For establishment of funds at Central and State levels in India and crediting thereto the monies received from the user agencies towards compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value and all other amounts recovered from such agencies under the Forest (Conservation) Act, 1980.
Compensatory Afforestation Fund Act, 2016
[Act 38 of 2016] [3rd August, 2016]
An Act to provide for the establishment of funds under the public accounts of India and the public accounts of each State and crediting thereto the monies received from the user agencies towards compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value and all other amounts recovered from such agencies under the Forest (Conservation) Act, 1980; constitution of an authority at national level and at each of the State and Union territory Administration for administration of the funds and to utilise the monies so collected for undertaking artificial regeneration (plantations), assisted natural regeneration, protection of forests, forest related infrastructure development, Green India Programme, wildlife protection and other related activities and for matters connected therewith or incidental thereto
Whereas the Supreme Court in its order in T.N. Godavarman Thirumulpad v. Union of India, (2002) 10 SCC 606, dated the 30th October, 2002, observed that a Compensatory Afforestation Fund be created in which all the monies received from the user agencies towards compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value of the diverted forest land or catchment area treatment plan shall be deposited;
And whereas it had also been observed that the money received from the user agencies in cases where forest land diverted falls within protected areas, that is, the areas notified under the Wild Life (Protection) Act, 1972 (35 of 1972) for undertaking activities related to protection of biodiversity or wildlife shall also be deposited in the Fund;
And whereas the Supreme Court has directed that, besides artificial regeneration (Plantations), the Fund shall also be utilised for undertaking assisted natural regeneration, protection of forests, infrastructure development, wildlife protection and other related activities and an independent system of concurrent monitoring and evaluation should be evolved and implemented through the Compensatory Afforestation Fund to ensure effective and proper utilisation of funds;
| Other Contents of Compensatory Afforestation Fund Act, 2016 |
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| Sections 1 to 7 Sections 8 to 13 Sections 14 to 33 |
And whereas the Supreme Court in its judgment dated 26th September, 2005 T.N. Godavarman Thirumulpad (87) v. Union of India, (2006) 1 SCC 1 in the said Writ Petition observed that the Fund generated for protecting ecology and providing regeneration should not be treated as a fund under Article 266 and Article 283 of the Constitution;
And whereas in its direction dated the 5th May, 2006 T.N. Godavarman Thirumulpad (101) v. Union of India, (2006) 5 SCC 59, the Supreme Court had directed that since the Government has not constituted a Compensatory Afforestation Fund Management and Planning Authority (hereinafter referred to as Authority), an ad hoc Authority should be constituted till the Compensatory Afforestation Fund Management and Planning Authority becomes operational and directed to centrally pool the money recovered on behalf of the said Authority lying in the States and Union territories into the ad hoc Compensatory Afforestation Fund Management and Planning Authority;
And whereas Central Government formulated guidelines dated the 2nd July, 2009 on the subject of State Authority for utilisation of funds lying with the ad hoc Authority;
And whereas in its direction dated the 10th July, 2009 T.N. Godavarman Thirumulpad v. Union of India, (2009) 16 SCC 481, the Supreme Court had directed that the guidelines and structure of the State Authority prepared by the Central Government may be notified and implemented;
And whereas in its directions dated the 10th July, 2009, the Supreme Court further directed that till an alternative system is put in place, after obtaining permission from the Supreme Court, the money towards compensatory afforestation, net present value and protected areas (national parks, wildlife sanctuaries) shall continue to be deposited in the ad hoc Authority;
And whereas in compliance of the directions of the Supreme Court including its order dated the 5th May, 2006, over Rupees Thirty-eight thousand crores as collected by the State Governments and Union territory Administrations have been placed under the ad hoc Authority, and deposited in the nationalised banks;
And whereas absence of permanent institutional mechanism for utilisation of funds collected by the State Governments and Union territory Administrations is the main reason for accumulation of huge unspent funds in the ad hoc Authority;
Now, therefore, based on the above orders, directions and observations of the Supreme Court to ensure safety, security and expeditious utilisation in a transparent manner of funds accumulated with the ad hoc Authority and the funds to be collected by the State Governments and Union territory Administrations, it is proposed to create a National Compensatory Afforestation Fund and a National Compensatory Afforestation Fund Management and Planning Authority at the national level, and a State Compensatory Afforestation Fund and a State Compensatory Afforestation Fund Management and Planning Authority in each State and Union territory, by an Act of Parliament.
Be it enacted by Parliament in the Sixty-seventh Year of the Republic of India as follows—
Statement of Objects and Reasons.—As the diversion of forest land for non-forestry purposes was causing loss to the valuable forests, the Forest (Conservation) Act, 1980 was enacted to maintain a rational balance between the objectives of conservation and development. The Forest (Conservation) Act, 1980 makes provision for conservation of forest and provide for the basic framework for regulating indiscriminate diversion or use of forest for the developmental needs of a State. It intends to harmonize development with that of conservation of forests and forest eco system. The compensatory afforestation envisages additional plantation activities by utilising the money deposited by the user agency for the purpose.
2. The Hon'ble Supreme Court in its order in T.N. Godavarman Thirumulpad v. Union of India(2002) 10 SCC 606, dated 30th October, 2002, observed that a Compensatory Afforestation Fund may be created in which all the monies received from the user agencies shall be deposited. The Court directed that the Fund shall be utilised for plantations, protection of forests, wildlife protection and other related activities. Presently, in compliance with the direction of the Supreme Court, all monies collected under the scheme has been placed under an ad hoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA) and deposited in the nationalised banks.
3. The Hon'ble Supreme Court in its Judgment dated the 26th September, 2005, T.N. Godavarman Thirumulpad (87) v. Union of India, (2006) 1 SCC 1, in the aforesaid case observed that the fund generated for protecting ecology and providing regeneration should not be treated as a fund under Article 266, Article 283 or Article 284 of the Constitution. Funds are therefore; kept outside the Consolidated Fund of India or Public Account of India. In the absence of proper institutional mechanism with adequate statutory backup amount of unspent funds has increased to more than Rupees Thirty-eight thousand crorers.
4. The Comptroller and Auditor General in its report on Compensatory Afforestation in India (21 of 2013) observed that given the substantial amounts of funds being collected under the compensatory afforestation, the expenditure therefrom, the overall objectives of conservation, protection, regeneration and management of forests, conservation, protection and management of wild life and its habitats and compensatory afforestation; the clear public purpose involved in the work relating to CAMPA, there is need to review the existing paradigm of CAMPA. The Comptroller and Auditor General recommended that this should be done in a way that enhances transparency, brings CAMPA within the broader focus of both Parliament and State Legislatures and in greater public view so as to ensure the largest possible stakeholders' participation. Towards this end it would be appropriate if the amounts lying in ad hoc CAMPA are transferred into the Public Account. The Comptroller and Auditor General has also observed that the receipts accruing into the ad hoc CAMPA are essentially payments being made for the acquisition of public assets, namely, forest land for non-forest purposes by user agencies. The receipts, so arising, in essence are non-tax revenue, as are forest receipts.
5. Accordingly, to ensure safety, security and expeditious utilisation in a transparent manner of funds accumulated with the ad hoc CAMPA and the funds to be collected by the State Governments and Union territory Administrations it is proposed to enact a legislation, namely, the Compensatory Afforestation Fund Bill, 2015 to provide for the establishment of a Statutory Fund and a Management Authority at the National level and at each State and Union territory.
6. The Bill will provide the required legal backing for setting up of required institutional mechanism both at the Government of India and in each State and Union territory for expeditiously, and utilisation, in a transparent manner, of amounts realised in lieu of forest land diverted for non-forest purpose.
7. The Bill seeks to achieve the above objectives.
Chapter I
PRELIMINARY
1. Short title, extent and commencement.
1. Short title, extent and commencement.—(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.
[Editor’s Note. This Act came into force w.e.f. 30 September, 2018.]
2. Definitions.
2. Definitions.—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 v. Union of India [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, 1980 (69 of 1980);
(e) “environmental services” includes—
(i) provision of goods such as wood, non-timber forest products, fuel, fodder, water and provision of services such as grazing, tourism, wildlife protection and life support;
(ii) regulating services such as flood moderation, carbon sequestration and health of soil, air and water regimes;
(iii) supporting such other services necessary for the production of ecosystem services, biodiversity, nutrient cycling and primary production including pollination and seed dispersal;
(f) Head of the regional office” means the senior-most officer appointed by the Central Government at regional office to deal with the forest conservation matters under the Forest (Conservation) Act, 1980 (69 of 1980);
(g) “monitoring group” means a group of experts to monitor the activities undertaken from amounts released from the National Fund and State Fund constituted under sub-section (3) of Section 9;
(h) “National Authority” means National Compensatory Afforestation Fund Management and Planning Authority constituted under Section 8;
(i) “National Fund” means the National Compensatory Afforestation Fund established under sub-section (1) of Section 3;
(j) “net present value” means the quantification of the environmental services provided for the forest area diverted for non-forestry uses, as may be determined by an expert committee appointed by the Central Government from time to time in this regard;
(k) “penal compensatory afforestation” means afforestation work to be undertaken over and above the compensatory afforestation specified in the guidelines issued under the Forest (Conservation) Act, 1980 (69 of 1980), in lieu of the extent of area over which non-forestry activities have been carried out without obtaining prior approval of the competent authority under the Forest (Conservation) Act, 1980;
(l) “prescribed” means prescribed by rules made by the Central Government in consultation with the State Governments under this Act;
(m) “State Authority” means the State Compensatory Afforestation Fund Management and Planning Authority constituted under Section 10;
(n) “State Fund” means the State Compensatory Afforestation Fund established by each State under sub-section (1) of Section 4;
(o) “State Government” includes Union territory Administration;
(p) “user agency” means any person, organisation or company or department of the Central Government or State Government making a request for diversion or de-notification of forest land for non-forest purpose or using forest land for non-forest purpose in accordance with the provisions contained in the Forest (Conservation) Act, 1980 (69 of 1980) and the rules made and guidelines issued, thereunder.
Chapter II
ESTABLISHMENT, MANAGEMENT AND UTILISATION OF NATIONAL COMPENSATORY AFFORESTATION FUND AND STATE COMPENSATORY AFFORESTATION FUNDS
3. Establishment of National Fund.
3. Establishment of National Fund.—(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 per cent of the funds realised from the user agencies in respect of the forest land diverted in their favour, which have been credited directly into the State Fund.
(5) There shall also be credited to the National Fund—
(a) grants-in-aid received, if any, by the National Authority;
(b) any loan taken or any borrowings made by the National Authority;
(c) any other sums received by the National Authority by way of benefaction, gift or donations.
(6) The monies received in the National Fund shall be an interest bearing fund under public accounts of India.
(7) The balance in the National Fund shall be non-lapsable and get interest as per the rate declared by the Central Government on year to year basis.
4. Establishment of State Fund.
4. Establishment of State Fund.—(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 the State Fund of a State—
(i) the unspent balance of all monies which has been transferred by ad hoc Authority to the State Compensatory Afforestation Compensatory Afforestation Funds Management and Planning Authority constituted in such State in compliance of guidelines dated the 2nd July, 2009;
(ii) all monies transferable from the National Fund under clause (a) of Section 5;
(iii) all monies realised from user agencies by such State towards compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value, catchment area treatment plan or any money for compliance of conditions stipulated by the Central Government while according approval under the provisions of the Forest (Conservation) Act, 1980 (69 of 1980); and
(iv) the funds recoverable from user agencies by such State in cases where forest land diverted falls within the protected areas, that is, areas notified under Section 18, 26-A or 35 of the Wild Life (Protection) Act, 1972 (53 of 1972) for undertaking activities relating to the protection of biodiversity and wildlife.
(4) A State Government may also credit to the State Fund constituted by it—
(i) grants-in-aid received, if any, by the State Authority;
(ii) any loan taken or any borrowings made by the State Authority;
(iii) any other sums received by the State Authority by way of benefaction, gift or donations.
(5) The monies received in the State Fund shall be an interest bearing fund under public accounts.
(6) The balance in each State Fund shall be non-lapsable and get interest as per the rate declared by the Central Government on year to year basis.
5. Disbursement and utilisation of National Fund.
5. Disbursement and utilisation of National Fund.—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 the National Authority including the salary and allowances payable to its officers and other employees;
(ii) the expenditure incurred on monitoring and evaluation of works executed by the National Authority and each State Authority;
(iii) the expenditure incurred on specific schemes approved by governing body of the National Authority.
Explanation.—For the purposes of this section, “scheme” includes any institute, society, centre of excellence in the field of forest and wildlife, pilot schemes, standardisation of codes and guidelines and such other related activities for the forestry and wildlife sector.
6. Disbursement and utilisation of State Fund.
6. Disbursement and utilisation of State Fund.—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, 1980 (69 of 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 produce saving devices and other allied activities in the manner as may be prescribed;
(c) the interest accrued on funds available in a State Fund and the interest accrued on all monies collected by the State Governments, which has been placed under the ad hoc Authority and deposited in the nationalised banks, in compliance of the directions of the Supreme Court dated the 5th May, 2006, shall be used for conservation and development of forest and wildlife in the manner as may be prescribed;
(d) all monies realised from the user agencies in accordance with the decision taken by the Standing Committee of the National Board for Wild Life constituted under Section 5-A of the Wild Life (Protection) Act, 1972 (35 of 1972) or the orders of the Supreme Court involving cases of diversion of forest land in protected areas shall form the corpus and the income therefrom shall be used exclusively for undertaking protection and conservation activities in protected areas of the State including facilitating voluntary relocation from such protected areas and in exceptional circumstance, a part of the corpus may also be used subject to prior approval of the National Authority;
(e) ten per cent of amount realised from the user agencies, which has been credited directly into the State Fund in a year shall be transferred to the National Fund to meet expenditure as provided in clause (b) of Section 5;
(f) the non-recurring and recurring expenditure for the management of a State Authority including the salary and allowances payable to its officers and other employees may be met from a part of the interest accrued on the amounts available in the State Fund, in the manner as may be prescribed;
(g) in case of trans-boundary forestry or environmental implication of diversion of forest land for non-forest purposes in a particular State, if found expedient and necessary by the National Authority, it may, in consultation with the concerned Sate Authorities order that such sum as may be justified for reparation of the trans-boundary effects, be transferred to State Fund of such State or States;
(h) State Authority shall release monies to agencies identified for execution of activities in pre-determined instalments as per the annual plan of operation finalised by steering committee of such State Authority and executive committee of the National Authority.
7. Accounting procedure.
7. Accounting procedure.—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.
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