The Coastal Shipping Bill, 2024 |The LexSphere Library

SECTION Section 1

Untitled Section

•AS INTRODUCED IN LOK SABHA

•Bill No. 177 of 2024

•THE COASTAL SHIPPING BILL, 2024

•________

•ARRANGEMENT OF CLAUSES

•________

SECTION Section 10

Untitled Section

6.Reporting requirements.

SECTION Section 100

Untitled Section

37.Notwithstanding anything contained in this Act or any law for the time

•being in force, the Central Government or, as the case may be, the Director-General

•with the prior permission of the Central Government, if is of opinion that it is

•necessary or expedient in the public interest so to do, may, by order in writing and

•subject to such conditions and for such period as it may think fit, exempt from the

•provisions of this Act,––

(a)any vessel or class of vessels engaged in coasting trade; or

(b)any class of vessels chartered by a citizen of India or non-resident

•Indian or an overseas citizen of India, or a company or a co-operative society

•or a limited liability partnership or such entities as may be specified by the

•Central Government under sub-section (1) of section 11.

SECTION Section 101

Untitled Section

38.No suit, prosecution or other legal proceeding shall lie against any person

•for anything which is in good faith done or intended to be done under this Act.

SECTION Section 102

Untitled Section

39.( 1) The Central Government may, subject to the condition of previous

•publication, make rules for carrying out the provisions of this Act.

(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 form and manner of application for grant of licence to be made

•to the Director -General and the fee to be paid for the same under

•sub-section (1) of section 4;

(b)the form, period and the conditions subject to which licence shall be

•granted under sub-section (3) of section 4;

(c)the class or category of licence to be granted under sub-section (4) of

SECTION Section 103

Untitled Section

•section 4;

•Power of Central

•Government to

•issue directions.

•Power to

exempt.

•Protection of action

•taken in good faith.

•Power of

•Central

•Government to

•make rules.

•12

•Laying of rules

•and notifications

•before

Parliament.

•Power to remove

difficulties.

(d)the form and manner of making application for modification of

•particulars of a licence to be made to the Director-General under sub-section (3)

•of section 5;

(e)the form and manner of reporting the requirements to the Director-General

•under section 6;

(f)such other matters to be included in the Strategic Plan under

SECTION Section 104

Untitled Section

•clause (h) of sub-section (2) of section 8;

(g)the time, place and the procedure to be observed by the committee

•for the transaction of business at its meetings and the quorum at such meetings

•under sub-section (4) of section 8;

(h)the form and manner of maintaining the National Database of Coastal

•Shipping by the Director-General under sub-section (1) of section 9;

(i)the form and manner of application for grant of licence to be made to the

•Director-General and the fee to be paid under sub-section (3) of section 11;

(j)the form, period and the conditions subject to which licence shall be

•granted under sub-section (4) of section 11;

(k)the form and manner of making application fo r modification of

•particulars of a licence under sub-section (2) of section 12;

(l)the sum to be paid for credit to the Central Government for compounding an

•offence and the manner of making the payment under sub-section (1) of section 26;

(m)the form and manner of making an application for the compounding

•of an offence under sub-section (3) of section 26;

(n)the form and manner of preferring appeal to the Director -General

•under sub-section (2) of section 30;

(o)the form and manner of issuance of notice under section 31;

(p)any other matters in respect of which the Director -General may, by

•notice, require the owner, master or agent of any vessel to furnish information

•under clause (iii) of sub-section (2) of section 35;

(q)any other matter which is required to be or may be prescribed for

•carrying out the provisions of this Act.

40.Every rule made and every notification issued under this Act shall be laid,

•as soon as may be after it is made or issued, before each House of Parliament, while

•it is in session , for a total period of thirty days which may be comprised in one

•session or in two or more 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 notification or both Houses agree

•that the rule or notification should not be made or issued, the rule or notification

•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 notification.

SECTION Section 105

Untitled Section

41.(1) If any difficulty arises in giving effect to the provisions of this Act, the

•Central Government may, by order published in the Official Gazette, make such

•provisions not inconsistent with the provisions of this Act as may be necessary or

•expedient for removing the difficulty:

•Provided that no such order shall be made under this section after the expiry

•of three years from the date of commencement of this Act.

(2)Every order made under this section shall be laid, as soon as may be after

•it is made, before each House of Parliament.

•5

•10

•15

•20

•25

•30

•35

•40

•45

•13

•44 of 1958.

•10 of 1897.

•5

•10

•15

•20

•25

•30

SECTION Section 106

Untitled Section

42.(1) Part XIV of the Merchant Shipping Act, 1958 (herein referred to as

•Part XIV of the said Act), except section 411A thereof, is hereby repealed.

(2)Notwithstanding such repeal,––

(a)any notification, rule, regulation, bye -law, order or exemption

•made, issued or granted under Part XIV of the said Act shall, until revoked,

•have effect as if it had been made , issued or granted under the provisions of

•this Act;

(b)any licence granted or issued under Part XIV of the said Act shall,

•until it is revoked or expires, have effect a s if it had been issued or granted

•under the provisions of this Act;

(c)any office established or created, officer or person appointed and any

•body elected or constituted under Part XIV of the said Act shall continue and

•shall be deemed to have been established, created, appointed, elected, or

•constituted, as the case may be, under this Act;

(d)any document referring to Part XIV of the said Act shall be construed

•as referring to this Act;

(e)any fine levied under Part XIV of the said Act may be recovered as

•if it had been levied under this Act;

(f)any offence committed under Part XIV of the said Act may be

•prosecuted and punished as if it had been committed under this Act;

(g)any proceeding pending before any court under Part XIV of the said

•Act may be tried or disposed of under the corresponding provisions of

•this Act;

(h)any inspection, investigation or inquiry ordered to be done under the

•provisions of Part XIV of the said Act, shall continue to be proceeded with as

•if such inspection, investigation or inquiry is ordered to be done under the

•corresponding provisions of this Act.

(3)Without prejudice to the provisions of sub -section (2), the provisions of

SECTION Section 107

Untitled Section

•section 6 of the General Clauses Act, 1897 shall apply with regard to the effect of

repeal.

•Repeal and

savings.

•14

•STATEMENT OF OBJECTS AND REASONS

•Coastal shipping in India holds great potential owing to vast coastline of around

•7500 kilometers and proximity to important global shipping routes. It has been

•recognised that maritime transportation, particularly coastal shipping is cheaper

•compared to other modes of transportation. There is a need to improve transport

•connectivity and supporting in frastructure in the coastal maritime transport sector.

•The cost of transportation and logistics directly impacts the production cost and there

•has been a concerted policy effort to improve efficiencies in this regard.

SECTION Section 108

Untitled Section

2.The regulation of the coastal marit ime sector in India lacks uniformity.

•Non-mechanised vessels engaged in coastwise trade are governed by the Coasting

•Vessels Act, 1838 which only provides for registration of such vessels. The measures

•pertaining to regulation, safety, security and pol lution prevention also need to be

addressed.The mechanised vessels on the other hand fall under the purview of the

•Merchant Shipping Act, 1958.

SECTION Section 109

Untitled Section

3.The present regulatory framework under Part XIV of the Merchant Shipping

•Act, 1958, requires Indian ship as well as ships chartered by Indian citizens and

•foreign vessels to obtain licence before taking ship to sea, including for coasting

trade.However, the licencing requirement for all vessels including Indian vessels

•and exclusion of foreign flag non -propelled vessels from the coasting trade has

•proven to be a hindrance to competition and efficiency of the sector. It is felt

•necessary to bring foreign flag non -propelled mobile offshore drilling units,

•accommodation barges, etc., also within the purview of the regulatory requirements.

SECTION Section 11

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7.Licence to be produced for port clearance.

SECTION Section 110

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4.In view of the challenges arising in the regulation of coasting trade, it is

•considered necessary to strengthen the regulation of vessels engaged in coasting

•trade by adopting the best global practices, to meet the present and f uture

•requirements of the maritime coastal shipping sector.

SECTION Section 111

Untitled Section

5.The Coastal Shipping Bill, 2024, inter alia , seeks to provide for the

•following, namely:—

(i)to repeal Part XIV of the Merchant Shipping Act, 1958 relating to

•control of Indian ships and ships engaged in coasting trade (except

SECTION Section 112

Untitled Section

•section 411A thereof);

•(ii) to include the term “service” in the definition of “coasting trade” so

•as to bring offshore vessels which generally provide services without engaging

•in transportation of goods and passengers, within the ambit of the Bill;

•(iii) prohibition of coasting trade in the coastal water without licence by

•vessels other than Indian vessels and permitting Inland vessels to engage in

•coastal trading subject to certain conditions;

•(iv) empowering the Director -General to issue licence after taking into

•consideration certain factors including citizenship of the crew and building

•requirements of the vessel so as to create more jobs for Indian seafarers and to

•promote ship building in India;

(v)requ irement of licence by vessels chartered by Indian entities for

•purposes other than coasting trade;

•(vi) creation of a National Database of Coastal Shipping so as to ensure

•transparency of procedure and aid in information sharing;

•(vii) preparation of a National Coastal and Inland Shipping Strategic Plan

•for development, growth and promotion of coastal shipping;

•14

•(viii) provision for compounding of certain offences and imposition of

•penalty by the principal officer; and

•(ix) provision for empowering the Director -General to call for

•information in respect of certain matters.

SECTION Section 113

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6.The Notes on clauses explain in detail the various provisions contained in

•the Bill.

SECTION Section 114

Untitled Section

7.The Bill seeks to achieve the above objectives.

•NEW DELHI; SARBANANDA SONOWAL.

•The 24th November, 2024.

•15

•16

•Notes on Clauses

SECTION Section 115

Untitled Section

•Clause 1.—This clause provides for the short title, application, and

•commencement of the Bill. It specifies that the Bill applies to, (a) every vessel, other

•than an Indian vessel, engaged in coasting trade , (b) chartered vessels as specified

•under the Bill and (c) the coastal waters of India.

SECTION Section 116

Untitled Section

•Clause 2.—This clause defines the various expressions used in the Bill,

•including, “coasting trade”, “coastal waters”, “National Database of Coastal

•Shipping”, “vessel”, etc.

SECTION Section 117

Untitled Section

•Clause 3.—This clause prohibits the engagement of vessels, other than Indian

•vessels, in coasting trade in the coastal waters, unless the licence for the same has

•been granted by the Director-General of Shipping.

SECTION Section 118

Untitled Section

•Clause 4.—This clause provides that the Director-General may grant licence

•to a vessel, for engaging in coasting trade subject to conditions prescribed by rules

•made by the Central Government. It further provides for prescription of class or

•categories of licence to be granted.

SECTION Section 119

Untitled Section

•Clause 5.—This clause provides for the powers of the Director -General to

•suspend, revoke or modify a licence granted under the Bill. It further provides for

•modification of a licence, and the return of licences that have ceased to be valid.

SECTION Section 12

Untitled Section

•CHAPTER III

•NATIONAL COASTAL AND INLAND SHIPPING STRATEGIC PLAN AND NATIONAL

•DATABASE OF COASTAL SHIPPING

SECTION Section 120

Untitled Section

•Clause 6.—This clause provides for the reporting requirements in relation to

•every vessel engaged in coasting trade.

SECTION Section 121

Untitled Section

•Clause 7.—This clause provides that no proper officer of customs shall grant

•clearance to a vessel, other than an Indian vessel, engaged in coasting trade to enter

•or depart from a port, unless a licence is produced by the licensee or agent of such

•a vessel. It further provides for the detention of a vessel which fails to comply with

•the requirements of the Bill.

SECTION Section 122

Untitled Section

•Clause 8.—This clause provides for the preparation and publication of a

•National Coastal and Inland Shipping Strategic Plan. It enumerates the matters to

•be provided for in such Plan and specifies the composition of the committee for

•preparing the Plan.

SECTION Section 123

Untitled Section

•Clause 9.—This clause requires the Director-General to maintain a web portal

•of a database to be called the National Database of Coastal Shipping. It also

•enumerates the information to be contained in such a database and provides that the

•web portal of the said database is to be made available for public access which shall

•be updated every month.

SECTION Section 124

Untitled Section

•Clause 10.—This clause provides for the application of Chapter IV of the Bill

•to sea going vessels chartered by a citizen of India, or a non -resident Indian or an

•overseas citizen of India, or a company or a co-operative society or a limited liability

•partnership or any other entity that may be specified by the Central Government.

SECTION Section 125

Untitled Section

•Clause 11.—This clause provides for the requirement of licensing for

•chartered vessels other than Indian vessels. It further specifies that a vessel chartered

•by an overseas citizen of India shall not require a licence under this clause if it is

•chartered exclusively for operation outside India.

SECTION Section 126

Untitled Section

•Clause 12.—This clause empowers the Director -General, if required, to

•suspend, revoke or modify a licence granted under clause 11. It further provides that

•no licence can be suspended, revoked or modified unless a licensee has been given

•reasonable opportunity to be heard. It also lays down the procedure for modification

•of license to be prescribed by rules.

•16

•Clause 13.—This clause requires the licensee to upon such licence ceasing to

•be valid due to expiration or revocation, return the licence to the Director-General.

SECTION Section 127

Untitled Section

•Clause 14.—This clause prohibits any proper officer of customs to grant a port

•clearance to a vessel without the production of a licence required under Chapter IV.

SECTION Section 128

Untitled Section

•Clause 15.—This clause provides for punishment for anyone who participates

•in coasting trade in contravention of provisions of clause 3.

SECTION Section 129

Untitled Section

•Clause 16.—This clause provides for punishment for anyone who participates

•in coasting trade after the license ceases to be valid.

SECTION Section 13

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8.National Coastal and Inland Shipping Strategic Plan.

SECTION Section 130

Untitled Section

•Clause 17.—This clause provides for punishment for anyone who takes a

•vessel to sea in contravention of the requirement of licensing for chartered vessels

•under clause 11.

SECTION Section 131

Untitled Section

•Clause 18.—This clause provides for punishment for a licensee or agent on

•whom a notice has been served and who fails to furnish the information required

•within the time specified or furnishes false information.

SECTION Section 132

Untitled Section

•Clause 19.—This clause provides for punishment for the licensee of a vessel

•on whom any notice or order for detention has been served if such licensee proceeds

•to sea before it is released by an authority.

SECTION Section 133

Untitled Section

•Clause 20.—This clause provides for punishment for the licensee or an agent

•for illegally detaining a person authorised to detain the vessel and for proceeding to

•sea before the vessel is released by the authorised officer.

SECTION Section 134

Untitled Section

•Clause 21.—This clause provides for penalty for reporting misleading or false

•information to the Director-General under clause 6.

SECTION Section 135

Untitled Section

•Clause 22.—This clause provides for penalty for failure to comply with the

•conditions of licence granted under the Bill.

SECTION Section 136

Untitled Section

•Clause 23.—This clause provides for penalty for a licensee or agent of a

•vessel, who fails to comply with the directions given by the Director-General.

SECTION Section 137

Untitled Section

•Clause 24.—This clause provides for penalty for non -compliance with the

•order of the Central Government by a licensee or agent of a vessel.

SECTION Section 138

Untitled Section

•Clause 25.—This clause provides for penalty for contravention of any

•provision of the Bill or failure to comply with any rule, direction, order or

•notification for which no penalty is specially provided under the Bill.

SECTION Section 139

Untitled Section

•Clause 26.—This clause provides for compounding of certain offences under

•the Bill by an officer designated by the Central Government. It further specifies the

•consequence of non-compliance with an order of the said officer. It also provides

•that no compounding shall be permissible for a subsequent offence.

SECTION Section 14

Untitled Section

9.National Database of Coastal Shipping.

SECTION Section 140

Untitled Section

•Clause 27.—This clause empowers the Judicial Magistrate of the first class to

•pass a sentence specified under the Bill on any person convicted for an offence under

•the Bill.

SECTION Section 141

Untitled Section

•Clause 28.—This clause deems a person in -charge of and responsible for a

•company to be guilty of and punished for an offence committed by such company

•subject to the proviso of the clause. It further deems the director, manager, secretary

•or partner or other officer of the company to be guilty and punished, if such offence

•was committed with the consent of or due to any neglect of such person.

SECTION Section 142

Untitled Section

•Clause 29.—This clause empowers any commissioned officer of the Indian

•Navy or Indian Coast Guard or Police, or any Port Officer, Pilot, Harbour Master or

•Conservator of port, or the Commissioner of Customs, or any other person

•authorised under the Bill, to detain a vessel authorised or ordered to be detained

•under instructions of the principal officer.

•17

•16

•Clause 30.—This clause specifies that the principal officer shall be the

•adjudicating authority for imposition of penalties under the Bill. The clause also

•provides for a person aggrieved by the order for imposition of penalty to prefer an

•appeal with the Director-General. It further provides for compounding of certain

•offences for which penalty is specified under the Bill and specifies that penalty not

•deposited shall be recovered through an arrear of land revenue.

SECTION Section 143

Untitled Section

•Clause 31.—This clause provides for serving of notice on the consular office

•of the country in which a vessel is registered, if such vessel is detained under the

•Bill or if any proceeding is taken against the licensee or agent of such vessel.

SECTION Section 144

Untitled Section

•Clause 32.—This clause specifies that any person committing any offence

•under the Bill may be tried at a place in which he may be found, or in any court

•which the Central Government may, by notification, direct in this behalf, or in any

•court in which the person might be tried under any other law for time being in force.

SECTION Section 145

Untitled Section

•Clause 33.—This clause specifies the manner of service of documents on the

•concerned person or on the master of the vessel or on the person in command of the

•vessel or on the owner of the vessel or on the agent of the owner.

SECTION Section 146

Untitled Section

•Clause 34.—This clause empowers the Central Government to delegate its

•power, authority, or jurisdiction, under the Bill to the Director-General or any other

•officer subject to conditions specified in the order issued in that behalf. The clause

•also empowers the Direct or-General with previous approval of the Central

•Government to delegate his powers to any other officer or authority subject to

•conditions specified in the order.

SECTION Section 147

Untitled Section

•Clause 35.—This clause provides for the power of the Director -General to

•give directions for matters specified under the clause to vessels granted licence

•under the Bill, if considered necessary in public interest or any other interest

•specified in the clause. It further empowers the Director-General to seek information

•which may include matters specified under the clause, from the licensee or agent of

•vessel granted licence under the Bill.

SECTION Section 148

Untitled Section

•Clause 36.—This clause empowers the Central Government to issue

•directions with respect to the functions and duties of any person under the Bill and

•it also specifies that the decision of the Central Government on a question of policy

•or otherwise shall be final.

SECTION Section 149

Untitled Section

•Clause 37.—This clause empowers the Central Government or the Director-

•General to exempt any vessel or class of vessels engaged in coasting trade or any class

•of vessels chartered by a citizen of India or a non-resident Indian or an overseas citizen

•of India or a company or cooperative society or a limited liability partnership from the

•provisions of the Bill for a specific period and subject to conditions as may be deemed

•fit, if such exemption is considered necessary in the public interest.

SECTION Section 15

Untitled Section

•CHAPTER IV

•LICENCING OF CHARTERED VESSELS OTHER THAN FOR COASTING TRADE

SECTION Section 150

Untitled Section

•Clause 38.—This clause provides for protection of persons from prosecution

•or legal proceedings for actions done in good faith under the provisions of the Bill.

SECTION Section 151

Untitled Section

•Clause 39.—This clause enumerates the provisions of the Bill for which the

•Central Government may make rules.

SECTION Section 152

Untitled Section

•Clause 40.—This clause specifies that every rule made and notification issued

•under the Bill shall be laid before each House of Parliament.

SECTION Section 153

Untitled Section

•Clause 41.—This clause provides that if any difficulty arises in giving effect

•to the provisions of the Bill, the Central Government may make provisions not

•inconsistent with the provisions of the Bill, which appear to it to be necessary, for

•removing such difficulty within a period of three years from the date of

•commencement of the Bill.

SECTION Section 154

Untitled Section

•Clause 42.—This clause provides for the repeal of Part XIV of the Merchant

•Shipping Act, 1958, except for section 411A thereof, and provides for saving certain

•actions taken under the provisions of the enactment.

•18 18

•19

•FINANCIAL MEMORANDUM

•The provisions of the Bill will not involve any expenditure of recurring or

•non-recurring nature from the Consolidated Fund of India.

•20

•MEMORANDUM REGARDING DELEGATED LEGISLATION

SECTION Section 155

Untitled Section

•Clause 39 of the Bill seeks to empower the Central Government to make

•rules to carry out the provisions of the Bill. Sub -clause ( 2) of the said clause

•specifies the matters in respect of which rules may be made. These matters

•include —

(i)the form and manner of application for the grant of licence and the

•fee to be paid for the same under sub -clause ( 1), the form, period and the

•conditions of licence granted under sub -clause ( 3), and the class or

•category of licence to be granted under sub -clause ( 4) of clause 4; ( ii) the

•form and manner of making application for modification of particulars of

•a licence under sub -clause ( 3) of clause 5; ( iii) the form and manner of

•reporting the requirements to the Director -General under clause 6;

•(iv) other matters to be included in the National Coastal and Inland

•Shipping Strategic Plan under sub -clause ( 2)(h) of clause 8; ( v) the time,

•place and the procedure to be observed by the committee for the transaction

•of business at its meetings and the quorum at such meetings under sub-clause (4)

•of clause 8; ( vi) the form and manner of the National Database of Coastal

•Shipping to be maintained by the Director -General under sub -clause ( 1) of

SECTION Section 156

Untitled Section

•clause 9; ( vii) the form and manner of application for the grant of licence

•and the fee to be paid for the same under sub -clause ( 3) of clause 11;

•(viii) the form, period and the conditions subject to which licence shall be

•granted under sub -clause ( 4) of clause 11; ( ix) t he form and manner of

•making application for modification of particulars of a licence under

•sub-clause ( 2) of clause 12; ( x) the sum to be paid for credit to the Central

•Government for compounding an offence and the manner of making the

•payment under sub-clause ( 1) of clause 26; (xi) the form and manner of

•making an application for the compounding of an offence under sub-clause (3)

•of clause 26; ( xii) the form and manner of preferring appeal to the

•Director -General under sub -clause ( 2) of clause 30; ( xiii) the form and

•manner of issuance of notice under clause 31; ( xiv) any other matters in

•respect of which the Director -General may, require the owner, master or

•agent of any vessel to furnish informa tion under sub -clause ( 2)(iii) of

SECTION Section 157

Untitled Section

•clause 35; and ( xv) any other matter which is required to be, or may be,

•prescribed for carrying out the provisions of the Bill.

2.The matters in respect of which the aforementioned rules may be made

•are matters of proc edure and administrative details, and as such, it is not

•practicable to provide for them in the Bill itself. The delegation of legislative

•power is, therefore, of a normal character.

•LOK SABHA

•————

•A

•BILL

•to consolidate and amend the law relating to regulation of coastal shipping,

•promote coasting trade and encourage domestic participation therein, to

•ensure that India is equipped with a coastal fleet, owned and operated by the

•citizens of India for its national security and commercial needs, and for

•matters connected therewith or incidental thereto.

•————

•(Shri Sarbananda Sonowal, Minister of Ports, Shipping and Waterways)

SECTION Section 16

Untitled Section

10.Application of Chapter.

SECTION Section 17

Untitled Section

11.Requirement of licence by chartered vessels.

SECTION Section 18

Untitled Section

12.Suspension, revocation or modification of licence granted to chartered

vessels.

SECTION Section 19

Untitled Section

13.Licence granted to chartered vessel to be returned when ceases to be valid.

SECTION Section 2

Untitled Section

•CHAPTER I

•PRELIMINARY

SECTION Section 20

Untitled Section

14.No port clearance without production of licence.

SECTION Section 21

Untitled Section

•CHAPTER V

•OFFENCES AND PENALTIES

SECTION Section 22

Untitled Section

15.Punishment for participating in coasting trade in contravention of section 3.

SECTION Section 23

Untitled Section

16.Punishment for participating in coasting trade after licence ceases to be valid.

SECTION Section 24

Untitled Section

17.Punishment for taking vessel into sea in contravention of section 11.

SECTION Section 25

Untitled Section

18.Punishment for failure to furnish information or furnishing false information

•after notice.

SECTION Section 26

Untitled Section

19.Punishment for violation of order of detention.

SECTION Section 27

Untitled Section

20.Punishment for illegally detaining person authorised to detain vessel.

•(ii)

•CLAUSES

SECTION Section 28

Untitled Section

21.Penalty for reporting false or misleading information.

SECTION Section 29

Untitled Section

22.Penalty for violation of conditions of licence.

SECTION Section 30

Untitled Section

23.Penalty for non-compliance of direction of Director-General.

SECTION Section 31

Untitled Section

24.Penalty for non-compliance with order of Central Government.

SECTION Section 32

Untitled Section

25.General provision for contravention or non-compliance.

SECTION Section 33

Untitled Section

26.Compounding of certain offences.

SECTION Section 34

Untitled Section

27.Special provision regarding punishment.

SECTION Section 35

Untitled Section

28.Offences by companies.

SECTION Section 36

Untitled Section

29.Power to enforce detention of vessel.

SECTION Section 37

Untitled Section

30.Adjudicating officer for imposition of penalty, appeal and procedure

therefor.

SECTION Section 38

Untitled Section

31.Notice in respect of foreign vessel.

SECTION Section 39

Untitled Section

32.Place of trial and jurisdiction of court.

SECTION Section 4

Untitled Section

1.Short title, application and commencement.

SECTION Section 40

Untitled Section

33.Service of documents.

SECTION Section 41

Untitled Section

•CHAPTER VI

•MISCELLANEOUS

SECTION Section 42

Untitled Section

34.Power to delegate.

SECTION Section 43

Untitled Section

35.Power of Director-General to give directions and seek information.

SECTION Section 44

Untitled Section

36.Power of Central Government to issue directions.

SECTION Section 45

Untitled Section

37.Power to exempt.

SECTION Section 46

Untitled Section

38.Protection of action taken in good faith.

SECTION Section 47

Untitled Section

39.Power of Central Government to make rules.

SECTION Section 48

Untitled Section

40.Laying of rules and notifications before Parliament.

SECTION Section 49

Untitled Section

41.Power to remove difficulties.

SECTION Section 5

Untitled Section

2.Definitions.

SECTION Section 50

Untitled Section

42.Repeal and savings.

•5

•AS INTRODUCED IN LOK SABHA

•Bill No. 177 of 2024

•THE COASTAL SHIPPING BILL, 2024

•A

•BILL

•to consolidate and amend the law relating to regulation of coastal shipping,

•promote coasting trade and encourage domestic participation therein, to

•ensure that India is equipped with a coastal fleet, owned and operated by the

•citizens of India for its national security and commercial needs, and for

•matters connected therewith or incidental thereto.

•BE it enacted by Parliament in the Seventy-fifth Year of the Republic of India

•as follows:––

SECTION Section 51

Untitled Section

•CHAPTER I

•PRELIMINARY

SECTION Section 52

Untitled Section

1.(1) This Act may be called the Coastal Shipping Act, 2024.

(2)Save as otherwise provided, the provisions of this Act shall apply to––

•Short title,

•application and

commencement.

•2

Definitions.

(a)every vessel, other than an Indian vessel, engaged in coasting trade,

•irrespective of the place of residence or domicile of the owner;

(b)every chartered vessel referred to in Chapter IV; and

(c)coastal waters of India.

(3)It shall come into force on such date as the Central Government may, by

•notification in the Official Gazette, appoint, and different dates may be appointed

•for different provisions of this Act.

SECTION Section 53

Untitled Section

2.(1) In this Act, unless the context otherwise requires,––

(a)“coasting trade” means carriage of goods or passengers by sea from

•any port or place in India to any other port or place in India, or performing any

•service within coastal waters but shall not include fishing of any kind.

Explanation.—For the purposes of this clause, “service” includes

•exploration, exploitation, research, and any other commercial activity in the

•coastal waters other than carriage of goods or passengers by sea;

(b)“coastal waters” means any part of the territorial waters of India ,

•along with any part of the adjoining maritime zones of India within the

•meaning of the Territorial Waters, Continental Shelf, Exclusive Economic

•Zone and Other Maritime Zones Act, 1976, for undertaking coasting trade:

•Provided that the Central Government may, by notification, specify any

•port or place including inland waters of India as part of the coastal waters for

•the purposes of this Act;

(c)“committee” means the committee constituted under sub-section (3) of

SECTION Section 54

Untitled Section

•section 8 for preparing the National Coastal and Inland Shipping Strategic Plan;

(d)“Director-General” means the Director-General appointed under the

•Merchant Shipping Act, 1958;

(e)“Indian vessel” means any vessel registered in India under the

•Merchant Shipping Act, 1958;

(f)“licence” means the licence issued by the Directo r-General under

SECTION Section 55

Untitled Section

•section 4 or section 11;

(g)“licensee” includes the owner or master or charterer or operator or

•any person operating the vessel under a licence granted to such vessel by the

•Director-General;

(h)“National Database of Coastal Shipping” means the database

•maintained by the Director-General under section 9;

(i)“notification” means a notification published in the Gazette of India

•or the Official Gazette of a Sta te, as the case may be, and the expression

•“notify” with its grammatical variation and cognate expressions , shall be

•construed accordingly;

(j)“prescribed” means prescribed by rules made by the Central

•Government under this Act;

(k)“principal officer” means the principal officer of the Mercant ile

•Marine Department referred to in the Merchant Shipping Act, 1958;

(l)“proper officer” shall have the meaning assigned to it in clause ( 34)

•of section 2 of the Customs Act, 1962;

(m)“Strategic Plan” m eans the National Coastal and Inland Shipping

•Strategic Plan published under sub-section (1) of section 8;

(n)“vessel” includes every description of water craft, used or capable of

•being used in the marine environment, whether self-propelled or not, such as ship,

•boat, sailing vessel, fishing vessel, submersible, semi-submersible, hydrofoils,

•non-displacement crafts, amphibious crafts, wing -in-ground crafts, pleasure

•crafts, barges, lighters, mobile offshore drilling units and mobile offshore units.

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•80 of 1976.

•44 of 1958.

•52 of 1962.

•3

•44 of 1958.

•24 of 2021.

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(2)Words and expressions used and not defined in this Act but defined in the

•Merchant Shipping Act, 1958, shall have the meanings respectively assigned to

•them in that Act.

SECTION Section 56

Untitled Section

•CHAPTER II

•PROHIBITION AND LICENCE FOR COASTING TRADE

SECTION Section 57

Untitled Section

3.(1) No vessel, other than an Indian vessel, shall engage in coasting trade, in

•the coastal waters, except under a licence granted by the Director -General under

SECTION Section 58

Untitled Section

•section 4:

•Provided that the Director-General may, by order in writing, permit a vessel

•registered under the Inland Vessels Act, 2021 , to engage in coasting trade to such

•extent and subject to such conditions, as may be specified in that order.

(2)Whoever engages any person to undertake coasting trade shall ensure that

•such person does not violate the provisions of sub-section (1).

SECTION Section 59

Untitled Section

4.(1) Every application for grant of a licence for coasting trade shall be made

•to the Director-General in such form, manner and on payment of such fee, as may

•be prescribed.

(2)Before issuing a licence under this section, the Director-General shall take

•into consideration the following factors, namely:—

(a)whether the applicant has previously held a licence that was

•cancelled;

(b)whether the applicant has engaged in violation of any of the

•provisions of this Act prior to or during the period of pendency of his

•application;

(c)citizenship of the crew;

(d)build requirements of the vessel;

(e)availability of vessels on the route;

(f)licences granted to vessels for the same route;

(g)safety, national and maritime security concerns;

(h)equipment on board the vessel including communication equipment;

(i)the Strategic Plan under section 8;

(j)cost efficiency of transport;

(k)validity of the certificates of vessel and crew;

(l)validity of the certificate of insurance of the vessel; and

(m)any other requirements as the Director -General may consider

•necessary in furtherance of the objectives of this Act.

(3)A licence granted under this section shall be in such form, for such period

•and shall be subject to such conditions, as may be prescribed:

•Provided that the Director-General may, for reasons to be recorded in writing,

•specify such other conditions as may be necessary for grant of the licence.

(4)The class or category of licence to be granted under this section shall be

•such as may be prescribed.

•Prohibition on

•coasting trade.

•Licence for

•coasting trade.

•4

•Suspension,

•revocation or

•modification of

licence.

•Reporting

requirements.

•Licence to be

•produced for

•port clearance.

•National Coastal

•and Inland

•Shipping

•Strategic Plan.

5.(1) The Director-General may, if the circumstances of the case so require to

•meet the objectives of this Act, by order in writing and for reasons to be recorded

•therein, suspend, revoke or modify a licence granted under section 4, if the licensee,

•or any person engaged by him––

(a)violates any condition of the licence; or

(b)fails to comply with any requirement under any law for the time

•being in force applicable to the vessel; or

(c)fails to comply with a direction issued under section 35; or

(d)fails to pay any fine or serve any sentence imposed under this Act:

•Provided that the suspension, revocation or modification of licence under this

SECTION Section 6

Untitled Section

•CHAPTER II

•PROHIBITION AND LICENCE FOR COASTING TRADE

SECTION Section 60

Untitled Section

•clause shall not absolve the licensee from his obligation for payment of any fine or

•penalty, or undergoing any punishment, imposed on him under this Act.

(2)No licence granted under section 4 shall be suspended, revoked or

•modified under sub -section (1), unless the licensee has been given a reasonable

•opportunity of being heard.

(3)A licensee, who intends to modify the particulars of the licence granted to

•him under section 4, may make an application to the Director-General in that behalf

•in such form and manner, as may be prescribed.

(4)Where the licence granted under section 4 ceases to be valid due to expiry

•of its period or revocation, the licensee shall––

(a)return it or cause it to be returned to the Director-General; and

(b)cease to engage in coasting trade,

•within such period as may be specified by the Director-General.

SECTION Section 61

Untitled Section

6.Every vessel , including Indian vessels engaged in coasting trade, shall

•report to the Director-General the following information in such form and manner

•as may be prescribed, namely:––

(a)the port or ports which it will visit in the course of its voyage;

(b)goods or passengers carried by such vessel and the ports or places

•where such goods or passengers will be dropped off;

(c)any offshore area in which it may operate or navigate for the purposes

•of its voyage; and

(d)such other information as the Director-General may deem fit.

SECTION Section 62

Untitled Section

7.(1) No proper officer shall grant clearance to a vessel, other than an Indian

•vessel, engaging in coasting trade to enter or depart from a port, unless the licensee

•or agent of such vessel produces the licence granted under section 4.

(2)Where any vessel fails to comply with the requirements of this Act, the

•Director-General or the principal officer or an officer designated by the Cen tral

•Government in this behalf may, after giving an opportunity of being heard to the

•licensee or agent of such vessel, by order in writing and for reasons to be recorded

•therein, detain that vessel until an order is issued for the release of such vessel.

SECTION Section 63

Untitled Section

•CHAPTER III

•NATIONAL COASTAL AND INLAND SHIPPING STRATEGIC PLAN AND NATIONAL

•DATABASE OF COASTAL SHIPPING

SECTION Section 64

Untitled Section

8.(1) The Central Government shall, within a period of two years from the

•date of commencement of this Act, by notification, publish a National Coastal and

•Inland Shipping Strategic Plan for the purposes of this Act, which shall be updated

•every two years by a like notification.

(2)The Strategic Plan shall include the following, namely:––

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(a)assessment of the condition of coastal shipping routes in India

•including routes occupied by inland waterways;

(b)identification of the operational improvements required in coastal

•shipping, including those by way of integration with inland waterway routes,

•in order to make coastal maritime transport a cost -efficient mode of

•transportation for goods and passengers;

(c)long term forecasts of traffic on coastal shipping and inland

•waterways network;

(d)identification of best practices for improving the performance of

•coastal shipping including the synergy presented by inland waterway routes

•and other modes of transportation;

(e)identification of new routes for coastal shipping and integration

•thereof with inland waterways and existing coastal shipping routes;

(f)measures for the promotion of building, registration and participation

•of Indian vessels in coastal shipping in India;

(g)recommendations regarding the conditions subject to which vessels

•registered under the Inland Vessels Act, 2021, may engage in coasting trade

•of India; and

(h)such other matters as may be prescribed.

(3)The Central Government shall constitute a committee consisting of the

•following members for preparing the Strategic Plan, namely:—

(a)Director-General of Shipping—Chairperson, ex officio;

(b)Chairman, Inland Waterways Authority of India constituted under section 3

•of the Inland Waterways Authority of India Act, 1985—Member, ex officio;

(c)one representative of each Board of Major Port Authority constituted under

•sub-section (1) of section 3 of the Major Port Authority Act, 2021—Members;

(d)one representative of the National Security Council Secretariat—Member;

(e)one representative of each State Maritime Board or any other body

•responsible for the administration of ports other than major ports, in a State or

•Union territory—Members;

(f)two representatives to represent ship owners—Members;

(g)two representatives of seafarers—Members; and

(h)such other persons having expertise in the field of coastal trade,

•mercantile and marine trade or maritime sector, as the Central Government

•may deem necessary—Members.

(4)The committee shall meet at such time and place, and shall observe such

•procedure for the transaction of business at its meeting s including the quorum at

•such meetings, as may be prescribed.

(5)The committee shall prepare a draft of the Strategic Plan for consideration

•and approval of the Central Government and the Central Government shall, after

•considering the draft Strategic Plan, approve the Plan with or without modifications.

(6)The Central Government shall make available the Strategic Plan on its

•website for public access.

SECTION Section 65

Untitled Section

9.(1) The Director -General shall maintain a web portal of a database to be

•called the National Database of Coastal Shipping in such form and manner as may

•be prescribed.

•National

•Database of

•Coastal

Shipping.

•6

•Application of

SECTION Section 66

Untitled Section

Chapter.

•Requirement of

•licence by

•chartered

vessels.

•Suspension,

•revocation or

•modification of

•licence granted to

•chartered vessels.

(2)The National Database of Coastal Shipping shall contain the following

•information on coasting trade in India, namely:––

(a)applications received for licence under section 4;

(b)licences granted under section 4;

(c)terms and conditions of the licences so granted;

(d)routes, voyages and services in the coasting trade of India;

(e)requirement of applicants for grant of licences under section 4;

(f)expired and revoked licences under section 5;

(g)information reported to the Director-General under section 6;

(h)such other information as the Director-General may deem fit.

(3)The Director -General shall make available the National Database of

•Coastal Shipping in electronic form on a web portal for access to the public and it

•shall be updated every month.

SECTION Section 67

Untitled Section

•CHAPTER IV

•LICENCING OF CHARTERED VESSELS OTHER THAN FOR COASTING TRADE

SECTION Section 68

Untitled Section

10.This Chapter shall apply to all sea going vessels, chartered by a citizen of

•India or a non-resident Indian or an overseas citizen of India, or a company or a

•co-operative society or a limited liability partnership or any other entity as the

•Central Government may, by notification, specify in this behalf, proceeding to sea

•from a port or place––

(a)in India, to a port or place outside India; or

(b)outside India, to a port or place in India or outside India.

SECTION Section 69

Untitled Section

11.(1) No vessel, other than an Indian vessel, chartered by a citizen of India

•or a non-resident Indian or an overseas citizen of India or a company or a

•co-operative society or a limited liability partnership or any other entity as the

•Central Government may, by notification specify in this behalf, shall be taken to sea

•from a port or place within India or outside India, except under a licence granted by

•the Director-General under this section:

•Provided that no vessel which is chartered by an overseas citizen of India shall

•be required to obtain licence, if such vessel is chartered exclusively for operation

•outside India.

(2)A licence granted under this section may be––

(a)a general licence; or

(b)a licence for a specified period or voyage.

(3)Every application for grant of licence under this section shall be made to

•the Director-General in such form, manner and on payment of such fee, as may be

prescribed.

(4)A licence granted under this section shall be in such form, for such period

•and shall be subject to such conditions, as may be prescribed:

•Provided that the Director-General may, for reasons to be recorded in writing,

•specify such other conditions as may be necessary , for grant of the licence under

•this section.

SECTION Section 7

Untitled Section

3.Prohibition on coasting trade.

SECTION Section 70

Untitled Section

12.(1) The Director-General may, at any time, if the circumstances of the case

•so require, by order in writing and for reasons to be recorded therein, suspend,

•revoke or modify a licence granted under section 11:

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•Provided that no such licence shall be suspended, revoked or modified, unless

•the licensee has been given a reasonable opportunity of being heard.

(2)A licensee, who intends to modify the particulars of the licence granted to

•him under section 11, may make an application to the Director-General in that behalf

•in such form and manner, as may be prescribed.

SECTION Section 71

Untitled Section

13.Where a licence granted under section 11 ceases to be valid due to expiry of

•its period or revocation, the licensee shall return it or cause it to be returned to the

•Director-General, within such period as may be specified by the Director-General.

SECTION Section 72

Untitled Section

14.No proper officer shall grant port clearance to any vessel requiring a

•licence under this Chapter, unless the owner, master or agent of the vessel produces

•a valid licence in respect of such vessel.

•CHAPTER V

•OFFENCES AND PENALTIES

SECTION Section 73

Untitled Section

15.Whoever engages in coasting trade in contravention of the provisions of

SECTION Section 74

Untitled Section

•section 3, shall be punishable with imprisonment for a term which may extend to

•six months, or with fine which may extend to fifteen lakh rupees, or four times the

•value of all fees or commission or payments received by the owner or charterer of

•the vessel for the voyage, whichever is greater, or with both, and the vessel shall

•also be liable for detention under section 29.

SECTION Section 75

Untitled Section

16.Whoever engages in coasting trade in contravention of the provisions of

SECTION Section 76

Untitled Section

•clause (b) of sub-section (4) of section 5, shall be punishable with imprisonment for a

•term which may extend to six months, or with fine which may extend to ten lakh

•rupees, or two times the value of all fees or commission or payments received by the

•licensee of the vessel for all voyages conducted in contravention, whichever is greater,

•or with both, and the vessel shall also be liable for detention under section 29.

SECTION Section 77

Untitled Section

17.Whoever takes a vessel to sea in co ntravention of the provisions of

SECTION Section 78

Untitled Section

•section 11, shall be punishable with imprisonment for a term which may extend to

•six months, or with fine which may extend to fifteen lakh rupees, or four times the

•value of all fees or commission or payments received b y the owner or charterer of

•the vessel for the voyage, whichever is greater, or with both, and the vessel shall

•also be liable for detention under section 29.

SECTION Section 79

Untitled Section

18.If any licensee or agent on whom a notice has been served under

•sub-section (2) of section 35––

(a)fails to furnish the information required within the time specified; or

(b)furnishes any information or makes any statement which the licensee

•or agent knows to be false on any material particular,

•he shall be punishable with imprisonment for a term which may extend to six

•months, or with fine which may extend to fifty thousand rupees, or with both, and

•the vessel shall also be liable for detention under section 29.

SECTION Section 8

Untitled Section

4.Licence for coasting trade.

SECTION Section 80

Untitled Section

19.If any vessel in respect of which a notice or order for detention has been

•served under this Act, proceeds to sea before it is released, the licensee of the vessel

•in respect of which the contravention has taken place shall be punishable with

•imprisonment for a term wh ich may extend to six months or with fine which may

•extend to fifteen lakh rupees, or with both, and the vessel shall also be liable for

•detention under section 29.

•Licence granted to

•chartered vessel to

•be returned when

•ceases to be valid.

•No port

•clearance

•without

•production of

licence.

•Punishment for

•participating in

•coasting trade in

•contravention of

SECTION Section 81

Untitled Section

•section 3.

•Punishment for

•participating in

•coasting trade

•after licence

•ceases to be

valid.

•Punishment for

•taking vessel

•into sea in

•contravention of

SECTION Section 82

Untitled Section

•section 11.

•Punishment for

•failure to furnish

•information or

•furnishing false

•information after

notice.

•Punishment for

•violation of

•order of

detention.

•8

•Punishment for

•illegally

•detaining person

•authorised to

•detain vessel.

•Penalty for

•reporting false or

•misleading

information.

•Penalty for

•violation of

•conditions of

licence.

•Penalty for non-

•compliance of

•direction of

•Director-

General.

•Penalty for non-

•compliance with

•order of Central

Government.

•General

•provision for

•contravention or

•non-compliance.

•Compounding of

•certain offences.

20.Where any vessel, after detention, or order for such detention proceeds to

•sea with any person authorised to detain any vessel on board, before it is released,

•the licensee or agent of such vessel shall be punishable with imprisonment for a

•term which may extend to six months or with fine upto one lakh rupees and all

•expenses of, and incidental to, such person being so taken to sea, or with both, and

•the vessel shall also be liable for detention under section 29.

SECTION Section 83

Untitled Section

21.If any person who is required to report any information to the

•Director-General under section 6 fails to do so, or otherwise intentionally reports

•misleading or false information, such person shall be liable for penalty which may

•extend to one lakh rupees.

SECTION Section 84

Untitled Section

22.Whoever fails to comply with the conditions of licence granted under

SECTION Section 85

Untitled Section

•section 4 or section 11, shall be liable for penalty which may extend to ten lakh

•rupees, or two times the value of all fees or commission or payments received by

•the licensee of the vessel for all voyages conducted in contravention, whichever

•is gr eater, or with both, and the vessel shall also be liable for detention under

SECTION Section 86

Untitled Section

•section 29.

SECTION Section 87

Untitled Section

23.Any licensee or agent, who fails to comply with any direction of the

•Director-General under sub -section ( 1) of section 35, shall be liable for penalty

•which may extend to five lakh rupees, or two times the value of all fees or

•commission or payments received by such licensee or agent for all voyages

•conducted in contravention of such direction, whichever is gr eater, and the vessel

•shall also be liable for detention under section 29.

SECTION Section 88

Untitled Section

24.Any licensee or agent, who fails to comply with an order of the Central

•Government under this Act, shall be liable for penalty of not less than fifteen lakh rupees,

•and the vessel may also be liable for detention under section 29.

SECTION Section 89

Untitled Section

25.Whoever contravenes any provision of this Act, or fails to comply with

•any provision thereof, or of any rule, direction, order or notification made

•thereunder, for which no punishment or penalty is specially provided in this Act,

•shall be liable for penalty which may extend to one lakh rupees, and if the breach is

•a continuing one, with further penalty which may extend to five thousand rupees for

•every day after the first day during which the breach continues.

SECTION Section 9

Untitled Section

5.Suspension, revocation or modification of licence.

SECTION Section 90

Untitled Section

26.(1) Notwithstanding anything contained in the Bharatiya Nagarik Suraksha

•Sanhita, 2023, any offence punishable under sections 1 5 to 20 of this Act, may,

•before o r after the institution of prosecution, be compounded by an officer

•designated by the Central Government, by notification in this behalf, on payment

•for credit to the Central Government of such sum and in such manner as may be

•prescribed:

•Provided that such sum shall not, in any case, exceed the maximum amount

•of the fine which may be imposed under this Act for the offences so compounded:

•Provided further that in case of subsequent offence, the same shall not be

compounded.

(2)The officer referred to in sub -section ( 1) shall exercise the powers to

•compound an offence, subject to the direction, control and supervision of the Central

Government.

(3)Every application for the compounding of an offence shall be made in such

•form and manner as may be prescribed.

(4)Where any offence is compounded before the institution of any prosecution,

•no prosecution shall be instituted against the offender in relation to whom the offence

•is so compounded.

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(5)Where the compounding of any offence is made after the institution of any

•prosecution, such composition shall be brought by the officer referred to in

•sub-section (1), in writing, to the notice of the court in which the prosecution is

•pending and on such notice for compounding the offence being given, the person

•against whom the offence is so compounded shall be discharged.

(6)Any person who fails to comply with an order of compounding made by

•the officer referred to in sub -section (1), shall be liable to pay a sum equivalent to

•twenty per cent. of the maximum fine provided for the offence, in addition to fine

•provided for the said offence.

(7)No offence punishable under this Act shall be compounded except in

•accordance with the provisions of this section.

SECTION Section 91

Untitled Section

27.Notwithstanding anything contained in section 23 of the Bharatiya Nagarik

•Suraksha Sanhita, 2023, it shall be lawful for a Judicial Magistrate of the first class

•to pass any sentence provided under this Act on any person convicted of an offence

•under this Act.

SECTION Section 92

Untitled Section

28.(1) Where an offence under this Act has been committed by a company,

•every person who, at the time the offence was committed, was in-charge of, and was

•responsible to, the company for the conduct of the business of the company, as well

•as the company, shall be deemed to be guilty of the offence and shall be liable to be

•proceeded against and punished accordingly:

•Provided that nothing contained in this sub -section shall render any such

•person liable to any punishment provided in this Act, if such person proves that the

•offence was committed without his knowledge or that such person exercised all due

•diligence to prevent the commission of such offence.

(2)Notwithstanding anything contained in sub-section (1), where an offence

•under this Act has been committed by a company and it is proved that such offence

•was committed with the consent or connivance of, or is attributable to any neglect

•on the part of, any director, manager, secretary or partner, or other officer of the

•company, such director, manager, secretary or partner, or other officer shall be

•deemed to be guilty of that offence and shall also be liable to be proceeded against

•and punished accordingly.

Explanation.—For the purposes of this section,—

(a)“company” includes a co-operative society, a firm or limited liability

•partnership firm or other association of individuals; and

(b)“director” in relation to a firm means a partner in the firm.

SECTION Section 93

Untitled Section

29.Where a vessel is authorised or ordered to be detained under this Act, any

•commissioned officer of the Indian Navy or Indian Coast Guard, or Police, or any

•port officer, pilot, harbour master or conservator of port, or the Commissioner of

•Customs, or any other person authorised under this Act, may detain the vessel under

•instructions of the principal officer.

SECTION Section 94

Untitled Section

30.(1) The principal officer shall be the adjudicating officer for the purposes

•of imposing penalty under sections 21 to 25.

(2)Any person aggrieved by the order of the principal officer imposing the

•penalty under sub-section (1) may, within a period of thirty days from the date of

•receipt of such order, prefer an appeal before the Director-General in such form and

•manner as may be prescribed.

(3)The Director-General shall dispose of an appeal referred to in sub-section (2)

•within a period of thirty days from the date of receipt of such appeal.

(4)No order shall be passed under this section unless the parties have been

•given a reasonable opportunity of being heard.

•Special

•provision

•regarding

punishment.

•Offences by

companies.

•Power to enforce

•detention of

vessel.

•Adjudicating

•officer for

•imposition of

•penalty, appeal

•and procedure

therefor.

•10

•Notice in respect

•of foreign

vessel.

•Place of trial and

•jurisdiction of

court.

•Service of

documents.

•Power to

delegate.

•Power of

•Director-

•General to

•give directions

•and seek

information.

(5)Any penalty imposed under sections 21 to 25 may be compounded for the

•first contravention by an officer designated by the Central Government by

•notification in this behalf.

(6)Notwithstanding anything contained in this Act, if a penalty imposed by

•the principal officer or the Director-General under this Chapter is not deposited, the

•amount shall be recovered as an arrear of land revenue.

SECTION Section 95

Untitled Section

31.If any vessel, other than an Indian vessel, is detained under this Act, or if

•any proceeding is taken under this Act against the licensee or agent of such vessel,

•notice shall forthwith be served on the consular office of the country in which such

•vessel is registered, or nearest to the port where the vessel is for the time being, in

•such form and manner as may be prescribed, and such notice shall specify the

•grounds on which the vessel has been detained or the proceedings have been taken.

SECTION Section 96

Untitled Section

32.Any person committing any offence under this Act or any rules made thereunder,

•may be tried for such offence in any place in which such person may be found, or in any

•court which the Central Government may, by notification, direct in this behalf, or in any

•court in which such person might be tried under any other law for time being in force in

India.

SECTION Section 97

Untitled Section

33.Where, for the purposes of this Act, any document is to be served on any

•person, that document may be served,—

(a)in any case by delivering a copy thereof personally to the person to

•be served, or by leaving the same at his last place of residence, or by post or

•by such electronic means as the Central Government may, by notification,

•specify in this behalf;

(b)on the master of a vessel where there is master, or on the person being

•or appearing to be in command or charge of the vessel, by leaving the same

•for him on board that vessel; and

(c)on the owner of the vessel where there is no master and the vessel is

•in India, or if such owner is not in India, on the agent of the owner residing in

•India, or, where no such agent is known or is found, by affixing at a suitable

•place on the bridge of the vessel.

•CHAPTER VI

•MISCELLANEOUS

SECTION Section 98

Untitled Section

34.(1) The Central Government may, by general or special order, direct that

•any power, authority or jurisdiction, exercisable by it under or in relation to any of

•the provisions of this Act, may be exercisable also by the Director-General or such

•other officer and subject to such conditions as may be specified in the order.

(2)The Director -General may, with the previous approval of the Central

•Government, by general or special order, direct that any power or authority

•conferred upon or delegated to, and any duty imposed upon him by or under this

•Act, may be exercised or discharged also by such officer or authority and subject to

•such conditions as may be specified in the order.

SECTION Section 99

Untitled Section

35.(1) The Director-General may,––

(a)in the public interest; or

(b)in the interest of Indian shipping; or

(c)in the interest of national defence and maritime security; or

(d)for ensuring safety of life at sea and the safety of environment,

•by order, direct any vessel for which licence has been granted under this Act, in

•respect of the following, namely:—

(i)the ports or places, whether within or outside India, to which, and the

•routes by which, the vessel shall proceed for any particular purpose;

•(ii) the diversion of a vessel from one route to another for any particular

•purpose;

•5

•10

•15

•20

•25

•30

•35

•40

•45

•50

•11

•5

•10

•15

•20

•25

•30

•35

•40

•45

•(iii) the classes of passengers or cargo which may be carried in the

•vessel;

•(iv) the order of priority in which passengers or cargo may be taken on

•or put off the vessel at any port or place, whether within or outside India;

(v)to ban any vessel from entering any port, anchorage or offshore

•facility in India;

•(vi) any other matter which the Director-General may deem necessary.

(2)The Director-General may, by notice, require the licensee or agent of any

•vessel in respect of which—

(a)licence is granted under this Act; or

(b)any direction is given relating to diversion of a vessel from one route to

•another for any particular purpose,

•to furnish such information as may be considered necessary within such period as

•may be specified in the said notice, which may include—

(i)the classes of passengers and cargo which the ship is about to carry,

•or is capable of carrying, or has carried during any specified period; or

•(ii) the rates of passenger fares and freight charges applicable to the

•vessel; or

•(iii) any other matter as may be prescribed.

36.(1) Notwithstanding anything contained in this Act, every person shall, in

•the discharge of his functions and duties under this Act, be bound by such directions

•on questions of policy as the Central Government may give to it in writing from

•time to time.

(2)The decision of the Centra l Government whether a question is one of

•policy or not shall be final.