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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)
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