years from the commencement of this Act.

(3) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.

71. Transitional provision. The Central Government may, by notification, provide that until the Adjudicating Authorities are

appointed and the Appellate Tribunal is established under this Act, the Adjudicating Authority appointed under sub-section (1) of section

6 of the Money-Laundering Act, 2002 (15 of 2003) and the Appellate Tribunal established under section 25 of that Act may discharge

the functions of the Adjudicating Authority and Appellate Tribunal, respectively, under this Act.'.

11. Amendment of section 9. Section 9 of the principal Act shall be renumbered as section 72 thereof.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

MANOJ KUMAR

Digitally signed by MANOJ KUMAR

Date: 2016.08.12

01:32:10 -05'30'

P.R. 1

SC - 20

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MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 5

th August, 2016/Shravana 14, 1938 (Saka)

The following Act of Parliament received the assent of the President on the 4

th August, 2016, and is hereby published for

general information:-

THE INDIAN MEDICAL COUNCIL (AMENDMENT) ACT, 2016

No.39 OF 2016

[4^th August, 2016]

An Act further to amend the Indian Medical Council Act, 1956.

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:-

1. Short title and commencement. (1) This Act may be called the Indian Medical Council (Amendment) Act, 2016. (2) It shall

be deemed to have come into force on 24th May, 2016.

2. Insertion of new section 10D. After section 10C of the Indian Medical Council Act, 1956 (102 of 1956) (hereinafter referred

to as the principal Act), the following section shall be inserted, namely:-

"10D. Uniform entrance examination for undergraduate and post-graduate level. There shall be conducted a uniform

entrance examination to all medical educational institutions at the undergraduate level and post-graduate level through such designated

authority in Hindi, English and such other languages and in such manner as may be prescribed and the designated authority shall

ensure the conduct of uniform entrance examination in the aforesaid manner:

Provided that notwithstanding any judgment or order of any court, the provisions of this section shall not apply, in relation to the

uniform entrance examination at the undergraduate level for the academic year 2016-17 conducted in accordance with any regulations

made under this Act, in respect of the State Government seats (whether in Government Medical College or in a private Medical College)

where such State has not opted for such examination.".

3. Amendment of section 33. In section 33 of the principal Act, after clause (ma), the following clause shall be inserted,

namely:-

"(mb) the designated authority, other languages and the manner of conducting of uniform entrance examination to

all medical educational institutions at the undergraduate level and post-graduate level;".

4. Repeal and savings. (1) The Indian Medical Council (Amendment) Ordinance, 2016 (Ord. 4 of 2016) is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the Indian Medical Council Act,I956 as amended by

the said Ordinance, shall be deemed to have been 102 of 1956. done or taken under the corresponding provisions of the said Act, as

amended by this Act.

DR. G. NARAYANA RAJU,

Secretary to the Govt. of India.

MANOJ KUMAR

Digitally signed by MANOJ KUMAR

Date: 2016.08.06

22:34:01 +05'30'

P.R. 02

SC - 20

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MINISTRY OF LAW AND JUSTICE

(Legislative Department)

New Delhi, the 22

nd March, 2016/Chaitra 2, 1938 (Saka)

The following Act of Parliament received the assent of the President on the 21

st March, 2016, and is hereby published for

general information:-

THE BUREAU OF INDIAN STANDARDS ACT, 2016

No.11 OF 2016

[21^st March, 2016]

An Act to provide for the establishment of a national standards body for the harmonious development of the activities of

standardisation, conformity assessment and quality assurance of goods, articles, processes, systems and services and for matters

connected therewith or incidental thereto.

BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows:-

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement. (1) This Act may be called the Bureau of Indian Standards Act, 2016. (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.

2. Definitions. In this Act, unless the context otherwise requires,-

(1) "article" means any substance, artificial or natural, or partly artificial or partly natural, whether raw or partly or wholly

processed or manufactured or hand-made within India or imported into India;

(2) "assaying and hallmarking centre" means a testing and marking centre recognised by the Bureau to determine the purity of

precious metal articles and to apply hallmark on the precious metal articles in a manner as may be determined by regulations;

(3) "Bureau" means the Bureau of Indian Standards established under section 3; (4) "certification officer" means a certification

officer appointed under sub-section (1) of section 27;

(5) "certified body" means a holder of certificate of conformity or licence under sub-section (2) of section 13 in relation to any

goods, article, process, system or service which conforms to a standard;

(6) "certified jeweller" means a jeweller who has been granted a certificate by the Bureau to get manufactured for sale or to sell

any precious metal article after getting the same hallmarked in a manner as may be determined by regulations;

(7) "conformity assessment" means demonstration that requirements as may be specified relating to an article, process, system,

service, person or body are fulfilled;

(8) "conformity assessment scheme" means a scheme relating to such goods, article, process, system or service as may be

notified by the Bureau under section 12;

(9) "consumer" means a person as defined in the Consumer Protection Act, 1986; (68 of 1986)

(10) "covering" includes any stopper, cask, bottle, vessel, box, crate, cover, capsule, case, frame, wrapper, bag, sack, pouch or

other container;

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(11) "Director General" means the Director General appointed under sub-section (1) of section 7;

(12) "Executive Committee" means the Executive Committee constituted under sub-section (1) of section 4;

(13) "fund" means the fund constituted under section 20;

(14) "goods" includes all kinds of movable properties under the Sale of Goods Act, 1930, (3 of 1930) other than actionable

claims, money, stocks and shares;

(15) "Governing Council" means a Governing Council constituted under sub-section (3) of section 3;

(16) "Hallmark" means in relation to precious metal article, the Standard Mark, which indicates the proportionate content of

precious metal in that article as per the relevant Indian Standard;

(17) "Indian Standard" means the standard including any tentative or provisional standard established and published by the

Bureau, in relation to any goods, article, process, system or service, indicative of the quality and specification of such goods, article,

process, system or service and includes-

(i)

any standard adopted by the Bureau under sub-section (2) of section 10; and

(ii)

any standard established and published, or recognised, by the Bureau of Indian Standards established under

the Bureau of Indian Standard Act, 1986, (63 of 1986) which was in force immediately before the commencement of

this Act;

(18) "Indian Standards Institution" means the Indian Standards Institution registered under the Societies Registration Act, 1860;

(21 of 1860)

(19) "jeweller" means a person engaged in the business to get manufactured precious metal article for sale or to sell precious

metal articles;

(20) "licence" means a licence granted under section 13 to use a specified Standard Mark in relation to any goods, article,

process, system or service, which conforms to a standard;

(21) "manufacturer" means a person responsible for designing and manufacturing any goods or article;

22) "mark" includes a device, brand, heading, label, ticket, pictorial representation, name, signature, word, letter or numeral or

any combination thereof;

(23) "member" means a member of the Governing Council, Executive Committee or any of the Advisory Committee;

(24) "notification" means a notification published in the Official Gazette and the expression "notify" or "notified" shall be

construed accordingly;

(25) "person" means a manufacturer, an importer, a distributor, retailer, seller or lessor of goods or article or provider of service

or any other person who uses or applies his name or trade mark or any other distinctive mark on to goods or article or while providing a

service, for any consideration or gives goods or article or provides service as prize or gift for commercial purposes including their

representative and any person who is engaged in such activities, where the manufacturer, importer, distributor, retailer, seller, lessor or

provider of service cannot be identified;

(26) "precious metal" means gold, silver, platinum and palladium;

(27) "precious metal article" means any article made entirely or in part from precious metals or their alloys;

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

(29) "process" means a set of inter-related or interacting activities, which transforms inputs into outputs;

(30) "recognised testing and marking centre" means a testing and marking centre recognised by the Bureau under sub-section

(5) of section 14;

(31) "recognised testing laboratory" means a testing laboratory recognised by the Bureau under sub-section (4) of section 13;

(32) "registering authority" means any authority competent under any law for the time being in force to register any company,

firm or other body of persons, or any trade mark or design, or to grant a patent;

(33) "regulations" means regulations made by the Bureau under this Act;

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(34) "sale" means to sell, distribute, hire, lease or exchange of goods, article, process, system or service for any consideration

or for commercial purposes;

(35) "seller" means a person who is engaged in the sale of any goods, article, process, system or service;

(36) "service" means the result generated by activities at the interface between an organisation and a customer and by

organisation's internal activities, to meet customer requirements;

(37) "specification" means a description of goods, article, process, system or service as far as practicable by reference to its

nature, quality, strength, purity, composition, quantity, dimensions, weight, grade, durability, origin, age, material, mode of manufacture

or processing, consistency and reliability of service delivery or other characteristics to distinguish it from any other goods, article,

process, system or service;

(38) "specified" means specified by the regulations;

(39) "standards" means documented agreements containing technical specifications or other precise criteria to be used

consistently as rules, guidelines, or definitions of characteristics, to ensure that goods, articles, processes, systems and services are fit

for their purpose;

(40) "Standard Mark" means the mark specified by the Bureau, and includes Hallmark, to represent conformity of goods, article,

process, system or service to a particular Indian Standard or conformity to a standard, the mark of which has been established, adopted

or recognised by the Bureau and is marked on the article or goods as a Standard Mark or on its covering or label attached to such

goods or article so marked;

(41) "system" means a set of inter-related or interacting elements;

(42) "testing laboratory" means a body set up for the purpose of testing of goods or article against a set of requirements and

report its findings;

(43) "trade mark" means a mark used or proposed to be used in relation to goods or article or process or system or service for

the purpose of indicating, or so as to indicate, a connection in the course of trade of goods, article, process, system or service, as the

case may be, and some person having the right, either as proprietor or as registered user, to use the mark, whether with or without any

indication of the identity of that person.

CHAPTER II

BUREAU OF INDIAN STANDARDS

3. Establishment of Bureau and Constitution of Governing Council. (1) With effect from such date as the Central

Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established a national body for the

purposes of this Act, a Bureau, to be called the Bureau of Indian Standards.

(2) The Bureau 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 and be sued.

(3) The members of the Governing Council shall constitute the Bureau and general superintendence, direction and management

of the affairs of the Bureau shall vest in the Governing Council, which shall consist of the following members, namely:-

(a)

the Minister in-charge of the Ministry or Department of the Central Government having administrative control of the

Bureau who shall be ex officio President of the Bureau;

(b)

the Minister of State or a Deputy Minister, if any, in the Ministry or Department of the Central Government having

administrative control of the Bureau who shall be ex officio Vice-President of the Bureau, and where there is no such

Minister of State or Deputy Minister, such person as may be nominated by the Central Government to be the Vice-

President of the Bureau;

(c)

the Secretary to the Government of India of the Ministry or Department of the Central Government having administrative

control of the Bureau, ex officio;

(d)

the Director General of the Bureau, ex officio;

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(e)

such number of other persons to represent the Government, industry, scientific and research institutions, consumers

and other interests, as may be prescribed, to be appointed by the Central Government.

(4) The term of office of the members referred to in clause (e) of sub-section (3) and the manner of filling vacancies among, and

the procedure to be followed in the discharge of their functions by the members, shall be such as may be prescribed:

Provided that a member, other than an ex officio member of the Bureau of Indian Standards constituted under the Bureau of

Indian Standards Act, 1986, (63 of 1986) shall, after the commencement of this Act, continue to hold such office as member till the

completion of his term.

(5) The Governing Council may associate with itself, in such manner and for such purposes as may be prescribed, any person

whose assistance or advice it may desire in complying with any of the provisions of this Act and a person so associated shall have the

right to take part in the discussions of the Governing Council relevant to the purposes for which he has been associated but shall not

have the right to vote.

(6) The Governing Council may, by general or special order in writing, delegate to any member, the Director General or any

other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act except

the powers under section 37 as it may deem necessary.

4. Executive Committee of Bureau. (1) The Governing Council may, with the prior approval of the Central Government, by

notification in the Official Gazette, constitute an Executive Committee which shall consist of the following members, namely:-

(a) Director General of the Bureau, who shall be its ex officio Chairman; and

(b) such number of members, as may be prescribed.

(2) The Executive Committee constituted under sub-section (1) shall perform, exercise and discharge such functions, powers

and duties of the Bureau, as may be delegated to it by the Governing Council.

5. Advisory Committees of Bureau. (1) Subject to any regulations made in this behalf, the Governing Council may, from time

to time and as and when it is considered necessary, constitute the following Advisory Committees for the efficient discharge of the

functions of the Bureau, namely: -

(a)

Finance Advisory Committee;

(b)

Conformity Assessment Advisory Committee;

(c)

Standards Advisory Committee;

(d)

Testing and Calibration Advisory Committee; and

(e)

such number of other committees as may be specified by regulations.

(2) Each Advisory Committee shall consist of a Chairman and such other members as may be specified by regulations.

6. Vacancies, etc., not to invalidate act or proceedings. No act or proceedings of the Governing Council, under section 3

shall be invalid merely by reason of-

(a)

any vacancy in, or any defect in the constitution of the Governing Council; or

(b)

any defect in the appointment of a person acting as a member of the Governing Council; or

(c)

any irregularity in the procedure of the Governing Council not affecting the merits of the case.

7. Director General. (1) The Central Government shall appoint a Director General of the Bureau.

(2) The terms and conditions of service of the Director General of the Bureau shall be such as may be prescribed.

(3) Subject to the general superintendence and control of the Governing Council, the Director General of the Bureau shall be the

Chief Executive Authority of the Bureau.

(4) The Director General of the Bureau shall exercise and discharge such of the powers and duties of the Bureau as may be

specified by regulations.

(5) The Director General may, by general or special order in writing, delegate to any officer of the Bureau subject to such

conditions, if any, as may be specified in the order, such of his powers and functions as are assigned to him under the regulations or are

delegated to him by the Governing Council, as he may deem necessary.

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8. Officers and employees of Bureau. (1) The Bureau may appoint such other officers and employees as it considers

necessary for the efficient discharge of its functions under this Act.

(2) The terms and conditions of service of officers and employees of the Bureau appointed under sub-section (1) shall be such

as may be specified by regulations.

9. Powers and functions of Bureau. (1) The powers and duties as may be assigned to the Bureau under this Act shall be

exercised and performed by the Governing Council and, in particular, such powers may include the power to-

(a)

establish branches, offices or agencies in India or outside;

(b)

recognise, on reciprocal basis or otherwise, with the prior approval of the Central Government, the mark of any

international body or institution, on such terms and conditions as may be mutually agreed upon by the Bureau in relation

to any goods, article, process, system or service at par with the Standard Mark for such goods, article, process, system

or service;

(c)

seek recognition of the Bureau and of the Indian Standards outside India on such terms and conditions as may be

mutually agreed upon by the Bureau with any corresponding institution or organisation in any country or with any

international organisation;

(d)

enter into and search places, premises or vehicles, and inspect and seize goods or articles and documents to enforce

the provisions of this Act;

(e)

provide services to manufacturers and consumers of goods or articles or processes for compliances of standards on

such terms and conditions as may be mutually agreed upon;

(f)

provide training services in relation to quality management, standards, conformity assessment, laboratory testing and

calibration, and any other related areas;

(g)

publish Indian Standards and sell such publications and publications of international bodies;

(h)

authorise agencies in India or outside India for carrying out any or all activities of the Bureau and such other purposes

as may be necessary on such terms and conditions as it deems fit;

(i)

obtain membership in regional, international and foreign bodies having objects similar to that of the Bureau and

participate in international standards setting process;

(j)

undertake testing of samples for purposes other than for conformity assessment; and

(k)

undertake activities relating to legal metrology.

(2) The Bureau shall take all necessary steps for promotion, monitoring and management of the quality of goods, articles,

processes, systems and services, as may be necessary, to protect the interests of consumers and various other stake holders which

may include the following namely:-

(a)

carrying out market surveillance or survey of any goods, article, process, system or service to monitor their quality and

publish findings of such surveillance or surveys;

(b)

promotion of quality in connection with any goods, article, process, system or service by creating awareness among the

consumers and the industry and educate them about quality and standards in connection with any goods, article,

process, system and service;

(c)

promotion of safety in connection with any goods, article, process, system or service;

(d)

identification of any goods, articles, process, system or service for which there is a need to establish a new Indian

Standard, or to revise an existing Indian Standard;

(e)

promoting the use of Indian Standards;

(f)

recognising or accrediting any institution in India or outside which is engaged in conformity certification and inspection of

any goods, article, process, system or service or of testing laboratories;

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(g)

coordination and promotion of activities of any association of manufacturers or consumers or any other body in relation

to improvement in the quality or in the implementation of any quality assurance activities in relation to any goods, article,

process, system or service; and

(h)

such other functions as may be necessary for promotion, monitoring and management of the quality of goods, articles,

processes, systems and services and to protect the interests of consumers and other stake holders.

(3) The Bureau shall perform its functions under this section through the Governing Council in accordance with the direction and

subject to such rules as may be made by the Central Government.

CHAPTER III

INDIAN STANDARDS, CERTIFICATION AND LICENCE

10. Indian Standards. (1) The standards established by the Bureau shall be the Indian Standards.

(2) The Bureau may-

(a)

establish, publish, review and promote the Indian Standard, in relation to any goods, article, process, system or service

in such manner as may be prescribed;

(b)

adopt as Indian Standard, any standard, established by any other Institution in India or elsewhere, in relation to any

goods, article, process, system or service in such manner as may be prescribed;

(c)

recognise or accredit any institution in India or outside which is engaged in standardisation;

(d)

undertake, support and promote such research as may be necessary for formulation of Indian Standards.

(3) The Bureau, for the purpose of this section, shall constitute, as and when considered necessary, such number of technical

committees of experts for the formulation of standards in respect of goods, articles, processes, systems or services, as may be

necessary.

(4) The Indian Standard shall be notified and remain valid till withdrawn by the Bureau.

(5) Notwithstanding anything contained in any other law, the copyright in an Indian Standard or any other publication of the

Bureau shall vest in the Bureau.

11. Prohibition to publish, reproduce or record without authorisation by Bureau. (1) No individual shall, without the

authorisation of the Bureau, in any manner or form, publish, reproduce or record any Indian Standard or part thereof, or any other

publication of the Bureau.

(2) No person shall issue a document that creates, or may create the impression that it is or contains an Indian Standard, as

contemplated in this Act:

Provided that nothing in this sub-section shall prevent any individual from making a copy of Indian Standard for his personal

use.

12. Conformity Assessment scheme. (1) The Bureau may notify a specific or different conformity assessment scheme for any

goods, article, process, system or service or for a group of goods, articles, processes, systems or services, as the case may be, with

respect to any Indian Standard or any other standard in a manner as may be specified by regulations.

(2) The Bureau may establish a Standard Mark in relation to each of its conformity assessment schemes, which shall be of such

design and contain such particulars as may be specified by regulations to represent a particular standard.

13. Grant of licence or certificate of conformity. (1) A person may apply for grant of licence or certificate of conformity, as the

case may be, if the goods, article, process, system or service conforms to an Indian Standard.

(2) Where any goods, article, process, system or service conforms to a standard, the Director General may, by an order, grant-

(a) a certificate of conformity in a manner as may be specified by regulations; or

(b) a licence to use or apply a Standard Mark in a manner as may be specified by regulations,

subject to such conditions and on payment of such fees, including late fee or fine, before or during the operation of the certificate of

conformity or licence, and as determined by regulations.

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(3) While granting a certificate of conformity or licence to use a Standard Mark, the Bureau may, by order, specify the marking

and labelling requirements that shall necessarily be affixed as may be specified from time to time.

(4) The Bureau may establish, maintain or recognise testing laboratories for the purposes of conformity assessment and quality

assurance and for such other purposes as may be required for carrying out its functions.

14. Certification of Standard Mark of jewellers and sellers of certain specified goods or articles. (1) The Central

Government, after consulting the Bureau, may notify precious metal articles or other goods or articles as it may consider necessary, to

be marked with a Hallmark or Standard Mark, as the case may be, in a manner as specified in sub-section (2).

(2) The goods or articles notified in sub-section (1) may be sold through retail outlets certified by the Bureau after such goods or

articles have been assessed for conformity to the relevant standard by testing and marking centre, recognised by the Bureau and

marked with Hallmark or Standard Mark, as the case may be, as specified by regulations.

(3) The Central Government may, after consulting the Bureau, by an order published in the Official Gazette, make it compulsory

for the sellers of goods or article notified under sub-section (1) to be sold only through certified sales outlets fulfilling such conditions as

may be determined by regulations.

(4) The Bureau may, by an order, grant, renew, suspend or cancel certification of Standard Mark or Hallmark of a jeweller or any

other seller for sale of goods or articles notified under sub-section (1) in such manner as may be determined by regulations.

(5) The Bureau may establish, maintain and recognise testing and marking centres, including assaying and hallmarking centres,

for conformity assessment and application of Standard Mark, including Hallmark, on goods or articles notified under sub-section (1), in a

manner as may be specified by regulations.

(6) No testing and marking centre or assaying and hallmarking centre, other than the recognised by the Bureau, shall with

respect to goods or articles notified under sub-section (1), use, affix, emboss, engrave, print or apply in any manner the Standard Mark,

including the Hallmark, or colourable imitation thereof, on any goods or article; and make any claim in relation to the use and application

of a Standard Mark, including the Hallmark, through advertisements, sales promotion leaflets, price lists or the like.

(7) Every recognised testing and marking centre, including assaying and hallmarking centre, shall use or apply Standard Mark

on good or articles notified under sub-section (1), including Hallmark on precious metal articles, after accurately determining the

conformity of the same in a manner as may be specified.

(8) No recognised testing and marking centre, including assaying and hallmarking centre, shall, notwithstanding that it has been

recognised under sub-section (5), use or apply in relation to any goods or article notified under sub-section (1) a Standard Mark,

including Hallmark, or any colourable imitation thereof, unless such goods or article conforms to the relevant standard.

15. Prohibition to import, sell, exhi bit, etc. (1) No person shall import, distribute, sell, store or exhibit for sale, any goods or

article under sub-section (1) of section 14, except under certification from the Bureau.

(2) No person, other than that certified by the Bureau, shall sell or display or offer to sell goods or articles that are notified under

sub-section (3) of section 14 and marked with the Standard Mark, including Hallmark and claim in relation to the Standard Mark,

including Hallmark, through advertisements, sales promotion leaflets, price lists or the like.

(3) No certified jeweller or seller shall sell or display or offer to sell any notified goods or articles, notwithstanding that he has

been granted certification, with the Standard Mark, including Hallmark, or any colourable imitation thereof, unless such goods or article

is marked with a Standard Mark or Hallmark, in a manner as may be specified by regulations, and unless such goods or article conforms

to the relevant standard.

16. Central Government to direct compulsory use of Standard Mark. (1) If the Central Government is of the opinion that it is

necessary or expedient so to do in the public interest or for the protection of human, animal or plant health, safety of the environment, or

prevention of unfair trade practices, or national security, it may, after consulting the Bureau, by an order published in the Official

Gazette, notify-

(a)

goods or article of any scheduled industry, process, system or service; or

(b)

essential requirements to which such goods, article, process, system or service,

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which shall conform to a standard and direct the use of the Standard Mark under a licence or certificate of conformity as compulsory on

such goods, article, process, system or service.

Explanation.-For the purpose of this sub-section,-

(i)

the expression "scheduled industry" shall have the meaning assigned to it in the Industries (Development and

Regulation) Act, 1951; (65 of 1951)

(ii)

it is hereby clarified that essential requirements are requirements, expressed in terms of the parameters to be

achieved or requirements of standard in technical terms that effectively ensure that any goods, article, process,

system or service meet the objective of health, safety and environment.

(2) The Central Government may, by an order authorise Bureau or any other agency having necessary accreditation or

recognition and valid approval to certify and enforce conformity to the relevant standard or prescribed essential requirements under sub-

section (1).

17. Prohibition to manufacture, sell, etc., certain goods without Standard Mark. (1) No person shall manufacture, import,

distribute, sell, hire, lease, store or exhibit for sale any such goods, article, process, system or service under sub-section (1) of

section 16-

(a)

without a Standard Mark, except under a valid licence; or

(b)

notwithstanding that he has been granted a licence, apply a Standard Mark, unless such goods, article, process, system

or service conforms to the relevant standard or prescribed essential requirements.

(2) No person shall make a public claim, through advertisements, sales promotion leaflets, price lists or the like, that his goods,

article, process, system or service conforms to an Indian standard or make such a declaration on the goods or article, without having a

valid certificate of conformity or licence from the Bureau or any other authority approved by the Central Government under sub-section

(2) of section 16.

(3) No person shall use or apply or purport to use or apply in any manner, in the manufacture, distribution, sale, hire, lease or

exhibit or offer for sale of any goods, article, process, system or service, or in the title of any patent or in any trade mark or design, a

Standard Mark or any colourable imitation thereof, except under a valid licence from the Bureau.

18. Obligations of licence holder, seller, etc. (1) The licence holder shall, at all times, remain responsible for conformance of

the goods, articles, processes, systems or services carrying the Standard Mark.

(2) It shall be the responsibility of the distributor or the seller, as the case may be, to ensure that goods, articles, processes,

systems or services carrying the Standard Mark are purchased from certified body or licence holder.

(3) It shall be the responsibility of the seller before the goods or article is sold or offered to be sold or exhibited or offered for sale

to ensure that-

(a)

goods, articles, processes, systems or services carrying the Standard Mark bear the requisite labels and marking

details, as specified by the Bureau from time to time;

(b)

the marking and labelling requirements on the product or covering is displayed in a manner that has been specified

by the Bureau.

(4) Every certified body or licence holder shall supply to the Bureau with such information and with such samples of any material

or substance used in relation to any goods, article, process, system or service, as the case may be, as the Bureau may require for

monitoring its quality and for the recovery of the fee as may be prescribed in the certificate of conformity or the licence.

(5) (a) The Bureau may make such inspection and take such samples of any material or substance as may be necessary to see

whether any goods, article, process, system or service, in relation to which a Standard Mark has been used, conforms to the

requirements of the relevant standard or whether the Standard Mark has been properly used in relation to any goods, article, process,

system or service with or without a licence.

(b) The Bureau may publicise the results of its findings and the directions given in pursuance thereof.

(6) If the Bureau is satisfied under the provisions of sub-sections (4) and (5) that the goods, articles, processes, systems or

services in relation to which a Standard Mark has been used do not conform to the requirements of the relevant standard, the Bureau

may direct the certified body or licence holder or his representative to stop the supply and sale of non-conforming goods or articles and

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recall the non -conforming goods or articles that have already been supplied or offered for sale and bear such mark from the market or

any such place from where they are likely to be offered for sale or prohibit to provide the service.

(7) Where a certified body or licence holder or his representative has sold goods, articles, processes, system or services, which

bear a Standard Mark or any colourable imitation thereof, which do not conform to the relevant standard, the Bureau shall direct the

certified body or licence holder or his representative to-

(a)

repair or replace or reprocess the standard marked goods, article, process, system or service in a manner as may

be specified; or

(b)

pay compensation to the consumer as may be prescribed by the Bureau; or

(c)

be liable for the injury caused by non-conforming goods or article, which bears a Standard Mark, as per the

provisions of section 31.

CHAPTER IV

FINANCE, ACCOUNTS AND AUDIT

19. Financial Management of Bureau of Indian Standards. The Central Government may, after due appropriation made by

Parliament by law in this behalf, make to the Bureau grants and loans of such sums of money as the Government may consider

necessary.

20. Fund of Bureau. (1) There shall be constituted a fund to be called the Bureau of Indian Standards fund and there shall be

credited thereto-

(a)

any grants and loans made to the Bureau by the Central Government;

(b)

all fees and charges received by the Bureau under this Act;

(c)

all fines received by the Bureau;

(d)

all sums received by the Bureau from such other sources as may be decided upon by the Central Government.

(2) The fund shall be applied for meeting-

(a)

the salary, allowances and other remuneration of the members, Director General, officers and other employees of

the Bureau;

(b)

expenses of the Bureau in the discharge of its functions under the Act; and

(c)

expenses on objects and for purposes authorised by this Act:

Provided that the fines received in clause (c) of sub-section (1) shall be used for consumer awareness, consumer protection and

promotion of quality of goods, articles, processes, system or services in the country.

21. Borrowing powers of Bureau. (1) The Bureau may, with the consent of the Central Government or in accordance with the

terms of any general or special authority given to it by the Central Government, borrow money from any source as it may deem fit for

discharging all or any of its functions under this Act.

(2) The Central Government may guarantee in such manner as it thinks fit, the repayment of the principal and the payment of

interest thereon with respect to the loans borrowed by Bureau under sub-section (1).

22. Budget. The Bureau shall prepare, in such form and at such time in each financial year as

may be prescribed, its budget for the next financial year, showing the estimated receipts and expenditure of the Bureau and forward the

same to the Central Government.

23. Annual report. (1) The Bureau shall prepare, in such form and at such time in each financial year as may be prescribed, its

annual report, giving a full account of its activities during the previous financial year, and submit a copy thereof to the Central

Government.

(2) The Central Government shall cause the annual report to be laid, as soon as may be after it is received, before each House

of Parliament.

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24. Accounts and audit. (1) The Bureau shall maintain proper accounts and other relevant records and prepare an annual

statement of accounts, in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-

General of India.

(2) The accounts of the Bureau 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 Bureau 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 Bureau shall have the same rights and privileges and the authority in connection with such audit as the Comptroller and

Auditor¬General of India generally has in connection with the audit of 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 office of the

Bureau.

(4) The accounts of the Bureau 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 that Government

shall cause the same to be laid before each House of Parliament.

CHAPTER V

MISCELLANEOUS

25. Power of Central Government to Issue directions. (1) Without prejudice to the foregoing provisions of this Act, the

Bureau shall, in the exercise of its powers or the performance of its functions under this Act, be bound by such directions on questions

of policy as the Central Government may give in writing to it from time to time:

Provided that the Bureau shall, as far as practicable, be given an opportunity to express its 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.

(3) The Central Government may take such other action as may be necessary for the promotion, monitoring and management of

quality of goods, articles, processes, systems and services and to protect the interests of consumers and various other stakeholders

and notify any other goods, articles, processes, systems and services for the purpose of sub-section (1) of section 16.

26. Restriction on use of name of Bureau and Indian Standard. (1) No person shall, with a view to deceive or likely to

deceive the public, use without the previous permission of the Bureau,-

(a)

any name which so nearly resembles the name of the Bureau as to deceive or likely to deceive the public or the

name which contains the expression "Indian Standard" or any abbreviation thereof; or

(b)

any title of any patent or mark or trade mark or design, in relation to any goods, article, process, system or service,

containing the expressions "Indian Standard" or "Indian Standard Specification" or any abbreviation of such

expressions.

(2) Notwithstanding anything contained in any law for the time being in force, no registering authority shall-

(a)

(b)

(c)

grant a patent, in respect of an invention, which bears a title containing any name or mark,

if the use of such name or mark is in contravention of sub-section (1).

(3) If any question arises before a registering authority whether the use of any name or mark is in contravention of sub-section

(1), the registering authority may refer the question to the Central Government whose decision thereon shall be final.

27. Appointment and powers of certification officers. (1) The Bureau may appoint as many certification officers as may be

necessary for the purpose of inspection whether any goods, article, process, system or service in relation to which the Standard Mark

has been used conforms to the relevant standard or whether the Standard Mark has been properly used in relation to any goods, article,

process, system or service with or without licence, and for performing such other functions as may be assigned to them.

(2) Subject to any rules made under this Act, a certification officer shall have power to-

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(a)

inspect any operation carried on in connection with any goods, article, process, system or service in relation to

which the Standard Mark has been used; and

(b)

take samples of any goods or article or of any material or substance used in any goods, article, process, system or

service, in relation to which the Standard Mark has been used.

(3) Every certification officer shall be furnished by the Bureau with a certificate of appointment as a certification officer, and the

certificate shall, on demand, be produced by the certification officer.

(4) Every certified body or licence holder shall-

(a)

provide reasonable facilities to certification officer to enable him to discharge the duties imposed on him;

(b)

inform certification officer or the Bureau of any change in the conditions which were declared or verified by the

certification officer or the Bureau at the time of grant of certificate of conformity or licence.

(5) Any information obtained by a certification officer or the Bureau from any statement made or information supplied or any

evidence given or from inspection made under the provisions of this Act shall be treated as confidential:

Provided that nothing shall apply to the disclosure of any information for the purpose of prosecution and protection of interest of

consumers.

28. Power to search and seizure. (1) If the certification officer has reason to believe that any goods or articles, process,

system or service in relation to which the contravention of section 11 or sub-sections (6) or (8) of section 14 or section 15 or section 17

has taken place are secreted in any place, premises or vehicle, he may enter into and search such place, premises or vehicle for such

goods or articles, process, system or service, as the case may be.

(2) Where, as a result of any search made under sub-section (1), any goods or article, process, system or service has been

found in relation to which contravention of section 11 or sub-sections (6) or (8) of section 14 or section 15 or section 17 has taken place,

the certification officer may seize such goods or article and other material and documents which, in his opinion will be useful for, or

relevant to any proceeding under this Act:

Provided that where it is not practicable to seize any such goods or article or material or document, the certification officer may

serve on the owner an order that he shall not remove, part with, or otherwise deal with, the goods or article or material or document

except with the previous permission of the certification officer.

(3) The provision of the Code of Criminal Procedure, 1973, (2 of 1974) relating to searches and seizures shall, so far as may be,

apply to every search or seizure made under this section.

29. Penalty for contravention. (1) Any person who contravenes the provisions of section 11 or sub-section (1) of section 26

shall be punishable with fine which may extend to five lakh rupees.

(2) Any person who contravenes the provisions of sub-sections (6) or (8) of section 14 or section 15 shall be punishable with

imprisonment for a term which may extend to one year or with fine which shall not be less than one lakh rupees, but may extend up to

five times the value of goods or articles produced or sold or offered to be sold or affixed or applied with a Standard Mark including

Hallmark, or with both:

Provided that where the value of goods or articles produced or sold or offered to be sold cannot be determined, it shall be

presumed that one year's production was in such contravention and the annual turnover in the previous financial year shall be taken as

the value of goods or articles for such contravention.

(3) Any person who contravenes the provisions of section 17 shall be punishable with imprisonment for a term which may

extend up to two years or with fine which shall not be less than two lakh rupees for the first contravention and not be less than five lakh

rupees for the second and subsequent contraventions, but may extend up to ten times the value of goods or articles produced or sold or

offered to be sold or affixed or applied with a Standard Mark, including Hallmark, or with both:

Provided that where the value of goods or articles produced or sold or offered to be sold cannot be determined, it shall be

presumed that one year's production was in such contravention and the annual turnover in the previous financial year shall be taken as

the value of goods or articles for such contravention.

(4) The offence under sub-section (3) shall be cognizable.

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30. Offences by companies. Where an offence under this Act has been committed by a company, every director, manager,

secretary or other officer of the company who, at the time the offence was committed, was in charge of and was responsible to the

company for the conduct of the business of the company, or authorised representative 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, irrespective of the fact that the

offence has been committed with or without 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, or authorised representative of the company.

Explanation.-For the purposes of this section,-

(a)

"company" means a body corporate and includes a firm or other association of individuals; and

(b)

"director", in relation to a firm, means a partner in the firm.

31. Compensation for non-conforming goods. Where a holder of licence or certificate of conformity or his representative has

sold any goods, article, process, system or service, which bears a Standard Mark not conforming to the relevant standard, or with

colourable imitation, the certified body or licence holder or his representative shall be liable to compensate the consumer for the injury

caused by such non-conforming goods, article, process, system or service in such manner as may be prescribed.

32. Cognizance of offence by courts. (1) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the

first class, specially empowered in this behalf, shall try any offence punishable under this Act.

(2) No court shall take cognizance of any offence punishable under this Act save on a complaint made by-

(a)

or under the authority of the Bureau; or

(b)

any police officer, not below the rank of deputy superintendent of police or equivalent; or

(c)

any authority notified under sub-section (2) of section 16; or

(d)

any officer empowered under the authority of the Government; or (e) any consumer; or

(f)

any association.

(3) Any police officer not below the rank of deputy superintendent of police or equivalent, may, if he is satisfied that any of the

offences referred to in sub-section (3) of section 29 has been, is being, or is likely to be, committed, search and seize without warrant,

the goods, die, block, machine, plate, other instruments or things involved in committing the offence, wherever found, and all the articles

so seized shall, as soon as practicable, be produced before a Magistrate as prescribed under sub-section (1).

(4) The court may direct that any property in respect of which the contravention has taken place shall be forfeited to the Bureau.

(5) The court may direct that any fine, in whole or any part thereof, payable under the provisions of this Act, shall be payable to

the Bureau.

33. Compounding of offence. (1) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, (2 of 1974)

any offence committed for the first time, punishable under this Act, not being an offence punishable with imprisonment only, or with

imprisonment and also with fine, may, either before or after the institution of any prosecution, be compounded by an officer so

authorised by the Director General, in such manner as may be prescribed:

Provided that the sum so specified shall not in any case exceed the maximum amount of the fine which may be imposed under

section 29 for the offence so compounded; and any second or subsequent offence committed after the expiry of a period of three years

from the date on which the offence was previously compounded shall be deemed to be an offence committed for the first time.

(2) 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 Bureau.

(3) Every application for the compounding of an offence shall be made in such manner as may be prescribed.

(4) 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.

(5) Where the composition of any offence is made after the institution of any prosecution, such composition shall be brought to

the notice of the court in which the prosecution is pending in writing by the officer referred to in sub-section (1), and on such notice of

the composition of the offence being given and its acceptance by the court, the person against whom the offence is so compounded

shall be discharged.

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34. Appeal. (1) Any person aggrieved by an order made under section 13 or sub-section (4) of section 14 or section 17 of this

Act may prefer an appeal to Director General ofthe Bureau within such period as prescribed.

(2) No appeal shall be admitted if it is preferred after the expiry of the period prescribed therefor:

Provided that an appeal may be admitted after the expiry of the period prescribed therefor if the appellant satisfies the Director

General that he had sufficient cause for not preferring the appeal within the prescribed period.

(3) Every appeal made under this section shall be made in such form and shall be accompanied by a copy of the order

appealed against and by such fees as may be prescribed.

(4) The procedure for disposing of an appeal shall be such as may be prescribed:

Provided that before disposing of an appeal, the appellant shall be given a reasonable opportunity of being heard.

(5) The Director General may suo motu or on an application made in the manner prescribed review the order passed by any

officer to whom the power has been delegated by him.

(6) Any person aggrieved by an order made under sub-section (1) or sub-section (5) may prefer an appeal to the Central

Government having administrative control of the Bureau within such period as may be prescribed.

35. Members, officers and employees of Bureau to be public servants. All members, officers and other employees of the

Bureau 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. (45 of 1860)

36. Protection of action taken in good faith. No suit, prosecution or other legal proceeding shall lie against the Government or

any officer of the Government or any member, officer or other employee of the Bureau for anything which is in done or intended to be

done in good faith under this Act or the rules or regulations made thereunder.

37. Autbentication of orders and other instruments of Bureau. All orders and decisions of, and all other instruments issued

by, the Bureau shall be authenticated by the signature of such officer or officers as may be authorised by the Bureau in this behalf.

38. Power to make rules. The Central Government may, by notification in the Official Gazette, make rules for carrying out the

purposes of this Act.

39. Power to make regulations. The Executive Committee may, with the previous approval of the Central Government, by

notification in the Official Gazette, make regulations consistent with this Act and the rules to carry out the purposes of this Act.

40. Rules and regulations to be laid before Parliament. Every rule and every regulation made under this Act shall be laid, as

soon as may be after it is made, before each House of Parliament, while 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.

41. Act not to affect operation of certain Acts. Nothing in this Act shall affect the operation of the Agricultural Produce

(Grading and Marking) Act, 1937 (1 of 1937) or the Drugs and Cosmetics Act, 1940, (23 of 1940) or any other law for the time being in

force, which deals with any standardisation or quality control of any goods, article, process, system or service.

42. Power to remove difficulties. (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

be necessary for removing the difficulty:

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

43. Repeal and savings. (1) The Bureau of Indian Standards Act, 1986 (63 of 1986) is hereby repealed.

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(2) Notwithstanding such repeal, anything done or any action taken or purported to have done or taken including any rule,

regulation, notification, scheme, specification, Indian Standard, Standard Mark, inspection order or notice made, issued or adopted, or

any appointment, or declaration made or any licence, permission, authorisation or exemption granted or any document or instrument

executed or direction given or any proceedings taken or any penalty or fine imposed under the Act hereby repealed shall, insofar as it is

not inconsistent with the provisions of this Act, be deemed to have been done or taken under the corresponding provisions of this Act.

(3) The mention of particular matters in sub-section (2) shall not be held to prejudice or affect the general application of section

6 of the General Clauses Act, 1897 (10 of 1897) with regard to the effect of repeal.

DR. REETA VASISHTA,

Additional Secretary to the Govt. of India.

P.R. 03

SC - 20

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R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19

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