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The A compensatory afforestation act 2016

Punjab · state statute
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REGISTERED NO. DL—(N)04/0007/2003—16 
 
 
EXTRAORDINARY 
   
PART II 
Section 1  
PUBLISHED  BY AUTHORITY 
 
No. 45] NEW DELHI, WEDNESDAY, AUGUST 3, 2016/ SHRAVANA 12, 1938 (SAKA)  
 
Separate paging is given to this Part in order that it may be filed as a separate compilation. 
MINISTRY OF LAW AND JUSTICE 
(Legislative Department) 
New Delhi, the 3rd August, 2016/Shravana 12, 1938 (Saka) 
The following Act of Parliament received the assent of the President on the  
3rd August, 2016, and is hereby published for general information:— 
THE COMPENSATORY AFFORESTATION FUND ACT, 2016 
NO. 38 OF  2016 
[3rd August, 2016.] 
  An Act to provide for the establishment of funds under the public accounts of India 
and the public accounts of each State and crediting thereto the monies received from the 
user agencies towards compensatory afforestation, additional compensatory 
afforestation, penal compensatory afforestation, net present value and all other amounts 
recovered from such agencies under the Forest (Conservation) Act, 1980; constitution of an 
authority at national level and at each of the State and Union territory Administration for 
administration of the funds and to utilise the monies so collected for undertaking artificial 
regeneration (plantations), assisted natural regeneration, protection of forests, forest related 
infrastructure development, Green India Programme, wildlife protection and other related 
activities and for matters connected therewith or incidental thereto. 
WHEREAS the Supreme Court in its order in T.N. Godavarman Thirumulpad vs. Union 
of India and Others [Writ Petition (Civil) No. 202 of 1995], dated the 30th October, 
2002, observed that a Compensatory Afforestation Fund be created in which all the 
monies received from the user agencies towards compensatory afforestation, additional 
compensatory afforestation, penal compensatory afforestation, net present value of 
the diverted forest land or catchment area treatment plan shall be deposited; 
 
2 THE GAZETTE OF INDIAEXTRAORDINARY [PART II— 
 
AND WHEREAS it had also been observed that the money received from the user 
agencies in cases where forest land diverted falls within protected areas, that is, 
the areas notified under the Wild Life (Protection) Act,1972 for undertaking 
activities related to protection of biodiversity or wildlife s hall also be deposited 
in the Fund; 
AND WHEREAS the Supreme Court has directed that, besides artificial regeneration 
(Plantations), the Fund shall also be utilised for undertaking assisted natural 
regeneration, protection of forests, infrastructure develop ment, wildlife protection 
and other related activities and an independent system of concurrent monitoring and 
evaluation should be evolved and implemented through the Compensatory 
Afforestation Fund to ensure effective and proper utilisation of funds; 
AND WHEREAS the Supreme Court in its judgment dated 26th September, 2005 in the 
said Writ Petitiion observed that the Fund generated for protecting ecology and 
providing regeneration should not be treated as a Fund under article 266 and article 
283 of the Constitution; 
AND WHEREAS in its direction dated the 5th May, 2006, the Supreme Court had 
directed that since the Government has not constituted a Compensatory  
Afforestation Fund Management and Planning Authority (hereinafter referred to 
as Authority), an ad hoc Authority should be constituted till the Compensatory 
Afforestation Fund Management and Planning Authority becomes operational 
and directed to centrally pool the money recovered on behalf of the said Authority 
lying in the States and Union territories into the ad hoc Compensatory 
Afforestation Fund Management and Planning Authority;  
AND WHEREAS Central Government formulated guidelines dated the 2nd July, 2009 
on the subject of State Authority for utilisation of funds lying with the ad hoc 
Authority; 
AND WHEREAS in its direction dated the 10th July, 2009, the Supreme Court had 
directed that the guidelines and structure of the State Authority prepared by the 
Central Government may be notified and implemented; 
AND WHEREAS in its directions dated the 10th July, 2009, the Supreme Court 
further directed that till an alternative system is put in place, after obtaining 
permission from the Supreme Court, the money towards compensatory 
afforestation, net present value and protected areas (national parks, wildlife  
sanctuaries) shall continue to be deposited in the ad hoc Authority;  
AND WHEREAS in compliance of the directions of the Supreme Court including its 
order dated the 5th May, 2006, over rupees thirty eight thousand crores as 
collected by the State Governments and Union territory Administrations have 
been placed under the ad hoc Authority, and deposited in the nationalised  banks;  
AND WHEREAS absence of permanent institutional mechanism for utilisation of 
funds collected by the State Governments and Union territory Administrations is 
the main reason for accumulation of huge unspent funds in the ad hoc Authority;  
NOW, THEREFORE, based on the above orders, directions and observations of the 
Supreme Court to ensure safety, security and expeditious utilisation in a 
transparent manner of funds accumulated with the ad hoc Authority and the 
funds to be collected by the State Governments and Union territory 
Administrations, it is proposed to create a National Compensatory Afforestation 
Fund and a National Compensatory  Afforestation  Fund Management and Planning 
Authority at the national level, and a State Compensatory Afforestation Fund  
and a State Compensatory Afforestation Fund Management and Planning 
Authority in each State and Union territory, by an Act of Parliament.  
 
 
 
35 of 1972. 
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 3 
 
BE it enacted by Parliament in the Sixty-seventh Year of the Republic of India as 
follows:— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
69  of 1980.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
69  of 1980.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
69  of 1980.  
CHAPTER I 
PRELIMINARY 
1. (1) This Act may be called the Compensatory Afforestation Fund Act, 2016. 
(2) It extends to the whole of India except the State of Jammu and Kashmir. 
(3) Save as otherwise provided in this Act, it shall come into force on such date as the 
Central Government may, by notification in the Official Gazette, appoint. 
2. In this Act, unless the context otherwise requires,— 
(a) “ad hoc Authority” means the ad hoc Compensatory Afforestation Fund 
Management and Planning Authority constituted under the order dated the 5th May, 
2006 of the Supreme Court in T.N. Godavarman Thirumulpad vs. Union of India and 
Others, [Writ Petition (Civil) No. 202 of 1995]; 
(b) “Chairperson, National Authority” means the Chairperson of the governing 
body of the National Authority; 
(c) “Chairperson, State Authority” means the Chairperson of the governing 
body of the State Authority; 
(d) “compensatory afforestation” means afforestation done in lieu of the diversion 
of forest land for non-forestry use under the Forest (Conservation) Act, 1980; 
(e) “environmental services” includes— 
(i) provision of goods such as wood, non -timber forest products, fuel, 
fodder, water and provision of services such as grazing, tourism, wildlife protection 
and life support; 
(ii) regulating services such as flood moderation, carbon sequestration 
and health of soil, air and water regimes; 
(iii) supporting such other services necessary for the production of 
ecosystem services, biodiversity, nutrient cycling and primary production 
including pollination and seed dispersal; 
(f) “Head of the regional office” means the senior-most officer appointed by the 
Central Government at regional office to deal with the forest c onservation matters 
under the Forest (Conservation) Act, 1980; 
(g) “monitoring group” means a group of experts to monitor the activities 
undertaken from amounts released from the National Fund and State Fund constituted 
under sub-section (3) of section 9; 
(h) “National Authority” means National Compensatory Afforestation Fund 
Management and Planning Authority constituted under section 8; 
(i) “National Fund” means the National Compensatory Afforestation Fund 
established under sub-section (1) of section 3; 
(j) “net present value” means the quantification of the environmental services 
provided for the forest area diverted for non-forestry uses, as may be determined by an 
expert committee appointed by the Central Government from time to time in this regard; 
(k) “penal compensatory afforestation” means afforestation work to be 
undertaken over and above the compensatory afforestation specified in the guidelines 
issued under the Forest (Conservation) Act, 1980, in lieu of the extent of area over 
which non-forestry activities have been carried out without obtaining prior approval 
of the competent authority under the Forest (Conservation) Act, 1980; 
 
 
 
 
Short title, 
extent and 
commencement. 
 
 
 
Definitions. 
4 THE GAZETTE OF INDIAEXTRAORDINARY [PART II— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Establishment 
of National 
Fund. 
(l) “prescribed” means prescribed by rules made by the Central Government in 
consultation with the State Governments under this Act; 
(m) “State Authority” means the State Compensatory Afforestation Fund 
Management and Planning Authority constituted under section 10; 
(n) “State Fund” means the State Compensatory Afforestation Fund established 
by each State under sub-section (1) of section 4; 
(o) “State Government” includes Union territory Administration; 
(p) “user agency” means any person, organisation or company or department of 
the Central Government or State Government making a request for diversion or de -
notification of forest land for non-forest purpose or using forest land for non-forest 
purpose in accordance with the provisions contained in the Forest (Conservation) 
Act, 1980 and the rules made and guidelines issued, thereunder. 
CHAPTER II 
ESTABLISHMENT, MANAGEMENT AND UTILISATION OF NATIONAL COMPENSATORY AFFORESTATION 
FUND AND STATE COMPENSATORY AFFORESTATION FUNDS 
3. (1) With effect from such date as the Central Government may, by notification in the 
Official Gazette, appoint in this behalf, there shall be established for the purposes of this 
Act, a special Fund to be called the “National Compensatory Afforestation Fund” under the 
public account of India. 
(2) The National Fund shall be under the control of the Central Government and 
managed by the National Authority in such manner as may be prescribed. 
(3) On the date of establishment of the National Fund, all monies collected by the 
State Governments and Union territory Administrations which has been placed under the 
ad hoc Authority and deposited in the nationalised banks shall be transferred to the National 
Fund. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
69 of 1980. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Establishment 
of State Fund. 
(4) There shall also be credited into the National Fund, by each State on yearly basis, 
ten per cent. of the funds realised from the user agencies in respect of the forest land 
diverted in their favour, which have been credited directly into the State Fund. 
(5) There shall also be credited to the National Fund— 
(a) grants-in-aid received, if any, by the National Authority; 
(b) any loan taken or any borrowings made by the National Authority; 
(c) any other sums received by the National Authority by way of benefaction, 
gift or donations. 
(6) The monies received in the National Fund shall be an interest bearing fund under 
public accounts of India. 
(7) The balance in the National Fund shall be non-lapsable and get interest as per the 
rate declared by the Central Government on year to year basis. 
4. (1) With effect from such date as each State Government may, by notification in the 
Official Gazette, appoint in this behalf, there shall be established for the purposes of this 
Act, a special Fund to be called the “State Compensatory Afforestation Fund-……… (name 
of State)” under public accounts of such State: 
Provided that in case of Union territory having no legislature, such fund shall be 
established under the public account of Union of India with effect from such date as the 
Union territory Administration may, by notification in the Official Gazette, appoint in this 
behalf. 
(2) The State Fund in each State shall be under the control of the State Government of such 
State and managed by the State Authority of such State, in such manner as may be prescribed. 
(3) There shall be credited into the State Fund of a State— 
(i) the unspent balance of all monies which has been transferred by ad hoc 
Authority to the State Compensatory Afforestation Compensatory Afforestation Funds 
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 5 
 
 
 
 
 
 
 
 
 
 
 
 
69  of 1980.  
 
 
 
53  of 1972.  
Management and Planning Authority constituted in such State in compliance of 
guidelines dated the 2nd July, 2009; 
(ii) all monies transferable from the National Fund under clause (a) of section 5; 
(iii) all monies realised from user agencies by such State towards compensatory 
afforestation, additional compensatory afforestation, penal compensatory afforestation, 
net present value, catchment area treatment plan or any money for compliance of 
conditions stipulated by the Central Government while according approval under the 
provisions of the Forest (Conservation) Act, 1980; and 
(iv) the funds recoverable from user agencies by such State in cases where 
forest land diverted falls within the protected areas, that is, areas notified under sections 
18, 26A or 35 of the Wild Life (Protection) Act, 1972 for undertaking activities relating 
to the protection of biodiversity and wildlife. 
(4) A State Government may also credit to the State Fund constituted by it— 
(i) grants-in-aid received, if any, by the State Authority; 
(ii) any loan taken or any borrowings made by the State Authority; 
(iii) any other sums received by the State Authority by way of benefaction, gift 
or donations. 
(5) The monies received in the State Fund shall be an interest bearing fund under 
public accounts. 
(6) The balance in each State Fund shall be non-lapsable and get interest as per the 
rate declared by the Central Government on year to year basis. 
5. Save as otherwise provided in this Act, the monies available in the National Fund 
shall be disbursed and utilised in the following manner, namely:— 
(a) ninety per cent. of the all monies collected by a State, which has been placed 
under the ad hoc Authority and the interest accrued thereon, shall be transferred to 
the State Fund established in such state under sub-section (1) of section 4; 
(b) the balance ten per cent. of all monies collected by the States and Union 
territory Administrations, which has been placed under the ad hoc Authority and the 
interest accrued thereon, and all fresh accrual to the National Fund, as provided in 
sub-section (4) of section 3, and the interest accrued thereon, shall be utilised for 
meeting-— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disbursement 
and utilisation 
of National 
Fund. 
(i) the non-recurring and recurring expenditure for the management of the 
National Authority including the salary and allowances payable to its officers 
and other employees; 
(ii) the expenditure incurred on monitoring and evaluation of works executed 
by the National Authority and each State Authority; 
(iii) the expenditure incurred on specific schemes approved by governing 
body of the National Authority. 
Explanation.—For the purposes of this section, “scheme’’ includes any institute, 
society, centre of excellence in the field of forest and wildlife, pilot schemes, standardisation 
of codes and guidelines and such other related activities for the forestry and wildlife sector. 
6. Save as otherwise provided in this Act, the monies available in a State Fund shall 
be disbursed and utilised in the following manner, namely:— 
(a) the money received for compensatory afforestation, additional compensatory 
afforestation, penal compensatory afforestation, catchment area treatment plan and 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Disbursement 
and 
utilisation of 
State Fund. 
6 THE GAZETTE OF INDIAEXTRAORDINARY [PART II— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accounting 
procedure.  
 
 
 
 
 
Constitution 
of National 
Authority.  
for any other site specific scheme may be used as per site-specific schemes submitted 
by the State along with the approved proposals for diversion of forest land under the 
Forest (Conservation) Act, 1980; 
(b) the monies received towards ne t present value and penal net present value shall 
be used for artificial regeneration (plantation), assisted natural regeneration, forest 
management, forest protection, forest and wildlife related infrastructure development, wildlife 
protection and management, supply of wood and other forest produce saving devices and 
other allied activities in the manner as may be prescribed; 
(c) the interest accrued on funds available in a State Fund and the interest accrued on 
all monies collected by th e State Governments, which has been placed under the ad hoc 
Authority and deposited in the nationalised banks, in compliance of the directions of the 
Supreme Court dated the 5th May, 2006, shall be used for conservation and development of 
forest and wildlife in the manner as may be prescribed; 
(d) all monies realised from the user agencies in accordance with the decision taken 
by the Standing Committee of the National Board for Wild Life constituted under section 5A 
of the Wild Life (Protection) Act, 1972 or the orders of the Supreme Court involving cases of 
diversion of forest land in protected areas shall form the corpus and the income therefrom 
shall be used exclusively for undertaking protection and conservation activities in protected 
areas of the State including facilitating voluntary relocation from such protected areas and 
in exceptional circumstance, a part of the corpus may also be used subject to prior approval 
of the National Authority; 
(e) ten per cent. of amount realised from the user agencies, which has been credited 
directly into the State Fund in a year shall be transferred to the National Fund to meet 
expenditure as provided in clause (b) of section 5; 
(f) the non-recurring and recurring expenditure for the management of a State Authority 
including the salary and allowances payable to its officers and other employees may be met 
from a part of the interest accrued on the amounts available in the State Fund, in the manner 
as may be prescribed; 
(g) in case of trans -boundary forestry or environmental implication of diversion of 
forest land for non -forest purposes in a particular State, if found expedient and necessary 
by the National Authority, it may, in consultation with the concerned Sate Authorities order 
that such sum as may be justified for reparation of the trans-boundary effects, be transferred 
to State Fund of such State or States; 
(h) State Authority shall release monies to agencies identified for execution of activities 
in pre -determined installments as per the annual plan of operation finalised by steering 
committee of such State Authority and executive committee of the National Authority. 
7. The accounting procedure to regulate the manner of crediting the monies  to the 
National Fund and State Fund in a year shall be in such manner as may be prescribed.  
 
CHAPTER III 
CONSTITUTION OF NATIONAL AUTHORITY AND STATE AUTHORITIES 
8. (1) With effect from such date as the Central Government may, by notification in the 
Official Gazette, appoint in this behalf, there shall be constituted a National Authority to be 
called the “National Compensatory Afforestation Fund Management and Planning 
Authority”. 
(2) The National Authority shall manage and utilise the National Fund for the purposes 
of this Act. 
(3) The National Authority shall consist of a governing body and shall be assisted by 
an executive committee, monitoring group and administrative support mechanism. 
 
 
 
69  of 1980.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
35  of 1972.  
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 7 
 
 
(4) The governing body of the National Authority shall consist of the following, 
namely:— 
(i) Minister for Environment, Forest and Climate Change, Government of India— 
Chairperson, ex officio; 
(ii) Secretaries of Ministries dealing with Environment, Forest, Climate Change, 
Finance (Expenditure), Rural Development, Land Resources, Agriculture, Panchayati 
Raj, Tribal Development, Science, Technology, Space and Earth Sciences and Chief 
Executive Officer, National Institution for Transforming India Ayog, Government of 
India—Members, ex officio; 
(iii) Director General of Forests and Special Secretary, Ministry of Environment, 
Forest and Climate Change, Government of India—Member, ex officio; 
(iv) Additional Director General of Forests (Forest Conservation), Ministry of 
Environment, Forest and Climate Change, Government of India—Member, ex officio; 
(v) Additional Director General of Forests (Wildlife), Ministry of Environment, 
Forest and Climate Change, Government of India—Member, ex officio; 
(vi) Mission Director, National Mission for a Green India, Ministry of 
Environment, Forest and Climate Change, Government of India—Member, ex officio; 
(vii) Financial Adviser, Ministry of Environment, Forest and Climate Change, 
Government of India—Member, ex officio; 
(viii) five Principal Chief Conservator of Forests, not more than one from each of 
the ten regions, to be nominated by the Ministry of Environment, Forest and Climate 
Change, Government of  India on  rotation basis for a  period of  two years,  
at a time— Members, ex officio; 
(ix) Inspector General of Forests (Forest Conservation), Ministry of Environment, 
Forest and Climate Change, Government of India—Member, ex officio; 
(x) five experts, one each from environmentalists, conservationists, scientists, 
economists, and social scientists appointed by the Central Government for a period of 
two years subject to not more than two consecutive terms— Members. 
(5) The Central Government may appoint an officer of the rank of an Additional 
Director General of Forests as the Chief Executive Officer of the National Authority who 
shall be the Member- Secretary of the governing body and the executive committee of the 
National Authority. 
9. (1) The governing body of the National Authority shall, in performance of its 
functions and powers under the Act, be assisted by the executive committee and the 
monitoring group. 
(2) The executive committee of the National Authority shall consist of the following, 
namely:— 
(i) Director General of Forests and Special Secretary, Ministry of Environment, 
Forest and Climate Change, Government of India—Chairperson, ex officio; 
(ii) Additional Director General of Forests (Forest Conservation), Ministry of 
Environment, Forest and Climate Change, Government of India—Member, ex officio; 
(iii) Additional Director General of Forests (Wildlife), Ministry of Environment, 
Forest and Climate Change, Government of India—Member, ex officio; 
(iv) Mission Director, National Mission for a Green India, Ministry of 
Environment, Forest and Climate Change, Government of India—Member, ex officio; 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Executive 
committee 
and 
monitoring 
group of 
National 
Authority. 
8 THE GAZETTE OF INDIAEXTRAORDINARY [PART II— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Constitution 
of State 
Authority. 
(v) Financial Adviser, Ministry of Environment, Forest and Climate Change, 
Government of India—Member, ex officio; 
(vi) Head of all regional offices of the Ministry of Environment, Forest and 
Climate Change, Government of India —Members, ex officio; 
(vii) Inspector General of Forests (Forest Conservation), Ministry of Environment, 
Forest and Climate Change, Government of India—Member, ex officio; 
(viii) a professional ecologist, not being from the Central Government, to be 
appointed by the Central Government— Member; 
(ix) three experts, one each in the fields of forestry, tribal development, forest 
economy development, not being from the Central Government, to be appointed by 
the Central Government— Members; 
(x) Chief Executive Officer of the National Authority—Member-Secretary. 
(3) The monitoring group shall consist of six experts in the field of environment, 
economics, wildlife, forest, remote sensing and geographical information system and social 
sector and the Director General, Forest Survey of India, Ministry of Environment, Forest 
and Climate Change, Government of India. 
(4) The following officers shall be appointed by the National Author ity for a period 
not exceeding five years, to assist the executive committee in performance of its functions 
and powers under the Act, namely:— 
(i) Joint Chief Executive Officer of the rank of Inspector General of Forests; 
(ii) Financial Advisor and Chief Accounts Officer of the rank of Director in the 
Government of India; and 
(iii) Deputy Chief Executive Officers of the rank of Deputy Inspector General of 
Forests. 
(5) The governing body of the National Authority may with the prior concurrence of 
the Central Government create posts in the National Authority at the level of Assistant 
Inspector General of Forests and other officials to assist the executive committee and 
monitoring group in performance of its functions under the Act. 
10. (1) With effect from such date as the Central Government may, by notification in 
the Official Gazette, appoint in this behalf, there shall be constituted a State Authority to be 
called the “State Compensatory Afforestation Fund Management and Planning  Authority” 
in each State. 
(2) The Central Government may, if so desires, appoint different dates for constitution 
of State Authority in each of the States. 
(3) The State Authority constituted in a State shall be responsible for the management 
of the State Fund of such State and its utilisation for the purposes of the Act. 
(4) The State Authority shall consist of a governing body and shall be assisted by a 
steering committee and an executive committee. 
(5) The governing body of a State Authority shall consist of the following, namely:— 
(i) Chief Minister of the State and in case of a Union territory having no 
legislature, the Lieutenant Governor or the Administrator, as the case may be — 
Chairperson, ex officio; 
(ii) Minister of Forests—Member, ex officio; 
(i ii) Chief Secretary—Member, ex officio; 
(iv) Principal Secretaries of the Departments dealing with Environment, Finance, 
Planning, Rural Development, Revenue, Agriculture, Tribal Development, Panchayati 
Raj, Science and Technology—Members, ex officio; 
(v) Principal Chief Conservator of Forests (Head of Forest Force)—Member, ex 
officio; 
(vi) Chief Wildlife Warden—Member, ex officio; 
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 9 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
69 of 1980. 
(6) Principal Secretary in-charge of the Forest Department in a State shall be Member 
Secretary of the State Authority in such State. 
(7) The State Government shall appoint an officer of the rank not below the rank of a 
Chief Conservator of Forests as the Chief Executive Officer of the State Authority who shall 
be the Member -Secretary of the steering committee and the executive committee of the 
State Authority. 
11. (1) The governing body of the State Authority shall, in performance of its functions 
and powers under the Act, be assisted by the steering committee and the executive committee. 
(2) The steering committee of a State Authority shall consist of the following, namely:— 
(i) Chief Secretary—Chairperson, ex officio; 
(ii) Principal Secretaries of the Departments dealing with Forests, Environment, 
Finance, Planning, Rural Development, Revenue, Agriculture, Tribal Development, 
Panchayati Raj, Science and Technology—Members, ex officio; 
(iii) Principal Chief Conservator of Forests (Head of Forest Force)—Member, 
ex officio; 
(iv) Chief Wildlife Warden—Member, ex officio; 
(v) Nodal Officer, the Forest (Conservation) Act, 1980—Member, ex officio; 
(vi) Head of the concerned regional office of the Ministry of Environment, Forest 
and Climate Change—Member, ex officio; 
(vii) Nodal Officer, State Forest Development Agency—Member, ex officio; 
(viii) an expert on tribal matters or a representative of tribal communities to be 
appointed by the State Government—Member; 
(ix) Chief Executive Officer, State Authority—Member-Secretary. 
(3) The executive committee of a State Authority shall consist of the following, 
namely:— 
 
 
 
 
 
 
 
 
Steering 
committee and 
executive 
committee of 
State 
Authority. 
(i) Principal Chief Conservator of Forests (Head of Forest Force)—Chairperson, 
ex officio; 
(ii) Chief Wildlife Warden—Member, ex officio; 
(iii) an officer not below the rank of a Chief Conservator of Forests dealing with 
forest and wildlife related schemes—Member, ex officio; 
(iv) an officer not below the rank of a Chief Conservator of Forests dealing with 
forestry research—Member, ex officio; 
(v) Nodal Officer, State Forest Development Agency—Member, ex officio; 
(vi) a representative each of the Departments dealing with Environment, Finance, 
Planning, Rural Development, Revenue, Agriculture, Tribal Development, Panchayati 
Raj, Science and Technology—Members, ex officio; 
(vii) Financial Controller or Financial Adviser, to be nominated by the Finance 
Department—Member, ex officio; 
(viii) two eminent non- government organisations to be appointed by the State 
Government—Members; 
(ix) two representatives of district level Panchayati Raj Institutions to be 
appointed by the State Government—Members; 
(x) an expert on tribal matters or a representative of  tribal community to be 
appointed by the State Government—Member; 
(xi) Chief Executive Officer, State Authority—Member-Secretary. 
(4) The State Authority may appoint the following officers for a period not exceeding 
five years, to assist the steering committee and executive committee in performance of its 
functions under the Act, namely:— 
10 THE GAZETTE OF INDIAEXTRAORDINARY [PART II— 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Term of office 
and conditions 
of service of 
members. 
 
 
Disqualifications. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Powers and 
functions of 
National 
Authority. 
(i) Joint Chief Executive Officer of the rank not below the rank of a Conservator 
of Forests; 
(ii) Financial Advisor and Chief Accounts Officer of the rank not below the rank 
of a Deputy Secretary in the State Government; 
(iii) Deputy Chief Executive Officer of the rank not below the rank of a Deputy 
Conservator of Forests. 
(5) The governing body of the State Authority may with the prior concurrence of the 
State Government create posts in the State Authority at the level of Assistant Conservator 
of Forests and other officials to assist the steering committee and executive committee in 
performance of its functions under the Act. 
12. Save as otherwise provided in this Act, the terms of office and other conditions 
of the service of the members of the National Authority, executive committee, monitoring 
group, Chief Executive Officer and officials appointed by the National Authority, members 
of State Authority, steering committee and executive committee of each State Authority 
shall be such as may be prescribed. 
13. A person shall be disqualified for being appointed as a member of the National 
Authority, executive committee of the National Aut hority, a State Authority, steering 
committee and executive committee of a State Authority, monitoring group, if he— 
(i) has been convicted and sentenced to imprisonment for an offence which, in 
the opinion of the Central Government, involves moral turpitude; or 
(ii) is an undischarged insolvent; or 
(iii) is of unsound mind and stands so declared by the competent court; or 
(iv) has been removed or dismissed from the service of the Government or 
organisation or undertaking owned by the Government; or 
(v) has, in the opinion of the Central Government, such financial or other interest 
in the National Authority or the concerned State Authority as is likely to affect the 
duties discharged by him of his function as a member. 
CHAPTER IV 
POWERS AND FUNCTIONS OF NATIONAL AUTHORITY  AND STATE AUTHORITIES 
14. (1) The governing body of the National Authority shall— 
(i) formulate broad policy framework for functioning of the National Authority 
and State Authorities as may be notified by the Central Government; 
(ii) approve the annual report and audited accounts of the National Authority; 
(iii) review reports on decision taken by executive committee and monitoring 
group of the National Authority including investment decisions; 
(iv) approve the proposal for the schemes specified in sub-clause (iii) of clause 
(b) of section 5; 
(v) approve the proposals for creation of posts in the National Authority, subject 
to prior permission of the Central Government; 
(vi) provide a mechanism to State Authorities to resolve issues of inter-State or 
Centre-State character; 
(vii) formulate such procedures for delegation of financial and administrative 
powers to the National Authority and State Authorities as may be notified by the 
Central Government. 
(2) The governing body of the National Authority shall meet at least once in six 
months. 
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 11 
 
(3) The governing body and executive committee of the National Authority and the 
monitoring group of the National Authority shall meet at such pla ces and shall observe 
such rules and procedures in regard to transaction of business at its meeting, including the 
quorum thereat, as may be prescribed. 
15. (1) The executive committee of the National Authority shall— 
(i) approve within three months from the date of receipt, annual plan of operations 
of State Authorities, with such amendments as it deems fit and proper; 
(ii) formulate proposals for schemes specified in sub-clause (iii) of clause (b) of 
section 5; 
(iii) execute schemes specified in sub-clause (iii) of clause (b) of section 5; 
(iv) deploy staff on contract or on deputation basis to the posts in the National 
Authority; 
(v) formulate proposals for creation of posts in the National Authority at the 
level of Assistant Inspector General of Forests and other officers; 
(vi) invest surplus amounts available in the National Fund; 
(vii) execute other day-to-day work in respect of receipt of amounts in the National 
Fund; 
(viii) maintain books of account and such other records; 
(ix) facilitate scientific, technological and other assistance that may be required 
by State Authorities; 
(x) present its decisions to the governing body of the National Authority for 
information; 
(xi) maintain and update a public information system on the National Authority 
and present all information on its transaction in the public domain; 
(xii) undertake any other work as may be assigned by the governing body of the 
National Authority or the Central Government, from time to time. 
(2) The executive committee of the National Authority shall meet at least once in 
every three months. 
16. (1) The monitoring group shall— 
(i) evolve independent system for concurrent monitoring and evaluation of the 
works implemented in the States and Union territories utilising the funds released by 
the National Authority and State Authorities to ensure effective and proper utilisation 
of funds by utilising the services of the regional offices, of the Central Government in 
the Ministry of Environment, Forest and Climate Change: 
Provided that the Central Government may also undertake third party monitoring 
and evaluation of the works implemented in the States and Union territories utilising 
the funds released by the National Authority and State Authorities through individual 
and institutional experts including remote sensing agencies; 
(ii) inspect and undertake financial audit of works executed by utilising the 
funds released by the National Authority and State Authorities in the State and Union 
territories; 
(iii) devise measures for transparency and accountability. 
(2) The monitoring group shall meet at least once in three months. 
17. (1) The governing body of a State Authority shall— 
(i) lay down the broad policy framework for the functioning of such State Authority 
within the overall framework notified by the Central Government on the recommendations 
of the National Authority; 
 
 
 
 
 
 
Powers and 
functions of 
executive 
committee of 
National 
Authority. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Functions of 
monitoring 
group. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Powers and 
functions of 
State 
Authority. 
12 THE GAZETTE OF INDIAEXTRAORDINARY [PART II— 
 
 
 
 
 
 
 
 
 
Powers and 
functions of 
steering 
committee of 
State 
Authority. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Functions and 
powers of 
executive  
committee of 
State 
Authority. 
(ii) review the working of the State Authority from time to time. 
(2) The governing body of a State Authority shall meet at least once in six months. 
(3) The governing body, steering committee and executive committee of a State 
Authority shall meet at such places and shall observe such rules and procedures in  regards 
to transaction of business at its meeting, including the quorum thereat, as may be prescribed. 
18. (1) The steering committee of a State Authority shall— 
(i) scrutinise and approve with such amendments as it may deems fit and proper 
the annual plan of operations prepared by the executive committee of such State 
Authority and send the same to the executive committee of the National Authority for 
final approval; 
(ii) monitor the progress of the utilisation of funds released from the State Fund; 
(iii) review reports on decision taken by executive committee including investment 
decisions; 
(iv) approve, subject to prior concurrence of the State Government, proposals 
formulated by the executive committee for creation of posts in the State Authority; 
(v) approve annual report of the State Authority and send the same to the State 
Government to lay it, each year, in each House of the State Legislature; 
(vi) ensure inter-departmental coordination. 
(2) The steering committee of a State Authority shall meet at least once in every three 
months. 
19. (1) The executive committee of a State Authority shall— 
(i) formulate and submit annual plan of operations to the steering committee of 
the State Authority for its concurrence; 
(ii) undertake qualitative and quantitative supervision, monitoring and evaluation 
of the works being implemented from amounts available in the State Fund; 
(iii) invest surplus amounts available in the State Fund of such State; 
(iv) maintain books of account and other records; 
(v) submit reports to the steering committee of the State Authority; 
(vi) prepare annual report of the State Authority; 
(vii) deploy staff on contractual basis or on deputation to the posts in the State 
Authority; 
(viii) formulate proposals for creation of posts in the State Authority; 
(ix) be responsible for delegation of financial or administrative powers; 
(x) be responsible for other day-to-day working in respect of the State Authority; 
(xi) maintain and update public information system on the State Authority and 
present all information on its transaction in the public domain; 
(xii) undertake any other work as may be assigned by the governing body or 
steering committee of the State Authority or the State Government, from time to time. 
(2) The executive committee of a State Authority shall meet at least once in every 
three months. 
 
 
 
 
Budget of 
National 
Authority. 
CHAPTER V 
FINANCE, ACCOUNTS, AUDIT AND ANNUAL REPORT 
20. (1) The National Authority shall prepare its budget for the next financial year, 
showing the estimated receipts and expenditure of the National Authority and forward the 
same to the Central Government, in such form and at such time in each financial year as may 
be prescribed. 
SEC. 1] THE GAZETTE OF INDIA EXTRAORDINARY 13 
 
(2) The National Authority, shall adopt financial regulation and procedures, in particular 
the procedure for drawing up and implementing the budget of the National Authority as 
may be prescribed. 
21. The National Authority may invest its funds, including any reserve fund, in the 
securities of the Central Government and in scheduled banks in such manner as may be 
prescribed: 
Provided that the grants received from the Central Government shall not be invested 
and shall be utilised for the purposes and in the manner attached to it. 
22. (1) The National Authority shall maintain proper accounts and other relevant 
records and prepare an annual statement of accounts in such form as may be prescribed in 
consultation with the Comptroller and Auditor-General of India. 
(2) The accounts of the National Authority shall be audited by the Comptroller and 
Auditor-General of India at such intervals as may be specified by him and any expenditure 
incurred in connection with such au dit shall be payable by the National Authority to the 
Comptroller and Auditor-General. 
(3) The Comptroller and Auditor-General and any other person appointed by him in 
connection with the audit of the accounts of the National Authority shall have the same 
right and privileges and authority in connection with such audit as the Comptroller and 
Auditor-General generally has in connection with the audit of the Government accounts 
and, in particular, shall have the right to demand the production of books, accounts, connected 
vouchers and other documents and papers and to inspect the office of the National Authority. 
(4) The accounts of the National Authority as certified by the Comptroller and Auditor- 
General or any other person appointed by him in this behalf together with the audit report 
thereon, shall be forwarded annually to the Central Government by the National Authority. 
(5) The Comptroller and Auditor-General shall, within a period of six months from the 
date of commencement of the Act, audit the accounts of the all monies collected by the 
State Governments and Union territory Administrations, which has been placed under the 
ad hoc Authority and deposited in the nationalised banks and submit the rep ort to the 
Central Government under this section. 
(6) The Central Government shall have the power to conduct the special audit or 
performance audit of the National Fund and of the National Authority through the Comptroller 
and Auditor- General. 
23. (1) The National Authority shall prepare, its annual report, giving a full account 
of its activities during the previous financial year and forward a copy thereof to the Central 
Government, in such form and at such time, for each financial year, as may be prescribed. 
(2) The annual report shall, inter alia, provide for— 
(i) the summary of monitoring and evaluation of activities undertaken from 
amounts released from the National Fund and State Funds during the year; 
(ii) the summary of specific schemes specified in sub-clause (iii) of clause (b) of 
section 5 executed during the year; 
(iii) the amount of money received and expended. 
24. The Central Government shall cause the annual report and audit report together 
with a memorandum of action taken on the recommendations contained therein to be laid as 
soon as may be after the reports are received before each House of Parliament. 
 
 
 
 
 
Investment 
of funds by 
National 
Authority. 
 
 
 
Accounts and 
audit of 
National 
Authority. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual report 
of National 
Authority. 
 
 
 
 
 
 
 
 
 
 
Annual report 
and audit 
report of 
National  
Authority to 
be laid before 
Parliament. 
14 THE GAZETTE OF INDIAEXTRAORDINARY [PART II— 
 
 
Budget of 
State 
Authority. 
 
 
 
 
 
 
 
Investment 
of funds by 
State 
Authority.  
 
 
 
Accounts and 
audit of State 
Authority.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual report 
of State 
Authority. 
25. (1) Each State Authority shall prepare its budget for the next financial year, 
showing the estimated receipts and expenditure of the State Authority and forward the 
same to the State Government, in such form and at such time, in each financial year, as may 
be prescribed. 
(2) Each State Authority shall adopt financial regulation and procedures, in particular 
the procedure for drawing up and implementing the budget of the State Authority as may be 
prescribed. 
26. 

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