FOOD CORPORATIONS ACT, 1964
(1) This Act may be called The Food Corporations Act, 1964.
(2) It extends to the whole of India 1 [***],
(3) It shall come into force on such date 2 as the Central Government may, by notification in the Official Gazette, appoint.
_________________________
1. The words "except the State of Jammu and Kashmir", omitted by Act 67 of 1972, w.e.f 15.12.1972.
2. The appointed date is 17.12.1964 vide Gazette of India dated 17.12.1964.
In this Act, unless the context otherwise requires, -
(a) "Corporation" means the Food Corporation of India established under section 3;
(b) "Food Corporation" means the Food Corporation of India established under section 3 or a State Food Corporation established under section 17;
1[(bb) "Foodstuffs" includes edible oilseeds and oils;]
(c) "prescribed" means prescribed by rules made under this Act;
(d) "schedule bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934;
(e) "State Food Corporation" means a State Food Corporation established under section 17;
(f) "yea
(1) With effect from such date 1 as the Central Government may, by notification in the Official Gazette, specify in this behalf, the Central Government shall establish for the purposes of this Act a Corporation known as the Food Corporation of India.
(2) The Corporation shall be body corporate with the name aforesaid having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue and be sued.
_______________________________
1. The Food Corporation was established w.e.f. 01.01.1965 vide Notification No. G.S.R. IK09, Gazette of India dated 17.12.1964.
(1) The head office of the Corporation shall be at Madras or at such other place 1 as the Central Government may, by notification in the Official Gazette, specify.
2 [(2) The Corporation may establish offices or agencies at other places in or outside India.
Provided that no such office or agency shall be established at any place outside India without the previous approval of the Central Government.]
_____________________
1. The head office of the Corporation has been shifted to New Delhi on and from 01.07.1967 vide Notification No. G.S.R. 958, Gazette of India dated 20.06.1967.
2. Substituted by Act 67 of 1972 w.e.f 15.12.1972.
(1) The original capital of the Corporation shall be such sum not exceeding one hundred crores of rupees as the Central Government may fix.
(2) The Central Government may from time to time increase the capital of the Corporation to such extent and in such manner as that Government may determine.
(3) Such capital may be provided by the Central Government from time to time after due appropriation made by Parliament by law for the purpose and subject to such terms and conditions as may be determined by that Government.
(1) The general superintendence, direction and management of the affairs and business of the Corporation shall vest in a board of directors which may exercise all such powers and do all such acts and things as may be exercised or done by the Corporation under this Act.
(2) The board of directors, in discharging its functions, shall act on business principles having regard to the interests of the producer and consumer and shall be guided by such instructions on questions of policy as may be given to it by the Central Government.
(3) If any doubt arises as to whether a question is or is not a question of policy, the decision of the Central Government thereon shall be final.
(1) The board of directors of the Corporation shall consist of the following, namely: --
(a) a chairman;
(b) three directors to represent respectively the Ministries of the Central Government dealing with-
(i) food,
(ii) finance, and
(iii) co-operation;
(c) the managing director of the Central Warehousing Corporation established under Section 3 of the Warehousing Corporations Act, 1962, ex officio;
(d) a managing director;
(e) six other directors.
(2) All the directors of the Corporation other than the director referred to in 'C
A person shall be disqualified for being appointed as and for being, a director of the Corporation--
(a) 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
(b) if he is of unsound mind and stands so declared by a competent Court; or
(c) if he is or has been convicted of any offence which in the opinion of the Central Government involves moral turpitude; or
(d) if he has been removed or dismissed from the service of the Government or a corporation owned or controlled by the Government; or
(e) except in the case of the Chairman or the managing director, if he is a salaried official of the Food Corporation of India or a Stat
(1) The Central Government may, at anytime, after consultation with the Corporation, remove the managing director from office after giving him a reasonable opportunity of showing cause against the proposed removal.
(2) The board of directors may remove any director from office who--
(a) is or has become subject to any of the disqualifications mentioned in section 8; or
(b) is absent without leave of the board of directors from more than three consecutive meetings thereof without cause sufficient, in the opinion of the board, to exonerate his absence.
(3) A director of the Corporation may resign his office by giving notice thereof in writing to the Central Government and on such resignation being accepted, he shall be deemed to have vacated his offic
(1) The board of directors of the Corporation shall meet at such times and places and shall observe such rules of procedure in regard to the 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 Chairman of the Board or, if for any reason he is unable to attend any meeting, any other director elected by the directors present at the meeting, shall preside at the meeting.
(3) All questions which come up before any meeting of the board shall be decided by a majority of the votes of the directors present and voting, and, in the event of an equality of votes, the Chairman, or in his absence, the person presiding, shall have and exercise a second or casting vote.
(1) The Central Government may. in consultation with the Corporation, by notification in the Official Gazette, constitute one or more Advisory Committees consisting of such persons and on such terms and conditions as may be prescribed.
(2) It shall be the duty of any such Advisory Committee to advise the Central Government or the Corporation in regard to any matter connected with the purposes of this Act in respect of which its advice is sought by the Central Government, or, as the case may be, by the Corporation.
(3) The expenses in relation to the Advisory Committees shall be met by the Corporation.
(1) The Central Government shall after consultation with the Corporation, appoint a person to be the Secretary of the Corporation.
(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 Junctions.
(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 the Secretary, be such as may be prescribed;
(b) as respects the other officers and employees, be such as may be determined by regulations made by the Corporation under this Act.
1 [12A. Special provisions for transfer of Government employees to the Corporation in certain cases
(1) Where the Central Government has ceased or ceases to perform any functions which under section 13 are functions of the Corporation, it shall be lawful for the Central Government to transfer, by order and with effect from such date or dates (which, maybe either retrospective to any date not earlier than the 1st January, 1965, or prospective) as may be specified in the order, to the Corporation any of the officers or employees serving in the Department of the Central Government dealing with food or any of its subordinate or attached offices and engaged in the performance of those functions:
Provided that no order under this sub-section shall be made in relation to any officer or employee in such Department or office who has, in respect o
(1) Subject to the provisions of this Act, it shall be the primary duty of the Corporation to undertake the purchase, storage, movement, transport distribution and sale of food grains and other foodstuffs.
(2) Subject as aforesaid, the Corporation may also, with the previous approval of the Central Government, -
(a) promote by such means as it thinks fit the production of food grains and other foodstuffs;
(b) set up, or assist in the setting up of, rice mills,flour-mills and other undertakings for the processing of food grains and other foodstuffs, and
(c) discharge such other functions as may be prescribed or as are supplemental, incidental or consequential o any of the functions conferred on it under this Act.
(1) The board of directors of the Corporation may constitute an Executive Committee which shall consist of-
(a) the Chairman of the Board;
(b) the Managing director; and
(c) three other directors, of whom one shall be a non-official.
(2) The Chairman of the Board of Directors shall be the Chairman of the Executive Committee.
(3) Subject to the general control, direction and superintendence of the board of directors, the, the Executive Committee shall be competent to deal with any matter within the competence of the Corporation.
(4) The board of directors may constitute such other committees, whether consisting wholly of directors or wholly of other persons or p
A member of the Board of directors of the Corporation or a committee thereof who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the board of directors or committee thereof, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature, of his interest at such meeting and the disclosure shall be recorded in the minutes of the board or the committee, as the case may be, and recorded in the minutes of the board or the committee, as the case may be, and the member shall not take any part in any deliberation or decision of the board or committee with respect to that matter.
(1) The Central Government may, on a request received in this behalf from the State Government or Governments concerned or otherwise, by notification in the Official Gazette, establish a Board of Management for a State" or two or more contiguous States, if no State Food Corporation is functioning in such State or States.
(2) The head office of the Board of Management shall be at such place as the Central Government may, by notification in the Official Gazette, specify,
(3) The Board of Management shall consist of-
(a) a Chairman to be appointed by the Board of directors of the Food Corporation of India;
(b) the senior most executive officer of the said Corporation employed at the head office of the Board of Management; and
(1) The Central Government may, by notification in the Official Gazette and after consultation with the Government of a State, establish a Food Corporation for that State under such name as may be specified in the notification.
(2) A State Food Corporation established under sub-section (1) shall be a body corporate by the name notified under that sub-section, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by the said name sue and be sued.
(3) The head office of a State Food Corporation shall be at such place within the State as may notified by the Central Government in the Official Gazette.
(4) Subject to the provisions of this Act a State Food Corporation may perform such of th
(1) The Capital of a State Food Corporation shall be such sum not exceeding ten crores of rupees as the Central Government may, after consultation with the Food Corporation of India, fix.
(2) The Central Government may, after such consultation, from time to time, increase the capital of the State Food Corporation to such extent and in such manner as that Government may determine.
(3) Such capital shall be provided-
(a) by the Central Government after due appropriation made by Parliament by law for the purpose, and
(b) by the Food Corporation of India, in such proportion and subject to such terms and conditions as may be determined by the Central Government.
(1) the general superintendence, direction and management of the affairs and business of a State Food Corporation shall vest in a board of directors which shall consist of a Chairman, a General Manager and not more than ten other members, all of whom shall be appointed by the Food Corporation of India after consultation with the Central Government and the State Government.
(2) The General Manager shall-
(a) exercise such powers and perform such duties as the board of directors may entrust or delegate to him; and
(b) receive such salary and allowances and be governed by such terms and conditions of service as the board of directors may, in consultation with the Food Corporation of India, fix.
(3) The board of directors, in discharging its functions,
A person shall be disqualified for being appointed as, and for being, a member of the board of directors of a State Food Corporation, -
(a) 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
(b) if he is of unsound mind and stands so declared by a competent court; or
(c) if he is or has been convicted of any offence which in the opinion of the Central Government involves moral turpitude; or
(d) if he has been removed or dismissed from the service of the Government or a Corporation owned or controlled by the Government; or
(e) except in the case of the chairman or the General Manager, if he is a salaried official of the Foo
(1) The Food Corporation of India may, at any time, after consultation with the State Food Corporation, remove the General Manager from office after giving him a reasonable opportunity of showing cause against the proposed removal.
(2) The board of directors of a State Food Corporation may remove from office any member of that board who-
(a) is or has become subject to any of the disqualifications mentioned in section 20, or
(b) is absent without leave of the board of directors from more than three consecutive meetings thereof without cause sufficient, in the opinion of the board, to exonerate his absence.
(3) a member of such board may resign his office by giving notice thereof in writing to the Food Corporation of India and on such resignation bei
(1) The board of directors of a State Food Corporation shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by that Corporation under this Act.
(2) The Chairman of the board of directors or, if for any reason he is unable to attend any meeting, any other member of the board elected by the members of the board present at the meeting, shall preside at the meeting.
(3) All questions which come up before any meeting of the board of directors shall be decided by a majority of the votes of the members present and voting, and in the event of an equality of votes, the chairman or in his absence, the person presiding shall have and exercise a second or casting vote.
(1) A State Food Corporation may appoint such officers and other employees as it considers necessary for the efficient performance of its functions.
(2) Every person employed by a State Food Corporation under this Act shall be subject to such conditions of service and shall be entitled to such remuneration as may be determined by regulations made by the Corporation under this Act.
(1) The board of directors of a State Food corporation may constitute an Executive Committee which shall consist of--
(a) the Chairman of the board of directors;
(b) the General Manager; and
(c) three other members of the board of directors, of whom one shall be a non-official.
(2) the Chairman of the Board of Directors shall be the Chairman of the Executive Committee.
(3) Subject to the general control, direction and superintendence of the board of directors, the Executive Committee shall be competent to deal with any matter within the competence of the State Food Corporation.
(4) The board of directors may constitute such other committees, whether consisting
A member of the board of directors of a State food Corporation or a committee thereof who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the board of directors or committee thereof, shall as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and the disclosure shall be recorded in the minutes of the board or the committee, as the case may be, and the member shall not take any part in any deliberation or decision of the board or the committee with respect to that matter.
(1) A Food Corporation shall, before the commencement of each year, prepare a statement of programme of its activities during the forthcoming year as well as a financial estimate in respect thereof.
(2) The statement prepared under sub-section (1) shall not less than three months before the commencement of each year, be submitted for approval-
(a) in the case of Food Corporation of India, to the Central Government;
(b) in the case of a State Food Corporation, to the Food Corporation of India.
(3) The statement and the financial estimate of a Food Corporation referred to in sub-section (1) may, with the approval of the Central Government, in the case of the Food Corporation of India, or with the approval of the Food Corporation of India in the case o
1[(1) A food corporation may, for the purpose of carrying out its functions under this Act. --
(a) take advances against stocks of food grains or other foodstuffs held by it, or borrow money--
(i) from any scheduled bank, or
(ii) from any other bank or financial institution approved by the Central Government in this behalf, or
(iii) from any other authority, organisation or institution or from the public on such terms and conditions as may be approved by the Central Government; or
(b) issue and sell bonds and debentures carrying interest at such rates as may be fixed by the Central Government at the time the bonds or debentures are issued:
2["Provided that the
A Food Corporation may lend or advance money to any person engaged in the production of food grains upon the security of food grains or such other security as may be prescribed, for any purpose connected with such production.
(1) A Food Corporation may enter into agreement with any grower of food crops for the purchase of food grains after the harvest of such crops and any such agreement may provide that any sum payable by the Corporation to the grower under such agreement shall be payable to any scheduled bank or other financing agency nominated by the grower in this behalf to such extent as may be specified in the agreement.
(2) The scheduled bank or other financing agency referred to in sub-section (1), may, on the basis of any agreement referred to in that sub-section, lend money to a grower of food crops who has entered into such agreement.
A Food Corporation may, upon such terms and conditions as it may think fit. guarantee any loan referred to in sub-section (2) of section 29, and also any other loan raised by a grower of food crops, which is repayable within a period not exceeding five years.
(1) A Food Corporation shall have its own fund and all receipts of the Corporation shall be credited thereto and all payments of the Corporation shall be met there from.
(2) Such fund shall be applied for meeting all administrative expenses of the Food Corporation and for carrying out the purposes of this Act.
A Food Corporation may invest its funds in the securities of the Central Government or any state government or in such other manner as may be prescribed.
(1) A Food Corporation shall establish a reserve fund to which shall be credited every year such portion of its annual net profits as that Corporation thinks fit.
(2) After making provision for such reserve fund and for bad and doubtful debts, depreciation in assets and all other matters which are usually provided for by companies registered and incorporated under the Companies Act, 1956, the balance of its annual net profits shall be paid--
(a) in the case of the Food Corporation of India, to the Central Government, and
(b) in the case of a State Food Corporation, to the Central Government and the Food Corporation of India in the same proportion as the capital provided by them.
1 [(1) A Food Corporation shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance-sheet in such form as may be prescribed by the Central Government in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of a Food Corporation shall be audited annually by the Comptroller and Auditor-General of India and any expenditure incurred by him in connection with such audit shall be payable by the Food Corporation to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any person appointed by him in connection with the audit of the accounts of a Food Corporation shall have the same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-Ge
(1) A food Corporation shall, as soon as possible after the end of each year, submit to the Central Government an annual report on the working and affairs of the Corporation.
(2) The Central Government shall, as soon as may be after the receipt of such report, cause such report and the audit report received under section 34 1 [together with any comments thereon or supplement thereto by the Comptroller and Auditor General of India] to be laid before both Houses of Parliament.
_______________________________
1. Inserted by Act 67 of 1972, w.e.f 15.12.1972.
(1) No act or proceeding of a Food Corporation or a committee thereof or a Board of Management shall be invalid by reason only of the existence of any vacancy in, or any defect in the constitution of the board of directors of the Food Corporation or such Committee or Board of Management.
(2) No act done by any person acting in good faith as a member of a board of directors of a Food Corporation or of a Board of Management shall be deemed to be invalid by reason only of his disqualification for being appointed as, or for being, a member of such board of directors or Board of Management.
A Food Corporation may, by general or special order in writing, delegate to the Chairman or any other member of the board of directors or the Secretary or other officer of the Corporation, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act as it may deem necessary.
Every director, member of an Advisory Committee or other committee, auditor, officer or other employee of a Food Corporation and every member of a Board of Management and its staff shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Schedule.
(1) Every member of the board of directors of a Food Corporation and of a Board of Management shall be indemnified by the Corporation against all losses and expenses incurred by him in the discharge of his duties except such as are caused by his own wilful act or default.
(2) A member of the board of directors of a Food Corporation or a Board of Management shall not be responsible for any other member or for any officer or other employee of the Corporation or Board of Management or for any loss or expense resulting to the Corporation from the insufficiency or deficiency of value of, or title to, any property or security acquired or taken on behalf of the Corporation in good faith, or by the insolvency or wrongful act of any person under obligation to the Corporation or by anything done in good faith, in the execution of the duties of his office or in relation thereto.
No suit or other legal proceeding shall lie against a Food Corporation or any member of the board of directors thereof or any officer or other employee thereof or any member of a Board of Management or its staff or any other person authorised by a Food Corporation or a Board of Management to discharge any functions under this Act for any loss or damage caused or likely to be caused by anything which is in good faith done or intended to be done in pursuance of this Act.
(1) Whoever, without the consent in writing of a Food Corporation, uses its name in any prospectus or advertisement, shall be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
(2) No Court shall take cognizance of any offence under sub-section (1) except on a complaint in writing by an officer authorised in this behalf by the Food Corporation concerned.
For the purposes of the Income-tax Act. 1961, or any other enactment for the time being in force relating to income-tax, super tax or any other tax on income, profits or gains, a Food Corporation shall be deemed to be a company within the meaning of Income-tax Act, 1961, and shall be liable to tax accordingly on its income, profits and gains.
No provision of law relating to the winding up of companies or corporations shall apply to a Food corporation and it shall not be placed in liquidation save by order of the Central Government and in such manner as that Government may direct.
(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 rule may provide for-
(a) the term of office of. and the manner of filling casual vacancies among, and the other terms and conditions of appointment of, the directors of the Corporation;
(b) the composition of Advisory Committees and the terms and conditions of service of members thereof;
(c) the additional functions which the Corporation may perform;
(d) the remuneration or fees payable to the members of the board of directors of a State Food Corporation and the term of office of, and the manner of filling casual va
(1) A Food Corporation may with the previous sanction of the Central Government, by notification in the Official Gazette, make regulations not inconsistent with this Act and the rules made there under, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
1[1A) The power to make regulations under this section shall include the power to give retrospective effect from a date not earlier than the date of commencement of this Act, to the regulations or any of them but no retrospective effect shall be given to any regulation so as to prejudicially affect the interests of any person to whom such regulation may be applicable.]
(2) Without prejudice to the generality of the foregoing power, such regulation may provide for--
&
No regulation made or purporting to have been made with retrospective effect, under section 45 before the commencement of the Food Corporations (Amendment) Act, 1982 shall be deemed to be invalid or ever to have been invalid merely on the ground that such regulation was made with retrospective effect and accordingly every such regulation and any action taken or thing done there under shall be as valid and effective as if the provisions of section 45-, as amended by the Food Corporations (Amendment) Act. 1982. were in force at all material times when such regulation was made or action or thing was taken or done.
SCHEDULE 1 THE SCHEDULE
(See Section 38)
Declaration of fidelity and Secrecy
I.--------------------------- declare that I will faithfully, truly and to the best of my judgment, skill and ability execute and perform the duties which are required of me as director. Member of ----------------Food Corporation of India committee, officer, employee or auditor (as the case may be of the ---------------- or as member Food Corporation of the Hoard of Food Corporation
Management at ----------------------- under the Food Corporation of India and which properly relate to the office or position in or in relation to that Corporation held by me.
I further declare that I will not communicate or allow to be communicated t
Elevate your legal practice with advanced AI-driven research and drafting solutions. Experience unmatched efficiency, precision, and security, tailored exclusively for legal professionals.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
AI Assistant
