The Government has notified the Agricultural and Processed Food Products Export Development Authority (Adjudication of Penalties) Rules, 2026, providing a detailed procedural framework for adjudication of penalties and disposal of appeals under the Agricultural and Processed Food Products Export Development Authority Act, 1985.
The Rules have been notified by the Ministry of Commerce and Industry through G.S.R. 741(E) dated 19 August 2026 and have come into force from the date of their publication in the Official Gazette.
The Rules have been framed in exercise of the powers conferred by clauses (ma) and (mb) of sub-section (2) of Section 32, read with Section 25A of the APEDA Act, 1985.
Adjudicating Officer to conduct inquiry into alleged contraventions
Under the new Rules, an Adjudicating Officer, appointed by the Chairman under Section 25A of the APEDA Act, will conduct proceedings relating to adjudication of penalties in respect of specified contraventions.
Upon receipt of a complaint regarding an alleged contravention, the Adjudicating Officer will issue a show-cause notice in Form-I, requiring the concerned person to explain why an inquiry should not be initiated.
The period provided for submitting a response to the show-cause notice cannot be less than seven days from the date of service of the notice. The notice is also required to clearly indicate the nature of the alleged contravention.
Opportunity of hearing and submission of evidence
After considering the response submitted by the concerned person, the Adjudicating Officer may proceed with an inquiry where considered necessary.
The person against whom proceedings are initiated may appear personally or through a duly authorised representative and will be given an opportunity to submit documents and evidence relevant to the inquiry.
Where necessary, the hearing may be adjourned to another date, subject to the conditions prescribed under the Rules. Such adjournment is to be not later than 15 days from the first date of hearing and up to a maximum of three dates.
The Rules further provide that, while taking evidence, the Adjudicating Officer will not be bound by the provisions of the Bharatiya Sakshya Adhiniyam, 2023.
Inquiry may proceed in absence in specified circumstances
Where a person fails, neglects or refuses to appear before the Adjudicating Officer despite being required to do so, the officer may proceed with the inquiry in the person’s absence after recording reasons.
After considering the available evidence, if the Adjudicating Officer is satisfied that a contravention has been committed, a penalty may be imposed through a written order under the provisions of the APEDA Act.
Every such order must specify the relevant provision of the Act that has been contravened and record the reasons for imposition of the penalty.
A copy of the order and other proceedings is required to be provided free of cost to the person against whom the inquiry was conducted.
Adjudication proceedings to be completed within six months
The Rules prescribe a defined timeline for adjudication proceedings. The Adjudicating Officer is required to complete the proceedings within six months from the date of issuance of notice to the person concerned.
The Rules also prescribe multiple modes for service of notices and orders, including delivery to the person or authorised representative, electronic mode, or speed post with registration and proof of delivery.
Where service cannot be effected through the prescribed methods, the notice or order may be affixed on a conspicuous part of the premises in accordance with the Rules.
Right of appeal against Adjudicating Officer’s order
The Rules provide an appellate mechanism for persons aggrieved by an order of the Adjudicating Officer.
An aggrieved person may file an appeal in Form-II before the Appellate Authority within 30 days from the date of receipt of the adjudication order.
The Appellate Authority may, however, admit an appeal after expiry of the 30-day period if satisfied that the appellant was prevented by sufficient cause from filing the appeal within the prescribed time.
The appeal must be accompanied by a copy of the adjudication order, a clear statement of the facts being challenged, grounds of appeal and the relevant provisions of the Act.
Defects in appeal may be rectified within 15 days
Where an appeal is found to be defective upon scrutiny, the Appellate Authority will inform the appellant of the deficiencies and provide 15 days for rectification.
If the appellant fails to correct the deficiencies within the prescribed period, the Appellate Authority may decline to register the appeal by recording reasons in writing and communicate the decision to the appellant within the stipulated period.
Appellate Authority to dispose of appeals within 60 days
Upon admission of an appeal, a copy will be served on the concerned party along with a notice requiring submission of a reply within a period not exceeding 30 days.
The Appellate Authority may call for records relating to the proceedings from the concerned Adjudicating Officer and, after providing the parties an opportunity of being heard, pass such orders as it considers reasonable.
The Rules stipulate that the Appellate Authority shall dispose of an appeal within 60 days from the date of its filing.
Provision for extension of prescribed timelines
The Adjudicating Officer or the Appellate Authority may extend a period specified under the Rules where there is a reasonable cause for delay or failure to act, subject to reasons being recorded in writing.
Every order passed under the Rules is required to be signed and dated and communicated to all concerned parties.
Further, all sums realised by way of penalties under the Rules will be credited to the Consolidated Fund of India.
Standardised Forms prescribed for show-cause notice and appeal
The Rules also prescribe standard formats to ensure procedural consistency.
Form-I has been prescribed for issuance of a show-cause notice in respect of alleged contraventions of the APEDA Act, while Form-II has been prescribed for filing an appeal against the order of the Adjudicating Officer.
The notification establishes a structured and time-bound framework for adjudication of penalties and appeals under the APEDA Act, including clear provisions relating to notice, opportunity of hearing, evidence, passing of reasoned orders and appellate review.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/08/Agricultural-and-Processed-Food-Products-Export-Development-Authority-Adjudication-of-Penalties-Rules-2026.pdf
