The Coastal Shipping Act, 2025
Administered Ministry: Ministry of Ports, Shipping and Waterways
Section
Section 21 Penalty for reporting false or misleading information.
If any person who is required to report any information to the Director-General under section 6 fails to do so, or otherwise intentionally reports misleading or false information, such person shall be liable for penalty which may extend to one lakh rupees.
Section 22 Penalty for violation of conditions of licence.
Whoever fails to comply with the conditions of licence granted under section 4 or section 11, shall be liable for penalty which may extend to ten lakh rupees, or two times the value of all fees or commission or payments received by the licensee of the vessel for all voyages conducted in contravention, whichever is greater, or with both, and the vessel shall also be liable for detention under section 29
Section 23 Penalty for non-compliance of direction of Director-General.
Any licensee or agent, who fails to comply with any direction of the Director-General under sub-section (1) of section 35, shall be liable for penalty which may extend to five lakh rupees, or two times the value of all fees or commission or payments received by such licensee or agent for all voyages conducted in contravention of such direction, whichever is greater, and the vessel shall also be liable for detention under section 29.
Section 24 Penalty for non-compliance with order of Central Government.
Any licensee or agent, who fails to comply with an order of the Central Government under this Act, shall be liable for penalty of not less than fifteen lakh rupees, and the vessel may also be liable for detention under section 29.
Section 25 General provision for contravention or non-compliance.
Whoever contravenes any provision of this Act, or fails to comply with any provision thereof, or of any rule, direction, order or notification made thereunder, for which no punishment or penalty is specially provided in this Act, shall be liable for penalty which may extend to one lakh rupees, and if the breach is a continuing one, with further penalty which may extend to five thousand rupees for every day after the first day during which the breach continues.
Section 26 Compounding of certain offences.
(1) Notwithstanding anything contained in the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023), any 1[any offence punishable under sections 15, 17, 19 and 20, may], before or after the institution of prosecution, be compounded by an officer designated by the Central Government by notification in this behalf, on payment for credit to the Central Government of such sum and in such manner as may be prescribed:
Provided that such sum shall not, in any case, exceed the maximum amount of the fine which may be imposed under this Act for the offences so compounded:
Provided further that in case of subsequent offence, the same shall not be compounded.
(2) The officer referred to in sub-section (1) shall exercise the powers to compound an offence, subject to the direction, control and supervision of the Central Government.
(3) Every application for the compounding of an offence shall be made in such form and manner as may be prescribed.
(4) Where any offence is compounded before the institution of any prosecution, no prosecution shall be instituted against the offender in relation to whom the offence is so compounded.
(5) Where the compounding of any offence is made after the institution of any prosecution, such composition shall be brought by the officer referred to in sub-section (1), in writing, to the notice of the court in which the prosecution is pending and on such notice for compounding the offence being given, the person against whom the offence is so compounded shall be discharged.
(6) Any person who fails to comply with an order of compounding made by the officer referred to in sub-section (1), shall be liable to pay a sum equivalent to twenty per cent. of the maximum fine provided for the offence, in addition to fine provided for the said offence.
(7) No offence punishable under this Act shall be compounded except in accordance with the provisions of this section.
1. Subs. by Act 8 of 2026, s. 2 and Sch., for “offence punishable under sections 15 to 20 of this Act may” (w.e.f. 01.07.2026)
Section 27 Special provision regarding punishment.
Notwithstanding anything contained in section 23 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (46 of 2023), it shall be lawful for a Judicial Magistrate of the first class to pass any sentence provided under this Act on any person convicted of an offence under this Act.
Section 28 Offences by companies.
(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in-charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if such person proves that the offence was committed without his knowledge or that such person exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that such offence was committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or partner, or other officer of the company, such director, manager, secretary or partner, or other officer shall be deemed to be guilty of that offence and shall also be liable to be proceeded against and punished accordingly.
Explanation.---For the purposes of this section,---
(a) "company" includes a co-operative society, a firm or limited liability partnership firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if such person proves that the offence was committed without his knowledge or that such person exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that such offence was committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or partner, or other officer of the company, such director, manager, secretary or partner, or other officer shall be deemed to be guilty of that offence and shall also be liable to be proceeded against and punished accordingly.
Explanation.---For the purposes of this section,---
(a) "company" includes a co-operative society, a firm or limited liability partnership firm or other association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
Section 29 Power to enforce detention of vessel.
Where a vessel is authorised or ordered to be detained under this Act, any commissioned officer of the Indian Navy or Indian Coast Guard, or Police, or any port officer, pilot, harbour master or conservator of port, or the Commissioner of Customs, or any other person authorised under this Act, may detain the vessel under instructions of the principal officer.
Section 30 Adjudicating officer for imposition of penalty, appeal and procedure therefor.
(1) The principal officer shall be the adjudicating officer for the purposes of imposing penalty under 1[sections 16, 18 and] sections 21 to 25.
(2) Any person aggrieved by the order of the principal officer imposing the penalty under sub-section (1) may, within a period of thirty days from the date of receipt of such order, prefer an appeal before the Director-General in such form and manner as may be prescribed.
(3) The Director-General shall dispose of an appeal referred to in sub-section (2) within a period of thirty days from the date of receipt of such appeal.
(4) No order shall be passed under this section unless the parties have been given a reasonable opportunity of being heard.
(5) Any penalty imposed under sections 21 to 25 may be compounded for the first contravention by an officer designated by the Central Government by notification in this behalf.
(6) Notwithstanding anything contained in this Act, if a penalty imposed by the principal officer or the Director-General under this Chapter is not deposited, the amount shall be recovered as an arrear of land revenue.
1. Ins. by Act 8 of 2026, s. 2 and Sch. (w.e.f. 01.07.2026).
Section 31 Notice in respect of foreign vessel.
If any vessel, other than an Indian vessel, is detained under this Act, or if any proceeding is taken under this Act against the licensee or agent of such vessel, notice shall forthwith be served on the consular office of the country in which such vessel is registered, or nearest to the port where the vessel is for the time being, in such form and manner as may be prescribed, and such notice shall specify the grounds on which the vessel has been detained or the proceedings have been taken.
Section 32 Place of trial and jurisdiction of court.
Any person who commits an offence under this Act or any rules made thereunder, may be tried for such offence in any place in which such person may be found, or in any court which the Central Government may, by notification, direct in this behalf, or in any court in which such person might be tried under any other law for time being in force in India.
Section 33 Service of documents.
Where, for the purposes of this Act, any document is to be served on any person, that document may be served,---
(a) in any case by delivering a copy thereof personally to the person to be served, or by leaving the same at his last place of residence, or by post or by such electronic means as the Central Government may, by notification, specify in this behalf;
(b) on the master of a vessel where there is master, or on the person being or appearing to be in command or charge of the vessel, by leaving the same for him on board that vessel; and
(c) on the owner of the vessel where there is no master and the vessel is in India, or if such owner is not in India, on the agent of the owner residing in India, or, where no such agent is known or is found, by affixing at a suitable place on the bridge of the vessel.
(a) in any case by delivering a copy thereof personally to the person to be served, or by leaving the same at his last place of residence, or by post or by such electronic means as the Central Government may, by notification, specify in this behalf;
(b) on the master of a vessel where there is master, or on the person being or appearing to be in command or charge of the vessel, by leaving the same for him on board that vessel; and
(c) on the owner of the vessel where there is no master and the vessel is in India, or if such owner is not in India, on the agent of the owner residing in India, or, where no such agent is known or is found, by affixing at a suitable place on the bridge of the vessel.
Section 34 Power to delegate.
(1) The Central Government may, by general or special order, direct that any power, authority or jurisdiction exercisable by it under or in relation to any of the provisions of this Act, may be exercisable also by the Director-General or such other officer and subject to such conditions as may be specified in the order.
(2) The Director-General may, with the previous approval of the Central Government, by general or special order, direct that any power or authority conferred upon or delegated to, and any duty imposed upon him by or under this Act, may be exercised or discharged also by such officer or authority and subject to such conditions as may be specified in the order.
(2) The Director-General may, with the previous approval of the Central Government, by general or special order, direct that any power or authority conferred upon or delegated to, and any duty imposed upon him by or under this Act, may be exercised or discharged also by such officer or authority and subject to such conditions as may be specified in the order.
Section 35 Power of Director-General to give directions and seek information.
(1) The Director-General may,---
(a) in the public interest; or
(b) in the interest of Indian shipping; or
(c) in the interest of national defence and maritime security; or
(d) for ensuring safety of life at sea and the safety of environment,
by order, direct any vessel for which licence has been granted under this Act, in respect of the following, namely:---
(i) the ports or places, whether within or outside India, to which, and the routes by which, the vessel shall proceed for any particular purpose;
(ii) the diversion of a vessel from one route to another for any particular purpose;
(iii) the classes of passengers or cargo which may be carried in the vessel;
(iv) the order of priority in which passengers or cargo may be taken on or put off the vessel at any port or place, whether within or outside India;
(v) to ban any vessel from entering any port, anchorage or offshore facility in India;
(vi) any other matter which the Director-General may deem necessary.
(2) The Director-General may, by notice, require the licensee or agent of any vessel in respect of which---
(a) licence is granted under this Act; or
(b) any direction is given relating to diversion of a vessel from one route to another for any particular purpose,
to furnish such information as may be considered necessary within such period as may be specified in the said notice, which may include---
(i) the classes of passengers and cargo which the ship is about to carry, or is capable of carrying, or has carried during any specified period; or
(ii) the rates of passenger fares and freight charges applicable to the vessel; or
(iii) any other matter as may be prescribed.
(a) in the public interest; or
(b) in the interest of Indian shipping; or
(c) in the interest of national defence and maritime security; or
(d) for ensuring safety of life at sea and the safety of environment,
by order, direct any vessel for which licence has been granted under this Act, in respect of the following, namely:---
(i) the ports or places, whether within or outside India, to which, and the routes by which, the vessel shall proceed for any particular purpose;
(ii) the diversion of a vessel from one route to another for any particular purpose;
(iii) the classes of passengers or cargo which may be carried in the vessel;
(iv) the order of priority in which passengers or cargo may be taken on or put off the vessel at any port or place, whether within or outside India;
(v) to ban any vessel from entering any port, anchorage or offshore facility in India;
(vi) any other matter which the Director-General may deem necessary.
(2) The Director-General may, by notice, require the licensee or agent of any vessel in respect of which---
(a) licence is granted under this Act; or
(b) any direction is given relating to diversion of a vessel from one route to another for any particular purpose,
to furnish such information as may be considered necessary within such period as may be specified in the said notice, which may include---
(i) the classes of passengers and cargo which the ship is about to carry, or is capable of carrying, or has carried during any specified period; or
(ii) the rates of passenger fares and freight charges applicable to the vessel; or
(iii) any other matter as may be prescribed.
Section 36 Power of Central Government to issue directions.
(1) Notwithstanding anything contained in this Act, every person shall, in the discharge of his functions and duties under this Act, be bound by such directions on questions of policy as the Central Government may give to it in writing from time to time.
(2) The decision of the Central Government as to whether a question is one of policy or not, shall be final.
(2) The decision of the Central Government as to whether a question is one of policy or not, shall be final.
Section 37 Power to exempt.
Notwithstanding anything contained in this Act or any law for the time being in force, the Central Government or, as the case may be, the Director-General with the prior permission of the Central Government, if is of opinion that it is necessary or expedient in the public interest so to do, may, by order in writing and subject to such conditions and for such period as it may think fit, exempt from the provisions of this Act,---
(a) any vessel or class of vessels engaged in coasting trade; or
(b) any class of vessels chartered by a citizen of India or non-resident Indian or an overseas citizen of India, or a company or a co-operative society or a limited liability partnership or such entities as may be specified by the Central Government under sub-section (1) of section 11.
(a) any vessel or class of vessels engaged in coasting trade; or
(b) any class of vessels chartered by a citizen of India or non-resident Indian or an overseas citizen of India, or a company or a co-operative society or a limited liability partnership or such entities as may be specified by the Central Government under sub-section (1) of section 11.
Section 38 Protection of action taken in good faith.
No suit, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act.
Section 39 Power of Central Government to make rules.
(1) The Central Government may, subject to the condition of previous publication, make rules for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:---
(a) the form and manner of application for grant of licence and the fee to be paid for the same under sub-section (1) of section 4;
(b) the form, period and the conditions subject to which licence shall be granted under sub-section (3) of section 4;
(c) the class or category of licence to be granted under sub-section (4) of section 4;
(d) the form and manner of making application for modification of particulars of a licence under sub-section (3) of section 5;
(e) the form and manner of reporting the requirements to the Director-General under section 6;
(f) such other matters to be included in the Strategic Plan under clause (h) of sub-section (2) of section 8;
(g) the time, place and the procedure to be observed by the committee for the transaction of business at its meetings and the quorum at such meetings under sub-section (4) of section 8;
(h) the form and manner of maintaining the National Database of Coastal Shipping by the Director-General under sub-section (1) of section 9;
(i) the form and manner of application for grant of licence and the fee to be paid under sub-section (3) of section 11;
(j) the form, period and the conditions subject to which licence shall be granted under sub-section (4) of section 11;
(k) the form and manner of making application for modification of particulars of a licence under sub-section (2) of section 12;
(l) the sum to be paid for credit to the Central Government for compounding an offence and the manner of making the payment under sub-section (1) of section 26;
(m) the form and manner of making an application for the compounding of an offence under sub-section (3) of section 26;
(n) the form and manner of preferring appeal to the Director-General under sub-section (2) of section 30;
(o) the form and manner of issuance of notice under section 31;
(p) any other matters in respect of which the Director-General may, by notice, require the licensee or agent of any vessel to furnish information under sub-section (2) of section 35;
(q) any other matter which is required to be or may be prescribed for carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:---
(a) the form and manner of application for grant of licence and the fee to be paid for the same under sub-section (1) of section 4;
(b) the form, period and the conditions subject to which licence shall be granted under sub-section (3) of section 4;
(c) the class or category of licence to be granted under sub-section (4) of section 4;
(d) the form and manner of making application for modification of particulars of a licence under sub-section (3) of section 5;
(e) the form and manner of reporting the requirements to the Director-General under section 6;
(f) such other matters to be included in the Strategic Plan under clause (h) of sub-section (2) of section 8;
(g) the time, place and the procedure to be observed by the committee for the transaction of business at its meetings and the quorum at such meetings under sub-section (4) of section 8;
(h) the form and manner of maintaining the National Database of Coastal Shipping by the Director-General under sub-section (1) of section 9;
(i) the form and manner of application for grant of licence and the fee to be paid under sub-section (3) of section 11;
(j) the form, period and the conditions subject to which licence shall be granted under sub-section (4) of section 11;
(k) the form and manner of making application for modification of particulars of a licence under sub-section (2) of section 12;
(l) the sum to be paid for credit to the Central Government for compounding an offence and the manner of making the payment under sub-section (1) of section 26;
(m) the form and manner of making an application for the compounding of an offence under sub-section (3) of section 26;
(n) the form and manner of preferring appeal to the Director-General under sub-section (2) of section 30;
(o) the form and manner of issuance of notice under section 31;
(p) any other matters in respect of which the Director-General may, by notice, require the licensee or agent of any vessel to furnish information under sub-section (2) of section 35;
(q) any other matter which is required to be or may be prescribed for carrying out the provisions of this Act.
Section 40 Laying of rules and notifications before Parliament.
Every rule made and every notification issued under this Act shall be laid, as soon as may be after it is made or issued, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.