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The Biological Diversity Act 2002

Tamil Nadu · state statute
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MINISTRY OF LAW AND JUSTICE 
(Legislative Department) 
  
New Delhi, the 5th February, 2003/Magha 16, 1924 (Saka) 
  
The following Act of Parliament received the assent of the President on the 5th February, 2003, and is hereby published 
for general information: 
  
THE BIOLOGICAL DIVERSITY ACT, 2002 
  
No. 18 OF 2003 
  
[5th February, 2003] 
  
An Act to provide for conservation of biological diversity, sustainable use of its components and fair and equitable sharing 
of the benefits arising out of the use of  biological resources, knowledge and for matters connected therewith or incidental 
thereto. 
  
WHEREAS India is rich in biological diversity and associat ed traditional and contemporary knowledge system relating 
thereto. 
  
AND WHEREAS India is a party to the Unit ed Nations Convention on Biological Diversity signed at Rio de Janeiro on the 
5th day of June, 1992; 
  
AND WHEREAS the said Convention came into force on the 29th December, 1993; 
  
AND WHEREAS the said Convention reaffirms the sovereign rights of the States over their biological resources; 
  
AND WHEREAS the said Convention has the main objective of c onservation of biological diversity, sustainable use of its 
components and fair and equitable sharing of the benefits arising out of utilization of genetic resources; 
  
AND WHEREAS it is considered necessary to provide for conservation, sustainable utilization and equitable sharing of the 
benefits arising out of utilization of genetic resources and also to give effect to the said Convention. 
  
BE it enacted by Parliament in the Fifty-third Year of the Republic of India as follows:– 
  
CHAPTER - I 
  
Preliminary 
  
1.  Short title, extent and commencement 
  
(1)  This Act may be called the Biological Diversity Act, 2002. 
(2)  It extends to the whole of India. 
(3)  It shall come into force on such date as the Central Government may, by notifica tion in the Official Gazette, 
appoint: 
  
Provided that different dates may be appointed for different provisions of this Act and any reference in any such provision 
to the commencement of this Act shall be construed as a reference to the coming into force of that provision. 
  
2.  Definitions 
  
In this Act, unless the context otherwise requires,– 
  
(a)  "benefit claimers" means the conservers of biologic al resources, their byprodu cts, creators and holders of 
knowledge and information relating to the use of such biol ogical resources, innovations and practices associated 
with such use and application; 
  
(b)  "biological diversity" means the variability among living organisms from all sources and the ecological complexes 
of which they are part, and includes diversity within species or between species and of eco-systems; 
  
(c)  "biological resources" means plants, animals and micr o-organisms or parts thereof, their genetic material and 
by-products (excluding value added products) with actual or potential use or value, but does not include human 
genetic material; 
  
(d)  "bio-survey and bio-utilization" means survey or collection of species, subspecies, genes, components and 
extracts of biological resource for any purpose and includes characterization, inventorisation and bioassay; 
  
(e)  "Chairperson" means the Chairperson of the National Bi odiversity Authority or, as the case may be, of the State 
Biodiversity Board; 
  
(f)  "commercial utilization" means end uses of biologica l resources for commercial utilization such as drugs, 
industrial enzymes, food flavours, fragrance, cosmetics, emulsifiers, oleoresins, colours, extracts and genes used 
for improving crops and livestock through genetic inte rvention, but does not include conventional breeding or 
traditional practices in use in any agriculture, horticul ture, poultry, dairy farming, animal husbandry or bee 
keeping; 
  
(g)  "fair and equitable benefit sharing" means sharing of benefits as determined by the National Biodiversity Authority 
under section 2 1; 
  
(h)  "local bodies" means Panchayats and Municipalities, by whatever name called, within the meaning of clause (1) 
of article 243B and clause (1) of article 243Q of t he Constitution and in the absence of any Panchayats or 
Municipalities, institutions of self-g overnment constituted under any other provision of the Constitution or any 
Central Act or State Act; 
  
(i)  "member" means a member of the National Biodiversit y Authority or a State Biodiversity Board and includes the 
Chairperson; 
  
(j)  "National Biodiversity Authority" means the National Biodiversity Authority established under section 8; 
  
(k) "prescribed" means prescribed by rules made 1 under this Act; 
  
(l)  "regulations" means regulations made under this Act; 
  
(m)  "research" means study or systematic investigation of any biological resource or technological application, that 
uses biological systems, living organisms or derivatives thereof to make or  modify products or processes for any 
use; 
  
(n)  "State Biodiversity Board" means the State Biodiversity Board established under section 22; 
  
(o)  "sustainable use" means the use of components of biologi cal diversity in such manner and at such rate that does 
not lead to the long-term decline of the biological diversit y thereby maintaining its potential to meet the needs and 
aspirations of present and future generations; 
  
(p)  "value added products" means products which may contain portions or extracts of plants and animals in 
unrecognizable and physically inseparable form. 
  
CHAPTER - II 
  
Regulation of Access to Biological Diversity 
  
Certain persons not to undertake Biodiversity related ac tivities without approval of National Biodiversity 
Authority 
  
3. (1)  No person referred to in sub-secti on (2) shall, without previous approval of the National Biodiversity Authority, 
obtain any biological resource occurring in India or knowledge associated thereto for research or for commercial 
utilization or for bio-survey and bio-utilization. 
  
(2)  The persons who shall be required to take the approv al of the National Biodiversity Authority under sub-section 
(1) are the following, namely: 
  
(a)  a person who is not a citizen of India; 
(b)  a citizen of India, who is a non-re sident as defined in clause (30) of  section 2 of the Income-tax Act, 196 
1; 
(c)  a body corporate, association or organization- 
(i)  not incorporated or registered in India; or 
(ii)  incorporated or registered in India under any law for the time being in force which has any 
non-Indian participation in its share capital or management. 
  
Results of research not to be transferred to certain persons without approval of National Biodiversity Authority 
  
4.  No person shall, without the previo us approval of the National Biodiversity Authority, transfer the results of any 
research relating to any biological resources occurring in , or obtained from, India for monetary consideration or 
otherwise to any person who is not a citizen of India or citizen of Indi a who is non-resident as defined in clause 
(30) of section 2 of the Income-tax  Act, 1961 or a body corporate or org anization which Is not registered or 
incorporated in India or which has any non-Indian participation in its share capital or management. 
  
Explanation.- For the purposes of this section, "t ransfer" does not include publication of research papers or dissemination 
of knowledge in any seminar or workshop, if such publication is as per the guidelines issued by the Central Government. 
  
Sections 3 and 4 not to apply to certain collaborative research projects 
  
5.(1) The provisions of sections 3 and 4 shall not apply to collaborative research projects involving transfer or exchange of 
biological resources or information relating thereto between institutions, including Government sponsored 
institutions of India, and such institut ions in other countries, if such collabo rative research projects satisfy the 
conditions specified in sub-section (3). 
  
(2)  All collaborative research projects, other than those re ferred to in sub-section (1) which are based on agreements 
concluded before the commencement of this Act and in force shall, to the extent the provisions of agreement are 
inconsistent with the provisions of this Act or any guidelines issued under clause (a) of sub-section (3), be void. 
  
(3)  For the purposes of sub-section (1),  collaborative research projects shall- 
  
(a)  conform to the policy guidelines issued by the Central Government in this behalf; 
(b)  be approved by the Central Government. 
  
Application for intellectual property rights not to be made without approval of National Biodiversity Authority 
  
6.(1)  No person shall apply for any intellectual property right, by whatever name called, in or outside India for any 
invention based on any research or information on a biological resource obtained from India without obtaining the 
previous approval of the National Biodiversity Authority before making such application. 
  
Provided that if a person applies for a patent, permissio n of the National Biodiversity Authority may be obtained 
after the acceptance of the patent but before the seating of tile patent by the patent authority concerned: 
  
Provided further that the National Biodiversity Authorit y shall dispose of the application for permission made to it 
within a period of ninety days from the date of receipt thereof. 
  
(2)  The National Biodiversity Authority may, while granting the approval under this section, impose benefit sharing fee 
or royalty or both or impose conditions including the sh aring of financial benefits arising out of the commercial 
utilization of such rights. 
  
(3)  The provisions of this section shall not apply to any person making an application for any right under any law 
relating to protection of plant varieties enacted by Parliament. 
  
(4)  Where any right is granted under law referred to in sub-section (3), the concerned authority granting such right 
shall endorse a copy of such document granting the right to the National Biodiversity Authority. 
  
Prior intimation to State Biodiversity Board for obtaining biological resource for certain purposes 
  
7.   No person, who is a citizen of Indi a or a body corporate, association or or ganization which is registered in India, 
shall obtain any biological resource for commercial utilization, or bio-survey and bi o-utilization for commercial 
utilization except after giving prior intimation to the State Biodiversity Board concerned: 
  
Provided that the provisions of this section shall no t apply to the local people and communities of the area, 
including growers and cultivators of biodiversity, and vaids and hakims, who have been practicing indigenous 
medicine. 
  
CHAPTER - III 
  
National Biodiversity Authority 
  
Establishment of National Biodiversity Authority 
  
8.(1)  With effect from such date as the Central Government  may, by notification in the Official Gazette, appoint, there 
shall be established by the Central Government for the purposes of this Act, a body to be called the National 
Biodiversity Authority. 
  
(2)  The National Biodiversity Authority shall be a body corporate by the name aforesaid, having perpetual succession 
and a common seal, with power to acquire, hold and disp ose of property, both movable and immovable, and to 
contract, and shall by the said name sue and be sued. 
  
(3)  The head office of the National Biodiversity Authority shall be at Chennai and the National Biodiversity Authority 
may, with the previous approval of the Central Government, establish offices at other places in India. 
  
(4)  The National Biodiversity Authority shall consist of the following members, 
  
(a)  a Chairperson, who shall be an eminent perso n having adequate knowledge and experience in the 
conservation and sustainable use of biological diversity and in matters relating to equitable sharing of 
benefits, to be appointed by the Central Government; 
  
(b)  three ex officio members to be appointed by the Central Government, one representing the Ministry 
dealing with Tribal Affairs and two representing the Mi nistry dealing with Environment and Forests of 
whom one shall be the Additional Director General of Forests or the Director General of Forests; 
  
(c)  seven ex officio members to be appointed by the Central Government to represent respectively the 
Ministries of the Central Government dealing with – 
  
(i) Agricultural Research and Education; 
(ii) Biotechnology; 
(iii) Ocean Development; 
(iv) Agriculture and Cooperation; 
(v) Indian Systems of Medicine and Homoeopathy; 
(vi) Science and Technology; 
(vii) Scientific and Industrial Research; 
  
(d)  five non-official members to be appointed from amongst specialists and scientists having special 
knowledge of, or experience in, matters relating to co nservation of biological diversity, sustainable use of 
biological resources and equitable sh aring of benefits arising out of the use of biological resources, 
representatives of industry, conservers, creators and know ledge-holders of biological resources. 
  
  
Conditions of service of Chairperson and members 
  
9.  The term of office and conditions of service of the Chairperson and the other members other than ex officio 
members of the National Biodiversity Authority shall be such as may be prescribed by the Central Government. 
  
Chairperson to be Chief Executive of National Biodiversity Authority 
  
10.  The Chairperson shall be the Chief Executive of the National Biodiversity Authority and shall exercise such 
powers and perform such duties, as may be prescribed. 
  
Removal of members 
  
11.  The Central Government may remove from the National Bi odiversity Authority any member who, in its opinion, 
has- 
  
(a)  been adjudged as an insolvent; or 
(b)  been convicted of an offence which involves moral turpitude; or 
(c)  become physically or mentally in capable of acting as a member; or 
(d)  so abused his position as to render his continua nce in office detrimental to the public interest; or 
(e)  acquired such financial or other interest as is li kely to affect prejudicially his functions as a member. 
  
Meetings of National Biodiversity Authority 
  
12. (1) The National Biodiversity Authority shall meet at such  time and place and shall observe such rules of procedure in 
regard to the transaction of business at its meetings (including the quorum at its meetings) as may be prescribed. 
  
(2)  The Chairperson of the National Biodiversity Authority s hall preside at the meetings of the National Biodiversity 
Authority. 
  
(3)  If for any reason the Chairperson is unable to attend any  meeting of the National Biodiversity Authority, any 
member of the National Biodiversity Authority chosen by the members present at the meeting shall preside at the 
meeting. 
  
(4)  All questions which come before any meeting of the Nation al Biodiversity Authority shall be decided by a majority 
of votes of the members present and voting and in the event of equality of votes, the Chairperson or, in his 
absence, the person presiding, shall have and exercise a second or casting vote. 
  
(5)  Every member who is in any way, whether directly, indirectly or personally, concerned or interested in a matter to 
be decided at the meeting shall disclose the nature of hi s concern or interest and after such disclosure, the 
member concerned or interested shall not attend that meeting. 
  
(6)  No act or proceeding of the National Biodiversit y Authority shall be invalidated merely by reason of- 
  
(a)  any vacancy in, or any defect in the constitu tion of, the National Biodiversity Authority; or 
  
(b)  any defect in the appointment of a person acting as a member; or 
  
(c)  any irregularity in the procedure of the National Biodi versity Authority not affecting the merits of the case. 
  
Committees of National Biodiversity Authority 
  
13. (1) The National Biodiversity Authority may constitute a committee to deal with agro-biodiversity. 
  
Explanation- For the purposes of this sub-sectio n, "agro-biodiversity" means biologica l diversity, of agriculture related 
species and their wild relatives. 
  
(2)  Without prejudice to the provisions of sub-section (1 ), the National Biodiversity Authority may constitute such 
number of committees as it deems fit for the efficient di scharge of its duties and performance of its functions 
under this Act. 
  
(3)  A committee constituted under this section shall co-opt  such number of persons, who are not the members of the 
National Biodiversity Authority, as it may think fit and the persons so co-opted shall have the right to attend the 
meetings of the committee and take part in its proceedings but shall not have the right to vote. 
  
(4)  The persons appointed as members of the committee under sub-section (2) shall be entitled to receive such 
allowances or fees for attending the meetings of the committee as may be fixed by the Central Government. 
  
Officers and employees of National Biodiversity Authority 
  
14.(1) The National Biodiversity Authority may appoint such offi cers and other employees as it considers necessary for 
the efficient discharge of its functions under this Act. 
  
(2)  The terms and conditions of service of such officers  and other employees of the National Biodiversity Authority 
shall be such as may be specified by regulations. 
  
Authentication of orders and decisions of National Biodiversity Authority 
  
15.  All orders and decisions of the National Biodiversit y Authority shall be authenticat ed by the signature of the 
Chairperson or any other member authorized by the Nati onal Biodiversity Authority in this behalf and all other 
instruments executed by the National Biodiversity Authority shall be authenticated by the signature of an officer of 
the National Biodiversity Authority authorized by it in this behalf. 
  
Delegation of powers 
  
16.  The National Biodiversity Authority may, by general or sp ecial order in writing, delegate to any member, officer of 
the National Biodiversity Authority or any other person su bject to such conditions, if any, as may be specified in 
the order, such of the powers and functions under this Act (except the power to prefer an appeal under section 50 
and the power to make regulations under section 64) as it may deem necessary. 
  
Expenses of National Biodiversity Authority to be defrayed out of the Consolidated Fund of India 
  
17.  The salaries and allowances payable to the members and the administrative expenses of the National Biodiversity 
Authority including salaries, allowances and pension payable to, or in respect of, the officers and other employees 
of the National Biodiversity Authority shall be defrayed out of the Consolidated Fund of India. 
  
CHAPTER - IV 
  
Functions and Powers of the National Biodiversity Authority 
  
Functions and powers of National Biodiversity Authority 
  
18.(1) It shall be the duty of the National Biodiversity Authority to regulate activities referred to in sections 3, 4 and 6 an d 
by regulations issue guidelines for access to biological resources and for fair and equitable benefit sharing. 
  
 (2)  The National Biodiversity Authority may grant approval for undertaking any activity referred to in sections 3, 4 and 
6. 
  
(3)  The National Biodiversity Authority may- 
  
(a)  advise the Central Government on matters relating to the conservation of biodiversity, sustainable use of 
its components and equitable sharing of benefits arising out of the utilization of biological resources; 
(b)  advise the State Governments in the selection of areas of biodiversity importance to be notified under 
sub-section (1) of section 37 as heritage sites and measures for the management of such heritage sites; 
(c)  perform such other functions as may be neces sary to carry out the provisions of this Act. 
  
(4)  The National Biodiversity Authority may, on behalf of the Central Government, take any measures necessary to 
oppose the grant of intellectual property rights in any c ountry outside India on any biological resource obtained 
from India or knowledge associated with such biological resource which is derived from India. 
  
  
CHAPTIER - V 
  
Approval by the National Biodiversity Authority 
  
Approval by National Biodiversity Authority for undertaking certain activities 
  
19.(1) Any person referred. to in sub-section (2) of section 3 who intends to obtain any biological resource 
occurring in India or knowledge associated thereto for rese arch or for commercial utilization or for bio-survey and 
bio-utilization or transfer the results of any research relating to biological resources occurring in, or obtained from, 
India, shall make application in such form and payment of such fees as may be prescribed, to the National 
Biodiversity Authority.  
  
(2)  Any person who intends to apply for a patent or any other  form of intellectual property protection whether in India 
or outside India referred to in sub-sect ion (1) of section 6, may make an application in such form and in such 
manner as may be prescribed to the National Biodiversity Authority. 
  
(3)  On receipt of an application under sub-section (1) or sub- section (2), the National Biodiversity Authority may, after 
making such enquiries as it may deem fit and if necessary after consulting an expert committee constituted for 
this purpose, by order, grant approval subject to any regulations made in this behalf and subject to such terms 
and conditions as it may deem fit, including the imposition of charges by way of royalty or for reasons to be 
recorded in writing, reject the application: 
  
Provided that no such order for rejection shall be made without giving an opportunity of being heard to the person 
affected. 
  
(4)  The National Biodiversity Authority shall give public no tice of every approval granted by it under this section. 
  
Transfer of biological resource or knowledge 
  
20.(1) No person who has been granted approval under section 19 shall transfer any biological resource or knowledge 
associated thereto which is the subject matter of the sa id approval except with the permission of the National 
Biodiversity Authority. 
  
(2)  Any person who intends to transfer any biological resource or knowledge associated thereto referred to in 
sub-section (1) shall make an application in such form and in such manner as may be prescribed to the National 
Biodiversity Authority. 
  
(3)  On receipt of an application under sub-section (2), the National Biodiversity Authority may, after making such 
enquiries as it may deem fit and if necessary after consulting an expert committee constituted for this purpose, by 
order, grant approval subject to such terms and conditions  as it may deem fit, including the imposition of charges 
by way of royalty or for reasons to be recorded in writing, reject the application: 
  
Provided that no such order for rejection shall be made without giving an opportunity of being heard to the person 
affected. 
  
(4)  The National Biodiversity Authority shall give public no tice of every approval granted by it under this section. 
  
Determination of equitable benefit sharing by National Biodiversity Authority 
  
21.(1) The National Biodiversity Authority shall while granting a pprovals under section 19 or section 20 ensure that the 
terms and conditions subject to which approval is granted se cures equitable sharing of benefits arising out of the 
use of accessed biological resources, their by-products , innovations and practices associated with their use and 
applications and knowledge relating thereto in accordan ce with mutually agreed terms and conditions between 
the person applying for such approval, local bodies concerned and the benefit claimers. 
  
(2)  The National Biodiversity Authority shall, subject to  any regulations made in this behalf, determine the benefit 
sharing which shall be given effect in all or any of the following manner, namely: 
  
(a)  grant of joint ownership of intellectual property rights to the National Biodiversity Authority, or where 
benefit claimers are identified, to such benefit claimers; 
(b)  transfer of technology; 
(c)  location of producti on, research and development units in su ch areas which will facilitate better living 
standards to the benefit claimers; 
(d)  association of Indian scientists, benefit claimers and the local people with research and development in 
biological resources and bio-survey and bio-utilization; 
(e)  setting up of venture capital fund fo r aiding the cause of benefit claimers; 
(f)  payment of monetary compensation and non-monetar y benefits to the benefit claimers as the National 
Biodiversity Authority may deem fit. 
  
(3)  Where any amount of money is ordered by way of benefit sharing, the National Biodiversity Authority may direct 
the amount to be deposited in the National Biodiversity Fund: 
  
Provided that where biological resource or knowledge was a result of access from specific individual or group of 
individuals or organizations, the National Biodiversity Authority may direct that the amount shall be paid directly to 
such individual or group of individuals or organizations  in accordance with the terms of any agreement and in 
such manner as it deems fit. 
  
(4)  For the purposes of this section, the National Biodi versity Authority shall, in consultation with the Central 
Government, by regulations, frame guidelines. 
  
CHAPTER - VI 
  
State Biodiversity Board 
  
Establishment of State Biodiversity Board 
  
22.(1) With effect from such date as the State Government may, by notification in the Official Gazette, appoint in this 
behalf, there shall be established by that Government for the purposes of this Act, a Board for the State to be 
known as the (name of the State) Biodiversity Board. 
  
(2)  Notwithstanding anything contained in this section, no State Biodiversity Board shall be constituted for a Union 
territory and in relation to a Union territory, the National Biodiversity Authority shall exercise the powers and 
perform the functions of a State Biodiversity Board for that Union territory: 
  
Provided that in relation to any Union territory, the Nation al Biodiversity Authority may delegate all or any of its 
powers or functions under this sub-section to such pers on or group of persons as the Central Government may 
specify. 
  
(3)  The Board shall be a body corporate by the name afor esaid, having perpetual succ ession and a common seal, 
with power to acquire, hold and dispose of property, both movable and immovable, and to contract, and shall by 
the said name sue and he sued. 
  
(4)  The Board shall consist of the following members, namely: 
  
(a)  a Chairperson who shall be an eminent person having adequate knowledge and experience in the 
conservation and sustainable use of biological diversity and in matters relating to equitable sharing of 
benefits, to he appointed by the State Government; 
  
(b)  not more than five ex officio members to be appointed by the State Government to represent the 
concerned Departments of the State Government; 
(c)  not more than five members to be appointed from amongst experts in matters relating to conservation of 
biological diversity, sustainable use of biological resources and equitable sharing of benefits arising out of 
the use of biological resources. 
  
(5)  The head office of the State Biodiversity Board shall be at such place as the State Government may, by 
notification in the Official Gazette, specify. 
  
Functions of State Biodiversity Board 
  
23.  The functions of the State Biodiversity Board shall be to– 
  
(a)  advise the State Government, subject to any guidelines issued by the Central Government, on matters relating to 
the conservation of biodiversity, sustainable use of its components and equitable sharing of the benefits arising 
out of the utilization of biological resources; 
  
(b)  regulate by granting of approvals or otherwise requests for commercial utilization or bio-surv ey and bio-utilization 
of any biological resource by Indians; 
  
(c)  perform such other functions as may he necessary to ca rry out the provisions of this Act or as may be prescribed 
by the State Government. 
  
Power of State Biodiversity Board to restrict certain activities 
  
24.(1) Any citizen of India or a body cor porate, organization or association registered in India intending to undertake any 
activity referred to in section 7 shall give prior inti mation in such form as may be prescribed by the State 
Government to the State Biodiversity Board. 
  
(2)  On receipt of an intimation under sub-section (1), the State Biodiversity Board may, in consultation with the local 
bodies concerned and after making such enquires as it conservation, may deem fit, by order, prohibit or restrict 
any such activity if it is of opinion that such activity is  detrimental or contrary to the objectives of conservation and 
sustainable use of biodiversity or equitable sharing of benefits arising out of such activity: 
  
Provided that no such order shall be made without giving an opportunity of being heard to the person affected. 
  
(3)  Any information given in the form referred to in sub- section (1) for prior intimation shall be kept confidential and 
shall not be disclosed, either intentionally or unintentionally, to any person not concerned thereto. 
  
Provisions of sections 9 to 17 to apply with modifications to State Biodiversity Board 
  
25.  The provisions of sections 9 to 17 shall apply to a St ate Biodiversity Board and shall have effect subject to the 
following modifications, namely: 
  
(a)  references to the Central Government shall be construed as references to the State Government; 
(b)  references to the National Biodiversity Authority s hall be construed as references to the State Biodiversity 
Board; 
  
Provisions of sections 9 to 17 to apply with modifications to State Biodiversity Board. 
  
(c)  reference to the Consolidated Fund of India shall be construed as reference to the Consolidated Fund of 
the State. 
  
CHAPER - VII 
  
Finance, Accounts and Audit of National Biodiversity Authority 
  
Grants or loans by the Central Government 
  
26.  The Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the 
National Biodiversity Authority by way of grants or lo ans such sums of money as the Central Government may 
think fit for being utilized for the purposes of this Act. 
  
Constitution of National Biodiversity Fund 
  
27.(1) There shall be constituted a Fund to be called the National Biodiversity Fund and there shall be credited thereto -- 
  
(a)  any grants and loans made to the National Biodiversity Authority under section 26; 
(b)  all charges and royalties received by the National Biodiversity Authority under this Act; and 
(c)  all sums received by the National  Biodiversity Authority from such other sources as may be decided upon 
by the Central Government. 
  
(2)  The Fund shall be applied for– 
  
(a)  channeling benefits to the benefit claimers; 
(b)  conservation and promotion of biological resources and development of areas from where such biological 
resources or knowledge associated thereto has been accessed; 
(c)  socio-economic development of areas referred to in clause (b) in consultation with the local bodies 
concerned. 
  
Annual report of National Biodiversity Authority 
  
28.  The National Biodiversity Authority shall prepare, in such  form and at such time each financial year as may be 
prescribed, its annual report, giving a full account of its acti vities during the previous financial year and furnish, to 
the Central Government, before such date as may be pres cribed, its audited copy of accounts together with 
auditors report thereon. 
  
Budget accounts and audit 
  
29.(1) The National Biodiversity Authority shall prepare a bud get, maintain proper accounts and other relevant records 
(including the accounts and other relevant records of the  National Biodiversity Fund) and prepare an annual 
statement of account in such form as may be prescrib ed by the Central Government in consultation with the 
Comptroller and Auditor-General of India. 
  
(2)  The accounts of the National Biodiversity Authority s hall 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 audit 
shall be payable by the National Biodiversity Authority to the Comptroller and Auditor-General of India. 
  
(3)  The Comptroller and Auditor-General of India and any other person appointed by him in connection with the audit 
of the accounts of the National Biodiversity Authority shall have the same rights 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 pr oduction of books, accounts, 
connected vouchers and other documents and papers and to inspect any of the offices of the National Biodiversity 
Authority. 
  
(4)  The accounts of the National Biodiversity Authority as certified by the Comptroller and Auditor- General of India or 
any other person appointed by him in this behalf toget her with the audit report thereon shall be forwarded 
annually to the Central Government. 
  
Annual Report to be laid before parliament 
  
30.  The Central Government shall cause the annual report and auditor's report to be laid, as soon as may be after 
they are received, before each House of Parliament. 
  
CHAPTER - VIII 
  
Finance, Accounts and Audit of State Biodiversity Board 
  
Grants of money by State Government to State Biodiversity Board 
  
31.  The State Government may, after due appropriation m ade by the State Legislature by law in this behalf, pay to 
the State Biodiversity Board by way of grants or loans such sums of money as the State Government may think fit 
for being utilized for the purposes of this Act.   
  
Constitution of State Biodiversity Fund 
  
32.(1) There shall be constituted a Fund to be called the State Biodiversity Fund and there shall be credited thereto-  
  
(a)  any grants and loans made to the State Biodiversity Board under section 31; 
(b)  any grants or loans made by the National Biodiversity Authority; 
(c)  all sums received by the State Biodiversity Boar d from such other sources as may be decided upon by 
the State Government. 
  
(2)  The State Biodiversity Fund shall be applied for- 
  
(a)  the management and conservation of heritage sites; 
(b)  compensating or rehabilitating any section of the people economically affe cted by notification under 
sub-section (1) of section 37; 
(c)  conservation and promotio n of biological resources; 
(d)  socio-economic development of areas from where such biological resources or knowledge associated 
thereto has been accessed subject to any order made under section 24, in consultation with the local 
bodies concerned; 
(e)  meeting the expenses incurred for the purposes authorized by this Act. 
  
Annual report of State Biodiversity Board 
  
33.  The State Biodiversity Board shall prepare, in such form and at such time in each financial year as may be 
prescribed, its annual report, giving a full account of its ac tivities during the previous financial year, and submit a 
copy thereof to the State Government.  
  
Audit of accounts of State Biodiversity Board 
  
34.  The accounts of the State Biodiversity Board shall be maintained and audited in such manner as may, in 
consultation with the Accountant-General of the Stat e, be prescribed and the Stat e Biodiversity Board shall 
furnish, to the State Government, before such date as may be prescribed, its audited copy of accounts together 
with auditor's report thereon. 
  
Annual Report of State Biodiversity Board to be laid before State Legislature 
  
35.  The State Government shall cause the annual report and audito r's report to be laid, as soon as may be after they 
are received, before the House of State Legislature.  
  
CHAPTER - IX 
  
Duties of the Central and the State Governments 
  
Central Government to develop National strategies plans. Etc., for conservation, etc., of biological diversity 
  
36.(1) The Central Government shall develop national strategi es, plans, programmes for the conservation and promotion 
and sustainable use of biological diversity including measures  for identification and monitoring of areas rich in 
biological resource s, promotion of in situ , and ex situ , conservation of biological resources, incentives for 
research, training and public education to increase awareness with respect to biodiversity. 
  
(2)  Where the Central Government has reason to believe  that any area rich in biological diversity, biological 
resources and their habitats is being threatened by overuse,  abuse or neglect, it shall issue directives to the 
concerned State Government to take immediate ameliorative measures, offering such State Government any 
technical and other assistance that is possible to be provided or needed. 
  
(3)  The Central Government shall, as far as practicabl e wherever it deems appropriate, integrate the conservation, 
promotion and sustainable use of biological diversity into relevant sectoral or cross-sectoral plans, programmes 
and policies. 
  
4)  The Central Government shall undertake measures,- 
  
(i)  wherever necessary, for assessment of environmental  impact of that project which is likely to have 
adverse effect on biological diversity, with a view to avoid or minimize such effects and where appropriate 
provide for public participation in such assessment; 
(ii)  to regulate, manage or control the risks associat ed with the use and release of living modified organisms 
resulting from biotechnology likely to have adverse impact on the conservation and sustainable use of 
biological diversity and human health. 
  
(5)  The Central Government shall endeavour to respect and protect the knowledge of local people relating to 
biological diversity, as recommended by the National Biodiversity Authority through such measures, which may 
include registration of such knowledge at the local, Stat e or national levels, and other measures for protection, 
including sui generis system. 
  
Explanation:-For the purposes of this section,– 
  
(a)  " ex situ conservation” means the conservation of components of biological diversity outside their natural 
habitats; 
(b)  " in situ conservation" means the conservation of ecosystems and natural habitats and the maintenance 
and recovery of viable populations of species in their natural surroundings and, in the case of 
domesticated or cultivated species, in the surrou ndings where they have developed their distinctive 
properties. 
  
Biodiversity heritage sites 
  
37.(1) Without prejudice to any other law for the time being in force, the State Government may, from time to time in 
consultation with the local bodies, notify in the Official  Gazette, areas of biodiversity importance as biodiversity 
heritage sites under this Act. 
  
(2)  The State Government, in consultation with the Central Government, may frame rules for the management and 
conservation of all the heritage sites. 
  
(3)  The State Government shall frame schemes for com pensating or rehabilitating any person or section of people 
economically affected by such notification. 
  
Power of Central Government to notify threatened species 
  
38.  Without prejudice to the provisio ns of any other law for the time being in force, the Central Government, in 
consultation with the concerned State Government, may from time o time notify any species which is on the verge 
of extinction or likely to become extinct in the near fu ture as a threatened species and prohibit or regulate 
collection thereof for any purpose and take appropriate steps to rehabilitate and preserve those species. 
  
Power of Central Government to designate repositories 
  
39.(1) The Central Government may, in consultation with the National Biodiversity Authority, designate institutions as 
repositories under this Act for different categories of biological resources. 
  
(2)  The repositories shall keep in safe custody the biol ogical material including voucher specimens deposited with 
them. 
  
(3)  Any new taxon discovered by any person shall be notifi ed to the repositories or any in stitution designated for this 
purpose and he shall deposit the voucher specimens with such repository or institution. 
  
Power of Central Government to exempt certain biological resources 
  
40.  Notwithstanding anything contained in this Act, the Centra l Government may, in consultation with the National 
Biodiversity Authority, by notification in the Official Gaze tte, declare that the provisions of this Act shall not apply 
to any items, including biological resources normally traded as commodities. 
  
CHAPTER - X 
  
Biodiversity Management Committees 
  
Constitution of Biodiversity Management Committee 
  
41.(1) Every local body shall constitute a Biodiversity Management Committee within its area for the purpose of promoting 
conservation, sustainable use and documentation of bi ological diversity including preservation of habitats, 
conservation of land races, folk varieties and cultivars, domesticated stocks and breeds of animals and 
microorganisms and chronicling of knowledge relating to biological diversity. 
  
Explanation.- For the purposes of this sub-section,– 
  
(a)  "cultivar" means a variety of plant that has originated and persisted under cultivation or was specifically 
bred for the purpose of cultivation; 
(b)  "folk variety" means a cultivated variety of plant that was develop ed, grown and exchanged informally 
among farmers; 
(c)  “landrace” means primitive cultivar that was grown by ancient farmers and their successors. 
  
(2)  The National Biodiversity Authority and the State Biodi versity Boards shall consult the Biodiversity Management 
Committees while taking any decision relating to the use of biological resources and knowledge associated with 
such resources occurring within the territorial jurisdiction of the Biodiversity Management Committee. 
  
(3)  The Biodiversity Management Committees may levy char ges by way of collection fees from any person for 
accessing or collecting any biological resource for commer cial purposes from areas fa lling within its territorial 
jurisdiction. 
  
CHAPTER - XI 
  
Local, Biodiversity Fund 
  
Grants to Local Biodiversity Fund 
  
42.  The State Government may, after due appropriation made by State Legislature by law in this behalf, pay to the 
Local Biodiversity Funds by way of grants or loans such sums of money as the State Government may think fit for 
being utilized for the purposes of this Act. 
  
Constitution of Local Biodiversity Fund 
  
43.(1) There shall be constituted a Fund to be called the Lo cal Biodiversity Fund at every area notified by the State 
Government where any institution of self-government is functioning and there shall be credited thereto- 
  
(a)  any grants and loans made under section 42; 
(b)  any grants or loans made by the National Biodiversity Authority; 
(c)  any grants or loans made by  the State Biodiversity Boards; 
(d)  fees referred to in sub-section (3) of secti on 41 received by the Biodiversity Management Committees; 
(e)  all sums received by the Local Biodiversity Fund from such other sources as may be decided upon by the 
State Government. 
  
Application of Local Biodiversity Fund 
  
44.(1) Subject to the provisions of sub-section (2), the management and the cu stody of the Local Biodiversity Fund and 
the purposes for which such Fund shall be applied, be in the manner as may be prescribed by the State 
Government.  
  
(2)  The Fund shall be used for conservation and promotion of biodiversity in the areas falling within the jurisdiction of 
the concerned local body and for the benefit of the community in so far such use is consistent with conservation of 
biodiversity. 
  
Annual Report of Biodiversity Management Committees 
  
45.  The person holding the custody of the Local Biodiversity  Fund shall prepare, in such form and during each 
financial year at such time as may be prescribed, its annual  report, giving a full account of its activities during the 
previous financial year, and submit a copy thereof to the concerned local body. 
  
Audit of accounts of Biodiversity Management Committees 
  
46.  The accounts of the Local Biodiversity Fund shall be maintained and audited in such manner as may, in 
consultation with the Accountant-General of the State, be prescribed and the 

Excerpt shown. Open the full act in Lexace.

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