NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION ACT 1962

THE NATIONAL CO-OPERATIVE DEVELOPMENTCORPORATION ACT, 1962

ACT No. 26 OF 1962

31st August, 1962

1 [An Act to provide for the incorporationand regulation of a corporation for the purpose of planning and promotingprogrammer for the production, processing, marketing, storage, export andimport of agricultural produce, foodstuffs and certain other commodities onco-operative principles and for matters connected therewith]

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1. Substituted for the original Long Titleby the National Co-operative Development Corporation (Amendment) Act, 1974 (3of 1974) Section 2. (w. e. f. 1-4-1974), which prior to substitution read asfollows, "An Act to provide for the incorporation and regulation of acorporation for the purpose of development of agricultural produce and certainother commodities on co-operative principles and for matters connectedtherewith".

BE it enacted Parliament in the ThirteenthYear of the Republicof India as follows: –

1.Short title extent and commencement: (1) This Act may be called theNational Co-operative Development Corporation Act, 1962.

(2) It extends to the whole of India 1[*].

(3) It shall come into force on such date 2as the Central Government may, by notification in the Official Gazette,appoint.

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1. The words "except the State of Jammu and Kashmir"omitted by the National Co-operative Development Corporation (Amendment) Act,1973 (32 of 1973) Section 2.

2. 14-3-1963 – Vide Notification No. G. S.R. 456, dated 14-3-1963,Gazette of India,Extraordinary, Part II, Section 3 (i), p.149.

2.Definitions: In the Act, unless the context otherwise requires –

(a) "agriculturalproduce" 1 [includes the following] classes of commodities, namely: –

(i) 2 [*]edibleoil-sees;

(ii) cattle fodder,including oil-cakes and other concentrates;

(iii) raw cotton,whether ginned or unginned and cotton seed;

(iv) raw jute; and

(v) vegetableoils;

3 [(aa)"bank" means a nationalised bank andincludes a scheduled bank;

(ab)"Board" means the Board of Management of the Corporation constitutedunder section 10;]

(b) "Central WarehousingCorporation" means the Central Warehousing Corporation established undersection 17 of the Agricultural Produce (Development and Warehousing)Corporation Act, 1956 (28 of 1956);

(c) "co-operative society" meansa society registered or deemed to be registered under the Co-operativeSocieties Act, 1912 (2 of 1912) or under any other law with respect toco-operative societies for the time being in force in any State, which isengaged in any of the activities specified in sub-section (1) of section 9 andincludes a co-operative land mortgage bank;

(d) "Corporation" means theNational Co-operative Development Corporation established under 4 [sub-section(1) of section 3];

5 [(da)"foodstuffs", include-

(i) coconuts andareca-nuts;

(ii) eggs and eggproducts;

(iii) fish,whether fresh, frozen, dried or preserved;

(iv) fruits,whether fresh, dried or dehydrated;

(v) honey;

(vi) meat, whetherfresh, frozen, dried or preserved;

(vii) milk andmilk products;

(viii) vegetables;

(db) "GeneralCouncil" means the General Council of the Corporation constituted undersub-section (4) of section 3;

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

(dd) "nationalised bank" means a corresponding new bank asdefined in the Banking Companies (Acquisition and Transfer of Undertakings)Act, 1970 (5 of 1970);]

(e) "notified commodity" meansany commodity (other than agricultural produce 6 [and foodstuffs]) which theCentral Government may, by notification in the Official Gazette, declare to bea notified commodity for the purposes of this Act, being a commodity withrespect to which Parliament has power to make laws by virtue of entry 33 inList III in the Seventh Schedule to the Constitution;

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

(g) "Reserve Bank" means ReserveBank of India constituted under the Reserve Bank of India Act, 1934 (2 of1934);

7 [(ga)"scheduled bank" means a bank for the tie being included in theSecond Schedule to the Reserve Bank of India Act, 1934 (2 of 1934);]

(h) "State Bank" means the StateBank of Indiaconstituted under the State Bank of India Act, 1955;

(i) "year"means the financial year.

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1. Substituted for the words "meansany of the following" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 3 (i) (1) (w. e. f. 1-4-1974).

2. The words "foodstuffs,including" omitted by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 3 (i) (2) (w. e. f. 1-4-1974).

3. Clauses (aa) and (ab) inserted bythe National Co-operative Development Corporation (Amendment) Act, 1974 (3 of1974) Section 3 (ii) (w. e. f. 1-4-1974) except Clause (ab)which is effective from 7-4-1975).

4. Substituted for the words "section(3)" by the National Co-operative Development Corporation (Amendment) Act,1974 (3 of 1974) Section 3 (iii) (w. e. f. 7-4-1975).

5. Clauses (da)to (dd) inserted by the National Co-operativeDevelopment Corporation (Amendment) Act, 1974 (3 of 1974) Section 3 (iv) (w. e. f. 1-4-1974) except Clause (db) which iseffective from 7-4-1975).

6. Inserted by the National Co-operativeDevelopment Corporation (Amendment) Act, 1974 (3 of 1974) Section 3 (v) (w. e.f. 1-4-1974).

7. Clause (ga)inserted by the National Co-operative Development Corporation (Amendment) Act,1974 (3 of 1974) Section 3 (vi) (w. e. f. 1-4-1974).

1 [2A.Construction of references to any lawnot in force or nay functionary no in existence in the State of Jammu andKashmir: Any reference in this Act to any law which is not in force, or anyfunctionary not in existence, in the State of Jammu and Kashmir, shall, inrelation to that State, be construed as a reference to the corresponding law inforce, or to the corresponding functionary in existence, in that State.]

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1. Section 2A inserted by the NationalCo-operative Development Corporation (Amendment) Act, 1973 (32 of 1973) Section3.

3.Establishment of the National Co-operative Development Corporation: (1) TheCentral Government shall, by notification in the Official Gazette, establishwith effect from such date as may be specified in the notification, aCorporation by the name of the National Co-operative Development Corporationwhich shall be a body corporate having perpetual succession and a common sealwith 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 Corporationshall be in New Delhi.

1 [(3) The Corporationshall carry on its functions through the General Council and the Board.

(4) The General Council shall consist ofthe following members, namely: –

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

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

(iii) Deputy Governor of the Reserve Bankin charge of rural credit, ex officio;

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

(v) Managing Director of the FoodCorporation of India,constituted under the food Corporations Act, 1964, (37 of 1964) ex officio;

(vi) Managing Director of the CentralWarehousing Corporation, constituted under the Warehousing Corporation Act,1962, (59 of 1962) ex officio;

(vii) Chairman of the Industrial FinanceCorporation of India, constituted under the Industrial Finance Corporation Act,1948, (15 of 1948) ex officio;

(viii) a memberrepresenting banks, to be nominated by the Central Government;

(ix) Chairman of the National Co-operativeUnion of India, ex officio;

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

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

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

(xiii) Chairman of the All India StateCo-operative Banks’ Federation, ex officio;

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

(xv) eleven members to be nominated by theCentral Government from among the Chairmen of the State level co-operativefederations from the States and Union territories, provided that no more thanone person shall be so nominated from each State or Union territory;

(xvi) four members representing personshaving special knowledge of, or practical experience in, agriculturalco-operative development, to be nominated by the Central Government;

(xvii) threemembers representing national level organisationsengaged or interested in the promotion and development of co-operative programmes, to be nominated by the Central Government;

(xviii) themanaging director.

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

(6) Notwithstanding the expiry of theprescribed term of his office, every member of the General Council shallcontinue to hold office as such, until his successor in such office has assumedcharge of such office.

(7) Members of the General Council, otherthan the managing director, shall be entitled to receive such sitting fees asmay be specified by regulations made by the Corporation under this Act, forattending any meeting of the General Council, Board or any committee of theCorporation:

Provided that no official member shall beentitled to receive any sitting fee.]

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1. Sub-sections (3) to (7) substituted forthe original Sub-section (3), (4) and (5) by the National Co-operativeDevelopment Corporation (Amendment) Act, 1974 (3 of 1974) Section 4 (w. e. f.7-4-1975).

4.Disqualification for being a member ofCorporation: 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 compoundedwith his creditors; or

(ii) if he is or has been convicted off anyoffence involving moral turpitude and sentenced in respect thereof toimprisonment for not less than six months, unless a period of five years haselapsed form the date of expiry of the sentence; or

(iii) 1 [except in the case of managingdirector,] if he is a salaried official of the Corporation.

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1. Inserted by the National Co-operativeDevelopment Corporation (Amendment) Act, 1974 (3 of 1974) Section 5 (w. e. f.1-4-1974).

5.Term of office of members of Corporation:(1) The term of office of members of the Corporation and the manner of fillingvacancies among members shall be such as ay be prescribed.

(2) Any member of the Corporation otherthan en ex-officio member may resign his office by giving notice in writing tothe Central Government and on such resignation being accepted, he shall bedeemed to have vacated his office.

6.Removal from office of member etc: TheCentral Government may, at any time, remove from office any member other thanan ex-officio member of the Corporation after giving him a reasonableopportunity of showing cause against the proposed removal.

7.Meetings etc, of Corporation: (1) TheCorporation 1 [shall ordinarily met twice a year at such times] and places andshall, subject to the provisions of sub-sections (2) and (3), observe suchprocedure in regard to transaction of business at its meetings (including thequorum at meetings) as may be provided by regulation made by the corporationunder the Act.

(2) The 2 [President] or, in his absence,the 3 [Vice-President] or, in the absence of both the 2 [President] and the 3[Vice-President], any member chosen by the members present from amongstthemselves, shall preside at a meeting of the Corporation.

(3) All questions at a meeting of theCorporation shall be decided by a majority of votes of the members present andvoting, and in the case of an equality of votes, the 2 [President] or, in hisabsence, the 3 [Vice-President] or, in the absence of both the 2[President] andthe 3 [Vice-President], the person presiding shall have and exercise a secondor casting vote.

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1. Substituted for the words "shallmeet at such times" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 6 (i) (w. e. f. 7-4-1975).

2. Substituted for the word"Chairman" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 6 (ii) (w. e. f. 7-4-1975).

3. Substituted for the word"Vice-Chairman" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 6 (ii) (w. e. f. 7-4-1975).

8.Officers and other employees ofCorporation: (1) The Central Government shall, in consultation with theCorporation, appoint a person to be the 1 [Managing Director].

(2) Subject to such rules as may be made bythe Central Government in this behalf the Corporation may appoint such otherofficers and employees as it considers necessary for the efficient performanceof its functions.

(3) The methods of appointment theconditions of service and the scales of pay of the officers and other employeesof the Corporations shall, –

(a) as respect the 2 [Managing Director],be such as may be prescribed; and

(b) as respects the other officers andemployees, be such as may be determined by regulations made by the Corporationunder this Act.

3 [(4) The managing director shall exercisesuch powers and perform such duties as the Board may entrust or delegate tohim.]

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1. Substituted for the words"Secretary of the Corporation" by the National Co-operativeDevelopment Corporation (Amendment) Act, 1974 (3 of 1974) Section 7 (i) (w. e.f. 1-4-1974).

2. Substituted for the word"Secretary" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 7 (ii) (w. e. f. 1-4-1974).

3. Sub-section (4) inserted by the NationalCo-operative Development Corporation (Amendment) Act, 1974 (3 of 1974) Section7 (iii) (w. e. f. 7-4-1975).

9.Functions of Corporation: 1 [(1) Subjectto the provisions of this Act, the functions of the Corporation shall be toplan and promote programmes, through co-operativesocieties, for-

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

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

(2) In particular and without prejudice tothe generality of the forgoing provisions, the Corporation may –

(a) advance loans or grant subsidies toState Government for financing co-operative societies and for employment ofstaff for implementing programmes of co-operativedevelopment;

(b) provide funds of State Government forfinancing co-operative societies for the purchase of 2 [agricultural produce,foodstuffs] and notified commodities on behalf of the Central Government;

(c) plan and promote programmesthrough co-operative societies for the supply of seeds, manures, fertilizers,agricultural implements and other articles for the development of agriculturalproduce.

3 [(d) provide loans and grants directly tothe national level co-operative societies and other co-operative societieshaving objects extending beyond one State;

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

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

(3) The Corporation shall so exercise itsfunctions under this section as not to interfere with the activities of theKhaki and village Industries Commission established under the Khadi and Village Industries Commission Act, 1956 (61 of1956).

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1. Substituted for the original Sub-section(1) by the National Co-operative Development Corporation (Amendment) Act, 1974(3 of 1974) Section 8 (i) (w. e. f. 1-4-1974).

2. Substituted for the words"agricultural produce" by the National Co-operative DevelopmentCorporation (Amendment) Act, 1974 (3 of 1974) Section 8 (ii) (a) (w. e. f.1-4-1974).

3. Clause (d), (e) and (f) inserted by theNational Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974)Section 8 (ii) (b) (w. e. f. 1-4-1974).

1 [10.Board of Management of theCorporation: (1) There shall be a Board of Management of the Corporation whichshall consist of the following members, namely: –

(i) the Vice-President of the GeneralCouncil, 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 inclause (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, tobe nominated by the Central Government from among the members referred to inclauses (ix), (x), (xi), (xii) and (xiii) of sub-section (4) of section 3;

(v) two members of the General Council, tobe nominated by the Central Government from among the members referred to inclause (xiv) of sub-section (4) of section 3;

(vi) tow members of the General Council, tobe nominated by the Central Government from among the members referred to inclause (xv) of sub-section (4) of section 3;

(vii) one member of the General Council, tobe nominated by the Central Government from among the members referred to inclauses (xiv) and (xvii) of sub-section (4) of section 3;

(viii) the managing director.

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

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

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

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

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1. Substituted for the original Section 10by the National Co-operative Development Corporation (Amendment) Act, 1974 (3of 1974) Section 9 (w. e. f. 7-4-1975).

11.Other committees: The Corporation mayconstitute such other committees for general or special purposes as it deemsnecessary for the efficient performance of its functions under this Act.

12.Grants by the Central Government toCorporation: The Central Government shall, after due appropriation made byParliament by law in this behalf, pay to the Corporation –

(a) by way of grant each year, such sum ofmoney as is required by the Corporation for giving subsides to StateGovernments and for meeting its administrative expenses; 1 [*]

(b) by way of loan, such sum of money onsuch terms and conditions as the Central Government may determine 2[and].

3 [(c) such additional grants, if any, forthe purposes of this Act.]

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1. The word "and" omitted by theNational Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974)Section 10 (i) (w. e. f. 1-4-1974).

2. The word "and" inserted by theNational Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974)Section 10 (ii) (w. e. f. 1-4-1974).

3. Clause (c) inserted by the NationalCo-operative Development Corporation (Amendment) Act, 1974 (3 of 1974) Section10 (iii) (w. e. f. 1-4-1974).

1 [12A.Power of Corporation to borrowmoney: (1) The Corporation may, for the purposes of carrying out its functionunder this Act, and with the previous approval of, and subject to thedirections of the Central Government, borrow money from –

(a) the public by the issue or sale ofbonds or debentures, or both, carrying interest at such rates as may bespecified therein;

(b) any bank or other financialinstitution;

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

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

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1. Section 12A inserted by the NationalCo-operative Development Corporation (Amendment) Act, 1974 (3 of 1974) Section11 (w. e. f. 1-4-1974).

13.Corporation to maintain fund: (1) The Corporationshall 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 securitiestransferred to it under clause (a) of sub-section (2) of sections 24;

(b) the grants and other sums of money byway of loans paid to the Corporation by the Central Government under section24;

1 [(ba) allmoneys borrowed under section 12A;]

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

(d) such sums of money as may, from time totime, be realised out of repayment of loans made fromthe Fund or from interest on loans or dividends 2 [or other realisations]on investments made from the Fund.

(2) The moneys in the Fund shall be appliedfor –

(a) advancing loans and granting subsidiesto State Government on such terms and conditions as the Corporation may deemfit for the purposes of enabling State Government to subscribe to the sharecapital of co-operative societies or for otherwise financing co-operativesocieties;

(b) meeting the pay and allowances of the 3[Managing Director, the officers] and other employees of the Corporations andother administrative expenses of the Corporation; and

(c) carrying out the purposes of this Act.

(3) All moneys in the Fund shall bedeposited in the Reserve Bank or the 4 [State Bank or a nationalisedbank].

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1. Clause (ba)inserted by the National Co-operative Development Corporation (Amendment) Act,1974 (3 of 1974) Section 12 (i) (a) (w. e. f. 1-4-1974).

2. Inserted by the National Co-operativeDevelopment Corporation (Amendment) Act, 1974 (3 of 1974) Section 12 (i) (b)(w. e. f. 1-4-1974).

3. Substituted for the words"officers" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 12 (ii) (w. e. f. 1-4-1974).

4. Substituted for the words "StateBank" by the National Co-operative Development Corporation (Amendment)Act, 1974 (3 of 1974) Section 12 (iii) (w. e. f. 1-4-1974).

14.Returns and reports: (1) The Corporationshall furnish to the Central Government at such times and in such form andmanner as may be prescribed or as the Central Government may direct, suchreturns and statements and such particulars in regard to the discharge of itsfunctions under this Act as the Central Government may, from time to time,require.

(2) Without prejudice to the provisions ofsub-section (1), the Corporation shall, as soon as possible, after the end ofeach year, submit to the Central Government a report in such from and mannerand before such date as may be prescribed giving a true and full account of itsactivities policy and programme during the previous year.

(3) A copy of the report received undersub-section (2) shall be laid before both Houses of parliament.

15.Directions by Central Government: In allmatters, including matters of policy the Corporation shall be guided by suchdirections as may be given to it by the Central Government.

16.Submission of programme of activitiesand financial estimates: (1) The Corporation shall prepare before thecommencement of each year a statement of programme of its activities during theforthcoming year as well as 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, besubmitted to the Central Government for approval.

17.Accounts of Board and audit: (1) TheCorporation shall maintain proper accounts and other relevant records andprepare an annual statement of accounts in such form as may be prescribed inconsultation with the Comptroller and Auditor-General of India.

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

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

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

18.Vacancies etc Not to invalidate acts andproceedings of the Corporation: No act or proceeding of 1 [the General Council,the Board or any of the committees of the Corporation] shall be invalid byreason only of the existence of any vacancy among its members or any defect inthe constitution thereof.

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1. Substituted for the words "theCorporation" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 13 (w. e. f. 7-4-1975).

19.Delegation: The Corporation may, bygeneral or special order in writing, delegate to the 1 [President or theVice-President] or any other member or any officer of the Corporation subjectto such conditions and limitations, if any, as may be specified in the ordersuch of its powers and functions under this Act as it may deem necessary.

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1. Substituted for the words "Chairmanthe Vice-Chairman" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 14 (w. e. f. 7-4-1975).

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 fidelity and secrecy in theform set out in the Schedule.

21.Dissolution of Corporation: (1) TheCentral Government if it is of opinion that the Corporation has failed to carryout its functions under this Act or that for any other reason it is notnecessary to continue the corporation, may, by notification in the OfficialGazette, dissolve the Corporation from such date as may be specified in thenotification.

(2) When the Corporation is dissolved undersub-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 Corporationshall, as from the date of dissolution, be exercised and performed by theCentral Government or such person or persons as the Central Government mayappoint in this behalf;

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

22.Power to make rules: (1) The CentralGovernment may, by notification in the Official Gazette, make rules to carryout the purposes of this Act.

(2) Without prejudice to the generality ofthe foregoing power, such rules may provide for-

(a) 1 [*]

(b) 1 [*]

(c) 1 [*]

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

(e) the methods of appointment, theconditions of service and the scale of pay of the 2 [Managing Director];

(f) **[*]

(g) the returns, statements and otherparticulars in regard to the discharged of its functions to be furnished by theCorporation to the Central Government;

(h) the form and the manner in which, andthe time within which, the Corporation shall furnish to the Central Governmentreturns, statements and other particulars with regard to the discharge of itsfunctions;

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

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

(3) Every rule made under this sectionshall be laid as soon as may be after it is made, before each House ofParliament while it is in session for a total period of thirty days which maybe comprised in one session 1 [or in two or more successive sessions, and if,before the expiry of the session immediately following the session or thesuccessive sessions aforesaid] both Houses agree in making any modification inthe rule or both Houses agree that the rule should not be made, the rule shallthereafter have effect only in such modified form or be so effect, as the casemay be; so however that any such modification or annulment shall be without prejudiceto the validity of anything previously done under that rule.

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1. Clauses (a), (b) and (c) omitted by theNational Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974)Section 15 (i) (w. e. f. 7-4-1975).

2. Substituted for the words"Secretary to the Corporation" by the National Co-operativeDevelopment Corporation (Amendment) Act, 1974 (3 of 1974) Section 15 (ii) (w.e. f. 1-4-1974).

3. Clause (f) omitted by the NationalCo-operative Development Corporation (Amendment) Act, 1974 (3 of 1974) Section15 (iii) (w. e. f. 7-4-1975).

1. Substituted for the words "or intwo successive session, and if, before the expiry of the session in which it solaid or the session immediately following" by the National Co-operativeDevelopment Corporation (Amendment) Act, 1973 (32 of 1973) Section 4.

23.Power of Corporation to makeregulations: (1) The Corporation may, with the previous sanction of the CentralGovernment by notification in the Official Gazette, make regulations notinconsistent with this Act and the rules made thereunderto provide for all matters for which provision is necessary or expedient forthe purpose of giving effect to the provisions of this Act.

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

(a) the manner in which meetings of 1 [theGeneral Council, the Board and other committees of the Corporation] shall beconvened, the fees for the attending such meeting and the procedure to be followedthereat;

(b) the methods of appointment, theconditions of service and the scales of pay of the officers (others than the2[Managing Director]) and other employees of the Corporation;

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

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

(3) The Central Government may, bynotification in the Official Gazette, rescind any regulation which it has sanctionedand thereupon the regulation shall cease to have effect.

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1. Substituted for the words "theCorporations, the Executive Committee and other committees thereof" by theNational Co-operative Development Corporation (Amendment) Act, 1974 (3 of 1974)Section 16 (i) (w. e. f. 7-4-1975).

2. Substituted for the word"Secretary" by the National Co-operative Development Corporation(Amendment) Act, 1974 (3 of 1974) Section 16 (ii) (w. e. f. 1-4-1974).

24.Repeal and saving: (1) With effect fromthe date on which the Corporation is established under section 3, theAgricultural Produce (Development and Warehousing) Corporation Act, 1956 (28 of1956), shall, in so far as it relates to the National Co-operative Developmentand Warehousing Board, stand repealed.

(2) Notwithstanding such repeal, –

(a) all moneys and other securitiesbelonging to the National Co-operative Development Fund which, immediatelybefore the said date, was maintained by the National Co-operative Developmentand Warehousing Board established under the repealed Act (hereinafter referredto as the said Board) shall stand transferred to, and be maintained by, theCorporation established under section 3 of this Act:

(b) all moneys and other securitiesbelonging to the National Warehousing Development Fund which, immediatelybefore the said date, was maintained by the said Board under the repealed Act,shall stand transferred to and be maintained by the Central WarehousingCorporation;

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

(d) anything done or any action taken (includingany loan advanced subsidy granted and appointment, delegation, rule orregulation made) under the repealed Act shall, in so far as it is notinconsistent with the provisions of this Act, be deemed to have been done ortaken under this Act; and

(e) all rights, liabilities and obligationsof the said Board, whether arising out of any contract or otherwise, shall bethe rights, liabilities and obligations respectively of the Corporationestablished under section 3 of this Act.

THE SCHEDULE

(See section 20)

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 theduties which are required of me as a member officer, employee or auditor (asthe case may be) of the National Co-operative Development Corporation and whichproperly relate to the office or position in the said Corporation held by me.

I further declare that I will notcommunicate or allow to be communicated to any persons not legally entitledthereto any information relating to the affairs of the said Corporation norwill I allow any such persons to inspect or have access to any books ordocuments belonging to, or in possession of, the Corporation and relating tothe business of the Corporations.

Signature

Signature

Signature

Signed before me

Date