THE NAGALAND GROUNDWATER (REGULATION AND CONTROL OF DEVELOPMENT AND MANAGEMENT) ACT,2020

12 	 The Nagaland Gazette, Part-V 	May 31, 2023 

THE NAGALA.ND GROUNDVATER (REGULATION AND CONTROL OF 
DEVELOPMENT AND. MANAGEMENT) ACT, 2020. 

Nagaland Act No.6 of 2022 
Received the assent of the Governor on 03.12.2022 and published in the 

Nagaland Gazette on May 31 2023. 

CHAPTER 1 

PRELII' IINARY 

.1. Short title. Extent and Commencement 
(I) This Act may be called the Naaiand Groundwater (Regulation and Control of 

Development and Management) Act, 20'20- 
(2) It extends to the whole of the State of Nagaland 
3) It shall conic into force on such date as the Government may. by notification in 

the Official Gazette, appoint. 
2. Objective 

The objectives of this Act are to ensure that groundwater is protected, conserved 
and regulated so as to: 
(a) Meet basic human needs and livestock needs, 
(b) Promote sustainable groundwater use in the public interest, based on a long-

(cmi protection of available resources. 
(C) Ensure that the protection, conseratiOn and regulatiOn of groundwater is 

integrated with the protection, conservation and regulation of surface water to 
ensure conjunctive use of surface water and tzroundwater. 

(d) Ensure the implementation of the principle of subsidiarity. 
(e) Protect ecosystems and their biological diversity. 
(1) Reduce and prevent pollution and degradation of groundwater. 
(g) Ensure that present and future generations have access to sufficient quantity 

and quality of basic water. 
3. Definitions 

In this Act unless the context otherwise requires: - 
(a) "Act" means the Nagaland Groundwater Regulation Act. 2020. 
(b) "Appellate Authority" means the Nodal Department that is Directorate .of 

Geology & Mining established under section 3 of the Act. 
(c) "Artificial recharge to groundwater" means the process by which groundwater 

reservoir is augmented beyond the natural condition of replenishment. 
(d) "Aquifer" is a geological formation that stores and transmits water. 
(e) "Drinking water" means water for consumption or use by human population 

for drinking and for other domestic purposes, which shall include consumption 
or use of water for cookinr, bathing, washing, cleansing and other day to day 
activities and shall include water meant for consumption by the livestock. 



May 31,  2023 	 The Nagaland Gazette, Part-V 	 13 

(f) "Exploitation limit" means such limit where 
the  estimated annual 

groundwater extraction is more than S5'O eighty-five percent) of the estimated 

aerae annual !zlTound water rechare, 
"Government" or "State Government"means Government of Nagaland 

(h) "Department "means the department of Geolov and Mining. Nagaland 
"Groundwater" means the water vhidi exists below  the rotind surface in the 

zone of saturation and can be exuacted through wells or any other means or 

eiiiei 	spiins and base flow, In streams and tivers. 

',ontied area" means the area notified undei section 7 (3) of this Act 
k) "Official Gazette" means the Nagaland Gazette. 

(1) "prescribed" means prescribed by rules made tinder this Act. 
(m)"Rain water harvesting" is the process of collection and storage of rain water 

at surface or in sub surface aquifer. 
(11) 

"RoyaLty" means the royalty payable to the State Government under section 

R,  of this Act 
(o) "Sink" with, all its rantmatical variations and cognate expression in relation 

to a vvell miltides any digging duflm or boring of new  wells or deepening of 

the existing wells. 
p) "State" means the State ofNagatand 

(qi "User of groundwater" means a person or an institution including a company 
or an industry or an establishment, whether Government or not, who or which 
use groundwater for any purpose excluding domestic use. 

(r) "Well" means a structure sunk for the search or extraction of groundwater by 
any person, except by the authorized officials of the State or Central government. 

for carrying 	out scientific investigations. exploration, development. 
augmentation. conservation, protection or managenient of groundwater and shall 
include open well, dug well, bore well. dttL'-culTI-bore well. tube well, filter point. 
collector well, infiltration gallery, recharge velI. disposal vell. or any of their 
combinations or variations for extraction of groundwater. 

(s) "Source of water" means the water which exists in the nallahs. wells- rivulets, 
rivers lakes. ponds, bore wells, tube wells. canals, springs. etc. 

(I) "Conservation" means to conserve forest. catchment areas. springs sources 
arid any other structures that aui.tment ffoundWatC1 aquifers for sustainable 

hydrological cycle. 
(u) "Permit" means the permit for extraction and use of groundwater granted 

tinder section 9 of the Act. 

(v) 
"Safe yield" means the amount of water which may be abstracted from an 
aquifer at a rate that wiN not reduce the supply to such an extent that it would 
not be recharged to the original level by the annual natural recharging process 
of that locality and, as such. rendering such abstraction harmful to the aquifer- 
quality of the water or environment. 



14 

  

The Nagaland Gazette, Part-V 

CHAPTER 11 

CONSTITUTION OF THE AUTHORITY 

May 31, 2023 

   

    

4. Establishment of Authority 
(I) The State Government shall, by notification in the official Gazette, establish, 

with effect from such date as may be specified in the notification, an Authority 
to be known as —Nagaland Groundwater Authority". 

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

(1) 	Commissioner & Secretary/Secretary, Geology & Mining: Chairman 
(ii) Director, Geology and Mining: Member Secretary 
(iii) Chief Engineer, Deptt. of Water Resources: Member 
(iv) Chief Engineer, Public llealth Engineering Deptt.: Member 
(v) Director. Deptt. of Soil and Water Conservation: Member 
(vi) Director, Deptt. Of Municipal Affairs: Member 
(vii) Regional Director, Central Ground Water Board: Member 
(viii) Joint Director (0), Geology & Mining: Co-opted Member 

(3) The Members of the Authority shall by designation represent as representative 
of the Department. 

S. Staff of the Authority 
(I) The Government shall for the purpose of enabling the Authority to efficiently 

perform its functions or exercise its powers under the Act, provide such 
number of technical and other staff as it may consider necess&y,  

(2) The powers and duties arid' the terms and conditions of service of such 
employees shalt be such, as my be prescribed. 

(3) The officers, technical personnel and staffs of the Authority under sub-section 
(1) shall be constituted from the existing Groundwater Cell of the Directorate 

of Geology & Mining. Dimapur. 

6. Term of 001cc and Conditions of Service 
The term of office and service conditions of the staff of Authority under sub- 
section (3) of Section 5 shall be guided by the Service Rule, 2005 of the Department 
of Geology and Mining. 

7. Power to notify areas to regulate and control the development and 
management of Groundwater 
(1) The Authority shall function under the overall control and supervision of the 

State Government. 
(2) If the Authority after consultation with the experts is-of the opinion that it is 

necessary or expedient in the public interest to control and or regulate the extraction 

of groundwater in any form in any area. it shall advise the Slate Government to 
declare any such area to be notjiled a vu for the purposes of this Act. 



May 31, 2023 	 The Nagaland Gazette, Part-V 	 15 

(3) The State Government after examining the advice of the Authority, received 

under sub-section (2), and after making such further enquiry as it may deem 

fit, may h notification, declare such area or part thereof to be the notJiecI 

area with effect frort such date. as may be specified therein, provided that the 
State Government may suo mow by notification declare its intention to notify 

any area to be the notified area under this section. if deemed necessary. 

(4) Everysuch notificatitin issued under Sub-section t3 I shall, in addition to its 

publication in the official Gazette. be  published in net less than two daily 

newspapers having wide circulation in the State and shall also be served by 

affixing a copy of the notification at the offices of the Village/Ward/Colony 
Councils located in the said area and at some conspicuous places of the locality. 

(5) The persons iilely to he affected by the notification issued tinder sub-section 
(4). may file objections or suggestions within 30 (thirty days) from the date of 

publication to the State Government which shall be decided by it within thirty 
days. after public hearing and thereafter, final notification shall be issued 

within thirty days. 
(6) if in the opinion of the Authority, the availability of the groundwater has 

improved in notified area. it may advise the State Government to denoti' such 
area, and the State Government may in the like manner. dcnotify such area. 

(7) The Authority shall take steps to ensure that exploitation of groundwater 
resources does not exceed the natural replenishment to the aquifers and 
wherever, there is mismatch, steps shall be taken to ensure augmentation of 
groundwater resources in addition to regulatory measures. 

8. Authority to maintain database on. groundwater 
The Authority shall maintain and update the data base on 

groundwater resourccS 

of the State. 

9. Grant of Permit to extract and use groundwater 

(1) Any user of groundwater desiring, to sink a well within notifiedarm for any 

purpose shall. on payment of such fee as may be prescribed, apply to the 
Authority for grant of a permit. and shall not proceed with any activity 
connected with such sinking unless a permit has been granted by the Authority. 

(2) 
Every application made under subseetiOu(l). shall be in such form and contain 

such particulars as may be prescribed. 

(3) The Authority shall consider the application made undersub-section(I) and if 

satisfied. may grant a permit, in such form as may he prescribed subject to 

such conditions and restrictions as may be specified. within 60 (sixty. days) 
from the date of receipt of the application. 

Provided that, while considering the application the Authority shall 
give first priority for drinking water needs in preference to other needs. 



16 	 The Nagaland Gazette, Part-V 	 May 31, 2023 

Provided further that no permit shall be refused without affording an 

opportunity of being heard. 

(4) The decision regarding grant or refusal of the permit shall be intimated by the 

Authority to the applicantArithin a period of(30) thirty days from the date of decision. 

(5) In granting or rellisinga permit under sub-section (3). the Authority shall have regard to 

(a) Hydrogeology and geomorpholoY of the area. 

(b) The purpose or purposes for which water is to be used. 

(c) The existence of other competitive users. 
(4) The availability of water/aquifer zones. 
(e) Prospect of groundwater.  
(1) Feasibility for groundwater development. 

(g) Quality & quantity of groundwater to be dravm with reference to proposed usage. 

(h) Spacing of groundwater structures keeping in view its conservation and 

sustainahibty. 
(i) Minimum distance of 200 ct'o hundred) meters in case of shallow well 

and 300 (three hundred) meters in case of tube well from the existing 
source of water supply scheme or irrigation scheme, as the case may be. 

tj) No permit shall be given for water intensive crops like paddy, sugarcane, 

banana and heavy industries in notified areas. 

(k) Long term groundwater level behavior. 
Any other factor relevant thereto. 

10. Registration of existing users of groundwater in notified areas 

(1) Every existing user of groundwater in. a notified area shall. within a period, of 
2 (two) months from the date of establishment of the Authority shall, make an 
application on such form containing such particulars and fees, as may be 
prescribed, to the Authority for the grant of certificate of registration 

recognizing its existing use. 
Provided that the Authority may entertain any such application after 

the expiry of the said period of (60) sixty days. if it is satisfied that the user 

was prevented by sufficient cause from filing application in time. 

(2) On receipt of an application under sub-section (1),, if the Authority is satisfied that 
it shall not be against the public interest to do so. it shall grant, subject to such 
conditions and restrictions as may be specified therein, a certificate of registration 
in such form as may be prescribed authorizing coniiriued use of groundwater: 

Provided that hile considering the application, the Authority shall 
give first priorit) for drinking water needs in preference to other needs. 



May 31, 2023 	 The Nagaland Gazette, Fart-V 	 17 

Provided further that no user of groundwater shall be refused a 

certificate of registration without being given an opportunity of being heard. 
(3) The decision regarding grant or refusal of the certificate of registration shall 

he intimated by the Authority to the applicant within a period of (30) thirty 

days from the date of decision- 
(4) in ranting or refusing a certificate of registration under sub-section (2). the 

Authority shall have regard to 

(a) The purpose or purposes for which waler is to be used. 

(b) The existence of other competitive users. 

(c) The availability of water. 

(d) Quality of groundwater with reference to its usage. 

(e) Spacing of groundwater abstraction structures keeping in view the 

purpose for which water is to be used.. 

(f) Long term groundwater level behavior. 
(c) Any other factor relevant thereto. 

(5) Every existing user of groundwater in a notified area during pendency of 

decision of the Authority under sub-section (2) shall be entitled to the 

continued use of the groundwater in the same manner and to the same quantity 

as he was entitled priOr to the date of application 

(6) If a registered well becomes defunct, this shall be immediately brought to the 
notice of the Authority by the user of groundwater and such well may be used 

for groundwater recharging if in the  opinion of the Authority it is found fit. 

Ii. Registration of user of existing/flew wells in eon-notified areas 

(1) All wells sunk in the Stale shall have to be registered including the areas 
notified under section 7 of this Act, except those excluded under clause (r) of 

section 3 of this Act. 

(2) The clause under sub-section (6) of section 10 shall also be applicable. 

12. Registration of Drilling Agencies 
Every Rig owner including the manual hand boring party operating in the State 

shall register his equipment and machinery with the Authority in such manner 
and on payment of such fee as may he prescribed and shall follow the instructions 

issued by the Authority. 



18 	 The Nagaland Gazette, Part-V 	May 31, 2023 

13. Power to alter, amend or vary the terms of the permit or certificate of registration 
Al any time after a permit or certificate of registration has been granted, the  

Authority may. for reasons to be recorded in writing, alter, amend or vary the 
terms of the permit or certificate of registration, as the. e may be. 

Provided that no change shall be made in the permit or certificate of 
registration. as the case may be. unless the user of groundwater is afforded an 

opportunity of being heard. 

14 Cancellation of Permit/ Certificate of Registration 
If the authority is satisfied either on a reference made to it in this behalf or 

otherwise that:- 
(1) 	the Permit or Certificate ofregistrationgranted, under sub-section (3) of section 

9 or sub-section (2) of section 10 as the case may be, is not based on facts. or 
'2) the holder of the permit or certificate of registration has without 

reasonable cause failed to comply with the conditions subject to which the 
pern ut or certificate of registration has been granted or has contravened 
any of the provisions of this Act or the rules made there under, or 

(3) a situation has arisen which warrants limiting the use or extraction of 
groundwater. then without prejudice to any other penalty to which the 
holder of the permit or of the certificate of registration may be liable under 

this Act, the Authority may after  giving the holder of the permit or 

certificate of registration, an opportunity of being heard cancel the permit 
or certificate or registration, as the ease may be. 

15. Powers of the Authority  
(1) The Authority or any person authorized under section 23 of this Act in this 

behalf shall have the following powers. namely; 
(a) To inspect the well, which has been or is being sunk and the soils and 

other materials excavated there from. 
(h) To take specimens of such soils or other materials or of water extracted 

from such wells. 
(C) 

To require. by order. in writing the person sinking a well to keep and preserve 
n the prescribed manner specimens of soil or any material excavated there 
from for such period not exceeding 3 (thrcc months) from the date of 
completion or abandonment of such work, as may be specified by the 
Authority and there upon such person shall comply with such order. 

(ci) To inspect and to take copiei of the relevant record or documents and seek 
any information including diameter or depth of the well which is being or 



May 31, 2023 	 The Nagaland Gazette, Part-V 	 19 

has been sunk; the level at which the water is or was struck and 
subsequently restored/ rested, the types of strata encountered in the 

sinking of the well and the quality of the water struck, required for 
carrying out the purposes of this Act. 

(e) To seize any equipment or device utilized for illegal sinking and destroy 

the work executed fully or partly - 

(f) To require. by order any user of groundwater who does not comply with 
the provisions of this Act or the rules made there under to close down any 
water supply or destroy any hydraulic work found to be in contravention 
of the provisions of this Act or the rules made there under. 

Provided that where the user of groundwater does not comply with 
such order within a period of 60 (sixty) days from the date of issue of the 
same. the Authority or any person authorized in this behalf may carry out the 
necessary work and recover the cost from such user of groundwater. 

(g) To enter and search with such assistance, if any, as it considers necessary, 
any place in which it has reason to believe that offence under this Act has 
been or is being committed and order, in writing, the person who has been 
or is committing the offence, not to extract groundwater for a specified 
period not exceeding 30 (thirty) days. 

(h) To direct an appropriate body to assess exploitation limit of groundwater in 

different areas and submit periodic report for consideration 
of the Authority. 

(i) To exercise such other powers as may be necessary for carrying out the 
purposes of this Act or the rules made thereunder. 

(2) The power conferred by this section includes the power to break open the door 
of any premises where sinking, extraction and use of groundwater may be 

going on. 
Provided that the power to break open the door shall be exercised only 

if the owner or any other person in occupation of the premises present therein, 
refuses to open the door on being called to do so. 

(3) The provisions of the Code of Criminal Procedure, 1973 shall, so fax as may 
be applied to any search or seizure under this section as they apply to any 
search or seizure made under the authority of a warrant issued under section 

93 of the said Code. 
(4) Where the Authority or any person authorized by it seizes any mechanical 

equipment or device under clause (e) of sub-section (1) it shall, as soon as may 

be. inform a Magistrate having jurisdiction and take his orders as to the 

custody thereof. 

_III..11iIt 



20 

  

The Nagaland Gazette, Part-V 

CHAPTER III 

FUND AND ACCOUNTS 

May 3l,2O23 

   

    

16. Royalty in respect of use of Groundwater 
Eveiy user of groundwater in a notified area shall pay to the Slate Government a royalty 
for extraction of groundwater at such rates and in such manner as may be prescribed: 
(1) Provided that a user of groundwater who irrigates less than I (one) hectare of 

land, whether owned or leased or both, shall be exempted from payment of 

royalty under this section. 
(2) The State Government may, assign such proportion of the royalty, as may be 

prescribed for development of groundwater resources. 

17. Fund of the Authority 
(1) The Authority shall have and maintain a separate fund called the Nagaland 

Groundwater Authority fund to which shall be credited: 

(a) such sums as may be placed at the disposal of the Authority from time to 
time by way of grant or loan or otherwise by the Government However, 
the grants released by the Government shall be utilized in the year in 

which it is released. 

(b) grants and loans received from the Central Government; 

(c) loans raised with prior concurrence of the Government by the Authority from 

(d) the financial agencies. 
(e) the proceeds of any fees, charges and fines levied. 

(f) such other sums by the Authority from any other source. 

(g) all the new appointments in the establishment of the Authority, where 

temporary or permanent with appropriate scale of pay and purchase of 

•new vehicles shall be made with the concurrence of the Government. 
(h) the Authority may impose appropriate charges on the quantum of 

groundwater extracted for industrial, commercial and entertainment purposes 

with the approval of the Government in such manner as may be prescribed. 
(2) The fund shall be applied for the purpose of this Act in such manner as may be 

prescribed. 
(3) The fund shall be kept in such deposit and drawn in such manner as may be 

prescribed. 



May 31, 2023 	 The Nagaland Gazette, Part-V 	 21 

18. Accounts and Audit 
(1) The Authority shall maintain a true and proper account and other relevant records 

and prepare annual statentenis of accounts in such form as may be prescribed. 

(2) The accounts of the Authority shall be subject to audit annually by the Controller 
of State Accounts. A copy of annual statement of accounts together with a copy 
of the report of the audit shall be forwarded annually to the Government. 

19. Annual Report 
The authority shall prepare every year a report of its activities during the year and 
submit the report to the Government in such form and on or before such date as 

may be prescribed and the government shall cause the same to be lukI before each 

house of the State Legislature. 

CHAPTER IV 

GROUNDWATER RECHARGE AND RAIN WATER HARVESTING 

20. Groundwater recharge and conservation through Rain water harvesting 

(1) The Authority may. in order to improve the groundwater situation, identify 
the areas to recharge groundwater and issue guidelines for adoption of Rain 

water harvesting for groundwater recharge in such areas. 

(2) The Authority may issue directions to the concerned departments of the State 
Government, to include Rain water harvesting in all developmental schemes 

within notified areas and non-notified areas. 

(3) The Authority may, in urban areas, issue directions, in such manner .as may 
be prescribed, for construction of Rain water harvesting structures in 
residential, commercial and other premises having plinth area of 100 square 
meters or above and in the event of failure to comply with the directions so 

issued such rain water harvesting structures shall be constructed by the 
Authority and the cost there on shall be recovered along with such penalty in 

such manner as may be prescribed. 

(4) The Authority may, issue directions to the Municipal Council or any other 

Local Authority. as the case may be, to impose stipulated conditions for 

providing roof top rain water harvesting structures in building plans with 

plinth area of 100 square meters or above. 

(5) The Authority shall take steps for promotion of Mass Awareness and Training 
Programmes. on Rain Water Harvesting and Artificial Recharge of 
Groundwater through Government Agencies/NoflGOVeI11fl1ent Organizations, 

Educational Insututionsf1ndus1riCS11fl4iVlu 



22 	 The Nagaland Gazette, Part-V 	May 31, 2023 

MISCELLANEOUS 

zi. installation of measuring devices & Monitoring 
(1 ) Every user of groundwater in a noi/iec1 area and non-rn?! ?fled areas shall 

install water measuring device on groundwater abstraction structure within a 

period of 30 (thirty) days from the date of registration under section 9 or 10. 

as the case may he. 
Provided that where the user of groundwater does not comply with the 

provisions of this section within a period of 30 (thirty) days. the Authority or 
any person authorized in this behalf may install such water-measuring device 
and recover the cost from the defaulting user 0 groundwater. 

(2) The Authority shall monitor wells in notified and non-notified areas to keep 

track of the usage of groundwater and initiate necessary remedial measures. 

(3) The Authority shall monitor water levels periodically from NHNS (National 
1-lydrographic Network Stations) for long term planning and management. 

22. Service of orders etc. 
(1) Every order or notice made under this Act shall be served in the following 

manner, namely: - 
(a)By giving or tendering copy of the order or the nøtice by sending it by post 

to the user of groundwater if such user of groundwater cannot be found, by 
giving or tendering the copy of such order or notice to any adult member of 

his family or his servant. 
(h)lf the service of such order or notice cannot be effected under clause (a) by 

affixing the copy of such order or notice on some conspicuous place of his 
last known residence or place of business or on any part of the land or 
building in which the well is being sunk. 

(2) Where the person on whom an order or a notice is to be served is a minor,  

service of such order or notice upon his guardian in the manner provided in 
sub-section (1), shall he deemed to be served upon the minor. 

23. Delegation of powers and duties 
The State Government may, by general or special order in writing, direct that all 
or any of the powers and duties which may be exercised or discharged by the 
Authority shall, in such circumstances and under such conditions, if any, as may 
be specified in its order, be exercised by any, person specified in such ordet+ 

24. N-1 embers and employees of the Authority to be public servants 
All members and employees of the Authority shall when acting or purporting to Act 
in pursuance of the provisionS of this Act or the rules made thereunder be deemed 
to be public servants within the meaning of section 21 of the Indian Penal Code. 



May 31, 2023 	 The Nagaland Gazette, Part-V 	 23 

25. Protection of action taken in good faith 
No prosecution, suit or other legal proceedings shall he instituted against any 

officer/official of the Government or any member or other employee of the 
Authority for anything done or intended to be done in good faith under this Act, 

or the rules made thereunder. 

26. Cognizance and trial of offences 
(I) No prosecution for an offence under this Act shall be instituted except on a 

written complaint of the Authority or a person authorized in this behalf by the 

State Government. 
(2) No court inferior to that of a Magistrate of the I (first) class s, ha try any inferior 

 

offence under this Act. 

27. Offences and penalties 
(1) if any user of groundwater fails to supply information required under the 

provisions of this Act or the rules made thereunder or obstructs the Authority 
or any other person authorized by the State Government to exercise any of the 
powers under this Act. He shall be punished for the first offence with fine of 

1000 (rupees one thousand) and for the second and subsequent offence with 
fine which may extend to Z2000 (rupees two thousand) or more. 

(2) If any user of groundwater sink, constructs or uses well in contravention of the 

provisions of this Act or the rules made thereunder, he shall be punished for 
the first offence with imprisonment for a term which may extend to 3 (three) 
months or with fine which may extend to Z500o (five thousand rupees), or 
with both and for the second and subsequent offence, with imprisonment for a 
term. which may extend to 6 (six) months, or with fine which may extend to 

10.000 (Len thousand rupees) or with both. 

28. Compounding of offences 
Whenever an offence under this Act has been committed, such an offence may, at 
any time before or after the Institution of proceedings, be compounded by the 
Authority or any other officer authorized by the State Government after accepting 
by way of compensation thereof, a sum of money that exceeding such amount as 
may be prescribed, and such composition shall have the effect of discharging such 
person of the offence and no further proceedings shall be taken or continued 
against him in respect of the offence so compounded. 

29. Offences by companies 
(1) Whenever an offence under this Act has been committed by a Company, every 

person who at the time of the commission of the offence was in charge of, or 
was responsible to the Company for the conduct of the business of the 
Company. shall deemed to be guilty of the offences and shall he liable to be 
proceeded against and punished accordingly. 



24 	
The Nagaland Gazette, Part-V 	May 31, 2023  

(2) No iihstanding anything contained in sub-section (1), where an offence 
under this Act has been committed with the convent or connivance of. or is 
attributable to any neglect on the part of any Director. Manager. Secretary or 
other officer of the Company. such Director. Manager, Secretary or other 

O
fficer shall be deemed to be guilty of that offences 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 under 
this Act. if he proves that offence was committed without his knowledge or 
that he exercised all due diligence to prevent the commission of such offence. 

Explanation- For the purpose of this section- 

(a) "Company" means any corporate body and includes a firm or other 

association of individuals and 

(b) "Director" in relation to a firm. means a partner in the firm. 

30. Appeals 
(1) Any person aggrieved by an order of the ollicer exercising powers delegated 

under this Act may. within a period of 30 uhirty) days from the date of such 

order. on payment of such fees as may be precrihed. prefer an appeal to the 

State Government; 
Provided that the State Government may entertain an appeal after the 

expiry of the said period of 30 (thirty) days, if satisfied that the applicant was 
prevented by sufficient cause from filing the appeals within time. 

(2) On receipt of an appeal under sub-section (1) the Stale Government shall after 

giving the appellant an opportunity of being heard, dispose off the appeal as 
expeditiously as possible but not later than 6 (six) months and the decision of 

the State Government shall be final. 

31. Powers to make rules 
(1) The State Government may. by notification in the official Gazette, after 

previous publication, make rules for carrying out the purposes of this Act. 

(2) Every rule made under this section shall be laid, as soon as may be after it is 

made. before the Legislative Assembly thile it  is in session, and if before the 

expiry of the session In which is so laid or the session immediately following. 
Assembly agrees in making any notifications in the rules or Assembly agrees 

that the rules should not