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The Orissa Kendu Leaves (Control of Trade) Act, 1961
Act 28 of 1961
Keyword(s):
Grama Panchayat, Grower of Kendu Leaves, Samiti
Amendment appended: 10 of 2004
ORISSA ACT 28 OF 1961
THE O m S A KENDU LEAVIES (COHTROL OF TRADE) ACT, l%l
CONTENTS
PasAMBtB
SECTIONS
I . Short title, extent and. comrncnccment
2. Definitions
3. Res:riction on purchase
4. Sale price
5. Constitution of uni ts
6. Opening of depots and publication of price l i s t . etc., at the depot
7. Qovtrnmeat and their officer or agent bound to purchase
8. Appointment of agents
9. Registration
10. LJlsposal of leaves
11. Application of net profits
12. Delegation of powers
13. Power of entry, searzb, seizure, etc.
14. Penalty
15. Attempts and abetments
16. Cognimnce of olfcnoes
17. Savings in respect of acts done in good faith
18. Power to make rules
19. Repeal
20. Power to remove doubts and diflcdtics
41 3
ORISSA ACT 28 OF 1961
Or5rsa Act
7 of 1960.
'[THE ORISSA KENDU LEAVES (CONTROL
OF TRADE) ACT, 19611
[Received the assent of the President on the 28th
December, 1961 jrs t published in an extra-
ordinary issue of the Orissu Gazette,
dated the 3rd Jmuar-y 19621
AN ACT TO PROVIDE FOR CONTROL OF TRADE IN
KENDU LEAVES
WHEREAS it is expedient to provide for regu-
lation of trade in Kendu leaves by creation of State
monopolY in such trade ;
It is hereby enacted by the Legislature of the
State of Orissa in the Twelfth Year of the Republic
af India, as folows :-
1. ( I ) This Act may bt; called the Orissa Kendu short tith
b v e s (Control of Trade) Act, 1961. commsnob -t and
(2) It extends to the whole of the State of Orissa. mat.
(3) It shall come into force2 in any $strict on I
such date as Government may, by notification, appoint
I
2. In this Act unless the context otherwise I
requires-
(a) "agent" means an agent appointed under
section 8 ;
(b) 4cGovernment'' means the State Govern-
ment of Orissa ;
3[(~) "Grama Panchayat" means a Grarna
Panchayat constituted under the Orissa
Grama Panchayat Act, 1964;]
(d) "grower of Kendu Iaves" means any
person who owns .lands on which Kendu
plants - grow or who is in possession of
such lands under a lease or othenxrise ;
4[[e) "Samiti" means a Samiri constituted uniier
the Orissa Panchayat Samiti Act, 1959;l
1. For the Statement of Objects and Reasons, see O r i m Gorette, Ex-
ordinary, dated the 4th October 1961 ( No. 682 ).
2. w e into force with d e c t from the 5th January 1962-Vide N o t i b
tion No. 330-C F. dated the 4th January 1962, published m Orissa Gazette,
Exttaordinary. dated the 6th January 1962 (No. 5).
3. Substituted by the Orissa Kendu Leaves (Ccmirol of Traao)
( Amendment) Act, 1969 ( Or. Act 6 o i I969 ). 3.2 (a).
4. substituted by ibid s. 2 (b).
THE ORISSA .K ENDU LEAVES [ or. Act 28
v) '' prescribed" mrnns prescribed by the r u l ~
made under this Act ;
(g) "permit" means a permit issued under
section 3; and
(g-I) "registered grower" means a grower
of Kendu leaves who has registered him-
self under section 9 ; ]
(h) 4c~nit" means a umt constituted under
section 5.
kasWIctlon
sa purchase. 3. (1) No person other than-
(a) the Government ;
(6) an officer of Government authorised in
that behalf; or
(c) an agent in respect of the unit in which
the leaves have grown ;
shall purchase or transport Kendu leaves.
Explanation I-Purchase of Kendu leaves ,from
the aforesaid Government officer or agent shall not
be deemed to be a purchase in contravention of the
provisions of this Act.
Explanation XI-A person having no interest in
the Iand who has acquired the right to collect Kendu
leaves grown on such land shall be deemed to have
purchased such leaves in contravention of the provi-
sions of this Act.
(2) Notwithstanding anything contained in sub-
section (1)-
(a) a grower of Kendu Ieaves may transport
his leaves from any pIace within the unit
wherein such leaves have grown to any
other pIace in that unit ;* "
3[ Provided that a registered grower may also
transport his Ieaves from any place within
the unit wherein such leaves have grown
to any other plau outside the unit for
the purpose of sale to the Government
or any agent in respect of the unit author-
ised to purchase the same from him;
and j
--- . . - . . .. ----A-
1. -'by the Orissa Kendu teavw ( Control of Tradc) ~~rnondmeat)
Act. 1969 ( Or.! Act 6 of 1C69 ), s.2 (c).
2. Omitted by ibid, s. 3.
3. - by &id.
(6) leaves purchased from Government or any
officer or agent spccificd in the said sub-
section by any person for manufacture
of bidis w i t l ~ i ~ ~ thc State or by any person
for sale outside the State may be tram-
ported by such p e m n outside the ;in;!
under a permit lo be issucd In that bci: :l:
by such authority and in sucli rn2.1~-C.
as may be p~~esciibed and the permir A:-.
issucd shall be subject to such condition;,
as may be prescribed.
(3) Any person dcsiriag to sell Kend.u !caves
may sell them to the aforesaid Government Offices or
agent at any &pot situated within the said unit.
4. (1) The Government shall, after consultation FTim
with the Advisory Committee constituted under
sub-s&ion (2) fix the pice at which Kendu leaves
shall be purchased by them or by any officer or agent
from growers of Kendu leaves during any ycar and
shall publish the same in the prescribed manner not
later than the 31st day OF -Tanuary of that year and
the price so fixed shall not be altered during such
year :
Provided that different prices may be fixed for
different units having regard to-
(a) prices fixed under any law during the
preceding t h e e years in respect of the
area comprised in the unit ;
(b) quality of the !eaves grown in the unit ;
(c) transp~rt facilities available in the unit ;
(d) the cost of transport ; and
(e) general level fif \vases for unskilled labour
prevalent in the unit.
(2) The Government shall constitute an Advisory
Committee for the State consisting of not less than
six members :as may be notificd by Government from
time to time :
Provided that not more than one-third of such
members shall be from amongst persons who are
growers of Kendu leaves.
T E ~ OWA KENDU LBAW [ Or. Aat 28
(3) It shall be the duty of the aforesaid Committee
to advise Government on such, matters as may be
referred to it by Government.
(4) The business of. the Committee shall be
conducted in such manner and the members shall
be entitled to such allowances, if any, as may be
prescribed.
conntitution of units 5. The Government may divide each district
into such nuinber of units as they deem fit.
opening of 6. In each unit there shalI be such number of
FG:~,,:: depots as Government may direct to be set up:at
or price list, such places as may be convenient for the transactton
o h . at tho ,,,,, of business and the price list of Kendu leaves and the
hours of business shall be prominently display&
on the notice board kept for the purpose at every
such depot. ,
aovermnent 7. (1 ) The Government or their authorised offiw~
md omcer their or or agent skU be bound to purchase at the price fixed
agent bound under section 4 Kendu leaves which are offerid. to
'O PUTChase-. them for sale at the depot during-the hours of business :
Provided that it shall be open to Government
or any officer or agent. not to purchase any leaves
which in their opinion -are not fit-for the purpose of
manufacture of bidis.
[ (2) Any person aggrieved by the rejection of
his leaves by the Government or by an authorised
oBcer or agent under the proviso to sub-section ( I ) ,
may, within fifteen days 'therefrom, refer the. matter
to the Divisional Forest OEcer, or such other officer
as may be empowered by Government in this behalf,
having jurisdiction over the unit in which the leaves
have grown.
(2-4 Any person, to whom price is paid at a
rate lower than the rate h e d under section 4 for
Kendu leaves sold bv him to the Goverment or
their auihorised officer bi agent, may refer the 'matter
to the aforesaid officer within Hteen days from the
date of such payment.
(2-b) On receipt of a reference under subsentian
(2), the Divisional Forest OEcei or such other o h ,
as the cpse may be, shall hold aa enquky on the spot orb
1. Substituted by the Orissa Kendu Leaves (Coqgol 'of T d )
Amendmat) Act, 1969 (Or. Act 6 of 19691, s. 4.
at the headquarters in the prescribed manner and
after hearing the parties concerned or their autliorised
agent shall pass such orders as he deems fit and in
case he finds the rejection of the leaves to be improper,
he may:-
(i) if he considers the leaves in question still
suitable for the manufacture of bidis,
direct the Government or the authorised
officer or agent, as the case -may be, to
purchase the same and also to pay to
the person aggrieved, such further compen-
sation not exceeding twenty per centum
of the price of the leaves payable to him,
as he may deem fit ;
(ii) if he considers that the leaves in questioa
have since become unsuitable for manu-
facture of bidis, direct the Governmeat
or thier authorised ofiicer or agent, as
the ease may be, to pay to the person
aggrieved an amount equaI to the price
of such leaves ayable under sub-section
(1) and such l! urther compensation not
exceeding twenty per centum of such
price as he may deem fit.
(2-c) On receipt of a reference under sub-section
(2-a), the said officer shall hold an enquiry in the
manner as aforesaid and if he is satisfied about the
correctness of the allegations made in the reference
he may direct the Government or their authorised
oficer or agent, as the case may be, to pay to the
person making the reference so much of the price
as has not been paid to him and such further compen-
sation not exceeding twenty per centurn of .the amount
so directed to be paid as he may deem fit.]
(3) Nothing in this section shall be construed
so as to debar the appropriation of leaves offered
for sale if Government or their authorised officer,
or agent have reason to believe that the leaves apRer-
tain to forests or lands belonging to Government
and paying only such collection charges, if any, as
Government may from time to time determine :
Provided that in case of any dispute the Divisional
Forest Officer '! or such other Oicer who may be
specifically empowered in this behalf as specxed
in sub-section (2) shall hear and dispose of the same
in the manner provided therein.
420 THE ORJSSA KENDU LEAVES [Or. Aat 28
Appointment
(S~CS. 8-11}
of agents. 8. ( I ) The Government may, for the purpose
ofpurchase of aud trade in Ktndu leaves on their behalf,
appoint agents in respect of different units and any
such agent may be appointed in respect of more than
one unit :
'[Provided that the Government may for the
purpose of purchase of leaves from the registered
growers, appoint an additional agent in respect of
one or more units].
(2) The procedure for appointment of agents
shall be as may be prescribed-
R m a t i o n 9, Every grower of Kendu leaves shall, if tht
quantity of leaves grown by him duxing a year is
likely to exceed 2[three hundred and S t y kilogrammesJ,
get himself registered in the prescribed manner
3[on payment of such fees as may be prescribed and
shall be liable to rnaintaia accounts and submit
returns in such form and manner as may be prescribed].
Di8Pod Of 10, Kendu leaves purchased by Government or Icava~.
by their officers or agents under this Act shall be
sold or .otherwise disposed of in such manner as
Government may direct.
Applimtion
of ncr profits.
11. ( I ) Out of the net profits derived by Govern-
ment, from the trade in Kendu Ieaves under t h i s Act
an amount not being less than fifty per centurn there-
of shall be paid to the Samitis and Grama Panchayats.
(2) The allocation of the said amount among
the different Samitis and Grama Panchayats as
aforesaid shaU be as Government may determine from
time to time.
4[(3) Subject to such conditions as may be pres-
cribed the sums so paid to t he Samitis and Grama
Panchayats shall be utilised in accordance with the
O I ~ U Act provisions of the Orissa Pai~chayat Samiti Act, 19591 1960a
and the Orissa Grarna Panchayat Act, 1964, respecti- Act vely2 YO^ 1965.
1. Inser!ed by the Oris , Kcndu haws (Contrsl of Tmde) (Arnendm~nl)
Act. 1969 (Or. Act 6 of 1969). s- 5.
2. Subalituted by ibid.,s. 6 for "ten slandard maunds".
3. Added by the,Ori@a xeodu Lcaves {control of Trade) (Ammdmtot)
Act, 1963 (OF. $ct. 17 19831, s- 2.
4. Sub~tituted by the Orissa Kendu t tavm (Crlntrol of Trade)
~mcndment) Act, 1969 (Or. Act 6 of 1969), 3.7.
12. The Government may, by order, delegate Dolcgat ion of powers.
any of their powers or functions under this Act or
the rules made thereunder to any officer or authority
who shall exercise or perform the same subject to
such conditions and restrictions as Government may
specify in the order.
13. ( I ) Any police officer not below the rank Power of
cntry, SoSICh of an assistant sub-inspector and any other person ~oizure, etc.
authorised by Government may, with a view to securing
compliance with the provisions of this Act or the
rules made thereunder or to satisfJring himself that
the said provisions have been complied with-
(i) stop and search any person, boat, vehicle
or receptacle used or intended to be
ased for the transport of Kendu leaves ;
(ii) enter and search any place ;
(iii) seize Kendu leaves in respect of whic5
he suspects that any provision of this
Act or the ruIes made thereunder has
been, is being or is about to be bntra-
vened along with the receptacle containing
such leaves, or the vehicles or boats used
in carrying such leaves.
Act 5 of
1898.
(2) The provisions of sections 102 and 103 of
the Code of Criminal Procedure, 1898, relating to
search and seizure shall, so far as may be, appIy to
searches and seizures under this section.
.. 14. If any person contravenes any of ,he provi- ~ena~t!,
siom of this Act or the rules- made thereunder-
(a) he shall be punishable with imprisonment
which shall extend to one year or with
h e which may extend to five hundred
rupees or with both ;
(6) the K e ~ d u leaves in respect of which
such contravention has been made or
such part thereof as to the Court may
seem fit shall be forefeited to the Govern-
ment :
Provided that if the Court is of the opinion that
it is not necessary to direct forfeiture in respeci ~f
the whole, -or as h e case may be, any part of ~hr:
leaves, it may, for reasons to be ' recorded, re:lain
from doing so.
M W
d*aw? 15. Any person who attempts to contravene
or abets the contravention of any 'provision of t h i s
Act or ' the rules made thereunder shalf be deemed to
have contravened such provision,
0 'mnco
'$.' 16. No Court shall take cognizance of any at offence punishable under this Act except on a report
in writing of the facts constituting such offence made
by any Forest Officer not below the rank of a DivisionaI
Forest Officer or by any other -officer authorised in
that behalf by the Government.
SaYim in
-I or 17. ( I ) No suit, prosecution or other legal proceed- '2%~" ings shall lie against any person for anything which
is in good faith done or intended to be so done in
pmwnce of this Act oc the rules made thereunder.
(2) No suit or other legal proceedings shall
lie against Government for any damage caused or
likely. to be mused or any injury suffered or likely
to b suffered by virtue of the provisions of this Act
or by apything which is in good faith, done or intended
to be so done in pursuance of this Act or the rules
made thereunder,
Poww to
maks ~ll* 18. (1) The Government may m e ds' for
carrying out all or any of the purposes "r o this Act.
(2) In partidm and without prejudice to the
ge ~erality of the foregoing powers they may make
rules in respect of all or any of the following nia-
nainely :-
(a) publics~tion of the price lists of Kendu
leaves ;
(b) manner of holding enquiries under this
Act ;
(c) procedure to be followed in making appoint-
ment of 'agents ;
I .
(4 the authority by whom, the manner ' in
which ind the conditions subject .to which
permits may be issued ;
(e) the manner of registration under section 9
'[and ihe fees therefor] ;
'[(ee) the forms and manner in which accountd
shall be maintained and returns shall be
submitted;]
Cfl the conditions.subject to which sums dotted
to Samitis and Grama Panchayats shall
be uused ;
(g) the forms in which applications shall be
made and permits shall be issued ; and
(h) any other matter which 'is either expressly
or impliedly required to be prescribed
under th is Act. I I .
brisda A C ~ 19. On the coming into force of this Act in any
7 of 1955. district the Orissa Essential Articles Control and
Requjsitioning (Temporary Powers) Act, 1955 shall,
in so far as it relates to Kendu leaves, stand repealed
. in respect of such &st&.
20. If any doubt or di&ulty arises in giving
effect to the provisions of this Act, the Govement r a m 0 1 POW to , . .
may, as occasion may require, by order, do anything dpnbta 4
not inconsistent with the provisions of this Act, or mati-
the rules made. thereundex; which appears to them
necessary for purposes of removing the doubt of
mculty.
1. Added by the Orissa K a d u Lsavu ( Control of m& ) (bondmat1
&, 1963 (Or. Act 17 of 19631,~. 3 (a).
2. W e d b ibid. r. 3 (b).
424 THE OR~SSA KENDU LEAVES [ Or. Act 28 of 19bI ]
(CONTROL OF TRADE) ACT, 196 1
PROV~SION OF THE ORISSA KENDU LEAVES
(CONTROL OF TRADE) (AMENDMENT)
ACT, 1 969 [OR. ACT 6 OF 1969)
(2) Notwithstanding such repeal, anything done,
any action taken, any rules or orders made or any
notice or notification issued in exercise of any power,
conferred by or under the said Ordinance shall be
deemed to have been done, taken, made or issued in
exercise of the powers conferred by ok under this Act,
as if this Act had commenced on the 17th day CL
February, 1969.
ORISSA ACT 10 OF 2004
THE ORISSA KEPJDU LEAVE'S (CONTROL OF TRADE) AMENDMENT ACT, 2004
TABLE OF CONTENTS
PREAMBLE
SECTIONS
1. Short title and commencement.
2. Amendment of Section 2.
-3. Amendment of Section I d .
4. ~rnendrnent,of Section 18.
ORISSA ACT 10 OF 2004
"THE bRlSSA KENDU LEAVES (CONTROL OF TRADE)
AMENDMENT ACT, 2004-
[ Received the assent of be Governor on the 9th October, 2004, first published in an
Extraordinary issue of the Orissa Gazette dated the 19th October, 2004 (No. 139011 '
AN ACT FURTHER TO AMENDTHE ORISSA KENDU LEAVES
(CONTROL OF TRADE) ACT, 1961.
BE it enacted by the Legislature of lhe State of Orissa in h e FiQ-fifthyear
of the Republic of India as follows :-
$hob title 1:. (I ) This Act may be called the Orissa Kendu Leaves (Control of Trade)
- and
-L Amendment Act, 2004.
(2) I t shall be deemed to have come into force on the 1st day of ,
April 2004.
I .
Amendment 2. In Section 2 of the Orissa Kendu Leaves (Control of Trade) Act, I 961 Orissa Act .
of Section 2.
L *
28 of 1961.
(hereinaffer referred to as the principal Act,-
(i) in clause (g ) , the word 'and" occurring at the end shall be
omitted ;
(I;;) in clause (h) , for the full stop "." occumng at the end, the semicolon
and word " ; and" shall be subsliluted ; and
(iio afler clause (h). the following clause shall be inserled, namely :-
'(0 "Zilla Parishad" means a Zilla Parishad constituted under the
Orissa Zilla Parishad Act, 1991 .'. Orissa Act
77 01 '1991.
Amendrnenl 3. In Section 1 I of the principal Act,-
of SecUon 11.
i (0 for Ihe word "Samitis" wherever it occurs, thewords "Zilla Parishads,
Samitis" shall be substituted ; and
!
I
(ii) in sub-section (31, aRer the words "provisions or, the following words,
commas and figure shall be inserted with the marginal reference
i mentioned against them, namely :-
I
I "the Orissa Zilla Parishad Act: 1991 ,". Drissa ~ c t
- I 17 of 1991.
Amendment of 4. In Section 18 of the principal Act, in clause (0, afiar the words 'allotled
-Seelion 18.
to", the words and comma'2illa Parishads," shall be inserted.
F o r the Bill, See Orissa ~ a z e f i b , Extraordinary, dated the 1 9th October 2004 (No. 1 390)
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