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RICE MILLING INDUSTRY (REGULATION) ACT, 1958
21 of 1958
18th May, 1958
An Act to regulate the rice-milling industry in the interests of the general public. BE it enacted by Parliament in the Ninth Year of the Republic of India as follows:-The Act now extends to the State of Jammu and Kashmir by reason of amendment of
Sec. 1by Act 47 of 1972: It was extended to the Union Territory of Pondicherry by the Pondicherry (Extension of Laws) Act, 26 of 1968, S. 3 and Sch, Pt. I with effect from 15-5-1969. It has been extended to the Union Territory of,- (1) Goa, Daman and Diu, by Regn. 21 of 1963 (1-2-1965) and (2) Dadra and Nagar Haveli, by Regn, 6 of 1963 (l-7-1965).
SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT
(1) This Act may be called THE RICE-MILLING INDUSTRY (REGULATION) ACT, 1958.
(2) It extends to the whole of India 2[* * * *].
(3) It shall come into force on such date 3as the Central Government may, by notification in the Official Gazette, appoint.4
[Provided that it shall come into force in the State of Jammu and Kashmir on the date of commencement of the Rice-Milling Industry (Regulation) Amendment Act, 1972.]
SECTION 02: DECLARATION AS TO EXPEDIENCY OF CONTROL BY THE UNION
It is hereby declared that it is expedient in the public interest that the Union should take under its control the rice milling industry.
SECTION 02A: RULES OF CONSTRUCTION IN RELATION TO APPLICATION OF ACT TO JAMMU AND KASHMIR
(1) Any reference in this Act to a law which is not in force in the State of Jammu and Kashmir shall, in relation to that State, be construed as a reference to the corresponding law, if any, in force in that State.
(2) Any reference in any provision of this Act (except section 3-A) to the commencement of this Act or the commencement of the Rice-Milling Industry (Regulation) Amendment Act, 1968, shall, in relation to the State of Jammu and Kashmir, be construed as a reference to the commencement of the Rice- Milling Industry (Regulation) Amendment Act, 1972.
(3)Section 3-A-shall have effect in relation to the State of Jammu and Kashmir subject to the omission of the portion beginning with the words "subject to the modification" and ending with the words, brackets and figures "the Rice-Milling Industry (Regulation) Amendment Act, 1968.]"
SECTION 03: DEFINITIONS
In this Act, unless the context otherwise requires,-
6[(a) "defunct rice mill" means-
(i) a rice mill in existence at the commencement of this Act but in which rice-milling operations have not been carried on for a continuous period of one year prior to such commencement; and
(ii) a rice mill (whether established before or after such commencement) in which rice-milling operations are not carried on for a continuous period of one year at any time after the commencement of the Rice-Milling Industry (Regulation) Amendment Act,
1968;]
(b) "existing rice mill" means a rice mill carrying on rice-milling operations at the commencement of this Act, and includes a rice mill in existence at such commencement which is not carrying on rice-milling operations but in which rice-milling operations have been carried on at any time within a period of one year prior to such commencement; 7[Provided that if in any such rice mill, rice-milling operations are not carried on for a continuous period of one year at any time after the commencement of the Rice-Milling Industry (Regulation) Amendment Act, 1968, then, such mill shall, on the expiry of the period of one year, cease to be an existing rice mill and be deemed to be a defunct rice mill.]
(c) "licensing officer" means an officer appointed as such under section 4-;
8[(d) "milling-rice", with its grammatical variations, means-
(i) recovering rice or any product thereof from paddy;
(ii) polishing rice, with the aid of power;
(e) "new rice mill" means a rice mill other than an existing rice mill or a defunct rice mill;
(f) "notified order" means an order notified in the Official Gazette;
(g) "owner", in relation to a rice mill means the person who or the authority which, has the ultimate control over the affairs of the rice mill, and where the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent shall be deemed to be the owner of the rice mill;
9[(gg) "polishing" in relation to rice means the removal of bran from the kernel of rice;]
(h) "prescribed" means prescribed by rules made under this Act;
(i) "rice mill" means the plant and machinery with which, and the premises including the precincts thereof, in which or in any part of which, rice- milling operation, is carried on.
SECTION 04: APPOINTMENT OF LICENSING OFFICERS
The Central Government may, by notified order,- -
(a) appoint such persons, being gazetted officers of Government, as it thinks fit to be licensing officers for the purposes of this Act; and
(b) define the limits within which a licensing officer shall exercise the powers conferred on licensing officers by or under this Act
SECTION 05: GRANT OF PERMITS IN RESPECT OF NEW OR DEFUNCT RICE MILLS
(1) Any person or authority may make an application to the Central Government for the grant of a permit for the establishment of a new rice mill; and any owner of a defunct rice mill may make a like application for the grant of a permit for recommencing rice-milling operation in such mill.
(2) Every application under sub-section (1) shall be made in the prescribed form and shall contain the particulars regarding the location of the rice mill, the size and type thereof and such other particulars as may be prescribed.
(3) If, on receipt of any such application for the grant of a permit, the Central Government is of opinion that it is necessary so to do for ensuring adequate supply of rice, it may, subject to the provisions of sub-section (4) and sub -section (5), grant the permit specifying therein the period within which the mill is to be established or, as the case may be, the mill is to re-commence rice-milling operation and 11[such other conditions (including such conditions as to improvements to existing machinery, replacement of existing machinery and use of improved methods of rice-milling, as may be necessary to eliminate waste, obtain maximum production and improve quality) as it may think fit to impose in accordance with the rules, it any, made in this behalf.]
(4) Before granting any permit under sub-section (3), the Central Government shall cause a full and complete investigation to be made in the pre- scribed manner in respect of the application and shall have due regard to-
(a) the number of rice mills operating in the locality;
(b) the availability of paddy in the locality;
(c) the availability of power and water supply for the rice mill in respect of which a permit is applied for;
(d) whether the rice mill in respect of which a permit is applied for will be of the huller type, sheller type or combined sheller-huller type;
(e) whether the functioning of the rice mill in respect of which a permit is applied for would cause substantial unemployment in the locality;
(f) such other particulars as may be prescribed.
12[(5)
(a) In granting a permit under this section (whether for the establishment of a new rice mill or for re-commencing rice-milling operation in a defunct rice mill), the Central Government shall give preference-
(i) to a Government company or a corporation owned or controlled by the Government over every other applicant;
(ii) to a farmers' co -operative society over every other applicant, not being a Government company or a corporation owned or controlled by the Government, notwithstanding that such other applicant has applied for the grant of a permit for re-commencing rice-milling operation in a defunct rice mill.
(b) Subject to the provisions of clause (a), in granting a permit under this section, the Central Government shall give preference to a defunct rice mill over a new rice mill.
(6) A permit granted under this section [shall be valid] for the period specified therein or for such extended period as the Central Government may think fit to allow in any case.13 [Provided that if in a mill in respect of which a permit has been granted under sub-section (3) rice-milling operation is not carried on for a continuous period of one year at any time after the commencement of the Rice-Milling Industry (Regulation) Amendment Act, 1968; then, such permit shall cease to be valid upon the expiry of the said period of one year and a fresh permit shall be necessary for re-commencing rice-milling operation in the mil.]
SECTION 06: GRANT OF LICENCES
(1) Any owner of an existing rice-mill or of a rice-mill in respect of which14[a permit granted under section. 5 is effective may make an application .to the licensing officer for the grant of a-licence for carrying on rice-milling operation in that ricemill.
(2) Every application under sub-section (1) shall be made in the prescribed form and shall contain the particulars regarding the location of the rice- mill, the size and type thereof and such other particulars as may be prescribed.
(3) On receipt of any such application for the grant of a licence, the licensing officer shall grant the licence on such conditions 15[(including such conditions as to improvements to existing, machinery, replacement of existing machinery and use of improved methods of rice-milling as may be necessary to eliminate waste, obtain maximum production and improve quality and conditions relating to the polishing of rice)] on payment of such fees and on the deposit of such sum, if any, as security for the due performance of the conditions as may be prescribed
16[(4) A licence granted under this section shall be valid for the period specified therein and may be renewed from time to time for such period and on payment of such fees and on such conditions (including such conditions as to improvements to existing machinery, replacement of existing machinery and use of improved methods of rice-milling, as may be necessary to eliminate waste, obtain maximum production and improve quality) as may be prescribed: Provided that if in a mill in respect of which a licence has been grant- ed under sub-section (3) rice-milling operations are not carried on for a continuous period of one year at any time after the commencement of the Rice-Milling Industry (Regulation) Amendment Act, 1968, then such licence shall cease to be valid upon the expiry of the said period of one year and a fresh licence shall be necessary for carrying on rice-milling operations in that mill.]
State Amendments
SECTION 07: REVOCATION, SUSPENSION AND AMENDMENT OF LICENCES
(1) If the licensing officer is satisfied, either on a reference made to him in this behalf or otherwise, that-
(a) a licence granted under section 6 has been obtained by misrepresentation as to an essential fact, or
(b) the holder of a licence has, without reasonable cause, failed to comply with the conditions subject to which the licence has been granted or has contravened any of the provisions of this Act or the rules made thereunder, then, without prejudice to any other penalty to which the holder of the licence may be liable under this Act, the licensing officer may, after giving the holder of the licence an opportunity of showing cause, revoke or suspend the licence or forfeit the sum, if any, Or any portion thereof deposited as security for the due performance of the conditions subject to which the licence has been granted
(2) Subject to any rules that may be made in this behalf, the licensing officer may also vary or amend a licence granted under section 6-
SECTION 08: CERTAIN RESTRICTIONS ON RICE MILLS
(1) No persons or authority shall, after the commencement of this Act, establish any new rice mill except under and in accordance with a permit granted under section 5-
(2) No owner of a rice mill shall, after the commencement of this Act, carry on rice -milling operation except under and in accordance with a licence granted under section 6-: Provided that nothing in this sub -section shall apply to an existing rice mill for such period as may be specified in this behalf by the Central Government by notified order.
(3) No owner of a rice mill,-
(a) in respect of which a licence has been granted under section 6-, shall carry on rice-milling operation in that mill17[after the licence has ceased to be valid;]
(b) in respect of which the licence has been revoked or suspended under section 7- shall carry on rice-milling operation in that mill after the revocation or, as the case may be, during the period for which the licence has been suspended;
(c) shall, without the previous permission of the Central Government, change the location of the whole or any part of the rice mill in respect of which a licence has been granted under section 6-;
(d) shall, after the commencement of this Act, effect any expansion of the rice mill except with the previous permission of the Central Government: 18[Provided that no such permission shall be necessary,-
(i) where such expansion is in accordance with the terms and conditions of the permit or licence granted under this Act in respect of the rice mill; or
(ii) for the replacement merely of any parts of the machinery of the rice mill if such replacement does not result in an increase in the productive capacity of the rice mill.]
SECTION 09: POWER OF INSPECTION
For the purpose of ascertaining the position or examining the working of any rice mill or for any other purpose mentioned in this Act or the rules made thereunder, the licensing officer or any person authorised by the Central Government in this behalf shall have the right- (a) to enter and inspect any rice mill;
(b) to order the production of any document, book, register or record in the possession or power of any person having the control of, or employ- ed in connection with, any rice mill; and
(c) to examine any person having the control of, or employed in connection with, any rice-mill.
SECTION 10: DECISION OF CENTRAL GOVERNMENT FINAL RESPECTING CERTAIN MATTERS
- If, for the purposes of this Act, any question arises as to whether-
(a) there has been an expansion of a rice mill, or
(b) the replacement of any parts of the machinery of a rice mill has resulted in an increase in the productive capacity of the rice mill, the Central Government may, after giving the owner of the rice mill an opportunity of being heard, decide the question and the decision of the Central Government thereon shall be final
SECTION 11: RETURNS
Every owner of a rice mill shall furnish to the Central Government such returns relating to the affairs of the rice mill and in such forms as may be prescribed.
SECTION 12: APPEALS
(1) Any person aggrieved by a decision of a licensing officer under section 6-orsection 7-may within thirty days from the date on which the decision is communicated to him, prefer an appeal to an appellate officer who shall be a person nominated in this behalf by the Central Government. Provided that the appellate officer may entertain the appeal after the expiry of the said period of thirty days, if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time
(2) On receipt of an appeal under sub-section (1), the appellate officer shall, after giving the appellant an opportunity of being heard, dispose of the appeal as expeditiously as possible
SECTION 13: PENALTIES
19[(1)] If any person contravenes or attempts to contravene or abets the contravention of any of the provisions of section 8-or sub-section (2) of section 18 -, he shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to ten thousand rupees, or with both, and in the case of a continuing contravention, with an additional fine which may extend to five hundred rupees for every day during which such contravention continues after conviction for the first such contravention: Provided that where such contravention, attempt or abetment relates to sub-section (1), or sub-section (2), or clause (a) or clause (b) of sub-sec. (3) of section 8-, or sub -section (2) of section 18-, he shall be punishable with imprisonment for a term which shall not be less than one month.]
(2) If any person,-
(a) when required by this Act or by any order under this Act to make any statement or furnish any information, makes any statement or furnishes any information which is false in any material particular and which he knows or had reason to believe to be false or does not believe to be true, or
(b) makes any such statement as aforesaid in any book, account, record, declaration, return or other document which he is required to maintain or furnish under this Act, or
(c) contravenes any rule the contravention of which is made punishable under this sub-section, he shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to two thousand rupees, or with both.
SECTION 14: OFFENCES BY COMPANIES
(1) If the person committing an offence under this Act is a company, every person who, at the time of offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, 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 provided in this Act, 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 an of- fence 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 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 deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly
SECTION 14: A BURDEN OF PROOF IN CERTAIN CASES
20[Where paddy, husk, rice or broken rice is recovered from the premises of a mill, it shall be presumed, unless the contrary is proved by the owner, that rice-milling operations are carried on in that mill.]
SECTION 15: COGNIZANCE OF OFFENCES
No court shall take cognizance of any of - fence punishable under this Act except on a report in writing of the facts constituting such offence made by the licensing officer or any person duly authorised by the Central Government or the licensing officer in this behalf.
SECTION 16: JURISDICTION OF COURTS
No court inferior to that of a presidency magistrate or a magistrate of the first class shall try any offence punishable under this Act.
SECTION 17: SPECIAL PROVISION REGARDING FINES
Notwithstanding anything contained in section 32 of the Code of Criminal Procedure, 1898, it shall be lawful for any magistrate of the first class or for any presidency magistrate to pass a sentence of fine exceeding two thousand rupees on any person convicted of any offence under this Act.
SECTION 18: POWER TO EXEMPT IN SPECIAL CASES
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