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New Central Silk Board Rules Bring Cooperative Societies Under Adjudication Framework

New Delhi, October 12, 2026: The Ministry of Textiles has notified the Central Silk Board (Adjudication and Manner of Holding Inquiry and Imposition of Penalty) Rules, 2026, explicitly including cooperative societies within the scope of the new framework for adjudicating specified violations.

Notified on October 8, 2026, the rules define an “establishment” to cover a broad range of entities, including companies, firms, associations, trusts, institutions and cooperative societies, among others.

Under the new framework, authorised officers can file complaints relating to specified violations under the Central Silk Board Act, 1948. The adjudicating officer will examine the matter after issuing a show-cause notice to the concerned establishment and providing an opportunity to submit a response and be heard.

The rules also outline factors to be considered while determining penalties, including the nature of the violation, whether the violation has been repeated, and the balance of hardships involved.

An establishment seeking to challenge an adjudication order may file an appeal before the designated appellate authority within 30 days.

The rules further provide that unpaid penalties may be recovered through the Collector as arrears of land revenue.

The explicit inclusion of cooperative societies in the definition of “establishment” makes the notification particularly relevant to cooperatives operating in the silk sector. Such societies should take note of the adjudication procedures, penalty provisions and prescribed appeal timeline under the new framework.