The ORISSA KENDU LEAVES (CONTROL OF TRADE) ACT, 1961

*THE ORISSA KENDU LEA VES (CONTROL OF
TRADE) ACT, 1961
ORISSA ACT 28 OF 1961
Received the assent of the President on the 28th December, 1961 first published in
an extra ordinary issue of the Orissa Gazette, dated the 3rd January 1962
AN ACT TO PROVIDE FOR CONTROL OF TRADE IN KENDU LEAVES.
WHEREAS it is expedient to provide for regu lation of trade in Kendu leaves
by creation of State monopoly in such trade;
It is hereby enacted by the Legislature of the State of Orissa in the Twelfth
Year of the Republic of India, as follows:"
1. Short title, extent and commencement.:- (1) This Act may be
called the Orissa Kendu Leaves (Control of Trade) Act, 1961.
(2) It extends to the whole of the State of Orissa.
(3) It shall come into force (Came into force with effect from the 5th
January 1962"Vide Notifica tion No. 330-C. F . dated the 4th January 1962, published
in Orissa Gazette, Extraordinary, dated the 6th January 1962 (No. 5)) in any
district on such date as Government may, by notification, appoint.
2. Definitions.:- In this Act unless the context otherwise Definition
requires-
(a) "agent" means an agent appointed under section 8;
(b) "Government" means the State Govern ment of Orissa;
1[(c) "Grama Panchayat" means a Grama Panchayat constituted under
the Orissa Grama Panchayat Act, 1964;]
(d) "grower of Kendu leaves" means any person who owns lands on
which Kendu plants grow or who is in possession of such lands under
a lease or otherwise;
2[(e) "Samiti" means a Samiti constituted under the Orissa Panchayat
Samiti Act, 1959;]
*. Published vide Orissa Act 26 of 1961
1. Substituted by the Orissa Kendu Leaves (Control of Trade) (Amendment) Act, 1969
(Or. Act 6 of 1969 ), S. 2 (a)
2. Substituted by ibid, S. 2 (b)
The Odisha   Gazette
EXTRAORDINARY
PUBLISHED BY AUTHORITY
No. Dated :  3rd January 1962
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(f) " proscribed" means prescribed by the rules made under this Act;
(g) "permit" means a permit issued under section 3; and
1[(g-1) "registered grower" means a grower of Kendu leaves who has
registered him self under section 9;]
(h) "unit" means a unit constituted under section 5.
3. Restriction on purchase.:- (1) No person other than-
(a) the Government;
(b) an officer of Government authorised in that behalf; or
(c) an agent in respect of the unit in which the leaves have grown;
shall purchase or transport Kendu leaves.
Explanation I - Purchase of Kendu leaves from the aforesaid Government
officer or agent shall not be deemed to be a purchase in contravention of the
provisions of this Act.
Explanation II - A person having no interest in the land who has acquired
the right to collect Kendu leaves grown on such land shall be deemed to have
purchased such leaves in contravention of the provi sions of this Act.
(2) Notwithstanding anything contained in sub -section (1)-
(a) a grower of Kendu leaves may transport his leaves from any place
within the unit wherein such leaves have grown to any other place in
that unit;
2[x x x]
3[Provided that a registered grower may also transport his leaves from
any place within the unit wherein such leaves have grown to any other place
outside the unit for the purpose of sale to the Government or any agent in respect
of the unit author ised to purchase the same from him; and]
(b) leaves purchased from Government or any officer or agent specified
in the said sub -section by any person for manufacture of bidis within
the State or by any person for sale outside the State may be trans
ported by such person outside the unit under a permit to be issued
in that behalf by such authority and in such manner as may be
prescribed and the permit issued shall be subject to such conditions
as may be prescribed.
4. Sale price.:- (1) The Government shall, after consultation with the
Advisory Committee constituted under sub-section (2) fix the price at which Kendu
leaves shall be purchased by them or by any officer or agent from growers of
Kendu leaves during any year and shall publish the same in the prescribed manner
not later than the 31st day of January of that year and the price so fixed shall not
be altered during such year:
1. Inserted by the Orissa Kendu Leaves (Control of Trade) (Amendment) Act, 1969 (Or-
Act 6 of 1959), S. 2 (c)
2. Omitted by ibid, S. 3
3. Inserted by ibid
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Provided that different prices may be fixed for different units having regard
to-
(a) prices fixed under any law during the preceding three years in respect
of the area comprised in the unit;
(b) quality of the leaves grown in the unit;
(c) transport facilities available in the unit;
(d) the cost of transport; and
(e) general level of wages for unskilled labour prevalent in the unit.
(2) The Government shall constitute an Advisory Committee for the State
consisting of not less than six members 'as may be notified by Government from
time to time:
Provided that not more than one-third of such members shall be from
amongst persons who are growers of Kendu leaves.
(3) It shall be the duty of the aforesaid Committee to advise Government
on such matters as may be referred to it by Government.
(4) The business of the Committee shall be conducted in such manner and
the members shall be entitled to such allowances, if any, as may be prescribed.
5. Constitution of units.:- The Government may divide each district into
such number of units as they deem fit.
6. Opening of depots and publication of price list, etc., at the
depot.:- In each unit there shall be such number of depots as Government may
direct to be set up such places as may be convenient for the transaction of
business and the price list of Kendu leaves and the hours of business shall be
prominently displayed on the notice board kept for the purpose at every such
depot.
7. Government and their officer or agent bound to purchase.:-
(1) The Government or their authorised officer or agent shall be bound to
purchase at the price fixed under section 4 Kendu leaves which are offered to
them for sale at the depot during the hours of business:
Provided that it shall be open to Government or any officer or agent, not to
purchase any leaves which in their opinion are not fit" for the purpose of
manufacture of bidis.
1[(2) Any person aggrieved by the rejection of his leaves by the Government
or by an authorised officer or agent under the proviso to sub-section (1), may,
within fifteen days therefrom, refer the matter to the Divisional Forest Officer, or
such other officer as may be empowered by Government in this behalf, having
jurisdiction over the unit in which the leaves have grown.
(2-a ) Any person, to whom price is paid at a rate lower than the rate fixed
1. Substituted by the Orissa Kendu Leaves (Control of Trade) Amendment) Act, 1969
(Or. Act 6 of 1969), S. 4
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under section 4 for Kendu leaves sold by him to the Government or their authorised
officer or agent, may refer the matter to the aforesaid officer within fifteen days
from the date of such payment.
(2-b) On receipt of a reference under sub-section (2), the Divisional Forest
Officer or such other office, as the case may be, shall hold an enquiry on the spot
or at the headquarters in the prescribed manner and after hearing the parties
concerned or their authorised agent shall pass such orders as he deems fit and in
case he finds the rejection of the leaves to be improper, he may:"
(i) if he considers the leaves in question still suitable for the manufacture
of bidis, direct the Government or the authorised officer or agent, as
the case may be, to purchase the same and also to pay to the person
aggrieved, such further compen sation not exceeding twenty per
centum of the price of the leaves payable to him, as he may deem
fit;
(ii) if he considers that the leaves in question have since become unsuitable
for manu facture of bidis, direct the Government or thier authorised
officer or agent, as the case may be, to pay to the person aggrieved
an amount equal to the price of such leaves payable under sub-
section (1) and such further compensation not exceeding twenty per
centum of such price as he may deem fit.
(2-c) On receipt of a reference under sub-section (2-a), the said officer
shall hold an enquiry in the manner as aforesaid and if he is satisfied about the
correctness of the allegations made in the reference he may direct the Government
or their authorised officer or agent, as the case may be, to pay to the person
making the reference so much of the price as has not been paid to him and such
further compen sation not exceeding twenty per centum of the amount so directed
to be paid as he may deem fit.]
(3) Nothing in this section shall be construed so as to debar the appropriation
of leaves offered for sale if Government or their authorised officer, or agent have
reason to believe that the leaves apper tain to forests or lands belonging to
Government and paying only such collection charges, if any, as Government may
from time to time determine:
Provided that in case of any dispute the Divisional Forest Officer or such
other Officer who may be specifically empowered in this behalf as specified in
sub-section (2) shall hear and dispose of the same in the manner provided therein.
8. Appointment of agents. :- (1) The Government may, for the purpose
of purchase of and trade in Kendu leaves on their behalf, appoint agents in respect
of different units and any such agent may be appointed in respect of more than
one unit:
1[Provided that the Government may for the purpose of purchase of leaves
from the registered growers, appoint an additional agent in respect of one of
more units].
1. Inserted by the Orissa Kcndu Leaves (Control of Trade) (Amendment) Act, 1969 (Or-
Act 6 of 1959), S. 5
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(2) The procedure for appointment of agents shall be as may be prescribed.
9. Registration.:- Every grower of Kendu leaves shall, if the quantity of
leaves grown by him during a year is likely to exceed  1[tea standard maunds]
1[three hundred and fifty kilogrammes], get himself registered in the
prescribed manner 2[on payment of such fees as may be prescribed and shall be
liable to maintain accounts and submit returns in such form and manner as may
be prescribed].
10. Disposal of leaves.:- Kendu leaves purchased by Government or by
their officers or agents under this Act shall be sold or otherwise disposed of in
such manner as Government may direct.
11. Application of net profits. :- (1) Out of the net profits derived by
Government, from the trade in Kendu leaves under this Act an amount not being
less than fifty per centum there of shall be paid to the Samitis and Grama
Panchayats.
(2) The allocation of the said amount among the different Samitis and
Grama Panchayats as aforesaid shall be as Government may determine from
time to time.
3[(3) Subject to such conditions as may be pres cribed the sums so paid to
the Samitis and Grama Panchayats shall be utilised in accordance with the provisions
of the Orissa Panchayat Samiti Act, 1959 and the Orissa Grama Panchayat Act,
1964, respectively.]
12. Delegation of powers.:- The Government may, by order, delegate
any of their powers or functions under this Act or the rules made thereunder to
any officer or authority who shall exercise or perform the same subject to such
conditions and restrictions as Government may specify in the order.
13. Power of entry, search, seizure, etc.:- (1) Any police officer not
below the rank of an assistant sub-inspector and any other person authorised by
Government may, with a view to securing compliance with the provisions of this
Act or the rules made thereunder or to satisfying himself that the said provisions
have been complied with"
(i) stop and search any person, boat, vehicle or receptacle used or
intended to be used for the transport of Kendu leaves;
(ii) enter and search any place;
(iii) seize Kendu leaves in respect of which he suspects that any provision
of this Act or the rules made thereunder has been, is being or is
about to be contra vened along with the receptacle containing such
leaves, or the vehicles or boats used in carrying such leaves.
1. Substituted by the Orissa Kcndu Leaves (Control of Trade) (Amendment) Act, 1969
(Or- Act 6 of 1959), S. 6
2. Added by the Orissa Kendu Leaves (Control of Trade) (Amendment) Act, 1963 (Or.
Act. 17 of 1963), S. 2)
3. (Substituted by the Orissa Kendu Leaves (Control of Trade) Amendment) Act, 1969
(Or. Act 6 of 1969), S. 7)
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(2) The provisions of sections 102 and 103 of the Code of Criminal
Procedure, 1898, relating to search and seizure shall, so far as may be, apply to
searches and seizures under this section.
14. Penalty.:- If any person contravenes any of the provisions of this Act
or the rules made thereunder"
(a) he shall he punishable with imprisonment which shall extend to one
year or with fine which may extend to five hundred rupees or with
both;
(b) the Kendu leaves in respect of which such contravention has been
made or such part thereof as to the Court may seem fit shall be
forefeited to the Govern ment:
Provided that if the Court is of the opinion that it is not necessary to direct
forfeiture in respect of the whole, or as the case may be, any part of the leaves,
it may, for reasons to be recorded, reliain from doing so.
15. Attempts and abetments. :- Any person who attempts to contravene
or abets the contravention of any provision of this Act or the rules made thereunder
shall be deemed, to have contravened such provision.
16. Cognizance of offences. :- No Court shall take cognizance of any of
offence offence punishable under this Act except on a report in writing of the
facts constituting such offence made by any Forest Officer not below the rank of
a Divisional Forest Officer or by any other officer authorised in that behalf by the
Government.
17. Savings in respect of acts done in good faith. :- (1) No suit,
prosecution or other legal proceed ing shall lie against any person for anything
which is in good faith done or intended to be so done in pursuance of this Act or
the rules made thereunder.
(2) No suit or other legal proceedings shall lie against Government for any
damage caused or likely, to be caused or any injury suffered or likely to be
suffered by virtue of the provisions of this Act or by anything which is in good faith
done or intended to be so done in pursuance of this Act or the rules made
thereunder.
18. Power to make rules.:- (1) The Government may make rules for
carrying out all or any of the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing
powers they may make rules in respect of all or any of the following matters,
namely:-
(a) publication of the price lists of Kendu leaves;
(b) manner of holding enquiries under this Act;
(c) procedure to be followed in making appoint ment of agents;
(d) the authority by whom, the manner in which and the conditions subject
to which permits may be issued;
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(e) the manner of registration under section 1[and the fees therefor];
2[(ee) the forms and manner in which accounts shall be maintained and
returns shall be submitted;]
(f) the conditions subject to which sums allotted to Samitis and Grama
Panchayats shall be utilised;
(g) the forms in which applications shall be made and permits shall be
issued; and
(h) any other matter which is either expressly or impliedly required to be
prescribed under this Act.
19. Repeal. :- On the coming into force of this Act in any district the
Orissa Essential Articles Control and Requisitioning (Temporary Powers) Act, 1955
shall, in so far as it relates to Kendu leaves, stand repealed in respect of such
district.
20. Power to remove doubts and difficulties.:- If any doubt or difficulty
arises in giving effect to the provisions of this Act, the Government may, as occasion
may require, by order , do anything not inconsistent with the provisions of this Act,
or the rules made, thereunder , which appears to them necessary for purposes of
removing the doubt or difficulty.
1. Added by the Orissa Kendu Leaves (Control of Trade) (Amendment) Act, 1963 (Or.
Act 17 of 1963), S. 3 (a)
2. Inserted by ibid. S. 3 (b)

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