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Core Purpose

The Central Government hereby makes the Agricultural and Processed Food Products Export Development Authority (Adjudication of Penalties) Rules, 2026, to establish procedures for the adjudication of penalties.

Detailed Summary

The Ministry of Commerce and Industry, under the Central Government, issued Notification G.S.R. 741(E) on August 19, 2026, establishing the Agricultural and Processed Food Products Export Development Authority (Adjudication of Penalties) Rules, 2026. These rules are enacted in exercise of powers conferred by clauses (ma) and (mb) of sub-section (2) of section 32 read with section 25A of the Agricultural and Processed Food Products Export Development Authority Act, 1985 (2 of 1986), and came into force on their publication date, August 19, 2026. The rules define key terms such as 'Act', 'adjudicating officer' (appointed by the Chairman under section 25A), and 'appellate authority' (the Chairman of the Authority under sub-section (2) of section 25A). Rule 3 outlines the inquiry process for penalty adjudication: upon receiving a complaint of contravention, the adjudicating officer issues a show cause notice (Form-I) with at least seven days for response. If an inquiry proceeds, a notice for appearance is issued, and the person is given an opportunity to present evidence. The adjudicating officer is not bound by the Bharatiya Sakshya Adhiniyam, 2023 (47 of 2023) during evidence taking, and proceedings must be completed within six months. Notices can be served by delivery, electronic form (as defined in the Information Technology Act, 2000 (21 of 2000)), speed post, or affixing. Rule 4 details the appeal process: an aggrieved person may appeal to the appellate authority in Form-II within thirty days of receiving the order, with provisions for late admission for sufficient cause. Appeals must include a copy of the order, statement of facts, and grounds for appeal, and are to be disposed of within sixty days. Rule 5 allows for extension of time periods for reasonable cause, and Rule 6 mandates that all penalties realised under these rules shall be credited to the Consolidated Fund of India.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-20082026-275625 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 675] NEW DELHI, WEDNESDAY, AUGUST 19, 2026/SHRAVAN 28, 1948 [F. No. 6/6/2024-EP (Agri. IV)] PRIYA P. NAIR, Economic Advisor MINISTRY OF COMMERCE AND INDUSTRY NOTIFICATION New Delhi, the 19th August, 2026 G.S.R. 741(E).— In exercise of the powers conferred by clauses (ma) and (mb) of sub-section (2) of section 32 read with section 25A of the Agricultural and Processed Food Products Export Development Authority Act, 1985 (2 of 1986), the Central Government, hereby, makes the following rules, namely:— 1. Short title and commencement. — These rules may be called the Agricultural and Processed Food Products Export Development Authority (Adjudication of Penalties) Rules, 2026. (2) They shall come into force on the date of their publication in the Official Gazette. 2. Definitions. — (1) In these rules, unless the context otherwise requires, — a. "Act" means the Agricultural and Processed Food Products Export Development Authority Act, 1985 (2 of 1986); b. "adjudicating officer" means an officer appointed by the Chairman under section 25A of the Act; c. "appellant" means an aggrieved person who prefer an appeal before the Appellate Authority; d. "appellate authority" means the Chairman of the Authority designated under sub-section (2) of section 25A of the Act; e. "complainant" means an aggrieved person who makes a complaint before the adjudicating officer; f. "form" means a form appended to these rules; g. "section" means section of the Act. (2) The words and expressions used in these rules and not defined, but defined in the Act, shall have the same meanings respectively assigned to them in the Act. 3. Holding of inquiry. — (1) For the purpose of adjudication of penalties under section 25A of the Act, on receipt of any complaint of any contravention of the provisions specified therein, the adjudicating officer shall, issue a notice in Form-I to such person, requiring him to show cause within such period as may be specified therein (being not less than seven days from the date of service thereof) as to why an inquiry should not be held against him. (2) Every notice under sub-rule (1) shall indicate the nature of contravention alleged to have been committed. (3) After considering the cause, if any, shown by such person, the adjudicating officer is of the opinion that an inquiry should be held, he shall issue a notice requiring the appearance of that person personally or through a representative duly authorised by him on such date and time as may be fixed in the notice. (4) On the date fixed, the adjudicating officer shall explain to the person proceeded against or his authorised representative, the contravention committed by such person and the provision of the Act, in respect of which contravention is alleged to have been committed. (5) The adjudicating officer shall give an opportunity to such person to produce documents or evidence as he may consider relevant to the inquiry and if necessary, the hearing may be adjourned to any other day (not later than fifteen days from the first date and up to a maximum of three dates) and in taking such evidence, the adjudicating officer shall not be bound to observe the provisions of the Bharatiya Sakshya Adhiniyam, 2023 (47 of 2023). (6) While holding an inquiry under these rules, the adjudicating officer may require and enforce the attendance of any person acquainted with the facts and circumstances of the case to give evidence or to produce any document which, in the opinion of the adjudicating officer may be useful for or relevant to the subject matter of the inquiry. (7) If any person fails, neglects or refuses to appear before the adjudicating officer as required under subrule (3), he may proceed with the inquiry in his absence after recording the reasons for doing so. (8) Upon consideration of the evidence, if the adjudicating officer is satisfied that the person has committed the contravention, he may by order in writing, impose such penalty under the provisions of the Act. (9) Every order made under sub-rule (8) shall specify the provisions of the Act in respect of which the contravention has been committed and the reasons for imposing the penalty. (10) A copy of the order made under this rule and all other copies of proceedings shall be furnished free of cost to the person against whom the inquiry was held. (11) The adjudicating officer shall complete the proceeding within six months from the issuance of the notice to the person against whom the inquiry was held. (12) A notice or an order issued under these rules shall be served on the person against whom an inquiry is held, in the following manner, namely:— a. by delivering or tendering it to that person or his authorised representative; or b. by sending it to the person through electronic form or by speed post with registration and proof of delivery to the address of his place of residence or his last known place of residence or the place where he carried on or last carried on, business or personally works or last worked for gain; or Explanation. - For the purposes of this clause, sub-rule (4) and sub-rule (9) of rule 4, the expression “electronic form" shall have the same meaning as assigned to it in clause (r) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000). c. if it cannot be served in the manner specified under clause (a) or clause (b), by affixing it on the outer door or some other conspicuous part of the premises in which that person resides or is known to have last resided or carried on business or personally works or has worked for gain. 4. Appeal. - (1) Any person aggrieved by an order of the adjudicating officer, may prefer an appeal to the appellate authority in Form- II. (2) The appeal shall be filed with the appellate authority within a period of thirty days from the date of receipt of the order: Provided that the appellate authority may admit the appeal after the expiry of the period of thirty days, if he is satisfied that that appellant was prevented by sufficient cause from filing appeal in time. (3) The appeal shall be accompanied by a copy of order issued under sub-rule (8) of rule 3 and a clear statement of facts appealed against, the grounds for appeal and the relevant section of the Act. (4) The appeal shall be filed by the appellant in person or by his duly authorised representative in writing duly appointed in this behalf, or by speed post with registration and proof of delivery or through electronic form. (5) The appeal sent by post shall be deemed to have been filed to the appellate authority on the day it is received. (6) If on scrutiny, the appeal is found to be in order, it shall be admitted and in case the appeal is found to be defective, the appellate authority shall intimate the appellant about the defects and allow him to rectify the defects within a period of fifteen days. (7) If the appellant fails to rectify the defects within the time period allowed under sub-rule (6), the appellate authority may by order and reasons to be recorded in writing, decline to register such appeal and communicate the order to the appellant within a period of seven days thereof. (8) On admission of the appeal, the appellate authority shall serve a copy of appeal upon the person against whom the appeal is sought along with a notice requiring him to file his reply thereto, within such period, not exceeding thirty days, as may be stipulated by the appellate authority in the said notice. (9) The notice may be served by hand or by speed post with registration and proof of delivery or through electronic form. (10) The appellate authority may call for the records relating to the proceedings from the respective adjudicating officer. (11) The appellate authority may, after giving the parties to the appeal an opportunity of being heard, pass such orders as he may consider reasonable. (12) The appellate authority shall dispose of the appeal within sixty days from the date of filing of appeal. 5. Extension of time. — The adjudicating officer or the appellate authority may, for reasons to be recorded in writing, where there is a reasonable cause for the delay or failure to act, extend any period specified in these rules till such period as he considers reasonable. 6. Order and penalties. — (1) Every order under these rules shall be signed and dated, and shall be communicated to all parties concerned. (2) All sums realised by way of penalties under these rules shall be credited to the Consolidated Fund of India. Form - I [See sub-rule (1) of rule 3] To Show cause notice Subject: - Contravention of the Agricultural and Processed Food Products Export Development Authority Act, 1985. Sir/Madam, As per intimation dated (copy enclosed), a contravention has been committed under section of the Agricultural and Processed Food Products Export Development Authority Act, 1985 at 2. The above contravention is liable for penalty. Therefore, you are required to show cause within a period of days of service of this notice, why an inquiry should not be initiated against you under section 25A of the Agricultural and Processed Food Products Export Development Authority Act, 1985 for imposition of penalty. In case, no reply is received within the given period, further action shall be taken under the said Act. Date and place............ Adjudicating officer Form - II Appeal [See sub-rule (1) of rule 4] To Appellate Authority, 1. Particulars of appellant: (i) Name: (ii) Address for correspondence: (iii) Contact No: (iv) E -mail: 2. Grounds of appeal: (A copy of order of adjudicating officer to be enclosed) 3. Date of order of the adjudicating officer: 4. Statement of facts: I/We..., the appellant hereby declare that the facts stated herein above are correct to the best of my/our knowledge, information and belief. 5. Signature of appellant and date: 6. Name of appellant: [F.No. 6/6/2024-EP (Agri. IV)] PRIYA P. NAIR, Economic Advisor

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