THE COCONUT DEVELOPMENT BOARD ACT, 1979

No.5 of 1979
(17th March 1979)

(As amended up to 27.08.2021)

An Act to provide for the development under the control of the Union of the
coconut industry and for matters connected therewith.
Be it enacted by Parliament in the Thirtieth Year of the Republic of India as
follows:

CHAPTER I
PRELIMINARY

1. (1) This Act may be called the Coconut Development Board Act, 1979. Short title,
extent and
(2) It extends to the whole of India. commence-
ment
*(3) The Central Government hereby appoints the 12th day of January 1981 as
the date on which the said Act shall come into force.
#(4) The Coconut Development Board (Amendment) Act, 2021 (22 of
2021),,($)the Central Government hereby appoints the 1st day of
September, 2021 as the date on which the provisions of the said Act shall
come into force.

2. It is hereby declared that it is expedient in the public interest that the Union Declaration
should take under its control the coconut industry. as to
expediency of
control by the
Union
3. In this Act, unless the context otherwise requires - Definitions
(a) “Board” means the Coconut Development Board established under
section.4;
#(b) “Chairman” means the non-executive Chairman of the Board appointed
under clause (a)of sub-section (4) of section 4;
#(ba) “Chief Executive Officer” means the Chief Executive Officer of the
Board appointed under sub-section (1) of section 7;
*Vide G.S.R.13(E) dated 12.01.1981 published in the Gazette of India: Extraordinary, Part II -
Section 3 - Sub Section (i).
#Vide CG-DL-E-09082021-228830 dated 07.08.2021 published in the Gazette of India:
Extraordinary, Part II- Section 1.
$Vide S.O 3514 (E) dated 27.08.2021 published in the Gazette of India: Extraordinary, Part II-
Section 3 Sub section (ii).

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 (c) “Coconut” means the fruit of coconut palm and includes green coconut,
ripe coconut and copra.
Explanation - “Coconut palm” means the coconut tree,
Cocos nucifera Linn;
(d) “Coconut industry” does not include –
(i) coir industry; or
(ii) an industry from which products (including by-products) out of
coconut oil are manufactured;
(e) “member” means a member of the Board and includes the Chairman;
(f) “prescribed” means prescribed by rules made under this Act.

CHAPTER II
THE COCONUT DEVELOPMENT BOARD
Establishment 4. (1) With effect from such date as the Central Government may, by notification
and
constitution in the Official Gazette appoint in this behalf, there shall be established for the purposes
of the Board of this Act, a Board to be called the Coconut Development Board.
(2) The Board shall be a body corporate by the name aforesaid, having perpetual
succession and 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.
^(3) The Central Government hereby specifies that the Head Office of the Board
shall be at Cochin in the State of Kerala.
(4) The Board shall consist of the following members, namely:-
#(a) a non-executive Chairman, to be appointed by the Central
Government;
# (aa) the Chief Executive Officer, to be appointed by the Central
Government;
# (ab) the Joint Secretary to the Government of India, in-charge of
Mission for Integrated Development of Horticulture, ex officio;
**(b) the Horticulture Commissioner to the Government of India;
ex.officio;

^Vide G.S.R.12(E) dated 12.01.1981 published in the Gazette of India: Extraordinary, Part II -
Section 3 - Sub Section (i).
**Substituted by the Coconut Development Board [Amendment Act, 1987 (No.21 of 1987)] dated
05.08.1987.
#Vide CG-DL-E-09082021-228830 dated 07.08.2021 published in the Gazette of India:
Extraordinary, Part II- Section 1.

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 (c) the Director, Central Plantation Crops Research Institute (Indian Council
of Agricultural Research); ex officio;
(d) the Chairman of the Coir Board constituted under section 4 of the
CoirIndustry Act, 1953; ex officio;
(e) three members of Parliament of whom two shall be elected by the House
of the People and one by the Council of States;
(f) two members to be appointed by Central Government to represent
respectively the Ministries of the Central Government dealing with -
(i) Revenue; and
#(ii) Consumer Affairs;
#(g) four members to be appointed by the Central Government one each to
represent the Governments of the States of Andhra Pradesh, Karnataka,
Kerala and Tamilnadu, being States where coconut is grown on a large
scale;
#(h) four members to be appointed by the Central Government by rotation in
the alphabetical order to represent the States of Assam, Bihar,
Chhattisgarh, Goa, Gujarat, Maharashtra, Nagaland, Odisha, Telangana,
Tripura, West Bengal and the Union Territories of Andaman and
Nicobar Islands, Lakshadweep and Puducherry;
#(i) six members to be appointed by the Central Government, two to
represent the coconut growers of the State of Kerala and one each to
represent the coconut growers of the States of Andhra Pradesh, Gujarat,
Karnataka and Tamilnadu;
(j) one member to be appointed by the Central Government to represent the
coconut processing industry;
(k) two members to be appointed by the Central Government to represent
such other interests connected with the coconut industry as, in the
opinion of that Government, ought to be represented;
Provided that every appointment under clauses (g) and (h) shall be made on the
recommendation of the State Government or, as the case may be, of the Union Territory
concerned.
(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.

#Vide CG-DL-E-09082021-228830 dated 07.08.2021 published in the Gazette of India:

Extraordinary, Part II- Section 1.

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 (7) Any officer of the Central Government, not being a member of the Board,
when deputed by that 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 be entitled
to vote.
(8) The Board may associate with itself in such manner, subject to such
conditions and for such purposes as may be prescribed, any person 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 and shall
be entitled to receive such allowances or fees as may be fixed by the Central
Government.
(9) No act or proceeding of the Board or any committee appointed by it under
section 9 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.
(10) The Board shall meet at such times and places and shall observe such rules
of procedure in regard to the transaction of business at its meetings (including the
quorum at meetings) as may be provided by regulations made by the Board under this
Act.
Allowances #5. The Chairman and members of the Board shall receive such allowances as may
payable to
be fixed by the Central Government.
Chairman and
Members

Resignation 6. A member, other than ex-officio member, may resign his office by giving notice
of Members thereof in writing to the Central Government and on such resignation being accepted, he
shall be deemed to have vacated his office.
Officers of the #7. (1) There shall be a Chief Executive Officer of the Board, not below the rank of
Board and Joint Secretary to the Government of India, to be appointed by the Central Government.
other staff
#(1A) The Chief Executive Officer shall exercise such powers and perform such
duties as may be prescribed.
#(1B) The salaries and allowances payable to, and other conditions of service of,
the Chief Executive Officer shall be such as may be prescribed.

#Vide CG-DL-E-09082021-228830 dated 07.08.2021 published in the Gazette of India:

Extraordinary, Part II- Section 1.

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 #(2) The Central Government shall appoint a Chief Coconut Development
Officer to exercise such powers and perform such duties as may be prescribed or as may
be delegated to him by the Chief Executive Officer.
(3) The Chief Coconut Development Officer appointed under sub-section (2)
shall have the right to attend the meetings of the Board and its committees appointed
under section 9 and take part in the proceedings thereof but shall not be entitled to vote.
#(4) The Central Government shall appoint a Secretary to the Board who shall
exercise such powers and perform such duties as may be prescribed or as may be
delegated to him by the Board or the Chief Executive Officer.
#(5) The Chief Executive Officer, Chief Coconut Development Officer and the
Secretary shall be entitled to such salary and allowances and shall be subject to 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) Subject to such control and restrictions as may be prescribed, the Board may
appoint such other officers and employees as may be necessary for the efficient
performance of its functions and the method of appointment, the conditions of service
and the scales of pay and allowances of such other officers and employees of the Board
shall be such as may be provided by the Board by regulations made under this Act.
#(7) The Chief Executive Officer, the Chief Coconut Development Officer, 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.
8. (1) On the establishment of the Board, it shall be lawful for the Central Special
Government to transfer to the Board, by order, and with effect from such date or dates provision for
as may be specified in the order, any officer or other employee holding office as such in transfer of
employees to
the Directorate of Coconut Development immediately before the date on which the the Board
Board is established:
Provided that the scale of pay of the post to which such officer or other
employee is transferred shall not be lower than the scale of pay of the post he was
holding immediately before such transfer and the other terms and conditions of service
(including pension, leave, provident fund and medical benefits) of the post to which he
is transferred shall not be less favourable than the terms and conditions of service in
relation to the post held by him immediately before such transfer:
Provided further that if, immediately before the date of his transfer, any such
officer or other employee is officiating in a higher post under the Central Government
either in a leave vacancy or in any vacancy of specified duration, his pay and other
allowances, if any, on transfer, shall be protected for the unexpired period of such
vacancy and thereafter he shall be entitled to the scale of pay applicable to the post
under the Central Government to which he would have reverted.

#Vide CG-DL-E-09082021-228830 dated 07.08.2021 published in the Gazette of India:

Extraordinary, Part II- Section 1.

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 (2) Before any order is issued under sub-section (1), all officers and other
employees of the Directorate of Coconut Development shall be given an option in such
form as may be prescribed, and within such time as may be specified in that behalf by
the Central Government, to express their willingness or otherwise to become employees
of the Board and such option once exercised shall be final:
Provided that no order under sub-section (1) shall be made in relation to any
officer or other employee of the Directorate of Coconut Development who has
intimated his intention of not becoming an employee of the Board within the time
specified in that behalf:
Provided further that such of the persons employed by the Central Government
in the said Directorate, who do not express, within the time specified in that behalf, their
intention of becoming the employees of the Board, shall be dealt with in the same
manner and in accordance with the same rules as would apply to the employees of the
Central Government in the event of the reduction of the strength of the Department in
which such persons have been employed.
(3) An officer or other employee transferred by an order made under sub-section
(1) shall, on and from the date of transfer, cease to be an employee of the Central
Government and become an officer or other employee of the Board with such
designation as the Board may determine and shall, subject to the provisions of the first
and second provisos to sub-section (1), be governed by the regulations made by the
Board under this Act in respect of remuneration and other conditions of service
(including pension, leave, provident fund and medical benefits) and shall continue to be
an officer or other employee of the Board unless and until his employment is duly
terminated by the Board:
Provided that till such time as the regulations referred to above governing the
conditions of service of its officers or other employees are framed by the Board, the
relevant rules and orders framed by the Central Government shall continue to be
applicable to such officers or other employees.
(4) If a question arises whether the terms and conditions of service prescribed in
the regulations framed by the Board in respect of any matter, including remuneration,
pension, leave, provident fund and medical benefits, are less favourable than those
attached to the post held by an officer or other employee immediately before his transfer
to the Board the decision of the Central Government in the matter shall be final.
Committees 9. (1) The Board may appoint such committees as may be necessary for the
of the Board 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
meetings of the committee and take part in its proceedings but shall not have the right to
vote.

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 (3) The persons co-opted as members of a committee under sub-section (2) shall
be entitled to receive such allowances or fees for attending meetings of the committee
as may be fixed by the Central Government.
10. (1) It shall be the duty of the Board to promote, by such measures as it thinks fit, Functions of
the development under the control of the Central Government of the coconut industry. the Board

(2) Without prejudice to the generality of the provisions of sub-section (1), the
measures referred to therein may provide for -
(a) adopting measures for the development of coconut industry so that
farmers, particularly small farmers, may become participants in and
beneficiaries of, the development and growth of coconut industry;
#(b) recommending measures for improving the marketing of coconut and its
products within or outside India;
(c) imparting technical advice to any person who is engaged in the
cultivation of coconut or the processing or marketing of coconut and its
products;
(d) providing financial or other assistance for the development of high
yielding coconut hybrids, adoption of improved methods of cultivation of
coconut, modern technology for processing of coconut and extension of
areas under coconut cultivation (including replanting) with a view to
improving the growth of coconut industry;
(e) adopting such measures as may be practicable for assisting coconut
growers to get incentive prices including recommending, as and when
necessary, minimum and maximum prices for coconut and its products;
(f) recommending measures for regulating import and export of coconut and
its products;
(g) collecting statistics from growers of coconut, dealers in coconut,
manufacturers of coconut products and such other persons and institutions
as may be prescribed, on any matter relating to coconut industry and
publishing the statistics so collected or portions thereof or extracts
therefrom;
(h) fixing grades, specifications and standards for coconut and its products;
#(i) financing suitable schemes in consultation with the Central Governments
and the Government of the States where coconut is grown, so as to
increase the production of coconut and to improve its quality and yield;
and for this purpose evolving schemes for award of prizes or grant of
incentives to growers of coconut and the manufacturers of its products
and for providing marketing facilities for coconut and its products;
#Vide CG-DL-E-09082021-228830 dated 07.08.2021 published in the Gazette of India:
Extraordinary, Part II- Section 1.

7
 (j) assisting, encouraging, promoting or financing agricultural,
technological, industrial or economic research on coconut and its
products in such manner as the Board may deem fit by making use of
available institutions;
(k) undertaking such publicity and publishing such periodicals, books or
bulletins, on the research and development of coconut and its products, as
may be found necessary;
(l) setting up of regional offices and other agencies for the promotion and
development of production; grading and marketing of coconut and its
products in coconut growing States and Union territories for the efficient
discharge of the functions and objectives of the Board;
(m) such other measures as may, having regard to the purposes of this Act, be
prescribed by the Central Government in consultation with the
Governments of the States where coconut is grown on a large scale.
(3) 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.
Dissolution of 11. (1) The Central Government may, by notification in the Official Gazette and for
the Board
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;
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 provisions of sub- section (l), -
(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
and their remuneration shall be such as may be prescribed;
(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.

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 CHAPTER III
FINANCE, ACCOUNTS AND AUDIT

12. The Central Government may, after due appropriation made by Parliament by Grants and
law in this behalf, pay to the Board by way of grants or loans such sums of money as loans by the
the Central Government may think fit for being utilized for the purposes of this Act. Central
Government

13. (1) There shall be formed a Fund to be called the Coconut Development Fund Constitution
and there shall be credited thereto - of Coconut
Development
§(a) Omitted. Board
(b) any grants or loans granted by the Central Government for the purposes
of this Act;
(c) any grants or loans that may be made by any person for the purposes of
this Act including loans under section 14;
(d) any grants or donations from State Governments, voluntary
organizations or other institutions:
Provided that no such grant, loan or donation shall be credited to the Fund
except with the prior approval of the Central Government.
(2) The Fund shall be applied –
(a) for meeting the cost of the measures referred to in section 10;
(b) for meeting the salaries, allowances and other remuneration of the
members, officers and other employees, as the case may be of the
Board;
(c) for meeting the other administrative expenses of the Board and any other
expenses authorized by or under this Act;
(d) for repayment of any loans.
14. (1) The Board may, for the purposes of carrying out its functions under this Act, Borrowing
and with the previous approval of, and subject to the directions of the Central powers of the
Government, borrow money from – Board

(a) the public by the issue or sale of bonds or debentures or both, carrying
interest at such rates as may be specified therein;
(b) any bank or other institution;
(c) such other authority, organization or institution as may be approved by
the Central Government in this behalf.
(2) The Central Government may guarantee the repayment of the monies
borrowed by the Board under sub-section (1) and the payment of interest thereon and
other incidental charges.
§Omitted by the Cotton, Copra and Vegetable oils Cess (Abolition) Act, 1987 (4 of 1987)
dated 21.03.1987.

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Accounts and 15. (1) The Board shall maintain proper accounts and other relevant records and
Audit prepare an annual statement of accounts in such form as may be prescribed by the
Central Government in consultation with the Comptroller and Auditor General of India.

(2) The accounts of the Board shall be audited by the Comptroller and Auditor
General of India at such intervals as may be specified by him and any expenditure
incurred in connection with such audit shall be payable by the Board to the Comptroller
and Auditor General.

(3) The Comptroller and Auditor General of India and any person appointed by
him in connection with the audit of the accounts of the Board shall have the same rights
and privileges and authority in connection with such audit as the Comptroller and
Auditor General generally has in connection with the audit of the Government accounts
and, in particular, shall have the right to demand the production of books, accounts,
connected vouchers and other documents and papers and to inspect any of the offices of
the Board.

(4) The accounts of the Board as certified by the Comptroller and Auditor
General of India or any other person appointed by him in this behalf together with the
audit report thereon shall be forwarded annually to the Central Government and that
Government shall cause the same to be laid before each House of Parliament.

CHAPTER IV
CONTROL BY CENTRAL GOVERNMENT

Directions by 16. The Board shall carry out such directions as may be issued to it from time to
Central
Government
time by the Central Government for the efficient administration of this Act.

Returns and 17. (1) The Board shall furnish to the Central Government at such time and in such
Reports
form and manner as may be prescribed or as the Central Government may direct, such
returns and statements and such particulars in regard to any proposed or existing
programme for the promotion and development of the coconut industry, as the Central
Government may, from time to time, require.
(2) The Board shall furnish a programme of its activities for each financial year
to the Central Government for their information and directions, if any.
(3) Without prejudice to the provisions of sub-section (1), the Board shall, as
soon as possible, after the end of each financial year, submit to the Central Government
a report in such form and before such date, as may be prescribed, giving a true and full
account of its activities, policy and programmes during the previous financial year.
(4) A copy of the report received under sub-section (3) shall be laid, as soon as
may be, after it is received, before each House of Parliament.

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 CHAPTER V
MISCELLANEOUS

18. No suit, prosecution or other legal proceeding shall lie against the Central Protection of
Government, or the Board or any committee appointed by it, or any member of the action taken
in good faith
Board or such committee, or any officer or other employee of the Central Government
or of the Board or any other person authorized by the Central Government or the Board,
for anything which is in good faith done or intended to be done under this Act or the
rules made thereunder.

19. (1) The Central Government may, by notification in the Official Gazette, make Power to
rules to carry out the provisions of this Act. make rules
(2) In particular and without prejudice to the generality of the foregoing power,
such rules may provide for all or any of the following matters, namely:-
(a) the powers which may be exercised and functions which may be
performed by the Vice-Chairman of the Board under sub-section (5) of
the section 4;
(b) the term of office of the members, the manner of filling vacancies
among, and the procedure to be followed in the discharge of their
functions by, the members, under sub-section (6) of section 4;
(c) the manner in which and the purposes for which any person may be
associated by the Board under sub-section (8) of section 4;
#(d) the powers to be exercised and the duties to be performed by the Chief
Executive Officer under sub-section (1A) of section 7;
#(da) the salaries and allowances payable to, and other conditions of service
of, the Chief Executive Officer under sub-section (1B) of section 7;
(e) the powers which may be exercised and the duties which may be
performed by the Chief Coconut Development Officer of the Board
under sub-section (2) of section 7;
(f) the powers which may be exercised and the duties which may be
performed by the Secretary of the Board under sub-section (4) of section
7;
(g) the control and restrictions subject to which officers and other employees
may be appointed by the Board under sub-section (6) of section 7;

#Vide CG-DL-E-09082021-228830 dated 07.08.2021 published in the Gazette of India:

Extraordinary, Part II- Section 1.

11
 (h) the form in which option may be given by the officers and other
employees of the Directorate of Coconut Development under sub-section
(2) of section 8;
(i) the collection of statistics in respect of any matter relating to coconut
industry under clause (g) of sub-section (2) of section 10;
(j) the matters in respect of which the Board may undertake measures in the
discharge of its functions under clause (m) of sub-section (2) of section
10;
(k) the remuneration and other allowances payable to the person or persons
referred to in clause (b) of sub-section (2) of section 11;
(l) the form in which the accounts of the Board shall be maintained under
sub-section (1) of section 15;
(m) the form and manner in which and the time at which the Board may
furnish returns and reports to the Central Government under sub-section
(1) of section 17;
(n) the form in which and the date before which the Board shall furnish to the
Central Government the report of its activities and programmes under
sub-section (3) of section 17;
(o) any other matter which has to be, or may be, prescribed by rules under
this Act.
Power to
make 20. (1) The Board may, with the previous sanction of the Central Government, by
regulations notification in the Official Gazette, make regulations not inconsistent with the
provisions of this Act and the rules made thereunder, to provide for all matters for
which provision is necessary or expedient for the purposes of giving effect to the
provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing powers,
such regulations may provide for all or any of the following matters, namely:-
(a) the times and places at which meetings of the Board or any
committee thereof, shall be held and procedure to be followed
thereat, and the number of members which shall form a quorum
at a meeting under sub-section (10) of section 4;
(b) the method of appointment, the conditions of service and the
scales of pay and allowances of any of the officers and other
employees of the Board under sub-section (6) of section 7;
(c) generally, for the efficient conduct of the affairs of the Board.

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 (3) The Central Government may by, notification in the Official Gazette, modify
or rescind any regulation sanctioned by it and the regulation so modified or rescinded
shall have effect only in such modified form or be of no effect, as the case may be; so
however, that any such modification or rescission shall be without prejudice to the
validity of anything done under the regulation before its modification or rescission.
21. Every rule and every regulation made under this Act shall be laid, as soon as Rules and
may be after it is made, before each House of Parliament, while it is in session, for a regulations to
total period of thirty days which may be comprised in one session, or in two or more be laid before
Parliament
successive sessions, and if, before the expiry of the session immediately following the
session or the successive sessions, aforesaid, both Houses agree in making any
modification in the rule or regulation, as the case may be, or both Houses agree that the
rule or regulation, as the case may be, should not be made, the rule or regulation 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 under that rule or regulation.

R. V. S. PERI SASTRI,
Secy. to the Govt. of India

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