Arms (Amendment) Rules. 2022

MINISTRY OF HOME AFFAIRS

NOTIFICATION

New Delhi, the 18th January, 2022

G.S.R. 31(E).—In exercise of the powers conferred by section 44 of the Arms Act, 1959 (54 of 1959), the Central Government hereby makes the following rules further to amend the Arms Rules, 2016, namely:-

1. Short title and commencement.—(1) These rules may be called the Arms (Amendment) Rules. 2022.

(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Arms Rules, 2016 ,-

(i) in rule 53, in sub-rule (2), in clauses (e), (f) and (h), for the words “a Chartered Accountant”, the words ” the authorised signatory of the company” shall be substituted;

(ii) in rule 55,-

(a) in sub-rule (8), –

(i) for the words “key managerial personnel”, the words “Chief Executive Officer of the company” shall be substituted;

(ii) the words “or any change in the responsible person of the company” shall be omitted;

(b) for sub-rule (9), the following sub-rule shall be substituted, namely:-

“(9) Prior approval of the licensing authority shall be mandatory for any change in control, either directly or indirectly, of the company or in case of ally change in shareholding or beneficial interest in the shareholding,-

(a) resulting into dilution of promoters shareholding below ten per cent.;

or

(b) increase in shareholding of a shareholder, who held less than ten per cent. in the share capital of the company, to ten per cent. or more share capital in the company:

Provided that for transfer of share holding between the two promoters which is already approved by the licensing authority, prior approval under this sub-rule shall not be required and the prior intimation to this effect to the licensing authority shall be sufficient.

Explanation.- For the purposes of this sub-rule, the expression “control” shall have the same meaning as assigned to it under clause (27) of section 2 of the Companies Act, 2013(18 of 2013).”;

(iii) in rule 60,-

(a) in sub-rule (2),-

(i) in the opening paragraph, after the word “re-fixation”, the words “or caliber wise revision” shall be inserted;

(ii) for clause (ii), the following clause shall be substituted, namely:-

“(ii) certified copies of the annual accounts of the licensee for the last five years duly certified by the authorised signatory of the company;”;

(iii) for clause (iv), the following clause shall be substituted, namely:-

“(iv) copies of the stock records, manufactured items and sales turnover for the last five years duly certified by the authorised signatory of the company;”;

(iv) for clause(v), the following clause shall be substituted, namely:-

“(v) detailed proposal for enhancement of manufacturing capacity or caliber wise revision of licensed capacity, project outlays, means of finance and justification for economic viability and market demand projections for enhancement in capacity production duly certified by the authorised signatory of the company;”;

(b) sub-rule (5) shall be omitted;

(iv) After rule 60, the following rules shall be inserted, namely:-

“60A. Capacity revision for new manufacturers issued licence in Form VII. – The new manufacturer who has been issued licence in Form VII under these rules may apply for enhancement or restoration or re-fixation or caliber wise revision of his licensed capacity and the provisions of rule 60 shall apply mutatis mutandis to such manufacturers.

60B. Enhanced annual production.-The manufacturer who has been issued licence in Form VII under these rules shall be permitted to have enhanced annual production of firearms or ammunition or caliber wise revision of his licensed capacity by giving intimation to the licensing authority and also to the State Government concerned within ninety days from the end of the fmancial year and for which no further endorsement on the licence as to capacity shall be required.”;

(v) in rule 65, for sub-rule (4), the following sub-rule shall be substituted, namely:-

” (4) (a) The manufacturers shall establish an online electronic connectivity under his user id with NDAL-ALIS system of the Government of India in the Ministry of Home Affairs and shall provide for a monthly electronic online transfer of data regarding firearms manufactured and sold or transferred and ammunition manufactured and sold or transferred or consumed for the month, as recorded in the registers referred to in sub-rules (1) and (2).

(b) If any circumstances occur which prevent a licensee to submit online returns on NDAL-ALIS system referred to in clause (a) by means of electronic network connectivity, the local licensing authority shall be informed immediately in order to establish alternative means to submit the monthly returns.

(c) Monthly returns for the current month shall be submitted by the close of business hours of the last day of the month.”;

(vi) in Schedule I, in Part A, for the entries in column (2) against the Category Ill (f) (ii), the following entries shall be substituted, namely:-

“having muzzle energy less than or equal to 20 joules or 15 ft. lbs. and/or bore/caliber less than or equal to 0.177″ or 4.5 mm”.

[F. No. 11026/20/2020-Arms (Part-II)]

MRITUNJAY KUMAR NARAYAN, Addl. Secy.

Note : the principle rules were published in the Gazette of India, Extraordinary, Part H, Section 3, Sub­section (i), vide G.S. R. 701(E), dated the 15^th July,2016 and last amended vide G. S. R. 625(E), dated the 9^th October, 2020.