1. Short title, extent and commencement.— (1) This Act may be called the Compensatory
Afforestation Fund Act, 2016.
(2) It extends to the whole of India except the State of Jammu and Kashmir*.
(3) Save as otherwise provided in this Act, it shall come into force on such date1
as the Central
Government may, by notification in the Official Gazette, appoint.
2. Definitions.—In this Act, unless the context otherwise requires,—
(a) “ad hoc Authority” means the ad hoc Compensatory Afforestation Fund Management and
Planning Authority constituted under the order dated the 5th May, 2006 of the Supreme Court in T.N.
Godavarman Thirumulpad vs. Union of India and Others, [Writ Petition (Civil) No. 202 of 1995];
(b) “Chairperson, National Authority” means the Chairperson of the governing body of the
National Authority;
(c) “Chairperson, State Authority” means the Chairperson of the governing body of the State
Authority;
(d) “compensatory afforestation” means afforestation done in lieu of the diversion of forest land
for non-forestry use under the Forest (Conservation) Act, 1980 (69 of 1980);
(e) “environmental services” includes—
(i) provision of goods such as wood, non-timber forest products, fuel, fodder, water and
provision of services such as grazing, tourism, wildlife protection and life support;
(ii) regulating services such as flood moderation, carbon sequestration and health of soil, air
and water regimes;
(iii) supporting such other services necessary for the production of ecosystem services,
biodiversity, nutrient cycling and primary production including pollination and seed dispersal;
1. 30th September, 2018, vide notification NO. S.O. 3967(E), dated 13th August, 2018, see Gazette of India, Extraordinary,
Part II, sec. 3(ii).
*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and
Kashmir and the Union territory of Ladakh.
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(f) “Head of the regional office” means the senior-most officer appointed by the Central
Government at regional office to deal with the forest conservation matters under the Forest
(Conservation) Act, 1980 (69 of 1980);
(g) “monitoring group” means a group of experts to monitor the activities undertaken from
amounts released from the National Fund and State Fund constituted under sub-section (3) of section
9;
(h) “National Authority” means National Compensatory Afforestation Fund Management and
Planning Authority constituted under section 8;
(i) “National Fund” means the National Compensatory Afforestation Fund established under subsection (1) of section 3;
(j) “net present value” means the quantification of the environmental services provided for the
forest area diverted for non-forestry uses, as may be determined by an expert committee appointed by
the Central Government from time to time in this regard;
(k) “penal compensatory afforestation” means afforestation work to be undertaken over and above
the compensatory afforestation specified in the guidelines issued under the Forest (Conservation) Act,
1980, in lieu of the extent of area over which non-forestry activities have been carried out without
obtaining prior approval of the competent authority under the Forest (Conservation) Act, 1980 (69 of
1980);
(l) “prescribed” means prescribed by rules made by the Central Government in consultation with
the State Governments under this Act;
(m) “State Authority” means the State Compensatory Afforestation Fund Management and
Planning Authority constituted under section 10;
(n) “State Fund” means the State Compensatory Afforestation Fund established by each State
under sub-section (1) of section 4;
(o) “State Government” includes Union territory Administration;
(p) “user agency” means any person, organisation or company or department of the Central
Government or State Government making a request for diversion or de-notification of forest land for
non-forest purpose or using forest land for non-forest purpose in accordance with the provisions
contained in the Forest (Conservation) Act, 1980 (69 of 1980) and the rules made and guidelines
issued, thereunder.