NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION ACT, 1962

26 of 1962

31st August, 1962

The National Co-operative Development and Warehousing Board and the Central Warehousing Corporation were set up as two inter-dependent bodies under the Agricultural Produce. (Development and Warehousing) Corporations Act. 1956. the former being in over-all charge of all aspects of development (including warehousing) of agricultural produce on co-operative principles. Both the bodies were under the administrative control of the Ministry of Food and Agriculture. Subsequently, there has been a re-allocation of business by which the administrative control of the National Co-Operative Development and Warehousing Board has been transferred to the Ministry of Community Development and co-operation while the administrative control of the Central Warehousing Corporation continues to be in the Ministry of Food and Agriculture. The two bodies are thus under the administrative control of two different Ministries. In the altered situation and in the interest of the better functioning of the two bodies and for administrative convenience, it is considered that the two bodies should function independently under separate enactments. The present Bill accordingly provides for the establishment of the National Co-operative Development Corporation in the place of the existing National Co-operative Development and Warehousing Board. The new Corporation will continue to perform more or less the same functions as the existing Board, but the Corporation shall cease to be a shareholder in the Central Warehousing Corporation and all shares held by the existing Board in the Central Warehousing Corporation and all liabilities as to the payment of unpaid calls on such shares shall stand transferred to the Central Government; the Warehousing Fund which is now administered by the Board will stand transferred to and he maintained by the Central Warehousing Corporation. Opportunity has been taken to incorporate some minor changes in the constitution of the Corporation and also to empower it to appoint Committees tor general or special purposes-S.O.R, -Gaz. of Ind,, 30-4-1962, Pt, II, S, 2, Ext.,. p.190. Amending Act 32 of 1973.- The National Co-operative Development Corporation was established in March, 1963, under the National Co-operative Development Corporation Act, 1962. The basic objective of this Corporation is to plan, promote and finance programmes for processing storage and marketing of agricultural produce and certain other commodities, on co-operative principles. The subject-matter of the Act is relatable to entry 43 in the Union List of the Seventh Schedule to the Constitution and Entry 33 in the Concurrent List of that Schedule. Since at the time of enactment of the National Co-operatve Development Corporation Act, 1962, Entry 33 of the Concurrent List did' not apply to the State of Jammu and Kashmir, the Act did not extend to that State. 2. Entry 33 of the Concurrent List has since been made applicable to the Slate of Jammu and Kashmir. For promoting a large programme of co-operative processing, storage and marketing, particularly of fruits and vegetables, in the State of Jammu and Kashmir, it would be advantageous to extend the National Co-operative Development Corporation Act, 1962. to that State. 3. The Bill seeks to achieve the above objective.- Gaz. of Ind., 16-4-1973, Pt. II, S. 2, Ext., p. 335. Amending Act 3 of 1974.- The National Co-operative Development Corporation was established in March, 1963 under the National Co-operative Development Corporation Act, 1962. The basic objective of this Corporation is lo plan, promote and finance programmes for processing, storage and marketing of agricultural produce and certain other notified commodities, on co-operative basis. 4. In pursuance of certain observations made by the Public Accounts Committee (Fourth Lok Shabha) in their 106th Report in regard to the need for the continuance ofthe National Co-operative Development Corporation and the de- officialisation ofthe co-operative movement, the Government of India had appointed an Expert Committee lo examine the working, objectives and future set up of the National Co-operative Development Corporation. The Committee assessed the performance ofthe National Co-operative Development Corporation and came to the conclusion that the Corporation had made significant contribution towards developing the potential of the programmes entrusted to it, which have recorded striking progress in recent years. The Committee accordingly not only recommended the continuance of the National Co-operative Development Corporation, but also the broad basing of its functios, activities and organisational set tip. The major recommendations of the Expert Committee are as follows : (i) The activities of the National Co-operative Development Corporation should be extended to co-operative dairy, poultry and fishery programmes, specially designed for assisting the vulnerable sections,of the community. The activities of the Corporation may also include helping the tribal people in the collection. processing and marketing of minor forest produce, through appropriate co-operatives, especially designed for them. (ii) Organisational set up of the National Co-operative Development Corporation should reflect the nature of its functions, the types of activities sponsored and the institutions and authorities it has to deal with. It should have a General Council with larger representation to States, including the State Governments and State level co-operative institutions and national level co-operative institutions, and laso a Board of Management in place of the existing Executive Committee. The Corporation will function through the General Council and the Board of Management. (iii) Apart from providing financial assistance to co-operative programmes through the State Governments, the National Co-operative Development Corporation should participate in the share capital of, and provide loans and grants to. the national and regional co-operative institutions. It may also provide finance and re- finance to other types of co-operative on the guarantee ofthe State Governments concerned, or, in the case of co-operatives in the Union territories on the guarantee ofthe State Government. (iv) The National Co-operative Development Corporation be enabled to borrow from the open market on Central Government's guarantee, if necessary, and also from other sources. The Bill seeks to amend the National Co-operative Development Corporation Act, 1962, for broad-basing the activities and the Constitution of the Corporation and also for diversifying the sources of its funds in the light of the recommendations ofthe Expert Committee-S.O.R. Gaz. of Ind., 3-12-1973, Pt. II, S. 2. Ext.. p. 998.

[THE] NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION ACT, 1962 (ACT 26 OF 1962)1[]

An Act to provide for the incorporation and regulation of a corporation for the purpose of planning and promoting programmes for the production, processing, marketing storage, export and import of agricultural produce, foodstuffs "industrial goods, livestock, certain other commodities and services on co-operative principles and for matters connected therewith or incidental thereto". Be it enacted by Parliament in the Thirteenth Year of the Republic of India as follow :-

SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT

(1) This Act may be called The National Co-operative Development Corporation Act, 1962.

(2) It extends to the whole of India1[* * * * *]

(3) It shall come into force on such date" as the Central Government may, by notification in the Official Gazette, appoint.

SECTION 02: DEFINITIONS

- In this Act, unless the context otherwise requires,-

3(a) "agricultural produce" includes the following :

(i) edible and non-edible oil seeds;

(ii) cattle feed, including oilcakes and other ingredients; (iii) produce of horticulture and animal husbandry; (iv) produce of foresty; (v) produce of poultry farming; (vi) produce of pisciculture; and

(vii) produce of other allied activities, whether or not undertaken jointly with agriculture

4[(aa) "bank" means a nationalised bank and includes a scheduled bank;

(ab) "Board" means the Board of Management of the Corporation constituted undersection 10-;]

5(aba) Central financing institution" means Industrial Development Bank of India established under sub-sec. (1) of Sec. 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964) or the Industrial Finance Corporation of India Limited, a company formed and registered under the Companies Act, 1956 (1 of 1956), or the Industrial Credit and Investment Corporation of India Limited, a Company formed and registered under the Indian Companies Act, 1913 (7 of 1913);

6(b) "Central Warehousing Corporation" means the Central Warehousing Corporation established under sub-aec. (I) of Sec. 3 of the Warehousing Corporations Act, 1962 (58 of 1962)

6(c) "co-operative society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912 (2 of 1912) or under the Multi-State Co-operative Societies Act, 1984 (51 of 1984) or under any other law with respect to co-operative societies for the time being in force in any State, which is engaged in any of the activities specified in sub-sec. (1) of Sec. 9 and includes a Co-operative Land Development Bank, by whatever name called

(d) "Corporation" means the National Co-operative Development Corporation established under7[sub-section ( 1 ) ofsection 3-:]

8[(da) "foodstuffs", include -

(i) coconuts and arecanuts:

(ii) eggs and egg products:

(iii) fish. whether fresh, frozen, dried or preserved; (iv) fruits, whether fresh, dried or dehydrated: (v) honey: (vi) meat, whether fresh, frozen, dried or preserved; (vii) milk and milk products: (viii) vegetables:

(db) "General Council" means the General council of the Corporation constituted under sub-section (4) ofsection 3-;

9(dba) "industrial goods" means the products of industrial co-operatives or cottage and village industries or products of allied industries in the rural area and includes any handicrafts or rural crafts;

9(dbb) "livestock" includes all animals to be raised for milk, meat, fleece, skin, wool and other by products.

(dc) "managing director" means the managing director of the Corporation;

10(dd) "nationalised bank" means a corresponding new bank constituted under Sec. 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) or under Sec. 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980).

(e) "notified commodity" means any commodity (other than agricultural produce11[and foodstuffs)) which the Central Government may, by notification12in the Official Gazette,declare to be a notified commodity for the purposes of this Act, being a commodity with respect to which Parliament has power to make laws by virtue of Entry 33 in List III in the Seventh Schedule to the Constitution:

13(ea) "notified services" means any service which the Central Government may, by notification in the Official Gazette, declare to be notified services for the purposes of this Act.

(f) "prescribed" means prescribed by rules made under this Act;

(g) "Reserve Bank" means the Reserve Bank of India constituted underthe Reserve Bank of India Act, 1934;

14[(ga) "scheduled bank" means a bank for the time being included in the Second Schedule tothe Reserve Bank of India Act, 1934;]

16(h) "State Bank" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955) or any of the subsidiary banks of the State Bank of India;

16(ha) "State Co-operative Bank" has the same meaning as in the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981)

(i) "year" means the financial year.

SECTION 02A: CONSTRUCTION OF REFERENCES TO ANY LAW NOT IN FORCE OR ANY FUNCTIONARY NOT IN EXISTENCE IN THE STATE OF JAMMU AND KASHMIR

15- Any reference in this Act to any law which is not in force,or any functionary not in existence, in the State of Jammu and Kashmir, shall, in relation to that State, be construed as a reference to the corresponding law in force, or to the corresponding functionary in existence, in that Slate.]

SECTION 03: ESTABLISHMENT OF THE NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION

(1) The (central Government shall, by notification In the Official Gazette, establish with effect from such date17a as may be specified in the notification, a Corporation by the name of the National Co-operative Development Corporation which shall be a body corporate having perpetual succession and a common seal with power to acquire, hold and dispose of property and to contract, and may, in the said name, sue and be sued.

(2) The head-office of the Corporation shall be in New Delhi.

18[(3) The Corporation shall carry on its functions through the General Council and the Board.

(4) The General Council shall consist of the following members, namely :- 

(i) a President and a Vice-President, both to be nominated by the Central Government;

(ii) eight members ex officio, to be nominated by the Central Government from such of its Ministries dealing with economic matters as it may think fit;

19(iii) Chairman of the National Bank of Agriculture and Rural Development constituted under the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981) ex-officio;

(iv) Managing Director of the State Bank, ex officio.

(v) Managing Director of the Food Corporation of India constituted underthe Food Corporations Act, 1964, ex officio;

(vi) Managing Director of the Central Warehousing Corporation, constituted underthe Warehousing Corporations Act, 1962, ex officio;

19(vii) one member to be nominated by the Central Government from amongst the chairman of one of the Central financing institutions, ex-officio;

(viii) a member representing banks, to be nominated by the Central Government:

(ix) Chairman of National Co-operative Union of India, ex officio;

(x) Chairman of the National Agricultural Co-operative Marketing Federation, ex officio;

(xi) Chairman of the National Federation of Co-operative Sugar Factories, ex officio;

(xii) Chairman of the All India Federation of Co-operative Shipping Mills, ex officio;

(xiii) Chairman of the All India State Co-operative Bank's Federation, ex officio;

(xiv) eleven members other than those nominated under clause (xv), representing the States and the Union territories, to be nominated by the Central Government, provided that not more than one person shall be so nominated from each State or Union territory;

(xv) eleven members to be nominated by the Central Government from among the Chairman of the State level co-operative federations from the State and Union territories, provided that not. more than one person shall be so nominated from each State or Union territory;

(xvi) four members representing person's having special knowledge of, or practical experience in, agricultural co-operative development to be nominated by the Central Government;

(xvii)20["four members"] representing national level organisations engaged or interested in the promotion and development of co-operative programmes, to be nominated by the Central Government;

(xviii) the managing director.

(5) The powers and functions of the Corporation shall be exercised or discharged, as the case may be, by the General Council, and references elsewhere in this Act to the Corporation shall, unless the context otherwise requires, be construed as references to the General Council.

(6) Notwithstanding the expiry of the prescribed term of his office every member of the General Council shall continue to hold office as such. until his successor in such office has assumed charge of such office.

(7) Members of the General Council other than the managing director, shall be entitled to receive such sitting fees as may be specified by regulations made by the Corporation under this Act, for attending any meeting of the General Council, Board or any committee of the Corporation: Provided that no official member shall be entitled to receive any sitting fee.]

SECTION 04: DISQUALIFICATIONS FOR BEING A MEMBER OF CORPORATION

- A person shall be disqualified for being chosen as, and for being, a member of the Corporation-

(i) if he is, or at any time has been adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors; or

(ii) if he is or has been convicted of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less than six months, unless a period of five years has elapsed from the date of expiry of the sentence; or

(iii)21[except in the case of managing director] if he is a salaried official of the Corporation.

SECTION 05: TERM OF OFFICE OF MEMBERS OF CORPORATION

(1) The term of office of members of the Corporation and the manner of filling vacancies among members shall be such as may be prescribed.

(2) Any member of the Corporation other than an ex officio member may resign his office by giving notice in writing to the Central Government and on such resignation being accepted, he shall be deemed to have vacated his office.

SECTION 06: REMOVAL FROM OFFICE OF MEMBER, ETC

The Central Government may at any time.remove from office any member other than an ex officio member of the Corportion after giving him a reasonable opportunity of showing cause against the proposed removal.

SECTION 07: MEETINGS, ETC., OF CORPORATION

(1) The Corporation22[shall ordinarily meet twice a year at such times] and places and shall, subject to the provisions of sub-sections (2) and (3). observe such procedure in regard to transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Corporation under this Act.

(2) The22b [President] or, in his absence, the22[Vice-President) or, in the absence of both the23[President] and the23[Vice-President], any member chosen by the members present from.amongst themselves, shall preside at a meeting of the Corporation.

(3) All questions at a meeting of the Corporation shall be decided by a majority of votes of the members present and voting, and in the case of  an equality of votes, the23 [President] or, in his absence, the23[Vice-President] or, in the absence of both the23 [President] and the23[Vice-President], the person presiding shall have and exercise a second or casting vote.

SECTION 08: OFFICERS AND OTHER EMPLOYEES OF CORPORATION

(1) The Central Government shall, in consultation with the Corporation, appoint a person to be the24[managing director].

(2) Subject to such rules as may be made by the Central Government in this behalf, the Corporation may appoint such other officers and employees as it considers necessary for the efficient performance of its functions.

(3) The methods of appointment, the conditions of service and the scales of pay of the officers And other employees of the Corporation shall,- 

(a) as respects the2a[managing director], be such as may be prescribed; and

(b) as respects the other officers and employees, be such as may be determined by regulations made by the Corporation under this Act.

25[(4) The managing director shall exercise such powers and perform such duties as the Board may entrust or delegate to him]

SECTION 09: FUNCTIONS OF CORPORATION

27[(1) Subject to the provisions of this Act, the functions of the Corporation shall be to26"plan, promote and finance" programmes through co-operative societies, for- 

(a) the production, processing, marketing, storage, export and import of agricultural produce, foodstuffs, poultry feed and notified commodities;

(b) the collection, processing, marketing, storage and export of minor forest produce.]

28(c) development of notified services.

(2) In particular and without prejudice to the generality of the foregoing provision, the Corporation may- 

(a) advance loans or grant subsidies to State Government for financing co-operative societies and for employment of staff for implementing programmes of co-operative development;'

(b) provide funds to State Governments for financing co-operative societies for the purchase of29[agricultural produce, foodstuffs]30["livestock, poultry feed, industrial goods, notified commodities and notified services"] on behalf of the Central Government;

(c) plan and promote programmes through co-operative societies for the supply

of seeds,manures, fertilizers, agricultural implements and other articles for the development of agricultural produce.

31[(d) provide loans and grants directly to the national level co-operative societies and other co-operative societies having objects extending beyond one State;

(e) provide loans to co-operative societies on the guarantee of State Governments or in the case of co-operative societies in the Union territories, on the guarantee of Central Government;  

32"Provided that no such guarantee shall be required in cases in which security to the satisfaction of the Corporation is furnished by the borrowing co-operative society."

(f) participate in the share capital of the national level co-operative societies and other co-operative societies having objects extending beyond one State.]

(3) The Corporation shall so exercise its functions under this section as not to interfere with the activities of the Khadi and Village Industries Commission established underthe Khadi and Village Industries Commission Act, 1956.

SECTION 10: BOARD OF MANAGEMENT OF THE CORPORATION

33(1) There shall be a Board of Management of the Corporation which shall consist of the following members, namely : 

(i) the Vice-President of the General Council, who shall be the Chairman;

(ii) three members of the General Council, to be nominated by the Central Government from among the members referred to in clause (ii) of sub-section (4) ofsection 3-;

(iii) the member of the General Council referred to in clause (iii) of subsection (4) ofsection 3-:

(iv) one member of the General Council, to be nominated by the Central Government from among the members referred to in clauses (ix), (x), (xi), (xii) and (xiii) of sub-section (4) ofsection 3-;

(v) two members of the General Council to be nominated by the CentralGovernment from among the members referred to in clause (xiv) of subsection (4) ofsection 3-;

(vi) two members of the General Council, to be nominated by the Central

Government from among the members referred to in clause (xv) of sub-section (4) ofsection 3-;

(vii) one member of the General Council to be nominated by the Central Government from among the members referred to in clauses (xvi) and (xvii) of sub-section (4) ofsection 3-;

(viii) the managing director.

(2) The Vice-Chairman of the Board shall be nominated by the Central Government.

(3) Subject to the general control, direction and superintendence of the General Council, the Board shall be competent to deal with any matter within the competence of the Corporation.

(4) The Board shall meet at such times and at such places and shall observe such procedure in regard to transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Corporation under this Act.

(5) The confirmed minutes of every meeting of the Board shall be laid before the General Council at its next following meeting.]

SECTION 10A: EXECUTIVE COMMITTEE OF CORPORATION

(1) There shall be an Executive Committee of the Corporation which shall consist of the following members, namely :- 

(a) the Vice-Chairman of the Corporation;

(b) three members nominated by the Central Government in such manner as may be prescribed, from among the members of the Corporation referred to in clause (i) of sub-section (3) of section 3-;

(c) the representative of the Reserve Bank nominated under clause (ii) of subsection (3) of section 3-;

(d) two members nominated by the Central Government from among the members of the Corporation referred to in clause (v) of sub-section (3) of section 3-.

(2)  (a) The Vice-Chairman of the Corporation shall be the Chairman of the Executive Committee.

(b) The Vice-Chairman of the Executive Committee shall be nominated in such manner as may be prescribed, from among the members referred to in clause (b) of sub-section (1). (3) Subject to the general control, direction and superintendence of the Corporation, the Executive Committee shall be competent to deal with any matter within the competence of the Corporation.

(4) The Executive Committee shall meet at such times and at such places and shall observe such procedure in regard to transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Corporation under this Act.

(5) The minutes of every meeting of the Executive Committee shall be laid before the Corporation at its next following meeting.

SECTION 11: OTHER COMMITTEES

The Corporation may constitute such other committees for general or special purposes as it deems necessary for the efficient performance of its functions under this Act.

SECTION 12: GRANTS BY THE CENTRAL GOVERNMENT TO CORPORATION

- The Central Government shall, after due appropriation made by Parliament by law in this behalf, pay to the Corporation-

(a) by way of grant each year, such sum of money as is required by the Corporation for giving subsidies to State Governments and for meeting

its administrative expenses;34[*]

(b) by way of loan, such sum of money on such terms and conditions as

the Central Government may determine;35[and]

35[(c) such additional grants, if any, for the purposes of this Act.]

SECTION 12A: POWER OF CORPORATION TO BORROW MONEY

36(1) The Corporation may, for the purposes of carrying out its functions under this Act, and with the previous approval of and subject to the directions of the Central Government, borrow money from- 

(a) the public by the issue or sale of bonds or debentures, or both, carrying interest at such rates as may be specified therein;

(b) any bank or other financial institution;

(c) any other authority, organisation or institution as may be specially approved by the Central Government in this behalf.

(2) The Central Government may guarantee the repayment of the moneys borrowed by the corporation under clause (a) or clause (b) or clause (c) or sub-section (1) and the payment of interest thereon and other incidental charges.]

SECTION 12B: GRANTS DONATIONS ETC.

37 (1) The Corporation may receive gifts, grants, donations or benefactions from Government or any other agency in or outside India.

(2) The Corporation shall not receive any gifts, grants, donations or benefactions from a foreign government or any other agency outside India except with the previous approval of the Central Government.

SECTION 13: CORPORATION TO MAINTAIN FUNDS

(1) Corporation shall maintain a fund called the National Co-operative Development Fund (hereinafter referred to as the Fund) to which shall be credited- 

(a) all moneys and other securities transferred to it under clause (a) of subsection (2) of section 24-;

(b) the grants and other sums of money by way of loans paid to the Corporation by the Central Government under section 12-;

38[(ba) all monies borrowed under section 12A-;]

39(bb) all moneys received under Sec. 12-B;

39(bbb) all moneys received for services rendered;

(c) such additional grants, if any, as the Central Government may make to the Corporation for the purposes of this Act; and

(d) such sums of money as may, from time to time, be realised out of repayment of loans made from the Fund or from interest on loans or dividends38[or other realisations] on investments made from the Fund.

(2) The moneys in the Fund shall be applied for- 

(a) advancing loans and granting subsidies to State Governments on such terms and conditions as the Corporation ma deem fit for the purpose of enabling State Governments to subscribe to the share capital of co-operative societies or for otherwise financing co-operative societies;

(b) meeting the pay and allowances of the38b [managing director, the officers] and other employees of the Corporation and other administrative expenses of the Corporation; and

(c) carrying out the purposes of this Act.

42(3) All moneys in the Fund shall be deposited in the Reserve Bank or the State Bank or a nationalised bank or a scheduled bank or a State Cooperative Bank.

SECTION 14: RETURNS AND REPORTS

(1) The Corporation shall furnish to the Central Government at such times and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to the discharge of its functions under this Act as the Central Government may, from time to time, require.

(2) Without prejudice to the provisions of sub-section (1), the Corporation shall, as soon as possible, after the end of each year, submit to the Central Government a report, in such form and manner and before such date as may be prescribed, giving a true and full account of its activities, policy and program during. the previous year.

(3) A copy of the report received under sub-section. (2) shall be laid before both Houses of Parliament.

SECTION 15: DIRECTIONS BY CENTRAL GOVERNMENT

In all matters including matters of policy, the Corporation shall be guided by such directions as may be given to it by the Central Government.

SECTION 16: SUBMISSION OF PROGRAMME OF ACTIVITIES AND FINANCIAL ESTIMATES

(1) The Corporation shall prepare before the commencement of each year a statement-of programme of its activities during the forthcoming year as well as a financial estimate in respect thereof.

(2) A statement prepared under sub-section (1) shall, not later than three months before the commencement of each year, be submitted to the Central Government for approval.

SECTION 17: ACCOUNTS OF BOARD AND AUDIT

(1) The Corporation shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India.

(2) The account of the Corporation shall be audited annually by the Comptroller and Auditor- .. General of India or any person authorised by him in this behalf and any expenditure incurred in connection with such audit shall be payable by the Corporation.

(3) The Comptroller and Auditor-General of India and any person authorised by him in connection with the audit of the accounts of the Corporation shall have same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect any office of the Corporation.

(4) The accounts of the Corporation certified by the Comptroller and Auditor-General of India or any other person authorised by him in this behalf together with an audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament.

SECTION 18: VACANCIES, ETC., NOT TO INVALIDATE ACTS AND PROCEEDINGS OF THE CORPORATION

No act or proceedings of43[the General Council, the Board or any of the Committees of the Corporation] shall be invalid by reason only of the existence of any vacancy among its members or any defect in the constitution thereof.

SECTION 19: DELEGATION

The Corporation may, by general or special order in writing, delegate to the44[President or the Vice-President] or any other member or any officer of the Corporation subject to such conditions and limitations, if any, as may be specified in the order such of its powers and functions under this Act as it may deem necessary.

SECTION 20: DECLARATION OF FIDELITY AND SECRECY

Every member, auditor, officer or other employee of the Corporation shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Schedule.

SECTION 21: DISSOLUTION OF CORPORATION

(1) The Central Government, if it is of opinion that the Corporation has failed to carry out its functions under this Act or that for any other reason it is not necessary to continue the Corporation, may, by notification in the Official Gazette, dissolve the Corporation from such date as may be specified in the notification.

(2) When the Corporation is dissolved under sub-section (1),-- 

(a) all members of the Corporation shall, from the date of dissolution, vacate their offices as such members;

(b) all powers and duties of the Corporation shall, as from the date of dissolution, be exercised and performed by the Central Government or such person or persons as the Central Government may appoint in this behalf.

(c) all moneys and other properties of the Corporation shall vest in the Central Government.

SECTION 22: POWER TO MAKE RULES

(1) The Central Government may, by notification in the Official Gazette, make rules' to carry out the purposes of this Act.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for-46[* * * *]

(d) the term of office of members of the Corporation and the manner of filling vacancies among them;

(e) the methods of appointment, the conditions of service and the scale of pay of the "[managing director];46[* * * * *]

(g) the returns, statements and other particulars in regard to the discharge of its functions to be furnished by the Corporation to the Central Government.

(h) the form and the manner in which, and the time within which, the Corporation shall furnish to the Central Government returns, statements and other particulars with regard to the discharge of its functions,

(i) the form and the manner in which, and the time within which, the Corporation shall furnish to the Central Government a report of its activities, policy and programme;

(j) any other matter which has to be, or may be, prescribed.

(3) Every rule made under this section shall be laid as soon as may be, after it is made. before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session48[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 both Houses agree that the rule should not be made, the rule 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.

SECTION 23: POWER OF CORPORATION TO MAKE REGULATIONS

( 1 ) The Corporation may, with the previous sanction of the Central Government, by notification in the Official Gazette, make regulations not inconsistent with this Act and the rules made there under, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.

(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for- 

(a) the manner in which meetings of49a [the General Council, the Board and other committees of the Corporation] shall be convened, the fees for attending such meetings and the procedure to be followed thereat;

(b) the methods of appointment, the conditions of service and the scales of pay of the officers (other than the49b [managing director]) and other employees of the Corporation;

(c) the duties and conduct of officers and other employees of the Corporation; and

(d) any other matter in respect of which the Corporation is empowered or required to make regulations under this Act.

(3) Any Central Government may, by notification in the Official Gazette, rescind any regulation which it has sanctioned and thereupon the regulation shall cease to have effect.'

SECTION 24: REPEAL AND SAVING

(1) With effect from the date on which the Corporation is established under section 3, the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, shall, in so far as it relates to the National Co-operative Development and Warehousing Board, stand repealed.

(2) Notwithstanding such repeal,- 

(a) all moneys and other securities belonging to the National Co-operative Development Fund which, immediately before the said date, was maintained by the National Co- operative Development and Warehousing Board established under the repealed Act (hereinafter referred to as the said Board), shall stand transferred to, and be maintained by, the Corporation established under section 3-of this Act;

(b) all moneys and other securities belonging to the National Warehousing Development Fund which, immediately before the said date, was maintained by the said Board under the repealed Act, shall stand transferred to and be maintained by the Central Ware housing Corporation;

(c) all shares in the capital of the Central Warehousing Corporation held by the said Board shall stand transferred to the Central Government subject to the same liabilities as to payment of unpaid calls on such shares as the said Board was subject to;

(d) anything done or any action taken (including any loan advanced, subsidy granted and appointment, delegation, rule or regulation made) under the repealed Act shall, in so far as it is not inconsistent with the provisions of this Act, be deemed to have been done or taken under this Act; and

(e) all rights, liabilities and obligations of the said Board, whether arising out of any contract or otherwise, shall be the rights, liabilities and obligations respectively of the Corporation established under Section 3-of this Act.

Footnotes:

1. Words "except the State of Jammu and Kashmir" omitted by the National Co-operative Development Corporation (Amendment) Act. 1973 (32 of 1973), S. 2 (21-8-1973).

3. In Section 2, clause (a) shall be substituted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) , Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

4. Inserted by the National Co-operative Development (corporation (Amendment) Act, 1974 (3 of 1974), S. 3 (ii) (1-4-1974) in so far as it relates to the definition of ''bank") (in so far as it relates to the definition of "Board". (enforcement date not yet received.)

5. In Section 2, clause (aba) shall be inserted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) , Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

6. In Section 2, clause (b)and (c) shall be substituted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) , Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

7. Substituted for the word and figure "section 3" by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 3 (iii) (enforcement date not yet received.)

8. Inserted by the National Co-operative Development Corporation (Amendment) Act. 1974 (3 of 1974), S. 3(iv) I (da), (dc) and (dd) 1-4-1974) (in so fur as it relates to the definition of "General Council" enforcement date not yet received).

9. In Section 2, clause (dba)and (dbb) shall be inserted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) , Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

10. In Section 2, clause (dd) shall be substituted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) , Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

11. Inserted by the National Co-opertive Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 3 (v) (1- 4-1974).

12. For such notifications..see G.S.R. 182, declaring (1) Soaps, (2) Match Boxes, (3) Kerosene Oil, (4) Textiles, (5) Cement. (6) Tea. as such commodities - Gaz. of India, 1967. Pt. II. S. 3 (i). p. 222; G. S. R. 1188. declaring Fertilisers, Agricultural Machinery, Insecticides, Fungicides. Earth Moving Machinery, Fermentation Industries, Paper Products, Paper and Pulp and Timber Products, etc.. Gaz. of India, 1967, Pt. II, S. 3 (i), p. 1288; G. S. R. 1620 declaring lac as such commodity, p. 1746 and G. S, R. 615 declaring 'rubber' as such commodity published in Gaz. ofindia. 1970. Pt. II. S. 3 (i). p. 1338.

13. In Section 2, clause (ea) shall be inserted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) , Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

14. Inserted by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 3 (vi) (1-4-1974).

15. Inserted by the National Co-operative Development Corporation (Amendment) Act, 1973 (32 of' 1973). S. 3 (21-8-1973).

16. In Section 2, clause (h) shall be substituted and clause (ha) shall be inserted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

17. National Development Corporation was established on 14-3-1963-See Gaz of India. 14-3-1963,Pt. II,S.3(i), Ext., p. 149.

18. Substituted for sub-sections (3), (4) and (5) by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974). S. 4 (enforcement date not yet received.)]

19. In Section 3, clause (iii) and (vii) shall be substituted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

20. In Section 3, clause (xvii) the words "three members" shall be substituted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

21. Inserted by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 5 (1-4-1974).

22. Substituted for the words "shall meet at such times" by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 6 (enforcement date not yet received).

23. Substituted for the word "Chairman" and Vice-Chairman", by the National Co-operative Development Corporation (Amendment) Act, 1974,

24. Substituted for the words "Secretary of the Corporation" and the word "Secretary" by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 7 (enforcement date not yet received.).

25. Inserted, by the National Co-operative Development Corporation (Amendment) Act, 1974.

26. In Section 9, sub-section (1) the words "plan and promote" shall be substituted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

27. Substituted by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 8 ( 1 - 4-1974).

28. In Section 9, sub-section (1) clause (c) shall be inserted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

29. Substituted for the words "agricultural produce", by the National Co-operative Development Corporation (Amendment) Act, 1974.

30. In Section 9, sub-section (2) clause (b) the words "and notified commodities" shall be substituted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

31. Inserted, by the National Co-operative Development Corporation (Amendment) Act, 1974.

32. In Section 9, sub-section (2), in clause (e) proviso shall be inserted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

33. Substituted by the National Co-operative Development Corporation (Amendment) Act. 1974 (3 of 1974), S. 9 (enforcement date not yet received).Prior to substitution, S. 10 was as under

34. Omitted by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of l974), S. 10 (1-4- 1974).

35. Inserted, by the National Co-operative Development Corporation (Amendment) Act, 1974.

36. Inserted by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 11(1- 4-1974).

37. Section 12B, shall be inserted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

38. Inserted by the National Co-operative Development Corporation (Amendment) Act, 1974(3.of 1974), 3. 39. Section 13, sub-section (1), caluse (bb) and (bbb) shall be inserted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

42. Section 13, sub-section (3), shall be substituted by National Co-operative Development Corporation (Amendment) Act, 2002. (45 of 2002) ,Gaz. of India, Exty., Pt. II-Sec. 1, No. SO, dt. 16.8.2002, p. 1.

44. Substituted for the words "Chairman or the Vice-Chairman" by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 14 (enforcement date not yet received).

46. Clauses (a), (b), (c) and (0 were omitted by the National Co-operative Development Corporation (Amendment) Act 1974(3 of 1974), S. 15 (enforcement date not yet received ). Prior to omission, clauses (u), (b), (c) and (f) were as under- "(a) the manner in which representatives of the Central Government shall be nominated under clause (i) of sub- section (3) of section 3; (b) the zonal basis on which non-officials may be recommended under sub-clause (c) of clause (v) of sub-section (3) of section 3; (c) the manner in which the Chairman and the Vice-Chairman of the Corporation shall be chosen; (f) the manner in which the members shall be nominated under clause (b) of sub-section ( 1 ) of section 10 and the manner in which the Vice-Chairman of the Executive Committee shall be nominated under clause (b) of sub- section (2) of that section;"

48. Substituted for certain words by the National Co-operative Development Corporation (Amendment) Act, 1973 (32 of 1973). S. 4 (21-8-1973).

49. Substituted for the words "the Corporation, the Executive Committee and other committees thereof" by the National Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974), S. 16(i) (enforcement date not yet received).

SCHEDULE 1 DECLARATION OF FIDELITY AND SECRECY

I.................. declare that I will faithfully, truly and to the best of my judgment, skill and ability execute and perform the duties which are required of me as a member, officer, employee or auditor (as the case may be) of the National Co- operative Development Corporation and which properly relate to the office or position in the said Corporation held by me. I further declare that I will not communicate or allow to be communicated to any persons not legally entitled thereto any information relating to the affairs of the said Corporation nor will I allow any such persons to inspect or have access to any books or documents belonging to, or in the possession of, the Corporation and relating to the business of the Corporation.

Signature Signed before me Signature Date

NATIONAL COOPERATIVE DEVELOPMENT CORPORATION RULES, 1975

STATEMENT OF OBJECTS AND REASONS

The National Co-operative Development and Warehousing Board and the Central Warehousing Corporation were set up as two interdependent bodies under the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, the former being in over-all charge of all aspects of development (including Warehousing) of agricultural produce on co-operative principles. Both the bodies were under the administrative control of the Ministry of Food and Agriculture. Subsequently, there has been a re-allocation of business by which the administrative control of the National Co-operative Development and Warehousing Board has been transferred to the Ministry of Community Development and Co-operation while the administrative control of the Central Warehousing Corporation continues to be in the Ministry of Food and Agriculture. The two bodies are thus under the administrative control of two different Ministries. In the altered situation and in the interest of the better functioning of the two bodies and for administrative convenience, it is considered that the two bodies should function independently under separate enactments. The present Bill accordingly provides for the establishment of the National Co-operative Development Corporation in the place of the existing National Co-operative Development and Warehousing Board. The new Corporation will continue to perform more or less the same functions as the existing Board, but the Corporation shall cease to be a shareholder in the Central Warehousing Corporation and all shares held by the existing Board in the Central Warehousing Corporation and all liabilities as to the payment of unpaid calls on such shares shall stand transferred to the Central Government ; the Warehousing Fund which is now administered by the Board will stand transferred to and be maintained by the Central Warehousing Corporation. Opportunity has been taken to incorporate some minor changes in the constitution of the Corporation and also to empower it to appoint Committees for general or special purposes. S.K. DEY NEW DELHI : The 16th April, 1962 MINISTRY OF INDUSTRY AND CIVIL SUPPLIES (Department of Civil Supplies and Cooperation) New Delhi, the 5th April, 1975

1G.S.R. 477.-In exercise of the powers conferred by Section 22 of the National Co-operative Development Corporation Act, 1962 (26 of 1962) and in super session of the National Co-operative Development Corporation Rules, 1963, the Central Government hereby makes the following rules, namely:-

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the National Co-operative Development Corporation Rules, 1975.

(2) They shall come into force on the 7th April, 1975.

RULE 2 DEFINITIONS

-In these rules, unless the context otherwise requires,-

(a) 'Act' means the National Co-operative Development Corporation Act, 1962 (26 of 1962)-;

(b) 'Board' means the Board of Management of the Corporation constituted under Section 10-of the Act :

(c) 'Corporation' means the National Co-operative Development Corporation established under sub-section (1) of Section 3-of the Act ;

(d) 'Form' means a form appended to these rules,

(e) 'General Council' means the General Council of the Corporation constituted under sub-section (4) of Section 3-of the Act :

(f) 'managing director' means the managing director of the Corporation ; (g) 'member' means a member of the General Council ; (h) 'President' means the President of the General Council ; 

(i) 'section' means a section of the Act.

RULE 3 PRESIDENT AND VICE PRESIDENT

(1) The President shall be the Minister incharge of the Ministry of the Central Government dealing with Co-operation.

2["(2) The Minister of State in the Ministry of the Central Government dealing with Cooperation or when he is not in position the Minister of State dealing with Animal Husbandry & Dairying or when he is also not in position the Secretary to the Government of India in the Department of Agriculture and Cooperation, to be nominated by the Central Government, shall be the Vice-President of the General Council.]

RULE 4 TERM OF OFFICE OF MEMBERS

-Every member nominated under clauses (viii), (xiv), (xv), (xvi) and (xvii) of sub-section (4) of Section 3-shall hold office for a period of three years from the date of his nomination.

RULE 5 FILLING IN CASUAL VACANCY OF A MEMBER

-A person nominated to fill the casual vacancy of a member shall hold office for so long as the member, whose place he fills would have been entitled to hold office, if the vacancy had not occurred.

RULE 6 REGISTER OF MEMBERS

(1) The Corporation shall maintain a register in which the name and address of each member shall be entered.

(2) If a member changes his address, he shall notify his new address to the Managing director and the managing director shall amend the relevant entry in the register accordingly.

RULE 7 .

RULE 8 A MEMBER ABSENTING HIMSELF FROM THREE CONSECUTIVE MEETINGS OF THE GENERAL COUNCIL

-A member nominated under clauses (viii), (xiv), (xv), (xvi) and (xvii) of sub-section (4) of Section 3-who, without the permission of the President, absents himself from three consecutive meetings of the General Council, may subject to the provisions of Section 6-, be removed from membership of the General Council by the Central Government.

RULE 9 MANAGING DIRECTOR

(1) The Managing Director shall draw such salary and allowances as the Central Government may deem fit to fix in each case.

(2) If the managing director is not an officer in the service of the Central Government- 

(i) his leave and leave allowances and travelling allowances shall be the same as those admissible to the class of officers to which the Central Government may declare him to correspond in status :

(ii) the other conditions of service shall be such as the Central Government may determine in each case.

(3) If the managing director is an officer in the service of the Government the Corporation shall make such contribution towards the leave allowances, pension, gratuity and provident fund as may be required, by the conditions of his service under the Government to be made by him or on his behalf.

(4) The Central Government may terminate the services of the managing director at any time without giving any reasons therefor by giving three months notice and the managing director may resign his office at any time by giving three months notice in writing to the Central Government.

RULE 10 FINANCIAL ADVISER OF THE CORPORATION

-The Corporation shall appoint, with the approval of the Central Government a Financial Adviser to advise the Corporation on all matters relating to income and expenditure.

RULE 11 VICE-CHAIRMAN OF THE BOARD

-The Vice-Chairman of the Board shall be the Secretary or the Special Secretary or the Additional Secretary as the case may be, for the time being in charge of the Department of the Central Government dealing with Co-operation.

RULE 12 RESIGNATION BY MEMBERS OF THE BOARD

-A member of the Board nominated under clauses (iv), (v), (vi) and (vii) of Section 10-, may resign his office as such member by writing under his hand addressed to the managing director and such resignation shall be effective from the date on which it is accepted by the Board or on the expiry of a period of one month from the date of its receipt by the managing director, whichever is earlier.

RULE 13 ANNUAL STATEMENT OF ACCOUNTS

-The books of the Corporation shall be balanced on the last working day of the month of March in each year and the annual statement of accounts shall be set out as in Forms 'A', 'B' and 'C'.

Notes.-Forms 'A"B"C', depict the statement of accounts for the year ended 31st March, statement showing the activity wise receipt of loans and grants from Central Govern mem during the year statement showing the activity-wise receipt of loans and grants from Central Government during the year, statement showing the activity-wise disbursement of loans and grants advanced/paid by National Cooperative Development Corporation

during the year, income and expenditure account for the year ending 31st March, and balance sheet as on 31st March, respectively.

RULE 14 RETURNS AND REPORTS

(a) The returns, statements and other particulars to be furnished by the Corporation under sub-section (1) of Section 14-in regard to the discharge of its functions under the Act shall be in Form 'D' and they shall be submitted every half year to the Central Government. 

Notes.-Form 'D' appended to these rules depicting Returns and Statement under Section 14 (1) of the Act.

(b) The report required to be submitted to the Government under subsection (2) ofSection 14-shall be made in Form "E" within nine months from the expiry of the period to which the report relates.