#THE RUBBER ACT, 1947 
_______ 

##ARRANGEMENT OF SECTIONS 
_________ 

SECTIONS 

1. Short title and extent. 
2. Declaration as to expediency of Union control. 
3. Definitions. 
4. Constitution of the Board. 
5. Vacancies in the Board. 
6. Salary and allowances of Chairman. 
6A. Executive Officers of the Board. 
7. Committees of the Board. 
8. Functions of the Board. 
8A. Power of the Board to import rubber for sale, or to purchase rubber in the internal market. 
8B. Consultation with the Board. 
9. Funds of the Board. 
9A. General fund. 
9B. Pool fund. 
10. Registration. 
11. Power to prohibit or control imports and exports of rubber. 
12. Imposition of new rubber cess. 
13. Power to fix maximum and minimum prices for sale of rubber. 
14. Licensing of transactions in rubber. 
15. Provisions regarding licences under section 14. 
16. Restriction on possession of rubber. 
17. Licences for planting or replanting. 
18. Reports to be submitted by licencees. 
19. Fees for special licences. 
20. Submission of returns and maintenance of accounts. 
21. Inspection of land and premises. 
22. Control by the Central Government. 
22A. Power of Central Government to issue directions to Board. 
23. Appeal. 
24. Accounts of the Board. 
24A. Power to delegate. 
25. Power of Central Government to make rules. 
25A. Power to make regulations. 
26. Penalties. 
26A. Compounding of offences. 
27. Procedure for prosecutions. 
27A. Jurisdiction of Courts. 
28. Bar of legal proceedings. 
29. [Omitted.] 



#THE RUBBER ACT, 1947 

##ACT NO. 24 OF 1947

[18th April, 1947.] 

An Act to provide for the development under the control of the Union of the rubber industry. 

  WHEREAS  it  is  expedient  to  provide  for  the  development under the control of the Union of  the  rubber 
industry ; 

It is hereby enacted as follows:— 

1. **Short title and extent.**—(1) This Act may be called the Rubber Act, 1947. 

(2) It extends to the whole of India except the State of Jammu and Kashmir[^1]. 

2. **Declaration as to expediency of Union control.**—It is hereby declared that it is expedient in the 
public interest that the Union should take under its control the rubber industry. 

3. **Definitions.**—In this Act, unless there is anything repugnant in the subject or context,— 

  (a) “Board” means the Rubber Board constituted under this Act; 

  (b) “dealer”, means any person who deals in rubber, whether wholesale or retail, or holds stocks 
of rubber, and includes the representative or agent of a dealer; 

  (c) “estate”  means  any  area  administered  as  one  unit  which  contains  land  planted  with  rubber 
plants; 

  (cc) “Executive Director” means the Executive Director appointed under this Act; 

  (d) “export” and “import” mean respectively taking out of, and bringing into India by sea, land 
or air; 

  (dd) “India” means the territory of India excluding the State of Jammu and Kashmir[^1]; 

  (e) “manufacturer” means any person engaged in the manufacture of any article in the making of 
which rubber is used; 

  (f) “owner”  includes  any  agent  of  an  owner  and  a  mortgagee  in  possession  and  a  lessee  of  an 
estate; 

  (g) “prescribed” means prescribed by rules made under this Act; 

  (ga) “processor” means a person who undertakes the processing of rubber; 

  (h) “rubber” means— 

     (i) crude rubber, that is to say, rubber prepared from the leaves, bark or latex of any rubber 
plant; 



[^1].  Vide Notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu 
and Kashmir and the Union territory of Ladakh. 



     (ii) the latex of any rubber plant whether fluid or coagulated, in any stage of the treatment to 
which it is subjected during the process of conversion into rubber; 

     (iii) latex (dry rubber content) in any state of concentration, 

and includes scrap rubber, sheet rubber, rubber in powder and all forms and varieties of crepe rubber, but 
does not include rubber contained in any manufactured article; 

  (i) “rubber plant” includes plants, trees, shrubs or vines of any of the following:— 

     (i) Hevea Braziliensis (Para Rubber), 

     (ii) Manihot Glaziovii (Ceara Rubber), 

     (iii) Castillio elastica, 

     (iv) Ficus elastica (Rambong), and 

     (v) any other plant which the Board may, by notification in the Gazette of India, declare to be 
a rubber plant for the purposes of this Act; 

  (j) “Rubber  Production  Commissioner”  means  the  Rubber  Production  Commissioner  appointed 
under this Act; 

  (k) “small grower” means an owner whose estate does not exceed [^2][fifty acres] in area. 

4. **Constitution of the Board.**—(1)  As  soon  as  may  be  after  the  commencement  of  this  Act,  the 
Central Government shall, by notification in the Official Gazette, constitute for the purposes of this Act a 
Board to be called the Rubber Board. 

(2) The  Board  shall  be  a  body corporate by the name of Rubber  Board  having  perpetual 
succession and a common  seal with power to acquire and hold property, both movable and immovable 
and to contract, and shall by the said name sue and be sued. 

(3) The Board shall consist of— 

  (a) a Chairman to be appointed by the Central Government; 

  (b) two members to represent the State of Tamil Nadu, one of whom shall be a person 
representing rubber producing interests; 

  (c) eight members to represent the State of Kerala, six of whom shall be persons representing the 
rubber producing interests, three of such six being persons representing the small growers; 

  (d) ten members to be nominated by the Central Government, of whom two shall represent the 
manufacturers and four labours; 

[^7][(da) three members to be nominated by the Central Government of whom two shall be from the 
Department of Commerce and one from the Department of Agriculture and Co-operation;] 

  (e) three members of Parliament of whom two shall be elected by the House of the People and 
one by the Council of States; and 

  (ee) the Executive Director, ex officio; and 

  (f) the Rubber Production Commissioner, ex officio. 



[^2]. The words in brackets shall stand substituted (date to be notified) by Act 4 of 2010, s. 2, for “ten hectares”. 
[^7].  The words in brackets shall stand inserted (date to be notified) by Act 4 of 2010, s. 3. 


 
(4) The persons to represent the States of Tamil Nadu and Kerala shall be elected or nominated 
as may be prescribed. 

(5) Any officer of the Central Government when deputed by that Government in this behalf shall have 
the  right  to  attend  the  meetings  of  the  Board  and  take  part  in  the  proceedings  thereof  but  shall  not  be 
entitled to vote. 

(6) The Board shall elect from among its members a Vice-Chairman who shall exercise such of the 
powers, and perform such of the functions of the Chairman as may be prescribed or as may be delegated 
to him by the Chairman. 

(7) The members of the Board shall receive from the Board such allowances as may be prescribed. 

(8) It  is  hereby  declared  that  the  office  of  member  of  the  Board  shall  not  disqualify  its  holder  for 
being chosen as, or for being, a member of either House of Parliament. 

5. **Vacancies in the Board.**—(1) If any authority or body fails to make within a reasonable time any 
nomination which it is entitled to make under section 4, the Central Government may itself nominate a 
member to fill the vacancy. 

(2) Where a member of the Board dies, resigns or is removed, or ceases to reside in India, or becomes 
incapable  of  acting,  the  Central  Government  shall,  on  the  recommendation  of  the  authority  or  body 
entitled to  nominate  the  member  under section  4,  or where  such recommendation  is  not  made  within a 
reasonable time, then on its own initiative, appoint a person to fill the vacancy. 

(3) No  act  done  by  the  Board  shall  be  questioned  on  the  ground  merely  of  the  existence  of  any 
vacancy in, or defect in the constitution of the Board. 

6. **Salary and allowances of Chairman.**—The Chairman shall be entitled  to  such  salary  and 
allowances and be governed by such conditions of service in respect of leave, pension, provident fund and 
other matters as may from time to time be fixed by the Central Government and a person appointed as 
the  part-time  Chairman  shall  be  entitled  to  such  honorarium  and  allowances,  if  any,  and  such  other 
conditions of service as may from time to time be fixed by the Central Government. 

6A. **Executive Officers of the Board.**— (1) The  Central  Government  may  appoint  an  Executive 
Director  to  exercise  such  powers  and  perform  such  duties  under  the  direction  of  the  Board  as  may  be 
prescribed or as may be delegated to him by the Chairman. 

(1A) The  Central  Government  shall appoint  a  Rubber  Production  Commissioner to exercise such 
powers and perform such duties under the direction of the Board as may be prescribed. 

(2) The  Central  Government  shall  appoint  a  Secretary  to  the  Board  to  exercise  such  powers  and 
perform such duties under the direction of the Board as may be prescribed or as may be delegated to him 
by the Chairman. 

(3) The Rubber Production Commissioner and the Secretary to the Board shall be entitled to such 
salaries and allowances and be governed by such conditions of service regarding leave, pension, provident 
fund and other matters as may be fixed by the Central Government. 

(4) The Chairman, the Rubber Production Commissioner and the Secretary shall not undertake any 
work  unconnected  with  their  duties  under  this  Act  except  with  the  permission  of  the  Central 
Government. 

7. **Committees of the Board.**—

(2) The Board may appoint such Committees as may be necessary for the efficient performance 
of its duties and functions under this Act. 

(3) The  Board  shall  have  the  power  to  co-opt  as  members  of  any  Committee  appointed  under 
sub-section (2) such number of persons who are not members of the Board, as it may think fit. 

(4) The  Board  may  appoint  and  authorize  agents  to  discharge  on  its  behalf  any  of  its  functions  in 
relation to the marketing or storing of rubber. 

8. **Functions of the Board.**—(1) It shall be the duty of the Board to promote by such measures as it 
thinks fit the development of the rubber industry. 

(2) Without  prejudice  to  the  generality  of  the  foregoing  provision,  the  measures  referred  to  therein 
may provide for— 

  (a) undertaking, assisting or encouraging scientific, technological and economic research; 

  (b) training students in improved methods of planting, cultivation, manuring and spraying; 

  (c) the supply of technical advice to rubber growers; 

  (d) improving the marketing of rubber; 

[^5][(da)  improving  the  quality  of  rubber  and  implementing  the  standards  for  quality  marking, 
labeling and packing for the rubber produced or processed in, imported into or exported from, India;] 

  (e) the collection of statistics from owners of estates, dealers, and manufacturers; 

  (f) securing  better  working  conditions  and  the  provisions  and  improvement  of  amenities  and 
incentives for workers; 

  (g) carrying out any other duties which may be vested in the Board under rules made under this 
Act. 

(3) It shall also be the duty of the Board— 

  (a) to  advise  the  Central  Government  on  all  matters  relating  to  the  development  of  the  rubber 
industry, including the import and export of rubber; 

  (b) to advice the Central Government with regard to participation in any international Conference 
or scheme relating to rubber; 

  (c) to  submit  to  the  Central  Government  and  such  other  authorities  as  may  be  prescribed 
half-yearly reports on its activities and the working of this Act; 

  (d) to prepare and furnish such other reports relating to the rubber industry as may be required by 
the Central Government from time to time. 

8A. **Power  of  the  Board  to  import  rubber  for  sale,  or  to  purchase  rubber,  in  the  internal 
market.**—It  shall  be  lawful  for  the  Board  with  the  previous  approval  of  the  Central  Government  to 



[^5]. The words in brackets shall stand inserted (date to be notified) by Act 4 of 2010, s. 4. 



import  rubber  for  sale,  or  to  purchase  rubber,  in  the  internal  market  at  such  prices  as  the  Central 
Government may fix. 

8B. **Consultation with the Board.**—Before taking any action touching the affairs of the Board under 
this Act, the Central Government shall ordinarily consult the Board:] 

  Provided that no action taken by the Central Government shall be invalid or called in question merely 
on the ground that the action was taken without such consultation.] 



[^1][9. **Funds of the Board.**—(1) The  Indian  Rubber Production  Board  constituted  under the  Rubber 
Control and Production Order, 1946, is hereby dissolved, and all funds and other property vested in, and 
all liabilities of, that Board shall respectively vest in, and be liabilities of, the Board constituted under this 
Act. 

(2) The Board shall maintain two funds, a general fund and a pool fund. 

9A. **General fund.**—(1) To the general fund shall be credited— 

  (a) all sums forming the funds of the Board immediately before the commencement of the Rubber 
(Production and Marketing) Amendment Act, 1954 (54 of 1954); 

  (b) all amounts paid to the Board by the Central Government under sub-section (7) of section 12. 

(2) The general fund shall be applied— 

  (a) to meet the expenses of the Board; 

  (b) to meet the costs of the measures referred to in section 8; 

  (c) to meet the expenditure incurred in the performance of its functions under this Act or under 
rules made thereunder; and 

  (d) for  making  such  grants  to rubber estates  or for  meeting  the  cost  of such  other  assistance to 
rubber estates as the Board may think necessary for the development of such estates. 

9B. **Pool fund.**—(1) To the pool fund shall be credited— 

  (a) all sums realized by sales of rubber imported or purchased under section 8A; 





[^1]. Sections 9, 9A and 9B shall stand substituted (date to be notified) by Act 4 of 2010, s. 5 to read us under: 

“[9. **Rubber Development Fund.**—(1) There shall be a fund to be called the Rubber Development Fund and there shall be 
credited,— 

  (a) all  sums  forming  the  funds  of  the  Board  immediately  before  the  commencement  of  the  Rubber  (Amendment) 
Act, 2009; 

  (b) the proceeds of cess paid to the Board by the Central Government under sub-section (7) of section 12; 

  (c) any sum of money that may be paid to the Board by way of grants or loans by the Central Government; 

  (d) internal and extra budgetary resources of the Board; 

  (e) all moneys received and collected under section 26A; and 

  (f) any other sum that may be levied and collected under this Act and the rules made thereunder. 

(2) The Rubber Development Fund shall be applied— 

  (a) to meet the expenses of the Board; 

  (b) to meet the cost of the measures referred to in section 8; 

  (c) to meet the expenditure incurred in the performance of its functions under this Act or the rules made thereunder; 

  (d) to meet the expenditure for rehabilitation of small growers; and 

  (e) for  making  such  grants  to  rubber  estates  or  for  meeting  the  cost  of  such  other  assistance  to  rubber  estates  as  the 
Board may think necessary for the development of such estates.”. 


 


  (b) any other sum which the Board may, with the previous approval of the Central Government, 
transfer from the general fund to the pool fund. 

(2) The pool fund shall be applied only to the rehabilitation of small growers in such manner as may 
be prescribed.] 

[^1][10. **Registration.**—(1) Every person owning land planted with rubber plants, whether such land is 
comprised  in  one  estate  or  in  more  than  one  estate  and  whether  it  is  situated  wholly  or  only  partly  in 
India, shall, before the expiry of one month from the date of commencement of this Act, apply to the 
Board to be registered as an owner in respect of each estate owned by him.] 

(2) A registration once made shall continue in force until it is cancelled by the Board. 

11. **Power to prohibit or control imports and exports of rubber.**—(1) The Central  Government 
may, by  order  published  in  the  Official  Gazette,  make  provision  for  prohibiting,  restricting  or 
otherwise controlling the import or export of rubber, either generally or in specified classes of cases. 

(2) All goods to which any order under sub-section (1) applies shall be deemed to be goods of which 
the  import  or  export  has  been  prohibited  or  restricted  under  section  19  of  the  Sea  Customs  Act,  1878 
(8  of  1878),  and  all  the  provisions  of  that  Act  shall  have  effect  accordingly,  except  that  section  183 
thereof shall have effect as if for the word “shall” therein the word “may” were substituted. 

(3) If any person contravenes any order made under sub-section (1) he shall, without prejudice to any 
confiscation  or  penalty  to  which  he  may  be  liable  under  the  provisions  of  the  Sea  Customs  Act,  1878 
(8 of 1978),, as applied by sub-section (2), be punishable with imprisonment for a term which may extend 
to one year or with fine or with both. 

12. **Imposition of new rubber cess.**—(1) With  effect from  such  date  as  the Central  Government 
may, by notification in the Official Gazette, appoint, there shall be levied as a cess for the purposes of this 
Act,  a  duty  of  excise  on  all  rubber  produced  in  India  at  such  rate,  not  exceeding two rupees per 
kilogram of rubber so produced, as the Central Government may fix. 

(2) The duty of excise levied under sub-section (1) shall be collected by the Board in accordance with 
rules made in this behalf either from the owner of the estate on which the rubber is produced or from the 
manufacturer by whom such rubber is used. 

  Provided that the Central Government may, if considered necessary in the public interest, by order 
for  reasons  to  be  recorded  in  writing,  exempt  or  reduce  the  duty  of  excise  on rubber  exported  on  such 
terms and conditions as it deems fit: 

  Provided  further  that  the  Central  Government  may,  by  notification  in  the  Official  Gazette,  specify 
zero paisa per kilogram as the rate of duty of excise on natural rubber produced in India and procured for 
export by the exporters of natural rubber for the period from the 1st April, 1961 to the 31st August, 2003.] 

(3) The owner or, as the case may be, the manufacturer shall pay to the Board the amount of the 
duty within one month from the date on which he receives a notice of demand therefor from the Board 
and, if he fails to do so, the duty may be recovered from the owner or the manufacturer, as the case may 
be, as an arrear of land revenue. 



[^1]. Section 10 shall stand omitted (date to be notified) by Act 4 of 2010, s. 6. 



(4) For the purpose of enabling the Board to assess the amount of the duty of excise levied under this 
section— 

  (a) the  Board  shall,  by  notification  in  the  Official  Gazette,  fix  a  period  in  respect  of  which 
assessments shall be made; and 

  (b) without prejudice to the provisions of section 20, every owner and every manufacturer shall 
furnish to the Board a return not later than fifteen days after the expiry of the period to which the 
return relates, stating,— 

     (i) in the case of an owner, the total quantity of rubber produced on the estate in each such 
period: 

     Provided that in respect of an estate situated only partly in India, the owner shall in the said 
return show separately the quantity of rubber produced within and outside India; 

     (ii) in the case of a manufacturer, the total quantity of rubber used by him in such period 
out of the rubber produced in India. 

(5) if any owner or manufacturer fails to furnish, within the time prescribed, the return referred to 
in sub-section (4) or furnishes a return which the Board has reason to believe is incorrect or defective, the 
Board may assess the amount of the duty of excise in such manner as may be prescribed and collect the 
cess from  the  owner,  exporter  or the  manufacturer,  as  the case  may  be,  after issuing  a  notice  and after 
making such enquiry as it considers necessary, with such rate of interest as fixed under sub-section (3): 

Provided that where for any reason, the Board finds that an owner, exporter or manufacturer, as the 
case  may  be,  has  paid  cess  in  excess  of  what  is  due  from  him,  it  shall  be  adjusted  against  the  future 
payment, if any, from him or shall be refunded to him. 

(6) Any person aggrieved by an assessment made under this section may, within three months of the 
service of the notice under sub-section (3), apply to the District Judge for the cancellation or modification 
of the assessment, and the District Judge shall, after giving the Board an opportunity of being heard, pass 
such order (which shall be final) as he thinks proper. 

(7) The proceeds of the duty of excise collected under this section reduced by the cost of collection as 
determined by the Central Government shall first be credited to the Consolidated Fund of India, and then 
be  paid  by  the  Central  Government  to  the  Board  for  being  utilised  for  the  purposes  of  this  Act,  if 
Parliament by appropriation made by law in this behalf so provides. 

13. **Power to fix maximum and minimum prices for sale of rubber.**—(1) The Central Government 
may, if it deems necessary, by order published in the official Gazette, fix the maximum price or 
the minimum price or the maximum and minimum prices to be charged, in the course of a business of any 
class specified in the order, for rubber of any description so specified. 

(2) Any  such  order  may  fix  different  maximum  or  minimum  prices  to  be  charged  in  the  course  of 
businesses of different classes for the same description of rubber. 

(3) If  any  person  buys  or  sells,  or  agrees  to  buy  or  sell,  rubber  at  a  price  which  is  more  than  the 
maximum price, or less than the minimum price, fixed under sub-section (1) in that behalf, he shall be 
punishable with imprisonment for a term which may extend to one year, or with fine, or with both. 

14. **Licensing of transactions in rubber.**—No  person  shall  sell  or  otherwise  dispose  of  and  no 
person shall buy or otherwise acquire, rubber except under and in accordance with the terms of a general 
or special licence issued by the Board:
 
15. **Provisions regarding licences under section 14.**—(1)  Every  general  licence  issued  under 
section 14 shall be published by the Board in the Gazette of India and in such newspapers as the Board 
may direct. 

(2) A special licence issued under section 14 shall be valid only for such period as may be specified 
therein: 

  Provided that the Board may from time to time extend the period of validity of any such licence. 

(3) The Board may at any time for reasons to be recorded by it in writing revoke a special licence 
granted under section 14, and on such revocation it shall be returned to the Board by the person to whom 
it was issued. 

(4) No application for a special licence made by a person who was carrying on business as a dealer or 
manufacturer immediately before the commencement of this Act shall be rejected by the Board except for 
special reasons to be recorded in writing. 

16. **Restriction on possession of rubber.**—(1)  No  person  not  being  the  owner  or  occupant  of  an 
estate or a person who has acquired rubber under a general or special licence issued by the Board under 
section 14 shall have any rubber in his possession. 

(2) Any Court trying a contravention of sub-section (1) may, without prejudice to the provisions of 
section  26,  direct  that any  rubber  in  respect of  which  the  Court  is  satisfied that such  contravention  has 
been committed shall be forfeited to Government. 

[^2][17. **Licences for planting or replanting.**—(1) No person shall plant or replant rubber except under 
and in accodance with the conditions of a special licence issued by the Board. 

(2) A  licence  issued  under  this  section  shall  specify  the  area  in  which  rubber  may  be  planted  or 
replanted and the period for which the licence shall be valid. 

(3) No licence issued under this section shall be transferable except with the land to which it relates.] 

[^3][18. **Reports to be submitted by licencees.**—(1) Every holder of a licence issued under section 17 
shall, at such times as the Board may require, furnish to it a report specifying the areas newly planted or 
replanted  during  the  period  to  which the  report  relates  and  containing  such  other  particulars as  may  be 
required by the Board. 

(2) The Board may revoke any licence issued under section 17, if it is satisfied that the licence was 
obtained by misrepresentation or fraud or if the licence contravenes any of the terms of the licence or if 
the licence fails to submit the report referred to in sub-section (1).] 

19. **Fees for special licences.**—The Board may levy such fees as may be prescribed for the issue and 
renewal of special licences under section 14, [^4][section 15 or section 17]. 




[^2]. Section 17 shall stand substituted (date to be notified) by Act 4 of 2010, s. 9 read as under: 

  “17. Implementation of standards for quality, marking, etc., for rubber.—(1) The Board shall implement the standards 
for  quality,  marking,  labelling  and  packing  for  various  marketable  forms  of  rubber,  for  the  rubber  produced  or  processed  in, 
imported into or exported from, India. 

  (2) Any officer of the Board authorised by the Chairman may at any reasonable time inspect the rubber sold or purchased by 
any  dealer  or  processor  at  any  factory  or  other  premises  of  a  dealer,  processor or  manufacturer  or  exporter  for  the  purpose  of 
ensuring the compliance of the standards under sub-section (1).”. 

[^3]. Section 18 shall stand omitted (date to be notified) by s. 10, ibid. 
[^4]. The words and figures shall stand substituted (date to be notified) by s. 11, ibid., to read as “or section 15” 



20. **Submission of returns and maintenance of accounts.**—Subject to such exceptions as may be 
prescribed, every owner, every manufacturer, and every holder of a special licence issued under section 
14 not being an owner or a manufacturer, shall— 

  (a) submit to the Board, such returns at such times, in such form, and containing such particulars, 
as may be prescribed; 

  (b) maintain true and correct accounts and other records pertaining to his estate or business, as the 
case may be, in such form as may be prescribed; 

  (c) permit any person authorized in this behalf by the Central Government or by the Board or 
any member of the Board authorized by the Chairman in writing or any officer of the Board to inspect 
the accounts and records referred to in clause (b). 

21. **Inspection of land and premises.**—Any  person  authorized  in  this  behalf  by  the  Central 
Government or by the Board or any member authorized by the Chairman in writing or [^3][any officer of the 
Board  may]  at  any  reasonable  time  inspect  any  place  of  business  of  a  dealer  or  any  factory  or  other 
premises of a manufacturer, for the purpose of verifying any statement or return submitted under this 
Act or for any other purposes of this Act. 

22. **Control by the Central Government.**—(1) All acts of the Board shall be subject to the control 
of the Central Government which may cancel, suspend or modify as it thinks fit any action taken by the 
Board. 

(2) The  records  of  the  Board  shall  be  open  to  inspection  at  all  reasonable  times  by  any  officer 
authorized in this behalf by the Central Government. 

22A. **Power of Central Government to issue directions to Board.**—(1) Without prejudice to the 
foregoing provisions of this Act, the Board shall, in the discharge of its functions and duties under this 
Act, be bound by such directions on questions of policy as the Central Government may give in writing to 
it from time to time: 

  Provided that the Board shall, as far as practicable, be given opportunity to express its views before 
any direction is given under this sub-section. 

(2) The decision of the Central Government whether a question is one of the policy or not shall be 
final. 

23. **Appeal.**—Any person aggrieved by an order of the Board refusing to issue or renew, or revoking, 
a special licence under the provisions of section 14, section 15 or section 17 may, within sixty days of the 
making  of  the  order  and  on  payment  of  the  prescribed  fee,  appeal  to  the  Central  Government,  and  the 
decision of the Central Government thereon, and subject only to such decision the order of the Board shall 
be final and shall not be called in question in any Court. 

24. **Accounts of the Board.**—(1) The Board shall keep such accounts, in such manner and in such 
form as may be prescribed, of all moneys received and expended by it. 

(2) The Board shall cause the accounts to be audited annually by auditors appointed by the Central 
Government,  and  the  auditors  shall  have  the  power  to  disallow  any  item  of  expenditure  which  in  their 
opinion has not been properly incurred under this Act. 

(3) The  Central  Government  may,  on  the  application  of  the  Board,  allow  any  item  of  expenditure 
disallowed by the auditors under sub-section (2). 



[^3]. The words in brackets shall stand substituted (date to be notified) by Act 4 of 2010, s. 12 to read as “any officer of the Board 
authorized by the Chairman may” 



[^1][24A. **Power to delegate.**—The  Central  Government  may,  by  notification  in  the  Official  Gazette, 
direct  that  any  power  exercisable  and  functions  performed  by  it  under  this  Act  may  be  exercised  and 
performed in such cases and subject to such conditions, if any, as may be specified in the notification by 
such officer or authority as may be specified therein.] 

25. **Power  of  Central  Government  to  make  rules.**—(1) The Central Government may,  by 
notification in the Official Gazette, make rules to carry out the purposes of this Act. 

(2) In particular, and without prejudice to the generality of the foregoing power, rules made under 
this section may provide for all or any of the following matters, namely:— 

  (i) principles  regulating  the  nomination  of  members  of  the  Board  by  the  Central  Government 
under  clause  (d)  of  sub-section  (3)  of  section  4,  and  the  election  or  nomination  of  the  members 
referred to in clauses (b) and (c) thereof: 

  Provided that before making any nomination in the exercise of its powers the Central Government 
shall  call  for  panels  of  names  from  the  respective  associations  recognised  by  it  of  the  interests 
referred to in clause (d); 

     (ii) the term of office of members of the Board, the circumstances in which and the authority 
by which members may be removed and the filling of casual vacancies in the Board; 

     (iii) the procedure to be followed at meetings of the Board and at committees thereof for the 
conduct of business, and the number of members which shall form a quorum at any meeting; 

     (iv) the  maintenance  by  the  Board  of  records  of  business  transacted  by  the  Board,  and  the 
submission of copies thereof to the Central Government; 

     (v) the holding of a minimum number of meetings of the Board every year; 

     (vi) the  powers  of  the  Board,  its  Chairman  and  committees  thereof  with  respect  to  the 
incurring  of  expenditure  and  the  powers  and  duties  of the Executive  Director, the  Rubber 
Production Commissioner and the Secretary of the Board; 

     (vii) the conditions subject to which the Board may incur expenditure outside India; 

     (viii) the  preparation  of  budget  estimates  of  receipts  and  expenditure  of  the  Board  and  the 
authority by which the estimates are to be sanctioned; 

     (ix) the maintenance of the accounts of income and expenditure of the Board and the audit of 
such accounts; 

     (x) the deposit of the funds of the Board in banks and the investment of such funds; 

     (xi) the re-appropriation of the estimated savings from any budget head to any other budget 
head; 

     (xii) the conditions subject to which the Board may borrow funds; 

     (xiii) the conditions subject to which and the manner in which contracts may be entered into 
by or on behalf of the Board; 

     (xiv) the delegation to committees or the Chairman or Vice-Chairman or members or officers 
of the Board of any of the powers and duties of the Board under this Act; 

     (xv) the staff which may be employed by the Board and the pay and allowances and leave and 
other conditions of service of officers and other employees of the Board; 

     (xvi) the travelling and other allowances of members of the Board and of committees thereof; 

     (xvii) the purposes for which the funds of the Board may be expended; 



[^1]. Section 24 A shall stand inserted (date to be notified) by Act 4 of 2010, s. 14. 



     (xviii)  the  maintenance  of  the  registers  and  other  records  of  the  Board  and  of  its  various 
committees; 

     (xix) the  collection  of  any  information  or  statistics  in  respect  of  rubber  or  any  product  of 
rubber; 

[^1][(xx) the  form  of  application  for  registration  under  section  10  or  the  cancellation  of  such 
registration,  the  fee  payable  on  such  applications,  the  procedure  to  be  followed  in  granting  or 
cancelling registration and the registers to be kept by the Board;] 

  (xxa)  the  cases  and  circumstances  in  which  the  duty  of  excise  under  section  12  shall  be 
payable by the owner and the manufacturers respectively, the manner in  which the duty may be 
assessed,  paid  or  collected,  the  regulation  of  the  production,  manufacture,  transport  or  sale  of 
rubber in so far as such regulation is necessary for the proper levy, payment or collection of the 
duty; 

[^3][(xxb)  the  cost  of  collection  and  the  rate  of  interest  to  be  recovered  in  case  of  delayed 
payment of duty under sub-section (3) of section 12;] 

  (xxi) the form of application for special licences under section 14 [^4][or section 17], the fees for 
the grant or renewal of such licences, and the forms of such licences; 

  (xxii) the manner in which rubber shall be graded and marketed; 

  (xxiii) the fee payable on appeals under section 23; 

  (xxiv) any other matter which is to be or may be prescribed. 

(3) Every rule made under this section shall be laid as soon as may be after it is made before each 
House of Parliament while it is in session for a total period of thirty days which may be comprised in one 
session or in [^6][two successive sessions, and if, before the expiry of the session in which it is so laid or the 
session immediately following,] both Houses agree in making any modification in the rule or both Houses 
agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or 
be of no effect, as the case may be, so however, that any such modification or annulment shall be without 
prejudice to the validity of anything previously done under that rule. 

[^7][25A. **Power to make regulations.**—(1) The Board may, with the previous approval of the Central 
Government,  by  notification  make  regulations,  not  inconsistent  with  the  provisions  of  this  Act  and  the 
rules made thereunder, to carry out its functions. 

(2) Every regulation made under sub-section (1) shall be laid before each House of Parliament.] 

26. **Penalties.**— (1) If any person— 

  (a) contravenes any provision of this Act, other than section 11 or section 13, or any rule made 
under this Act, or 

  (b) in any report or return to be furnished under this Act, makes any statement which is false and 
which he knows to be false or does not believe to be true, or 

  (c) obstructs any officer of the Board in the discharge of any duty imposed on or entrusted to him 
by or under this Act, or 



[^1]. Clause (xx) shall stand omitted (date to be notified) by Act 4 of 2010, s. 15. 
[^3]. The words in brackets shall stand inserted (date to be notified) by Act 4 of 2010, s. 15. 
[^4]. The words and figures “or section 17” shall stand omitted (date to be notified) by s. 15, ibid. 
[^6]. The  word  in  brackets  shall  stand  substituted  (date  to  be  notified)  by  Act  54  of  1982,  s.  6  to  read  as  “two  or  more 
successive sessions, and if, before the expiry of the session immediately following the session or the successive 
sessions aforesaid”. 
[^7]. The words in brackets shall stand inserted (date to be notified) by Act 4 of 2010, s. 16. 



  (d) having the control or custody of any account book or other record, fails to produce such book 
or record when required by any authorised officer to do so, 

he shall be punishable with imprisonment for a term which may extend to one year, or with fine which 
may extend to five thousand rupees, or with both. 

(2) If the person committing any offence under sub-section (1) is a company, every person who at 
the  time  the  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. 

(3) Notwithstanding  anything  contained  in  sub-section  (2),  where  an  offence  under  sub-section  (1) 
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  or  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. 

*Explanation.*—For the purposes of this section— 

  (a) “company”,  means  any  body  corporate,  and  includes  a  firm  or  other  association  of 
individuals; and 

  (b) “director” in relation to a firm means a partner in the firm. 

[^3][26A. **Compounding of offences.**—Notwithstanding  anything  contained  in  the  Code  of  Criminal 
Procedure, 1973 (2 of 1974), any offence punishable under this Act may, either before the institution of 
prosecution or with the permission of the Court after the institution of the prosecution, be compounded by 
the  Board  on  payment  to  the  Board  such  sum  of  money  as  does  not  exceed  the  value  of  the  goods  in 
respect of which contravention has been committed.] 

27. **Procedure for prosecutions.**—No prosecution for any offence punishable under this Act shall be 
instituted except by or with the consent of the Central Government or the Board. 

27A. **Jurisdiction of Courts.**—No Court inferior to that of a Presidency Magistrate or  of 
Magistrate of the first class shall try any offence punishable under this Act. 

28. **Bar of legal proceedings.**—No suit, prosecution of other legal proceedings shall lie against the 
Board or any officer of the Board for anything in good faith done or intended to be done under this Act. 

29. **Temporary powers of the Central Government.**—*Omitted by the Rubber (Production and 
Marketing Amendment) Act,* 1954 (54 of 1954), s. 21 (w.e.f. 1-8-1955).] 



[^3]. The words in brackets shall stand inserted (date to be notified) by Act 4 of 2010, s. 18.