The uttar pradesh forest corporation act, 1974

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THE UTTAR PRADESH FOREST CORPORATION ACT, 19741
[U. P. ACT No. IV OF 1975]

[Passed in Hindi by the Uttar Pradesh Legislative Assembly on February 27, 1974
and by the Uttar Pradesh Legislative Council on February 26, 1975.

Received the assent of the Gov ernor on March 6, 1975 under Article 200 of ‘the
Constitution of India’, and was published in the Uttar Pradesh Gazette Extraordinary, dated
March 13, 1975.]

AN
ACT

to provide for the establishment of a corporation for better preservation,
supervision and development of forests and better exploitation of forest produce within the
State and for matters connected therewith.

IT IS HEREBY enacted in the Twenty -fifth Year of the Republic of India as
follows :- .
CHAPTER I
Preliminary
Short title,
extent and
commencement

1. (1) This Act may be called the Uttar Pradesh Forest Corporation Act, 1974.
(2) It extends to the whole of Uttar Pradesh.
(3) It shall come into force on such date as the State Government may, by
notification in the Gazette, appoint in this behalf.

Definition 2. In this Act, unless the context otherwise requires -
(a) "Corporation" means the [Uttarakhand] 3 Forest Development
Corporation established under section 3-A]2 under section 3;
(b) "local body" means a Nagar Mahap alika, Municipal Board, Town
Area. Committee, Notified Area Committee Zila Parishad , Antarim Zila
Parishad, Kshettra Samiti or Gaon Sabha ;
(c) "Managing Director" means the Managing Director of the
Corporation appointed under clause (a) of sub-section (1) of section 4;
(a) "Prescribed" means prescribed by rules made under this Act;
(e) "regulations" means regulations made under this Act ;
(f) "State Government" means the Government of [Uttarakhand]3.

1. For S.O.R. see U.P. Gazette Extraordinary, dated August 22, 1975.
2. Inser. by section 2 (a) of Uttarakhand Act No. 07 of 2001.
3. Subs. by section 2 of Uttarakhand Act No. 04 of 2011.

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 3-5]

CHAPTER II
Establishment and Constitution of the Corporation
Establishment
of the
Corporation
3. (1) The State Government shall, by notification in the Gazette and with effect
from a date to be specified therein, constitute a corporation by the name of
the [Uttarakhand]2 Forest Corporation.
(2) The Corporation shall be a body corporate having perpetual succession and a
common seal and may sue and be sued in its corporate name and shall have
the power to acquire, hold and dispose of property for the purposes of this
Act.
(3) The Corporation shall for all purposes be a local authority.
(4) The Corporation shall have its head office at Lucknow and may have offices
at such other places as it may consider necessary.

[3-A (1) The State Government of [Uttarakhand]2 shall, by notification in the gazette
and with effect from the date to be specified therein, constitute a corporation
by the name of [Uttarakhand]2 Forest Development Corporation.
(2) The Corporation shall be a body corporate having a perpetual succession and
a common seal and may sue and be s ued in its corporate name and shall have
the power to acquire, hold and dispose off property for the purpose of this
Act.
(3) The Corporation shall for all purposes be a local authority.
(4) The [Uttarakhand] Forest Development Corporation shall have its head office
at Narendranagar and may have offices at such places as it may consider
necessary.
(5) The area of operation of the Uttarakhand Forest Development Corporation
shall be the entire territory of the State of Uttarakhand, in respect of which
the Uttar Pradesh Forest Corporation will cease to function and operate with
effect from the date the [Uttarakhand] 2 Forest Development Corporation is
notified in the gazette.]1

Constitution of
the corporation

4. (1) The Corporation shall consist of a Ch airman, to be appointed by the State
Government and the following other members; namely--
(a) five members to be appointed by the State Government from
amongst the officers serving under it, one of whom shall be appointed as the
Managing Director of the Corporation; and
(b) not more than three non -official members to be appointed by the
State Government from amongst the person s who in it opinion possess
experience in mutters relating to the preservation and development of forests.
(2) The appointment of t he Chairman and other members shall be notified in the
Gazette.

Disqualifica-
tions for being
chairman or
other member
5. A person shall be disqualified to be appointed as, and for being the Chairman
or other member of the Corporation, if he-

1. Inser. by section 2 (a) of Uttarakhand Act No. 07 of 2001.
2. Subs. by section 2 of Uttarakhand Act No. 04 of 2011.
35

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 6-7]

(a) has been convicted of an offence which in the opinion of the State
Government involves moral turpitude; or
(b) is an undischarged insolvent; or
(c) is physically or mentally incapable of acting as such member; or
(d) in the opinion of the State Government has failed to act or has
become incapable of acting in t he best interests of the Corporation or has so
abused his position as the Chairman or other member, as to render his
continuance as such d etrimental to the interests of the Corporation or the
general public; or
(e) has directly or indirectly by himself or by any partner, employer or
employee any share or interest, whether pecuniary or of any other nature, in
any contract or employment, with, by, or on behalf of the Corporation; or
(f) is a director, secretary, manager or other officer of any company
which has any share or interest in any contract or employment with by, or on
behalf of the Corporation :
Provided that a person shall not be disqualified under clause (e) or
clause (f) by reason only of his or the company in which he is a director,
secretary, manager or other officer having a share or interest in-
(i) any sale, purchase, lease or exchange of immovable property
or any agreement for the same;
(ii) any agreement for loan of money, or any security for
payment of money only;
(iii) any newspaper in which any advertisement relating to the
affairs of Corporation is published;
(iv) an occasional sale to the Corporation up to a value not
exceeding ten thousand rupees in any year, of any article in which he
or the company regularly trades.
Explanation-- A person shall not be deemed to have any share or
interest in any contract or employment with, by, or on behalf of the
Corporation by reason only of his being a share-holder of the company which
has such share or interest.

Term of office
of the
Chairman and
non-official
members
6. (1) The term of office of the Chairman, if he is not, an officer serving under the
State Government or of a non -official member of the Corporation shall be
three years unless it is determined earlier by the State Govern ment by
notification in the Gazette.
(2) The Chairman or a non -official member of the Corporation may at any time,
by writing under his hand addressed to the State Government, resign his
office and on such resignation being accepted he shall be deemed to have
vacated his office.

Casual
vacancy
7. (1) It the Chairman or any non -official member is, by infirmity or otherwise,
rendered temporarily incapable of carrying on his duty or is absent otherwise,
in circumstances not involving the, vacation of hi s appointment, the State
Government may appoint another person to officiate for him and to carry out
his functions under this Act.
36

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 8-11]

(2) A casual vacancy created by the resignation of the Chairman or any non -
official member under sub -section (2) of section 6 or for any other reason
shall be filled by fresh appointment and the Chairman or non -official
members so appointed shall hold office for the remainder of the term of the
Chairman or, as the case may be, of the non -official member in whose place
he is so appointed.

Appointment
of employees
of the
corporation

8. (1) The Corporation may appoint such employees as it considers necessary for
the efficient performance of his function a under this Act :
Provided that the appointment of such employees as the State
Government may, by general or special order, specify, shall be made in
consultation with the Public Service Commission, [Uttarakhand]1 or with the
approval of the State Government, as the State Government may direct.
(2) The Corporation may, with the previous approval of the State Government,
appoint an employee of the Central Government or the State Government or
local body on such terms and conditions as may be agreed upon.

Salaries and
allowances

9. (1) The Chairman and non -official members shall be entitled to draw such
traveling and daily allowances from the fund of the Corporation as may be
determined by regulations.
(2) The Managing Director and other employees of the corporation shall be,
entitled to receive from the fund of the Corporation such salaries and
allowances and shall be governed by such conditions of service as may be
determined by regulations.

Control by
Managing
Director

10. Subject to the su perintendence of the Corporation, the general control over
the employees of the Corporation shall be vested in the Managing Director.
Meetings

11. (1) The corporation shall meet at such times and places and shall observe such
procedure in regard to the transaction of business in its meeting as may be
determined by regulations.
(2) The Chairman or in his absence, a member of the Corporation elected by the
members present from amongst themselves, shall preside at the meeting of
the Corporation.
(3) All questions at the meetings of the Corporation shall be decided by majority
of votes of the members present and voting and in the case of equality of
votes, the Chairman, or in his absence the member presiding, shall ha ve a
second or casting vote.
(4) The Chairman may invite any person to attend a meeting of the corporation
for the purpose of assisting or advising it on any matter and the person so
invited may take part in the discussions of the corporation but shall have no
right of vote.

1. Subs. by section 2 of Uttarakhand Act No. 04 of 2011.
37

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 12-15]

Disqualifica-
tion for
participation in
proceedings on
account of
interest

12. A member who is directly or indirectly concerned or interes ted in any
contract, loan, arrangement or proposal, entered into or proposed to be
entered into by or on behalf of the Corporation shall at the earliest possible
opportunity disclose the nature of his interest to the Corporation and shall
not be present a t any meeting thereof when any such contract, loan,
arrangement or proposal is discussed unless his presence is required b y other
members for the purpose of eliciting information and no member no required
to be present shall vote on any such contract, loan, arrangement or proposal.

Acts not to be
invalidated by
vacancy etc
13. No act done or proceedings taken under this Act, by the Corporation shall be
deemed to be invalid by reason merely of any vacancy or defect in the
constitution of the Corporation.

CHAPTER III
Functions and powers of the Corporation
function of the
Corporation
14. Subject to the provisions of this Act, and to any general or special directions
of the State Government, the functions of the Corporation shall be following;
namely-
(a) to undertake removal and disposal of trees and exploitation of
forest resources entrusted to it by the State Government;
(b) to prepare projects relating to forestry within the State
(c) to undertake research programmes relating to forests and forest
products and render technical advice to State Government on matters relating
to forestry ;
(d) to manage, maintain and develop such forests as are transferred or
entrusted to it by the State Government ;
(e) to perform such functions as the State Govern ment may from time
to time require.

Power of the
corporation
15. (1) The Corporation shall, subject to the provisions of this Act, have power to do
anything which may be necessary or expedient for carrying out its functions
under this Act.
(2) Without prejudice to the generality of the foregoing provision, such power
shall include the power --
(a) to set up workshops or factories for processing forest raw materials;
(b) to establish, maintain and operate laboratories and experimental
and research stations ;
(c) to enter into such contract or arrangement with any person as the
Corporation may deem necessary for performing its functions under this Act;
(d) to borrow money, issue debentures and manage its fund; and
(e) to incur expenditure and gra nt loans and advances to such persons
as the Corporation may deem necessary for performing its functions under
this Act.

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 16-21]

Power of the
Corporation
to undertake
Projects at the
instance or
other

16. The Corporation may undertake the execution of any afforestatio n project at
the request of the State Government or, with the previous approval of the
State Government, at the request of any other person on such terms and
conditions as may be agreed upon.
CHAPTER IV
Finance, Accounts and Audit

Fund of the
corporation

17. (1) The Corporation shall have its own fund which shall be a local fund and to
which shall be credited all moneys received by or on behalf of the
Corporation.
(2) Th e fund shall be applied towards meeting expenses incurred by the
Corporation in the discharge of its functions under this Act and for no other
purpose.
(3) The money of the Fund shal l be kept in the State Bank of India or in the
[Uttarakhand]1 Co-operative Bank or in any Scheduled Bank :
Provided that nothing in this sub -section shall be deemed to preclude
the Corporation from retaining such balances in case as may be necessary for
current payment or from investing any portion of the fund not required fo r
immediate expenditure in any of the securities described in section 20 of the
India Trust Act, 1882.

Power of the
corporation
borrow

18. (1) The Corporation may from time to time, with the previous sanction of the
State Government and subject to the provisions of this Act and to such
conditions as the State Government may by general or special order
determine, borrow any sum required for the purposes of this Act, whether by
the issue of bonds or stocks or otherwise or by making arrangement with
bankers.
(2) Stock issued by to be Corporation under this section shall be issued,
transferred, dealt with and redeemed in such manner as the State Government
may, by general or special order, direct.

Subventions to
the
Corporation
19. The State Government may, after due appropriation by law of the State
Legislature, from time to time make subventions to be Corporation for the
purposes of this Act on such terms and conditions as the State Government
may determine.

Loans to the
Corporation
20. The State Go vernment may, from time to time, advance loans to the
Corporation for the purposes of this Act on such terms .and conditions as the
State Government may determine.

Repayment of
loans

21. (1) The Corporation shall, for the purpose of repayment of any loan raised by it
establish a Sinking Fund in such manner as may be prescribed.
(2) The Sinking Fund shall be maintained, invested and applied in such manner
as may be prescribed.

1. Subs. by section 2 of Uttarakhand Act No. 04 of 2011.
39

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 22-24]

Budget

22. The Corporation shall prepare, in such form and at such time every year as
the State Government may direct, budget in respect of the financial year next
ensuing, showing the estimated receipts and expenditure of the Corporation.

Account and
audit

23. (1) The Corporation shall maintain proper accounts and prepare an annual
statement of accounts including balance -sheet in such form as the State
Government may direct.
[(2) The accounts of the Corporation shall be subje ct to audit annually by the
Controller and Auditor General of India or any person authorized by him,
and any expenditure incurred by him in connection with such audit shall be
payable by the Corporation to the Controller and Auditor General of India or
any person authorized by him.
(3) The Controller and Auditor General of India or any person authorized by him
in connection with the audit of accounts of the Corporation shall have the
same rights, privileges an d authority in connec tion with such audit as the
Controller and Auditor General of India has in connection with the audit of
the accounts of an Organization and, in particular, shall have right to demand
the production of books, accounts, connected voucher s and other document
and papers and to inspect the office of the Corporation.
(4) The accounts of the Corp oration as certified by the Con troller and Auditor
General of India or any person authorized by him in that behalf together with
the audit report thereof shall be forwarded annually to the State
Government.]1
(5) The State Government sha1l --
(a) cause the accounts of the Corporation, together with the audit report
thereon, received by it under sub -section (4) to be laid annually before each
House of the State Legislature; and
(b) cause the accounts of the Corporation to be published in the
prescribed manner and make available copies thereof for sale at a reasonable
price.

Surcharge 24. (1) The Chairman, the Managing Director, or any other mem ber or any employee
of the Corporation shall be liable to surcharge for the 1oss, waste or
misapplication of any money or property of the Corporation if such loss,
waste or misapplication is a direct consequence of his neglect or misconduct
while acting as such Chair man, Managing Director or other member or
employee.
(2) The procedure of surcharge shall be such as may be prescribed.
(3) Any amount found to be involved in any such loss, waste or misapplication
as a result of proceedings for surcharge shall be recoverable as arrears of land
revenue.
(4) Nothing in sub-section (3) shall prevent the Corporation from deducting any
amount referred to therein from any sum payable by the Corporation to
Chairman, Managing Director or other member or employee, as the case may
be.

1. Substituted by section 2 of Uttarakhand Act No. 05 of 2012.
40

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 25-29]

CHAPTER V
External Control
Directors on
questions of
policy
25. (1) In the discharge of its functions under this Act, the Corporation shall be
guided by such directions on questions of polic y as may be given to it by the
State Government.
(2) If any question arises whether any m atter is or is not a matter as respects
which the State Government may issue a direction under sub-section (1), the
decision of the State Government thereon shall be final.

Annual
Reports
26. (1) The Corporation shall, as soon as may be after the end of each financial year
prepare and submit to the S tate Government before such date and in such
form as the State Government may direct, a report giving an account of its
activities during the previous financial year, and such report shall also give
an account of the activities if any, which are likely to be undertaken by the
Corporation in the next financial year and the State Government shall cause
such report to be laid before each House of the State Legislature, as soon as
may be, after it is received by the State Government.
(2) The Corporation shall furnish to the State Government at such times and in
such form and manner as the State Government may direct such statistics and
returns and such particulars in regard to any proposed or existing activities of
the Corporation or any other matter under the control of the Corporation as
the State Government may from time to time require.

CHAPTER VI
Miscellaneous
Local bodies
to assist the
corporation

27. (1) Every local body shall render such assistance and furnish such information to
the corporation end make available for its inspection and examination such
records, maps, plan and other documents as it may require in connection with
the performance of its, functions under this Act.
(2) Notwithstanding anything contained in any other law for the tim e being in
force, the State Government may give to any local body such directions as in
its opinion are necessary or expedient for enabling the Corporation to
perform its function a under this Act and thereupon it shall be the duty of the
local body to comply with such directions.

protection for
action taken in
good faith
28. No suit, prosecution or other legal proceedings shall lie against the State
Government or the Corporation or the Chairman or the Managing Director or
any other member thereof or an y employee of the State Government or the
Corporation for anything which is in good faith done or intended to be done
under this Act or any rule made thereunder.

Members etc.
deemed to be
public servants
29. The Chairman, Managing Director or other me mbers and employees of the
Corporation shall be deemed, while acting or purporting to act in pursuance
of any of the provisions of this Act to be public servants within the meaning
of section 21 of the Indian Penal Code.

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 30-33]

Authentication
of procee-
dings, orders
and other ins -
truments of the
Corporation
30. All proceedings of the Corporation shall be authenticated by the signature of
the Chairman or as the case may be, of t he member presiding in the meeting
of the Corporation in the absence of the Chairman, and all orders and other
instruments issued by the Corporation shall be authenticated by the signature
of such employee of the Corporation as may be authorized by it in t his
behalf.

Delegation of
powers

31. (1) Subject to the provisions of this Act and the rules made thereunder the State
Government may by general or special order del egate either unconditionally
or subject to such conditions including the condition of review by itself, as
may be specified in the order to the corporation such of its powers and duties
under the Indian Forest Act, 1927 or any other law for the time being in
force, as it may deem necessary.
(2) Subject to the provisions of this Act and the rules made there under the
corporation may, by general or special order, delegate either unconditionally
or subject to such conditions, including the condition of review by itself, as
may be specified in the order, to the Chairman or the Managing Dire ctor or
any other member or employee of the Corporation such of its powers and
duties not being the power and duties delegated to the unde r sub-section (1),
as if may deem necessary.

State
Government
may invest the
officers with
powers of
Forest Officer
32. The State Government may invest the Managing Director of any employee
of the Corporation with, all or any of the powers of a Forest Officer under
section 72 of the Indian Forest Act, 1927, and tile Managing Director or such
employee in relation to su ch power shall be deemed to be a Forest Officer
within the meaning of clause (2) of section 2 of the Indian Forest Act, 1927.

Power to make
rules
33. (1) The State Government may, by notification in the Gazette, make rules for
carrying out the purposes of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters; namely --
(a) the manner in which the Sinking Fund shall be established,
maintained, invested and applied under section 21;
(b) the procedure in respect of surcharge under section 24 Including the
provision of appeal, if any, in respect thereof;
(c) any other matter which has to be or may be prescribed.
(3) All rules made under this Act shall as soon as may be after they are made, be
laid before each House of the State Legislature while it is in session for a
total period of not les than thirty 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,
during the said period, agree to make, so however, that any such
modifications or annulme nts shall be without prejud ice to the validity of
anything previously done thereunder.

[The Uttar Pradesh Forest Corporation Act, 1974] [Section 34-35]

Regulation 34. (1) The Corporation may, with the previous approval of the State Gov ernment
make regulations not inconsistent with this Act and the rules made
thereunder for the administration of the Corporation.
(2) In particular, and without prejudice to the generality of the foregoing power,
such regulations may provide for all or any of the following matters; namely-
(a) salaries and allowances and, conditions of service of the Managing
Director a nd employees of the Corporation and traveling and daily
allowances to be paid to the Chairman and nonofficial members;
(b) times and plac es of, and the procedure in regard to the transaction
of business in the meetings of the Corporation;
(c) any other matter for which provision is to be or may be made in the
regulations;
(3) Until any regulations are made by the Corporation under subse ction (1) any
regulations which may be so made by it, may be made by the State
Government, and any regulations so made may be altered or rescinded by the
Corporation in exercise of its power under sub-section (1).

Repeal and
Saving
U.P.
Ordinance no.
15 of 1974.
35. (1) The Uttar Pradesh Forest Corporation Ordinance, 1974 is hereby repealed.
(2) Notwithstanding such repeal, anything done o r any action taken under the
said Ordinance shall be deemed to have been done or taken under this Act as
if this Act had come into force on September 13, 1974.

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