Vidhi Codex

THE COMPENSATORY AFFORESTATION FUND ACT, 2016

The Compensatory Afforestation Act, 2016

Environmental201633 sections

The Compensatory Afforestation Fund Act, 2016 establishes a structured legal mechanism to manage funds collected when forest lands are diverted for non-forestry uses like infrastructure, mining, or industrial projects. It applies nationwide to public and private user agencies that clear forest land, requiring them to pay for compensatory afforestation, environmental services, and net present value losses. The law creates dedicated National and State Compensatory Afforestation Funds, alongside management authorities to oversee disbursements. This legislation matters because it ensures transparent financial accounting and systematic re-investment of funds into tree plantation, wildlife conservation, and forest restoration across India.

Start reading →Read full ActSections
  1. 1. Short title, extent and commencement
  2. 2. Definitions
  3. 3. Establishment of National Fund
  4. 4. Establishment of State fund
  5. 5. Disbursement and utilisation of National Fund.
  6. 6. Disbursement and utilisation of State Fund.
  7. 7. Accounting procedure.
  8. 8. National Authority
  9. 9. Executive committee and monitoring group of National Authority
  10. 10. Constitution of State Authority
  11. 11. Steering committee and executive committee of State Authority
  12. 12. Term of office and conditions of service of members.
  13. 13. Disqualifications.
  14. 14. Powers and functions of National Authority.
  15. 15. Powers and functions of executive committee of National Authority.
  16. 16. Functions of monitoring group.
  17. 17. Powers and functions of State Authority.
  18. 18. Powers and functions of steering committee of State Authority.
  19. 19. Functions and powers of executive committee of State Authority.
  20. 20. Budget of National Authority.
  21. 21. Investment of funds by National Authority
  22. 22. Accounts and audit of National Authority
  23. 23. Annual report of National Authority
  24. 24. Annual report and audit report of National Authority to be laid before Parliament
  25. 25. Budget of State Authority
  26. 26. Investment of funds by State Authority
  27. 27. Accounts and audit of State Authority
  28. 28. Annual report of State Authority
  29. 29. Annual report and audit report of State Authority to be laid before State Legislature
  30. 30. Power to make rules
  31. 31. Transfer of assets, liabilities, etc.
  32. 32. Validation
  33. 33. Power of Central Government to issue directions

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