The Punjab Dairy Development Board Act, 2000

 

GOVERNMENT OF PUNJAB 

 

DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS 

 

THE PUNJAB DAIRY DEVELOPMENT BOARD ACT, 2000 

 

(PUNJAB ACT 20 OF 2000) 

(As amended upto the 30th June, 2025) 

 

 

 

 
 

 

 

 

2025 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

THE PUNJAB DAIRY DEVELOPMENT BOARD ACT, 2000 

 

Sections                               CONTENTS 

1. Short title and commencement 

2. Definitions 

3. Establishment of the Board 

4. Headquarters 

5. Establishment of Executive Committee and its constitution 

6. Term of office  

7. Resignation  

8. Removal of a member 

9. Objectives of the Board 

10. Powers and functions of the Board 

11. Officers and employees of the Board 

12. Levy and collection of cess 

13. Constitution of the Fund 

14. Delegation  

15. Powers of State Government to issue directions to the Board 

16. Protection of action taken in good faith 

17. Power to make rules 

18. Power to make regulations 

19. Power to remove difficulties 

20. Repeal and saving 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

THE PUNJAB DAIRY DEVELOPMENT BOARD ACT, 2000 

(Punjab Act No. 20 of 2000) 

    [Received the assent of the Governor of Punjab on the 20th September, 

2000, and was first published for general information in the Punjab 

Government Gazette (Extraordinary), Legislative Supplement, dated the 20th 

October, 2000.]  

1 2 3 4 

Year No. Short title Whether repealed or otherwise 

affected by the legislation  

2000 20 The Punjab Dairy 

Development Board 

Act, 2000 

 

 Amended by Punjab Act No. 13 

of 2004 

 

1[An Act to provide for the creation of Punjab Dairy Development Board for 

providing milk producers with the opportunities of getting a fair return for 

their labour and investment and to improve the profitability of the Dairy 

Industry of the State and to frame policies and issue instructions for 

safeguarding the interests of the milk producers, milk processors, dairy 

marketers and consumers.] 

  BE it enacted by the Legislature of the State of Punjab in the Fifty- 

one year of the Republic of India as follows- 

1. (1) This Act may be called the Punjab Dairy Development Board 

Act, 2000. 

 

(2)  It shall come into force at once. 

 2. In this Act, unless the context otherwise requires:- 

(a) ‘Board’ means the Punjab Dairy Development Board 

established under section3; 

2[(aa)  “dairy marketer” means any person, group of persons, firm 

or a company engaged in the purchase or sale of milk or 

other dairy products including the import or export of 

processed milk and milk products:] 

  

                                                             
1 Substituted by Punjab Act No. 13 of 2004, Section 2 
2 Inserted by Punjab Act No. 13 of 2004, Section 3 

Definitions. 

Short title and 

commencement

. 



 

(b) ‘Fund’means the Dairy Development Fund constituted under 

section 13; 

(c) ‘State Government’ means the Government of the State of 

Punjab in the Department of Dairy Development; 

(d) ‘milk plant’ means a milk handling, processing or 

manufacturing unit registered under the Milk and Milk 

Products Order, 1992 of the Government of India; and 

  (e) ‘prescribed’ means prescribed by rules made under this Act. 

3. (1) That State Government may, by notification in the Official 

Gazette, establish for the purpose of carrying out the provisions of this 

Act, a Board to be called the Punjab Dairy Development Board. 
1[(2) The Board established under sub-section (I), shall consist of 

the following, namely: - 

(i) Chief Minister, Punjab; : Chairman 

(ii) Minister-in-charge of Animal Husbandry & 

Fisheries & Dairy Development; 

: Deputy Chairman 

(iii) Secretary to Government of Punjab, Department of 

Finance; 

: Ex-officio Director 

(iv) Secretary to Government of Punjab, Department of 

Dairy Development; 

: Ex-officio Member-

Secretary 

(v) Vice-Chancellor, Punjab Agricultural University, 

Ludhiana; 

: Ex-officio Director 

(vi) One representative of private milk plants and one 

representative of Co-operative milk plants located in 

the State of Punjab, to be nominated by the State 

Government; 

: Director 

(vii) Two representatives from the milk producers, to be 

nominated by the State Government; 

: Director 

(viii) One representative from the Punjab Dhojhi Union to 

be nominated by the State Government; and 

: Director 

(ix) One representative of Consumers Associations, to 

be nominated by the State Government. 

: Director] 

 

   

                                                             
1Substituted by Punjab Act No. 13 of 2004, Section 4 

Establishment  

of the Board. 

 



 

(3) The Board constituted in terms of sub-section (2), shall be a body 

corporate having perpetual succession and a common seal with powers, subject 

to the provisions of this Act, to acquire and dispose of properties both movable 

and immovable and shall, by the said name, sue and be sued. 

 (4) The State Government shall exercise superintendence and control 

over the Board and its employees and may call for such information as it may 

deem fit. 

 (5) Subject to the rules made under this Act, the Board may frame 

regulations for transacting business at its meetings and for such other matters as 

may be prescribed. 

 (6) Subject to the rules made under this Act, an estimate of annual 

income and expenditure of the Board for the ensuing year shall be prepared and 

passed by the Board. 

 (7) The Board shall within a period of six months after expiry of each 

financial year, submit to the State Government, a report in the prescribed 

manner giving true and full account of the previous financial year. 

4. The Board shall have its headquarters at Chandigarh or at 

suchother place, as may be notified by the State Government in the 

Official Gazette. 

 5. (1) The State Government may, by notification in the Official 

Gazette establish for monitoring and ensuring speedy implementation of the 

decision of the Board, a Committee to be called the 1[Executive Committee.] 

  (2) The 4[Executive Committee] established under sub-section 

(1) shall consist of the following, namely: - 

(i) Secretary to Government of Punjab, 

Department of Animal Husbandry & 

Fisheries & Dairy Development; 

: Chairman 

(ii) Vice-Chancellor, Punjab Agricultural 

University, Ludhiana; 

: Member 

(iii) Director, Animal Husbandry, Punjab; : Member 

(iv) Director, Dairy Development, Punjab; : Member 

(v) Managing Director, Milkfed, Punjab; and : Member 

(vi) Two non-Ex-officio Members of the 

Board to be nominated by the Board. 

: Members 

  (3) The 1[Executive Committee] shall meet as often as required 

and shall devise its own procedure to conduct its business. 

                                                             
1 Substituted for words “Steering Committee” by Punjab Act No. 13 of 2004, Section 5 

Headquarters 

Establishment 

of Executive 

Committee 

and its 

constitution. 



 

6. (1) The term of office of members other than the Ex-officio 

Members, shall be 2[one year.] 

  (2) Notwithstanding anything contained in sub-section (1), a 

member whose term of 6[one year]has expired shall, unless the State 

Government otherwise directs, continue to hold office till his successor is 

nominated. 

 7. Any member, other than the Ex-officio Member, may resign his 

office at any time by tendering his resignation in writing to the State 

Government, and such member shall be deemed to have vacated his office on 

the acceptance of the resignation by the State Government. 

 8. The State Government may, in the case of a member, other than an 

Ex-officio member, by an order in writing, by recording reasons thereof, 

remove any member from his office on the grounds that he. — 

 (i) has abused his position; 

(ii) has been convicted by a court of law for an offence involving 

moral turpitude or has otherwise become insane or of unsound 

mind; 

(iii) is guilty of misconduct which in the opinion of the State 

Government renders him ineligible for becoming a member; or 

(iv) has continuously absented himself from three consecutive meetings 

of the Board without the permission of the Board: 

  Provided that before issuing an order of removal, the State 

Government shall give such a member, a reasonable opportunity of being heard. 

3[9. The Board shall be an apex body for planning, organising and 

implementing the programmes of dairy development so as to promote dairy 

sector on modern, scientific and commercially viable lines to enhance the 

quality of milk and dairy products, make dairying a viable alternative vocation 

in the process of diversification of agriculture and source for the transformation 

of farmers’ economy by providing milk producers with the opportunities of 

getting a fair return for their labour and investment and to improve the 

profitability of dairy industry.] 

 

 

 

                                                                                                                                                                                              
1Substituted for words “Steering Committee” by Punjab Act No. 13 of 2004, Section 5 
2Substituted for words “three years” by Punjab Act No. 13 of 2004, Section 6 
3Substituted by Punjab Act No. 13 of 2004, Section 7 

Resignation. 

Removal 

of a 

member. 

Objectives 

of the 

Board. 

Term of 

office. 



 

 1[10. Subject to the provisions of this Act and the rules made thereunder, 

the Board shall exercise the following powers and perform the following 

functions, namely: -- 

(i) to function as an apex body for laying down policies, 

implementing programmes, making recommendations to the 

State Government and issuing directions to any organisation or 

agency of the State engaged in the dairy sector to achieve the 

objectives of the Board; 

(ii) to undertake, finance or participate in any project aimed at in 

making research in dairy and to develop dairy sector including 

introduction of and nurturing the latest technology in the field 

of dairy development; 

(iii) to undertake, finance or participate in any project aimed at in 

making improvement in quality of milk and milk products with 

an objective to make them qualitatively globally competitive; 

(iv) to plan and formulate policies for quick genetic upgradation and 

development of milch animals by arranging technology from 

abroad with the prior approval of the Government of India 

wherever necessary; 

(v) to make investigations into any matter relating to the 

production, processing or marketing of any dairy product 

including the cost of producing, processing or marketing that 

product and determine the purchase and sale price of milk and 

milk products; 

(vi) to enter into agreement with any State organization, National 

Dairy Development Board or any such International 

organization for the marketing of milk and other dairy products 

within or outside the country to provide for the coordinated 

marketing thereof and act as a nodal agency to facilitate export 

of milk and dairy products from the State of Punjab; 

(vii) to undertake and assist in the promotion of the use of milk and 

milk products, the improvement of their quality and variety and 

publication of information for wider publicity in relation to 

those products; 

(viii) to developmodern dairy farming technologies and systems for 

meeting the local demand of high-quality milk and promotion of 

the dairy industry for socio-economic upliftment of milk 

producers; 

(ix) to arrange and import new varieties of fodder seeds to enhance 

the availability of fodder crops and also equipment or 

machinery for their harvesting and conservation; 

(x) to plan and execute programmes within or outside the country 

of high-level education, research and training in dairy 

                                                             
1Substituted by Punjab Act No. 13 of 2004, Section 8 

Powers 

and 

functions 

of the 

Board. 

 



 

technology and animal husbandry including interactive training 

and exchange programmes; 

 

(xi) to formulate and implement Policies or programmes aimed at 

specifying the areas for the collection of milk for each milk 

plant; 

(xii) to promote registration of milch animals and Breed 

Associations; 

(xiii) to assist the farmers to establish dairy units within or outside the 

country depending upon the viable opportunities; 

(xiv) to promote village level ohilling-cum-marketing and 

development centers to maintain quality of milk; 

(xv) to secure funds from the Central Government, State 

Government or other agencies; 

(xvi) to secure donations; and 

(xvii) to exercise the necessary authority in respect of all matters, 

which are incidental and ancillary to the aforesaid for achieving 

the objectives of the Board.] 
 

 1[11. (1) The Chairman of the Executive Committee,establishedunder 

sub-section (2) of section 5, shall be the Chief Executive of the Board and he 

shall hold office so long as he continues to be the Ex-officio Member-Secretary 

of the Board. 

  (2) For carrying out its functions, the Board shall appoint 

persons, who are professionally qualified, either by taking them on deputation 

from the State Government, Public Sector Undertakings or Organisations or 

engage them on contract basis.] 

 2[12. ****] 

 3[13. (1) There shall be constituted a Fund to be called the 

‘PunjabDairy Development Fund’, which shall vest in the Board. The 

Fund shall have the following contributions, namely: - 

(i) a sum of money provided by the State Legislature by law out 

of the Consolidated Fund of the State constituting such 

proportion of the purchase tax on milk, as the State 

Legislature may think appropriate for being utilized for the 

purposes of this Act; 

(ii) all sums of money that may be provided by the Central 

Government, State Government or Local Authorities; 

(iii) all sums of money received by way of grants, donations, 

benefactions, bequests and transfers; and 

                                                             
1Substituted by Punjab Act No. 13 of 2004, Section 9 
2Omitted by Punjab Act No. 13 of 2004, Section 10 
3Substituted by Punjab Act No. 13 of 2004, Section 11 

Officers and 

employees 

of the 

Board. 

Constitution 

of the Fund. 



 

(iv) all such sums of money as may be received by the Board in 

any other manner and from any other source. 

 (2) The Fund shall be applied for achieving the objectives of the Board 

and meeting the expenditure to be incurred in relation thereto. 

 (3) The accounts of the Board shall be audited by an Auditor, duly 

qualified to act and to be appointed as an Auditor of Companies under the 

Companies Act, 1956 (Central Act 1 of 1956). The appointment of an Auditor 

and remuneration payable to him, shall be decided by the Board or the authority 

authorized by the Board in this behalf, on yearly basis. The Auditor so 

appointed, shall have at reasonable times an access to books, accounts and other 

documents of the Board.] 

 14. If the Board is of the opinion that it is expedient to do so, it may 

delegate its powers and functions assigned to it under this Act to any of its 

functionaries. 

 

 15. The State Government may, from time to time, issue to the 

Board such directions, as in its opinion, are necessary or expedient for 

carrying out the purposes of this Act and the rules made thereunder and the 

Board shall make compliance. 

 

16. No suit, prosecution or other legal proceedings shall lie against the State 

Government or any officer or employee of the State Government or the Board 

in respect of anything, which is in good faith done or intended to be done in 

pursuance of the provisions of this Act, rules or regulations made or any 

directions issued thereunder. 

 17. (1) The State Government may, by notification in the Official 

Gazette, make rules, carrying out the purposes of this Act. 

  (2) Without prejudice to the generality of the foregoing power, 

such rules may provide for. — 

  (a) the submission of report under sub-section (7) of section 3; 

  1[(b) ***] 

  (c) 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 the House of the State Legislature while it is in 

session for a total period of ten days, which may be comprised in one session or 

in two or more successive sessions and if, before the expiry of the session in 

which it is so laid or the successive session aforesaid, the House agrees in 

                                                             
1Omitted by Punjab Act No. 13 of 2004, Section 12 

Delegation. 

Powers of 

State 

Government 

to issue 

directions to 

the Board. 

Protection 

of action 

taken in 

good faith. 

Power to   
make 

rules. 



 

making any modification in the rule or the House agrees 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 

or omitted to be done under that rule. 

 18. (1) The Board may, from time to time, with the previous 

approval of the State Government, make regulations not inconsistent with the 

provisions of this Act and the rules framed thereunder, for the purposes of 

giving effect to the provisions of this Act. 

  (2) In particular and without prejudice to the generality of the 

foregoing power, such regulations may provide for. — 

   (a) transacting the meetings of the Board; and 

(b) determining the conditions of service of the officers 

and other employees of the Board and their functions 

and duties under section 11. 

 19. (1) If any difficulty arises in giving effect to the provisions of 

this Act or by reasons of anything contained in this Act or in any other 

enactment for the time being in force, the State Government may, as occasion 

arises, by order, direct that this Act shall during such period as may be specified 

in the order, but not extending beyond the expiry of two years from the date of 

commencement of this, Act, have effect subject to such adoption whether by 

way of modification, addition or omission, as it may deem to be necessary and 

expedient. 

  (2) Every order made under sub-section (1), shall, as soon as 

may be, after it is made, be laid before the State Legislature. 

 20. (1) The Punjab Dairy Development Board Ordinance,2000 (Punjab 

Ordinance no.8 of 2000) is hereby repealed. 

  (2)Notwithstanding such repeal, anything done or any action taken 

to in sub-section (1), shall be deemed to have been done or taken under this Act. 

Power to 

remove 

difficulties. 

Repeal 

and 

saving. 

Power to      

make       

regulation

s.