COMPENSATORY AFFORESTATION FUND ACT, 2016
(1) This Act may be called the Compensatory Afforestation Fund Act, 2016.
(2) It extends to the whole of India except the State of Jammu and Kashmir.
(3) Save as otherwise provided in this Act, it shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
In this Act, unless the context otherwise requires:-
(a) "ad hoc Authority" means the ad hoc Compensatory Afforestation Fund Management and Planning Authority constituted under the order dated the 5th May, 2006 of the Supreme Court in T.N. Godavarman Thirumulpad vs. Union of India and Others, [Writ Petition (Civil) No. 202 of 1995];
(b) "Chairperson, National Authority" means the Chairperson of the governing body of the National Authority;
(c) "Chairperson, State Authority" means the Chairperson of the governing body of the State Authority;
(d) "compensatory afforestation" means afforestation done in lieu of the diversion of forest land for non-forestry use under the Forest (Conservation) Act, (69 of 1980) 1980;
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(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a special Fund to be called the "National Compensatory Afforestation Fund" under the public account of India.
(2) The National Fund shall be under the control of the Central Government and managed by the National Authority in such manner as may be prescribed.
(3) On the date of establishment of the National Fund, all monies collected by the State Governments and Union territory Administrations which has been placed under the ad hoc Authority and deposited in the nationalised banks shall be transferred to the National Fund.
(4) There shall also be credited into the National Fund, by each State on yearly basis, ten
(1) With effect from such date as each State Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a special Fund to be called the "State Compensatory Afforestation Fund-……… (name of State)" under public accounts of such State:
Provided that in case of Union territory having no legislature, such fund shall be established under the public account of Union of India with effect from such date as the Union territory Administration may, by notification in the Official Gazette, appoint in this behalf.
(2) The State Fund in each State shall be under the control of the State Government of such State and managed by the State Authority of such State, in such manner as may be prescribed.
(3) There shall be credited into t
Save as otherwise provided in this Act, the monies available in the National Fund shall be disbursed and utilised in the following manner, namely:-
(a) ninety per cent. of the all monies collected by a State, which has been placed under the ad hoc Authority and the interest accrued thereon, shall be transferred to the State Fund established in such state under sub-section (1) of section 4;
(b) the balance ten per cent. of all monies collected by the States and Union territory Administrations, which has been placed under the ad hoc Authority and the interest accrued thereon, and all fresh accrual to the National Fund, as provided in sub-section (4) of section 3, and the interest accrued thereon, shall be utilised for meeting-
(i) the non-recurring and recurring expenditure for the management of
Save as otherwise provided in this Act, the monies available in a State Fund shall be disbursed and utilised in the following manner, namely:-
(a) the money received for compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, catchment area treatment plan and for any other site specific scheme may be used as per site-specific schemes submitted by the State along with the approved proposals for diversion of forest land under the Forest (Conservation) Act, (69 of 1980) 1980;
(b) the monies received towards net present value and penal net present value shall be used for artificial regeneration (plantation), assisted natural regeneration, forest management, forest protection, forest and wildlife related infrastructure development, wildlife protection and management, supply of wood and other forest
The accounting procedure to regulate the manner of crediting the monies to the National Fund and State Fund in a year shall be in such manner as may be prescribed.
(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be constituted a National Authority to be called the "National Compensatory Afforestation Fund Management and Planning Authority."
(2) The National Authority shall manage and utilise the National Fund for the purposes of this Act.
(3) The National Authority shall consist of a governing body and shall be assisted by an executive committee, monitoring group and administrative support mechanism.
(4) The governing body of the National Authority shall consist of the following, namely:-
(i) Minister for Environment, Forest and Climate Change, Government of India-Chairperson, ex officio;
(1) The governing body of the National Authority shall, in performance of its functions and powers under the Act, be assisted by the executive committee and the monitoring group.
(2) The executive committee of the National Authority shall consist of the following, namely:-
(i) Director General of Forests and Special Secretary, Ministry of Environment, Forest and Climate Change, Government of India-Chairperson, ex officio;
(ii) Additional Director General of Forests (Forest Conservation), Ministry of Environment, Forest and Climate Change, Government of India-Member, ex officio;
(iii) Additional Director General of Forests (Wildlife), Ministry of Environment, Forest and Climate Change, Government of India-Member, ex officio;
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(1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be constituted a State Authority to be called the "State Compensatory Afforestation Fund Management and Planning Authority" in each State.
(2) The Central Government may, if so desires, appoint different dates for constitution of State Authority in each of the States.
(3) The State Authority constituted in a State shall be responsible for the management of the State Fund of such State and its utilisation for the purposes of the Act.
(4) The State Authority shall consist of a governing body and shall be assisted by a steering committee and an executive committee.
(5) The governing body of a State Authority shall c
(1) The governing body of the State Authority shall, in performance of its functions and powers under the Act, be assisted by the steering committee and the executive committee.
(2) The steering committee of a State Authority shall consist of the following, namely:-
(i) Chief Secretary-Chairperson, ex officio;
(ii) Principal Secretaries of the Departments dealing with Forests, Environment, Finance, Planning, Rural Development, Revenue, Agriculture, Tribal Development, Panchayati Raj, Science and Technology Members, ex officio;
(iii) Principal Chief Conservator of Forests (Head of Forest Force)-Member, ex officio;
(iv) Chief Wildlife Warden-Member, ex officio;
(
Save as otherwise provided in this Act, the terms of office and other conditions of the service of the members of the National Authority, executive committee, monitoring group, Chief Executive Officer and officials appointed by the National Authority, members of State Authority, steering committee and executive committee of each State Authority shall be such as may be prescribed.
A person shall be disqualified for being appointed as a member of the National Authority, executive committee of the National Authority, a State Authority, steering committee and executive committee of a State Authority, monitoring group, if he-
(i) has been convicted and sentenced to imprisonment for an offence which, in the opinion of the Central Government, involves moral turpitude; or
(ii) is an un-discharged insolvent; or
(iii) is of unsound mind and stands so declared by the competent court; or
(iv) has been removed or dismissed from the service of the Government or organisation or undertaking owned by the Government; or
(v) has, in the opinion of the Central Government, such financial or other inte
(1) The governing body of the National Authority shall-
(i) formulate broad policy framework for functioning of the National Authority and State Authorities as may be notified by the Central Government;
(ii) approve the annual report and audited accounts of the National Authority;
(iii) review reports on decision taken by executive committee and monitoring group of the National Authority including investment decisions;
(iv) approve the proposal for the schemes specified in sub-clause (iii) of clause (b) of section 5;
(v) approve the proposals for creation of posts in the National Authority, subject to prior permission of the Central Government;
(vi) provide a m
(1) The executive committee of the National Authority shall-
(i) approve within three months from the date of receipt, annual plan of operations of State Authorities, with such amendments as it deems fit and proper;
(ii) formulate proposals for schemes specified in sub-clause (iii) of clause (b) of section 5;
(iii) execute schemes specified in sub-clause (iii) of clause (b) of section 5;
(iv) deploy staff on contract or on deputation basis to the posts in the National Authority;
(v) formulate proposals for creation of posts in the National Authority at the
level of Assistant Inspector General of Forests and other officers;
(1) The monitoring group shall-
(i) evolve independent system for concurrent monitoring and evaluation of the works implemented in the States and Union territories utilising the funds released by the National Authority and State Authorities to ensure effective and proper utilisation of funds by utilising the services of the regional offices, of the Central Government in the Ministry of Environment, Forest and Climate Change:
Provided that the Central Government may also undertake third party monitoring and evaluation of the works implemented in the States and Union territories utilizing the funds released by the National Authority and State Authorities through individual and institutional experts including remote sensing agencies;
(ii) inspect and undertake financial audit of works executed by
(1) The governing body of a State Authority shall-
(i) lay down the broad policy framework for the functioning of such State Authority within the overall framework notified by the Central Government on the recommendations of the National Authority;
(ii) review the working of the State Authority from time to time.
(2) The governing body of a State Authority shall meet at least once in six months.
(3) The governing body, steering committee and executive committee of a State Authority shall meet at such places and shall observe such rules and procedures in regards to transaction of business at its meeting, including the quorum thereat, as may be prescribed.
(1) The steering committee of a State Authority shall-
(i) scrutinise and approve with such amendments as it may deems fit and proper
the annual plan of operations prepared by the executive committee of such State Authority and send the same to the executive committee of the National Authority for final approval;
(ii) monitor the progress of the utilisation of funds released from the State Fund;
(iii) review reports on decision taken by executive committee including investment decisions;
(iv) approve, subject to prior concurrence of the State Government, proposals formulated by the executive committee for creation of posts in the State Authority;
(v) approve an
(1) The executive committee of a State Authority shall-
(i) formulate and submit annual plan of operations to the steering committee of the State Authority for its concurrence;
(ii) undertake qualitative and quantitative supervision, monitoring and evaluation of the works being implemented from amounts available in the State Fund;
(iii) invest surplus amounts available in the State Fund of such State;
(iv) maintain books of account and other records;
(v) submit reports to the steering committee of the State Authority;
(vi) prepare annual report of the State Authority;
(vii) deploy staff on contractual basis or on dep
(1) The National Authority shall prepare its budget for the next financial year, showing the estimated receipts and expenditure of the National Authority and forward the same to the Central Government, in such form and at such time in each financial year as may be prescribed.
(2) The National Authority, shall adopt financial regulation and procedures, in particular the procedure for drawing up and implementing the budget of the National Authority as may be prescribed.
The National Authority may invest its funds, including any reserve fund, in the securities of the Central Government and in scheduled banks in such manner as may be prescribed:
Provided that the grants received from the Central Government shall not be invested and shall be utilised for the purposes and in the manner attached to it.
(1) The National Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the National Authority shall be audited by the Comptroller and Auditor-General of India at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the National Authority to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General and any other person appointed by him in connection with the audit of the accounts of the National Authority shall have the same right and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the G
(1) The National Authority shall prepare, its annual report, giving a full account of its activities during the previous financial year and forward a copy thereof to the Central Government, in such form and at such time, for each financial year, as may be prescribed.
(2) The annual report shall, inter-alia, provide for-
(i) the summary of monitoring and evaluation of activities undertaken from amounts released from the National Fund and State Funds during the year;
(ii) the summary of specific schemes specified in sub-clause (iii) of clause (b) of section 5 executed during the year;
(iii) the amount of money received and expended.
The Central Government shall cause the annual report and audit report together with a memorandum of action taken on the recommendations contained therein to be laid as soon as may be after the reports are received before each House of Parliament.
(1) Each State Authority shall prepare its budget for the next financial year, showing the estimated receipts and expenditure of the State Authority and forward the same to the State Government, in such form and at such time, in each financial year, as may be prescribed.
(2) Each State Authority shall adopt financial regulation and procedures, in particular the procedure for drawing up and implementing the budget of the State Authority as may be prescribed.
State Authority may invest funds available in the State Fund of such State in the securities of the Central Government and in scheduled banks in such manner as may be prescribed:
Provided that the grants received from the State Government shall not be invested and shall be utilised for the purpose and in the manner prescribed.
(1) Each State Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of each State Authority shall be audited by the Comptroller and Auditor-General at such intervals as may be specified by him and any expenditure incurred in connection with such audit shall be payable by the State Authority to the Comptroller and Auditor-General.
(3) The Comptroller and Auditor-General and any other person appointed by him in connection with the audit of the accounts of the State Authority shall have the same right and privileges and authority in connection with such audit as the Comptroller and Auditor-General generally has in connection with the audit of the Government accounts
(1) Each State Authority shall prepare its annual report, giving a full account of its activities during the previous financial year and forward a copy thereof to the concerned State Government, in such form and at such time, for each financial year, as may be prescribed.
(2) The annual report of a State Authority shall, inter-alia, provide for-
(i) the number and location of each reforestation, afforestation and conservation activity subject to the requirement of this section;
(ii) the amount and location of lands in hectares, cleared, conserved and planted in connection with the activity; and
(iii) the amount of afforestation money collected and expended.
The State Government shall cause the annual report and the audit report together with a memorandum of action taken on the recommendations contained therein to be laid as soon as may be after the reports are received before each House of the State Legislature:
Provided that in case of a Union territory having no legislature, the Central Government shall cause the annual report and the audit report together with a memorandum of action taken on the recommendations contained therein to be laid as so on as may be after the reports are received before each House of the Parliament.
(1) The Central Government in consultation with the State Governments may, after previous publication, 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 management of the National Fund by the National Authority under sub-section (2) of section 3;
(b) the management of State Fund by the State Authorities under sub-section (2) of section 4;
(c) the manner of using the money for purposes specified in clause (b) of section 6;
(d) the manner of utilising the money for purposes specified in clause (c) of section 6;
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(1) On and from the date of constitution of the National Authority-
(i) all the assets and liabilities of the ad hoc Authority shall stand transferred to, and vested in, the National Authority;
Explanation.-The assets of the ad hoc Authority shall be deemed to include all rights and powers, all properties, whether movable or immovable, including in particular, cash balances, deposits, and all other interests and rights in, or arising of, such properties as may be in the possession of the ad hoc Authority and all books of account and other documents relating to the same, and liabilities shall include all debts, liabilities and obligations of whatever kind;
(ii) without prejudice to the provisions of clause (i), all debts, obligations and liabilities incurred, all contracts entered into and all
(1) Notwithstanding anything contained in any judgment, decree or order of any court, the amount credited to the National Fund shall be deemed to be credited and shall always be deemed to have been credited to the public account of India within the meaning of articles 266 and 283 of the Constitution, and it shall be regulated by law made by Parliament in this behalf.
(2) Notwithstanding anything contained in any judgment or order of any court, all the monies collected by the State Governments and the Union territory Administrations which has been placed under the ad hoc Authority and deposited in the nationalised banks and the interest accrued thereon shall stand transferred to the National Fund.
(3) Notwithstanding anything contained in any judgment or any order of any court, the amount credited to the State Fund shall be deemed to be c
(1) The Central Government may, if it finds necessary or expedient in the public interest, issue such policy directives to the National Authority or any State Authority, in writing and such policy directives shall be binding upon the National Authority or the State Authority, as the case may be.
(2) The decision of the Central Government, whether a question is one of policy or not, shall be final.
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