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NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION ACT

Ministry of Law and Justice

Act nº 26 of 1962


  • Schedules
  • Amending Acts
  • Act nº 26 of 1962

Preamble

THE NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION ACT, 1962

[Act No. 26 OF 1962]

[31st August, 1962]

PREAMBLE

1An 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, foodstuffs2[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 :-

1. Substituted for the long title by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974), Section 2 (1-4-1974).

2. Substituted for "and certain other commodities on co-operative principles and for matters connected therewith." by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002


Section 1. Short title, extent and commencement

(1) This Act may be called The National Co­operative Development Corporation Act, 1962.

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

(3) It shall come into force on such date2 the Central Government may, by notification in the Official Gazette, appoint.

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

2. The Act came into force on 14-3-1963.


Section 2. Definitions

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

1[(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 forestry;

(v) produce of poultry farming;

(vi) produce of pisciculture; and

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

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

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

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

4[(b) "Central Warehousing Corporation" means the Central Warehousing Corporation established under sub-section (1) of section 3 of the Warehousing Corporations Act, 1962;

(c) "co-operative society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912 or under the Multi-State Co-operative Societies Act, 1984 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 Development Bank, by whatever name called;]

(d) "Corporation" means the National Co-operative Development Corporation established under5[sub-section (1) of section 3;]

6[(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) of section 3;

3[(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

(dbb) "livestock" includes all animals to be raised for milk, meat, fleece, skin, wool and other by-products;1;]

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

7[(dd) "nationalised bank" means a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980;]]

(e) "notified commodity" means any commodity (other than agricultural produce8[and foodstuffs]) which the Central Government may, by notification in 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;

3[(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 under the Reserve Bank of India Act, 1934;

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

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

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

(i) "year" means the financial year.

1. Substituted by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002. Prior to substitution it read as under :

"(a) "agricultural produce" [includes the following] classes of commodities, namely :-

(i) [* * * * *] edible oil-seeds;

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

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

(iv) raw jute, and

(v) vegetable oils;"

2. Inserted by the National Co-operative Development (corporation (Amdt.) Act, 1974 (3 of 1974), Section 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.).

3. Inserted by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002.

4. Clause (b) and (c) substituted by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002. Prior to substitution it read as under:

"(b)"Central Warehousing Corporation" means the Central Warehousing Corporation established under section 17 of the Agricultural Produce (Development and Warehousing) Corporations Act, 1956;

(c) "co-operative society" means a society registered or deemed to be registered under the Co-operative Societies Act, 1912 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-section (1) of section 9 and includes a co-operative land mortgage bank;"

5. Substituted for the word and figure "section 3" by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974).

6 . Inserted by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974), Section 3(iv) [(da), (dc) and (dd) 1-4-1974).

7. Substituted by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002. Prior to substitution it read as under:

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

8. Inserted by the National Co-opertive Development Corporation (Amdt.) Act, 1974 (3 of 1974), Section 3 (v) (1-4-1974).

9. Inserted by the National Co-opertive Development Corporation (Amdt.) Act, 1974 (3 of 1974), Section 3 (vi) (1-4-1974).

10. Substituted by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002. Prior to substitution clause (h) read as under:

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


Section 2A. Construction of references to any law not in force or any functionary not in existence in the State of Jammu and Kashmir

1[2A. Construction of references to any law not in force or any functionary not in existence in the State of Jammu and Kashmir.-

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.]

1. Inserted by the National Co-operative Development Corporation (Amdt.) Act, 1973 (32 of 1973), Section 3 (21-8-1973).


Section 3. Establishment of the National Co-operative Development Corporation

(1) The Central Government shall, by notification in the Official Gazette, establish with effect from such date1as 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.

2[(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;

3[(iii) Chairman of the National Bank of Agriculture and Rural Development constituted under the National Bank for Agriculture and Rural Development Act, 1981, ex officio]

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

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

4[(vii) one member to be nominated by the Central Government from amongst the chairmen 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 persons having special knowledge of, or practical experience in, agricultural co-operative development to be nominated by the Central Government;

(xvii)5[four mamebers] 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.]

1. National Development Corporation was established on 14-3-1963.

2. Substituted for sub-sections (3), (4) and (5) by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974).

3. Clause (iii) and (iv) substituted by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002. Prior to substitution these read as under:

"(iii) Deputy Governor of the Reserve Bank, in charge of rural credit, ex officio.

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

4. Substituted by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002. Prior to substitution it read as under :

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

5. Substituted for "three months" by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002.


Section 4. 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)1[except in the case of managing director] if he is a salaried official of the Corporation.

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


Section 5. 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 6. 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 7. Meetings, etc., of Corporation

(1) The Corporation1[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) The2[President] or, in his absence, the2[Vice-President) or, in the absence of both the2[President] and the2[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, the2[President] or, in his absence, the2[Vice-President] or, in the absence of both the2[President] and the2[Vice-President], the person presiding shall have and exercise a second or casting vote.

1. Substituted for the words "shall meet at such times" by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974).

2. Substituted for the word "Chairman" and Vice-Chairman", by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974).


Section 8. Officers and other employees of Corporation

(1) The Central Government shall, in consultation with the Corporation, appoint a person to be the1[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 find other employees of the Corporation shall,-

(a) as respects the1[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.

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

1. Substituted for the words "Secretary of the Corporation" and the word "Secretary" by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974).

2. Inserted, by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974).


Section 9. Functions of Corporation

1 [(1)Subject to the provisions of this Act, the functions of the Corporation shall beto 2 [plan, promote and finance] programmes through co-operativesocieties, for-

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

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

3 [(c)development of notified service]

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

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

(b)provide funds to State Governments for financing co-operative societies for thepurchase of 4 [agricultural produce, foodstuffs] 5 [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 ofseeds, manures, fertilizers, agricultural implements and other articles for thedevelopment of agricultural produce.

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

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

3 [Providedthat no such guarantee shall be required in cases in which security to thesatisfaction of the Corporation is furnished by the borrowing co-operativesociety;]

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

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

1.Substituted by the NationalCo-operative Development Corportion (Amdt.) Act, 1974 (3of 1974), Section. 8 (1-4-1974).

2.Substitutedfor "plan and promote" by The National Co-Operative Development Corporation(Amndt) Act, 2002 . w.e.f. 14.08.2002.

3. Inserted by The NationalCo-Operative Development Corporation (Amndt) Act, 2002. w.e.f. 14.08.2002.

4.Substituted for the words"agricultural produce", by the National Co-operative DevelopmentCorportion (Amdt.) Act, 1974(3 of 1974), Section. 8(1-4-1974).

5.Substituted for "andnotified commodities" by The National Co-Operative DevelopmentCorporation (Amndt) Act, 2002 . w.e.f.14.08.2002.

6. Inserted, by the NationalCo-operative Development Corportion (Amdt.)Act, 1974 (3 of 1974), Section. 8 (1-4-1974).


Section 10. Board of Management of the Corporation

1 [10.Board of Management of the Corporation.-

(1)There shall be a Board of Management of the Corporation which shall consist ofthe 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 Governmentfrom among the members referred to in clause (ii) of sub-section (4) of section3;

(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 Governmentfrom 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 GeneralCouncil 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 GeneralCouncil, 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 Councilto be nominated by the Central Government from among the members referred to in clauses (xvi) and (xvii) 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 theGeneral Council, the Boardshall be competent to deal with anymatter within the competence of the Corporation.

(4)The Board shall meetat such times and at such places and shallobserve 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 Corporationunder this Act.

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

Priorto substitution, Section 10 was as under-

1.Substituted by the NationalCo-operative Development Corporation(Amdt.) Act, 1974 (3of 1974).


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 sub-section (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 Comittee 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;1[*]

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

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

1. Omitted by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974), Section 10 (1-4-1974).

2. Inserted, by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974), Section 10 (1-4-1974).