The uttar pradesh Sheera Niyantran Ashiniyam 1964

Uttar Pradesh · state statute

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THE UTTAR PRADESH SHEERA NIYANTRAN ADHINIYAM,
19641
(U. P. ACT No. XXIV of 1964)
Amended by
U. P. Act No. 15 of 1974
U. P. Act No. 05 of 1986
U. P. Act No. 10 of 1995
U. P. Act No. 04 of 1998
U. P. Act No. 17 of 2000
U. P. Act No. 10 of 2009
U. P. Act No. 33 of 2018
U. P. Act No. 37 of 2018
U. P. Act No. 44 of 2018
U.P. Act No. 13 of 2021
U.P. Act No. 35 of 2021
U.P. Act No. 01 of 2023
U.P. Act No. 18 of 2023
[Passed in Hindi by the Uttar Pradesh Legislative Council
on February 12, 196 4 and by the Uttar Pradesh Legislative
Assembly on August 4, 1964.
Received the assent of the President on October 17, 1964
under Article 201 of the Constitution of India and wa s published
in the Uttar Pradesh Gazette Extraordinary , dated November 9 ,
1964. ]
AN
ACT
2[to provide in public interest for the control of storage,
gradation and price of mal asses produced by sugar factories in
Uttar Pradesh and the regulation of supply and distribution
thereof. ]

3[ * * * * ]
IT IS HEREBY enacted in the Fifteenth Year of the Republic of
India as follows :—
CHAPTER I
Preliminary
Short title
and extent
1. (1) This Act may be called the Uttar Pradesh Sheera
Niyantran Adhiniyam, 1964.
(2) It extends to the whole of Uttar Pradesh.
Definitions 2. In this Act unless there is anything repugnant in the subject
or context—
4[(a) ‘‘B -Heavy molasses’’ means the molasses obtained as a
result of curing of B -massecuite and having purity comparable with
the average purity as obtained during the same period of previous
three sugar seasons with the similar process in a vacuum pan sugar
factory.]
4[(a-1)‘‘Brix’’ means the density of solution expressed on brix
densitometric scale and taken in represent the percentage of dissolved
solid matter in it.]
1. For Statement of Objects and Reasons see U. P. Gazette Extraordinary, dated February 4, 1964.
2. Subs. by sec. 2 of U. P. Act no. XV of 1974.
3. Omit. by sec. 3 of ibid.
4. Ins. and renumbered by sec. 2(a) of U.P. Act No. 1 of 2023.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1994]
(a-2) “Controller” means the Controller of Molasses appointed
under section 4 ;
U. P. Act no.
IV of 1910
(b) “ distillery” means the premises licensed un der the
provisions of the United Provinces Excise Act, 1910 for the
manufacture of power, potable or industrial alcohol ;
U. P. Act no.
IV of
(c) “excise officer” shall have the meaning assigned to it in the
United Provinces Excise Act, 1910 ;
1[(d) “Molasses” means the heavy, dark coloured, viscous liquid
produced as a by -product during the manufacture of sugar or
khandsari sugar from the juice of sugarcane or sugar syrum when the
liquid as such or in any form of admixture contains sugar and it also
includes the by -product obtained during the manufacture of sugar
through reverse process from rab or jaggery.]
2[(dd) “molasses year” means the period beginning on the first
day of November and ending on the thirty first day of October in the
year next following ;]
3[(d-1) * * *]
4[(e) “Occupier” means the person who has ultimate control
over the affairs of the sugar factory or Khandsari Sugar Manufacturing
Unit and includes a managing agent of the factory or Khandsari Sugar
Manufacturing Unit.]
(f) “prescribed” means prescribed by rules made under this Act;
(g) “State” means the State of Uttar Pradesh ; and
(h) “sugar factory” or “factory” means any premises including
the precincts thereof, whereon twenty or more workers are working or
were working on any day of the preceding twelve months and in any
part of which a manufacturing process connected with the production
of sugar by means of vacuum pan is being carried on or is ordinarily
carried on with the aid of power.
5[(h-1) ‘‘Khandsari Sugar Manufacturing Unit’’ means a unit
engaged or ordinarily engaged in the manufacture or production of or
khandsari sugar in a reserved area, and which is capable of handling
sugarcane juice produced with the aid of a horizontal crusher driven
by any mechanical power.]
6[(i) “Supply” means to provide Molasse ss by an o ccupier of a
sugar factory or khandsari sugar manufacturing unit to its own unit or
to any other unit such as distillary or any Molasses based industry.]
7[(j) * * *]
8[(k) ‘‘Sugarcane juice ’’ means primary juice, secondary juice,
mixed juice and clear juice as obtained by sulphitation or defecation
process in a vacuum pan sugar factory.
1. Subs. by sec. 2(b) of U. P. Act no. 1 of 2023.
2. Ins. by sec. 2 of U. P. Act no. 04 of 1998.
3. Omitted by sec. 2(c) of U. P. Act no. 1 of 2023.
4. Subs. by sec. 2(d) of U. P. Act no. 1 of 2023.
5. Ins. by sec. 2(e) of U.P. Act No. 01 of 2023.
6. Ins. by sec. 2(f) of U. P. Act no. 1 of 2023.
7. Omitted by sec. 2 (g) of U.P. Act no. 1 of 2023.
8. Ins. by sec. 2(h) of U.P. Act no. 1 of 2023.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964]
(l) ‘‘Sugar syrup’ means conentrated juice of sugarcane
having total dissolved solid content not less than 50 as indicated by
brix. Below 50 brix, it may be treated as thick juice or juice
depending upon the concentration as indicated by brix percentage
in a vacuum pan sugar factory.]
CHAPTER II
Advisory and Administrative Machinery
Constitution
of Advisory
Committee
3. 1 [(1) The State Government may, by notification in the
Gazette constitute an Advisory Committee to advice on matters relating
to the control of storage, preservation, gradation, price, supply and
disposal of molasses.]
(2) The Committee shall consist of such number of persons and
shall be constituted on such terms and conditions as may be
prescribed.
Appointment
of Controller
of Molasses
4. The State Government may, by notification in the Gazette,
appoint a person to be the Controller of Mol asses for the purposes of
exercising the powers and performing the duties of Controller of
Molasses under this Act or the rules made thereunder.
CHAPTER III
Preservation, Distribution and Prices
Preservation
of molasses.
5. Every occupier of a sugar fa ctory 2[or a khandsari sugar
manufacturing unit] shall provide —
(a) converted accommodation within the premises of the factory
2[or a khandsari sugar manufacturing unit] for the safe preservation of
molasses produced in the factory 2[or a khandsari sugar manufac-
turing unit] ;
(b) adequate safeguards against leakage, seepage, overflow or
any other accident likely to damage the quality of molasses stored in
the factory 2 [or a khandsari sugar manufacturing unit] ;
(c) adequate arrangements to prevent the mixing up of water
with molasses or of old deteriorated molasses with fresh molasses ;
and
(d) adequate facilities for handling of molasses, including taking
out of samples and pumping and loading of molasses into tank
wagons, tank lorries and other containers.
Preservation
against
adulteration
6. (1) No occupier of a sugar factory 3[or a khandsari sugar
manufacturing unit] shall adulterate or allow to be adulterated any
molasses produced or held in stock by him.
1. Subs. by sec. 4 of U. P. Act no. XV of 1974.
2. Ins. by sec. 3 of U.P. Act No. 1 of 2023.
3. Ins. by sec. 4 of U.P. Act No. 1 of 2023.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964]
(2) The presence of any molasses having less than forty per cent
sugar contents (expressed as total reducing sugar, determined by the
Lane and Egnon’s volumetric method), in any storage tank of a sugar
factory 1[or a khandsari sugar manufacturing unit] shall be sufficient
to raise a presumption that the occupier of the factory has adulterated
the molasses or allowed it to be adulterated.
Removal of
adulterated
molasses
7. 2[(1) The Controller may, with a view to ensuring proper
storage, preservation, gradation, supply or disposal of unadulterated
molasses, require the occupier of a sugar factory 3[or a khandsari
sugar manufacturing unit] to remove any adulterated molasses from
the premises of the factory within a reasonable period to be specified
by him and the occupier shall within the time allowed comply with the
requirement.]
(2) For the purposes of this section the molasses referred to in
sub-section (2) of section 6 shall be deemed to be adulterated.
Application
for molasses
7-A. 4[ (1) Any person, who requires molasses for his distillery
or for any other purpose of industrial development or for export to any
other country, may apply in the prescribed manner to the Controller
specifying the purpose for which it is required.]
(2) On receipt of an application under sub -section (1) and after
making such inquiries in the matter as he may think fit, the Controller
may make an order under section 8.
(3) In disposing of an application unde r sub -section (1), the
Controller shall consider—
(a) the general availability of molasses ;
(b) various requirements of molasses ;
(c) the better utilization to which molasses may be put in the
public interest ;
(d) the extent to which the requirements of the applicant are
genuine ;
(e) reasonable likelihood or otherwise of the molasses that may
be obtained by the applicant being diverted to purposes other than
those specified in the application ;
and where the application is rejected in whole or in part, he shall
record reasons therefor.]5
State and
supply of
molasses
8. 6[(1) The Controller may, with the prior approval of the Sta te
Government, by order require the occupier of any sugar factory or a
khandsari sugar manufacturing unit to sell or supply in the prescribed
manner such quantity of molasses to such person, as may be specified
in the order, and the occupier shall, notwithstanding any contract,
comply with the other.]
1. Ins. by sec. 4 of U.P. Act No. 1 of 2023.
2. Subs. by sec. 5 of U. P. Act no. XV of 1974.
3. Ins. by sec. 5 of U.P. Act No. 1 of 2023.
4. Subs. by sec. 2 of U. P. Act no. 44 of 2018.
5. Ins. by sec. 6 of U. P. Act no. XV of 1974.
6. Subs. by sec. 6 (a) of U.P. Act no. 1 of 2023.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964]
(1-a) 1[ * * * * ]
(2) The order under sub-section (1) —

2 [(a) shall require supply to be made only to a person who
requires it for his distillery or for any purpose of industrial development
or for export to any other country.]

3[ (aa) may require to person referred to in clause (a) to utilize the
molasses supplied to him under an order made under this section
for the purpose specified in the application made by him under sub -
section (1) of section 7 -A and to observe all such restrictions and
conditions as may be prescribed. ]
(b) may be for the entire quantity of molasses in stock or to be
produced during the year or for any portion thereof, but the proportion
of molasses to be supplied from each sugar factory 4[or a khandsari
sugar manufacturing unit] to its estimated total produce of molasses
during the year shall be same throughout th e State save where, in the
opinion of the Controller, a variation is necessitated by any of the
following factors ;
(i) the requirements of distilleries within the area in which
molasses may be transported from the sugar factory 4[or a khandsari
sugar manufacturing unit] at a reasonable cost ;
(ii) the requirement for other purposes of industrial development
within such area ; and
(iii) the availability of transport facilities in the area.
(3) The Controller may make such modification in the order
under sub -section (1) as may be necessary to correct any error or
omission or to meet a subsequent change in any of the factors
mentioned in clause (b) of sub-section (2).

5 [(4) The State Government may, from time to time, in such
manner as may be prescri bed and at such rates as may be determined
by the Stae Government by notification in the Gazette, impose regulatory
fee on the sale or supply of any type of molasses from any sugar factor
or khandsari sugar manufacturing unit either to its own unit or to a ny
other unit such as distillery or any molasses based industry, in order to
regulate the storage, preservation, distribution, supply, sale, transport,
tracking and surveillance of such molasses, and such regulatory fee
shall be recovered from the Occupier of the sugar factory or kha ndsari
sugar manufacturing unit.
Explanation—For the purpose of this Act, all sugar factories as
well as khandsari sugar manufacturing units, irrespective of captive
consumption of malasses of captive units, shall be equally subjected in
regulation.]

1. Omit. by sec. 2 of U. P. Act no. 17 of 2000.
2. Subs. by sec. 3 of U. P. Act no. 44 of 2018.
3. Ins. by sec. 7 of U.P. Act no. 15 of 1974.
4. Ins. by sec. 6(b) of U.P. Act no. 1 of 2023.
5. Ins. by sec. 6(c) of U. P. Act no. 1 of 2023.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964]

1[(5) * * * ]
Validation 2[8.A. Notwithstanding any judgment, decree or order of any
court to the contrary, anything done or pur porting to be done and any
action taken or purporting to have been taken under any provision of
the Uttar Pradesh Sheera Niyantran (Sanshodhan) Adhiniyam, 2023
(U.P. Act No. 1 of 2023) from the 24th day of December, 2021 shall be
valid and shall be deemed always to have been valid as if the
provisions of this Act were inforce at all material times.]
9. (1) Any person aggrieved by an order under sub-section (1) or
sub-section (3) of section 8 may, within thirty days of the date on
which the order is communicated to him, appeal to the State
Government in the prescribed manner and the State Government may
pass thereon such order as it deems fit.
(2) An order of the State Government under sub -section (1)
shall be final.
10. 3[x x x]
Funds for
regulation of
adequate
storage
facilities
4[10-A. Every occupier of a sugar factory 5[or a khandsari
sugar manufacturing unit] shall from the sale prices for different
grades of Molasses specified below, place in a separate fund the
amount as the State Government may notify in that behalf for being
utilised for provisions and maintenances of adequate storage facilities
in accordance with general or special order issued from time to time by
the Controller :
Grade of Molasses Percentage of total sugar contents of Molasses
(expressed as reducing sugar)
I 50 percent and above
II 44 percent to 49.99 percent
III 40 percent to 43.99 percent]
CHAPTER IV
Offences and Penalties
Contravention
of provisions
11. (1) Whoever contravenes any provision of this Act or the
rules or orders made or the directions i ssued thereunder or wilfully
makes any false statement or submits any false return regarding any
matter in respect of which he is required under this Act or the said
rules, orders or directions to give information shall, on conviction, be
punishable with i mprisonment of either description which my extend
to one year or with fine which may extend to 6[one lakh rupees] or with
with both and, in the case of a continuing contravention, with an
additional fine which may extend to 6[five thousand rupees] for every
day during which the contravention continues after conviction for the
first such contravention.
1. Omitted by sec. 3(ii) of U.P. Act no. 35 of 2021.
2. Ins. by sec. 2 of U.P. Act no. 18 of 2023.
3. Omitted by sec. 3 of U.P. Act no. 17 of 2000.
4. Subs. by sec. 5 of U.P. Act no. 4 of 1998.
5. Ins. by sec. 7 of U.P. Act no. 1 of 2023.
6. Subs. by sec. 2 of U. P. Act no. 33 of 2018.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964]

1[ (2) Any Court trying an offence punishable under sub -section
(1) may direct that any molasses and every animal, cart, vessel,
container or conveyance used in carrying such receptacle or package
containing such molasses in respect of which the court is satisfied th at
such offence has been committed shall be forfeited to the State
Government. ]
Offences by
companies
12. (1) If the person committing an offence under this Act is a
company, the company as well as every person in charge of, and
responsible to, the company for the conduct of its business at the time
of the commission of the offence shall be deemed to be guilty of the
offence and shall be liable to be proceeded against and punished
accordingly ;
Provided that nothing 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.
Notwithstanding anything contained in sub -section (1), whe re
an 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, managing agent,
secretary or any other officer of the company, such director, manager,
managing agent, secretary or other officer shall also be deemed to be
guilty of that offence and shall be liable to be proceeded against and
punished accordingly.
Explanation—For the purposes of this section—
(a) “company” means anybody corporate and includes a firm or
other association of individuals, and
(b) “director” in relation to a firm is partner in the firm.
Cognizance
offences
13. (1) No court shall take c ognizance of an offence punishable
under this Act except on a report in writing of the facts constituting
such offence made by an excise officer of or above the rank of Excise
Inspector.

Act V of 1898
(2) No court inferior to that of a Magistrate of the first class
shall try any offence punishable under this Act.
(3) An offence punishable under this Act shall be cognizable
and bailable within the meaning of the Code of Criminal Procedure,
1898.
Power to
enter, search
and seize
14. (1) A police officer not below the rank of Sub -Inspector or
an excise officer of or above the rank of Sub-Inspector (Excise) may —
(a) enter and search at any time any premises in which he has
reason to believe that any molasses in respect of which an offence
punishable under this Act has been or is about to be committed is kept
or concealed ;
1. Subs. by sec. 2 of U. P. Act no. 33 of 2018.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964]
(b) seize such molasses or any box, packet, receptacle, package
or coverage containing such molas ses and any books, accounts,
documents or statements relating to transactions in such molasses ;
and
1 [(bb) seize every animal cart, vessel container or other
conveyance used in carrying such receptacle or package. ]

Act V of 1898
(c) detain, search and arrest any person whom he has reason to
believe to be guilty of any offence punishable under this Act.
(2) All searches made under this section shall be in accordance
with the provisions of the Code of Criminal Procedure, 1898.
(3) A police officer not below the rank of Sub -Inspector or an
excise officer of or above the rank of Excise Inspector may investigate
any offence punishable under this Act and committed within the limits
of the area in which such officer exercises jurisdiction.
Act V of 1898 (4) Any such officer may exercise the same powers in respect of
such investigation as an officer in charge of a police station may
exercise in relation to a cognizable offence under the provisions of
Chapter XIV of the Code of Criminal Procedure, 1898.
Report about
seizure.
15. 2[ (1) A report about any molasses or articles seized under
section 14 shall as soon as may be after such seizure, be submitted to
the Magistrate having jurisdiction, who may after making such inquiry,
if any, as he considers nec
essary and after taking samples of the
molasses give such directions for its disposal in accordance with the
orders of the Controller as he may think fit.]
(2) Where no prosecution is instituted within six months of
such seizure, the Magistrate may order the release of such molasses or
articles in favour of the persons from whom they were seized.
Power to
compound
offences
16. The Controller may accept, from any person who is
reasonably suspected of having committed an offence punishable
under this Act, a sum of money not exceeding 3[two lakh fifty thousand
rupees] by way of composition for the offence which may have been
committed and in all the cases in which any property has been seized
as liable to forfeiture under this Act, may release the same on payment
of value thereof as estimated by him. On payment of such sum of
money or value or both, as the case may be, to the Controller, the
accused, if in custody, shall be discharged and the property seized
shall be released and no further proceeding shall be taken against
such person or property.
CHAPTER V
Miscellaneous
Maintenance
of accounts
and
furnishing of
returns, etc.
17. Every occupier of a sugar factory 4[or a khandsari sugar
manufacturing unit] and every person to whom 5[molasses is 4[sold] or
supplied] by such occupier shall be bound—
(a) to maintain such registers, records, accounts, instruments
and reagents as may be prescribed ;
1. Ins. by sec. 4 of U. P. Act no. 10 of 2009.
2. Subs. by sec. 9 of U. P. Act no. XV of 1974.
3. Subs. by sec. 3 of U. P. Act no. 33 of 2018.
4. Ins. by sec. 8 of U.P. Act no. 1 of 2023.
5. Subs. by sec. 5 of U. P. Act no. 10 of 2009.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964]
(b) to furnish all such information and returns relating to the
production and disposal of molasses in such manner, to such
persons and by such dates as may, by order, be prescribed by the
Collector ;
(c) to produce, on demand by an excise officer not below the
rank of a Sub- Inspector (Excise), registers, records, document s,
instruments and chemical reagents which he is required to maintain
under the provisions of this Act or the rules or orders made
thereunder.
Accommodation
to inspectors
posted to
factories 1[or
khandsari sugar
manufacturing
units]
18. Every occupier of a sugar factory 1[or a khandsari sugar
manufacturing unit] shall be bound to provide within the precincts
of the sugar factory residential accommodation, on payment of such
rent and on such terms as may be prescribed, to an excise officer
posted to the sug ar factory 1[or a khandsari sugar manufacturing
unit] by the Controller to ensure the compliance of the provisions of
this Act, and the rules and orders made and the direction issued
thereunder.
Delegation of
powers
19. The Controller may, by notificatio n in the Gazette, direct
that any power exercisable by him under this Act, except section 8
thereof, or the rules made thereunder shall in such circumstances
and under such conditions, if any, as may be specified in the
notification, be exercisable also by an officer subordinate to him.
Protection of
action taken in
good faith
20. No suit or other legal proceeding shall lie against the
State Government or any officer in respect of anything which is in
good faith done or intended to be done in pursuance of this Act or
any rules or orders made thereunder.
Service of
orders
21. (1) An order made under the provisions of this Act shall—
(a) in the case of an order of general nature or affecting a
class of persons be notified in the Gazette ; and
(b) in the case of an order directed to a specified individual be
served on such individual—
(i) by post under postal certificate or by delivering or
tendering it to that individual ; or
(ii) if it cannot be so delivered or tendered, by affixing it on
the outer doo r or some other conspicuous part of the premises in
which that individual lives and by preparing a return thereof
witnessed by two persons living in that locality.
Power to make
rules
22. 2[(1) The State Government may, by notification in the
Gazette make rules to carry out the purposes of this Act.]
(2) In particular and without prejudice to the generality of the
foregoing power, such rules may provide for —
(a) the composition of the Advisory Committee, the manner in
which its members shall be chosen, the term of office of its members,
the allowances, if any, payable to them, the manner in which the
Advisory Committee shall tender its advice and the procedure for the
conduct of its business ;

1. Ins. by sec. 9 of U.P. Act no. 1 of 2023.
2. Subs. by sec. 3 of U.P. Act no. 18 of 2023.
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[The Uttar Pradesh Sheera Niyantran Adhiniyam, 1964]
(b) the procedure relating to the removal of members o f the
Advisory Committee ;
(c) conditions relating to preservation and storage of molasses
by sugar factories 1[or khandsari sugar manufacturing units] ;
(d) specification and test in respect of grading and, sampling
of molasses including verification of its quantity and quality ;
(e) manner of sale and supply of molasses ;

2 [(ee) the manner in which the 1[regulatory fees] payable
under sub-section (4) of section 8 shall be realized ; ]
(f) the form and manner of appeal to the State Government
and the procedure to be followed in its disposal ;
(g) the procedure for compounding of offences ;
(h) registers, records, accounts, instruments and reagents to
be maintained by the occupiers of sugar factories 1[or a khandsari
sugar manufacturing unit] ;
(i) the rent and the terms on which residential
accommodation within the precincts of a sugar factory 1[or a
khandsari sugar manufacturing unit] shall be provided to the excise
officer ;
(j) collection of information or statistics in respect of
production, distribution and use of molasses ;
(k) disposal of molasses and articles forfeited under this Act ;
and
(l) any other matter which is to be or may be prescribed.
(3) All rules made under this Act shall, as soon as may be
after they are made, b e laid before each House of the State
Legislature while it is in session, for a total period of not less than
fourteen days extending in its one session or more than one
successive sessions and shall, unless some later date is appointed,
take effect from the date of their publication in the Gazette, subject to
such modifications or annulments as the two Houses of the
Legislature may agree to make ; so, however that any such
modification or annulment shall be without prejudice to the validity
of anything previously done thereunder.
Repeal of U. P.
Act no. XXIII of
1947
23. The United Provinces Molasses (Control) Act, 1947 is
hereby repealed.

3[ X X X X X ]

————
1. Ins. by sec. 10 of U.P. Act No. 1 of 2023.
2. Ins. by sec. 3 of U. P. Act no. 5 of 1986.
3. Schedule omitted by sec. 6 of U. P. Act no. 4 of 1998.
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