The UTTAR PRADESH MILK ACT,1976

  
144 
   THE UTTAR PRADESH MILK ACT, 19761 
[ U. P. ACT No. 7 of 1976 ] 
 [Passed in Hindi by the Uttar Pradesh Legislative Assemb ly 
on April 8, 1976 and by the Uttar Pradesh Legislative Council on 
April 6, 1976. 
Received the assent of the Governor on April 16, 1976 under 
Article 200 of the Constitution of India and was published in the 
Uttar Pradesh Gazette, Extraordinary, dated April 17, 1976. ] 
 AN 
ACT 
 to provide for the regulation and control of production, supply and 
distribution of milk and its conversion into milk products with a view to 
development of dairy industry in the State, and for matters connected 
therewith.   
IT IS HEREBY enacted in the Twenty -seventh Year of the Republic 
of India as follows ; 
 
Short title, 
extent and 
commence-
ment. 
CHAPTER  I 
1. (1) This Act may be called the Uttar Pradesh Milk Act, 1976. 
(2) It extends to the whole of Uttar Pradesh.  
 (3) It sha ll come into force on such 2 date as the State 
Government may by notification appoint in this behalf, and different 
dates may be appointed for different areas of Uttar Pradesh and for 
different provisions of this Act.   
Definitions 2. In this Act,— 
(a) “au thorized person” and “authorized agency”, respectively, 
mean a person and agency authorized by the Board by notification for 
any purpose under this Act ;  
 (b) “Board” means the Uttar Pradesh Rajya Dugdh Parishad, 
constituted by the State Government by notification under section 3 ;  
(c) “dairy” means any premises where machinery is used for 
cooling, heating or any other treatment of milk or for converting milk 
into milk products or packaging of milk or milk products ;  
 (d) “Fund” means the Uttar Pradesh  Milk Development Fund 
created under section 9 ;  
——————————————————————————————————————————  
1.  For Statement of Objects and Reasons see U. P. Gazette Extraordinary, dated April 8, 1976. 
2.  Under notification no. 1494 -C (3) XII -C, B—8-73, dated May 11, 1976. The Governor is hereby appoint 
May 11, 1976 as a date on which all the sections except 11, 12, 13, 14, 16 and 17 of the said Act shall 
come into force.   
 Under notification no. 646/XII -E-4-8-73, dated August 10, 1976. Governor hereby appoint August 15, 
1976 as a date on which sections 11, 12, 13, 14, 16 and 17 of the said Act shall come into force.   
[The Uttar Pradesh Milk Act, 1976]  
146 
 (e) “licence” means a licence  issued by the Licensing Authority 
under this Act ; 
(f) “Licensing Authority” means an officer authorized by the Milk 
Commissioner in this behalf ; 
 (g) “manufacturer” means a person or establishment engaged in 
the manufacture of milk products or in the p reparation of items 
containing milk solids ; 
 (h) “processor” means a person or establishment engaged in the 
collection or treatment of liquid milk, such as chilling, heating or any 
other treatment for augmenting the marketable life of milk ;  
 (i) “milk” means lacteal secretion from cow or buffalo ; 
(j) “Milk Commissioner” means the Milk Commissioner appointed 
under section 7 ;  
 (k) “milk product” means any commodity manufactured from 
milk, separated milk, butter milk or whey, and includes powders, 
condensed or evaporated milk, cream, cheese, ghee, khoya, dahi, 
chhena, casein, ice -cream or any other product as may be notified by 
the Board to be milk products ;  
 (l) “reserved area” means the area specified in an order made 
under section 12.  
 CHAPTER  II 
CONSTITUTION AND FUNCTIONS OF THE BOARD 
Constitution 
of the Board 
3. The State Government shall, by notification and with effect 
from a date to be specified therein, constitute a Board to be known as 
the Uttar Pradesh Rajya Dugdh Parishad which shall be a body 
corporate with power, subject to the provisions of this Act and the rules 
made thereunder, to acquire, hold and dispose of property.  
Members of 
the Board 
4. The Board shall consist of the following :–  
(a) Commissioner and the Secretary to the State Government, 
incharge of Agriculture Production and Rural Development, who shall be 
the Chairman of the Board, ex-officio ; 
 (b) The Chairman, Pradeshik Co -operative Dairy Federation Ltd., 
ex-officio, who shall be the Vice-Chairman of the Board, ex-officio ; 
(c) the Secretary to the State Government, Finance Department, 
Uttar Pradesh, ex-officio ; 
 (d) Special Secretary or Joint Secretary, as the case may be, to 
the State Government in the Pashudhan Department, Uttar Pradesh,  
ex-officio ; 
(e) the Director of Animal Husbandry, Uttar Pradesh, ex-officio ; 
 (f) the Director of Agriculture, Uttar Pradesh, ex-officio ;  
(g) the Registrar, Co-operative Societies, Uttar Pradesh, ex-officio ; 
[The Uttar Pradesh Milk Act, 1976]  
148 
 (h)  the Director of Medical and Health Services, Uttar Pradesh, 
ex-officio ;  
(i) four representatives of milk producers, unions, to be 
nominated by the State Government ;  
 (j) two representatives of dairie s registered under the Industries 
(Development and Regulation) Act, 1951, in Uttar Pradesh, to be 
nominated by the State Government ;  
 (k) two persons representing the consumer’s interests, to be 
nominated by the State Government ; and  
(l) the Milk Comm issioner, ex-officio, who shall be the Member -
Secretary of the Board.   
Term of non-
official 
members. 
5. The term of office of non -official members shall be three years 
from the date of notification of their appointment.  
Functions of 
the Board 
6. (1) Subject to the provisions of this Act, the functions of the 
Board shall generally be to plan, control, develop and regulate milk 
production and dairy industry in the State.  
 (2) In particular and without prejudice to the generality of the 
provisions of sub -section (1), the Board may take such steps as it may 
think fit — 
(a) to prepare plans and schemes for the development of dairy 
industry in the State ;  
 (b) to regulate and provide for the supply of milk to dairies and 
processors and manufacturers of mil k or processed milk, for 
manufacture and sale of milk products ;  
 (c) to assist entrepreneurs in preparing projects for setting up 
new dairies and to accord approval for the same ;  
(d) to initiate, guide and co -ordinate activities concerning 
breeding of  livestock, provision of balanced cattle feed and fodder to 
producers and control and treatment of cattle diseases ;  
 (e) to regulate the price of milk and milk products ;  
(f) to secure funds for and to incur expenditure in connexion with 
the discharge of functions undertaken by the board ; and  
(g) to take such other measures as may be prescribed.  
Appointment 
of Milk 
Commissioner 
7. The State Government shall for purposes of  this Act appoint a 
Milk Commissioner who shall perform the duties and exercis e all powers 
conferred or imposed upon him by or under this Act.  
Employees of 
the Board 
8. (1) The Milk Commissioner shall be the Chief Executive O fficer 
of the Board. 
(2) Subject to any general or special orders of the State 
Government the Board may, ap point such officers and employees as it 
considers necessary for the efficient performance of its functions under 
this Act and on such terms and conditions as it thinks fit.  
[The Uttar Pradesh Milk Act, 1976]  
150 
 (3) Subject to the superintendence of the Board, the general 
control and direction over all the officers and employees referred to in 
sub-section (2) shall be vested in the Milk Commissioner. 
Milk 
Development 
Fund 
9. (1) There shall be established a fund to be cal led the Uttar 
Pradesh Milk Devel opment Fund, which shall be administered and 
controlled by the Board and to which all moneys received on behalf of 
the Board shall be credited.  
 (2) In particular, and without prejudice to the generality of the 
provisions of sub-section (1), the income of the Board from the following 
sources shall be credited to the fund :— 
(a) amount to be credit ed to the fund by Government out of the 
proceeds of cess to be imposed under section 16 ;  
 (b) licensing fees received under the provisions of this Act ; 
(c) grants and subventions received from the State or Central 
Government or from any other organisation or body.   
External 
Control 
10. (1) The Board shall furnish to the State Government, at such 
times and in such form and manner as the State Government may by 
general or special order direct, such returns, reports and statements as 
the State Government may from time to time require.  
 (2) Without prejudice to the provisions of sub -section (1), the 
Board shall, within two months after the end of each financial year, 
submit to the State Government giving a true and full account of its 
activities, policies and programmes during the previous financial year.  
 (3) The accounts of the Board shall be deemed to be a local fund 
and be audited by the Examiner, Local Fund Accounts, Uttar Pradesh.   
 (4) In the discharge of its functions, the Board shall be guide d by 
such directions on questions of policy as may be given to it by the State 
Government.  
 (5) If any question arises whether any matter is or is not a matter 
as respects which the State Government may issue a direction under 
sub-section (4), the decision of the State Government shall be final.  
 CHAPTER  III 
REGISTRATION, LICENCE, CESS AND RESTRICTIONS 
Licensing of 
Dairy, 
Processor or 
Manufacturer 
11. (1) No person shall after the commencement of this Act set 
up a dairy or milk processing unit handlin g or having installed capacity 
for handling milk or milk products in quantities exceeding the limit 
specified by the Board in this behalf except under a licence in that 
behalf.   
 (2) No person shall on or after the date to be appointed in this 
behalf  by  the  State  Government  by  notification  (such date being not  
[The Uttar Pradesh Milk Act, 1976]  
152 
 earlier than three months after the commencement of this Act), carry on 
business of dairy or as processor or manufacturer, handling or having 
installed capacity for handling milk o r milk products in quantities 
exceeding the limits specified by the Board by notification in this behalf, 
except under a licence in that behalf. 
 (3) Notwithstanding anything contained in sub -sections (1) and 
(2) a milk processing unit licensed under the Industries (Development 
and Regulation) Act, 1951 shall not be refused licence under this Act, if 
it makes an application in the prescribed manner and complies with the 
prescribed conditions and furnishes such security and pays such fee as 
may be prescribed.  
 Explanation I — Different dates may be appointed by the State 
Government in such notification for different areas or for different 
categories, namely, dairies, processors or manufacturers.  
 Explanation II  — Different rates or fees may be prescribed  for 
the categories mentioned in Explanation I or for different classes thereof.  
Reserved 
Area 
12. (1) The Board may, by notification, declare an area to be a 
reserved area to ensure the availability of sufficient milk at fair prices.  
 (2) When an area  has been declared a reserved area, the dairy or 
dairies in such area shall, if so directed by the Board, purchase all the 
milk offered by the producers in the area at such price as may be 
notified by the Board having regard to relevant factors such as 
availability and quality of milk and price of milk in that area during the 
preceding year.  
Licensing of 
Transporter 
13. No person other than an authorized person or agency shall 
collect, carry or transport milk or milk products from any place within a 
reserved area to any place outside such area without obtaining license in 
this regard from the licensing authority :  
 Provided that nothing in this section shall apply  to transport or 
carriage of gh ee, or milk and milk product in quantities not exceeding 
prescribed limits by any person for personal consumption.  
Grant of 
licence 
Suspension 
or 
Cancellation 
Forfeiture of 
security and 
ban on claim 
for 
compensation 
14. (1) A licence under the provision of this Act shall  be granted 
or renewed by the licensing auth ority in the prescribed manner, subject 
to prescribed conditions and on furnishing of such security and payment 
of such fees as may be prescribed.  
(2) If any licensee contravenes any of the provisions of this Act or 
the rules made thereunder or any condit ion of the licence, then without 
prejudice to his liability for punishment under section 20, the licensing 
authority may, after giving him an opportunity of e xplanation, cancel his 
licence :  
 Provided that the licensing authority may, while issuing notic e 
for cancellation of licence under this sub-section, suspend the licence. 
 (3) Where any licensee has been convicted of an offence under 
any law relating to purity or quality standards of milk or milk products  
[The Uttar Pradesh Milk Act, 1976]  
154 
 for the time being in force, the licensing authority may, having regard to 
the nature and gravity of the offence and the circumstances, in which it 
was committed, modify or cancel his licence. 
 (4) Without prejudice to the provisions of section 20 or of sub -
section (1), if the licensing authority is satisfied that a licensee has 
contravened any of the conditions of the licence and that a forfeiture of 
his security deposit is called for, it  may, after giving him an opportunity 
of explanation, by order forfeit the whole or part of his security deposit.  
 (5) A copy of every order suspending or cancelling or modifying 
the licence under sub-section (2) or sub-section (3) or an order forfeiting  
security deposit under sub -section (4) shall be communicated to the 
licensee.   
 (6) Any person aggrieved by an order of the licensing authority 
under sub -section (2), sub -section (3) or sub -section (4) may, within 
sixty days of the communication of the order to him, appeal to the 
Chairman of the Board in the prescribed manner.  
 (7) The licensee shall not be entitled to compensation or refund 
of licence fee on cancellation or suspension of his licence.  
Prohibition 
or regulation 
of sale and 
transport and 
export of 
milk and 
milk 
products  
15. The State Government may, in the public interest and 
subject to the provisions of this At and the rules made thereunder, by 
notification regulate or fix prices in respect of — 
(a) the sale or supply of milk, or the manufacture, sale or supply 
of any milk product in a  particular area ; and  
 (b) the transport of milk or any milk product from one area in the 
State to another area in the State or its export to any place outside the 
State.  
Cess on 
purchase of 
milk 
16. (1) The State Government may by notification impose, levy 
and charge tax on the sale or purchase or on carriage by road of milk or 
milk products in such manner and at such rate or rates as may be 
prescribed not exceeding 10 per cent of the price of the m ilk or milk 
products, as the case may be, and such tax shall be payable by the 
dairy or by a processor, manufacturer or transporter of milk or milk 
product outside the State. 
 (2) Any tax imposed under sub -section (1) shall be levied at only 
one point and in such manner as may be prescribed.  
(3) A tax imposed under this section shall be called “Milk Cess”.  
 (4) The authority empowered to collect the cess may forward to 
the Collector, a certificate under his signature specifying the amount of 
arrears due from the person concerned, and the Collector, on receipt of 
such certificate, shall proceed to recover from such person the amount 
specified therein as if it were an arrear of land revenue.  
[The Uttar Pradesh Milk Act, 1976]  
156 
Proceeds of 
cess to go to 
Milk 
Development 
Fund 
17. At the beginning of each financial year, after due 
appropriation ha s been made by law, the State Government shall 
withdraw from and out of the Consolidated Fund of the State the full 
amount of the procee ds of the cess imposed under section 16, and 
recovered by it during the preceding financial year after deduction of 
collection charges, and place it to the credit of the Uttar Pradesh Milk 
Development Fund, and the crediting of such monies to the said Fund 
shall be a charge on the Consolidated Fund of the State.  
 CHAPTER  IV 
PENALTIES AND PROCEDURE 
Cognizance 
of offence 
18. No court shall take cognizance of any offence punishable 
under this Act except on the report of a police officer with the previous 
sanction of the Board or any person authoris ed by the Board for the 
purpose, made within six months next after the commis sion of the 
offence.  
Jurisdiction 
of Court 
19. No court inferior to that of a magistrate of the first class shall 
try an offence punishable under this Act.  
Penalty 20. Whoever contravenes any of the provisions of this Act or of 
any rule or regulation made thereunder or fails to comply with any order 
issued under this Act or the rules or regulations made thereunder shall 
be punishable with fine which may extend to five thousand rupees and 
in the case of a continuing offence, with a further fine which may  extend 
to five hundred rupees for every day during which such offence 
continues, after conviction for the first commission of offence.  
Offence by 
Companies 
21. (1) If the person committing an offence under this Act is a 
company, the company as well as e very person incharge of, and 
responsible to, the company for the conduct of its business at the time of 
the commission of the offence, shall be liable to be proceeded against 
and punished as if this offence was committed by himself :  
 Provided that nothi ng contained in this sub -section shall render 
any such person liable to any punishment if he proves that the offence 
was committed without his knowledge or, that he exercised all due 
diligence to prevent the commission of such offence.  
 (2) Notwithstanding anything contained in sub -section (1), where 
any offence under this Act has been committed by a company and it is 
proved that the offence has been committed with the consent or 
connivance of, or that the commission of the offence is attributable to 
any neglect on the part of any director, manager, secretary or other 
officer of the company, such director, manager, secretary or other officer  
shall also be liable to be proceeded against and punished for the offence.  
 Explanation — For the purposes of this section— 
(a) “company” means anybody corporate and includes a firm or 
association of individuals, and  
 (b) “director”, in relation to a firm, means a partner in the firm.  
 
[The Uttar Pradesh Milk Act, 1976]  
158 
Composition 
of offence 
22. (1) The Milk Commissioner or any other officer of the Board 
authorized by it by general or special order in that behalf may, either 
before or after the institution of the proceedings, compound any 
offence punishable under this Act on such terms, including payment of 
composition fee, as he may think fit :  
 Provided that no offence consisting of a failure to comply with 
an order issued by or on behalf of the Board shall be compounded 
until such order has, so far as practicable, been complied with.  
 (2) Where an offence has been compo unded, the offender, if in 
custody, shall be discharged and no further proceedings shall be taken 
against him in respect of the offence so compounded.  
 CHAPTER  V 
MISCELLANEOUS 
Authentication 
of orders and 
documents of 
the Board 
23. All permissions, ord ers, decisions and other documents of 
the Board shall be authenticated by the signature of the Chief 
Executive Officer or any officer authorized by the Board in this behalf.  
Inspection of 
under taking 
etc. 
24. The licensing authority or any person author ized by the 
Milk Commissioner may inspect or examine or cause to be inspected or 
examined any premises, equipment or record and milk or milk 
products of any dairy, or any undertaking of a processor or 
manufacturer to satisfy itself or himself that no contr avention of this 
Act or rules or regulations made thereunder has been, is being, or is 
likely to be committed.  
Protection for 
acts done in 
good faith. 
25. No suit, prosecution or other legal proceeding shall lie 
against any person for anything which is d one or intended to be done 
in good faith under this Act or the rules and regulations made 
thereunder. 
Acts not to be 
invalid. 
26. No act of the Board shall be deemed to be invalid only 
because of any vacancy in its membership or any  defect in its 
constitution or establishment.  
Power to make 
rules. 
27. (1) The State Government may, by notification, make rules 
for carrying out the purposes of this Act.  
(2) In particular, and without prejudice to the generality of the 
foregoing powers, such rules may provi de for all or any of the following 
matters, namely :— 
 (a) the conduct of business by the Board ;  
(b) the duties, powers and functions of the Milk Commissioner ; 
(c) the appointment of members in casual vacancies in the Board;  
 (d) the preparation and submission of financial statements ;  
(e) the manner and form in which the Uttar Pradesh Dairy 
Development Fund shall be administered and payments from such 
fund ; 
[The Uttar Pradesh Milk Act, 1976]  
160 
 (f) the manner of licensing and rates of licensing fees ;  
(g) the rates of milk cess and the manner of its impos ition and 
collection ;  
 (h) the statements and returns to be submitted by the Board to 
the State Government and the registers and other forms to be 
maintained by it or by dairies, manufacturers and processors ;  
 (i) the reference to the Milk Commission er of the disputes 
between a Milk Union, dairy, processor or manufacturer and the 
procedure to be followed by the Milk Commissioner in this regard ; and  
 (j) any other matter which has to be and may be prescribed by 
the Board.  
Regulations 28. (1) The B oard may, with the previous sanction of the State 
Government, make regulations consistent with this Act and the rules 
made thereunder.  
(2) In particular, and without prejudice to the generality of the 
foregoing power, the Board may make regulations providing for :– 
 (a) the procedure in regard to the transaction of business of the 
Board or its committees ;  
(b) the functions and duties of the employees of the Board ;  
 (c) the constitution, powers, duties and functions of Committees 
of the Board ; and  
(d) any other matter for which provision is to be or may be made 
in the regulations.  
 
 
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