The KARNATAKA FOREST ACT, 1963

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1964: KAR. ACT 5] Forest 337
THE KARNATAKA FOREST ACT, 1963
ARRANGEMENT OF SECTIONS
Statements of Objects and Reasons:
Sections:
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
RESERVED FORESTS
3. Powers to constitute Reserved Forests.
4. Notification by Government.
5. Proclamation by Forest Settlement Officer.
6. Bar of accrual of forest rights.
7. Inquiry by Forest Settlement Officer.
8. Powers of Forest Settlement Officer.
9. Extinction of rights.
10. Treatment of claims relating to shifting cultivation.
11. Power to acquire land over which right is claimed.
12. Order on claims to rights of way or pasture or to forest produce or water.
13. Record to be made where claim is admitted.
14. Exercise of rights admitted.
15. Compensation for rights.
16. Appeal from order passed under section 11, section 12, section 14 or
section 15.
17. Notification declaring forest a reserved forest.
18. Publication of notification.
19. Power to revise arrangements made under section 14 and to redefine the
limits of reserved forests in certain cases.
20. No right acquired over reserved forest except as provided.
21. Alienation of right in a reserved forest.
22. Power to stop ways and water courses in reserved forests.
23. Reserved forests constituted previous to passing of this Act.
Forest [1964: KAR. ACT 5 338
24. Acts prohibited in reserved forests.
25. Acts excepted from section 24.
26. Privileges may be granted in reserved forests.
27. Penalties for offences committed by persons having rights in reserved forests.
28. Power to declare forests no longer reserved forests.
CHAPTER III
VILLAGE FORESTS
29. Constitution of village forests.
30. Power to make rules for village forests.
31. Inquiry into and settlement of rights.
31A. Constitution of Village Forest Committee for Joint Forest Planning and
Management of Forest.
CHAPTER IV
DISTRICT FORESTS
32. Power to grant privileges in district forests.
33. Power to make rules for district forests.
34. Suspension of rights in cases of fires caused wilfully or by gross negligence.
35. Minor forests constituted previous to the commencement of this Act.
CHAPTER V
CONTROL OVER FORESTS AND LANDS NOT BEING THE PROPERTY OF THE GOVERNMENT
36. Interpretations.
37. Preservation of private forests.
38. Power to make rules.
39. Protection of forests for special purposes.
40. Appeals.
41. Penalties.
42. Bar of suits.
43. Power to assume management of forests.
44. Consequences of assumption of management.
45. Period of management.
46. Termination of management.
47. Government management of forests at request of owners.
48. Acquisition of forests in certain cases.
1964: KAR. ACT 5] Forest 339
49. Power to remove difficulties.
CHAPTER VI
CONTROL OF TIMBER AND OTHER FOREST PRODUCE IN TRANSIT
50. Power to make rules to regulate transit of forest produce.
51. The State Government and Forest Officer not liable for damage to forest
produce at depot.
52. All persons bound to aid in case of accident at depot.
CHAPTER VII
COLLECTION OF DRIFT AND STRANDED TIMBER
53. Certain kinds of timbers to be deemed property of State Government until
title thereto proved.
54. Notice to claimants of drift timber.
55. Procedure on claim preferred to such timber.
56. Disposal of unclaimed timber.
57. State Government and its officers not liable for damage to such timber.
58. Payments to be made by claimant before timber is delivered to him.
59. Power to make rules.
CHAPTER VIII
CATTLE TRESPASS
60. Application of Cattle Trespass Act, 1871.
61. Power to alter fines fixed under that Act.
CHAPTER IX
PENALTIES AND PROCEDURE
62. Seizure of property liable to confiscation.
62A. Powers of Forest Officer in the matter of Investigation.
62B. Report by Investigation Officer
62C. Certificate of Forest Officer to be an evidence.
63. Power to release property seized under section 62.
64. Omitted.
64A. Penalty for unauthorisedly taking possession of land constituted as reserved
forest, district forest, village forest, protected forest and any other land under
the control of the Forest Department.
65. Forest produce, tools, etc., when liable to forfeiture.
Forest [1964: KAR. ACT 5 340
66. Disposal on conclusion of trial for forest offence, of produce in respect of
which it was committed.
67. Procedure when offender is not known, or cannot be found.
68. Procedure as to perishable property seized under section 62.
69. Appeal from orders under sections 65, 66 or 67.
70. Vesting of forefeited property in State Government.
71. Saving of power to release property seized.
71A. Confiscation by Forest Officers in certain cases
71B. Issues of show cause notice before confiscation under section 71A.
71C. Revision.
71D. Appeal.
71E. Award of Confiscation not to interfere with other punishments.
71F. Property confiscated when to vest in Government.
71G. Bar of jurisdiction in certain cases
72. Punishment for wrongful seizure.
73. Penalty for counterfeiting or defacing marks on trees or timber and for
altering boundary marks.
74. Power to arrest without warrant.
75. Power to release on a bond a person arrested.
76. Power to prevent commission of offence.
76A. Prevention of Commission of offences etc.
77. Power to try offences summarily.
78. Operation of other laws not barred.
79. Power to compound offences.
80. Presumption that forest produce belongs to Government.
81. Compensation for damage caused by commission of offence.
82. Forfeiture of leases.
82A. Criminal liability of licencee for acts of servants.
82B. Offence by Companies etc
CHAPTER X
PROVISIONS RELATING TO SANDALWOOD
83. Forest rights of inamdars and other persons entitled to sandal trees.
84. Sandal trees exclusive property of Government.
1964: KAR. ACT 5] Forest 341
85. Responsibility of occupants and holders of land for the preservation of
sandal trees.
86. Penalty for offence in regard to sandalwood.
87. Regulation of sale and manufacture of sandalwood and sandalwood oil.
CHAPTER XI
SPECIAL PROVISIONS RELATING TO CATECHU.
88. Definitions.
89. Felling, etc., of catechu trees without permission prohibited.
90. Felling, conversion or removal of catechu trees by the Forest or Revenue
Department or by a person.
91. Application for permit for felling catechu trees.
92. Transport, etc., of catechu trees or timber without permit prohibited.
93. Purchase or transport of cutch without permit prohibited.
94. Manufacture of cutch to be carried on in specified places.
95. Maintenance of accounts.
96. Power of Revenue, Forest and Police Officers to search and seize property
liable to confiscation.
97. Power to make rules.
98. Penalty.
CHAPTER XI-A
FOREST DEVELOPMENT FEE.
98A. Levy of Forest Development fee.
98B. Forest Development Fund.
CHAPTER XII
MISCELLANEOUS
99. The State Government may invest Forest Officers with certain powers.
100. Removal of forest produce from inam lands.
101. Control over reserved trees.
101A. Grant of forest produce on seigniorage rate
101B. Supply of forest produce under agreement by the State Government.
102. General powers to make rules.
103. Rules to be laid before State Legislature.
104. Penalty for Contravention of Act or rules.
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104A. Restrictions on trade and transport of blackwood or Bite trees and timber
thereof.
104B. Certain offences to be cognizable.
104C. Abetment.
104D. Special provision regarding bail
104E. Omitted.
104F. Persons not be released on probation.
104G. Removal of persons convicted of certain offences
105. Persons bound to assist forest officers and police officers.
106. Management of forests which are the joint property of State Government
and other persons.
107. Power of State Government to apply provisions of this Act to certain lands of
State Government or local authority.
108. Failure to perform service for which a share in produce of Government
forest is enjoyed.
109. Recovery of money due to Government.
110. Lien on forest produce for such money.
111. Land required under this Act to be deemed to be needed for a public
purpose under the Land Acquisition Act.
112. Recovery of penalties due under bond.
113. Forest officers deemed to be public servants.
114. Indemnity for acts done in good faith.
114A. Suits or prosecution i n respect of acts done under colour of duty not to be
entertained without sanction of the State Government.
115. Forest Officer not to trade.
116. Central Act 67 of 1957 to prevail.
117. Repeal and savings.
118. Power to remove difficulties.
* * * *
1964: KAR. ACT 5] Forest 343
STATEMENTS OF OBJECTS AND REASONS
I
Act 5 of 1964. —There are at present different forest laws in force in the five
integrating parts of the Mysore State. As it is administratively difficult and
inconvenient to enforce different laws in different parts, the present bill has been
prepared to bring uniformity of forest laws throughout the State.
The more important provisions in the Bill are the following:—
Provision has been made in the Bill for control over forests and lands not being
the property of the Government, in Chapter V on the lines of the provisions now in
force in the Bombay and Madras areas. The object is to prevent private owners
from recklessly exploiting the tree growth and forest produce with the sole idea of
making immediate and huge profits, without regard to ensuring sustained yield for
the benefit of the community in future. There is power to assume management of
forests in certain circums tances. In Chapter X, provision has been made that all
sandal trees which may grow in any land after the date of commencement of this
Act will be the exclusive property of Government and exploitation of all sandalwood
trees, the rights over which is alienated, should be done by the Forest Department
only on behalf of the owner. These provisions are made to prevent smuggling of
sandalwood. Special provisions relating to catechu, an important commercial
produce, is made in Chapter XI.
(Published in the Karnat aka Gazette (Extraordinary), Part IV -2A, dated 26th July
1962, at p. 384.)
II
Amending Act 23 of 1974. —It is proposed to include ramapatra and shigakai
within the definition of forest produce.
To prevent theft and illicit felling of Government trees it is considered necessary
to make certain forest offences cognizable and to enhance the punishment. A
separate provision is made in respect of offences relatable to rosewood (blackwood
or bite) and power has been taken to regulate by rules the cutting, sale etc . of such
trees.
The courts have held that section 50(2) ( k) empowers making of rules prohibiting
absolutely or subject to conditions the establishment of saw mills etc., within certain
specified local limits and not throughout the State. It is considered necessary to take
power to make such rules in respect of the whole of the State of Mysore.
The courts have held that the Act does not provide for regulating the existing
saw pits and saw mills and to levy licence fees in respect of saw pit and saw mill
Forest [1964: KAR. ACT 5 344
licences. It is considered necessary to regulate the working of the existing saw mills
and saw pits and to levy necessary licence fees.
It is considered necessary to get a resolution to that effect passed by both
Houses of the State Legislature before issuing a notification under section 28
declaring that a reserved forest shall cease to be a reserved forest.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A, dated 27th
September 1973, as No. 760, at p. 5.)
III
Amending Act 15 of 1976.— By promulgating the Karnataka Forest
(Amendment) Ordinance, 1975, on 24th December 1975 and bringing it into force
from that date, Government of Karnataka have imposed the levy of Forest
Development Tax at the rate of 5% on the amount consideration paid in respect of
forest produce disposed off by the State Government by sale or otherwise. The tax
levied and collected under this Ordinance is to be credited to the Consolidated Fund
of the State, in the first instance, and thereafter transferred to the Karnataka Forest
Development Fund. The amount at the credit of this fund is to be expended for the
raising of forest plantations and other ancillary purposes.
The provisions made in the Budget of the Forest Department for raising
plantations are not suffi cient. There is at present acute shortage of timber, firewood
and raw material for the forest based industries. It is expected that in the near
future, there will be famine of forest raw material including timber, firewood for fuel
and other industrial raw material. Hence, it is necessary to take timely steps to raise
plantations more intensively in order to increase the availability of raw material on
sustained yield basis.
Hence, it is necessary to create the Forest Development Fund exclusively for
raising forest plantations.
(Published in the Karnataka Gazette (Extraordinary), dated 22nd January 1976,
p. 45–46.)
IV
Amending Act 50 of 1976. —Several measures have been undertaken by the
Forest Department to intensify control of smuggling of forest produce. T he Forest
Act has also been amended enhancing the punishment limits covering forest
offences. Inspite of the these steps because of the exceedingly high value fetched
by certain items of forest produce like rosewood, sandalwood, ivory, etc., smuggling
persists. There is provision in the Forest Act to seize the vehicles, tools, etc., used
1964: KAR. ACT 5] Forest 345
in committing of such offences but thereafter the case has to be taken up under
normal provisions of the Forest Act. It has been the experience that invariably in the
forest offence cases either due to the benefit of doubt or due to the lack of proper
legal expertise the vehicles are ordered to be released. It is now proposed to
empower Forest Officers of and above the rank of Assistant Conservators of
Forests to order confi scation of the Vehicles involved in smuggling after going
through quasi-judicial formalities. The final appellate authority is proposed to be the
District Judge having jurisdiction over the area.
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A, dated 25th May
1976, as No. 2847, at p. 5.)
V
Amending Act 15 of 1978. —There are a large number of cases of
encroachments in forest areas. It has been decided that the encroachments in the
interior of forests should be cleared and the encroachers evi cted. But lands under
encroachments on the periphery of the forest or near the ‘D’ line of the forests and
in shrubby forest areas without valuable tree growth be transferred to the Revenue
Department for regularisation in deserving cases of encroachments, or for resettling
the encroachers who have been evicted from the thick forest areas. In such cases it
is considered not necessary to obtain the approval of the Houses of the Legislature.
As the Karnataka Legislative Council was not in session and as the m atter was
urgent an Ordinance was promulgated. This Bill seeks to replace the said
Ordinance.
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A, dated 30th
June 1978, as No. 1001, at p. 3.)
VI
Amending Act 14 of 1980.—To augment the revenue of the State and to further
rationalise the taxation structure, it is proposed to make certain amendments to the
Karnataka Entertainments Tax Act, 1958, the Karnataka Forest Act, 1963 and the
Karnataka Sales Tax Act, 1957.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A, dated 14th
March 1980, as No. 192, at p. 5.)
VII
Amending Act 1 of 1981. —The existing provisions of section 71- A of the
Karnataka Forest Act confers powers on the authorised forest officers referred to
therein to make an order of confiscation. This does not take away the jurisdiction of
Forest [1964: KAR. ACT 5 346
the Magistrate to make an order of release of the seized vehicle under the
provisions of Criminal Procedure Code pending orders of confiscation by the
authorised officer. The intention of section 71- A is to bring in a deterrent effect of
confiscating the vehicles used in the commission of sandalwood offences for valid
reasons. Due to the concurrent jurisdiction of the Magistrate, the purposefulness of
section 71- A gets defeated, when the Magistrate elects to release the vehicle
seized and pending orders or confiscation by the authorised officer on merits.
It is also considered necessary to make sandalwood offences non- bailable as at
times it may happen that a person arrested may s eek relief on bail and it, may be
difficult to pursue the case further. It is further found necessary that abettors in
sandalwood offences should also be brought under the purview of the Act.
It is considered necessary to give legal backing to seigniorage value fixed by the
chief conservator of forest and to authorise him to make such fixation his future.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A, dated 20th
March 1979, as No. 225, at p. 6.)
VIII
Amending Act 7 of 1983. —The Chief Minister in his speech while presenting
the Budget Estimates for 1983- 84 has indicated that the forest development tax
leviable on certain items of forest produce disposed of by the State Government
shall be raised to the rate of twelve per cent on the consideration for the sale. The
present Bill is intended to bring the said proposal into effect.
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A, dated 29th
March 1983, as No. 206, at p. 4.)
IX
Amending Act 11 of 1984. —The Government of India while giving their assent
to the Karnataka Forest (Amendment) Bill, 1980 had suggested amendments to
sections 68, 86, 87 of the Karnataka Forest Act to empower the Court to impose
lesser sentence of imprisonment and fine.
The agreements entered into with several industries for the supply of forest
produce ranged from 5 to 30 years and a few agreements provided for supply of
forest produce on assured basis without fully assessing the availability position of
the raw material for such long periods and without providing for modification of the
terms of the agreement. It is proposed to modify them in certain respects.
The seigniorage rates were revised with effect from 29th June 1982 on the basis
of the recommendations of an official committee constit uted for the purpose. The
1964: KAR. ACT 5] Forest 347
rates fixed from 29th June 1982 are less than the rates which came into force on
23rd February 1981. In view of the anomaly that the earlier rates for the period from
23rd February 1981 to 29th June 1982 were higher than the rates which came into
force from 29th June 1982 the 29th June 1982 rates were decided to be given
retrospective effect from 23rd February 1981.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A, dated 5th
February 1984, as No. 98, at p. 4.)

X
Amending Act 10 of 1989.—It is considered necessary to amend the Karnataka
Forest Act, 1963,—
(i) to include sandalwood handicraft articles from the definition of the ter
“sandalwood” to give relief to the artisans:
(ii) to prohibit unauthor ised occupation of land in reserved forest and district
forest, for any purpose;
(iii) to provide penalty for unauthorisedly taking possession of any land in
protected forest for the land entrusted to the Forest Department for the purpose of
afforestation;
(iv) to make it obligatory to obtain licence for possession or storing of
sandalwood oil also;
(v) to provide for levy and remittence of forest development tax on the forest
produce disposed of by a corporation owned or controlled, or a body notified by the
State Government;
(vi) to include, apart from forest development tax, certain other items, in the
forest development fund;
(vii) to exempt from payment of seigniorage value in respect of bark for the
period from 19th January 1981 to 31st August 1983 and to charge fifty per cent of
seigniorage value in respect of eucalyptus or bamboo supplied for the manufacture
of news-print for a period of ten years from 1st October 1983.
Certain consequential and incidental changes are also made.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary), Part IV -2A dated 11th
September 1987, as No. 611, at p. 7.)

Forest [1964: KAR. ACT 5 348
XI
Amending Act 12 of 1998.—It is considered necessary to amend the Karnataka
Forest Act, 1963 (Karnataka Act 5 of 1964) to provide for the following, namely: —
(1) To include “sandalwood oil” in the definition of sandalwood;
(2) To define Village Forest Committee and to provide for its constitutions;
(3) To provide for levy of fee for grant or renewal of licence for saw mills etc;
(4) To require production of Bank guarantee equal to the value estimated by the
Forest Officer, before release of property seized under section 62;
(5) To enhance the amount of composition from rupees five thousand to rupees
fifty thousand;
(6) To provide for punishment for the acts of the servants of the licensee;
And it is considered necessary to amend the Karnataka Preservation of Trees
Act, 1976, to provide for,—
(i) to require the Tree Officer to dispose off the application received within a
period of three months;
(ii) To provide for cancellation or suspension of permission under certain
circumstances;
(iii) to prohibit granting permission under section 8 to fell trees if it involves
felling of all trees for cultivation or extension of cultivation of rubber or tea;
Hence the Bill.
(Obtained from L.C. Bill No. 5 of 1997 (File No. DPAL 53 LGN 97).)
XII
Amending Act 20 of 2000. —The Karnataka Forest and Certain Other laws
(Amendment) Bill, 1999 so far it relates to the Karnataka Forest Act, 1963 provides, -
(1) for investing the Forest Officers with the similar powers as conferred on an
officer-in-charge of a Police Station in the matter of investigating under the Code of
Criminal Procedure, 1973 and to treat the report of such Forest Officer as a report
for the purpose of section 190 of the said Code;
(2) that a certificate issued by the Forest Officer shall be evidence in respect of
forest produce;
(3) for prevention of commission of offences;
(4) for issue of a certificate by the Conservator of Forest for recovery of tax,
royalty etc., due under the Act and for treating it as a decree of a Civil Court;
1964: KAR. ACT 5] Forest 349
(5) for requiring sanction of institute a suit or prosecution in respect of acts
done under colour of duty by a Forest Officer;
Further, it is proposed to amend the Karnataka Preservation of Trees Act, 1976
to invest the tree officer with the powers of an officer -in-charge of a Police Station in
the matter of investigation under the Code of Criminal Procedure, 1973 and to treat
his report as a report for the purpose of section 190.
Hence the Bill.
(Obtained from L.A. Bill No. 13 of 1999)
XIII
Amending Act 20 of 2001. - In the Budget Speech of 2001- 2002 it was
anounced that amendments to the Karnataka Forest Act, 1963 will be brought to
remove the restrictions on the growing of sandalwood trees in private land in order
to encourage public to grow sandal wood in their land.
It is proposed to amend the definition of "Divisional Forest Officer" as this post is
redesignated as "Deputy Conservator of Forest" and to include "Additi onal Principal
Chief Conservator" in the definition of "Forest Officer".
It is also proposed to modify the provisions of penalty in respect of Forest
offences relating to sandalwood by enhancing the imprisonment from seven years
to ten years and fine from Rupees twenty five thousand to Rupees one lakh.
Hence the Bill.
(Obtained from LA Bill No. of File No. DPAL 30 SHASANA 2001)
XIV
Amending Act 24 of 2009. -At present there is no provision to levy interest on
Forest Development Tax as per section 98A of the Karnataka Forest Act, 1963 on
belated payment of Forest Development Tax. The Sales Tax and Income Tax
Departments are charging interest on Sales Tax and Income Tax @ 24% per
annum for belated payment of dues. To regulate the payment of Forest
Development Tax, levy of interest at the rates prescribed from time to time is
proposed by issue of amendments to section 98A and section 98B of the Karnataka
Forest Act, 1963. This is in the interest of timely payment of Government dues and
to ensure consistency in the flow of revenue to State Exchequer. The levy of
interest will act as a deterent to delayed payment of Forest Development Tax.
Hence, the Bill.
[L.A.Bill No.26 of 2009, File No.8 Shasana 2007]
[Entry 17A of List III of the Seventh Schedule to the Constitution of India]
Forest [1964: KAR. ACT 5 350
XV
Amending Act 41 of 2015. - It is considered necessary to amend the
Karnataka Forest Act, 1963, (Karnataka Act 5 of 1964) to,-
(1) Increase the forest development tax;
(2) Utilize the Forest Development fund for all activities related to
development and management of forests wildlife.

Hence, the Bill.

[L.A. Bill No. 39 of 2015, File No. Samvyashae 20 Shasana 2015]
[Entry 17A of List III of the Seventh Schedule to the Constitution of India.]

XVI
Amending Act 23 of 2016.-
1. It is considered necessary further to amend the Karnataka
Forest Act, 1963 (Karnataka Act 5 of 1964) (hereinafter called the
Act) to remove doubts regarding the nature, ambit and scope of the
levy of Forest Development Tax (FDT). As explained below, the
objects of this amendment Bill, to be made retrospective from the
16th day of August, 2008, are:-
(i) to declare the meaning and purpose of the words “a
body notified by the State Government” occurring in
section 98A;
(ii) to re-state the nature of levy and declare that it is in
the nature of a fee;
(iii) to validate the collection of Forest Development Tax
or Forest Development Fee from 2008 onwards.
2. The amendments to sections 98A and 98B are being
made retrospectively from 16
th day of August, 2008 when
Notification No.FEE 248 FDP 2006 dated 16-08-2008 Bangalore was
issued. Although section 98A came into force from 24.12.1975,
the present amendment is being made retrospectively only from
the date of this notification to avoid unnecessary hardship to
entities who are covered by Chapter XI -A of the Forest Act,
1963.
3. Section 98A of the Act was amended to include the words “or
by a corporation, owned or controlled by or a body notified by the
State Government” by Amendment Act 10 of 1989. The said
amendment was made with the intention of including all persons,
who are disposing of forest produce by way of sale or otherwise,
including State-owned and controlled corporations as well as entities
1964: KAR. ACT 5] Forest 351
such as private individuals, firms, companies or anybody else, wi thin
the purview or ambit of the levy under section 98 A of the Act. The
latter category, which were neither State-owned nor State controlled,
were intended to be included within the expression “a body” in
section 98A(1). This was done with the object of augmenting
revenue for the purpose of “afforestation” , amelioration of
environment, enhancing the tree cover and activities ancillary thereto
as mandated under Section 98B by levying a fee on disposal of
forest produce.
4. Thus, the intention of the legis lature was always to ensure
that all entities whether State- owned, State- controlled or not, that
were disposing of forest produce by way of sale or otherwise were
brought within the purview or ambit of the levy of Forest
Development Tax (FDT). There was never an intention of restricting
the statutory mandate of collecting and paying the levy only to State
Government and its Undertakings and excluding all non-Government
entities and undertakings of the Central Government. It was never
the intention of the Legislature that Forest Development Tax was
to be collected only when entities acted together as an
association or conglomeration. Indeed, such an interpretation would
not only defeat the object of amending section 98A but also seriously
jeopardize the programmes for development and regeneration of
forests in the State of Karnataka.
5. The State of Karnataka issued Notification No.FEE 248
FDP 2006 dated 16.8.2008 under Section 98A(1) of the Act
whereby all lease -holders of mines and quarries situated in the
forest area were notified in exercise of the powers conferred by
section 98A(1). The validity of this notification and certain other
issues came up for consideration before the Division Bench of the
Karnataka High Court i n W.P. No 2462 of 2009 (and other
connected matters) and the judgment was rendered on 03.12.2015.
The Hon’ble High Court, inter alia, was pleased to quash the
notification on the ground that the expression “ a body” would not
include leaseholders of mines and quarries, whether as an
individual or as other juristic entity. According to the Hon’ble High
Court, leaseholders could be individuals, partnership firms, societies,
co-operative societies, companies incorporated under the
Companies Ac t or any other association or persons. Unless all of
them constituted themselves into "a body", which would inevitably be
a juristic entity having a legal persona, such as a federation in which
the leaseholders are members, or a company, wherein they are
Forest [1964: KAR. ACT 5 352
shareholders, or, a society, wherein they are members and one of
the activities of such federation or company or society is disposal of
minerals as forest produce by sale or otherwise, they could not be
treated as a body that could be notified by the Stat e Government.
Thus, independent or separate lease holders, whether they are
private individuals or partnership firms or companies or any other
juristic entity, could not be construed to come within the expression
"a body" under sub- section (1) of Section 98 -A of the Act. This
interpretation has resulted in numerous leaseholders of mines and
quarries situated in forest area not being liable to collect and pay the
“forest development tax” (FDT). This was clearly never the intention
of the legislature because the word “a body” was never intended to
apply to only juristic entities consisting of a conglomeration of
leaseholders, either as individuals or companies or firms and so
on. It is also clear that lease holders of mines and quarries situated
in for est area will never collectively act as an association or a
conglomerate while purchasing or selling or disposing of forest
produce.
6. It is, therefore, necessary to amend section 98A(1)
retrospectively and declare that the word “a body” included and, has
always included, even leaseholders of mines and quarries situated in
forest area even if they did not constitute themselves collectively, as
a federation, company or society or an association of persons.
Significantly, the Hon’ble High Court has accepted this view
that the expression “a body” will include any autonomous or
private body in which the State Government did not have any
control in any manner whatsoever. The proposed amendments are
intended to declare that all lease-holders of mines and quarries in
forest area come within the definition of “a body” and are liable to
collect and pay Forest Development Tax or Forest Development
Fee as this levy is critical for the development and regeneration of
forests. The proposed amendments will cure the infirmity and
remove the defect which was found in the existing provisions. The
Bill also contains a validation clause that is dealt with later.
Tax and Fee:
7 In Guru Siddappa v State of Karnataka AIR 1981 Kar 216, the
Division Bench of the Karnataka High Court had held that the Forest
Development Tax (FDT) levied on the purchase price of forest
produce was within the legislative competence of the State under
Entry 54 of List -II and constitutionally valid. Although the
unamended section 98A(1) refers to the levy of a tax, the impost is
1964: KAR. ACT 5] Forest 353
more in the nature of a fee. The amount collected by way of forest
development tax is earmarked for development and regeneration of
forest and does not go to the general revenue of the S tate to be
spent for general public purpose. This is also made clear by section
98B of the Act which specifies that the Forest Development Tax
(FDT) and interest that is levied and collection under section 98A
will form part of the Karnataka Forest Development Fund. The Forest
Development Tax (FDT) and other amounts specified in section
98B(2), although credited to the Consolidated Fund of the State, is
later appropriated and transferred to the aforesaid Karnataka Forest
Development Fund.
8 In State of M aharashtra v Salvation Army AIR 1975 SC 846, the
Supreme Court held that an impost which initially was in the nature
of a fee would subsequently assume the characteristics of a tax.
The converse is equally true. The decision of the Karnataka High
Court was rendered in 1981 and Forest Development Tax (FDT)
was treated as a tax coming within Entry 54 of List-II.
9 Since the Forest Development Tax (FDT), as a fee, will be levied at
the time of disposing by way of sale or otherwise of forest produce,
the fee is being levied in exercise of the powers of the State
Legislature under Entry 66 of List -II of Schedule VII of the
Constitution. In Corporation of Calcutta v. Liberty Cinemas AIR 1965
SC 1107. Hon’ble Supreme Court held that the fee can also be
under an enactment relatable to the imposition of a tax. In any event,
the State Government has the authority to levy such fee under Entry
47, List III.

Validation:
10 .1 The State Government has levied and collected more than
Rupees 3500 crores as Forest Development Tax (FDT) after the
impugned notification was issued in 2008. All the petitioners in the
above judgment conceded that they were disputing the levy only
upto 2011. However, it is proposed to validate such collections both
by the lease holders of mi nes and quarries situated in forest area
and by the Monitoring Committee, from the purchasers of minerals
till date. The present Bill seeks to achieve the objects as mentioned
above and also to provide for the validation of the levy and collection
of Forest Development Tax (FDT). Clause 6 of the Bill, inter alia,
provides that any demand and/or any action taken under the
provisions of the Act as in existence prior to this amendment Bill
shall be deemed to have taken or levied under the new law after the
Forest [1964: KAR. ACT 5 354
amendment. This will validate the demand made by deeming it to
have been made under the amended law and thus protect the
revenue of the State. This Bill thus cures the infirmity and removes
the defect found in the existing provisions and makes adequate
provisions in the validation clause for a valid imposition of the Forest
Development Tax and Forest Development Fee.

10.2 The State Government proposes to recompute the Forest
Development Fee as per prescribed rules or guidelines. If the
demand as computed as per new rules or guidelines is lesser than
the amount of Forest Development Fee demanded under the
erstwhile section 98A or any notification issued thereunder, the
lesser amount will be payable as Forest Development Fee.
10.3 A provision is also proposed to exempt or reduce Forest
Development Tax (FDT) or Forest Development Fee by Government
by notification prospectively or retrospectively in public interest by
any specific clause of person or in respect of any specified forest
produce.
Penalty:
11 It is made clear that no penal proceedings will be commenced as
a consequence of the retrospective amendments that are
proposed in the Bill. This will also ensure compliance with Article
20(1) of the Constitution.

Rate of Tax or Fee:
12 Demand were raised at the rate of 12% on the disposal of
minerals, although section 98A(1) prescribed a rate of 8% tax
on forest produce other than those mentioned in the erstwhile
proviso and Table thereto. The Karnataka Forest (Amendment)
Act, 2015 imposed a levy of 12% but omitted to amend the rate
retrospectively. It is now made clear that 8% shall be
retrospectively increased to 12% from 16
thAugust, 2008 onwards.
Indeed, demands have been made at this rate from16 thAugust,
2008.

13 By order dated 02.09.2011 and 23.9.2011, the Supreme Court in
WP(C) 562 of 2009 directed that the Monitoring Committee shall
collect Forest Development Tax (FDT) “as applicable”.
Accordingly, all buyers of iron ore, extracted from the leases in
forest area (including the petitioner s before the Karnataka High
Court in W.P. No. 2642 of 2009 and other connected matters),
1964: KAR. ACT 5] Forest 355
have paid Forest Development Tax (FDT) at the rate of 12% to
the Monitoring Committee without any protest or demur. No
application was ever made to seek a clarific ation that the
applicable rate of Forest Development Tax (FDT) was 8% and
not 12%. Accordingly it has been uniformly accepted that Forest
Development Tax (FDT) would be 12%. The petitioners before
the Karnataka High Court have also restricted their claim only for
the period before 23.09.2011. Thus, the rate of Forest
Development Tax or Forest Development Fee is retrospectively
amended to be 12% from the 16
th day of August, 2008.

Rules for computing Forest Development Fee.

14 The rules or guidelines for computing Forest Development Fee
are also being finalised. These rules will also have to be
applicable retrospectively from 16 th day of August, 2008.
Accordingly clause 3 of the Bill enables such rules to be inserted
with retrospective effect.

Hence the Bill.

[L.A. Bill No. 23 of 2016, File No. Samvyashae 32 Shasana 2016]
[Entry 17A and 47 of List III of the Seventh Schedule to the Constitution of
India.]

Forest [1964: KAR. ACT 5 356
1[KARNATAKA ACT]1 No. 5 OF 1964.
(First published in the 1[Karnataka Gazette]1 on the Twenty-seventh day of
February, 1964.)
THE 1[KARNATAKA]1 FOREST ACT, 1963.
(Received the assent of the President on the Twenty-eighth day of January,
1964.)
(As Amended by Karnataka Acts 23 of 1974, 15 of 1976, 50 of 1976,
15 of 1978, 14 of 1980, 1 of 1981, 7 of 1983, 11 of 1984, 10 of 1989,
12 of 1998, 20 of 2000, 20 of 2001, 24 of 2009, 41 of 2015 and 23 of 2016.)
An Act to consolidate and amend the law relating to forests and
forest produce in the 1[State of Karnataka]1.
WHEREAS it is expedient to consolidate and amend the law relating to
forests and forest produce in the 1[State of Karnataka]1;
BE it enacted by the 1[Karnataka]1 State Legislature in the Fourteenth
Year of the Republic of India as follows:—
1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 1.11.1973.
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.— (1) This Act may be called
the 1[Karnataka]1 Forest Act, 1963.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 1.11.1973.
(2) It extends to the whole of the 1[State of Karnataka]1.
1. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 1.11.1973.
(3) It shall come into force on such 1[date]1 as the State Government may,
by notification, appoint.
1. Act has come into force w.e.f. 1.6.1969 by notification. Text of the notification is at
the end of the Act.
2. Definitions.— In this Act, unless the context otherwise requires,—
(1) “cattle” includes cows, bulls, bullocks, elephants, camels, buffaloes,
horses, mares, geldings, ponies, colts, fillies , mules, asses, pigs, rams,
ewes, sheep, lambs, goats and kids;
1[(1-A) "Consideration" means the price received or receivable on the
sale of forest produce and computed in such manner and shall also include
such other amount as may be prescribed by the State Government.]1
1. inserted by Act 23 of 2016 w.e.f 16.08.2008.
1964: KAR. ACT 5] Forest 357
(2) “district forest” includes all land at the disposal of Government not
included within the limits of any reserved or village forest nor assigned at the
survey settlement as free grazing ground or for any other public or
communal purposes:
Provided that it shall be competent for the State Government to modify or
set aside such assignment and constitute any such land as reserved, village
or district forest, or devote the same to any other purpose it may deem fit;
(3) 1[“Deputy Conservatore of Forest”]1 means the Chief Forest Officer of
a Forest Division;
1. Substituted by Act 20 of 2001 w.e.f. 5.9.2002 by notification text of notification is at
the end of the Act.
(4) “Forest Division” means any area declared as such by a notification
by the State Government or by such authority as may be prescribed;
(5) “forest offence” means an offence punishable under this Act or under
any rule made thereunder;
(6) “Forest Officer” means any person appointed by or under the orders
of the State Government to be the 1[Principal Chief Conservator, 2[Additional
Principal Chief Conservator] 2 Chief Conservator, Additional Chief
Conservator]1, Conservator, Deputy Conservator, Assistant Conservator,
Forest Ranger, Forester, Forest Guard or Forest Watcher, or to discharge
any function of a Forest Officer under this Act or any rule or order made
thereunder to be done by a Forest Officer;
1. Substituted by Act 10 of 1989 w.e.f. 16.3.1989.
2. Inserted by Act 20 of 2001 w.e.f. 5.9.2002.
(7) “forest produce” includes,—
(a) the following whether found in or brought from a forest or not, that is
to say,—
timber, charcoal, caoutchouc, catechu, 1[sandalwood]1, lootikai (Capparis
Mooni), wood oil, sandalwood oil, resin, 2[rubber latex, 3[x x x] 3]5 natural
varnish, bark, lac, mahua or ippe (Bassia latifolia) flowers and seeds, seed
of Prosopis juliflora, kuth, and temburni or tupra (Diospyros Melanoxylon)
leaves, rosha (Cymbopogon Martini) grass and oil and myrabolams
(Terminalia Chebula, Terminalia Belerica and
4[Phyllanthus Emblica,
ramapatre and shigakai)]4; and
1. Inserted by Act 1 of 1981 w.e.f. 23.2.1981.
2. Inserted by Act 10 of 1989 w.e.f. 16.3.1989.
3. Omitted by Act 12 of 1998 w.e.f. 11.5.1998.
4. Substituted by Act 23 of 1974 w.e.f. 16.9.1974 by notification. Text of the notification
is at the end of the Act.
Forest [1964: KAR. ACT 5 358
(b) the following when found in, or brought from, a forest, that is to say:-
(i) trees and leaves, flowers and fruits, and all other parts or
produce not hereinbefore mentioned, of trees;
(ii) plants not being trees, (including grass, creepers, reeds and
moss), and all parts or produce of such plants;
(iii) wild animals and pea fowls and skins, tusks, horns, bones, silk
cocoons, honey, and wax and all other parts or produce of wild animals, pea
fowls and insects; and
(iv) peat, surface soil, rock, and minerals (including limestone),
laterite, mineral oils, and all products of mines or quarries; and
1[(iva) “cocoa beans or pods, garcinia fruits, thornless bamboos,
Halmaddi, Raldhupa and Kaidhupa”;]1
1. Omitted by Act 12 of 1998 w.e.f. 11.5.1998.
(v) such other products of forests as the State Government may, by
notification, declare to be forest produce;
(8) “land at the disposal of the State Government” means land in respect
of which no person has acquired,—
(a) a permanent, heritable and transferable right of use and occupancy
under any law for the time being in force; or
(b) any right created by grant or lease made or continued by or on
behalf of Government;
(9) “magistrate” means a magistrate of the first or second class;
(10) “notification” means a notification published in the official Gazette;
(11) “owner” includes a Court of Wards in respect of property under the
superintendence or charge of such court;
(12) “prescribed” means prescribed by rules made by the State
Government under this Act;
(13) "protected forest" means any area at the disposal of Government
which has been placed under special protection under clause (ii) of sub-
section (2) of section 33 or is declared to be a protected forest under section
35;
(14) “reserved forest” means any land settled and notified as such in
accordance with the provisions of Chapter II of this Act;
(15) “reserved trees” means teak or sa

Excerpt shown. Open the full act in Lexace.

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