The Andhra Pradesh Maritime Board Act, 2018
**THE ANDHRA PRADESH MARITIME BOARD ACT, 2019**

## ACT No.16 OF 2019

**ARRANGEMENT OF SECTIONS**

**CHAPTER - I**

**PRELIMINARY**

**Sections**

1. Short title, extent, commencement and application
2. Definitions

**CHAPTER - II**
**ESTABLISHMENT OF ANDHRA PRADESH MARITIME BOARD**

3. Establishment of Andhra Pradesh Maritime Board

4. Disqualification of members
5. Term of office of Members
6. Termination of services of member of Board
7. Eligibility of re-appointment
8. Filling of vacancies
9. Absence of Chairman
10. Meeting of Board
11. Committees of Board
12. Fees and allowances payable to members
13. Members of Board or Committee not to vote in certain cases
14. Defects in appointments not to invalidate acts etc
15. Functions of the Board
16. Delegation of powers
17. Duties of Chairman, and the Chief Executive Officer

**CHAPTER - III**
**STAFF OF THE BOARD**

18. Chief Executive Officer of the Board

19. Financial Controller-cum-Chief Accounts Officer, Officers and employees
of the Board
20. Power to grant leave etc. to employees of Board

**CHAPTER- IV**
**PROPERTY AND CONTRACTS**

21. Transfer of assets and liabilities of State Government to Board

22. Existing rates etc to continue until altered by Board

23. Repayment of capital interest

24. Procedure when land cannot be acquired by agreement

25. Contracts Board

**CHAPTER - V**

**WORKS AND SERVICES TO BE PROVIDED AT NON-MAJOR PORTS BY THE**
**BOARD**

26. Power of Board to execute works and provide appliances

27. Powers of Board to undertake certain works

28. Powers of Board to order sea-going vessels to use docks, wharves etc

29. If accommodation sufficient, all sea-going vessels compelled to use
docks, wharves etc


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30. Power to order vessels not to come alongside of, or to be removed from
docks, wharves etc
31. Power of Government to exempt vessels from obligation to use wharves
etc
32. Board to declare when vessels, other than seagoing vessels compelled to
use dock, wharves etc
33. Performance of services by Board or other person

34. Responsibility of Board for loss of goods etc

35. Accommodation to be provided for officers of Customs in wharves etc
appointed under Customs Act, 1962
36. Power to permit erection of private wharves etc., within limits of a port,
subject to conditions
37. Compensation payable in certain cases where use of any private wharf
etc., rendered unlawful

**CHAPTER - VI**
**IMPOSITION AND RECOVERY OF RATES AT PORTS**

38. Scale of rates for services performed by Board or other person

39. Scale of rates and statement of conditions for use of property belonging
to Board
40. Consolidated rates of combination of services

41. Power to levy concessional rates in certain cases

42. Scale of rates and conditions

43. Power to State Government to require modification or cancellation of
rates.
44. Remission of rates of charges

45. Refund of excess charges

46. Notice of payment of charges short levied or erroneously refunded

47. Time for payment of rates on goods

48. Board’s lien for rates

49. Ship-owner’s lien for freight and other charges

50. Sale of goods after two months, if rates or rent are not paid for freight is
not discharged
51. Disposal of goods not removed from the premises of Board within limit

52. Application of sale proceeds

53. Recovery of rates and charges by distraint of vessel

54. Grant of port clearances after payment of rates, realisation of damages
etc.,
55. Recovery of dues

**CHAPTER - VII**

**BORROWING POWERS OF BOARD**

56. Power to raise loans

57. Board securities

58. Right of joint or several payees of securities

59. Power of two or more joint holders to give receipts

60. Endorsement of the Board security

61. Liability of endorser of the Board security

62. Impression of signature on securities

63. Issue of duplicate security

64. Conversion of securities

65. Discharge certain cases

66. Security for loans taken by Board

67. Remedies of Government in respect of loans made to Board

68. Power of Board to repay loans before due date

69. Establishment of sinking fund

70. Investment and application of sinking fund

71. Annual examination sinking fund

72. Power of Board to raise loans on short term bills


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73. Power of Board to take temporary loans or overdrafts

74. Power of Board to borrow money from world Bank or other foreign
institutions
75. Power of Board to acquire and sell equity stakes in ports and Port related
infrastructure projects

**CHAPTER - VIII**

**REVENUE AND EXPENDITURE**

76. General fund of Board

77. Application of money in General Fund

78. Power of transfer moneys from general fund to specified account and
vice-versa
79. Establishment of Reserve Funds

80. Power to reserve Maritime Board Securities for Board’s own investment

81. Prior sanction of Board to charge expenditure to capital

82. Works requiring sanction of Board or Government

83. Power of Chief Executive Officer as to execution of work

84. Power of Board to compound or compromise claims

85. Write off losses

86. Power etc., of Board as Conservator

87. Budget estimates

88. Preparation of supplementary estimates

89. Re-appropriation of amount in estimates and adherence to estimates
except in emergency
90. Duty of Board to meet liability towards salaries, allowances, pension etc.,

91. Accounts and audit

92. Publication of audit report

93. Board to remedy defects and irregularities pointed out in audit report

94. Government to decide difference between Board and Auditors

**CHAPTER – IX**

**SUPERVISION AND CONTROL OF STATE GOVERNMENT**

95. Administration report

96. Submission of statement of income and expenditure to State Government

97. Power of Government to supersede Board

98. Power of Government to give directions to Board

**CHAPTER – X**

**PENALTIES**

99. Persons employed under this Act to be Public servants for certain
purposes
100. Penalty for contravention of sections 28, 29, 30 and 31

101. Penalty for setting up wharves, quays, etc., without permission

102. Penalty for evading rates, etc.,

103. Recovery of value of damage to property of Board

104. Other offences

105. Cognizance of Offence

106. Offences by Companies

**CHAPTER – XI**

**MISCELLANEOUS**

107. Constitution of State Ports Consultative Committee

108. Local Advisory Committee

109. Limitation of proceedings in respect of things done under this Act

110. Protection of act done in good faith

111. Power of State Government to make rules

112. Power to make regulations

113. Provisions with respect to regulations

114. Power of Government to direct regulations to be made or to make
regulations


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115. Power of Government to make first regulations

116. Power of Government to limit regulatory functions of Board

117. Posting of certain regulations

118. Saving of right of Government and Municipalities to use Wharves etc., for
collection of duties and power of customs officers
119. Application of provisions of this Act to aircraft

120. Power to remove difficulties

121. Certain provisions not to apply to Developers

122. Repeal savings

123. Resolution in case of conflict between Customs Act, 1962 and Andhra
Pradesh Maritime Board Act, 2018

**CHAPTER – XII**

**SECURITY OF THE PORTS**

124. Security of Ports

125. Ports Facility Security Officer and his functions

126. Ports Security Advisory Committee


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**THE ANDHRA PRADESH MARITIME BOARD ACT, 2019**

## ACT No. 16 OF 2019

[13[th] May, 2019]

**AN ACT TO PROVIDE FOR RAPID DEVELOPMENT OF PORT SECTOR**
**AND FOR THE OVERALL DEVELOPMENT OF HINTER LAND AND**
**OFFSHORE** **AREAS** **CONNECTED** **TO** **THE** **PORT-USE** **AND**
**INDUSTRIALISATION** **IN** **PORT** **AREAS** **IN** **ANDRA** **PRADESH,**
**THROUGH ESTABLISHMENT OF THE ANDHRA PRADESH MARITIME**
**BOARD AND TRANSFER TO THE BOARD OF POWERS VESTED IN**
**THE DIRECTOR OF PORTS AND FOR THE EXERCISE AND**
**PERFORMANCE BY OR ON** **BEHALF OF SUCH BOARD,** **OF**
**FUNCTIONS RELATING TO PORTS IN ANDHRA PRADESH; TO**
**PROVIDE FOR THE TRANSFER OF CERTAIN ASSETS TO THE BOARD**
**AND TO MAKE PROIVISION IN RESPECT OF MATTERS ANCILLARY**
**AND INCIDENTAL THERETO OR CONNECTED THEREWITH.**

Be it enacted by the Legislature of the State of Andhra Pradesh in the
Seventieth Year of the Republic of India, as follows:
**CHAPTER – I**
**PRELIMINARY**

**1. Short title, extent, commencement and application - (1) This Act**
may be called the Andhra Pradesh Maritime Board Act, 2018.

(2) It extends to the whole of the State of Andhra Pradesh.

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

(4) It applies to all non-major Ports in the State to which the Indian
Ports Act, 1908 (Act No 15 of 1908) and the amended Acts, if any, by the
Government of India, applies on the date of the commencement of this
Act, and all other non-major Ports in the State with effect from such date,
as may be declared by the State Government by notification in the Andhra
Pradesh Gazette.

**2. Definitions - In this Act, unless the context otherwise requires,-**

(a) "appointed day", in relation to any non-major Port, means the
day on which this Act is made applicable to that Port;

(b) "board" means the Andhra Pradesh Maritime Board established
under section 3;

(c) "board security" means debentures, bonds or dock certificates
issued by the Board in respect of any loan contracted by it under
the provisions of this Act;

(d) "chairman" means the Chairman of the Board appointed under
section 3 and includes the person appointed under section 9 to act
as the Chairman;

(e) “commissioner of customs” means the Commissioner of Customs
as specified in the Customs Act, 1962 (Act No.52 of 1962);


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(f) "dock" includes all basins, locks, cuts, entrances, graving docks,
graving blocks, inclined planes, shipways, gridirons, moorings,
transit sheds, warehouses, godowns, open plots and other works
and things appertaining to any dock and also the portion of the sea
enclosed or protected by the arms or groines of a harbour;

(g) “developer” means any person or entity (owned by either Private
or State/Central Government Undertakings), other than State
Government or the Board who has entered into a contract with the
Board for development and / or, construction and / or operation
and/or maintenance of a port or port terminal and/or related
infrastructure or is approved by the Board to develop an Economic
Zone within the port areas;

(h) “economic zone” means a zone within or geo-physically
connected to the port area declared as such by the Board;

(i) "foreshore" in relation to a port, means the area between the high
water mark and the low water mark relating to that port;

(j) "goods" includes livestock and every kind of movable property;

(k) “government” means the Government of Andhra Pradesh;

(l) "high water mark", in relation to a port, means a line drawn
through the highest point reached by ordinary spring tides during
any season of the year at that port; or as delineated by the
Competent Authority from time to time;

(m) “immovable property” includes wharfage-rights and all other
rights exercisable on, over or in respect of any land, wharf, dock or
pier.

(n) "indian ports Act" means the Indian Ports Act, 1908 (Act No.15 of
1908) and all the amendments thereto from time to time by the
Government of India;

(o) “inland water transport (IWT)” means inland water transport
system including ferry services in the State.

(p) “land” includes the bed of sea or river below high water mark and
also things attached to the earth or permanently fastened to
anything attached to the earth;

(q) “low water mark”, in relation to a port, means a line drawn
through the lowest point reached by ordinary spring tides at any
season of the year at that port; or as delineated by the competent
authority;

(r) “major ports”, shall have the same meaning assigned to it in the
Indian Ports Act, 1908;

(s) "master", in relation to any vessel or craft making use of any nonmajor Port means any person having, for the time being, charge or
control of such vessel or craft, as the case may be, except a pilot,
harbour master, dock master, or berthing master of the port;

(t) "member" means a member of the Board or its committee, as the
case may be, including those duly elected and serving in an advisory
capacity to the Board;


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(u) "non-major Port" means a port other than a major port declared
as such by the State Government by notification in the Andhra
Pradesh Gazette as per the Indian Ports Act, 1908 or under any
other law for the time being in force;

(v) “notification”, means a notification published in the Andhra
Pradesh Gazette and the word ‘notified’ shall be construed
accordingly;

(w) "owner"
(i)  in relation to goods, means and includes any consignor,
consignee, shipper or agent for the sale, custody, loading or
unloading of such goods, and

(ii)   in relation to any vessel or craft making use of any port,
means and includes any port owner, chatterer, consignee or
mortgagee in possession thereof;

(x) "pier" includes any stage, stairs, landing place, hard jetty,
floating barge transhipper or pontoon and any bridges or other
works connected therewith;

**Explanation: For the purpose of this clause transhipper means a**
floating craft or vessel whether dumb or self-propelled, which is
provided for discharging cargo from a barge or wharf and loading it
on to a ship.

(y) "port", means any non-major Port to which this Act applies within
such limits as may, from time to time, be defined by the Government
in consultation with the Ministry of Shipping, Government of India,
so as to ensure coordinated and sustainable development of Port
facilities with waterways and user facilities under the Indian Ports
Act, 1908 (Act No.15 of 1908);

(z) "port approaches", in relation to a Port, means those parts of the
navigable rivers and channels leading to the Port in which the
Indian Ports Act, 1908 applies;

(za) ‘port area’ means such area as may be notified within the
vicinity of the port;

(zb) ‘port facility security officer’ means the Port Facility Security
Officer appointed under section 125;

(zc) “port security advisory committee” means the Port Security
Advisory Committee constituted under section 126;

(zd) “prescribed” means prescribed by rules made by the
Government under this Act;

(ze) “public securities” means,
(i) promissory notes, debentures, stock or other securities of the
Central Government or of any State Government:

Provided that, securities both the principal and the interest
whereof have been fully and unconditionally guaranteed by any
such Government shall be deemed, for the purposes of this
clause, to be the securities of that Government; and

(ii) debentures or other securities for money issued by or on
behalf of any Municipal body, Improvement Trust or Port


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Trust under the authority of any law for the time being in
force in the State and includes the Board Securities;

(zf) "rate" means and includes any toll, dues, rent, fee or charge
leviable under this Act;

(zg) "regulations" means regulations made under this Act;

(zh) “rules” means rules made under this Act;

(zi) "state" means the State of Andhra Pradesh;

(zj) “unit” means a unit set up by an entrepreneur in the Economic
Zone;

(zk) "vessel" includes anything made for the conveyance, mainly by
water, of human being or of goods;

(zl) "wharf” includes any wall or stage and any part of the Land or
Fore-shore that may be used for loading or unloading goods or for
the' embarkation or disembarkation of passengers and any wall
enclosing or adjoining the same;

(zm) All other words and expressions used and not defined in this
Act but defined in the relevant Acts in force in the State, shall have
the same meaning respectively assigned to them thereunder.

**CHAPTER –II**
**ESTABLISHMENT OF ANDHRA PRADESH MARITIME BOARD**

**3. Establishment of Andhra Pradesh Maritime Board - (1) As soon as**
may be after the commencement of this Act, the Government may, by
notification establish a Board to be called “the Andhra Pradesh Maritime
Board.”

(2) The Board shall be a body corporate by the name aforesaid having
perpetual succession and a common seal with power to acquire, hold and
dispose of property, both movable and immovable, and to contract, and
may by the said name sue and be sued.

(3) The head-office of the Board shall be at such place as the State
Government may, by notification direct.

(4) The Board shall consist of such number of members, not being
less than five and not more than 15 (Fifteen) who shall be appointed by
the State Government as follows, namely:

**Ex Officio Members,-**

(a) A person nominated by the Government – Chairman
(b) Secretary to Government, Energy, Infrastructure & Investment
Department – Vice Chairman
(c) Secretary to Government, Fisheries Department – Member
(d) Secretary to Government, Finance Department - Member
(e) Secretary to Government, Industries Department – Member
(f) One representative from all the privatised ports in the State - Member
(g) One representative from the Ministry of Shipping - Member
(h) A representative nominated by the Central Board of Excise and


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Customs - Member
(i) Any other Secretary to Government as nominated by the Government –
Member
(j) Chief Executive Officer of the Board  - Member-Secretary
**Special Invitees:**

(k) One representative of the Indian Navy to be nominated by the
Government of India.
(l) One representative of the Coast guard to be nominated by the
Government of India.
(m)  Representative from the Industry Associations.
(n) Incharge of Coastal Police in Government – Member (Security).

**Selected Members,-**

In addition to the above, the Board shall call for nominations and
elect two independent experts, with the following qualifications who shall
serve as Advisors to the Board for a tenure not exceeding three (3) years:

(i) One independent expert with global experience in maritime trade,
global shipping and supply chain of key cargo commodities.

(ii) One independent expert with vast experience in port policy,
regulations and Public Private Partnership (PPP) contracts, in
major and non-major ports in India and in similar regional and
global geographies.

**4. Disqualification of members - A person may be disqualified from**
being appointed, or for continuing as a member of the Board, if he,

(a)  has been removed or dismissed from the service of Central or State
Government or of local authority or of a corporation owned or
controlled by that Government; or
(b)  has been convicted for an offence involving moral turpitude; or
(c)  is an un discharged insolvent; or
(d) has directly or indirectly any share or interest in any work done by
order of the Board or in any contract or employment with, by or on
behalf of the Board:

Provided that no person shall be deemed to have share or interest in
such work, contract or employment by reason only of his, 
(i) having a share in any company or firm which may contract with
or be employed by or on behalf of the Board; or
(ii) having a share or interest in any newspaper in which any
advertisement relating to the affairs of the Board may be inserted;
or
(iii)  being interested in any loan of money to the Board; or
(iv) having a share or interest in any lease, sale, exchange or
purchase of immovable property or any agreement for the same;
or

(v) having a share or interest in any license by the Board or right by
agreement or otherwise with the Board, to the sole or preferential
use of any premises or property belonging to the Board; or

(vi) having a share or interest in the occasional sale by the Board of a
value not exceeding ten thousand rupees in anyone financial year
of any article in which he trades.


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**5. Term of office of Members - Subject to the provisions of this Act, the**
non-official members of the Board shall hold office for a period not
exceeding three years and their appointment may be terminated at any
time without giving any notice.

**6. Termination of services of member of Board -  (1) The Government**
shall remove a non-official member of the Board, if he,-
(a) is or has become subject to any disqualification mentioned in
section 4; or

(b) refuses to act or becomes incapable of acting; or

(c)has, in the opinion of the Government, become incapable of
representing the interests by virtue of which he was appointed; or

(d) is, without the permission of the Board previously obtained, absent
from six consecutive meetings of the Board; or

(e)is absent from the meetings of the Board for a period exceeding six
consecutive months;

(f) acts in contravention of the provisions of section 13.

(2) A member of the Board, other than the ex-officio member may
resign from his office by tendering his resignation in writing to the
Chairman who shall forward the same to the Government, but the
resignation shall not take effect until it is accepted by the Government.

**7. Eligibility of re-appointment -  Any person ceasing to be a member**
may, unless disqualified under section 4, be eligible for re-appointment;

**8.** **Filling of vacancies - (1) Any vacancy in the office of the non-official**
members of the Board shall be filled as early as possible in the like
manner as if the appointment being made for the first time under the
relevant clause:

Provided that where any vacancy occurs in the office of any such
non-official member within three months preceding the date on which the
term of the office of such member expires under section 5, it shall not be
filled.

(2) A member appointed under sub-section (1) shall hold office so
long only as the member in whose place he has been appointed, would
have held office, if the vacancy had not occurred.

**9. Absence of Chairman - If the Chairman is absent on leave or**
otherwise, the Vice-Chairman and in the absence of both the Chairman as
well as the Vice-Chairman, such person as the State Government may
appoint, shall act as the Chairman.

**10. Meeting of Board - (1) The Board shall hold meetings at such times**
and places and shall subject to the provisions of sub-sections (2), (3) and
(4) follow such procedure in regard to the transaction of business at its
meetings as provided by the regulations:

Provided that the Board shall meet atleast once in every month.

(2) The Chairman, and in his absence the Vice-Chairman, and in the


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absence of both the Chairman as well as the Vice-Chairman, any person
chosen by the members present from amongst themselves, shall preside at
meetings of the Board.

(3) All questions at a meeting of the Board shall be decided by a
majority of the votes of the ex-officio members present and voting and, in
the case of equality of votes, the person presiding shall have a second or
casting vote.

(4) The number of members necessary to constitute a quorum at a
meeting shall be such as may be provided in the regulations.

**11. Committees of Board - (1) The Board may, from time to time**
constitute such committee or committees consisting of one or more of the
Board’s members and such other members as may be nominated by the
Government from time to time for providing advice to the Board in
carrying out its functions under the Act, on such terms and conditions as
may be prescribed.

(2) In addition to the committees under sub-section (1), the Board
may, from time to time, constitute from amongst its members one or more
Committees, consisting of such number as the Board may consider
necessary, for the purpose of discharging such of its duties and functions
as may be delegated to such Committee or Committees by the Board.

(3) A committee constituted under sub-sections (1) and (2) shall meet
at such time and at such place and shall follow such procedure in regard
to the transaction of business at its meetings including the quorum as
may be provided by regulations.

**12.** **Fees and allowances payable to members -** The non-official
members shall be paid by the Board such fees and allowances for
attending meetings of the Board or of any of its Committees and for
attending to any work of the Board, as may be prescribed:

Provided that,-
(a) no fees shall be payable to a member who is a Member of
Parliament or State Legislature;

(b) any allowances payable to a member who is a Member of
Parliament or State Legislature shall not exceed the
compensatory allowance as defined in clause (a) of section 2
of the Parliament (Prevention of Disqualification) Act, 1959
(Act No.10 of 1959) or as the case may be, in the Andhra
Pradesh (Payment of Salaries and Pension and Removal of
Disqualifications) Act, 1953 (Act No.2 of 1954).

**13. Members of Boards or Committee not to vote in certain cases -**

A member of the Board or of a Committee thereof, who, 
(i)  has any direct or indirect pecuniary interest in any matter coming
up for consideration at a meeting of the Board or a Committee
thereof, or

(ii) is interested professionally on behalf of a client or as agent for
any person other than the Government or an undertaking owned
or controlled by the Government or a local authority or a trade


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union registered under the Trade Unions Act, 1926 (Act 16 of
1926) or member of an association formed for the purpose of
promoting the interest or welfare of any class of employees of the
Board, shall as soon as possible after relevant circumstances
have come to his knowledge disclose the nature of his interest at
such meeting and the disclosure shall be recorded in the
minutes of the meeting of the Board or, as the case may be, the
Committee, and the member shall not take part in any
deliberation or decision of the Board or the Committee with
respect to that matter.

**14. Defects in appointments not to invalidate acts etc - No act or**
proceeding of the Board or of any of its Committees shall be invalid merely
by reason of,
(a) any vacancy therein or any defect in the constitution thereof;

(b) any disqualification of or any defect in the appointment of, a
person acting as a member thereof; or
(c) any member having acted or taken part in any proceedings in
contravention of section 13;

(d) any irregularity in its procedure not affecting merits of the case.

**15. Functions of the Board - (1) The Board shall, subject to the**
provisions of this Act, have administrative control over the port areas in
the State, and exercise the following functions namely,
(a) to initiate and develop plans and frame guidelines for the port
sector in the State;

(b) to be the State Government’s agency in protection of its
sovereign rights in governing waterfront land on the state
coastline;

(c) to promote the use, development and improvement of non-major
Ports in the State;

(d) to facilitate the development of port connectivity projects, and other
inland infrastructure needed for the effective development of nonmajor Ports in the state;

(e) to provide, maintain and operate ports in the State;

(f) to be designated as the State’s agency in all contracts and agreements
entered with private port developers, including but not limited to
concession, state support and land lease agreements for the purpose
of enabling port infrastructure development, and be assigned all
associated duties and obligations;

(g) to actively monitor the performance of private port developers and
conduct independent performance audits on operations, capacity
development, safety and security;

(h) to provide and maintain adequate and efficient lighthouses, beacons
and other lights, buoys and other navigational aids and services at
such places as the Board may deem appropriate;

(i)to regulate and control navigation within the limits of the port and the
approaches to the ports of the State;

(j)to exercise licensing and regulatory functions in respect of port
infrastructure and services;


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(k) to exercise supervision and control over all port works in the state
including those works contracted out to third parties;

(l)to frame, make modifications and approve as required, the scale of
rates for services provided by the Board which shall be collected from
users of the State’s ports through the port operators and developers;

(m) to plan or provide or secure the provision of, a safe, economical and
efficient sea transport system for movement of goods and persons in
the State;

(n) to provide or ensure the provision of such other services and facilities
as are in the opinion of the Board necessary for the operations of the
ports in the State;

(o) to furnish to the Government all information in respect to its property
and activities in such manner and at such times as the Government
may require;

(p) to enable development of existing and new non-major ports in the
State as per Indian Ports Act, 1908, and other State Acts;

(q) to encourage port based industries and economic activity within port
areas and in areas physically connected thereto;

(r) to promote environmental enhancement of the onshore and offshore
areas within its jurisdiction in addition to meeting statutory
environmental standards and conditions set by International,
National and State authorities from time to time;

(s) to have the right to acquire and sell shares in Special Purpose
Vehicles, executing Ports and related infrastructure facilities, for the
purpose of effective discharge of its functions, and to secure the
rights of the state government;

(t) to be empowered to receive grants and loans from the state
government for the purpose of investment in maritime and its related
infrastructure and services;

(u) to undertake technical economic and comparative studies from time
to time, in order to maintain a rolling maritime Master Plan, that
shall form the basis of port capacity development;

(v) to promote development of shipbuilding, ship-breaking, ship repair,
Inland water navigation and infrastructure creation and coastal
shipping, along the coastline of the state;

(w) to acquire land and sell, lease or allot them towards creation of port
and port-linked infrastructure facilities;

(x) to promote the development of allied Maritime and Logistic activities
like tourism, education and skill building etc. Or any other activity as
may be specified by Government from time to time;

(y) to implement the policy of the Government, the orders of the
Government and directions of the Government that may be issued
from time to time in respect of all non-major ports in the State.

(z) To develop new non-major ports in the State as per Indian Ports Act,
1908 with the approval of the Government subject to obtaining
security clearance for new projects from Ministry of Home Affairs,
Government of India.


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(za) To maintain and regulate ferry services and inland water transport
system:

Provided that the Board shall ensure that all security clearance
pertaining to projects/developments/operation of non-major/private
ports are processed in consultation with concerned Central Security
Agencies and in accordance with the Standard Operating Procedure
recommended by the task force on national security committee on
strengthening maritime and coastal security (NCSMCS) against threats
from the sea.

(zb) To recommend to the State Government new and innovative policies
conducive to enhance trade volumes and private investment in the
maritime sector and its allied areas

(zc) To provide or ensure the providing of such other services and other
facilities as are in the opinion of the Board necessary for the efficient
operation of ports systems in the State.

(zd) To take up Public Private Partnership (PPP) Projects as per the
guidelines of erstwhile Planning Commission as subsequently
amended, by Government of India.

(2) Notwithstanding anything contained in any other State Act, the
State Government shall constitute a Port Proximal Area Development
Authority (PPADA) for each Port, under the chairmanship of the Board,
and with ex-officio representation from Department of Industries,
Department of Infrastructure and local authorities governing the area upto
and within a distance of 10 km measured outward towards the land side
from the port’s limits, but not exceeding beyond its exclusivity limits along
the shore which are defined under the concession agreement. The
Authority shall prepare a master plan for the said area. Such plans shall
be submitted to the State Government for notification. The local
authorities providing sanctions for development/buildings shall seek prior
approval of the Authority before sanctioning such developments/
buildings if it is not in accordance with such notified master plan as may
be notified by the Government from time to time.

(3) Nothing in this section shall be construed as imposing on the
Board, directly or indirectly, any form of duty or liability enforceable by
proceedings before any court.

(4) Board can also take up development of Port outside the State.

(5) In addition to the functions under sub-section (1), the Board shall
undertake such other functions as the Government may assign to the
Board from time to time, and the provisions of this Act shall apply to the
Board in respect of such functions.

**16.** **Delegation of powers - The Board may, with the previous approval**
of the State Government, direct that such of the powers and duties
conferred or imposed upon the Board by or under this Act as may be
specified in such direction, may also be exercised or performed by the
Chief Executive Officer subject to such conditions and restrictions as may
be specified in such direction:
Provided that the Chief Executive Officer shall exercise the powers
and perform the duties specified in the direction, subject to the overall
supervision and the control of the Board:


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Provided further that all actions taken in pursuance of the powers
delegated by the Board must be ratified by the Board in its next meeting
with or without modifications.

**17. Duties of Chairman, and the Chief Executive Officer - (1) The**
Chairman may, and the Chief Executive Officer shall attend all meetings of
the Board unless prevented by sickness or other reasonable cause.

(2) The Chief Executive Officer shall, as soon as possible, transmit to
the Government a copy of the minutes of every meeting of the Board and
shall furnish to the Government such reports, returns, documents or
other information as it may, from time to time, call for.

(3) The Chief Executive Officer shall exercise supervision and control
over the acts of all employees of the Board in the matters of executive
administration and in matters concerning the accounts and records of the
Board.
**CHAPTER – III**
**STAFF OF THE BOARD**

**18. Chief Executive Officer of the Board - (1) The State Government**
shall appoint a suitably qualified and experienced individual as the Chief
Executive Officer of the Board.

(2) The qualifications, salary, allowances and other conditions of
service of the Chief Executive Officer and other officers of the Board shall
be such as may be prescribed.

**19. Financial Controller-cum-Chief Accounts Officer, Officers and**
**employees of the Board -** (1) The Board shall appoint a person
possessing the qualification as may be prescribed to be the Financial
Controller-Cum-Chief Accounts Officer on such terms and conditions as
may be prescribed.

(2) The Board may create such other posts and appoint such other
officers and employees including contract employees/workers as it
considers necessary for the efficient performance of the functions of the
Board and determine by regulations, their conditions of appointment and
service and remuneration payable to them:

Provided that no person shall be appointed as a Pilot at any Port who
is not for the time being authorised by the Board under the Indian Ports
Act, 1908 to pilot vessels at that Port:

Provided further that no permanent employee is appointed without
prior sanction of the Government.

(3) The Board shall, from time to time, prepare and sanction a
Schedule of the employees of the Board considered necessary, adequate
and proper to maintain for the purposes of this Act and such Schedule
shall indicate therein the designations, grades of employees and the
salaries, fees and allowances which are proposed to be paid to them in the
form of Service Rules for the employees of the Board distinct from the


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conditions of employment applicable to Government deputationists in the
Board.
**20. Power to grant leave etc. to employees of Board - (1) All employees**
serving under the Government either regular, work-charged or contingent
employee immediately before such day solely or mainly for or in
connection with the affairs of non-major Ports shall become employees of
the Board, and each shall hold his office or service therein for the same
tenure and upon the same terms and conditions of service as he would
have held the same if the Board had not been established and shall
continue to do so until his retirement either on superannuation, medical
invalidation, voluntary retirement or removal from service in accordance
with the terms and conditions of his employment.

(2) The Board shall have the power of granting leave and extension of
service to the employees of the Board. The Board shall also have the power
to suspend, remove, dismiss employees, and to otherwise dispose of any
other question relating to the services of the employees of the Board:

Provided that no punishment of dismissal, removal or reduction in
rank of regular employees transferred from State Government to the Board
shall be imposed without following required procedure under Andhra
Pradesh Civil Services (Classification, Control and Appeal) Rules, 1991
and the prior sanction of the Government.

**CHAPTER – IV**
**PROPERTY AND CONTRACTS**

**21. Transfer of assets and liabilities of State Government to Board -**
On and from the appointed day in relation to any Port,
(a) all property, assets and funds and all rights to levy rates vested in
the State Government for the purposes of the Port, immediately
before such day, shall vest in the Board;

(b)  all debts, obligations and liabilities incurred, all contracts entered
into and all matters and things engaged to be done by, with, or
for, the State Government immediately before such day, for or in
connection with the purposes of the Port shall be deemed to have
been incurred, entered into and engaged to be done by, with, or
for, the Board and it is hereby clarified that such contracts shall
include those entered in relation with development of the Port,
including State Support and Land Lease Agreements, provided for
the Port and Port-linked industrial development;

(c)  all non-recurring expenditure incurred by the State Government
for or in connection with the purposes of the Port upto such day
and declared to be capital expenditure by the State Government
shall be treated as the capital provided by the Government to the
Board;

(d) all rates, fees, rents and other sums of money due to the
Government in relation to the Port, immediately before such day,
shall be deemed to be due to the Board;

(e) all suits and other legal proceedings instituted by or against the
Government immediately before such day for any matter in
relation to Port, may be continued by or against the Board;


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(f)  all employees serving under the Government either regular, workcharged or contingent employee immediately before such day
shall be transferred to the Board in accordance with under subsection (1) of section 20;

(g) all existing service rules applicable to employees serving under the
State Government shall be applicable to the employees
transferred from State Government to the Board under subsection (1) of section 20 including:
(i) the existing pay scales of Andhra Pradesh Government;

(ii) all other allowances such as dearness allowance, house rent
allowance etc, applicable to Government employees;

(iii) all revisions in pay scales by the State Government, as may
be provided for from time to time, for Government
employees;

(iv) Any other benefits like compassionate appointment, medical
reimbursements, leave travel concession, surrender leave
etc. extended by the State Government to its employees
from time to time.

(h) (i) all pensionery benefits in respect of employees appointed before
01.09.2004 and covered under Andhra Pradesh Revised Pension
Rules, 1980 and transferred from the Government to the Board in
accordance with sub-section (1) of section 20, shall be finalised by
the Accountant-General, and paid accordingly, as in the case of
other State Government employees as per the Andhra Pradesh
Revised Pension Rules, 1980 and as amended from time to time.

(ii) All pensionery benefits of such employees whose services
were rendered earlier in the Government as well as in the
Board shall be settled by the Accountant General and paid
accordingly through the Andhra Pradesh State Treasury.

(iii) In respect of employees appointed on or after 01.09.2004
and uncovered under Andhra Pradesh Revised Pension
Rules, 1980, the Board shall pay applicable pension
contribution under New Pension Scheme from its funds for
the service rendered by the employee along with employee
share/contribution by way of challan to the Treasury to
upload the data to Center for Record Agency (CRA) for
crediting into the individual account and the procedure for
uploading the data of Contribution Pensions (C.Ps) as may
be specified by Government by way executive orders from
time to time.

(i)  Not withstanding anything contained in rule 35 and rule 36 or any
other rule of the Andhra Pradesh Revised Pension Rules, 1980,
the employees absorbed in the Andhra Pradesh Maritime Board
from the Andhra Pradesh Port Department will get all pensionery
benefits including family pension. The interest of the employees
absorbed in the Board shall not detrimentally be affected by such
absorption in any manner.

**22.** **Existing rates etc to continue until altered by Board - On and**
from the appointed day, all rates, fees and other charges in relation to any
Port shall unless and until varied continue to be levied and collected, at
the same rate at which they were being levied and collected by the State
Government before such day.


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**23. Repayment of capital with interest - (1) The Board shall repay, at**
such intervals and on such terms and conditions as the Government may
determine, the amount which is treated under clause (c) of section 21 as
capital provided by the Government, with interest at such rate as may be
fixed by the Government and such repayment of capital or payment of
interest shall be deemed to be a part of the expenditure of the Board.

(2) The State Government may collect waterfront royalty from the
Board for cargo handled at the Non-Major Ports of the State and such
royalty may be paid by the Board to the State Government for use of the
waterfront and such payment would be considered a part of the expenses
of the Board.

**24.** **Procedure when land cannot be acquired by agreement -**
Government may, at the request of the Board, procure the acquisition of
land under the provisions of the Right to Fair Compensation and
Transparency in Land Acquisition, Rehabilitation and

Resettlement Act, 2013 (Central Act 30 of 2013), and on payment by the
Board of the compensation awarded under that Act and of the charges
incurred by the Government in connection with the proceedings, the land
shall vest in the Board.

**25. Contracts by Board - With respect to the making of contracts by the**
Board for the purposes of this Act, the following provisions shall have
effect, namely:
(a) Every contract shall be made on behalf of the Board by the Chief
Executive Officer or an Officer authorised by the Board;

(b) No contract for leasing waterfront, waterway and jetty and
corresponding infrastructural facilities thereof for a term
exceeding five years shall be made without prior approval of the
Government on such terms and conditions as it may think fit;

(c)  No contract for the acquisition or sale of immovable property or
for the lease of any such property for a term exceeding thirty
years, shall be made unless it is previously approved by the
State Government, on such terms and conditions as it any
thinks fit;

(d) Every concession or lease or licence agreement or such other
commercial arrangement with any developers and/or operators
for development, construction, finance, operation and
maintenance of port and/or port terminals and /or related
infrastructure and / or industrial infrastructure in port areas
shall be in accordance with the provisions contained in the
Andhra Pradesh Infrastructure Development Enabling Act, 2001
wherein the Board shall be the deemed Infrastructure Authority
under section 3 of the said Act:

Provided that a developer or as the case may be a bidding
consortium so selected shall have proportionate net worth of not
less than equity component of the estimated cost of the project
as certified by a reputed financial institution as may be
prescribed;

(e) The form and manner of executing contracts on behalf of the
Board shall be such as may be prescribed by rules;


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(f) Any contract made in contravention of the provisions of this Act
and the rules made hereunder shall not be binding on the
Government.
**CHAPTER – V**
**WORKS AND SERVICES TO BE PROVIDED AT**
**NON-MAJOR PORTS BY THE BOARD**

**26. Power of Board to execute works and provide appliances - (1) The**
Board may, subject to any other law for the time being in force, execute
such works, within or beyond the limits of a port and provide such
appliances as it may deem necessary or expedient.

(2) Such works and appliances may include,
(a) wharves, quays, docks, stages, jetties, piers, place of
anchorage and other works within the Port or Port
approaches or on the foreshore of the Port or Port
approaches in the State, with all such convenient arches,
drains, landing places, stairs, fences, roads, bridges,
tunnels and approaches, and buildings required for the
residence of the employees of the Board as it may
considered necessary;

(b) buses, locomotives, rolling stock, sheds, hotels,
warehouses and other accommodation for passengers and
goods and other appliances for carrying passengers and for
conveying, receiving and storing goods landed, or to be
shipped or otherwise;

(c) moorings and cranes, scales and all other necessary means
and appliances for loading and unloading of vessels;

(d) reclaiming, excavating, enclosing and raising any part of the
foreshore of the port or port approaches which may be
necessary for the execution of the works authorised by this
Act or otherwise for the purposes of this Act;

(e) such breakwaters and other works as may be expedient for
protection of the port;

(f) dredgers and other machines for cleaning, widening,
deepening and improving any portion of the port or port
approaches or of the foreshore of the port or port
approaches;

(g) light-houses, light-ships, beacons, buoys, pilot boats and
other appliances necessary for the safe navigation of the
port and the port approaches in so far as it relates to State
functions;

(h) vessels, tugs, boats, barges and launches and lighters for
the use within the limits of the port or beyond those limits,
whether in territorial waters or otherwise, for the purpose of
towing or rendering assistance to any vessel whether
entering or leaving the port or bound elsewhere and for the
purpose of saving or protecting life or property and for the
purposes of landing, shipping or transhipping passengers or
goods under section 32;

(i) sinking of tube wells and equipment, maintenance and use


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of boats, barges and other appliances for the purpose of the
supply of water at the port;

(j) engines and other appliances necessary for extinguishing of
fires;

(k) lands abutting the sea coast including creeks;

(l) ferry boats and other works and equipment appertaining to
the running ferry service at or between the ports;

(m) construction of models and plans for carrying out hydraulic
studies;

(n) dry docks, slipways, boat basins and workshop to carry out
repairs or overhauling of vessels, tugs, boats, machinery or
other appliances;

(o) all other works and appliances as may be necessary for
achieving the objectives set out for the Board under this
Act.

(3) The Board shall comply with the relevant environmental
regulations and applicable laws while undertaking works and services at
ports in the State;

(4) The Board shall ensure that all the non-major ports as well as
upcoming private ports have security infrastructure in place before
commencing operations and security clearance pertaining to
Projects/developments operation of non-major ports are processed in
consultation with concerned Central Security agencies;

(5) The Board shall ensure the port managements are accountable
for security infrastructure including, deployment of Police
personnel/armed security guards in keeping with the security
environment, threat inputs and security advisories from Central and State
security agencies. The board will have powers to take action against the
port (Management) including suspension of operations, for failing to
ensure required security arrangement.

**27.** **Powers of Board to undertake certain works - (1) The Board may**
undertake to carry out on behalf of any person any works or services or
any class of works or services, on such terms and conditions as may be
agreed upon between the Board and the person concerned.

(2) The Board may, if it considers necessary or expedient in the
public interest so to do, lend any of its vessels or appliances or the
services of any of its employees to any person for such period not
exceeding three months and on such terms and conditions as may be
agreed upon between the Board and the person concerned.

(3) The Board may, if it considers necessary or expedient in the
public interest so to do invest in sea-side, land-side and connectivity
infrastructure for enabling port development, and other special
infrastructure facilities for promotion of maritime trade and maritimerelated industries, like ship-building and inland waterways, where found
necessary and at its discretion.


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**28. Powers of Board to order sea-going vessels to use docks wharves etc –**

(1) When any dock, berth, wharf, quay, stage, jetty or pier erected
at any port or port approaches under the provisions of this Act has been
completed with sufficient warehouses, sheds and appliances for receiving,
landing or shipping goods or passengers from and upon sea-going vessels,
the Board after the Custom Cargo Service Provider obtains the approval of
the Commissioner of Customs and by notification published in three
consecutive issues of the Official Gazette, declare that such dock, berth,
wharf, quay, stage, jetty, pier or place of anchorage is ready for receiving,
landing and shipping or for landing or for shipping goods or passengers
from and upon sea-going vessels:
Provided that the Board shall ensure that prior to such
notifications, the provisions of sections 29 and 33 of the Customs Act,
1962 shall be complied with which provides that the person-in-charge of a
vessel shall not cause or permit the vessel to call at any place other than a
Customs Port and that unloading of imported goods and loading of export
goods shall not take place in any place other than a place approved under
clause (a) of section 8 of the said Act for the unloading or loading of such
goods, except with the permission of the proper officer.

(2) As from the date of the publication of such notification for the
third time, it shall be lawful for the Board, from time to time, when there
is room at such dock, berth, wharf, quay, stage, jetty or pier, to order to
come alongside of such dock, berth, wharf, quay, stage, jetty, pier or place
of anchorage for the purpose of landing and shipping goods or passengers
or for landing or for shipping the same any seagoing vessel within the port
or port approaches which has not commenced to discharge goods or
passengers or which being about to take in goods or passengers has not
commenced to do so:

Provided that before making such order the Board shall have regard,
as far as possible, to the convenience of such vessel and of the shippers in
respect of the use of any particular dock, berth, wharf, quay, stage, jetty,
pier or place of anchorage including mid operation:

Provided further that if the Board is not the Conservator of the port,
the Board shall not itself make the order as aforesaid but shall require the
Conservator of the Port or other person exercising the rights, powers and
authorities of the Conservator of the Port to make such order.

**29.** **If accommodation sufficient, all sea-going vessels compelled to**
**use docks, Wharves etc., -** When sufficient number of docks, berths,
wharves, quays, stages, jetties or piers have been provided at any port or
port approaches as aforesaid, the Board after the Customs Cargo Service
provider obtains the approval of the Commissioner of Customs and by
notification published in three consecutive issues of the Official Gazette,
direct that no goods or passengers shall be landed or shipped from or
upon any sea-going vessel within the Non-Major port or port approaches
otherwise than at such docks, berths, wharves, quays, stages, jetties or
piers, except with the sanction of the Board and in accordance with such
conditions as the Board may specify:

Provided that the Board shall ensure that prior to such
notifications, the provisions of sections 29 and 33 of the Customs Act,


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1962 shall be complied with which provides that the person-in-charge of a
vessel shall not cause or permit the vessel to call at any place other than a
Customs Port and that unloading of imported goods and loading of export
goods shall not take place in any place other than a place approved under
clause (a) of section 8 of the said Act for the unloading of loading of such
goods, except with the permission of the proper officer.

**30.** **Power to order vessels not to come alongside of, or to be**
**removed from docks, wharves etc., - Any Officer appointed by the**
Board in this behalf, may, in cases of emergency or for any reason which
appears to him sufficient, by notice in writing, order the master or owner
or agent of any sea-going vessel not to bring such vessel alongside of, or to
remove such vessel from any dock, berth, wharf, quay, stage, jetty, pier or
place of anchorage belonging to or under the control of the Board and if,
such notice is not complied with, the Board may charge in respect of such
vessel such sum as may be notified during which such vessel remains at
such dock, berth, wharf, quay, stage, jetty, pier or place of anchorage:

Provided that in the case of vessel ordered to be removed, such
charges shall not commence to be made till after the expiry of twelve
hours from the service of such notice as aforesaid on the master or owner
or agent of the vessel.

**31. Power of Government to exempt vessels from obligation to use**
**wharves etc., - Notwithstanding anything contained in section 28 or 29**
but subject to the provision of the Customs Act, 1962 the Government
may, if in its opinion it is necessary in the public interest so to do, by
general or special order, from time to time, permit certain specified vessels
or classes of vessels to discharge or ship goods or certain specified goods
or classes of goods at such place in a port or within the port approaches,
in such manner, during such period and subject to such payments to the
Board and on such conditions as the Government may think fit.

**32. Board to declare when vessels, other than seagoing vessels**
**compelled to use dock, wharves etc., - (1) When any dock, berth, wharf,**
quay, stage, jetty, pier or place of anchorage for receiving, landing or
shipment of goods or passengers from or upon vessels, not being seagoing
vessels, has been made and completed with all proper appliances in that
behalf, the Board may, after obtaining the approval of the Commissioner
of Customs, by order published in the Andhra Pradesh Gazette,
(i) declare that such dock, berth, wharf, quay, stage, jetty, pier or
place of anchorage is ready for receiving, landing or shipment of
goods or passengers from or on vessels not being sea-going
vessels; and

(ii) direct that within certain limits to be specified therein it shall not
be lawful without the express sanction of the Board, to land or
ship any goods or passengers, out of, or into, any vessel not being
sea-going vessel of any class, specified in such order, except at
such dock, berth, wharf, quay, stage, jetty, pier or place of
anchorage.

(2) As from the date of the publication of the order mentioned in
sub-section (1), it shall not be lawful, without the consent of the Board, for
any vessel of such class,
(i) to land or ship any goods or passengers at any place within the


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limits so specified except at such dock, berth, wharf, quay, stage,
jetty, pier or place of anchorage;
(ii) while within such limits, to anchor, fasten or lie within fifty yards
of the ordinary low-water mark.

(3) If after the publication of such order, any such vessel, while
within the limits so specified, so anchor, fasten or lie, it shall be lawful for
the Board to cause the same to be removed out of the said limits at the
expense of the master or owner or agent of the vessel.

**33.** **Performance services by Board or other person - (1) The Board**
shall have the power to undertake the following services in all ports other
than those developed and operated or operated by a Developer :
(a) stevedoring, landing, shipping or transhipping passengers and
goods between vessels in Port and the wharves, piers, quays or
docks belonging to or in the possession of the Board;

(b) receiving, removing, shifting, transporting, storing or delivering
goods brought within the Board's premises;

(c) carrying passengers within the limits of the port or port
approaches, by such means and subject to such restrictions and
conditions as the State Government may think fit to impose; and

(d) piloting, hauling, mooring, re-mooring, hooking or measuring of
vessels or any other service in respect of vessels.

(2) The Board may, if so requested by the owner, take charge of the
domestic goods for the purpose of performing the service or services and
shall give a receipt in such form as the Board may specify and in case of
export and import goods, the Board, if so requested by the owner, may
take over such goods if the Board takes over as Customs Cargo Service
Provider as specified under Handling of Customs Area Regulations, issued
from time to time under section 141 (2) of the Customs Act, 1962.

(3) Notwithstanding anything contained in this section, the Board
may authorise any person to perform any of the services mentioned in
sub-section (1) on such terms and conditions as may be agreed upon in
case of domestic goods and for import and export goods if the Board is the
appointed Customs Cargo Service Provider as notified by Commissioner
Customs as specified under Handling of Customs Area Regulations, issued
from time to time under section 141 (2) of the Customs Act, 1962.

(4) No person authorised under sub-section (3) who has been
appointed to perform any of the services mentioned in sub-section (1) for
ports developed and operated or operated by the Board, shall charge or
recover for such service any sum in excess of the amount leviable
according to the scale framed under section 38, 39 or 41.

(5) Any such person shall, if so required by the owner, perform in
respect of the goods any of the services and for that purpose take charge
of the goods and give a receipt in such form as the Board may specify:

Provided that handling of exported/imported goods shall be done in
accordance with the provisions of the Handling of Customs Area
Regulations, issued from time to time under section 141 (2) of the
Customs Act, 1962.

(6) The responsibility of any such person for the loss, destruction or


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deterioration of goods of which he has taken charge shall, subject to the
other provisions of this Act, be that of a bailee under sections 151, 152
and 161 of the Indian Contract Act, 1872 (Act No 9 of 1872):

Provided that handling of exported/imported goods shall be done in
accordance with the provisions of the “Handling of Customs Area
Regulations, issued from time to time under section 141 (2) of the
Customs Act, 1962.

(7) After any goods have been taken charge of and a receipt given for
them under this section, no liability for any loss or damage which may
occur to them shall attach to any person to whom a receipt has been given
or to the master or owner of the vessel from which the goods have been
landed or transshipped:

Provided that handling of exported/imported goods shall be done in
accordance with the provisions of the “Handling of Customs Area
Regulations, issued from time to time under section 141 (2) of the
Customs Act, 1962.

**34. Responsibility of Board for loss of goods etc., - (1) Subject to the**
provisions of this Act, the responsibility of the Board for the loss,
destruction or deterioration of goods of which it has taken charge shall,
(i) in the case of goods received for carriage by railway, be governed
by the provisions of the Railways Act, 1989 (Act No.24 of 1989) and

(ii) in other cases, be that of a bailee under sections 151, 152 and
161 of the Indian Contract Act, 1872, omitting the words "in the
absence of any special contract" in section 152 of that Act:

Provided that, no responsibility under this section shall attach to the
Board,
(a) until a receipt mentioned in sub-section (2) of section 33 is
given by the Board; and

(b) after the expiry of such period as may be prescribed by
regulations from the date of taking charge of such goods by the
Board.

(2) The Board’s responsibility for the loss, destruction or deterioration
of, or damage to, goods of which it has taken charge, unless notice of such
loss or damage has been given within such period as may be prescribed by
regulations made in this behalf from the date of taking charge of such
goods by the Board under sub-section (2) of section 33 shall be limited to
as provided in section 45 of the Customs Act, 1962 for imported and
exported goods:

Provided that the Board shall have to execute all the
responsibilities as provided in section 45 of the Customs Act, 1962 in case
of import and export goods for which the Board is Customs Cargo Service
Provider under Handling of Cargo in Customs Areas Regulations, issued
from time to time.

**35.** **Accommodation to be provided for officers of Customs in**
**wharves etc., appointed under Customs Act, 1962 - (1) Where the**
Commissioner of Customs has, under the provisions of any Act for the levy
of duties of customs, appointed any dock, berth, wharf, quay, stage, jetty,


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pier, place of anchorage, warehouse or shed or a portion of any warehouse
or shed provided at any port under the provisions of this Act for the use of
sea-going vessels to be an approved place for the landing or shipping of
goods or a warehouse for the storing of dutiable goods on the first imports
thereof without payment of duty, within the meaning of the firstmentioned Act, the Board in all ports other than those developed and
operated or operated by a Developer and for which the Board itself is the
Customs Cargo Service Provider as specified under Handling of Cargo and
Customs Area Regulations, 2009 shall set apart and maintain such place
on or adjoining such dock, wharf, quay, stage, jetty, pier or a place of
anchorage or in such warehouse or shed or portion thereof, for the use of
Officers of Customs as may be necessary and operated or operated by a
Developer:

Provided that the office space and accommodation to Customs
officers shall be as prescribed by Handling of Cargo in Customs Area
Regulation issued from time to time.

(2) Notwithstanding that any dock, berth, wharf, quay, stage, jetty,
pier, place of anchorage, warehouse or shed or portion thereof at any port
has, under the provisions of sub-section (1), been set apart for the use of
the Officers of Customs at the port, all rates and other charges payable
under this Act in respect thereof or for the storage of goods therein, shall
be payable to the Board, or to such person or persons as may be
appointed by the Board to receive the same. However, the customs will
not be required to pay anything for the above mentioned facilities or any
other facility provided as per Handling of Cargo and Customs Area
Regulations, issued from time to time.

**36. Power to permit erection of private wharves etc., within limits of**
**a port subject to conditions - (1) No person shall make, erect or fix**
within the limits of a port or port approaches any wharf, dock, quay,
stage, jetty, pier, erection or mooring within the said limits except with the
previous permission in writing of the Board and subject to such terms and
conditions, if any, as the Board may specify

(2) If any person makes, erects or fixes any wharf, dock, quay, stage,
jetty, pier, erection or mooring in contravention of sub-section (1), the
Board may, by notice, require such person to remove it within such time
as may be specified in the notice and if the person fails so to remove it, the
Board may cause it to be removed at the expense of that person.

**37. Compensation payable in certain cases where use of any private**
**wharf, etc., rendered unlawful - (1) Where as a result of an order under**
section 28, or section 31, the use of any wharf, dock, berth, quay, stage,
jetty, pier, or place of anchorage, made fixed or erected by any person is
rendered unlawful, the Board may, after hearing the person concerned by
order, close, remove, fill up or destroy such wharf, dock, berth, quay,
stage, jetty, pier, erection or mooring wharf, dock, quay, stage, jetty, pier
of anchorage, or permit the use thereof to such person on payment of
such rates and charges as the Board may determine.

(2) Save as otherwise provided under sub-section (3), no person shall
be entitled to claim compensation for any injury, damage or loss, caused
or alleged to have been caused by an order made under sub-section (1).


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(3) If it is proved to the satisfaction of the Board that any such wharf,
dock, berth, quay, stage, jetty, pier or place of anchorage, was made, fixed
or erected by any person with the previous permission of the authority
competent to grant such permission, and that the erection/construction
had been made in full compliance of the terms of such permission,, he
shall be paid by the Board compensation, the amount of which shall be
determined in the manner and in accordance with the principles
hereinafter set out, that is to say;
(a) in computing the compensation, there shall not be taken into
account any rates or other charges which such person shall be
liable to pay for using any wharf, dock, berth, quay, stage, jetty,
pier, or place of anchorage, provided by the Board.

(b) the amount of compensation shall be calculated with reference to
the cost of construction of such wharf, dock, berth, quay, stage,
jetty, pier or place of anchorage;

(c) where the amount of compensation can be fixed by agreement, it
shall be paid in accordance with such agreement;

(d) where no such agreement can be reached, the State Government
shall appoint an arbitrator, a person who is, or has been, or is
qualified for appointment as a Judge of a High Court;

(e) at the commencement of the proceeding before the arbitrator, the
Board and the person to be compensated shall state what in their
respective opinion is a fair amount of compensation;

(f) the provisions under the Arbitration and Conciliation Act, 1996
(Act No.26 of 1996) shall apply to arbitrations under this Act.

**CHAPTER – VI**
**IMPOSITION AND RECOVERY OF RATES AT PORTS**

**38. Scale of rates for services performed by Board or other person -**

(1) The Board shall, from time to time, for ports developed and
operated or operated by it, frame by regulations a scale of rates at which
and a statement of the conditions under which, any of the services
specified hereunder shall be performed by itself or any person authorised
under section 33 at or in relation to port or port approaches,
(a) transhipping of passengers or goods between vessels in the port or
port approaches;

(b) stevedoring, landing and shipping of passengers or goods from or
to such vessels, to or from any wharf, quay, jetty, pier, dock,
berth, mooring, stage, or erection, land or building in the
possession or occupation of the Board or at any place within the
limits of the port or port approaches;

(c) cranage or porterage of goods on any such place;

(d) wharfage, storage or demurrage of goods on any such place; and

(e) Waterfront royalty; and

(f) any other service in respect of vessels, passengers or goods
excepting the services in respect of vessels for which fees are


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chargeable under the Indian Port Act, 1908.

(2) In addition to the above, the Board shall also be empowered by
regulations, to levy an additional “Cargo Cess” to be levied on users
procuring any or all of the services provided by any of the Ports in the
state. Such cess shall be notified by the Board for the first year and shall
be suitably escalated every year. Such cess shall be collected through the
agency of the Ports, and shall be utilised for investment in enabling
infrastructure for ports, port connectivity projects, enabling infrastructure
for shipbuilding, shipbreaking and ship-repair, port proximal area
development, enabling infrastructure for inland waterways and terminals,
coastal shipping and inland shipping.

(3) Different scales of rates and conditions may be framed for
different classes of goods and vessels and for different ports, in respect of
the above charges and cess.

**39. Scale of rates and statement of conditions for use of property**
**belonging to Board - (1) The Board shall, from time to time, for ports**
developed and operated or operated by it, also frame a scale of rates on
payment of which and a statement of conditions under which any property
belonging to, or in the possession or occupation of the Board or any place
within the limits of the port or port approaches may be used for the
purposes specified hereunder:

(a) approaching or lying at or alongside any buoy, mooring, wharf,
quay, pier, dock, land, building or place as aforesaid by vessels;

(b) entering upon or plying for hire at or on any wharf, quay, pier,
dock, land, building, road bridge, approach or place as aforesaid
by animals or vehicles carrying passengers or goods;

(c) leasing of land or sheds by owners of goods imported or intended
for export or by steamer agents;

(d) any other use of any land, building, works, vessels or appliances
belonging to or provided by the Board.

(e) provide free of cost or rent fully furnished office accommodation
and residential accommodation for Customs as per Handling of
Cargo in Customs Areas Regulations, issued from time to time.

(2) Different scales of rates and conditions may be framed for
different classes of goods and vessels and for different ports.

**40.** **Consolidated rates of combination of services - The Board may,**
from time to time, for ports developed and operated or operated by it,
frame a consolidated scale of rates for any combination of the services
specified in section 38 or for any combination of such service or services
with any use or permission to use any property belonging to, or in the
possession or occupation of the Board, as specified in section 39.

**41.** **Power to levy concessional rates in certain cases - In framing**
scales of rates under any of the foregoing provisions of this Chapter, the
Board may prescribe a lower rate in respect of, 
(a) coastal goods, that is to say, goods other than imported goods as
defined in the Customs Act, 1962 (Act No.52 of 1962), carried in a


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vessel from one Indian port to another Indian Port:

Provided that, the Board shall not make any discrimination
between one Indian port and another such port in prescribing a lower
rate under this section;

(b) other goods in special cases.

**42.** **Scale of rates and conditions - Every scale of rates and every**
statement of conditions framed by the Board, with the permission of the
State Government, for ports developed and operated or operated by it,
under the foregoing provisions of this Chapter shall be published by the
Board in the Andhra Pradesh Gazette and shall there upon take effect.

**43.** **Power of State Government to require modification or**
**cancellation of rates -** (1) Whenever the Government considers it
necessary in the public interest so to do, it may, by order in writing, direct
the Board to cancel any of the scales in force or modify the same within
such period as it may specify;

(2) If the Board fails or neglects to comply with such direction
within the specified period, the Government may cancel any of such scales
or make such modifications therein as it may think fit:

Provided that, before so cancelling or modifying any scale, the
Government shall consider any objection or suggestion which may be
made by the Board during the specified period.

(3) When in pursuance of this section any of the scales has been
cancelled or modified, such cancellation or modification shall be published
by the Government in the Andhra Pradesh Gazette and shall thereupon
have effect, accordingly.

**44. Remission of rates of charges - The Board may, in special cases, and**
for reasons to be recorded in writing, exempt either wholly or partly any
goods, vehicles, or vessels or class of goods, vehicles or vessels from the
payment of any rate or of any charge leviable in respect thereof according
to any scale of rates in force under this Act or remit the whole or any
portion of such rate or charge so levied.

**45.** **Refund of excess charges - No person shall be entitled to refund of**
an excess charge made by the Board unless his claim to the refund has
been preferred in writing by him or on his behalf to the Board within six
months from the date of payment duly supported by all original relevant
documents:

Provided that the Board may, of its own motion, remit excess
charges made in its bills at any time.

**46. Notice of payment of charges short levied or erroneously**
**refunded - (1) When the Board is satisfied that any charge leviable under**
this Chapter has been short levied or erroneously refunded, it may issue a
notice to the person who is liable to pay such charge or to whom the
refund has erroneously been made, requiring him to show cause why he
should not pay the amount specified in the notice:

(a) when the charge is short levied, from the date of the payment of
the charge,


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(b) where a charge has been erroneously refunded, from the date of
the refund.

(2) The Board may, after considering the representation, if any, made
by the person to whom notice has been issued under sub-section (1),
determine the amount due from such person and thereupon such person
shall pay the amount so determined.

**47. Time for payment of rates on goods - The rates in respect of goods**
to be landed shall be payable immediately on the landing of the goods and
rates in respect of goods to be removed from the premises of the Board or
to be shipped for export or to be transhipped shall be payable before the
goods are removed, shipped or transhipped.

**48. Board’s lien for rates - (1) For the amount of all rates leviable by the**
Board under this Act, in respect of any goods and for the rent due to the
Board for any building, plinths, stacking areas or other premises on or in
which any goods may have been placed, the Board shall have a lien on
such goods and may seize and detain the same until such rates and rent
are fully paid.

(2) Such lien shall have priority over all other liens and claims,
except for general average and for the ship-owner's lien upon the said
goods for freight and other charges where such lien exists and has been
preserved in the manner provided in sub-section (1) of section 49 and for
money payable to the Central Government under any law for the time
being in force, relating to customs other than by way of penalty or fine and
to the Government under any law for the time being in force.

**49. Ship-owner’s lien for freight and other charges - (1) If the master**
or owner of any vessel or his agent at or before the time of landing from
such vessels any goods at any dock, wharf, quay, stage, jetty, berth,
mooring or pier belonging to, or in occupation of the Board, gives to the
Board a notice in writing that such goods are to remain subject to a lien
for freight or other charges payable to the ship-owner, to an amount to be
mentioned in such notice, such goods shall continue to be liable to such
lien to such amount.

(2) The goods shall be retained in the custody of the Board at the risk
and expense of the owners of the goods until such lien is discharged as
hereinafter mentioned and godown and storage rent shall be payable by
the party entitled to such goods for the time during which they may be so
retained.

(3) Upon the production before any officer appointed by the Board in
that behalf of a document purporting to be a receipt for, or release from
the amount of such lien, executed by the person by whom or on whose
behalf such notice has been given, the Board may permit such goods to be
removed after taking reasonable care with respect to the authenticity of
such document.

**50.** **Sale of goods after two months, if rates or rent are not paid for**
**freight is not discharged -** (1) The Board may, after the expiry of two
months from the time when any goods have passed into its custody, or in
the case of animals and perishable or hazardous goods after the expiry of
such shorter period not being less than twenty four hours after the
landing of the animals or goods as the Board may think fit, sell by public


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auction or in such cases as the Board considers it necessary so to do, for
reasons to be recorded in writing, sell by tender, private agreement or in
any other manner such goods or so much thereof as in the opinion of the
Board may be necessary,-
(a) if any rates payable to the Board in respect of such goods have not
been paid, or

(b) if any rent payable to the Board in respect of any place on or in
which such goods have been stored has not been paid, or

(c) if any lien of any ship-owner for freight or other charges of which
notice has been given has not been discharged and if the person
claiming such lien for freight or other charges has made to the
Board an application for such sale.

(2) Before making such sale, the Board shall give ten days notice of
the same by publication thereof in the Andhra Pradesh Gazette, and also
in atleast one of the principal local daily newspapers:

Provided that, in the case of animals and perishable or hazardous
goods the Board may give such shorter notice and in such manner as, in
the opinion of the Board, the urgency of the case admits of.

(3) If the address of the owner of the goods has been stated in the
manifest of the goods or in any of the documents which have come into
the possession of the Board or is otherwise known, notice shall also be
given to him by letter delivered at such address or sent by post, but the
title of a bonafide purchaser of such goods shall neither be invalidated by
reason of the omission to send such notice nor shall any such purchaser
be bound to inquire whether notice has been sent.

(4) Notwithstanding anything contained in this section, controlled
goods may be sold at such time and in such manner as the Government
may direct.

**Explanation:- In this section and section 51 "controlled goods" means**
goods, the price or disposal of which is regulated under any law for the
time being in force.

**51. Disposal of goods not removed from the premises of Board within**
**limit - (1) Notwithstanding anything contained in this Act, where any**
goods placed in the custody of the Board/Customs Cargo Service Provider
upon the landing thereof are not removed by the owner or other person
entitled thereto from the premises of the Board/Customs Station within
thirty days from the date on which such goods were placed in their
custody or within such further time as the proper officer may allow the
Customs may, if the address of such owner or person is known, cause a
notice to be served upon him by letter delivered at such address or sent by
post, or if the notice cannot be so served upon him or his address is not
known, cause a notice to be published in the Andhra Pradesh Gazette,
and also in atleast one of the principal local daily newspapers requiring
him to remove the goods forth with and stating that in default of
compliance therewith the goods are liable to be sold by public auction or
by tender, agreement or in any other manner:

Provided that, where all the rates and charges payable under this
Act in respect of any such goods have been paid, no notice of removal
shall be so served or published under this sub-section unless two months


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have expired from the date on which the goods were placed in the custody
of the Board.

(2) The notice referred to in sub-section (1) may also be served on the
agents of the vessel by which such goods were landed.

(3) If such owner or person does not comply with the requisition in
the notice served upon him or published under sub-section (1), the Board
may, at any time after the expiration of thirty dates from the date on
which such goods were placed in its custody, sell the goods by public
auction or, in such cases as the Board considers it necessary so to do, for
reasons to be recorded in writing, sell by tender, agreement or in any other
manner such goods or so much thereof in the opinion of the Board may be
necessary after giving notice of the sale in the manner specified in subsections (2) and (3) of section 50.

(4) Notwithstanding anything contained in sub-section (1) or subsection (3),(a) the Board may in the case of animals and perishable or
hazardous goods give notice of removal of such goods although,
the period of thirty days has not been expired or give such
shorter notice of sale in such manner as in the opinion of the
Board urgency of the case requires;

(b) controlled goods may be sold in accordance with the provisions
of sub-section (4) of section 50.

(5) The Government may, if it deems necessary so to do in the public
interest, by notification in the Andhra Pradesh Gazette exempt any goods
or classes of goods from the operation of this section:

Provided that in custom area the Board shall ensure that the
manner of disposal of unclaimed/unclear cargo shall be in accordance
with rules prescribed under section 48 of the Customs Act, 1962 read with
Handling of Cargo in Customs Areas Regulations, issued from time to
time.

**52.** **Application of sale proceeds - The proceeds of every sale under**
section 50 or section 51 shall be applied in the following order,
(a) firstly to the payment of the expenses of the sale;

(b) next to the payment, of the freight and other charges, if any,
payable in respect of the goods sold, to the carrier, if notice of
such charges has been given to the Board having custody of the
goods,

(c) next to the payment of the duty, if any, on the goods sold,

(d) next to the payment of the charges in respect of the goods sold
due to the Board having the custody of the goods,

(e) next to the payment of any amount due from the owner of the
goods to the Central Government under the provisions of the
Customs Act, 1962 or any other law relating to customs, and the
balance, if any, shall be paid to the owner of the goods.


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**53.** **Recovery of rates and charges by distraint of vessel - (1) If the**
master of any vessel in respect of which any rates or penalties are payable
under this Act, or under any regulations or orders made in pursuance
thereof, refuses or neglects to pay the same or any part thereof on
demand, the Board may distrain or arrest such vessel and tackle, apparel
and furniture belonging thereto or any part thereof and detain the same
until the amount so due to the Board, together with such further amount
as may accrue for any period during which the vessel is under distraint or
arrest, is paid.

(2) In case any part of the said rates or penalties or of the cost of the
distress or arrest or the keeping of the same, remains unpaid for the
period of five days next after any such distress or arrest has been so
made, the Board may cause the vessel or other thing so distrained or
arrested to be sold and with the proceeds of such sale, shall satisfy such
rates or penalties and cost, including the cost of sale remaining unpaid,
rendering the surplus (if any), to the master of such vessel on demand.

**54.** **Grant of port clearances after payment of rates, reliasation of**
**damages etc., -** If the Board gives to the Officer of the Central
Government whose duty is to grant the port clearance to any vessel at the
port, a notice stating-(i) that an amount specified therein is due in respect of rates,
fines, penalties or expenses chargeable under this Act or under
any regulations or orders made in pursuance thereof, against
such vessel, or by the owner or master of such vessel in respect
thereof, or against or in respect of any goods on board such
vessel; or
(ii) that an amount specified therein is due in respect of any
damage referred to in section 103 and such amount together
with the cost of the proceedings for the recovery thereof before
a Magistrate under that section has not been realised, such
officer shall not grant such port clearance until the amount so
chargeable or due has been paid or, as the case may be, the
damage and cost have been realised.

**55. Recovery of dues - Any dues payable to the Board, not withstanding**
anything contained in this Act, also be recovered by the Board or its
authorised representative by invoking the provisions of Act No.2 of 1864.
The Andhra Pradesh Revenue Recovery Act, 1864 and shall be recovered
as that of land Revenue.

**CHAPTER – VII**
**BORROWING POWERS OF BOARD**

**56. Power to raise loans - (1) The Board may raise loans of duration**
greater than one year, with the previous sanction of the Government on
such terms and conditions as may be prescribed by Government for the
purposes of this Act.

(2) Loans may be raised by the Board in the open market on the Board
Securities issued by it or may be obtained from the Government or a Bank
approved by the Government.

**57. Board securities - (1) The Board may, with the sanction of the**


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Government, prescribed by regulations the form in which the Securities of
the Board shall be issued by the Board and the mode in which, and the
conditions subject to which, they may be transferred.

(2) The holder of any Board Security in any form may obtain in
exchange therefor, upon such terms as the Board may, from time to time,
determine, a Board Security in other form prescribed by regulations.

(3) The right to sue in respect of money secured by the Board
Securities shall be exercisable by the holders thereof for the time being
without preference in respect of priority of date.

**58. Right of joint or several payees of securities - (1) Notwithstanding**
anything contained in section 45 of the Indian Contract Act, 1872 (Act No
9 of 1872),
(a) when any Board Security is payable to two or more persons jointly
and either or any of them dies, such security shall be payable to
the survivor or survivors of those persons, and

(b) when any such security is payable to two or more persons
severally and either or any of them dies, the security shall be
payable to the survivor or survivors of those persons or to the
representatives of the deceased or to any of them.

(2) Nothing herein contained shall affect any claim which any
representative of a deceased person may have against the survivor or
survivors under or in respect of any security to which sub-section (1)
applies.

(3) for the purposes of this Act, a body incorporated or deemed to be
incorporated under the Companies Act, 2013 (Act 18 of 2013), or any
other enactment for the time being in force, whether within or outside
India shall be deemed to die when it is dissolved.

**59. Power of two or more joint holders to give receipts - Where two or**
more persons are joint holders of any Board Security, anyone of those
persons may give an effectual receipt for any interest payable in respect of
such security unless notice to the contrary has been given to the Board by
any other holders.

**60.** **Endorsement of the Board security - Endorsement of a Board**
Security which is transferable by endorsement shall be valid when the
maker or holder of the Board security signs the same in accordance with
the provisions of Section 15 of the Negotiable Instruments Act, 1881 (Act
No.26 of 1881).

**61.** **Liability of endorser of the Board security - A person shall, by**
reason of his having endorsed any Board Security, be liable to pay any
money due whether as principal or as interest thereunder, unless his
liability is excluded or made conditional in accordance with the provisions
of Section 35 of the Negotiable Instruments Act, 1881.

**62. Impression of signature on securities - (1) The signature of the**
person authorised to sign the Board Securities on behalf of the Board,
may be printed, engraved or lithographed or impressed by such
mechanical process as the Board may direct.


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(2) A signature so printed, engraved, lithographed, impressed or
otherwise shall be valid as if it had been inscribed in the proper
handwriting of the person so authorised.

**63. Issue of duplicate security - (1) When any Board Security is alleged**
to have been lost, stolen or destroyed either wholly or in part and a person
claims to be the person to whom but for the loss, theft or destruction it
would be payable, he may, on application to the Board and on producing
proof to its satisfaction of the loss, theft or destruction and of the justice of
the claim, and on payment of such fee, if any, as may be prescribed by
regulations, obtain from the Board an order for,
(a) the issue of a duplicate security payable to the applicant; and

(b) the payment of interest in respect of the security said to be lost,
stolen or destroyed pending the issue of a duplicate security.

(2) An order shall not be passed under sub-section (1) until after the
issue by the Board of the notification of the loss, theft or destruction in
the manner prescribed by regulations.

(3) A list of securities in respect of which an order is passed under
sub-section (1) shall be published in such manner as the Board may
prescribe by regulations.

(4) If at any time before the Board becomes discharged under the
provisions of this Act from liability in respect of any security the whole of
which is al1eged to have been lost, stolen or destroyed, such security is
found, any order passed in respect thereof under this section shall be
cancelled.

**64.** **Conversion of securities - (1) The Board may, subject to such**
conditions as it may prescribe by regulation on the application of a person
claiming to be entitled to Board Security or securities issued by it, on
being satisfied of the justice of the claim and on delivery of the security or
securities received in such manner and on payment of such fee, if any, as
it may prescribe by regulation, convert, consolidate or sub-divide the
security or securities, and issue to the applicant a new security or
securities, accordingly.

(2) The conversion, consolidation or sub-division referred to in subsection (1) may be into a security or securities of the same or different
classes or of the same or different loans.

**65. Discharge in certain cases - Notwithstanding anything contained in**
the Limitation Act, 1963 (Act No.36 of 1963), the Board shall be
discharged from all liabilities in respect of the security or securities so
paid or in place of which a duplicate or new security or securities has or
have been used:
(a) on payment of the amount due on a Board Security on or after the
date on which payment becomes due, or

(b) when a duplicate security has been issued under section 63, or

(c) When a new security or securities has or have been issued upon


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conversion, consolidation or sub-division under section 64,

(i) in the case of payment, after the lapse of six years from the
date on which payment was due;

(ii) in the case of a duplicate security after the lapse of six years
from the date of the publication under sub-section (3) of
section 63 of the list in which the security is first mentioned
or from the date of the last payment of interest on the
original security, whichever is later;

(iii) in the case of a new security issued upon conversion,
consolidation or sub-division after the lapse of six years
from the date of the issue thereof.

**66.** **Security for loans taken by Board - All loans raised by the Board**
under this Act shall be a first charge on,
(a) the property vested or which may hereafter during the currency
of the loans become vested in the Board other than,-
(i) any sum set apart by the Board,
(1) as sinking fund for the purpose of paying off any loan; or

(2) for the payment of pension to its employees;

(ii) the provident or pension fund established by the Board; and

(b) the rates leviable by the Board under this Act.

**67. Remedies of Government in respect of loans made to Board - The**
Government shall have in respect of loans made by it to the Board the
same remedies as holders of Board Securities issued by the Board; and
Government shall not be deemed to possess any prior or greater rights in
respect of such loans than holders of such Board Securities:

Provided that when the terms of any such loan made before the
appointed day contain express provision that the loan shall have priority
over all other loans in the matter of repayment by the Board, such loan
shall have priority.

**68.** **Power of Board to repay loans before due date - The Board may,**
with the previous sanction of Government, apply any sums out of moneys
which may come into its hands under the provisions of this Act and which
can be so applied without prejudicing the security of the other holders of
the Board Securities, in repaying to Government any sum which may
remain due to it in respect of the principal of any loan although the time
fixed for the repayment of the same may not have arrived:

Provided that no such repayment shall be made of any sum less
than ten thousand rupees; and that if such repayment is made, the
amount of interest in each succeeding installment shall be so adjusted as
to represent exactly the interest due on the outstanding principal.

**69. Establishment of sinking fund - (1) If in respect of a loan raised by**
the Board under this Act, which is not repayable before the expiration of
one year from date of the loan, the Government by an order in writing so


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directs, the Board shall set apart half yearly, out of its income, as a
sinking fund, a sum sufficient to liquidate the loan within a period which
shall not in any case, unless the previous consent of the Government has
been obtained, exceed twenty five years; but the maximum period shall
not in any case exceed forty years:

Provided that a sinking fund need not in the absence of any
stipulation to that effect be established in the case of loan taken by the
Board from the Central Government or any State Government.

(2) Where any sinking fund has, before the appointed day, been
established by any authority in respect of a loan raised by it, for which the
Board is liable under this Act, the sinking fund so established by that
authority shall be deemed to have been established by the Board under
this section.

**70. Investment and application of sinking fund - (1) The sums so set**
apart by the Board under sub-section (1) of section 69 shall be invested in
Public Securities or in such other securities as the Board may approve in
this behalf and shall be held by the Board in trust for the purposes of this
Act.

(2) The Board may apply the whole or any part of the sums
accumulated in any sinking fund in or towards the discharge of the
moneys for the repayment of which the fund has been established:

Provided that it pays into the fund in each year and accumulates,
until the whole of the moneys borrowed are discharged, a sum equivalent
to the interest which would have been produced by the sinking fund or the
part of the sinking fund so applied.

**71. Annual examination of sinking fund - (1) A sinking fund established**
for the liquidation of any loan shall be subject to annual examination by
such person as may be appointed by the Government in this behalf and
the person so appointed shall ascertain whether the cash and the current
market value of the securities at the credit of the fund are actually equal
to the amount which would have been accumulated if, investment had
been regularly made and the rate of interest as originally estimated had
been obtained thereon.

(2) The Board shall pay forthwith into the sinking fund any amount
which the person appointed under sub-section (1) to conduct the annual
examination of the fund may certify to be deficient unless the Government
specifically sanctions a gradual readjustment.

(3) If the cash and current market value of the securities at the credit
of a sinking fund are in excess of the amount which should be at its
credit, the person appointed under sub-section (1) shall certify the amount
of the excess and the Board may, reduce or discontinue the half yearly
contributions to the sinking fund required under section 69.

**72. Power of Board raise loans on short term bills - Nothing contained**
in this Act shall be deemed to affect the power of the Board to raise loans
under the Local Authorities Loans Act, 1914 (Act No.9 of 1914).


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**73.** **Power of Board to take temporary loans or overdrafts -**
Notwithstanding anything contained in this Act, the Board may,
(1) borrow moneys by means of temporary overdraft or otherwise by
placing the securities held by the Board in its reserve funds or on security
of the fixed deposits of the Board in its banks;

(2) obtain advances from such banks on pledge or by hypothecation
of its current assets and mortgage of its fixed assets without the previous
sanction of the Government:

Provided that such temporary overdraft or other loans,
(a) shall not at any time have a longer currency than one year;
and

(b) all moneys so borrowed by overdrafts or otherwise shall be
expended for the purpose of this Act.

**74.** **Power of Board to borrow money from World Bank or other**
**foreign institutions - Notwithstanding anything contained in this Act but**
subject to any other law for the time being in force, the Board may, with
the previous sanction of the Government and on such terms and
conditions as may be approved by the Government, raise for the purposes
of this Act loans in any currency or currencies from the World Bank or
from any other Bank or Institution in any country outside India, and no
other provision of this Chapter shall apply to or in relation to any such
loan unless the terms and conditions of the loan or the approval thereof
by the Government otherwise provide.

**75. Power of Board to acquire and sell equity stakes in Ports and Port**
**-related infrastructure projects - (1) Notwithstanding anything contained**
in this Act but subject to any other law for the time being in force, the
Board may, with the previous sanction of the Government and on such
terms and conditions as may be approved by the Government, become an
equity stakeholder in projects related to infrastructure development for
ports and port-linked services, against consideration of cash or in kind
(including land and other fiscal and non-fiscal support provided).

(2) The Board shall, by regulations, frame operating procedures for
sale of such shares in a manner that secures the financial and economic
interests of the State Government in such projects, including measures to
gain from windfall gains.

(3) The Board shall reserve the right to retain the surplus from such
transactions, for its future investment in enabling infrastructure for ports,
port connectivity projects, enabling infrastructure for shipbuilding, ship
breaking and ship-repair, port proximal area development, enabling
infrastructure for inland waterways and terminals, coastal shipping and
inland shipping.

**CHAPTER – VIII**
**REVENUE AND EXPENDITURE**

**76. General fund of Board - The Board shall have and maintain its own**
fund called the General Fund of the Board to which shall be credited all
moneys received by or on behalf of the Board under the provisions of this
Act and all moneys received by it from the Government by way of grants,
subventions, loans and advances, and as the Conservator of the Ports and
of their approaches or as the body appointed under section 36 of the


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Indian Ports Act. 1908 (Act No. 15 of 1908).

**77. Application of money in General Fund - (1) The moneys credited to**
the General Fund under section 76 shall be applied by the Board in
payment of the following charges, namely,
(a) the interest and installments of principal due in respect of any
loan that may have been raised or obtained by the Board or for
the repayment of which the Board may be liable and payments to
the sinking fund established for such loan;

(b) the salaries, fees, remunerations, allowances, pensions, gratuities,
compassionate allowances or other moneys due to,
(i) the Chairman, and other members of the Board;
(ii) the employees of the Board; and
(iii) the surviving relatives, if any, of such employees;

(c) the contributions, if any, payable to the Central or State
Government on account of pension and leave allowance of any
Officer lent to the Board by such Government;

(d) the cost and expenses, if any, incurred by the Board in the
conduct and administration of any provident fund, welfare fund,
loan or special fund established by the Board;

(e) the contributions, if any, duly authorised to be made, by
regulations made under this Act, to any such fund referred to in
clause (d);

(f)  such sums as may, from time to time, be agreed upon by the
Board and the Government or the Central Government or any
other authority, as a reasonable contribution payable by the
Board towards the expenses in connection with the watch and
ward functions of the Police Force or the Central Industrial
Security Force or any other Force which the Government or the
Central Government or any other authority, as the case may be,
may establish and maintain for the protection of the port and
docks, warehouses and other property of the Board;

(g) the cost of repairs and maintenance of the property belonging to,
or vested in, the Board and all charges upon the same and all
working expenses;

(h) the waterfront royalty that may be payable to the Government
under sub-section (2) of section 23;

(i) the cost of the execution and provision of any new work or
appliance specified in section 26 which the Board may determine
to charge to revenue;

(j) any expenditure incurred under section 27;

(k) any other expenditure which may be incurred by the Board
generally for the purposes of this Act;

(l) any other charge which may on the application of the Board or
otherwise be specially sanctioned by the Government or for which
the Board may be legally liable.

(2) All moneys standing at the credit of the Board which cannot
immediately be applied in the manner or for the purposes specified in subsection (1) shall,

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(a) be deposited in the State Bank of India or any other nationalized
bank, or in any corporation or financial institution controlled and
managed by the State Government as the Board may decide;
(b) be invested in such public securities as may be determined by the
Board and the said securities shall be held in trust by the Board
for the purposes of this Act.

**78. Power of transfer moneys from general fund to specified account**
**and vice-versa - The Board may apply any sum out of the moneys**
credited to the General Fund of the Board towards meeting deficits, if any,
in the particular or specified accounts such as pilotage account, if so
maintained or transfer the whole or part of any surplus funds in such
particular accounts to the General Fund of the Board.

**79.** **Establishment of Reserve Funds - The Board may, from time to**
time, set apart such sums out of its surplus income as it thinks fit as a
reserve fund or funds for the purpose of expanding existing facilities or
creating new facilities at the ports or for the purpose of providing against
any temporary decrease of revenue or increase of expenditure arising from
transient causes or for purposes of replacement or for meeting
expenditure arising from loss of damage from fire, cyclones, shipwrecks or
other accident or for any other emergency arising in the ordinary conduct
of its works under this Act:

Provided that the sums set apart annually in respect of and the
aggregate at any time of, any such reserve fund or funds shall not exceed
such amount as may, from time to time, be fixed in that behalf by the
Board, subject to notifications issued by the Government in this behalf.

**80. Power to reserve Maritime board Securities for Board’s own**
**investment - (1) For the purposes of any investment which the Board is**
authorised to make under this Act, it shall be lawful for the Board to
reserve and set apart any securities to be issued by it on account of any
loan to which the consent of the Government has been given, provided
that the intention to so reserve and set apart such securities has been
notified as a condition to the issue of the loan.

(2) The issue of such securities by the Board direct to and in the
name of the Board shall not operate to extinguish or cancel such
securities, but every security so issued shall be valid in all respects as if
issued to, and in the name of, any other person.

(3) The purchase by the Board or the transfer, assignment or
endorsement to the Board of any security issued by the Board, shall not
operate to extinguish or cancel any such security but the same shall be
valid and negotiable in the same manner and to the same extent as if held
by or transferred or assigned or endorsed to any other person.

**81. Prior sanction of Board to charge expenditure to capital - (1) No**
expenditure shall be charged by the Board to capital without the previous
sanction of the Government, through Budget approval:

Provided that the Board may without such sanction charge to capital
expenditure not exceeding such limits as may be specified and subject to
such conditions as may be imposed by the Government.

(2) Nothing in sub-section (1) shall be deemed to require the further


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sanction of the State Government in any case where the actual
expenditure incurred does not exceed by more than ten percent of the
estimated cost so sanctioned.

**82.** **Works requiring sanction of Board or Government - (1) No new**
work or appliance, the estimated cost of which exceeds such amount as
may be fixed by the Government in this behalf, shall be commenced or
provided by the Board nor shall any contract be entered into by the Board
in respect of any such new work or appliance until a plan of an estimate
for such work or appliance has been submitted to, and approved by the
Board; and in case the estimated cost of any such new work or appliance
exceeds such amount, as may, from time to time, be fixed by the
Government. In this behalf, sanction of the Government to the plan and
estimate shall be obtained before such work is commenced or appliance
provided.

(2) Nothing in sub-section (1) shall be deemed to require further
sanction of the Government in any case where the actual expenditure
incurred does not exceed by more than ten percent of the estimated cost
so sanctioned.

**83. Power of Chief Executive Officer as to execution of work -**

Notwithstanding anything contained in section 82, the Chief
Executive Officer may direct the execution of any work the cost of which
does not exceed such maximum limit as may be fixed by the Board in that
behalf and may enter into contracts for the execution of such works but in
every such case the Chief Executive Officer shall, as soon as possible,
make a report to the Board of any such direction given or contract entered
into by him.

**84.** **Power of Board to compound or compromise claims - The Board**
may compound or compromise any claim or demand or any action or suit
instituted by or against it for such sum of money or other compensation
as it deems sufficient.

**85. Write off losses - (1) Subject to such conditions as may be specified**
by the Government, where the Board is of opinion that any amount due to
or any loss, whether of money or of property incurred by the Board
irrecoverable, the Board may, write off the said amount or loss;

(2) Not withstanding anything contained in sub-section (1), where the
Chief Executive Officer is of opinion that any amount due to or any loss,
whether of money or of property, incurred by the Board is irrecoverable,
the Chief Executive Officer may sanction the written-off finally of such
amount or loss provided that such amount or loss does not exceed, in an
individual case, five thousand rupees or in the aggregate in any one year,
one lakh of rupees and in every such case, the Chief Executive Officer
shall make a report to the Board giving reasons for such sanction.

**86.** **Power etc., of Board as Conservator - All the powers, authorities**
and restrictions in respect of the work authorized under this Act, shall
apply to the works which may be executed by the Board as the
Conservator of the Port or as the body appointed under sub-section (1) of
section 36 of the Indian Ports Act, 1908 and also to the sanction of such
works, the estimate thereof and the expenditure thereunder.


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**87. Budget estimates - (1) The Board shall on or before the thirty- first**
day of January in each year, hold a special meeting at which the Chief
Executive Officer of the Board shall submit an estimate of the income and
expenditure of the Board for the next financial year, in such form as the
Government may specify.

(2) A copy of such estimate shall be sent by post or otherwise to each
member of the Board so as to reach him not less than ten clear days prior
to the date appointed for the special meeting referred to in sub-section (1).

(3) The Board shall consider the estimate at such meeting and may
provisionally approve it with or without modification.

(4) The Board shall, on or before the tenth day of February, cause a
copy of such estimate as provisionally approved by it, to be sent to the
Government.

(5) The Government may sanction the estimate or may return it with
remarks and may call for such additional information as it may deem
necessary.

(6) When an estimate is returned under sub-section (5), the Board
shall proceed to reconsider the estimate with reference to such remarks
and shall furnish such additional information as the Government may call
for and shall, if necessary, modify or alter the estimate and resubmit it to
the Government.

(7) The Government shall sanction the estimate with or without
modification.

(8) Where such estimate is not sanctioned by the Government before
the commencement of the financial year to which it relates, the
Government may authorise the Board to incur such expenditure as may
be necessary in the opinion of the Government until such time as the
approval of the estimate by the Government is communicated to the
Board.

**88.** **Preparation of supplementary estimates - The Board may in the**
course of any year for which an estimate has been sanctioned by the State
Government cause one or more supplementary estimates for the residue of
such year to be prepared and the provisions of section 87 shall, so far as
may be, apply to such estimate as if it were an original annual estimate.

**89.** **Re-appropriation of amount in estimates and adherence to**
**estimates except in emergency - (1) Subject to any directions which the**
Government may give in this behalf, any sum of money or part thereof, of
which the expenditure has been authorised in an estimate for the time
being in force sanctioned, by the Board and which has not been so spent,
may at any time be re-appropriated to meet any excess in any other
expenditure authorised in the said estimate.

(2) Subject to the provision under sub-section (1), no sum exceeding
such amount as the Government may fix in this behalf shall, save in cases
of emergency, be expended by, or on behalf of, the Board unless such sum
is included in some estimate of the Board at the time in force which has
been finally sanctioned by the Government.


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(3) If any sum exceeding such limit as may have been fixed in this
behalf under sub-section (2) is so expended by the Board on a pressing
emergency, the circumstances shall be forthwith reported by the Chief
Executive Officer to the Government together with an explanation of the
way in which it is proposed by the Board to cover such extra expenditure.

**90. Duty of Board to meet liability towards salaries, allowances,**
**pension etc., - It shall be the duty of the Board to meet its liability**
towards the following during preparation of annual budget estimates and
incurring expenditure for the year,
(a) the salaries, fees, remunerations, allowances, pensions,
gratuities, compassionate allowances or other moneys due to,
(i) members of the Board;
(ii) the employees of the Board; and
(iii) the surviving relatives, if any, of such employees;

(b) the contributions, if any, payable to the Central or State
Government on account of pension and leave allowance of any
Officer lent to the Board by such Government;

(c) The cost and expenses, if any, incurred by the Board in the
conduct and administration of any provident fund, welfare fund,
loan or special fund established by the Board;

**91. Accounts and audit - (1) The Board shall maintain proper accounts**
and other relevant records and prepare the annual statement of account
including the balance-sheet in such form as may be approved by the
Government.

(2) The accounts of the Board shall be audited once in every year and
if so required by the Government concurrently with the compilation of
such accounts by an auditor appointed by the Government in consultation
with the Comptroller and Auditor General of India (hereinafter referred to
as "the Auditor") and any amount payable to such Auditor by the Board in
respect of such audit shall be debitable to the General Fund of the Board.

(3) The Auditor shall have the same rights, privileges and authority in
connection with the audit of the accounts of the Board as the Comptroller
and Auditor General of India has in connection with the audit of the
Government accounts and in particular, shall have the right to demand
production of books of accounts, connected vouchers and other
documents of the Board.

**92. Publication of audit report - (1) Within fourteen days after the audit**
and examination of the accounts of the Board have been completed, the
Auditor shall forward copies of the audit report to the Government and to
the Board.

(2) The Government shall cause every audit report to be laid for not
less than thirty days before the State Legislature as soon as may be after
such report is received by the Government.

**93. Board to remedy defects and irregularities pointed out in audit**
**report –**

The Board shall forthwith take into consideration any defects or
irregularities that may be pointed out by the Auditor, in the audit report
on the income and expenditure of the Board and shall take such action
thereon as the Board may think fit and shall also send a report of the


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action so taken to the Government.

**94. Government to decide difference between Board and Auditors –**

If there is a difference of opinion between the Board and the Auditor
on any point included in the audit report, and the Board is unable to
accept and implement the recommendations, if any, made by him on such
point, the matter shall forthwith be referred to the Government which
shall pass final orders thereon and the Board shall be bound to give effect
to such orders.

**CHAPTER – IX**
**SUPERVISION AND CONTROL OF STATE GOVERNMENT**

**95. Administration report - (1) As soon as may be after the first day of**
April in every year and not later than such date as may be fixed in this
behalf by the Government, the Board shall submit to the Government a
detailed report of the administration of the Ports during the preceding year
ending on the thirty first day of March, in such form as the State
Government may direct.

(2) The Government shall cause every annual administration report
to be laid for not less than thirty days before the State Legislature as soon
as may be, after such report is received by the Government.

**96. Submission of statement of income and expenditure to State**
**Government - (1) The Board shall annually, or often, or if directed by the**
Government so to do, submit statement of its income and expenditure in
such form and at such time as the Government may direct.

(2) A copy of all such statements shall be open to inspection of the
public at the office of the Board during office hours on payment of such
fee for each inspection as may, from time to time, be fixed by the Board.

**97. Power of Government to supersede Board - (1) If, at any time, the**
Government is of opinion,
(a) that an account of a grave emergency, the Board is unable to
perform the duties imposed on it by or under the provisions of this
Act or of any other law; or

(b) that the Board has persistently made default in the performance
of duties imposed upon it by or under the provisions of this Act or
of any other law and as a result of such default, the financial
position of the Board or the administration of the ports has greatly
deteriorated, the Government may, by notification supersede the
Board for such period, not exceeding six months at a time, as may
be specified in the notification:

Provided that before issuing a notification under this sub-section for
the reasons mentioned in clause (b), the Government shall give a
reasonable opportunity to the Board to show cause why it should not be
superseded and shall consider the explanations and objections, if any, of
the Board.

(2) Upon the publication of notification under sub-section (1)
superseding the Board,

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(a) all the members of the Board shall, as from the date of
supersession, vacate their Offices as such members of the Board.

(b) all the powers and duties which may, by or under the provisions
of this Act, or of any other law, be exercised or performed by or on
behalf of the Board shall, until the Board is reconstituted under
clause (b) or clause (c) of sub-section (3), be exercised and
performed by such person or persons as the Government may
direct;

(c) all assets and liabilities vested in the Board shall, until the Board
is reconstituted under clause (b) or (c) of sub-section (3), vest in
the Government.

(3) On the expiration of the period of supersession specified in the
notification issued under sub-section (1), the State Government may,--
(a) extend the period of supersession for such further term, not
exceeding six months, as it may consider necessary; or

(b) reconstitute the Board by fresh appointment and in such
case, any person who has vacated his office under clause (a) of
sub-section (2) shall not be deemed disqualified for
appointment; or

(c) reconstitute the Board by appointment only for such period as
it may consider necessary and in such a case the persons who
vacated their offices under clause (a) of sub-section (2) shall
not be deemed disqualified for such appointment merely
because they were members of the Board when the Board was
superseded:

Provided that, the Government may, at any time before the expiration
of the period of supersession, whether as originally specified under subsection (1) or as extended under this sub-section, take action under clause
(b) or (c) of this sub-section.

(4) The Government shall cause a notification issued under subsection (1) and a full report of any action taken under this section and the
circumstances leading to such action to be laid before the State
Legislature at the earliest possible opportunity.

**98.** **Power of Government to give directions to Board - (1) Without**
prejudice to the foregoing provisions of this Chapter, the Board shall, in
the discharge of its functions under this Act, be bound by such directions
on question of policy, as the Government may give in writing to it from
time to time:

Provided that the Board shall be given opportunity to express its
views before any direction is given under this sub-section.

(2) The decision of the Government whether a question is one of policy
or not shall be final.
**CHAPTER – X**
**PENALTIES**

**99. Persons employed under this Act to be Public servants for certain**
**purposes - Every person employed by the Board under this Act shall, for**
the purposes of the Prevention of Corruption Act, 1988, be deemed to be a
public servant within the meaning of Section 21 of the Indian Penal Code,
1860 (Act No XLV of 1860) as well as under section 2 of the Prevention of


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Corruption Act, 1988 (Act No 49 of 1988).

**100. Penalty for contravention of sections 28, 29, 30 and 31 –**

Whoever contravenes the provisions of any order issued under
sections 28, 29 or 30 or fails to comply with any condition imposed under
section 31 shall, on conviction, be punishable with fine which shall not be
less than ten thousand rupees but which may extend to five lakh rupees
and where the contravention or failure is a continuing one with further
fine which may extend to five lakh rupees for each day after the first,
during which such contravention or failure continues.

**101. Penalty for setting up wharves, quays, etc., without permission –**

Any person who contravenes the provision of section 36 shall, on
conviction, be punishable with fine which shall not be less than ten
thousand rupees but which may extend to five lakh rupees for the first
contravention and with a further fine which may extend to five lakh
rupees for each day after the first during which the contravention
continues.

**102.** **Penalty for evading rates, etc., - Any person who with the**
intention of evading payment of the rates lawfully due in respect of any
goods or vessels carrying any goods, to the Board,-
(a) understates or incorrectly gives the weight, quantity, value or
description of such goods, or the tonnage of such vessel in any
document presented to any employee of the Board for the purpose
of enabling him to determine such rates: or

(b) removes or attempts to remove or abets the removal of such goods
or such vessel, shall, on conviction, be punishable with fine which
may extend to twice the amount of rates so due subject to a
minimum of five thousand rupees.

**103. Recovery of value of damage to property of Board - If, through**
negligence of any person having the guidance or command of any vessel,
or of any of mariner or persons employed on such vessel, any damage is
caused to any dock, wharf, quay, mooring, stage, jetty, pier or other work
in the possession of the Board or any movable property belonging to the
Board, the amount of such damage shall, on the application of the Board,
be recoverable together with the cost of such recovery by distress and sale
under a Magistrate's warrant, of a sufficient portion of the boats, masts,
spares, ropes, cables, anchors or stores belonging to such vessel:

Provided that no Magistrate shall issue such a warrant until the
master of the vessel has been duly summoned to appear before him and, if
he appears, until he has been heard; and provided also that no such
warrant shall issue if the vessel was at the time under the orders of a duly
authorised employee of the Board and the damage caused was
attributable to the order, act or improper omission of such employee.

**104.** **Other offences - Any person who contravenes any of the provision**
of this Act, or of any rule, regulation or order made thereunder for the
contravention of which no penalty is expressly provided thereunder, shall,
on conviction, be punishable with fine which may extend to one lakh
rupees.


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**105. Cognizance of Offence - No court inferior to that of a Metropolitan**
Magistrate or Judicial Magistrate of the First Class shall try any offence
punishable under this Act or any rule or regulation made thereunder.

**106.** **Offences by Companies - (1) If the person committing an offence**
under this Act is 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 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 such punishment provided in this Act if he proves
that the offence was committed without his knowledge or that he
exercised all due diligence to prevent the commission of such offence.

(2) Not withstanding anything contained in sub-section (1), where an
offence under this Act has been committed by a company and it is proved
that the offence has been committed with the consent or connivance of or
that the commission of the offence is attributable to any negligence on the
part of any director, manager, secretary or other officer of the company
such director, manager, secretary or other officer of the company shall
also be deemed to be guilty of that offence and shall be liable to be
proceeded against and punished, accordingly.

**Explanation:- for the purposes of this section,-**

(a) "company" means a body corporate and includes a firm or other
association of individual; and

(b) "director" in relation to a firm, means a partner in the firm.

**CHAPTER –XI**
**MISCELLANEOUS**

**107. Constitution State Ports Consultative Committee - (1) The State**
Government may, by notification, in the Andhra Pradesh Gazette,
constitute a State Ports Consultative committee consisting of members of
the Board and such other persons, consisting of such number of persons
as it may think fit in each case who are, in the opinion of the State
Government capable of representing the interest of the Chamber of
Commerce, Shipping, Sailing, Vessels, Customs, Railways, Road
transport, Labour, Communications, Fisheries and Industries, expertise in
Harbor Engineering, Port User Association, however that, there shall be at
least one member from each of the aforesaid interests.

(2) The Chairman of the Board shall also be the Chairman of the
committee.

(3) The Chief Executive Officer of the Board as the State Government
may appoint in this behalf shall act as Secretary to the Committee.

(4) The functions of the committee as so constituted shall be as
under:
(a) to advise the Board on all general questions and schemes
pertaining to the ports; Inland Water Transport and Ferries and
Coastal Protection;

(b) to review the administration of ports Inland Water Transport and
Ferries and coastal protection and to suggest ways and means of
improving their work;


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(c) to suggest ways and means to remove any difficulty experienced
by the Board in its administration of ports; Inland Water
Transport and Ferries and Coastal protection;

(d) to make suo-moto recommendations to the Board in regard to any
matter relating to administration of the ports; Inland Water
Transport and Ferries and Coastal protection;

(e) to report to the State Government or as the case may be, the
Board on such matters as may be referred to it either by the State
Government or the Board for its opinion.

(5) The State Government may by general or special order provide
for:
(a) the calling of the meetings of the Committee and procedure of
meetings;
(b) duties of the Secretary of the Committee;
(c) the term of the office of persons appointed to be the members of
the committee to represent any of the aforesaid interests,
travelling allowance and daily allowance to the members of the
committee and rate thereof.

(6) Any person appointed to the Committee to represent any of the
aforesaid interests may resign from the membership by tendering his
resignation in writing to the Chairman and the resignation shall take
effect from the date on which it is received by the chairman who shall give
intimation of the vacancy to the State Government.

**108. Local Advisory Committee - (1) The Government may, from time to**
time, constitute for such ports as it may determine Local Advisory
Committees, consisting of such number of persons as it may think fit in
each case and on such terms and conditions as may be prescribed.

(2)  The Board may, if it thinks fit, consult the Local Advisory
Committee concerned on any business coming before it and shall do so in
respect of such business as the Government may, by general or special
order in this behalf, specify or when required by the regulations so to do.

(3)  The Port Officer, appointed under the Indian Ports Act, 1908 shall
be the ex-officio chairman of a Local Advisory Committee.

(4)  The Local Advisory Committee shall meet at such intervals as may
be prescribed and for the transaction of urgent business on such other
occasions as the Chairman of the Board may require.

(5)  The number of members necessary to constitute a quorum at a
meeting of a Local Advisory Committee shall be, as the Government when
constituting the Committee may specify.

**109.** **Limitation of proceedings in respect of things done under this**
**Act - No suit or other proceeding shall be commenced against the Board**
or any member or employee thereof for anything done or purporting to
have been done, in pursuance of this Act until the expiration of one month
after notice in writing has been given to the Board or to such member or
employee stating the cause of action or after six months after the accrual
of the cause of action

**110.** **Protection of act done in good faith - No suit or other legal**
proceeding shall lie against the Board or any member or employee thereof
in respect of anything which is in good faith done or intended to be done
under this Act or any rule or regulation made thereunder, or for any
damage sustained by any vessel in consequence of any defect in any of the


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mooring, hawsers or other things belonging to, or under the control of the
Board.

**111. Power of State Government to make rules - (1) The Government**
may, by notification published in the Andhra Pradesh Gazette, make rules
for carrying out all or any of the purposes of this Act.

(2) In particular and without prejudice to the generality of the
foregoing power, such rule may provide for all or any of the following
matters, namely:

(a) fees and allowances payable to the members of the Board or any
of its committees for attending meetings of the Board or its
committee or for attending any work of the Board, under section
12:

(b) the terms and conditions of service of the Chief Executive Officer
under sub-section (2) of section 18;

(c) the form and manner of executing contracts under section 25;

(d) the terms and conditions on which the Board with the previous
sanction of the Government, may raise loans under sub-section
(1) of section 56;

(e) the terms and conditions of appointment of persons as members
of State Ports consultative Committee under sub-section (1) of
section 107 and Local Advisory Committee under sub-section (1)
of section 108; and

(f)  any other matter which is to be or may be prescribed by rules.

(3) All rules made under this Act shall be subject to the condition of
previous publication:

Provided that if the Government is satisfied that circumstances exist
which render it necessary to take immediate action, it may dispense with
previous publication of any rule to be made under this section.

(4) Every rule made under this Act shall be laid, as soon as may be,
after it is made, before the Legislature of the State if it is in session, and if
it is not in session, in the session immediately following for a total period
of fourteen days which may be comprised in one session or in two
successive sessions, and if, before the expiration of the session in which it
is so laid or the session immediately following the Legislature agrees in
making any modifications in the rule or in the annulment of the rule, the
rule shall from the date on which the modification or the annulment is
notified, have effect only in such modified form or shall stand annulled 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 the rule.

**112. Power to make regulations - The Board may make regulations**
consistent with this Act and the rules made thereunder, to carry out the
purposes of this Act and without prejudice to the generality of this power,
such regulations may provide for all or any of the following matters,
namely,
(1) the time and place of the meetings of the Board or its
committees, the procedure to be followed for the transaction of business at
such meetings and the number of members necessary to constitute a
quorum at such meetings;


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(2) the appointment, promotion, suspension, removal and dismissal
of its officers and employees;

(3) leave, leave allowances, compassionate allowances and traveling
allowances of the officers and employees and the establishment and
maintenance of a provident fund or any other fund for their welfare;

(4) the terms and conditions of temporary employees, contract
employees under sub-section (2) of Section 19.

(5) the terms and conditions of service of persons who become
employees of the Board under clause (f) of section 21;

(6) any other matter which is incidental to, or necessary for, the
purpose of regulating the appointment and conditions of service of its
employees.

(7) the form of receipt to be given under sub-section (2) of
section 33.

(8) the period within which notice may be given under sub-section (2)
of section 34;

(9) the guidance of persons employed by the Board under this Act;

(10) the safe, efficient and convenient use, management and control
of the docks, wharves, quays, jetties, buildings and other works
constructed or acquired by, or vested in, the Board under this Act;

(11) the reception, porterage, storage and removal of goods brought
within the premises of the Board, for the exclusive conduct of these
operations by the Board or persons employed by the Board, and for
declaring the procedure to be followed for taking charge of goods which
may have been damaged before landing, or may be alleged to have been so
damaged;

(12) keeping clean the port, river or basins or the bank of the river
and the works of the Board, and for preventing filth or rubbish being
thrown therein or thereon;

(13) the mode of payment of rates leviable by the Board under this
Act;

(14) regulating, declaring and defining the docks, wharves, quays,
jetties, stages and piers vested in the Board on which goods shall be
landed from vessels and shipped on Board vessels;

(15) regulating the manner in which and the conditions under which
the loading and unloading of all vessels within the port or port approaches
shall be carried out;

(16) regulating the lighterage of cargo between ships or between ships
and shore or between shore and ships;

(17) the exclusion from the premises of the Board of disorderly or
other undesirable persons and of trespassers;

(18) ensuring the safety of ports and economic zones;

(19) generally for the efficient and proper administration of ports and
economic zones;

(20) the person, if any, authorised to sign and the mode of affixing
the corporate seal and of attestation of documents relating to Board'


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Securities issued or to be issued by the Board;

(21) the manner in which payment of interest in respect of such
Board Securities to be made, recorded and acknowledged;

(22) the circumstances and the manner in which Board Securities
may be renewed;

(23) the circumstances in which such securities must be renewed
before further payment of interest thereon can be claimed;

(24) the form in which such securities delivered for renewal,
conversion, consolidation or sub-division are to be receipted;

(25) the proof which is to be produced by a person applying for
duplicate securities;

(26) the form and manner of publication of the notification mentioned
in sub-section (2) of section 63 and the manner of publication of the list
mentioned in sub-section (3) of that section;

(27) the nature and amount of indemnity to be given by a person
applying for the payment of interest on the Board Securities alleged to
have been wholly or partly lost, stolen or destroyed, or for the issue of
duplicate Board Securities;

(28) the conditions subject to which Board Securities may be
converted, consolidated or sub-divided;

(29) the amounts for which stock certificate may be issued;

(30) generally all matters connected with grant of duplicate, renewal,
conversion, consolidation and sub-division of securities;

(31) the fees to be paid in respect of the issue of duplicate securities
and of the renewal, conversion, consolidation and sub-division of Board
Securities;

(32) the fees to be levied in respect of the issue of stock certificate;

(33) Customer Services;

(34) any other matter, which is to be, or may be, prescribed by
regulations.

**113. Provisions with respect to regulations - (1) No regulation made by**
the Board under this Act shall have effect until the same has been
published by the Board in the Andhra Pradesh Gazette.

(2) Any regulation made under this Act may provide that a breach
thereof shall, on conviction, be punishable with fine which shall not be
less than five thousand rupees but which may extend to two Lakh rupees
and where the breach is a continuing one, with further fine which may
extend to fifty thousand for every day during which such breach
continues.

**114. Power of Government to direct regulations to be made or to**
**make regulations - (1) Whenever the Government considers necessary in**
the public interest so to do, it may, by order in writing thereof, direct the
Board to make any regulations for all or any of the matters specified in
section 112 or to amend any regulations, within such period as the State
Government may specify in this behalf:


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Provided that the Government may extend the period specified by it
by such further period or periods as it may consider necessary.

(2) If the Board, fails or neglects to comply with such directions
within the period allowed under sub-section (1), the Government may
make the regulations or amend the regulations, as the case may be, either
in the form specified in the direction or with such modification thereof as
the Government may think fit:

Provided that before so making or amending the regulations the
Government shall consider any objection or suggestion made by the Board
within the said period.

(3) Where in pursuance of sub-section (2) any regulations have been
made or amended, the regulations so made or amended shall be published
by the Government in the Andhra Pradesh Gazette and shall thereupon
have effect accordingly.

**115. Power of Government to make first regulations - Notwithstanding**
anything contained in this Act, the first regulations under this Act shall be
made by the Government and shall have effect on being notified.

**116. Power of Government to limit regulatory functions of Board –**

Notwithstanding anything contained in this Act, the regulatory functions
and powers of the Board may be curtailed or ceded to a regulatory authority,
through an amendment to this Act and/or through an enactment of law.

**117.** **Posting of certain regulations - The text of the regulations made**
under clauses (10) to (19) of section 112 and the scale of rates framed
together with a statement of conditions framed by the Board under
chapter VI shall be prominently posted by the Board in Telugu and
English on special Boards to be maintained for the purpose at the
wharves, docks, piers and other convenient places on the premises of the
Board.

**118. Saving of right Government and Municipalities to use Wharves**
**etc., for collection of duties and power of customs officers - Nothing in**
this Act shall affect,
(i) the right of the Central Government to collect customs duties or of
any municipality to collect town duties at any dock, berth, wharf,
quay, stage, jetty or pier in the possession of the Board, or

(ii) any power or authority vested in the customs authorities under
any law for the time being in force.

**119. Application of provisions of this Act to aircraft - The provisions**
of this Act shall also apply to all aircrafts making use of any port while on
water in the same manner as they apply in relation to vessels.

**120. Power to remove difficulties -  (1) If any difficulty arises in giving**
effect to the provisions of this Act, the State Government may, by general
or special order do anything not inconsistent with such provisions which
appears to it to be necessary or expedient for the purpose of removing the
difficulty:

Provided that no such order shall be made after the expiry of a
period of two years from the date of commencement of this Act.


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(2) All orders made under sub-section (1) shall, as soon as may be
after they are made, be placed on the Table of the Legislature of the State
and shall be subject to such modification by way of amendments or repeal
as the Legislature of the State may make either in the same session or in
the next session.

**121. Certain provisions not to apply to Developers - Notwithstanding**
anything contained in this Act, a Developer shall have the right to fix
rates, tariffs, charges, imposts and fee for services provided by him.
Further the Developer shall have the right to determine the currency in
which such rates, tariffs, charges, imposts and fee would be denominated.

**122. Repeal savings - (1) The Andhra Pradesh Minor Ports Landing and**
Shipping Fees Act, 1885 is hereby repealed.

(2) On such repeal,
(a) the previous operation of the Act so repealed, or anything duly
done or suffered thereunder;

(b) any right, privilege, obligation or liability acquired, accrued
and incurred under the Act, so repealed;

(c) any penalty, forfeiture, or punishment incurred in respect of
any offence committed under the Act, so repealed; or

(d) any investigation, legal proceedings, or remedy in respect of
any such right, privilege, obligation, liability, penalty,
forfeiture or punishment as aforesaid; and any such
investigation, legal proceeding or remedy may be instituted,
continued or enforced, and any such penalty, forfeiture and
punishment may be imposed, as if this Act had not been
enacted:

Provided that, anything done or any action taken under the repealed
Act, shall in so far as it is not inconsistent with the provisions of this Act,
be deemed to have been done or taken under the corresponding provisions
of this Act and shall continue to be in force accordingly unless and until
superseded by anything done or any action taken under this Act.

**123. Resolution in case of conflict between Customs Act, 1962 and**
**Andhra Pradesh Maritime Board Act, 2018 - In case of conflict between**
the provisions of the Customs Act, 1962 and rules/regulations made
thereunder, and this Act, the former shall prevail.

**CHAPTER – XII**
**SECURITY OF THE PORTS**

**124. Security of Ports -** Every Port to which the Act applies shall have
the International Ship and Port Facility Security (ISPS) Code compliance.

**125. Ports Facility Security Officer and his functions - (1) There shall**
be an officer appointed as the Port Facility Security Officer (PFSO) to each
operating Port in the manner prescribed.

(2) The Port Facility Security Officer shall be responsible for overall
security of the Port and interact for the purpose with all security
organisations such as Coast Guard, Indian Navy, State Marine Police and
other organisations and ensure the enforcement and regulation of various
aspects of the Port Security.


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(3) The Port Facility Security Officer shall get the port security
audited by the Indian Registrar of Shipping duly involving the Naval
authorities of the local areas.

**126.** **Ports Security Advisory Committee - Every operating Port shall**
have a Port Security Advisory Committee constituted as per the ISPS
(International Ship and Port Facility Security) Code:

Provided that there shall be a member from the Port Department in
a Port Security Advisory Committee of the Private Ports.


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