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The Punjab Dairy Development Board Act, 2000

Punjab · state statute
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GOVERNMENT OF PUNJAB 
 
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS  
 
THE PUNJAB DAIRY DEVELOPMENT BOARD ACT, 2000 
 
(PUNJAB ACT 20 OF 2000) 
(As amended upto the 30th June, 2025) 
 
 
 
 
 
 
 
 
2025 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
THE PUNJAB DAIRY DEVELOPMENT BOARD ACT, 2000 
 
Sections                               CONTENTS 
1. Short title and commencement 
2. Definitions 
3. Establishment of the Board 
4. Headquarters 
5. Establishment of Executive Committee and its constitution  
6. Term of office  
7. Resignation  
8. Removal of a member 
9. Objectives of the Board 
10. Powers and functions of the Board 
11. Officers and employees of the Board 
12. Levy and collection of cess 
13. Constitution of the Fund 
14. Delegation  
15. Powers of State Government to issue directions to the Board  
16. Protection of action taken in good faith 
17. Power to make rules 
18. Power to make regulations 
19. Power to remove difficulties 
20. Repeal and saving 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
THE PUNJAB DAIRY DEVELOPMENT BOARD ACT, 2000 
(Punjab Act No. 20 of 2000) 
    [Received the assent of the Governor of Punjab on the 20th September, 
2000, and was first published for general information in the Punjab 
Government Gazette (Extraordinary), Legislative Supplement, dated the 2 0th 
October, 2000.]  
1 2 3 4 
Year No. Short title Whether repealed or otherwise 
affected by the legislation  
2000 20 The Punjab Dairy 
Development Board 
Act, 2000 
 
 Amended by Punjab Act No. 1 3 
of 2004 
 
1[An Act t o provide for the creation of Punjab Dairy Development Board for 
providing milk producers with  the opportunities of getting a fair return for 
their labour and investment and to improve the profitability of the Dairy 
Industry of the State and to frame policies and issue instructions for 
safeguarding the interests of the milk producers, milk processors , dairy 
marketers and consumers.] 
  BE it enacted by the Legislature of the State of Punjab in the Fifty - 
one year of the Republic of India as follows- 
1. (1) This Act may be called the Punjab Dairy Development Board 
Act, 2000. 
 
(2)  It shall come into force at once. 
 2. In this Act, unless the context otherwise requires:- 
(a) ‘Board’ means the Punjab Dairy Development Board 
established under section3; 
2[(aa)  “dairy marketer” means any person, group of persons, firm 
or a company engaged in the purchase or sale of milk or 
other dairy products including the import or export of 
processed milk and milk products:] 
  
                                                             
1 Substituted by Punjab Act No. 13 of 2004, Section 2 
2 Inserted by Punjab Act No. 13 of 2004, Section 3 
Definitions. 
Short title and 
commencement
. 
 
(b) ‘Fund’means the Dairy Development Fund constituted under 
section 13; 
(c) ‘State Government’ means the Government of  the State of 
Punjab in the Department of Dairy Development; 
(d) ‘milk plant’ means a milk handling, processing or 
manufacturing unit registered under the Milk and Milk 
Products Order, 1992 of the Government of India; and 
  (e) ‘prescribed’ means prescribed by rules made under this Act.  
3. (1) That State Government may, by notification in the Official 
Gazette, establish for the purpose of carrying out the provisions of this 
Act, a Board to be called the Punjab Dairy Development Board.  
1[(2) The Board established under sub -section (I), shall consist of 
the following, namely: - 
(i) Chief Minister, Punjab; : Chairman 
(ii) Minister-in-charge of Animal Husbandry & 
Fisheries & Dairy Development; 
: Deputy Chairman 
(iii) Secretary to Government of Punjab, Department of 
Finance; 
: Ex-officio Director 
(iv) Secretary to Government of Punjab, Department of 
Dairy Development; 
: Ex-officio Member-
Secretary 
(v) Vice-Chancellor, Punjab Agricultural University, 
Ludhiana; 
: Ex-officio Director 
(vi) One representative of private milk plants and one 
representative of Co-operative milk plants located in 
the State of Punjab, to be nominated by the State 
Government; 
: Director 
(vii) Two representatives from the milk producers, to be 
nominated by the State Government; 
: Director 
(viii) One representative from the Punjab Dhojhi Union to 
be nominated by the State Government; and 
: Director 
(ix) One representative of Consumers Associations, to 
be nominated by the State Government. 
: Director] 
 
   
                                                             
1Substituted by Punjab Act No. 13 of 2004, Section 4 
Establishment  
of the Board. 
 
 
(3) The Board constituted in terms of sub -section (2), shall be a body 
corporate having perpetual succession and a common seal with powers, subject 
to the provisions of this  Act, to acquire and dispose of properties both movable 
and immovable and shall, by the said name, sue and be sued.  
 (4) The State Government shall exercise superintendence and control 
over the Board and its employees and may call for such information as i t may 
deem fit. 
 (5) Subject to the rules made under this Act, the Board may frame 
regulations for transacting business at its meetings and for such other matters as 
may be prescribed. 
 (6) Subject to the rules made under this Act, an estimate of annual 
income and expenditure of the Board for the ensuing year shall be prepared and 
passed by the Board. 
 (7) The Board shall within a period of six mo nths after expiry of each 
financial year, submit to the State Government, a report in the prescribed 
manner giving true and full account of the previous financial year.  
4. The Board shall have its headquarters at Chandigarh or at 
suchother place, as may be notified by the State Governmen t in the 
Official Gazette. 
 5. (1) The State Government may, by  notification in the Official 
Gazette establish for monitoring and ensuring speedy implementation of the 
decision of the Board, a Committee to be called the 1[Executive Committee.] 
  (2) The 4[Executive Committee] established under sub -section 
(1) shall consist of the following, namely: - 
(i) Secretary to Government of Punjab, 
Department of Animal Husbandry & 
Fisheries & Dairy Development; 
: Chairman 
(ii) Vice-Chancellor, Punjab Agricultural 
University, Ludhiana; 
: Member 
(iii) Director, Animal Husbandry, Punjab; : Member 
(iv) Director, Dairy Development, Punjab; : Member 
(v) Managing Director, Milkfed, Punjab; and : Member 
(vi) Two non-Ex-officio Members of the 
Board to be nominated by the Board. 
: Members 
  (3) The 1[Executive Committee] shall meet as often as required 
and shall devise its own procedure to conduct its business.  
                                                             
1 Substituted for words “Steering Committee” by Punjab Act No. 13 of 2004, Section 5 
Headquarters 
Establishment 
of Executive 
Committee 
and its 
constitution. 
 
6. (1) The term of office of members other than the Ex -officio 
Members, shall be 2[one year.] 
  (2) Notwithstanding anything contained in sub -section (1), a 
member whose term of 6[one year ]has expired shall, unless the State 
Government otherwise directs, continue to hold office till his successor is 
nominated. 
 7. Any member, other than the Ex -officio Member, may resign his 
office at any time  by tendering his resignation in writing to the State 
Government, and such member shall be deemed to have vacated his office on 
the acceptance of the resignation by the State Government. 
 8. The State Government may, in the case of a member, other than an 
Ex-officio member, by an order in writing, by recording reasons thereof, 
remove any member from his office on the grounds that he. — 
 (i) has abused his position; 
(ii) has been convicted by a court of law for an offence involving 
moral turpitude or has otherwise become insane or of unsound 
mind; 
(iii) is guilty of misconduct which in the opinion of the State 
Government renders him ineligible for becoming a member; or 
(iv) has continuously absented himself from three consecutive meetings 
of the Board without the permission of the Board: 
  Provided that before issuing an order of removal, the State 
Government shall give such a member, a reasonable opportunity  of being heard. 
3[9. The Board shall be an  apex body for planning, organis ing and 
implementing the programmes of dairy development so as to promote dairy 
sector on modern, scientific and commercially viable lines to enhance the 
quality of milk and dairy products, make dairying a viable alternative vocation  
in the process of diversification of agriculture and source for the transformation 
of farmers’ economy by providing milk producers with the opportunities of 
getting a fair return for their labour and investment and to improve the 
profitability of dairy industry.] 
 
 
 
                                                                                                                                                                                              
1Substituted for words “Steering Committee” by Punjab Act No. 13 of 2004, Section 5 
2Substituted for words “three years” by Punjab Act No. 13 of 2004, Section 6 
3Substituted by Punjab Act No. 13 of 2004, Section 7 
Resignation. 
Removal 
of a 
member. 
Objectives 
of the 
Board. 
Term of 
office. 
 
 1[10. Subject to the provisions of this Act and the rules made there under, 
the Board shall exercise the following powers and perform the following 
functions, namely: -- 
(i) to function as an apex body for laying down policies , 
implementing programmes, making recommendations to the 
State Government and i ssuing directions to any organis ation or 
agency of the State engaged in the dairy sector to achieve the 
objectives of the Board; 
(ii) to undertake, finance or par ticipate in any project aimed at in 
making research in dairy and to develop dairy sector including 
introduction of and nurturing the latest technology in the field 
of dairy development; 
(iii) to undertake, finance or participate in any project aimed at in 
making improvement in quality of milk and milk products with 
an objective to make them qualitatively globally competitive;  
(iv) to plan and formulate policies for quick genetic up gradation and 
development of milch animals by arranging technology from 
abroad with the prior approval of the Government of India 
wherever necessary; 
(v) to make investigations into any matter relating to the 
production, processing or marketing of any dairy product 
including the cost of producing, processing or marketing that 
product and determine the purchase and sale price of milk and 
milk products; 
(vi) to enter into agreement with any State organization, National 
Dairy Development Board or any such  International 
organization for the marketing of milk and other dairy products 
within or outsi de the country to provide for the coordinated 
marketing thereof and act as a nodal agency to facilitate export 
of milk and dairy products from the State of Punjab; 
(vii) to undertake and assist in the promotion of the use of milk and 
milk products, the improveme nt of their quality and variety and 
publication of information for wider publicity in relation to 
those products; 
(viii) to developmodern dairy farming technologies and systems for 
meeting the local demand of high-quality milk and promotion of 
the dairy industry for socio -economic upliftment of milk 
producers; 
(ix) to arrange and import new varieties of fodder seeds to enhance 
the availability of fodder crops and also equipment or 
machinery for their harvesting and conservation; 
(x) to plan and execute programmes within or  outside the country 
of high-level education, research and training in dairy 
                                                             
1Substituted by Punjab Act No. 13 of 2004, Section 8 
Powers 
and 
functions 
of the 
Board. 
 
 
technology and animal husbandry including interactive training 
and exchange programmes; 
 
(xi) to formulate and implement Policies or programmes aimed at 
specifying the areas for the collection of milk for each milk 
plant; 
(xii) to promote registration of milch animals and Breed 
Associations; 
(xiii) to assist the farmers to establish dairy units within or outside the 
country depending upon the viable opportunities; 
(xiv) to promote village level ohilling -cum-marketing and 
development centers to maintain quality of milk; 
(xv) to secure funds from the Central Government, State 
Government or other agencies; 
(xvi) to secure donations; and 
(xvii) to exercise the necessary authority in respect of all matters, 
which are incidental and ancillary to the aforesaid for achieving 
the objectives of the Board.] 
 
 1[11. (1) The Chairman of the Executive Committee,establishedunder 
sub-section (2) of section 5, shall be the Chief Executive of  the Board and he 
shall hold office so long as he continues to be the Ex -officio Member-Secretary 
of the Board. 
  (2) For carrying out its functions, the Board shall appoint 
persons, who are professionally qualified, either by taking them on deputation 
from the State Government, Public Sector Undertaking s or Organisations or 
engage them on contract basis.] 
 2[12. ****] 
 3[13. (1) There shall be constituted a Fund to be called the 
‘PunjabDairy Development Fund’, which shall vest in the Board. The 
Fund shall have the following contributions, namely: - 
(i) a sum of money provided by the State Legislature by law out 
of the Consolidated Fund of the State constituting such 
proportion of the purchase tax on milk, as the State 
Legislature may think appropriate for being utilized for the 
purposes of this Act; 
(ii) all sums of money that may be provided by the Central 
Government, State Government or Local Authorities; 
(iii) all sums of money received by way of grants, donations, 
benefactions, bequests and transfers; and 
                                                             
1Substituted by Punjab Act No. 13 of 2004, Section 9 
2Omitted by Punjab Act No. 13 of 2004, Section 10 
3Substituted by Punjab Act No. 13 of 2004, Section 11 
Officers and 
employees 
of the 
Board. 
Constitution 
of the Fund. 
 
(iv) all such sums of money as may be received by the Board in 
any other manner and from any other source. 
 (2) The Fund shall be applied for achieving the objectives of the Board 
and meeting the expenditure to be incurred in relation thereto. 
 (3) The accounts of the Board shall be audited by an Auditor, duly 
qualified to act and to be appointed as an Auditor of Companies under the 
Companies Act, 1956 (Central Act 1 of 1956). The appointment of an Auditor 
and remuneration payable to him, shall be decided by the Board or the authority 
authorized by the Board in this behalf, on yearly basis. The Auditor so 
appointed, shall have at reasonable times an access to books, accounts and other 
documents of the Board.] 
 14. If the Board is of the opinion that it is expedient to do so, it may 
delegate its powers and functions assigned to it under this Act to any of its 
functionaries. 
 
 15. The State Government may, from time to time, issue to the 
Board such directions , as in its opinion, are necessary or expedient for 
carrying out the purposes of th is Act and the rules made there under and the 
Board shall make compliance. 
 
16. No suit, prosecution or other legal proceeding s shall lie against the State 
Government or any officer or employee of the State Government or the Board 
in respect of anything, which is in good faith done or intended to be done in 
pursuance of the provisions of this Act, rules or regulations made  or any 
directions issued thereunder. 
 17. (1) The State Government may, by notification in the Official 
Gazette, make rules, carrying out the purposes of this Act.  
  (2) Without prejudice to the generality of the foregoing power, 
such rules may provide for. — 
  (a) the submission of report under sub-section (7) of section 3; 
  1[(b) ***] 
  (c) any other matter which is to be or may be prescribed. 
  (3) Every rule made under this section, shall be laid as soon as 
may be after it is made, before the House of the State Legislature while it is in 
session for a total period of ten days, which may be comprised in one session or 
in two or more successive sessio ns and if, before the expiry of the session in 
which it is so laid or the successive session aforesaid, the House agrees in 
                                                             
1Omitted by Punjab Act No. 13 of 2004, Section 12 
Delegation. 
Powers of 
State 
Government 
to issue 
directions to 
the Board. 
Protection 
of action 
taken in 
good faith. 
Power to   
make 
rules. 
 
making any modification in the rule or the House agrees that the rule should not 
be made, the rule shall thereafter have effect only  in such modified form or be 
of no effect, as the case may be, so however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done 
or omitted to be done under that rule. 
 18. (1) The Board may, from time to time, with the previous 
approval of the State Government, make regulations not inconsistent with the 
provisions of this  Act and the rules framed there under, for the purposes of 
giving effect to the provisions of this Act. 
  (2) In particular and wi thout prejudice to the generality  of the 
foregoing power, such regulations may provide for. — 
   (a) transacting the meetings of the Board; and 
(b) determining the conditions of service of the officers 
and other employees of the Board and their functions 
and duties under section 11. 
 19. (1) If any difficulty arises in giving effect to the provisions of 
this Act or by reasons of anything contained in this Act or in any other 
enactment for the time being in force, the State Government may, as occasion 
arises, by order, direct that this Act shall during such period as may be specified 
in the order, but n ot extending beyon d the expiry of two years from the date of 
commencement of this, Act, have effect subject to such adoption whether by 
way of modification, addition or omission, as it may deem to be necessary and 
expedient. 
  (2) Every order made under sub -section ( 1), sha ll, as soon as 
may be, after it is made, be laid before the State Legislature.  
 20. (1) The Punjab Dairy Development Board Ordinance,2000 (Punjab 
Ordinance no.8 of 2000) is hereby repealed. 
  (2)Notwithstanding such repeal, anything done or any action taken 
to in sub-section (1), shall be deemed to have been done or taken under this Act.  
Power to 
remove 
difficulties. 
Repeal 
and 
saving. 
Power to      
make       
regulation
s. 

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