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Wednesday April 24, 2024

Tightening noose around millers: Punjab govt ready to amend Sugar Factories Act 1950

By Jawwad Rizvi
September 02, 2020

LAHORE: Punjab government will make amendments in Sugar Factories Control Act, 1950 to further tightening the noose around sugar millers by increasing the fines and imprisonment, making the offences under the act as non-bailable and cognizable.

According to proposed amendment in Section 21 of the Act XXII of 1950:-In the Act, in Section 21: ‘(a) In clause (a): (i) For the words “one year”, the words “three years” shall be substituted; and (ii) For the words ‘fifty thousand rupees”, the words “five million rupees” but shall not be less than one million rupees” be substituted. Provided that fine shall not be less than Rs5 million in case of repeated offence” (b) for clause (b), the following shall be substituted: “(b) Offences under the Act shall be non-bailable and cognizable”.

Earlier, it was (a) Subject to sub-section (aa), any person contravening the provisions of this Act or any order or rule made thereunder, shall be punishable with imprisonment for a term which may extend to one year or with fine which may extend to Rs50,000 or with both. Any person who fails to comply with the provisions of Section 16 or 16-A, or any direction issued thereunder, shall be punishable with imprisonment for a term which may extend to two years or with fine which may extend to twice the price of the sugarcane or twice the amount of quality premium due, as the case may be. (b) Offences under the Act shall be bailable and non-cognizable. Further, Section 22 of the Act it is proposed that, (a) Sub-sections (i) and (ii) shall be deleted.

Further, the sub-section (iii), for the words “Magistrate of the 1st Class”, the words “Magistrate Section 30” shall be substituted”. Previously, these sections are “(i) No prosecution shall be instituted under the Act, except upon a complaint made by or under the authority from the District Officer (Revenue) or Cane Commissioner or grower himself. (ii) Provided that an aggrieved person may make a complaint to the court of competent jurisdiction if on an application made by him, the collector or the Cane Commissioner fails to decide within 60 days whether or not the prosecution is to be instituted. (iii) No court inferior to that of a Magistrate of the 1st Class shall try any offence under this Act or any order or rule made thereunder”.

Punjab government has also proposed increasing the powers of the Cane Commissioner through amendments in the Section 13-A Powers of the Cane Commissioner to determine the liability of an occupier of a factory.

The proposed amendment is ‘(1) The Cane Commissioner shall determine the liability of the occupier of a factory for payment of cane price to a cane grower where a cane grower applies for the same. (2) When the Cane Commissioner makes a determination under Subsection (1) and the amount so determined is not paid within the prescribed time period, the amount shall be recoverable as arrears of land revenue under the Punjab Land Revenue Act, 1967 (XVII of 1967). (3) An amount recoverable as arrears of land revenue under subsection (3) shall be recovered by the Additional Cane Commissioner of the district concerned from an occupier of the factory and the recovered amount shall be paid to the cane grower in question. (4) The authority granted under subsections (1), (2) and (3) shall be deemed to have always been vested in the Cane Commissioner and the Additional Cane Commissioner as the case may be”.

Earlier, the section given power as under: The Cane Commissioner shall be deemed to have powers of a (Collector/DCO) under the Punjab Land Revenue Act, 1887, and the Punjab Tenancy Act 1887 (or any other enactment relating to Land Revenue and tenancy in force in any part of the province).

Similarly, in the Section 2, the following sub section f-1 shall be inserted: “Cane Purchase Receipt (CPR)” means receipt of cane purchased by an occupier of a factory or a purchasing agent mentioning weight and price for cane purchased from a particular cane-grower. Earlier, this definition of the CPR did not exist in the Act.

Further amendments in the sub section (2) of section 13 is proposed with the suggestion of substituting ‘the Occupier of a factory shall purchase cane from grower or cane-growers’ Cooperative Society, as the case may be, against Cane Purchase Receipt (CPR) at the rate notified under Section 16 of the Act and shall make payment to the grower through bank directly into the bank account of the grower. Whereas deleting the Section 13(5) is proposed.

The Section 13(5) of the existing Act stated that “during the crushing season, the provincial government may if it is satisfied that there is likely to be in the area reserved for a factory any quantity of cane available for sale to the occupier of the factory in excess of the quantity for which he is required to enter into an agreement, direct that cane shall not be purchased outside reserved area until the occupier of factory enters into agreements to purchase all the cane offered to him in the reserved area”. After deleting the section, the growers will be free to sell their crop anywhere other than the reserved factory area.

Similarly, the sub section (ii) of section 14 shall be substituted: the occupier of a factory shall purchase cane from the cane-growers or from Cane-growers’ Cooperative Society or purchasing agents, duly authorised by the Cane Commissioner, and shall issue Cane Purchase Receipts to Cane-growers or Cane-growers’ Cooperative Society, as the case may be, provided that purchasing agent nominated by the occupier of a factory shall also issue Cane Purchase Receipts of the sugar factory for purchase of cane from the growers as prescribed under the rules.

Further, following sub section (iii) of section 14 shall be substituted: If occupier of a factory enters into an agreement with a purchasing agent for purchase of cane, the purchasing agent shall issue Cane Purchase Receipts of the sugar factory for purchase of cane from growers and shall be liable to pay to the growers for the cane purchased from them through bank as prescribed under the rules, whereas deletion of the Section 14(iv) is proposed from the existing Act.

The Section 14(iv) of the existing Act states as “If the cane-growers or Cane-Growers’ Cooperative Societies in the assigned area are not willing to enter into agreements to supply, the Cane Commissioner may by an order in writing require them to do so on such terms and conditions as may be prescribed by him, which shall be legally binding on the cane-growers or the Cane-Growers’ Cooperative Societies, as the case may be”.