Jute (Licensing and Control) Order, 1961
New Delhi, the 10th March, 1961
- In exercise of the powers conferred by section 3 of the' Essential Commodities
Act, 1955 (10 of 1955), the Central Government hereby, makes the following
Order, namely :-
Title And Commencement :
(1) This Order may be called
the Jute (Licensing and Control) Order, 1961.
(2) It extends to the whole of
India except the State of Jammu and Kashmir.
(3) It shall come into force
: In this Order, unless the context otherwise requires :-
"Jute Commissioner" means the Jute Commissioner appointed by
the Central Government and includes any other officer appointed by the Central
Government to exercise the powers of the Jute Commissioner under this Order;
(b) "Jute Textiles" means hessian and sacking cloth made from jute, bags made from hessian or sacking cloth, twine, yarn and any other article made, wholly or in part, from jute;
"Licensing Authority" means the Jute Commissioner and also the
State Government and includes any other officer appointed by the Central or the
State Government to be the licensing authority;
(d) "Raw Jute" means
the fibre of jute also known as pat, kosta, nalita, bimli or mesta;
"Year" means the year commencing on the lst July and ending
with the 30th June next following;
includes a railway administration or any other person engaged in the business of
transporting property from one place to another by land, air or water.
Licensing of Dealers in Raw Jute and Jute Textiles :
(1) The Jute Commissioner may, by notification in the Official Gazette direct that, with effect from such date as he may specify in the notification, no person shall carry on business in raw jute or jute textiles involving purchase, sale or storage for sale of raw jute or jute textile, except under and in accordance with the terms and conditions of a licence issued under this Order :
Provided that the Jute Commissioner, may, by
notification in the Official Gazette, exempt any
class of such persons from the provisions of this sub-clause :
further that in granting such exemption under the preceding proviso the Jute
Commissioner shall have regard to the following matters, namely :-
The volume of business in raw jute or jute textiles carried on by such
class of persons ;
The quantity of raw jute or jute textiles in the possession of such class
of persons ;
The period for which the stocks of raw jute or jute textiles are
ordinarily held by such
class of persons for the purpose of sale or storage ;
Price situation and availability position of raw jute or jute textiles in
the country; and
Any other relevant factor.
(2) Every such licence shall be issued by the licensing authority on application made to it in such
and manner as the Jute Commissioner may prescribe.
(3) A licence issued under
this clause shall be valid for the year for which it is issued and may be
for one year at a time.
(4) A fee of Rs. 10.00 shall
be charged for every licence and of Rs. 5.00 for its renewal.
Matters to be taken into consideration in granting licences : In
granting or refusing a licence under this Order, the licensing authority shall,
among other matters, have regard to :-
(a) The stock of raw jute or
jute textiles, as the case may be, available in the locality ;
The business ordinarily carried on by the applicant ;
(c) Any other matter which in
the opinion of the licensing authority is relevant for the purpose.
Conditions of Licence : Every licence issued under clause 3 shall
be, subject to the following conditions, namely :-
licensee shall maintain true and correct accounts in such form and submit to the
authority such returns and at such intervals as the Jute Commissioner may
(b) The licensee shall issue
to every customer a receipt or invoice in such form and containing such
particulars as the Jute Commissioner may prescribe ;
(c) The licensee shall give
all reasonable facilities to the licensing authority or any officer duly
empowered by such authority to enter the business premises and inspect
the stocks and accounts ;
(d) The licensee shall comply
with any direction lawfully issued to him under this Order in regard to his
6. Duplicate Licence : Where a licence is lost or destroyed, the licensing authority may, on application made to it in this
behalf, issue a duplicate licence on payment of a fee of Rs. 5.00.
7. Suspension or Cancellation of Licence : The licensing authority may suspend or cancel a licence issued under this
Order if -
(a) The licence has been
granted through mistake or obtained by fraud or misrepresentation ;
(b) The licensee has committed a breach of any of the conditions of the licence or any provision of this Order, provided that before suspending or cancelling the licence, the licensee shall be given reasonable opportunity to make his representation.
7A. Appeal against order of Licensing
Authority : Any person aggrieved by an order refusing to grant licence or an
order suspending or cancelling a licence may, within a period of thirty days
from the date of receipt of communication of such order, prefer an appeal -
(a) If the order is
made by the licensing authority, other than the Jute Commissioner, to the
(b) If the order is made by
the Jute Commissioner, to the Central Government for his decision thereon.
Power to fix prices :
(1) The Jute Commissioner may,
by notification in the Official Gazette, fix the maximum or the minimum
price, or both, at which any variety of raw jute or jute textiles or any grade
of such variety may be purchased or sold; and different prices may be fixed for
different areas or for different varieties of raw jute or jute textiles 'or
(i) In fixing such price or prices, the Jute Commissioner shall have regard to the quality of raw or jute textiles and the railway freight and other expenses necessary for the transport of raw jute or jute textiles from the producing centre to the area or areas in relation to which such price or prices is or are fixed.
(ii) No person shall sell or
offer to sell or purchase or offer to purchase any raw jute or jute textiles at
a price exceeding the maximum price or below the minimum price fixed therefor
under sub-clause (1).
8A.Power to Control Production of Jute Textiles : The Jute Commissioner may, by order, direct any manufacturer or class of manufacturers, or the manufacturers generally, to produce or not to produce such classes or specifications of jute textiles as may be specified in the order and prescribe the maximum or minimum quantities of jute textiles which each such manufacturer, or class of manufacturers or manufacturers generally shall produce during such period as may be specified in the said order :
Provided that in making an order under
this clause the JuteCommissioner shall have regard to –
The capacity of the manufacturer, or class of manufacturers, or
the manufacturers generally, to manufacture jute textiles ;
(b) The need to maintain the
supplies with particular reference to the availability of raw jute, the
requirements for domestic consumption and the need to safeguard export earnings;
(c) Any other relevant factor.
(1) Any person aggrieved by
any order of the Jute Commissioner made under clause 8A, may, within 30 days of
the date of receipt of such order prefer an appeal to the Central Government.
(2) On receipt of an appeal
under Sub-Clause (1) the Central Government shall after giving the appelant an
opportunity of being heard and after such further enquiry as may be necessary
pass such order on the appeal as it thinks fit.
Power to Regulate Stocks of Raw Jute :
The Jute Commissioner may, by order,
Specify the maximum quantity of raw jute or any specified variety of jute
which a manufacturer may buy;
(ii) Direct that the said raw jute or any specified variety of jute shall be bought during any specified period only from the person or agency specified therein ;
(iii) Specify the maximum quantity of raw jute which a jute manufacturer may have in his own possession during any specified period ; for the purpose of manufacture of jute textiles.
(2) In issuing an order under sub-clause (1), the Jute Commissioner shall have regard to -
(a) The quantity of raw jute used by the manufacturer during the previous year;
(b) The capacity of the manufacturer
to manufacture jute textiles;
The availability of raw jute for manufacture of jute textiles; and
(d) Any other factor which, in the opinion of the Jute Commissioner, is relevant for the purpose.
Power to Regulate Minimum Purchase and Minimum Stock of Raw Jute :
The Jute Commissioner may, by order, specify the minimum quantity of raw jute or
any specified variety of
jute, which a manufacturer shall –
(i) actually purchase either
from any specified person or agency or otherwise, during any specified period;
(ii) have in his own possession during any specified period; for the purpose of manufacture of jute textiles.
(2) In issuing an order under
sub-clause (1) the Jute Commissioner shall have regard to
(a) the capacity of the
manufacturer to manufacture jute textiles;
(b) the maximum quantity of
raw jute which the manufacturer has had in his possession during the period of
six months immediately proceeding the date of the order;
the need to maintain and increase the supplies of jute textiles
the need to maintain stability in the prices of raw jute;
any other factor which, in the opinion of the Jute Commissioner, is
relevant for the purpose.
10.Power to Requisition Stocks
The Jute Commissioner, may, with a view to maintaining or increasing the
supplies of raw jute or jute textiles or securing their equitable distribution,
by order, require any person holding stock of raw jute or jute textiles -
(a) To sell the whole or a
specified part of the stock to the Government or to an officer of the Government
or to such other person or class of persons and on such terms and conditions as
may be specified in the order;
(b) Not to sell or deliver the stock without permission in writing of the
Jute Commissioner; or
(c) If he is not the owner of
the stock, to disclose the name of the owner.
(2) In issuing an order, under Sub-Clause (1), the Jute
Commissioner shall have regard to -
(i) The quantity of raw jute
or jute textiles in the possession of various stockists or manufacturers;
(ii) The quality, condition and
grade composition of such stocks in case of raw jute and quality and
construction in case of jute textiles;
Period and the purpose for which such stocks of raw jute or jute textiles
are being held by various stockists or manufacturers with
particular reference to the necessity of discouraging speculative hoarding in,
and ensuring availability at fair prices of raw jute or jute textiles;
Genuine and firm contractual sale commitments, if any;
(v) Whether the stock has been
declared to the Jute Commissioner or not under any provision of this Order and in case
the stock has been so declared whether it has been correctly declared or not;
(vi) Whether the stockists is the real owner or he is holding the stock
for and on behalf of third parties;
Whether the stock is being held in violation of any order of the Jute
Commissioner under this order; and
Any other factor, which in the opinion of the Jute Commissioner, may be relevant
for the purpose.
10A Subject to the prior approval of the Central Government, the Jute Commissioner may, by general or special order, prohibit the transport of raw jute from any place within any area to outside that area by land, air or water except under such conditions, limitations, and restrictions as may be specified in order.
Subject to the prior approval of the central government , the jute
commissioner may, by order , in writing, direct any carrier to close booking and
transport of any raw jute by land ,air or water between such places and for such period as may be specified in the order and such
carrier shall comply with the order.
11. Power of Entry
Jute Commissioner or any officer duly authorised by him in this behalf may, with
a view to securing compliance with this Order,-
(a) Require any person to give information in this possession with respect to any business carried on by him or any other person;
Inspect or cause to be inspected or seize or caused to be seized any
books of accounts or other documents in the possession or under the control of
any person which in his or under the control of' any person which in his opinion
shall be useful for or relevant to any proceeding in respect of any
contravention of this Order and allow the person from whose custody such books
of accounts or other documents are seized to make copies thereof or to take
extracts there from in the presence of the officer having the custody of such
books of accounts or other documents;
Enter and search any premises and seize any raw jute or jute textile in
respect of which he has reason to believe that a contravention of this Order has
been, is being or is about to be committed and thereafter take or authorise the
taking of all measures necessary for securing the production of stocks so
seized, in a court or for their safe custody, pending such production.
(2) The provisions of
the code of Criminal procedure 1973 (2 of 1974), relating to search and seizure
shall, so far as may be, apply to searches and seizures under this clause.
12. Penalty : Any
person who contravenes any of the provisions of this Order or fails to carry out
any direction or requisition made there under shall be punishable under section
7 of the Essential Commodities Act, 1955.
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