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1The Orissa Kendu
Leaves (Control of Trade) Rules 1962
(The 6th January 1962)
No 558-CF-In exercise of the powers conferred
by Section 18, of the Orissa Kendu Leaves (Cont,rol of Trade)
Act, 1961 (Orissa Act 28 of 1961) the State Government do
hereby make the following rules, 'namely:
1. Short Title and Commencement-
(1) These rules may be called The Orissa
Kendu Leaves (Control of Trade) Rules, 1962.
(2) They shall come into force at once.
2. Definitions-ln these rules unless the
context otherwise 'requires-
(a) Act means the Orissa Kendu Leaves (Control
of Trade) Act, 1961 (28 of 1961);
(b) Divisional Forest Officer means the Forest Officer in
charge of a Forest Division in which the unit is situated
and shall include 'District Forest Officer' as defined in
Section 2 of the Madras Forest Act, 1882 (Madras Act 5 of
1832) and shall also include any other Forest Officer specially
authorised by the State Government to discharge any or all
of the functions under the Act or these Rules;
(c) Form means a form appended to these Rules;
(d) Section means a section of the Act;
(e) All other words and expressions used but not defined
in the Act;
3. Publication of Prices-Prices fixed under
Sub-section (1) of
Section 4 shall be published in the Official Gazette and a
copy thereof in the Oriya language shall be published in at
least two of the important daily newspapers of the State.
4. Procedure for holding Enquiry-
(1) On receipt of a 'reference under Sub-section
(2) or (3) of Section 7, the Officer holding the enquiry
shall, as soon as may be, intim3te the place, date and time
fixed for holding the enquiry to the parties concerned by
a notice in writing delivered to them personally or sent
to them by registered post with acknowledgement due.
(2) On the date as aforesaid or on any subsequent day to
which- the enquiry may have been adjourned such officer
shall, after hearing the parties who may appear before him
either personally or through a duly authorised agent, recording
the evidence, if any, adduced by them and- after making
such further enquiry in the locality as he deems necessary
pass such orders as he deems fit and the orders so passed
shall be communicated to the parties concerned in the same
manner as is provided for service of notice under Sub-rule
( 1).
(3) Damages or collection charges directed to be paid under
Sub ' section (2) or, as the case may be, Sub-section (3)
of Section 7 shall be paid within one month from the receipt
of the order under Sub-rule (2 by the Government or their
authorised officer or agent, as the case may be.
5. Registrition of Grower of Kendu Leaves-1An
application- for registration under Section 9 shall be in
Form A, accompanied by a treasury chalan showing payment of
2[rupees ten only in the case of a. grower who has not registered
himself in the previous year and rupees. three 9nly in the
case of a grower who has registered himself in the- previous
year and filed before the Divisional Forest Officer within
whose- jurisdiction the land on which Kendu Plants grow is
situated. If land IS- situated in more than one Division,
then application may be to the Divisional Forest Officer in
whose jurisdiction the greater area is situated. The Divisional
Forest Officer may after enquiry if necessary shall grant
a. certificate in Form B, or shall reject the application
after recording reason therefore. In case of registered grower
having land in the jurisdictions of other Divisional Forest
Officer, the Divisional Forest Officer issuing; registration
certificate shall inform the other Divisional Forest Officers
" about the fact of registration.]
3[5 A. (3) Every registered grower shall maintain
a register, daily accounts of Kendu leaves showing correcty-
1. Substituted by 0. G. P. III P. 409 of 1964.
2. Inserted by 0. G. E. r-Jo. 529, Dt. 21-2-1969.
3. Added by 0. G. P. III P. 409 of 1994
(a) the opening stock on each day
(b) the q:Jantity collected on each day (c) total of (a)
and (b)
(d) the quantity disposed of (e) manner of disposal (f)
balance
(g) places where the balance stock has been stored with
quantities thereof
(h) remarks
(b) He shall submit before the Divisional Forest Officer
granting -the registration certificate not latter than fifteenth
day of each month a return showing correctly -
(a) the opening stock on the 1st of the month
(b) the quantity collected during the moth
(c) total of (a) and (b)
(d) the quantity disposed of
(e) manner of disposal
(f) balance.
1[5.8 Disposal of Kendu leaves- (1) Kendu
leaves collected by purchaser or otherwise by the Gavernment
direct or through their officers or agents, shall ordinarily
be sold by entering into a contract in advance for which tenders
shall be invited:
Provided that the Government may without inviting
tender sell the leaves of one or more units directly to the
Orissa Forest Corporation Limited on such terms and conditions
as may be decided by Government.
(2) The tender notice shall be published in
the Official Gazette and advertised in newspaper and in such
other manner as the Government my deem fit inviting sealed
tenders from persons or parties desirous of purchasing Kendu
leaves from the Government or from its officers or agents
on the terms and conditions specified in the aforesaid tender
notice.
1. Added by O.G.E. No. 529, Dt. 21-2-1969
(3) The tender form shall be available from the office of
the Divisional Forest Officer on payment of Rs. 25/ (Rupees
twenty-five) Added by 0, G. E. No.529, Dt 21-2-1969 for each
form. The payment shall De made by sending a Crossed Postal.
Order for the amount marked, payable to the Divisional Forest
Officer at the post office of the place the headquarters of
he Divisional Forest: Officer, is located.
(4) Unless otherwise specified there shall be separate tender~
for each unit and every tender must be submitted to such authority
and in such manner and on such date, as may be specified in
the tender notice.
(5) Every tender shall be accompanied by a treasury chalan
shoowing cash deposit under the head "Earnest Money-Revenue
Deposit' equal to an amount specified in the tender notice
to be deposited as, earnest money in favour of the Divisional
Forest Officer.
(6) At the time of opening of the tenders the tenderers shall
produce a certificate of solvency for at least one-fourth
of the total annual purchase price according to the rate quoted
by him granted by Revenue Officer not below the rank of a
Subdivisonal Officer if the tenderer has landed property at
a place wherein the Orissa Public Demands Recovery Act, 1962
is in force or a Bank Guarantee for an equal amount.
(7) Government may accept or reject all or
any of the tenders so received for ally unit without assigning
any reason therefor. The earnest money deposit shall in case
of an unsuccessful tenderer, be refunded to him and in case
of an unsuccessful tenderer, it shall, subject to the provisions
under Sub-rule (11), be adjusted towards payment of security
deposit required by Sub-rule (12):
Provided that in rejecting a tender Government shall take
into consideration the following among other grounds-
( 1) Inadequacy of price offered (2) Speculative
offers
(3) Past conduct of parties in the trade
(4) Transport facilities at the command of the offerer
(5) Solvency of the offered
(6) Experience in the trade
(8) If the tenders received for a unit are not considered
acceptable the Government may select as purchaser or purchasers
for such unit or units any person or party of the persons
or parties on such terms and conditions as may be mutualty
agreed upon and such selection need not be limited to person
who have submitted tenders for such unit or units. All the
rules applicable to a successful tenderer shall apply 91utatis
mutandis to persons or parties selected as purchasers under
this sub-rule.
(9) Notwithstanding anything contained in the foregoing
provisions Government may sell or otherwise dispose of Kendu
leaves collected by purchase or otherwise by Government
or by their officers or agents in such manner as Government
may deem proper.
(10) Any person or party who is selected as purchaser for
the particular unit shall purchase the entire Quantity of
Kendu leaves procured or likely to be procured from such
unit or such lesser quantity out of it as may be offere.1
to him by the Government, their efficers or agents in such
unit or such terms and conditions as may be specified in
the agreement to be executed by such purchaser under Sub-rule
(11).
(11) The purchaser shall execute an agreement in Form H,
within fifteen days from the date of receipt of an order
relating to his selection as purchaser, failing which the
said order of selection shall be liable to be cancelled
and on such cancellation the amount deposited as earnest
money shall be forfeited. On such cancellation Government
may dispose of the Kendu leaves of the unit under Sub-rule
(9) of this Rule. In addition the purchaser, whose selection
as such has been cancelled bear the loss, if any, suffered
by Government in the disposal of Kendu leaves of the unit
and this loss shall be recoverable from him as arrears of
land revenue.
(12) (a) the purchaser or purchasers selected for a particular
unit shall immediately, on or before signing the agreement
deposit as secutiry by way of guarantee for proper compliance
of the terms and conditions or the agreement and provisions
of the Act and these Rules, a sum to be calculated as under-
X-Purchase rate per standard bag accepted by the Government
for the unit.
Y-Cost of collection per standard bag fixed for the unit.
R-Number of standard bags of Kendu leaves mentioned against
the unit in the notice for tender under Sub-rule (1).
A-Security deposits.
A= 5Z(X-Y)/100
i.e,, five per cent of the difference between aforesaid
purchase rate per bag and the aforesaid cost of collection
per bag, multiplied by the aforesaid number of bags.
(b) The security deposit either wholly or in part, as the
case may be, shall be adjusted by the Divisional Forest
Officer towards any amount, if any, recoverable from the
purchaser under the provisions of 1he agreement, the Act
and these Rules and all such deductions shall have to be
made good by the purchaser by deposit of an equivalent amount
within fifteen days of the receipt of the notice to that
effect.
(c) If the dues to be recovered from the purchaser exceed
the amount of security deposit, the amount in excess shall,
unless made good within fifteen days from the date of the
Divisional Forest Officer's notice to that effect, be recoverable
as arrears of land revenue.
(d) The security deposit or the balance shall, as the case
may be refunded to the purchaser after the expiry of the
agreement.
(13) The purchaser shall take delivery
of Kendu leaves from such depots or the Divisional Forest
Officer in writing intimates stores as from time to time
during the currency of the purchaser's agreement.
14) If the purchaser during the currency
of the agreement establishes a bidi factory in order to
provide employment to the residents of the State of Orissa
and pays minimum excise duty of rupees three thousand per
annum on the bidis manufactured by him he shall be entitled
to a rebate of two per cent of the annual purchase price
paid by him during the corresponding year:
Provided that if such purchaser has been appointed as purchaser
for more than one unit, the rebate in purchase price will
be granted to, him only in respect of one unit of his choice
for establishment of each such factory:
Provided further that the question whether the bidi factory
established by him, provide employment or not the residents
of the State shall be decided by the Divisional Forest Officer
and his decision shall be final.
(16) Notwithstanding anything contained
in the foregoing provisions the purchaser who selected to
purchase the Kendu through the additional agent of any unit
by the, Government selection as such, execute an agreement
in Form J.
6. Transport Permit- (1) An application for
thunder Clause (b) Sub-section (2) of Section 3 shall be made
to the Divisional Forest Officer 2[or such other authority
as may be specially authorised by Government in that behalf
authority competent to grant the permit :
Provided that the said officer, if he has
reason leaves in respect of which the application has been
n {purchased from Government or their officer agent the applicant
an opportunity of being heard, by till reasons in that behalf
reject such application :
3[Provided further that in respect of Kendu
lea Orissa Forest Corporation Limited transport permit for
leaves from the Central Godowns to such purchaser, Assistant
Conservator of Forests (Kendu Leaves) within jurisdiction.]
4[Provided also that in respect of Kendu leaves
stored at Cut tack and Sambalpur by private traders and bidi
manufacturers after the same were purchased from Orissa Forest
Corporation Limited, transport permit Or transport of such
Kendu leaves from the depot of private traders and bidi manufacturers
may be issued by the Assistant Conservator of Forests (Kendu
Leaves) attached to the office of the Conservator of Forests
(Kendu Leaves). Cut tack and Assistant Conservator of Forests,
attached to the Sambalpur (Kendu Leaves) Division with headquarters
at Sambalpur in respect of the leaves stored at Cut tack and
Sarribalpur respectively.]
(2) A permit shall be in Form D and shall
be subject to the following conditions, namely:
1. Deleted by S. R. 0.85/65-2-1972.
2. Substituted by S. R. 0. No. 15/74-Dt. 4.1. 1974
3. Inserted by S. R. 0. No. 202/76-Dt" 11.2.19 76
4. Inserted by S.R.O. No 1039/76 - Dt. 21.10.1976
(a) the leaves shall be transported only by
the routes specified in the permit and shall be produced at
such place or places as may be specified therein for check
:
(b) except with the permission in writing
of the Divisional Forest -'4"A Officer the leaves shall
not be removed outside the unit at any time after sunset and
before sunrise; and
(c) the permit shall be valid for such period
as may be specified therein l[and in exceptional circumstances
the duration of validity may be extended.]
2[(3) A registered grower who wishes to transport his leaves
outside the unit in which he is registered for sale to an
additional agent, if any, of the said unit appointed under
the proviso to Section 8 ( 1) shall on application be granted
a transport permit in form D, by the Divisional Forest Officer
for the purpose of transporting the leaves to the depot of
the additional agent.]
3[7. Appointment of Agents- (1) To appoint agent or agents
for a unit or units under Sub-section (1) of Section 8, the
Government shall publish a notice in the Official Gazette
and in such other manner as they may think fit, giving terms
and conditions or agency and inviting applications for such
appointments:
Provided that no applications need be invited for appointment
-of the additional agent referred to under the proviso to
Sub-section (1) of Section 8 and such additional agent may
be appointed directly by Government subject to such terms
and conditions as may be decided by Government, and such additional
agent on appointment shall execute an agreement in Form I.
(2) The application for agency shall be in form E, and shall
be submitted to such authority by such date and in such manner
as may be specified in the aforesaid notice.
(3) Every such application shall be accompanied by a treasury
challah showing cash deposit of Rs. 500 (Five hundred) by
the applicant under the head "Earnest Money-Revenue Deposit'
in the name of Divisional Forest Officer as advance security
deposit. The applicant shall also simultaneously furnish a
certificate of solvency for a
1. Added by 0. G. P. III p. 144 of 1969.
2. Added by 0. G. E. No.529, Dt. 21-2-1969. 3. Substituted
by ibid.
sum calculate at the rate of 10 (ten) per bag for the stipulated
number of bags for the respective unit granted by a Revenue
Officer not below the rank of a Subdivisional Officer if the
agent has landed property at a place wherein the Orissa Public
Demands Recovery Act, 1962 is in force, or a Bank Guarantee
for equivalent amount.
(4) The Government may accept or reject any
application assigning any reason therefor. The advance security
deposit shall refunded to the applicants whose applications
are rejected. The 'to provision, under sub-rule (6), be adjusted
against the
deposit required under Sub-rule (7).
If in the opinion of the Government it is
not possible to "Suitable agents for the purpose out
of the persons who have applied for the appointment as agents,
the Government may call for fresh applications at any time
at their disposal is not sufficient, they appoint a person
or party as agent who in their opinion is suitable for the
work.
On appointment as agent, the person or party so appointed
'Shall execute an agreement in Form G, within fifteen days
of the re .the order of appointment failing which the appointment
shall b to be cancelled and on such cancellation either whole
or part advance security deposit, as the State Government
may deem fit s -forfeited.
(7) (a) The agent so appointed for a particular
unit shall, signing the agreement, deposit as security for
the proper execute performance of agency in accordance with
the terms and condition agreement and the provisions of the
Act and these Rules a sum to be calculated as under-
X-Purchase rate per standard bag accepted by the Government
the unit.
Y-Cost of collection per standard bag fixed for the unit.
Z-Number of standard bags of Kendu leaves mentioned the unit
in notice under Sub-rule (1).
A-Security deposit. -5Z(X-Y)/100
i. e. five per cent of the difference between the a purchase
rate per bag and the aforesaid cost collection per bag, multiplied
by the aforesaid number of bags.
The security shall, either wholly or in part,
as the case may be, be adjusted by the Divisional Forest Officer
towards the recovery of the penalty, if any, for short collection
of leaves compensation; damages or any other dues which may
be recoverable under the pro- visions or the agreement, Rule
and the Act and shall such deductions shall have to be made
good by the agent by the deposit of an equivalent amount within
fifteen days of the receipt of the notice to that effect.
(c) If the dues to be recovered exceed the
amount of the security deposit, the amount from, in excess
shall, unless made good within fifteen days from the date
of the Divisional Forest Officer's notice to that effect,
be recoverable as arrear of land revenue.
(d) The security or the balance, as the case
may be, shall b& refunded to the agent after the expiry
of the agency.
(8) The agent shall maintain such registers
and accounts as may from time to time be directed by Government.
He shall also submit to the Divisional Forest Officer such
returns and such intervals as may from time to time be directed
by Government.
(9) The agent shall furnish a list of persons
employed by him within the unit immediately as and when employment
is made and as such persons as are objected to by the Divisional
Forest Officer shall be, forthwith, removed from employment
by the agent.
(10) 1[ X X X X X X ].
8. Appeal-(1) Any person aggrieved by an order of rejection
under Rule 5 may within fifteen days from the date of receipt
of the copy of such order prefer an appeal to the Conservator
of Forests, within whose jurisdiction the unit is situated.
(2) On receipt of an appeal under Sub-rule (1) the Conservator
shall, after giving notice to the parties concerned in the
same manner as is provided under Sub-rule ( 1) or Rule 5 and
after hearing them, pass such orders as he deems fit.
9, Certificate of Safe-The Government or their officer or
agent while selling Kendu leaves to any person shall grant
to such person a certificate of sale in Form F.
1. Deleted by S, R. 0. No. 7572-D, 5-2-1972.
1[10. Conditions for utilisation of sums Allotted
to the Samitis and Grama Panchayats-
(1) Sums paid to any Samitis or Grama Panchayats in pursuance
of Sec, 11 shall be credited to the funds belonging to the
said local authorities respectively and the utilisation thereof
shall be subject to the conditions herein provided.
(2) The sums allotted to a Samiti shall be utilised on works,
schemes, roads, buildings and institutions, which have been
transferred to the control and management of the Samiti and
any such other schemes and works which are likely to augment
the resources of the Samati :
Provided that the Samiti may, with the previous approval of
Government, utilise the whole or any part of the sums so allotted
on any, other purpose.
(3) Out of sums allotted to a Grama Panchayat, twenty per,
centum shall, with the previous approval of the Collector,
be utilised for execution of such development works as may
be decided by the Grama Panchayat and the remaining eighty
per centum shall be utilised for such purpose and in such
proportion as Government may, from time to time, direct.]
2[(3) Notwithstanding anything contained
in Sub-rules (2) and (3) the Grama Panchayats and Samitis
shall be competent to utilise twenty per centum of the sums
so allotted to them for the purpose of plantation on Panchayat
lands and other waste lands situated within the village boundaries".]
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