The Maharashtra State Biodiversity Board (MSBB) has served around 600 notices in the past six months against ASU manufacturers for non-compliance to access and benefit sharing (ABS), subsequent to issuing notices for recovery of royalty under the Biodiversity Act (BD), 2002.
As per the BD Act, manufacturers are accountable to share details of the source from where raw material has been procured in Form I and further submission of the same to MSBB.
As per the MSBB notice, it is required to share benefit among concerned Biodiversity Management Committees (BMCs) of the state for sustainable use of bio-resources as per BD Act, 2002. The notice also stated that MSBB has the mandate to collect ABS payment under the provisions of BD Act, 2002.
A writ petition, filed by association of manufacturers for seeking clarity on whether Indian companies fall under its purview, is also pending at Nagpur bench of Bombay High Court. Central India Ayush Drug Manufacturers Association (CIDMA) had filed a petition in the Nagpur bench of Bombay High Court for seeking clarity on the matter.
MSBB has maintained that manufacturers violating the rules will be prosecuted according to the BD Act, state biodiversity boards, National Biodiversity Authority (NBA) and central government are empowered to take legal action for the non-compliance to ABS.
An MSBB official also gave reference of National Green Tribunal (NGT) order asking for royalties in the form of ABS payments from companies engaged in commercial utilisation of castor plant and other bio-resources for manufacturing drugs and cosmetics.
The NGT judgment specified that ABS is applicable to bio-resources from agriculture or forest area. An agriculture bio-resource when utilised for general commodities, no ABS is applicable. However, when utilised for commercial purposes for use in drugs and cosmetic products, ABS is applicable to it. ABS is also applicable for access to biological resources, bio-survey and bio-utilisation for commercial utilisation.
Member secretary of MSBB Dr Dilip Singh had issued notices to defaulting traders and manufacturers in response to non-payment of ABS to MSBB as commercial utilisation of bio-resources is tantamount to violation of Section 2(c) (f) and Section 7 of Biological Diversity Act, 2002.
The NGT further gave instructions to MSBB to take appropriate action against defaulting parties and in case the parties do not respond, their names to be published in newspapers and thereafter prosecution to be filed against them as per the law. It has been further directed that violation of Sections 7 and 24 (2) of Biological Diversity Act, 2002 by not giving prior intimation to State Biodiversity Board (SBB) in case of access to biological resources for commercial purposes, companies shall be held liable and punishable with imprisonment for a term which may extend to 3 years or with fine which may extend to Rs.5 lakhs or with both under Section 55 (2) of the BD Act.
As per the MOEF notification, dated November 21, 2014 the benefit sharing obligation from trader and manufacturer shall be in the range of 1 to 3 per cent and 3 to 5 per cent respectively of the purchase price of the biological resources. However, there is option to pay benefit sharing on sale price of the biological resources accessed for commercial utilisation under the law. For annual gross ex factory sale of product, in case of Rs.1 crore benefit sharing will be 0.1 per cent, for Rs.1 to Rs.3 crore, it would be 0.2 per cent, for above Rs.3 crores turn over, the benefit sharing will be 0.5 per cent.