4. Establishment and constitution of the Board.—(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 Board to be called the Tobacco Board.
1. 28th August, 1976, vide notification No. S.O. 3141, dated 20th August, 1976, see Gazette of India, Extraordinary, Part II,
sec. 3(ii).
This Act has been extended to the States of Andhra Pradesh and Karnataka in respect of ss. 10 and 11 and ss. 12, 14 and 15
in the whole of India.
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(2) The Board shall be a body corporate by the name aforesaid, having perpetual succession and a
common seal, with power to acquire, hold and dispose of property, both movable and immovable, and to
contract, and shall by the said name sue and be sued.
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[(3) The head office of the Board shall be at Guntur in the State of Andhra Pradesh and the Board
may, with the previous approval of the Central Government, establish offices or agencies at other places
in or outside India.]
(4) The Board shall consist of the following members, namely:—
(a) a Chairman to be appointed by the Central Government;
(b) three members of Parliament, of whom two shall be elected by the House of the People and
one by the Council of States;
(c) 2
[eight] members to be appointed by the Central Government to represent respectively:—
(i) the Ministry of the Central Government dealing with Agriculture;
(ii) the Ministry of the Central Government dealing with Commerce;
(iii) the Ministry of the Central Government dealing with Finance;
(iv) the Ministry of the Central Government dealing with Industrial Development;
(v) the Indian Council of Agricultural Research;
(vi) the Government of Andhra Pradesh; 3
***
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[(via) the Government of Gujarat; and]
(vii) the Government of Karnataka;
(d) two members to be appointed by the Central Government, by rotation in the alphabetical
order, to represent the Governments of tobacco-growing States 5
[other than the States of Andhra
Pradesh, Gujarat and Karnataka];
(e) not more than 6
[ten members] to be appointed by the Central Government from amongst
growers of tobacco, dealers and exporters (including packers) of tobacco and tobacco products,
manufacturers of tobacco products and from amongst persons who, in the opinion of the Central
Government, are experts in tobacco marketing or agricultural economics:
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[Provided that the number of members appointed under this clause from amongst the growers of
tobacco shall not exceed six.]
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[(f) the Agricultural Marketing Adviser to the Government of India, Department of Rural
Development, ex officio;
(g) the Executive Director, ex officio.]
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[(4A) 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) The Board shall elect, from amongst 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.
(6) The term of office of the members and the manner of filling vacancies among, and the procedure
to be followed in the discharge of their functions by, the members shall be such as may be prescribed.
1. Subs. by Act 36 of 1978, s. 2, for sub-section (3) (w.e.f. 30-8-1978).
2. Subs. by s. 2, ibid., for “seven” (w.e.f. 30-8-1978).
3. The word “and” omitted by s. 2, ibid. (w.e.f. 30-8-1978).
4. Ins. by s. 2, ibid. (w.e.f. 30-8-1978).
5. Subs. by s. 2, ibid., for “other than the States of Andhra Pradesh and Karnataka” (w.e.f. 30-8-1978).
6. Subs. by Act 57 of 1985, s. 2, for “eight members” (w.e.f. 1-12-1985).
7. Ins. by s. 2, ibid. (w.e.f. 1-12-1985).
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(7) 1
[Any officer] of the Central Government (not being a member of the Board) as is deputed by the
Central 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 have the right to vote.
(8) The Board may associate with itself, in such manner and for such purposes as may be prescribed,
any persons whose assistance or advice it may desire in complying with any of the provisions of this Act
and a person so associated shall have the right to take part in the discussions of the Board relevant to the
purposes for which he has been associated, but shall not have the right to vote.
(9) No act or proceeding of the Board or any committee appointed by it under section 7 shall be
invalidated merely by reason of—
(a) any vacancy in, or any defect in the constitution of, the Board or such committee; or
(b) any defect in the appointment of a person acting as a member of the Board or such committee;
or
(c) any irregularity in the procedure of the Board or such committee not affecting the merits of
the case.
5. Salary and allowances and other conditions of service of Chairman.—The Chairman shall be
entitled to such salary and allowances and 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.
6. Officers of the Board and other staff.—(1) The Central Government shall appoint an Executive
Director to exercise such powers and perform such duties under the Chairman as may be prescribed or as
may be delegated to him by the Chairman.
(2) The Central Government shall appoint a Secretary to the Board to exercise such powers and
perform such duties under the Chairman as may be prescribed or as may be delegated to him by the
Chairman.
(3) The Executive Director and the Secretary shall be entitled to such salaries and allowances and
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.
(4) Subject to such control, restrictions and conditions (including conditions as to appointment of the
officers and other employees of the Tobacco Export Promotion Council, in the event of the said Council
being wound up) as may be prescribed, the Board may appoint such other officers and employees as may
be necessary for the efficient performance of its functions.
(5) The Chairman, the Executive Director, the Secretary and other officers and employees of the
Board 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.—(1) The Board may appoint such committees as may be necessary for
the efficient discharge of its duties and performance of its functions under this Act.
(2) The Board shall have the power to co-opt as members of any committee appointed under
sub-section (1) such number of persons who are not members of the Board as it may think fit and the
persons so co-opted shall have the right to attend the meetings of the committee and take part in the
proceedings of the committee but shall not have the right to vote.
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 under the control of the Central Government of the tobacco industry.
(2) Without prejudice to the generality of the provisions of sub-section (1), the measures referred to
therein may provide for—
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[(a) regulating the production and curing of virginia tobacco having regard to the following
factors, namely:—
(i) the demand for virginia tobacco in India and abroad;
1. Subs. byAct 57 of 1985, s. 2, for “The Executive Director and any such officer” (w.e.f. 1-12-1985).
2. Subs. by s. 3, ibid., for clause (a) (w.e.f. 1-12-1985).
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(ii) the suitability of land for growing virginia tobacco;
(iii) the differences in soil characteristics and agro-climatic factors in different regions of the
country where virginia tobacco is grown and the effect thereof on the quality and quantity of
virginia tobacco produced in those regions;
(iv) the marketability of different types of virginia tobacco;
(v) the need for rotation of crops; and
(vi) the nature of the holdings of the growers of virginia tobacco whether owned or leased;]
(b) keeping a constant watch on the virginia tobacco market, both in India and abroad, and
ensuring that the growers get a fair and remunerative price for the same and that there are no wide
fluctuations in the prices of the commodity;
(c) maintenance and improvement of existing markets, and development of new markets outside
India for Indian virginia tobacco and its products and devising of marketing strategy in consonance
with demand for the commodity outside India, including group marketing under limited brand names;
1
[(cc) establishment by the Board of auction platforms, with the previous approval of the Central
Government, for the sale of virginia tobacco by registered growers or curers, and functioning of the
Board as an auctioneer at auction platforms established by or registered with it subject to such
conditions as may be specified by the Central Government;]
(d) recommending to Central Government the minimum prices which may be fixed for purposes
of export of virginia tobacco with a view to avoiding unhealthy competition amongst the exporters;
(e) regulating in other respects virginia tobacco marketing in India and export of virginia tobacco
having due regard to the interests of growers, manufacturers and dealers and the nation;
(f) propagating information useful to the growers, dealers and exporters (including packers) of
virginia tobacco and manufacturers of virginia tobacco products and others concerned with virginia
tobacco and products thereof;
(g) purchasing virginia tobacco from growers when the same is considered necessary or expedient
for protecting the interests of the growers and disposal of the same in India or abroad as and when
considered appropriate;
(h) promoting the grading of tobacco at the level of growers;
(i) sponsoring, assisting, co-ordinating or encouraging scientific, technological and economic
research for the promotion of tobacco industry;
(j) such other matters as may be prescribed.
(3) Without prejudice to the generality of the provisions of sub-section (1) and subject to priority
being given to matters specified in sub-section (2), the measures referred to in sub-section (1) may also
provide in relation to tobacco, other than virginia tobacco, for all or any of the matters specified in
clauses (c) to (g) of sub-section (2) and for this purpose any reference in those clauses to virginia tobacco
shall be construed as including a reference to tobacco other than virginia tobacco.
(4) The Board shall perform its functions under this section in accordance with and subject to such
rules as may be made by the Central Government and such rules may in particular make provisions for
ensuring that the Board functions in close liaison with Union agencies, institutions and authorities
concerned with the tobacco industry (including growing of tobacco) and avoids duplication of effort.
9. Dissolution of the Board.—(1) The Central Government may, by notification in the Official
Gazette and for reasons to be specified therein, direct that the Board shall be dissolved from such date and
for such period as may be specified in the notification:
1. Ins. by Act 36 of 1978, s. 3 (w.e.f. 30-8-1978).
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Provided that before issuing any such notification, the Central Government shall give a reasonable
opportunity to the Board to make representations against the proposed dissolution and shall consider the
representations, if any, of the Board.
(2) When the Board is dissolved under the provisions of sub-section (1),—
(a) all members, notwithstanding that their term of office has not expired, shall, from the date of
dissolution, vacate their offices as such members;
(b) all powers and duties of the Board shall, during the period of dissolution, be exercised and
performed by such person or persons as the Central Government may appoint in this behalf;
(c) all funds and other properties vested in the Board shall, during the period of dissolution, vest
in the Central Government; and
(d) as soon as the period of dissolution expires, the Board shall be reconstituted in accordance
with the provisions of this Act.