The JAMMU AND KASHMIR HANDICRAFTS (QUALITY CONTROL) ACT, 1978

HANDICRAFTS (QUALITY CONTROL)
ACT, 1978
(Act No. IV of 1978)
THE JAMMU AND KASHMIR HANDICRAFTS
(QUALITY CONTROL) ACT, 1978
(Act No. IV of 1978)
CONTENTS
Preamble.
Section
1. Short title, extent and commencement.
2. Definitions.
3. Constitution of the Council.
4. Removal of members and filling of vacancies.
5. Functions of the Council.
6. Registration of manufacturers and dealers.
7. Allotment of Q.C. Mark.
8. Prohibition of improper use of Q.C. Mark.
9. Appointment of Chief  Inspector.
10. Appointment of Inspectors.
11. Control.
12. Powers of Inspectors.
13. Maintenance of Registers, etc.
14. Power to obtain information etc.
15. Delegation of powers.
16. Protection of action taken in good faith.
17. Penalty for improper use of Q.C. Mark.
18. Penalty for obstructing Inspectors.
19. Penalties.
438 HANDICRAFTS (QUALITY CONTROL) ACT, 1978
Section.
20. Penalty where the person contravening is firm or a company.
21. Cognizance of offences.
22. Exemptions.
23. Power to make rules.
–––––––
HANDICRAFTS (QUALITY CONTROL) ACT, 1978 439
THE JAMMU AND KASHMIR HANDICRAFTS
(QUALITY CONTROL) ACT, 1978
(Act No. IV of 1978)
[Received the assent of the Governor on 7th April, 1978 and published
in Government Gazette dated 8th April, 1978].
An Act to provide for the Improvement of Quality of Handicrafts of
Jammu and Kashmir so far as regards their production.
Be it enacted by the Jammu and Kashmir State Legislature in the Twenty-
ninth Year of the Republic of India as follows:––
1. Short title, extent and commencement. ––(1) This Act may be called
the Jammu and Kashmir Handicrafts (Quality Control) Act, 1978.
(2) It shall extend to the 
1
[whole of the Union territory of Jammu and
Kashmir].
(3) It shall come into force on such 
2
date as the Government may by
notification in the *[Government Gazette], appoint and different dates may be
appointed for different handicrafts and for different areas.
2. Definitions.–– In this Act, unless the context otherwise requires:––
(a) “Competent authority” means a person authorised by the Govern-
ment, by notification in the Government Gazette, to perform all or
any of the functions of the competent authority under this Act ;
(b) “Council” means the Handicrafts Quality Control Council consti-
tuted under section 3 ;
(c) “dealer” means a person carrying on the business of selling or
buying of notified handicrafts in retail or wholesale ;
3
[(cc) “Government” means the Government of the Union territory of
Jammu and Kashmir ;]
1. Substituted by S.O. 1229 (E) dated 31.03.2020 for “whole of the State”.
2. Enforced vide SRO-12 dated 07-01-1997 w.e.f. 7th January, 1997.
* Now Official Gazette.
3. Clause (cc) inserted by S.O. 1229 (E) dated 31.03.2020.
440 HANDICRAFTS (QUALITY CONTROL) ACT, 1978
(d) “Notified handicraft” means a handicraft article as the Government
may, by notification in the *[Government Gazette] notify ;
(e) “Q. C. Mark” means an exclusive identifying quality control mark
approved by the Government as representing the goods of a par-
ticular notified handicraft ;
(f) “manufacturer” means a person who manufactures a notified handi-
craft or gets it artistically done up by hand either in his own
‘Kharkhana’ or establishment or through others under his instruc-
tions and/or/on contract basis ;
(g) “prescribed” means prescribed by the rules made under this Act.
3. Constitution of the Council. ––(1) As soon as may be, after the com-
mencement of this Act, the Government shall, by notification in the *[Govern-
ment Gazette], constitute a Council.
(2) The Council shall consist of not less than seven and not more than
fifteen members to be nominated by the Government by notification in the
*[Government Gazette]. The Council shall be chaired by such person as may
be appointed by the Government by notification in the *[Government Gazette]
and the Chief Inspector shall be the Member Secretary of the Council :
Provided that representation in the Council shall be secured for persons
having special knowledge and practical experience in the matters relating to
handicrafts.
(3) The members of the Council shall hold office for such period, and
shall be eligible for renomination under such conditions, as may be prescribed.
(4) The non-official members shall be entitled to such allowances for
attending the meetings of the Council as may be prescribed.
(5) No act or proceeding of the Council shall be invalid by reasons only
of the existence of any vacancy amongst its members or any defect in the
constitution thereof.
(6) The Council may associate with it any person from amongst the per-
sons having special knowledge and practical experience in matters relating to
handicrafts and such person shall have a right to take part in the meeting of the
Council but shall not be entitled to vote.
* Now Official Gazette.
HANDICRAFTS (QUALITY CONTROL) ACT, 1978 441
4. Removal of members and filling of vacancies. ––(1) The Government
may, by notification in the *[Government Gazette] remove any member of the
Council on any of the following grounds:––
(i) gross misconduct ;
(ii) neglect of duty ;
(iii) failure to attend three successive meetings of the Council ;
(iv) if his conduct as member of the Council, makes his continuance in
office undesirable or his removal desirable in the public interest.
(2) When a seat of a member becomes vacant by his removal, resigna-
tion, death or otherwise, a new member shall be nominated in his place and
such member shall hold office so long as the member whose place he fills
would have been entitled to hold office if such vacancy had not occurred.
5. Functions of the Council. ––(1) It shall be the duty of the Council to
advise on such measures, as it thinks fit, for the improvement of quality of
handicraft.
(2) Without prejudice to the generality of the foregoing provision and
subject to the approval of the Government, the measures referred to therein
may provide for:––
(a) determination of qualities and standards of handicrafts together
with specifications thereof ;
(b) determination of the manner in which sub-standard handicrafts
may be disposed of ;
(c) the supply of technical advice to manufacture ;
(d) the collection of statistics from manufacturers and dealers ;
(e) the form, size etc. of stamps to be stamped or patched to such
handicrafts and other conditions to be observed in this respect ;
(f) the persons by whom and the places where physical, chemical or
laboratory inspections, as the case may be, for any notified handi-
craft, may be made, and the procedure therefor ;
* Now Official Gazette.
442 HANDICRAFTS (QUALITY CONTROL) ACT, 1978
(g) such other matters as may be prescribed including the identifica-
tions of Jammu and Kashmir Handicrafts.
(3) It shall also be the duty of the Council:––
(a) to give effect to such directions in the performance of its functions
as the Government may issue to it from time to time ;
(b) to advice the Government on all matters, relating to the improve-
ment of the quality of handicrafts ;
(c) to submit to the Government yearly reports on its activities and the
working of this Act.
(4) The Council may set up any Committee of specialists for conducting
investigation on any problem relating to improvement of quality of the handi-
crafts.
6. Registration of manufacturers and dealers. ––(1) Every manufacturer
of, and dealer in, a notified handicraft shall, within a period of three months
from the date of commencement of this Act, apply to the competent authority
for registration as a manufacturer or dealer as the case may be. The application
shall be made in such form and shall be accompanied by such fee as may be
prescribed :
Provided that the competent authority may, for reasons to be recorded in
writing, extend the period for such registration up to six months.
(2) Every person who commence manufacturing of or dealing in any noti-
fied handicraft after the commencement of this Act, shall get himself registered
as manufacturer or dealer, as the case may be, within six months of commencing
his business in the same manner as is provided in sub-section (1).
(3) The registration once made shall be renewable after every five years
from the date of registration on payment of such fee, as may be prescribed.
(4) Notwithstanding anything contained in sub-section (1) and (2), a
manufacturer of, and a dealer in, a handicraft shall not be required to get
himself registered, if he stands already registered for such a handicraft under
any other law for the time being in force :
Provided that the requirements in respect of such registration as laid
down by, or under this Act, shall be complied with by such manufacturer or
HANDICRAFTS (QUALITY CONTROL) ACT, 1978 443
dealer as if he is registered under this Act.
7. Allotment of Q.C. Mark.–– As soon as may be, not later than three
months or any extended period as may be approved by the Government after
registration is effected, every registered manufacturer shall be allotted by the
competent authority a mark which shall be stamped on a handicraft manufac-
tured by him.
8. Prohibition of improper use of Q.C. Mark. ––(1) No manufacturer or
dealer shall use in relation to any notified handicraft any Q.C. Mark other than
that allotted by the competent authority.
(2) No manufacturer or dealer shall notwithstanding that he has been
registered, use in relation to any notified handicraft the Q.C. Mark unless such
handicraft conforms to the quality and standard determined by the Council.
9. Appointment of Chief Inspector.–– The Government may, by notifica-
tion in the *[Government Gazette], appoint any person as Chief Inspector for
purposes of this Act who shall exercise such powers and perform such duties
as may be prescribed.
10. Appointment of Inspectors. ––(1) The Government or any officer
authorised by it in this behalf may, by notification in the *[Government Gazette],
appoint such persons as it or he thinks necessary, to be Inspectors for the
purposes of this Act and every such Inspector shall exercise the powers and
perform duties under this Act within such local areas as may be assigned to him:
Provided that no person who has any financial or other interest in the
manufacture or sale of notified handicraft shall be so appointed.
(2) The Chief Inspector and every Inspector shall be deemed to be a
public servant within the meaning of section 21 of the 
1
[Indian Penal Code (45
of 1860)].
11. Control. ––(1) The general superintendence and control over the
Chief Inspector and Inspectors shall vest in such person as the Government
may by notification in the Gazette, appoint.
(2) Subject to the control of the persons appointed under sub-section
(1), the Inspectors shall be subordinate to and under the control of the Chief
Inspector.
* Now Official Gazette.
3. Substituted by S.O. 1229 (E) dated 31.03.2020 for “State Ranbir Penal Code, Samvat 1989”.
444 HANDICRAFTS (QUALITY CONTROL) ACT, 1978
12. Powers of Inspectors. ––(1) Subject to any rules made by the Govern-
ment in this behalf, an Inspector shall have power to:––
(a) enter and search at all reasonable times and with such assistance,
if any, as may be necessary, any place or premises where he has
reason to believe that notified handicraft is manufactured, sold or
stocked ;
(b) examine the notified handicraf manufactured sold or stocked in
such place or  premises with a view to ascertaining the quality, size
and specification of such handicraft ;
(c) require the production of any register or any other document kept
in pursuance of this Act or the rules made thereunder and take on
spot or otherwise statement of any person which he may consider
necessary for carrying out the purposes of this Act :
Provided that no person shall be compelled under this section to answer
any question or give any evidence tending to incriminate himself.
(d) seize any stock of notified handicraft in respect of which he has
reason to believe that contravention of any of the provisions of
this Act or the rules made thereunder   has been or is being commit-
ted, and thereafter take all measures necessary for securing the
production of stocks so seized in a court or for their safe custody,
pending such production.
(2) The provision of 
1
[section 100 of the Code of Criminal Procedure,
1973 (2 of 1974)], relating to searches and seizures, shall so far as may be,
applied to searches and seizures under this section.
13. Maintenance of Registers etc.–– Every manufacturer of, and dealer
in, a handicraft shall maintain such registers and records and display such
notices, in such manner, as may be prescribed.
14. Power to obtain information etc.–– Every manufacturer or dealer
shall supply to the Government or any officer authorised by it in this behalf
such information, and with such samples of any raw material or substance
used in relation to any handicraft, as the Government or the officer authorised
may require.
1. Substituted by S.O. 1229 (E) dated 31.03.2020 for “sections 102 and 103 of the Code of
Criminal Procedure, Samvat 1989”.
HANDICRAFTS (QUALITY CONTROL) ACT, 1978 445
15. Delegation of powers.–– The Government may, by notification in the
*[Government Gazette], direct that any power exercisable by it under this Act
except under section 23 shall in relation to such matters and subject to such
conditions, if any, be exercisable also by the Council or any officer of the
Government.
16. Protection of action taken in good faith. ––(1) No suit, prosecution
or other legal proceeding shall lie against the Council or any officer or em-
ployee of the Government for anything which is in good faith done or intended
to be done in pursuance of this Act or any rule or order made thereunder.
(2) No suit or other legal proceedings shall lie against the Government
for any damage caused or likely to be caused by anything which is in good
faith done or intended to be done in pursuance of this Act or any rule or order
made thereunder.
17. Penalty for improper use of Q.C. Mark. ––(1) Any manufacturer or
dealer who contravenes the provisions of section 8, shall be punishable with
imprisonment for a term which may extend to six months or with fine which
shall not be less than five hundred rupees and which may extend to ten thou-
sand rupees or with both.
(2) Any court trying a contravention under sub-section (1) may direct
that any handicraft in respect of which the contravention has taken place shall
be forfeited to the Government.
18. Penalty for obstructing Inspectors.–– Any person who wilfully
obstructs the Chief Inspector or an Inspector in the exercise of any power
conferred on him by or under this Act, or any person lawfully assisting the
Chief Inspector or an Inspector in the exercise of such powers, or who fails
without sufficient cause to comply with any lawful direction made by the
Chief Inspector or an Inspector, shall be punishable with imprisonment for a
term which may extend to three months or with fine which may extend to one
thousand rupees or with both.
19. Penalties.–– Any person who contravenes any provision of this Act
other than those referred in section 17 and 18 or any rule made thereunder shall
be punishable with imprisonment for a term which may extend to six months or
with a fine which shall not be less than two hundred rupees and which may
extend to two thousand rupees or with both, and where such contravention
relates to section 6 of this Act, he shall be punishable with a further fine not
* Now Official Gazette.
446 HANDICRAFTS (QUALITY CONTROL) ACT, 1978
exceeding one hundred rupees for each day on which the contravention con-
tinues after conviction.
20. Penalty where  the person contravening is a firm or a company.–– If
the person who contravenes any of the provisions of this Act is a company or a
firm, every Director, Partner, Manager or Secretary thereof shall, unless he proves
that the contravention or non-compliance took place without his knowledge or
that he exercised all due diligence to prevent such contravention or non-compli-
ance be deemed to be guilty of such contravention or non-compliance.
21. Cognizance of offences.–– No court shall take cognizance of any
offence punishable under this Act except on written complaint made by an
Inspector in that behalf.
22. Exemptions.–– The Government may, on the recommendation of the
Council, exempt any manufacturer or dealer from all or any of the provisions of
this Act. The power to grant exemption, shall, however, be limited to the stocks
held by a manufacturer or dealer on the date of commencement of this Act :
Provided that it shall be the responsibility of such manufacturer or dealer
to get such stocks inspected by the Inspector appointed under this Act and a
proper inventory drawn up of such stocks with periodic intimation of the Chief
Inspector as to the disposal of such stocks :
Provided further that the manner of submission of periodic reports and
drawing up of the inventory and other connected matters shall be regulated in
such manner as may be prescribed.
23. Power to make rules. ––(1) The Government may by notification in
the *[Government Gazette], make rules to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
power, such rules may provide for all or any of the following matters, namely:––
(a) the procedure to be followed at meetings of the Council for the
conduct of business, and the number of members which shall form
a quorum at any meeting ;
(b) the holding of a minimum number of meetings of the Council every
year ;
* Now Official Gazette.
HANDICRAFTS (QUALITY CONTROL) ACT, 1978 447
(c) the travelling and other allowances of members of the Council,
associated members and members of committees setup under sub-
section (4) of section 5 ;
(d) the maintenance of the registers and other records of the Council ;
(e) the collection of any information or statistics in respect of any
handicrafts ;
(f) the form of application for registration under section 6 and the fee
payable therefor ;
(g) the procedure to be followed in renewing registration and the fee
payable on such applications ;
(h) the manner in which any handicraft shall be marked ;
(i) the manner in which manufacturers and dealers shall maintain reg-
isters and records ;
(j) any other matter which is to be or may be prescribed.
–––––––
448 HANDICRAFTS (QUALITY CONTROL) ACT, 1978

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