| THE NATIONAL COOPERATIVE
DEVELOPMENT CORPORATION ACT, 1962 (No. 26 of
1962) ****
(31st
August, 1962)
- 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,
foodstuffs and certain other commodities
on cooperative principles and for matters
connected therewith.
Be it enacted by
Parliament in the Thirteenth year of the Republic
of India as follows:-
- (1) This Act
may be called the National Cooperative
Development Corporation Act, 1962.
- It
extends to the whole of India.
- It
shall come into force on such date as the
Central Government may, by notification
in the Official Gazette, appoint.
It shall come
into force on such date as the Central Government
may, by notification in the Official Gazette,
appoint and different dates may be appointed for
different provisions of this Act.
2. In this Act,
unless the context otherwise requires:-
- "agricultural
produce" includes the following
classes of commodities, namely:-
- edible oil
seeds;
- Cattle
fodder, including oil cakes and other
concentrates;
- Raw cotton,
whether ginned or unginned and cotton
seed;
- Raw jute,
and
- Vegetable
oils.
(aa)
"bank" means a nationalized bank
and includes a scheduled bank;
(ab)
"Board" means the Board of
Management of the Corporation constituted
under section 10;
(b)
"Central Warehousing Corporation"
means the Central Warehousing Corporation
established under Section 17 of the
Agricultural Produce (Development and
Warehousing) Corporation Act, 1956.
(c)
"Cooperative society" means a society
registered or deemed to be registered under the
Cooperative Societies Act, 1912 or under any
other law with respect to cooperative societies
for the time being in force in any State, which
is engaged in any of the activities specified in
sub-section (1 of section 9 and includes a
cooperative land mortgage bank;
(d)
"Corporation" means the National
Cooperative Development Corporation established
under sub-section (1) of Section 3.
(da)
"foodstuffs", include
- coconuts and
arecanuts;
- eggs and egg
products;
- fish,
whether fresh, frozen, dried or
preserved;
- fruits,
whether fresh, dried or dehydrated;
- honey;
- meat,
whether fresh, frozen, dried or
preserved;
- milk and
milk products;
- vegetables;
(db)
"General Council" means the General
Council of the Corporation constituted under
sub-section 4 of Section 3;
(dc)
"Managing Director" means the managing
director of the Corporation;
(dd)
"Nationalised Bank" means a
corresponding new banks as defined in the Banking
Companies (Acquisition, and Transfer of
Undertakings) Act, 1970;
(e),
"Notified Commodity" means any
commodity (other than agricultural produce
and foodstuffs), which the Central Government
may, by notification in the Office 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;
(f)"Prescribed"
means prescribed by rules made under this
Act;
(g)"Reserve
Bank" means the Reserve Bank of India
constituted under the Reserve Bank of India
Act, 1934;
(ga)
"Scheduled Bank" means a bank for
the time being included in the second
schedule to the Reserve Bank of India Act,
1934;
(h)"State
Bank" means the State Bank of India
constituted under the State Bank of India
Act, 1955;
(i)‘Year
means the financial year.
2A. 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
State.
3.(1) The Central
Government shall, by notification in the official
Gazette, establish with effect from such date as
may be specified in the notification, a
Corporation by the name of the National
Cooperative 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.
(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;
(iii) Deputy
Governor of the Reserve Bank in-charge of
rural credit, ex-officio;
(iv) Managing
Director of the State Bank, ex-officio;
(v) Managing
Director of the Food Corporation of India,
constituted under Food Corporation act, 1964,
ex-officio;
(vi) Managing
Director of the Central Warehousing
Corporation, constituted under the
Warehousing Corporation Act, 1962,
ex-officio;
(vii)Chairman of
the Industrial Finance Corporation of India,
constituted under the Industrial Finance
Corporation Act, 1948, ex-officio;
(viii)A member
representing banks, to be nominated by the
Central Government;
(ix)Chairman of
the National Cooperative Union of India,
ex-officio;
(x)Chairman of
the National Agricultural Cooperative Marketing
Federation, ex-officio;
(xi)Chairman of
the National Federation of Cooperative Sugar
Factories, ex-officio;
(xii)Chairman of
the All India Federation of Cooperative Spinning
Mills, ex-officio;
(xiii)Chairman of
the All India State Cooperative Banks’
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
cooperative federations from the States and Union
territories, provided that not more than one
person shall be so nominated from each State or
Union Territory;
(xvi)four members
representing persons having special knowledge of,
or practical experience in agricultural
cooperative development, to be nominated by the
Central Government;
(xvii)three
members representing national level organizations
engaged or interested in the promotion and
development of cooperative programmes to be
nominated by the Central Government; and
(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
sittings 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 committees of the Corporation.
Provided that no
official member shall be entitled to receive any
sitting fee.
4. A
person shall be disqualified for being chosen
as and for being a member of the
Corporation:-
-
- if
he is, or at any time has been
adjudicated insolvent or has
suspended payment of his debt or
has compounded with his
creditors, or
- if
he is or has been convicted of
any offence involving moral
turpitude and sentenced in
respect thereof to imprisonment
for not less that six months,
unless a period of five years has
elapsed from the date of expiry
of the sentence; or
- except
in the case of managing director,
if he is a salaried official of
the Corporation.
5.(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.
6.The Central
Government may, at any time remove from office
any member other than an ex-officio member of the
Corporation after giving him a reasonable
opportunity of showing cause against the proposed
removal.
7.(1) The
Corporation, 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) The President
or in his absence the Vice-President or in the
absence of both the President and the
Vice-President, any member chosen by the
members/represent 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
the President or, in his absence, the
Vice-President or in the absence of both the
President and the Vice-President, the person
presiding shall have and exercise a second or
casting vote.
8.(1) The Central
Government shall, in consultation with the
Corporation, appoint a person to be the 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 condition of service and the
scales of pay of the officers and other employees
of the Corporation shall,
(a)as respects
the 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.
(4) The Managing
Director shall exercise such powers and perform
such duties as the Board may entrust or delegate
to him.
9. (1)Subject to
the provisions of this Act, the functions of the
Corporation shall be to plan and promote
programmes, through cooperative 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.
(2) In particular
and without prejudice to the generality of the
foregoing provision, the Corporation may
(a) advance loans
or grant subsidies to State Governments for
financing cooperative societies and for
employment of staff for implementing programmes
of cooperative development;
(b) provide funds
to State Governments for financing cooperative
societies for the purchase of agricultural
produce, foodstuffs and notified commodities on
behalf of the Central Government;
(c) plan and
promote programmes through cooperative societies
for the supply of seeds, manures, fertilizers,
agricultural implements and other articles for
the development of agricultural produce.
(d) provide loans
and grants directly to the national level
cooperative societies and other cooperative
societies having objects extended beyond one
State.
(e) provide loans
to cooperative societies on the guarantee of
State Governments or in the case of cooperative
societies in the Union Territories, on the
guarantee of Central Government;
(f) participate
in the share capital of the national level
cooperative societies and other cooperative
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 under the Khadi and
Village Industries Commission Act, 1956.
10. (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) of
Section 3;
(iii) the member
of the General Council referred to in clause
(iii) of Sub-Section (4) of Section 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) of Section 3;
(v) two members
of the General Council, to be nominated by the
Central Government from among the members
referred to in clause (xiv) of Sub-Section (4) of
Section 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) of
Section 3;
(vii) one member
of the General Council to be nominated by the
Central Government from among the members
referred to in clauses (xvi) of Sub-Section (4)
of Section 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 quoram 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.
11. The
Corporation may constitute such other committee
for general or special purposes as it deems
necessary for the efficient performance of its
functions under this Act.
12. 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.
(b) by way of
loan, such sum of money on such terms and
conditions as the Central Government may
determined; and
(c ) such
additional grants, if any, for the purposes of
this Act.
12A. (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 by sale of bonds or debentures, or
both, carrying interest at such rates as may be
specified therein;
(b) any bank or
other financial institutions;
(c ) any other
authority, organization 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) of sub-section
(1) and the payment of interest thereon and other
incidental charges.
13 (1) The
Corporation shall maintain a fund called the
National Cooperative 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 Sub-section (2) of Section 24;
(b) the grants
and other sums of money by way of loan paid to
the Corporation by the Central Government under
Section 12;
(ba) all moneys
borrowed under section 12A.
(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
moneys as may, from time to time, be realized out
of repayment of loans made from the fund or from
interest on loans or dividend or other
realization 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
may deem fit for the purposes of enabling State
Governments to subscribe to the share capital of
cooperative societies or for otherwise financing
cooperative societies;
(b) meeting the
pay and allowances of the Managing Director,
officers and other employees of the Corporation
and other administrative expenses of the
Corporation; and
(c ) carrying out
the purpose of this Act.
(3) All moneys in
the fund shall be deposited in the Reserve Bank
or the State Bank or a nationalized bank.
14. (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 the 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 programme during the previous year.
(3) A copy of the
report received under Sub-Section (2) shall be
laid before both Houses of Parliament.
15. 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.
16. (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.
17. (1) The
Corporation shall maintain proper account 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 authorized 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 authorized by him in connection with the
audit of the accounts of the Corporation shall
have the same rights, privilege and authority in
connection with such audit as the Comptroller and
Auditor – General has in connection with
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
authorsied 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.
18. No act or
proceedings of the General Council the Board or
any of the Committee 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.
19. The
Corporation may, be general or special order in
writing delegate to the 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, asit may deem necessary.
20. 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.
21. (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 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 office 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.
22. (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 -
(a)
(b)
(c )
(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;
(f)
(g) the returns,
statement 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; and
(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 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 both
Houses agree that the rule should not be made,
the rule shall there after 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.
23. (1) The
Corporation may, with the previous sanction of
the Central Government, by notification in the
official Gazette, make regulations not in –
consistent 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 of 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 there thereat;
(b) The methods
of appointment, the conditions of service and the
scales of pay of the officers (other than the
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 regulation under
this Act.
(3) The Central
Government may, by notification in the Official
Gazette, rescind any regulation which it has
sanctioned and there upon the regulation shall
cease to have effect.
24. (1) With
effect from the date on which the Corporation is
established under Section 3, the Agricultural
Produce (Development and Warehousing) Corporation
Act, 1956 shall, in so far as it relates to the
National Cooperative Development and Warehousing
Board, stand repealed:-
(2)
Notwithstanding such repeal :-
(a) all moneys
and other securities belonging to the National
Cooperative Development Fund which, immediately
before the said date, was maintained by the
National Cooperative 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
the 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
Warehousing Corporation;
(c ) all shares
in the capital of Central Warehousing Corporation
held by the said Board shall stand transferred to
the Central Government subject to the same
liabilities as the payment of unpaid cells 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
of 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.
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