Biological Diversity: formula sheet

Key formulas

Aims of the Act (CBD-based)

Conservation + Sustainable use + Fair and equitable benefit sharing

The three objectives of the CBD, which the Act implements in India.

Access (Section 2(a))

Collecting, procuring or possessing a biological resource from India or associated traditional knowledge, for research, bio-survey or commercial utilisation

Purpose matters. Access for none of these purposes is not 'access' under the Act.

Biological resources (Section 2(c))

Plants, animals, micro-organisms or parts of their genetic material and derivatives, with actual or potential use or value for humanity; excludes value added products and human genetic material

Two exclusions to remember.

Value added products (Section 2(p))

Products containing portions or extracts of plants and animals in unrecognisable and physically inseparable form

Outside the meaning of biological resources.

Commercial utilisation (Section 2(f))

End uses such as drugs, industrial enzymes, food flavours, fragrance, cosmetics, emulsifiers, oleoresins, colours, extracts and genes for improving crops and livestock through genetic intervention; excludes conventional breeding and traditional practices in agriculture, horticulture, poultry, dairy farming, animal husbandry, bee keeping

The list is illustrative ('such as'). The exclusion is specific.

Bio-survey and bio-utilisation (Section 2(d))

Survey or collection of species, subspecies, genes, components and extracts of a biological resource for any purpose, including characterisation, inventorisation and bioassay

Note the words 'for any purpose'.

Benefit claimers (Section 2(aa))

Conservers of biological resources and their by-products, and creators or holders of associated traditional knowledge (excluding codified traditional knowledge only for Indians), and information on their use

They are the people for whom benefit sharing is meant.

Codified traditional knowledge (Section 2(ea))

Knowledge derived from authoritative books specified in the First Schedule to the Drugs and Cosmetics Act, 1940

Used in exemptions and in the benefit claimers definition.

Benefit sharing modes (Section 21(2))

Joint IPR ownership; transfer of technology; location of units; association of Indian scientists and local people; venture capital fund; monetary and non-monetary benefits

The NBA determines them subject to regulations.

Establishment and status (section 8)

NBA = body corporate + perpetual succession + common seal; head office at Chennai

Established by the Central Government by notification. Other offices need the Central Government's previous approval.

Composition (section 8(4))

1 Chairperson + 16 ex officio + 4 State Board representatives + 5 non-official + 1 Member-Secretary

The four State Board members serve on a rotational basis. The 16 ex officio members represent Ministries named in the Act.

Regulatory duty (section 18(1) and (2))

Make regulations (with Central Government approval) on access and benefit sharing; grant or reject approvals under sections 3, 4 and 6

Section 3 covers certain persons and entities seeking access, section 4 covers transfer of research results, and section 6 covers applying for intellectual property rights. Know the section numbers only as the NBA's approval areas.

Advisory powers (section 18(3))

Advise the Central Government, advise State Governments on heritage sites, advise State Boards, and perform other necessary functions

These are discretionary ('may'), unlike the regulatory duty, which is stated as a duty ('shall').

Opposing foreign IP (section 18(4))

NBA may, on behalf of the Central Government, take measures to oppose IP grants outside India on Indian biological resources or associated traditional knowledge

It covers resources found in or brought from India, including those deposited in repositories outside India.

Fund (section 27)

Charges and benefit sharing amounts received by NBA go into the National Biodiversity Fund

The Fund is used for channeling benefits to claimers, conservation, socio-economic development of source areas, and the Act's purposes.

Duty to constitute a BMC (s.41(1))

Gram Panchayat (rural) / Nagar Panchayat or Municipal Committee at Municipal Corporation level (urban) → must constitute a BMC

The word is 'shall'. The State Government may also constitute BMCs at the intermediate or district Panchayat level.

Size of a BMC (s.41(1B))

7 ≤ number of members ≤ 11

Composition is prescribed by the State Government.

Functions of a BMC (s.41(1A))

Conservation + sustainable use + documentation of biological diversity, including chronicling of associated traditional knowledge

Covers habitats, landraces, folk varieties, cultivars, domesticated breeds and microorganisms.

Consultation duty (s.41(2))

NBA / SBB must consult the BMC before any decision on use of biological resources or associated traditional knowledge in its area

The duty falls on the NBA and SBB, not on the applicant.

Collection fees (s.41(3))

BMC may levy fees on persons accessing or collecting biological resources for commercial purposes from its area

These fees are credited to the Local Biodiversity Fund under s.43(1)(d).

Prior intimation to SBB (s.7)

Commercial utilisation of a biological resource and associated knowledge → prior intimation to the concerned SBB

Exempt: codified traditional knowledge, cultivated medicinal plants and products, local people and communities including growers and cultivators, and vaids, hakims and registered AYUSH practitioners practising for sustenance and livelihood.

Cultivated medicinal plants (s.7(2)-(3))

Exemption available only if a certificate of origin is obtained from the BMC

The BMC issues it on the basis of entries in its books, in the prescribed manner.

BMC accounts (s.46)

Maintain accounts → audit as prescribed by State Government → send audited accounts and auditor's report to the local body and the SBB

The due date is prescribed by the State Government.

Section 19(1): access approval

Section 3(2) person + access for research / commercial use / bio-survey and bio-utilisation / transfer of results → apply to NBA

NBA may approve with terms (including royalty) or reject for recorded reasons, after a hearing. Under the proviso to section 19(3A) it may also prohibit or restrict a detrimental activity, for recorded reasons and after a hearing.

Section 4: transfer of research results

Transfer of results to section 3(2) persons → previous NBA approval

Publication of papers or sharing at seminars or workshops is not a transfer if it follows Central Government guidelines.

Section 20: transfer application

Application to NBA in prescribed form and fee; NBA grants (with benefit sharing) or rejects; details placed in public domain

Covers results on resources found in or brought from India, including those in repositories abroad, and associated traditional knowledge.

Section 6(1): IPR by section 3(2) persons

Prior NBA approval before grant of IPR

Applies to IPR in or outside India for inventions based on research or information on resources accessed from India or associated traditional knowledge.

Section 6(1A) and (1B): IPR by section 7 persons

Section 7 person + IPR for an invention based on research or information on a biological resource accessed from India (including repositories abroad) or associated traditional knowledge → register with NBA before grant; prior NBA approval at commercialisation

The duty depends on the invention being based on such a resource or knowledge. It is not a general duty of every Indian company. Do not mix it with the prior approval required of section 3(2) persons.

Section 7: prior intimation

Non-section 3(2) person + commercial utilisation → prior intimation to State Biodiversity Board

Subject to listed exemptions; cultivated medicinal plants need a BMC certificate of origin.

Section 21(2): modes of benefit sharing

Joint IPR ownership; technology transfer; location of units; scientist and community involvement; venture capital fund; monetary and non-monetary benefits

Money may go to the National Biodiversity Fund, or directly to a benefit claimer where access came from an identified individual, group or organisation.

Section 6(3): plant variety exclusion

Section 6 does not apply to applications under plant variety protection law

The authority granting such a right endorses a copy to the NBA.

Benefit sharing duty (Section 21(1))

Approval terms must secure fair and equitable sharing, on mutually agreed terms between applicant and BMC (represented by NBA)

Benefits arise from accessed resources, derivatives, innovations, practices and related knowledge.

Modes of benefit sharing (Section 21(2))

Joint IPR ownership | technology transfer | location of R&D units | association of scientists and local people | venture capital fund | monetary and non-monetary benefits

Applies subject to regulations. The Act uses 'all or any' of these, so the NBA can choose one or more.

Deposit of money (Section 21(3))

Money ordered → National Biodiversity Fund; direct payment to benefit claimer allowed under the proviso

Direct payment applies where the resource or knowledge was accessed from an individual, group or organisation.

IPR rule (Section 6(1))

Section 3(2) person applying for IPR → prior NBA approval before grant

Covers IPR in or outside India, and resources in overseas repositories.

Section 7 persons (Sections 6(1A), 6(1B))

Register before grant of IPR; prior approval at commercialisation if IPR already obtained

Section 19(2A) repeats this.

Fee or royalty (Section 6(2))

NBA may impose benefit sharing fee, royalty or both, or conditions

Sharing of financial benefits from commercial use of the rights.

Plant variety exception (Section 6(3), 6(4))

Section 6 not applicable to plant variety protection applications; granting authority endorses a copy to NBA

Do not state it as a complete exemption from the Act.

Section 36B(1) duty

State Government SHALL develop strategies, plans and programmes, in conformity with national ones

Mandatory duty. Covers identification and monitoring of rich areas, in situ and ex situ conservation, incentives for research, training and public education.

Section 36B(2) integration

State Government shall, as far as practicable and wherever it deems appropriate, integrate conservation into sectoral or cross-sectoral policies, plans and programmes

Qualified duty. Do not state it as absolute.

Section 37 heritage sites

State Board recommends (after consulting local body and BMC) → State Government notifies in Official Gazette

The State Government has the power to notify; the Board only recommends. The State must frame compensation or rehabilitation schemes for affected people.

Section 38 threatened species

Central Government, in consultation with State Government, notifies species on verge of extinction or likely to become extinct in near future

Can prohibit or regulate collection and take rehabilitation and preservation steps. If delegated to a State, the State consults the NBA first.

In situ vs ex situ (section 36 Explanation)

In situ = in natural surroundings; ex situ = outside natural habitats

For domesticated or cultivated species, in situ means the surroundings where they developed their distinctive properties.

Penalty under section 55

₹1,00,000 ≤ penalty ≤ ₹50,00,000; if damage > penalty, penalty = commensurate with damage

Applies to contravention, attempt or abetment of section 3, 4, 6 or 7. Continuing failure: additional penalty up to ₹1 crore.

Adjudicating officer (section 55A)

Rank ≥ Joint Secretary (Government of India) or Secretary (State Government); appointed by Central Government

Must hold an inquiry and give an opportunity of being heard before imposing penalty.

Appeal against adjudicating officer's order

Appeal to NGT within 60 days of receiving the copy of the order

Section 55A(3) and (4). NGT may confirm, modify or set aside the order.

Residual fine (section 56)

First: up to ₹1 lakh; repeat: up to ₹2 lakh; continuing: further up to ₹2 lakh per day

Only where no punishment is separately provided under the Act.

Offences by companies (section 57)

Company + persons in charge and responsible = deemed guilty, unless no knowledge or all due diligence

Directors, managers, secretaries and officers are liable on consent, connivance or neglect. Company includes a firm or association of individuals.

Appeal against NBA/SBB determination or order

Section 52A: appeal to NGT, in accordance with the NGT Act, 2010

Section 52 (High Court, 30 days) does not apply after the NGT Act, 2010 commenced, except for pending appeals.

Execution (section 53)

Determination or order, or High Court or NGT order in appeal = deemed decree of civil court on a certificate

Certificate is issued by an officer of the NBA or SBB, or the Registrar of the High Court or NGT.

Local Biodiversity Fund (section 42)

State Government grants or loans after due appropriation by State Legislature

Used for the purposes of the Act.

Quick revision

• The Act is the Biological Diversity Act, 2002, amended by Act 10 of 2023 with effect from 1 April 2024.
• Section 18: the NBA makes regulations, with Central Government approval, on access and benefit sharing.
• The NBA regulates activities under sections 3, 4 and 6 by granting or rejecting approvals.
• Section 18(4): the NBA may act for the Central Government to oppose IPR grants abroad on Indian biological resources or associated knowledge.
• Section 6(1): persons under section 3(2) need prior NBA approval before an IPR is granted.
• Section 6(1A) and (1B): persons under section 7 register before grant and obtain prior approval at commercialisation.
• Section 6(2): the NBA may impose a benefit sharing fee, royalty or both, or other conditions.
• Section 6(3): section 6 does not apply to applications under plant variety protection law.
• Section 21: benefit sharing is on mutually agreed terms, and money may go to the National Biodiversity Fund or directly to benefit claimers.
• Section 36: the Centre develops national strategies in consultation with States and Union territories.
• Section 36B: the State Government develops strategies and plans in conformity with national ones.
• In situ means conservation in natural habitats; ex situ means outside them.

Common mistakes

• Treating value added products as biological resources. Fix: Remember the exclusion: extracts in unrecognisable and physically inseparable form are outside Section 2(c).
• Saying human genetic material is covered. Fix: State that biological resources do not include human genetic material.
• Writing that the head office of the NBA is at Delhi or in the Ministry's city. Fix: Remember that section 8(3) fixes the head office at Chennai. Other offices need Central Government approval.
• Mixing up the NBA with the State Biodiversity Board. Fix: The NBA regulates activities under sections 3, 4 and 6. The State Board regulates activities under section 7 (section 23). Say which body fits the facts.
• Saying a BMC is constituted by the State Government or the SBB in every case. Fix: Under s.41(1) the local body constitutes it. The State Government may additionally constitute BMCs at intermediate or district Panchayat level.
• Giving the wrong membership range, such as 5 to 11 or 'at least 7 with no upper limit'. Fix: Remember 'not less than seven and not exceeding eleven'. The composition itself is prescribed by the State Government.
• Saying every user needs NBA approval. Fix: Only section 3(2) persons need NBA approval for access. Other persons give prior intimation to the State Biodiversity Board for commercial use.
• Treating all IPR applicants alike, or saying every Indian company must register with the NBA. Fix: Section 3(2) persons: prior approval before grant. Section 7 persons: registration before grant and approval at commercialisation, but only where the invention is based on research or information on a biological resource accessed from India, or associated traditional knowledge.
• Saying NBA approval is needed after the IPR is granted Fix: For Section 3(2) persons, approval is before grant. Approval at commercialisation applies to Section 7 persons who already hold the IPR.
• Treating benefit sharing as only a money payment Fix: List all Section 21(2) modes, including joint IPR ownership, technology transfer, scientist association and venture capital fund.

Exam tips

• Write the CBD background in two lines and then the three objectives; examiners reward the link to the Act.
• Learn definitions with their exclusions; case questions are built on them.
• Do not quote section numbers unless certain; Sections 1, 2, 3, 6, 7 and 21 are safe from the text.
• Close fact-based answers with a practical step: seek NBA approval or give prior intimation to the State Board.
• Use short bullet lists for benefit sharing modes under Section 21(2).
• Write the section number next to each point. Sections 8 and 18 carry most of the marks for this topic.
• Use a short list for composition and a short paragraph for functions. Examiners look for completeness.
• In case-based questions, name the correct body first (NBA or State Board), then apply the provision and conclude.