An Act to provide for the regulation of supply and purchase of sugarcane required for use in sugar factories. and khandasari units and for matters connected therewith. Be it enacted by the Legislature of the State of Andhra Pradesh in the Twelfth Year of the Republic of India, as follows :--

Read full Act

S.1 Short title, extent and commencement

Short title, extent and commencement :- (1) This Act may be called the Andhra Pradesh Sugarcane (Regulation of Supply and Purchase) Act, 1961.

(2) It extends to the whole of the State of Andhra Pradesh.

(3) It shall come into force on such date as the State Government may, by notification in the Andhra Pradesh Gazette, appoint and they may appoint different dates for different areas and for different provisions of this Act.

S.2 Definitions

Definitions :- In this Act, unless the context otherwise requires,--

(a) 'bel' means a unit engaged or ordinarily engaged in the manufacture of rab and capable of handling not less than five metric tonnes of sugarcane per day for that purpose;

(aa) 'cane' means sugarcane intended for use in a factory or a khandasari unit and includes the sugarcane intended for manufacturing rab or gur;

(b) 'Cane Commissioner' means the officer appointed to be the Cane Commissioner under Section 9;

(c) 'cane grower' means a person who cultivates cane, whether by himself or by his own servants or by hired labour or by members of his famil

S.3 Constitution of the committee

Constitution of the committee :- (1) As soon as may be after the commencement of this Act, the Government shall, by notification, constitute a committee for the State to be called the Andhra Pradesh Sugarcane Advisory Committee.

(2) The committee shall consist of the following members, namely :-

* [(a) the Ministers in-charge of Sugar, Agriculture and Industries];

(b) the Heads of Departments of Agriculture, Industries and co-operation,

(bb) the Director of Sugars Andhra Pradesh and the Managing Director of the Nizam Sugar Factory;

Functions of the committee :- The Committee shall advise the Government on the following matters, namely :-

(a) the regulation of supply and purchase of cane for factories and khandasari units;

(b) the varieties of cane which are suitable or unsuitable for use in factories and khandasari units;

(c) the maintenance of healthy relations between occupiers of factories, owners of Khandasari units, Cane Growers, Cane Growers Co-operative Societies and Councils;

(d) such other matters as may be prescribed;

S.5 Constitution of Council

Constitution of Council :- (1) For each factory zone, the Cane Commissioner shall, by notification, constitute a Cane Development Council which shall be a body corporate by the name of the factory zone for which it is constituted, having perpetual succession and a common seal with power to acquire, hold and dispose of property and to enter into contracts, and may by its corporate name sue and be sued:-

Provided that the Cane Commissioner may with the approval of the Government constitute a council for an area which is larger or smaller than a particular factory zone.

(2) The council shall consist of the following members, namely :-

(a) a Chairman nominated

S.6 Functions of the council

Functions of the council :- (1) The functions of the council shall be--

(a) to consider and approve the programme of development for the factory zone with the funds at the disposal of the Council;

(b) to devise ways and means for the execution of the development plan in all its essentials such as cane varieties (including ratoons), rotation, cane seed, sowing programme, fertilizers and manures;

(c) to recommend to the Zilla Parishad, the municipality concerned or the Public Works Department (Roads and Buildings) as the case may be, the undertaking of the construction and improvement of roads leading to sugarcane areas in the factory zone from out of the

S.7 Casual Vacancy in the council

Casual Vacancy in the council:- A casual vacancy in the Council shall be filled up as far as may be, in the manner provided in sub-section (2) of Section 5 for the unexpired term of the member whose place has fallen vacant,

S.8 Council Fund

Council Fund:- (1) There shall be a fund at the disposal of the Council to meet the charges in connection with the performance of its functions under this Act.

(2) The fund of the council shall consist of--

(a) grants, if any, made by the Central Government or the State Government.

(b) contributions made by the factories, cane growers and cane growers' Co-operative societies at such rates as may be prescribed.

(c) any other sums which the Government may require to be credited to it.

S.9 Appointment of Cane Commissioner

Appointment of Cane Commissioner :- (1) The Director of Agriculture shall ex-officio be the Cane Commissioner for the purposes of this Act provided that the Government may at any time appoint any other officer or person to be the Cane Commissioner.

(2) The Cane Commissioner shall exercise and perform the powers and functions conferred or imposed upon him by or under this Act.

S.10 Appointment of Deputy Cane Commissioner

Appointment of Deputy Cane Commissioner :- (1) The Government may appoint an officer with experience in cane to be the Deputy Cane Commissioner for the purposes of this Act.

(2) A Deputy Cane Commissioner shall exercise such powers and discharge such functions of the Cane Commissioner as the Government may direct or as the Cane Commissioner may delegate to him.

S.11 Inspectors

Inspectors :- (1) The Government or any authority or officer empowered by them may for the purposes of this Act, appoint those persons or officers of the Government who in the opinion of the Government or the authority or officer so empowered possess knowledge and experience in cane to be Inspectors within such local limits as may be assigned to them.

(2)The Inspectors shall perform the functions and exercise the powers imposed or conferred upon them by or under this Act.

S.12 Estimate of cane required by a factory and fixation of minimum quantity of cane to be crushed

Estimate of cane required by a factory and fixation of minimum quantity of cane to be crushed :- (1) The Cane Commissioner may, for the purposes of Section 15, by order, require the occupier of any factory to furnish to him in the manner and on the date specified in the order an estimate of the quantity of cane required by the factory during any crushing season.

(2) The Cane Commissioner shall examine every such estimate in consultation with the council concerned and shall publish the same with such modifications, if any, as he may make. He shall also make an order fixing in the prescribed manner the minimum quantity of cane to be crushed by the factory during the season.

S.13 Register of cane-growers and cane growers Co-operative societies

Register of cane-growers and cane growers' Co-operative societies :- (1) The occupier of a factory shall maintain in the prescribed form a register of all cane growers who sell cane to that factory in accordance with the provisions of Section 15 and sub-section (1-A), of Section 16. A copy of the entries made in the register shall be forwarded to the Council and to the Sugarcane Inspector, not later than the 30th September of each year.

(2) The Government may make rules to provide for--

(a) the correction of entries made in the register and the addition of new entries, if necessary,

(b) The supply of copies of entries made in the register on payment of the

S.14 Power of survey, etc

Power of survey, etc. :- (1) If, in the opinion of the Cane Commissioner, it is necessary for the purposes of Section 15 that a survey of the area from which a cane grower supplies cane to a factory should be made, he may by order provide for a survey of such area to be made in such manner and by such officers as may be prescribed.

(2) (a) The cost of survey under sub-section (1) shall be recovered in such proportion as may be prescribed from--

(i) the occupier of the factory;

(ii) the cane grower;

(iii) the Government

(b) Any amount due from the occupier of a factory or a cane growe

S.15 Declaration of factory zone

Declaration of factory zone :- The Cane Commissioner may, after consulting the factory and the Council concerned, by order declare any area as the factory zone for the purposes of supply of cane to the factory during five crushing seasons immediately following the date of the order and may, likewise at any time, cancel such order or alter the boundaries of the area so declared:

Provided that the villages from which cane was being supplied to the factory during the five crushing seasons ending with the crushing season immediately preceding the date of the order shall be included in the factory zone of that factory, the order of priority in the selection of villages being based on the maximum number of years of supply by each such

S.16 Regulation of supply and purchase of cane in factory zone

Regulation of supply and purchase of cane in factory zone :- (1) Where an area has been declared as the factory zone for a factory, the occupier of such factory shall, save as otherwise provided in sub-section (1-A) purchase such quantity of cane grown in that area and offered for sale to the factory as may be determined by the Cane Commissioner in accordance with the provisions of the Schedule.

(1-A) The occupier of a Co-operative factory shall, notwithstanding anything to the contrary in the Schedule and notwithstanding that an area has been declared as the factory zone for the said factory, purchase in accordance with the bye-laws of the factory, such quantity of cane as may be required by the factory and offered for sale by t

S.17 Appeal

Appeal:- An appeal shall lie to the Government against any order passed by the Cane Commissioner under this Act.

S.18 Revision

Revision :- The Government may, at any time either suo motu or on application made to them, call for and examine the records relating to any decision or order passed or proceeding taken by any authority or officer subordinate to them under this Act for the purpose of satisfying themselves as to the legality or propriety of such decision or order or as to the regularity of such proceeding and pass such order in reference thereto as they think fit:-

Provided that the Government shall not pass any order prejudicial to any party unless he has had a reasonable opportunity of making his representations.

S.19 Payment of cane price

Payment of cane price :- (1) The occupier of a factory or owner of a khandasari unit shall make suitable provision to the satisfaction of the Cane Commissioner for the payment of the price of cane supplied to the factory.

(2) Upon the delivery of cane, the occupier of a factory or owner of a khandasari unit shall be liable to pay within fourteen days from the date of such delivery the price of cane so supplied.

(2-A) The price of the cane remaining unpaid on the expiration of the period specified in sub-section (2) shall carry interest at fifteen per cent per annum from the date of delivery of cane and it shall be recovered as an arrear of land revenue.

(3)

S.20 Power to declare varieties of cane as unsuitable for use in factories or the Khandasari units

Power to declare varieties of cane as unsuitable for use in factories or the Khandasari units :- (1) The Cane Commissioner may, by order, declare that--

(a) cane of any variety grown in any area specified in such order is unsuitable for use in all or any of the factories or the Khandasari units situated in the said area;

(b) ratoon cane of any variety grown in any area specified in such order is unsuitable for use in all or any of the factories or Khandasari units situated in the said area;

(c) seed cane of any variety is unsuitable for distribution to cultivators in any area specified in such order.

(2) The order under

S.21 Levy of tax on purchase of cane

Levy of tax on purchase of cane :- (1) The Government may, by notification, levy a tax at a rate not exceeding * [one hundred rupees] per metric tonne on the purchase of cane required for use, consumption or sale in a factory or a khandasari unit.

(2) The Government may, by notification, remit in whole or in part such tax in respect of cane used or intended to be used in a factory or Khandasari units for any purpose specified in such notification.

(3) Notwithstanding anything in any other law for the time being in force, any sum due to the Government towards the purchase tax levied under this section shall be a first charge on the sugar

S.21-A Finality of levy of tax

Finality of levy of tax :- (1) Any occupier of a factory or owner of a khandasari unit, who is aggrieved by the levy of tax made in pursuance of Section 21 may, within thirty days of the communication to him of the order levying the tax, appeal to such authority as the Government may, by notification, appoint in this behalf, for the cancellation or modification of the levy of tax and on such appeal, the said authority may cancel or modify the tax and order the refund to such occupier or owner of the whole or part as the case may be, of the amount paid thereunder :

Provided that the authority so appointed shall not be inferior in rank to the authority by which the tax was levied.

(2) Where t

S.22 Determination of occupier of factory or owner of Khandasari unit for the purposes of this Act

Determination of occupier of factory or owner of Khandasari unit for the purposes of this Act :- (1) Where the occupier of a factory or the owner of Khandasari Unit is a firm or other association of individuals, any one or more of the partners or members thereof may be prosecuted and punished under this Act for any offence for which the occupier of the factory or owner of the Khandasari unit is punishable:-

Provided that the firm or association may give notice to the Collector and the Cane Commissioner that it has nominated one of its partners or members to be occupier of the factory or owner of the Khandasari unit for the purposes of this Act, and such individual shall be deemed to be the occupier of the factory or owner of the

S.23 Penalties

Penalties :- (1) If any occupier of a factory or owner of a Khandasari unit contravenes the provisions of--

(a) Section 12;

(b) sub-section (1) of Section 13; or

(c) any rule made under sub-section (2) of Section 13;

(d) sub-section (1) of Section 16;

(e) sub-sections (2-A), (4) and (5) of Section 19;

(f) sub-section (3) of Section 21;

he shall be punishable with fine which may extend to rupees five thousand and in the case of a continuing contravention, with a further fine not exceeding rupees one thousand for each day during

S.23-A Confiscation of vehicles and weigh bridges

Confiscation of vehicles and weigh bridges :- Where in any case tried by the Courts the Magistrate decides that the vehicle or weigh bridge is liable to confiscation, he shall order confiscation of such vehicle or weigh bridge:

Provided that if the vehicle or weigh bridge is not the property of the offender, it shall not be confiscated if the owner thereof had no reason to believe that such offence was being or was likely to be committed.

S.24 Institution of proceedings

Institution of proceedings :- (1) No court shall take cognizance of an offence punishable under this Act or any rule or order made thereunder except upon a complaint in writing made by the Cane Commissioner or any authority or officer authorised by him in this behalf.

(2) No court inferior to the court of the magistrate of the first class shall take cognizance of, or try, an offence under this Act or any rule or order made thereunder.

S.25 Composition of offences

Composition of offences :- On the application of a person accused of an offence under this Act or any rule or order made thereunder, the Cane Commissioner or any authority or officer authorised by him in this behalf may, at any stage, compound such offence by levying composition fee not exceeding rupees five thousand.

S.26 Special powers of Magistrates

Special powers of Magistrates :- Notwithstanding anything in Section 32 of the Code of Criminal Procedure, 1898 (Central Act 5 of 1898), it shall be lawful for a Magistrate of the first class specially empowered by the Government on this behalf and trying any offence under this Act or any rule or order made thereunder to pass sentence of fine not exceeding five thousand rupees on any person convicted for such offence.

S.27 Protection of acts done in good faith

Protection of acts done in good faith :- (1) No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done in pursuance of any provision of this Act or any rule or order made thereunder.

(2) No suit or other legal proceedings shall lie against the Government for any damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of any provision of this Act or of any rule or order made thereunder.

S.28 Power to make rules

Power to make rules :- (1) The Government may by notification, make rules to carry out the purposes of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for--

(a) the constitution of the Committee and the council;

(b) the dissolution and reconstitution of the Committee and the Council and other matters incidental thereto;

(c) the procedure to be followed for removal of members of the Council;

(d) the procedure to be followed by the Committee and the Council for the conduct of business at meetings;

(e)

S.29 Repeal and savings

Repeal and savings :- (1) The Andhra Pradesh (Andhra Area) Sugar Factories Control Act, 1949 (Act XX of 1949), The Andhra Pradesh (Telangana Area) Sugar Cane Cess Act, 1953 (Act IX of 1953), and the Madras Sugar Factories Control Act, 1949 (Madras Act XX of 1949) as in force in the territories specified in the First Schedule to the Andhra Pradesh and Madras (Alteration of Boundaries) Act, 1959 (Central Act 56 of 1959), are hereby repealed:

Provided that such repeal shall not affect the previous operation of the Acts so repealed or any right, title, obligation or liability already acquired, accrued or incurred thereunder and subject thereto anything done or any action taken in exercise of any power conferred by or under the Acts

S.30 Validation

Validation :- Any order made by the Government before the commencement of this Act remitting the cess leviable under the provisions of the Andhra Pradesh (Telangana Area) Sugarcane Cess Act, 1953 (Act IX of 1953), shall for all purposes, be deemed to be valid as if such order had been made under sub-section (2) of Section 21.

S.31 Power to remove difficulties

Power to remove difficulties :- If any difficulty arises in giving effect to the provisions of this Act in consequence of the transition to the said provisions from the provisions of the Acts so repealed, the Government may, by order published in the Andrha Pradesh Gazette, give such directions not inconsistent with the purposes of this Act, or make such adaptations or modifications of this Act not affecting the substance as appear to them to be necessary or expedient for removing the difficulty.