Step 1: Understanding the Concept
The Biological Diversity Act of India was passed in 2002 to meet the country's obligations under the Convention on Biological Diversity.
Step 2: Correct statements
It defines biological resources as plants, animals and microorganisms or their parts, genetic material and by-products. It also provides for documenting traditional knowledge about biological resources.
Step 3: The wrong statement
The Act specifically leaves out value added products and human genetic material. So the statement that they are included is incorrect.
Step 4: Conclusion
Option C is the incorrect statement.
Final Answer:
The statement that value added products and human genetic material are included is incorrect.
\[ \boxed{\text{(C) }\text{It includes value added products and human genetic material.}} \]