Home India Ministry of Law and Justice THE COASTAL SHIPPING ACT, 2025...
Date: 2025-08-09 Category: Extra Ordinary State: Union Government Country: India

THE COASTAL SHIPPING ACT, 2025

Issued by Ministry of Law and Justice · Legislative Department

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Executive Summary & Key Takeaways

**Executive Summary:** The Coastal Shipping Act, 2025, aims to consolidate and amend laws regarding coastal shipping regulation, promote coasting trade, and encourage domestic participation. It ensures India has a coastal fleet owned and operated by Indian citizens for national security and commercial needs. The Act establishes licensing, defines offenses and penalties, and mandates the creation of a National Coastal and Inland Shipping Strategic Plan within two years of the Act's commencement. **Key Points / Main Content:** * **Chapter I: Preliminary** * The Act is called the Coastal Shipping Act, 2025. * It applies to vessels engaged in coasting trade, excluding Indian vessels, chartered vessels, and coastal waters of India. * Defines key terms, including "coasting trade," "coastal waters," "committee," "Director-General," "Indian vessel," "licence," "licensee," "National Database of Coastal Shipping," "notification," "prescribed," "principal officer," "proper officer," "Strategic Plan," and "vessel." * **Chapter II: Prohibition and Licence for Coasting Trade** * Prohibits vessels other than Indian vessels from engaging in coasting trade without a license from the Director-General. * Specifies factors the Director-General must consider before issuing a license. * Details conditions under which a license can be suspended, revoked, or modified. * Requires all vessels engaged in coasting trade, including Indian vessels, to report voyage and cargo information to the Director-General. * Mandates that vessels produce a license for port clearance. * **Chapter III: National Coastal and Inland Shipping Strategic Plan and National Database of Coastal Shipping** * Requires the Central Government to publish and update a National Coastal and Inland Shipping Strategic Plan every two years. * Specifies the contents of the Strategic Plan, including assessments of coastal shipping routes, operational improvements, and traffic forecasts. * Mandates the creation of a committee to prepare the Strategic Plan. * Directs the Director-General to maintain a National Database of Coastal Shipping accessible to the public. * **Chapter IV: Licensing of Chartered Vessels Other Than for Coasting Trade** * Applies to sea-going vessels chartered by Indian citizens, non-resident Indians, overseas citizens of India, or certain entities. * Requires these vessels to obtain a license from the Director-General. * Details the conditions under which a license can be suspended, revoked, or modified. * Licensees must return the license to the Director-General when it ceases to be valid. * **Chapter V: Offences and Penalties** * Lists penalties for engaging in coasting trade or taking vessels to sea in contravention of the Act. * Specifies penalties for failing to furnish information, furnishing false information, or violating detention orders. * Outlines penalties for violating license conditions or failing to comply with directions from the Director-General or orders from the Central Government. * Provides for the compounding of certain offenses. * **Chapter VI: Miscellaneous** * Allows the Central Government to delegate powers under the Act. * Grants the Director-General the power to give directions and seek information. * Authorizes the Central Government to issue policy directions and grant exemptions. * Protects actions taken in good faith under the Act. * Empowers the Central Government to make rules to carry out the provisions of the Act. * Repeals Part XIV of the Merchant Shipping Act, 1958, while providing for savings clauses. **Impact Analysis** * **Stakeholder: Vessel Owners/Operators (including Indian and non-Indian)** * **Impact:** Must obtain licenses, comply with reporting requirements, and adhere to the Act's regulations regarding coasting trade and chartered vessels. Subject to penalties for non-compliance. * **Action Required:** Apply for necessary licenses, ensure compliance with all regulations, and establish reporting mechanisms. * **Stakeholder: Central Government** * **Impact:** Responsible for creating and updating the National Coastal and Inland Shipping Strategic Plan, delegating authority, issuing policy directions, and making rules to implement the Act. * **Action Required:** Establish the committee for preparing the Strategic Plan, publish the Strategic Plan, and draft necessary rules and notifications. * **Stakeholder: Director-General of Shipping** * **Impact:** Responsible for granting licenses, maintaining the National Database of Coastal Shipping, enforcing the Act, and issuing directions to vessels. * **Action Required:** Develop procedures for license applications, establish the National Database, and enforce compliance with the Act's provisions. * **Stakeholder: Ports and Port Officers** * **Impact:** Responsible for ensuring that vessels have the required licenses before granting port clearance and detaining vessels that violate the Act. * **Action Required:** Verify vessel licenses and enforce detention orders as necessary. * **Stakeholder: Indian Citizens, Non-Resident Indians, Overseas Citizens of India, Companies, Cooperative Societies, and Limited Liability Partnerships** * **Impact:** Those chartering vessels are subject to the licensing requirements outlined in Chapter IV of the Act. * **Action Required:** Comply with licensing requirements when chartering vessels.

Key Entities Referenced

Coastal Shipping Act, 2025: The main act being enacted, relating to the regulation of coastal shipping, promotion of coasting trade, and encouragement of domestic participation in India. Parliament of India: The legislative body that passed the Coastal Shipping Act, 2025. Ministry of Law and Justice: The ministry responsible for publishing the Act in the Gazette of India. Indian vessel: A vessel registered in India under the Merchant Shipping Act, 1958, and generally permitted to engage in coasting trade. Merchant Shipping Act, 1958: An existing act of India, some definitions from which are used in the Coastal Shipping Act, 2025. Part XIV of this act is repealed. Inland Vessels Act, 2021: An act related to inland vessels, where vessels registered under it may be permitted to engage in coasting trade under specific conditions. National Coastal and Inland Shipping Strategic Plan: A plan to be published by the Central Government for the purposes of the Coastal Shipping Act, 2025, to be updated every two years. National Database of Coastal Shipping: A database maintained by the Director-General containing information on coasting trade in India.
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jftLVªh lañ Mhñ ,yñ—¼,u½04@0007@2003—25 REGISTERED NO. DL—(N)04/0007/2003—25 सी.जी.-डी.xएxलx.G-अI.D-0H90x8x2x025-265334 CG-DL-E-09082025-265334 xxxGIDExxx vlk/kkj.k EXTRAORDINARY Hkkx II — [k.M 1 PART II — Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ 25] ubZ fnYyh] 'kfuokj] vxLr 9] 2025@Jko.k 18] 1947 ¼'kd½ No. 25] NEW DELHI, SATURDAY, AUGUST 9, 2025/Shravana 18, 1947 (Saka) bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA Separate paging is given to this Part in order that it may be filed as a separate compilation. MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 9th August, 2025/Shravana 18, 1947 (Saka) The following Act of Parliament received the assent oBfi ltlhNe oP. r1e7s7id-Fen ot fo 2n0 2th4e 9th August, 2025 and is hereby published for general information:— TTHHEE CCOOAASSTTAALL SSHHIIPPPPIINNGG ABCILTL, 2, 0220525 (AS PASSED BYN ToH. E2 0H oOfU S2E0S2 O5F PARLIAMENT) A [9th August, 2025.] BILL An Act to consolidate and amend the law relating to regulation of coastal to csohnispopliidnagt,e parondmoamtee cnodasthtiengla twradreel aatnindg entocoruegrauglaet idoonmoefsctioca pstaarltischiippaptiinogn, promote coasting trade and encourage domestic participation therein, to therein, to ensure that India is equipped with a coastal fleet, owned and ensure that India is equipped with a coastal fleet, owned and operated by the operated by the citizens of India for its national security and commercial citizens of India for its national security and commercial needs, and for nemeadtste, rasn cdo nfonerc mteda tttheerrse cwoitnhn oerc itnecdid tehnetarel wthietrhe toor. incidental thereto. BEit enacted byParliament in the Seventy-sixthYear of the Republic of India asfollows:–– CHAPTER I PRELIMINARY 1. (1)ThisActmaybe called the Coastal ShippingAct, 2025. Short title, application and (2) Save as otherwiseprovided, the provisions ofthis Act shallapply to–– commencement.2 THE GAZETTE OF IND2IA EXTRAORDINARY [Part II— (a)every vessel, other thananIndian vessel, engaged in coasting trade, irrespective of the place of residence or domicile of the owner; (b)every chartered vessel referred to in Chapter IV; and (c)coastal waters of India. (3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint, and different dates may be appointed for different provisions of this Act. 2.(1) In this Act, unless the context otherwise requires,–– Definitions. (a)“coasting trade” means carriage of goods or passengers by sea from anyport or placeinIndiatoanyother port or placeinIndia,or performingany service within coastal waters butshall not include fishingof any kind. Explanation.—For the purposes of this clause, “service” includes exploration, exploitation, research, and any other commercial activity in the coastal waters other than carriage of goods or passengers by sea; (b) “coastal waters” means any part of the territorial waters of India, along with any part of the adjoining maritime zones of India within the meaning of the Territorial Waters, Continental Shelf, Exclusive Economic Zone and Other Maritime Zones Act, 1976, for undertaking coasting trade: 80 of 1976. Provided that the Central Government may, by notification, specify any port or place including inland waters of India, as part of the coastal waters for the purposes of this Act; (c)“committee” means the committee constituted under sub-section (3) of section 8 for preparing the National Coastal and Inland Shipping Strategic Plan; (d) “Director-General” means the Director-General appointed under the 44 of 1958. Merchant Shipping Act, 1958; (e) “Indian vessel” means any vessel registered in India under the Merchant ShippingAct, 1958; 44 of 1958. (f) “licence” means the licence issued by the Director-General under section 4 or section 11; (g) “licensee” includes the owner or master or charterer or operator or any person operating the vessel under a licence granted to such vessel by the Director-General; (h) “National Database of Coastal Shipping” means the database maintained by theDirector-General undersection9; (i)“notification” means a notification published in the Gazette of India or the Official Gazette of a State, as the case may be, and the expression “notify” with its grammatical variation and cognate expressions, shall be construed accordingly; (j) “prescribed” means prescribed by rules made by the Central Government under this Act; (k) “principal officer” means the principal officer of the Mercantile Marine Department referredto in the Merchant ShippingAct, 1958; 44 of 1958. (l)“proper officer” shall have the meaning assigned to it in clause (34) ofsection 2 of theCustomsAct, 1962; 52 of 1962. (m) “Strategic Plan” means the National Coastal and Inland Shipping Strategic Plan publishedunder sub-section (1)of section8; (n) “vessel” includes every description of water craft, used or capable of being used in the marine environment, whether self-propelled or not, such as ship, boat, sailing vessel, fishing vessel, submersible, semi-submersible, hydrofoils, non-displacement crafts, amphibious crafts, wing-in-ground crafts, pleasure crafts, barges, lighters, mobile offshore drilling units and mobile offshore units.Sec. 1] THE GAZETTE OF IND3IA EXTRAORDINARY 3 (2)Words and expressions used and not defined in this Act but defined in the 44 of 1958. Merchant Shipping Act, 1958, shall have the meanings respectively assigned to them in that Act. CHAPTER II PROHIBITIONANDLICENCE FOR COASTING TRADE 3.(1) No vessel, other than an Indian vessel, shall engage in coasting trade in Prohibition on the coastal waters, except under a licence granted by the Director-General under coasting trade. section 4: Provided that the Director-General may, by order in writing, permit a vessel 24 of 2021. registered under the Inland Vessels Act, 2021, to engage in coasting trade to such extent and subject to such conditions, as may be specified in that order. (2)Whoever engages anyperson to undertakecoasting trade shall ensure that such person doesnotviolatethe provisions of sub-section(1). 4. (1) Every application for the grant of a licence for coasting trade shall be Licence for made to the Director-General in such form, manner and on payment of such fee, as coasting trade. may be prescribed. (2)Before issuing alicenceunder thissection,the Director-General shall take into consideration the following factors, namely:— (a) whether the applicant has previously held a licence that was cancelled; (b) whether the applicant has engaged in violation of any of the provisions of this Act prior to or during the period of pendency of his application; (c)citizenship of the crew; (d)build requirements of the vessel; (e)availability of vessels on the route; (f)licences granted to vessels for the same route; (g)safety, national and maritime security concerns; (h)equipment on board the vessel including communication equipment; (i)the Strategic Plan under section 8; (j)cost efficiency of transport; (k)validity of the certificates of vessel and crew; (l)validity of the certificate of insurance of the vessel; and (m) any other requirements as the Director-General may consider necessary in furtherance of the objectives of this Act. (3)A licence granted under this section shall be in such form, for such period and shall be subject to such conditions, as may beprescribed: Provided that the Director-General may, for reasons to be recorded in writing, specify such other conditions as may be necessary for grant of the licence. (4) The class or category of licence to be granted under this section shall be such as may be prescribed.4 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— 4 Suspension, 5.(1) The Director-General may, if the circumstances of the case so require to revocation or meet the objectives of this Act, by order in writing and for reasons to be recorded modification of therein, suspend, revoke or modify a licence granted undersection 4, if the licensee, licence. or any person engaged by him–– (a)violates any condition of the licence; or (b) fails to comply with any requirement under any law for the time being in force applicable to the vessel; or (c)fails to comply with a direction issued under section 35; or (d)fails to pay any fine or serve any sentence imposed under this Act: Provided that the suspension, revocation or modification of licence under this clause shall not absolve the licensee from his obligation for payment of any fine or penalty, or undergoing any punishment, imposed on him under this Act. (2) No licence granted under section 4 shall be suspended, revoked or modified under sub-section (1), unless the licensee has been given a reasonable opportunity of being heard. (3)A licensee, who intends to modify the particulars of the licence granted to him under section 4, may make an application to theDirector-General in that behalf in such form and manner, as may be prescribed. (4)Where the licence granted under section 4 ceases to be valid due to expiry of its period or revocation, the licensee shall–– (a)return it or cause it to be returned to the Director-General;and (b)cease to engage in coasting trade, within such period as may be specified by the Director-General. Reporting 6. Every vessel, including Indian vessels engaged in coasting trade, shall requirements. report to the Director-General the following information in such form and manner as may be prescribed, namely:–– (a)the port or ports which it will visit in the course of its voyage; (b) goods or passengers carried by such vessel and the ports or places where such goods or passengers will be dropped off; (c)any offshore area in which it may operate or navigate for the purposes of its voyage; and (d)such other information as the Director-General may deem fit. Licence to be 7.(1)No proper officer shall grant clearance to a vessel, other than an Indian produced for vessel, engaging in coasting trade to enter or depart from a port, unless the licensee port clearance. or agent of such vessel produces the licence granted under section 4. (2) Where any vessel fails to comply with the requirements of this Act, the Director-General or the principal officer or an officer designated by the Central Government in this behalf may, after giving an opportunity of being heard to the licensee or agent of such vessel, by order in writing and for reasons to be recorded therein, detain that vessel until an order is issued for the release of such vessel. CHAPTER III NATIONALCOASTALANDINLANDSHIPPINGSTRATEGICPLANANDNATIONAL DATABASEOFCOASTALSHIPPING National Coastal 8. (1) The Central Government shall, within a period of two years from the and Inland date of commencement of this Act, by notification, publish a National Coastal and Shipping Strategic Plan. Inland Shipping Strategic Plan for the purposes of this Act, which shall be updated every two years by a like notification. (2)The Strategic Plan shall include the following, namely:––Sec. 1] THE GAZETTE OF IND5IA EXTRAORDINARY 5 (a) assessment of the condition of coastal shipping routes in India including routes occupied by inland waterways; (b) identification of the operational improvements required in coastal shipping, including those by way of integration with inland waterway routes, in order to make coastal maritime transport a cost-efficient mode of transportation for goods and passengers; (c) long term forecasts of traffic on coastal shipping and inland waterways network; (d) identification of best practices for improving the performance of coastal shipping including the synergy presented by inland waterway routes and other modes of transportation; (e) identification of new routes for coastal shipping and integration thereof with inland waterways andexisting coastal shipping routes; (f)measures for the promotion of building, registration and participation of Indian vessels in coastal shipping in India; (g)recommendations regarding the conditions subject to which vessels registered under the Inland Vessels Act, 2021, may engage in coasting trade 24 of 2021. of India; and (h)such other matters as may be prescribed. (3) The Central Government shall constitute a committee consisting of the followingmembersfor preparing the Strategic Plan, namely:— (a)Director-General of Shipping—Chairperson, exofficio; (b)Chairman, Inland Waterways Authority of Indiaconstituted under section 3 82 of 1985. of the Inland Waterways Authority of India Act, 1985—Member, exofficio; (c) one representative of each Board ofMajor Port Authority constituted under 1 of 2021. sub-section (1) of section 3 of the Major Port Authority Act, 2021—Members; (d)one representative of the National Security Council Secretariat—Member; (e) one representative of each State Maritime Board or any other body responsible for the administration of ports other than major ports, in a State or Union territory—Members; (f)two representatives to represent shipowners—Members; (g)two representatives of seafarers—Members; and (h) such other persons having expertise in the field of coastal trade, mercantile and marine trade or maritime sector, as the Central Government may deem necessary—Members. (4) The committee shall meet at such time and place, and shall observe such procedure for the transaction of business at its meetings including the quorum at such meetings, as may be prescribed. (5)The committee shall prepare a draft of the Strategic Plan for consideration and approval of the Central Government and the Central Government shall, after considering the draft Strategic Plan, approve the Plan with or without modifications. (6) The Central Government shall make available the Strategic Plan on its website for public access. 9. (1) The Director-General shall maintain a web portal of a database to be National called the National Database of Coastal Shipping in such form and manner as may Database of Coastal be prescribed. Shipping.6 6 THE GAZETTE OF INDIA EXTRAORDINARY [Part II— (2) The National Database of Coastal Shipping shall contain the following information on coasting trade in India, namely:–– (a)applications received for licence under section 4; (b)licences granted under section 4; (c)terms and conditions of the licences so granted; (d)routes, voyages and services in the coasting trade of India; (e)requirement of applicants for grant of licences under section 4; (f)expired and revoked licences under section 5; (g)information reported to the Director-General under section 6; (h)such other information as the Director-General may deem fit. (3) The Director-General shall make available the National Database of Coastal Shipping in electronic form on aweb portal for access to the public and it shall be updated every month. CHAPTER IV LICENCINGOFCHARTEREDVESSELS OTHER THAN FOR COASTING TRADE Application of 10. ThisChaptershall apply toallsea goingvesselscharteredbyacitizenof Chapter. India or a non-resident Indian or an overseas citizen of India, or a company or a co-operative society or a limited liability partnership or any other entity as the Central Government may,bynotification,specifyinthisbehalf,proceedingtosea from a port orplace–– (a)in India, to a port or place outside India; or (b)outside India, to a port or place in India or outside India. Requirement of 11.(1) No vessel, other than an Indian vessel, chartered by a citizen of India licence by or a non-resident Indian or an overseas citizen of India or a company or a chartered vessels. co-operative society or a limited liability partnership or any other entity as the Central Government may, by notificationspecify in this behalf, shall be taken to sea from a port or place within India or outside India, except under a licence granted by the Director-General under this section: Provided that no vessel which is chartered by an overseas citizen of India shall be required to obtain licence, if such vessel is chartered exclusively for operation outside India. (2)Alicencegranted under this section may be–– (a)a general licence;or (b)a licence fora specified period or voyage. (3)Everyapplication for the grant of a licence under this section shall bemade to the Director-General in such form, manner and on payment of such fee, as may be prescribed. (4)A licence granted under this section shall be in such form, for such period and shall be subject to such conditions, as may be prescribed: Provided that the Director-General may, for reasons to be recorded in writing, specify such other conditions as may be necessary, for grant of the licence under this section. Suspension, 12.(1) The Director-General may, at any time, if the circumstances of the case revocation or so require, by order in writing and for reasons to be recorded therein, suspend, modification of revoke or modify a licence granted under section 11: licence granted to chartered vessels.Sec. 1] THE GAZETTE OF IND7IA EXTRAORDINARY 7 Provided that no such licence shall be suspended, revoked or modified, unless the licensee has been given a reasonable opportunity of being heard. (2)A licensee, who intends to modify the particulars of the licence granted to him under section 11, may make an application to the Director-General in that behalf in such form and manner, as may be prescribed. 13.Where a licence granted under section 11 ceases to be valid due to expiry of Licence granted to its period or revocation, the licensee shall return it or cause it to be returned to the chartered vessel to be returned when Director-General, within such period as may be specified by the Director-General. ceases to be valid. 14. No proper officer shall grant port clearance to any vessel requiring a No port licence under this Chapter, unless the owner, master or agent of the vessel produces clearance without a valid licence in respect of such vessel. production of licence. CHAPTER V OFFENCESANDPENALTIES 15. Whoever engages in coasting trade in contravention of the provisions of Punishment for section 3, shall be punishable with imprisonment for a term which may extend to participating in coasting trade in six months, or with fine which may extend to fifteen lakh rupees, or four times the contravention of value of all fees or commission or payments received by the owner or charterer of section 3. the vessel for the voyage, whichever is greater, or with both, and the vessel shall also be liable for detention under section 29. 16. Whoever engages in coasting trade in contravention of the provisions of Punishment for clause (b) ofsub-section (4) of section 5, shall be punishable with imprisonment for a participating in coasting trade term which may extend to six months, or with fine which may extend to ten lakh after licence rupees, or two times the value of all fees or commission or payments received by the ceases to be licensee of the vessel for all voyages conducted in contravention, whichever is greater, valid. or with both, and the vessel shall also be liable for detention under section 29. 17. Whoever takes a vessel to sea in contravention of the provisions of Punishment for section 11,shall be punishable with imprisonment for a term which may extend to taking vessel to sea in six months, or with fine which may extend to fifteen lakh rupees, or four times the contravention of value of all fees or commission or payments received by the owner or charterer of section 11. the vessel for the voyage, whichever is greater, or with both, and the vessel shall also be liable for detention under section 29. 18. If any licensee or agent on whom a notice has been served under Punishment for sub-section (2) of section 35–– failure to furnish information or furnishing false (a)fails to furnish the information required within the time specified; or information after notice. (b)furnishes any information or makes any statement which the licensee oragent knows to be false on any material particular, he shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to fifty thousand rupees, or with both, and the vessel shall also be liable for detention under section 29. 19.If any vessel in respect of which a notice or order for detention has been Punishment for served under this Act, proceeds to sea before it is released, the licensee of the vessel violation of order of in respect of which the contravention has taken place shall be punishable with detention. imprisonment for a term which may extend to six months, or with fine which may extend to fifteen lakh rupees, or with both, and the vessel shall also be liable for detention under section 29.8 THE GAZETTE OF IND8IA EXTRAORDINARY [Part II— Punishment for 20. Where any vessel, after detention or order for such detention proceeds to illegally sea with any person authorised to detain any vessel on board before it is released, detaining person the licensee or agent of such vessel shall be punishable with imprisonment for a authorised to detain vessel. term which may extend to six months or with fine upto one lakh rupees and all expenses of, and incidental to, such person being so taken to sea, or with both, and the vessel shall also be liable for detention under section 29. Penalty for 21. If any person who is required to report any information to the reporting false or Director-General under section 6 fails to do so, or otherwise intentionally reports misleading information. misleading or false information, such person shall be liable for penalty which may extend to one lakh rupees. Penalty for 22. Whoever fails to comply with the conditions of licence granted under violation of section 4 or section 11, shall be liable for penalty which may extend to ten lakh conditions of licence. rupees, or two times the value of all fees or commission or payments received by the licensee of the vessel for all voyages conducted in contravention, whichever is greater, or with both, and the vessel shall also be liable for detention under section 29. Penalty for non- 23. Any licensee or agent, who fails to comply with any direction of the compliance of Director-General under sub-section (1) of section 35, shall be liable for penalty direction of Director- which may extend to five lakh rupees, or two times the value of all fees or General. commission or payments received by such licensee or agent for all voyages conducted in contravention of such direction, whichever is greater, and the vessel shall also be liable for detention under section 29. Penalty for non- 24. Any licensee or agent, who fails to comply with an order of the Central compliance with GovernmentunderthisAct,shallbeliableforpenaltyofnotlessthanfifteenlakhrupees, order of Central and the vessel may also be liable for detention under section 29. Government. General 25. Whoever contravenes any provision of this Act, or fails to comply with provision for any provision thereof, or of any rule, direction, order or notification made contravention or thereunder, for which no punishment or penalty is specially provided in this Act, non-compliance. shall be liable for penalty which may extend to one lakh rupees, and if the breach is a continuing one, with further penalty which may extend to five thousand rupees for every day after the first day during which the breach continues. Compounding of 26. (1) Notwithstanding anything contained in the Bharatiya Nagarik certain offences. Suraksha Sanhita, 2023, any offence punishable under sections 15 to 20 of this 46 of 2023. Act may, before or after the institution of prosecution, be compounded by an officer designated by the Central Government by notification in this behalf, on payment for credit to the Central Government of such sum and in such manner as may be prescribed: Provided that such sum shall not, in any case, exceed the maximum amount ofthe fine which maybe imposed under this Act fortheoffences so compounded: Provided further that in case of subsequent offence, the same shall not be compounded. (2) The officer referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control andsupervision of theCentral Government. (3)Everyapplicationfor thecompoundingofanoffenceshall bemadeinsuch form and manner asmay beprescribed. (4)Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted against the offender in relation to whom the offence is so compounded.Sec. 1] THE GAZETTE OF IND9IA EXTRAORDINARY 9 (5)Where the compounding of any offence is made after the institution of any prosecution, such composition shall be brought by the officer referred to in sub-section (1), in writing, to the notice of the court in which the prosecution is pending and on such notice for compounding the offence being given, the person against whom the offence is so compounded shall be discharged. (6) Any person who fails to comply with an order of compounding made by the officer referred to in sub-section (1), shall be liable to pay a sum equivalent to twenty per cent. of the maximum fine provided for the offence, in addition to fine provided for the said offence. (7) No offence punishable under this Act shall be compounded except in accordance with the provisions ofthis section. 27. Notwithstanding anything contained in section 23 of the BharatiyaNagarik Special 46 of 2023. Suraksha Sanhita, 2023, it shall be lawful for a Judicial Magistrate of the first class provision regarding to pass any sentence provided under this Act on any person convicted of an offence punishment. under this Act. 28. (1) Where an offence under this Act has been committed by a company, Offences by every person who, at the time the offence was committed,was in-charge of, and was companies. responsible to,the company for the conduct of the businessof the company,as well as the company, shall be deemedto be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if such person proves that the offence was committed without his knowledge or that such person exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that such offence was committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or partner, or other officer of the company, such director, manager, secretary or partner, or other officer shall be deemed to be guilty of that offence and shallalsobe liable to be proceeded against and punished accordingly. Explanation.—For the purposes of this section,— (a)“company”includesaco-operativesociety,afirmorlimitedliability partnership firm orotherassociation of individuals;and (b)“director”,in relation to a firm, means a partner in the firm. 29.Where a vessel is authorised or ordered to be detained underthisAct, any Power to enforce commissioned officer of the Indian Navy or Indian Coast Guard, or Police, or any detention of vessel. port officer, pilot, harbour master or conservator of port, or the Commissioner of Customs, or any other person authorised under this Act, may detain the vessel under instructions of the principal officer. 30.(1) The principal officer shall be the adjudicating officerfor the purposes Adjudicating of imposing penalty under sections 21to 25. officer for imposition of (2) Any person aggrieved by the order of the principal officer imposing the penalty, appeal and procedure penalty under sub-section (1) may, within a period of thirty days from the date of therefor. receipt of such order, prefer an appeal before the Director-General in such form and manner as may be prescribed. (3)The Director-General shall dispose of an appeal referred to in sub-section (2) within a period of thirty days from the date of receipt of such appeal. (4) No order shall be passed under this section unless the parties have been given a reasonable opportunity of being heard.10 THE GAZETTE OF IN1D0IA EXTRAORDINARY [Part II— (5)Any penalty imposed under sections 21 to 25 may be compounded for the first contravention by an officer designated by the Central Government by notification in this behalf. (6) Notwithstanding anything contained in this Act, if a penalty imposed by the principal officer or the Director-General under this Chapter is not deposited, the amount shall be recovered as an arrear of land revenue. Notice in respect 31.If any vessel, other than an Indian vessel, is detained under this Act, or if of foreign any proceeding is taken under this Act against the licensee or agent of such vessel, vessel. notice shall forthwith be served on the consular office of the country in which such vessel is registered, or nearest to the port where the vessel is for the time being, in such form and manner as may be prescribed, and such notice shall specify the grounds on which the vessel has been detained or the proceedings have been taken. Place of trial and 32. Any person who commits an offence under this Act or any rules made jurisdiction of thereunder, may be tried for such offence in any place in which such person may court. be found, or in any court which the Central Government may, by notification, direct in this behalf, or in any court in which such person might be tried under any other law for time being in force in India. Service of 33.Where,for thepurposesof thisAct, any document istobeservedon any documents. person, that document maybe served,— (a)in any case by delivering a copy thereof personally to the person to be served, or by leaving the same at his last place of residence, or by post or by such electronic means as the Central Government may, by notification, specify in this behalf; (b)on the master of a vessel where there is master, or on the person being or appearing to be in command or charge of the vessel, by leaving the same for him on board that vessel; and (c)on the owner of the vessel where there is no master and the vessel is in India, or if such owner is not in India, on the agent of the owner residing in India, or, where no such agent is known or is found, by affixing at a suitable place on the bridge of the vessel. CHAPTER VI MISCELLANEOUS Power to 34. (1) The Central Government may, by general or special order, direct that delegate. any power, authority or jurisdiction exercisable by it under or in relation to any of the provisions of this Act, may be exercisable also by the Director-General or such other officer and subject to such conditions as may be specified in the order. (2) The Director-General may, with the previous approval of the Central Government, by general or special order, direct that any power or authority conferred upon or delegated to, and any duty imposed upon him by or under this Act, may be exercised or discharged also by such officer or authority and subject to such conditions as may be specified in the order. Power of 35.(1) The Director-General may,–– Director- (a)inthepublic interest; or General to give directions (b)in the interest of Indian shipping; or and seek information. (c)in the interest of national defence and maritime security; or (d)for ensuring safety of life at sea and the safety of environment, by order, direct any vessel for which licence has been granted under this Act, in respect of the following, namely:— (i)the ports or places, whether withinor outside India, to which, and the routes by which, the vessel shall proceed for any particular purpose; (ii)the diversion of a vessel from one route to another for any particular purpose;Sec. 1] THE GAZETTE OF IN1D1IA EXTRAORDINARY 11 (iii) the classes of passengers or cargo which may be carried in the vessel; (iv)the order of priority in which passengers or cargo may be taken on or put off the vessel at any port or place, whether withinor outside India; (v) to ban any vessel from entering any port, anchorage or offshore facility in India; (vi)any other matter whichthe Director-Generalmay deem necessary. (2)The Director-General may, by notice, require the licensee or agent of any vessel in respect of which— (a)licence is granted underthis Act; or (b)any direction is givenrelating to diversion of a vessel from one route to another for any particular purpose, to furnish such information as may be considered necessary within such period as may be specified in the said notice, which may include— (i)theclassesof passengersandcargowhichtheshipisabout to carry, oris capable of carrying, or hascarried during any specified period; or (ii) the rates of passenger fares and freight charges applicable to the vessel;or (iii)any other matter as may be prescribed. 36. (1) Notwithstanding anything contained in this Act, every person shall, in Power of Central Government to the discharge of his functions and duties under this Act, be bound by such issue directions. directions on questions of policy as the Central Government may give to it in writing from time to time. (2) The decision of the Central Government as to whether a question is one of policy or not,shallbe final. 37. Notwithstanding anything contained in this Act or any law for the time Power to being in force, the Central Government or, as the case may be, the exempt. Director-General with the prior permission of the Central Government, if is of opinion that it is necessary or expedient in the public interest so to do, may, by order in writing and subject to such conditions and for such period as it may think fit, exempt from the provisions of this Act,–– (a)any vessel or class of vessels engaged in coasting trade; or (b) any class of vessels chartered by a citizen of India or non-resident Indian or an overseas citizen of India, or a company or a co-operative society or a limited liability partnership or such entities as may be specified by the Central Government under sub-section (1) of section 11. 38.No suit, prosecution or other legal proceeding shall lie against any person Protection of action taken in good faith. for anything which is in good faith done or intended to be done under this Act. 39. (1) The Central Government may, subject to the condition of previous Power of publication, make rules for carrying out the provisions of this Act. Central Government to (2) In particular, and without prejudice to the generality of the foregoing make rules. power, such rules may provide for all or any of the following matters, namely:— (a) the form and manner of application for grant of licence and the fee to be paid for the same under sub-section (1) of section 4; (b)the form, period and the conditions subject towhich licence shallbe granted under sub-section (3)of section 4; (c)the class or category of licence to begranted under sub-section (4) of section 4;12 THE GAZETTE OF IN1D2IA EXTRAORDINARY [Part II— (d) the form and manner of making application for modification of particulars of a licence under sub-section (3)of section 5; (e)theformandmannerofreportingtherequirementstotheDirector-General undersection6; (f) such other matters to be included in the Strategic Plan under clause (h)of sub-section (2)ofsection8; (g) the time, place and the procedure to be observed by the committee for the transaction of business at its meetings and the quorum at such meetings under sub-section (4) of section 8; (h)theformandmannerofmaintainingtheNationalDatabaseofCoastal Shipping by the Director-Generalundersub-section (1) of section 9; (i)theformandmannerofapplicationforgrantoflicenceandthe fee to bepaidundersub-section(3)ofsection11; (j) the form, period and the conditions subject to which licence shall be grantedundersub-section(4)ofsection11; (k) the form and manner of making application for modification of particulars of alicenceundersub-section(2)ofsection12; (l) the sum to be paid for credit to the Central Government for compounding an offence and the manner of making the payment under sub-section(1)ofsection 26; (m)the form and manner ofmakinganapplication for the compounding ofan offence undersub-section (3)of section 26; (n) the form and manner of preferring appeal to the Director-General undersub-section (2) of section 30; (o)the form and manner of issuance ofnotice under section 31; (p)any other matters in respect of which the Director-General may, by notice,requirethelicensee oragentofanyvesseltofurnishinformation under sub-section (2)of section 35; (q) any other matter which is required to be or may be prescribed for carrying out the provisions of this Act. Laying of rules 40.EveryrulemadeandeverynotificationissuedunderthisActshallbelaid, and notifications as soon as may be after it is made or issued, before each House of Parliament, while before it is in session, for a total period of thirty days which may be comprised in one Parliament. session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification. Power to remove 41.(1) If any difficulty arises in giving effect to the provisions of this Act, the difficulties. Central Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as may be necessary or expedient for removing the difficulty: Provided that no such order shall be made under this section after the expiry of three years from the date of commencement of this Act. (2)Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament.Sec. 1] THE GAZETTE OF IND1I3A EXTRAORDINARY 13 44 of 1958. 42. (1) Part XIV of the Merchant Shipping Act, 1958 (herein referred to as Repeal and Part XIV of the said Act),except section 411A thereof,is hereby repealed. savings. (2)Notwithstanding such repeal,–– (a) any rule, regulation, bye-law, order, notification or exemption made, issued or granted under Part XIV of the said Act shall, until revoked, have effect as if it had been made, issued or granted under the provisions of this Act; (b) any licence granted or issued under Part XIV of the said Act shall, until it is revoked or expires, have effect as if it had been issued or granted under the provisions of this Act; (c) any office established or created, officer or person appointed and any body elected or constituted under Part XIV of the said Act shall continue and shall be deemed to have been established, created, appointed, elected, or constituted, as the case may be, under this Act; (d) any document referring to Part XIV of the said Act shall be construed asreferring to this Act; (e) any fine levied under Part XIV of the said Act may be recovered as ifithad been levied under this Act; (f) any offence committed under Part XIV of the said Act may be prosecuted and punished as if it had been committed under this Act; (g) any proceeding pending before any court under Part XIV of the said Act may be tried or disposed of under the corresponding provisions of this Act; (h) any inspection, investigation or inquiry ordered to be done under the provisions of Part XIV of the said Act shall continue to be proceeded with as if such inspection, investigation or inquiry is ordered to be done under the corresponding provisions ofthis Act. (3) Without prejudice to the provisions of sub-section (2), the provisions of 10 of 1897. section 6of theGeneralClausesAct,1897shall applywith regard totheeffectof repeal. ——— The above Bill has been passed by the Houses of ParliamenDt.R . RAJIV MANI, Secretary to the Govt. of India. Dated the Chairman. ——— I assent to this Bill. Dated the President. UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054. MGIPMRND—151GI(S4)—9-8-2025.

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