S.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.

S.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;
  &nb

S.2(a) 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).

S.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;
  

S.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

S.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.

S.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.

S.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

S.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 managin

S.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

S.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;
   &nb

S.10(a) 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.
&n

S.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.

S.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 De

S.12(a) Power of Corporation to borrow money

       1[12A. Power of Corporation to borrow money
       (1) The Corporation may, for the purposes of carrying out its functions under this Act, and with the previous approval of and subject to the directions of the Central Government, borrow money from-
       (a) the public by the issue or sale of bonds or debentures, or both, carrying interest at such rates as may be specified therein;
       (b) any bank or other financial institution;
       (c) any other authority, organisation or institution as may be specially approved by the Central Government in this behalf.
       (2) The Central Government may guarantee the repayment of the moneys borrowed by the corporation under clause (a) or clause (b) or clause (c) or sub-section (1) and the paym

S.12(b) Grants, donations, etc

       1[12B. Grants, donations, etc.
       (1) The Corporation may receive gifts, grants, donations or benefactions from Government or any other agency in or outside India.
       (2) The Corporation shall not receive any gifts, grants, donations or benefactions from a foreign government or, any other agency outside India except with the previous approval of the Central Government.]
       ________________________
       1. Inserted by The National Co-Operative Development Corporation (Amndt) Act, 2002 . w.e.f. 14.08.2002.

S.13 Corporation to maintain funds

       (1) Corporation shall 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 securities transferred to it under clause (a) of sub-section (2) of section 24;
       (b) the grants and other sums of money by way of loans paid to the Corporation by the Central Government under section 12;
       1[(ba) all monies borrowed under section 12A;]
       2[(bb) all moneys received under section 12B;
        (bbb) all moneys received for services rendered; ]
       (c) such additional grants, if any, as the Central Government may make to the Corporation for the purposes of this Act; and
  &n

S.14 Returns and reports

       (1) The Corporation shall furnish to the Central Government at such times and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to the discharge of its functions under this Act as the Central Government may, from time to time, require.
       (2) Without prejudice to the provisions of sub-section (1), the Corporation shall, as soon as possible, after the end of each year, submit to the Central Government a report, in such form and manner and before such date as may be prescribed, giving a true and full account of its activities, policy and pragramme during the previous year.
       (3) A copy of the report received under sub-section (2) shall be laid before both Houses of Parliament.

S.15 Directions by Central Government

In all matters including matters of policy, the Corporation shall be guided by such directions as may be given to it by the Central Government.

S.16 Submission of programme of activities and financial estimates

       (1) The Corporation shall prepare before the commencement of each year a statement of programme of its activities during the forthcoming year as well as a financial estimate in respect thereof.
       (2) A statement prepared under sub-section (1) shall, not later than three months before the commencement of each year, be submitted to the Central Government for approval.

S.17 Accounts of Board and audit

       (1) The Corporation shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribed in consultation with the Comptroller and Auditor-General of India.
       (2) The account of the Corporation shall be audited annually by the Comptroller and Auditor-General of India or any person authorised by him in this behalf and any expenditure incurred in connection with such audit shall be payable by the Corporation.
       (3) The Comptroller and Auditor-General of India and any person authorised by him in connection with the audit of the accounts of the Corporation shall have same rights, privileges and authority in connection with such audit as the Comptroller and Auditor-General has in connection with the audit of Government accounts and in particular, shall have the right to demand th

S.18 Vacancies, etc., not to invalidate acts and proceedings of the Corporation

       No act or proceedings of1[the General Council, the Board or any of the Committees of the Corporation] shall be invalid by reason only of the existence of any vacancy among its members or any defect in the constitution thereof.
       ________________________
       1. Substituted for the words "the Corporation" by the National Co-operative Development Corporation (Amdt.) Act, 1974, (3 of 1974).

S.19 Delegation

       The Corporation may, by general or special order in writing, delegate to the1[President or the Vice-President] or any other member or any officer of the Corporation subject to such conditions and limitations, if any, as may be specified in the order such of its powers and functions under this Act as it may deem necessary.
       ________________________
       1. Substituted for the words "Chairman or the Vice-Chairman" by the National Co-operative Development Corporation (Amdt.) Act, 1974 (3 of 1974).

S.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 of fidelity and secrecy in the form set out in the Schedule.

S.21 Dissolution of Corporation

       (1) The Central Government, if it is of opinion that the Corporation has failed to carry out its functions under this Act or that for any other reason it is not necessary to continue the Corporation, may, by notification in the Official Gazette, dissolve the Corporation from such date as may be specified in the notification.
       (2) When the Corporation is dissolved under sub-section (1),-
       (a) all members of the Corporation shall, from the date of dissolution, vacate their offices as such members;
       (b) all powers and duties of the Corporation shall, as from the date of dissolution, be exercised and performed by the Central Government or such person or persons as the Central Government may appoint in this behalf,
       (c) all moneys and other properties of

S.22 Power to make rules

       (1) The Central Government may, by notification in the Official Gazette, make rules to carry out the purposes of this Act.
       (2) Without prejudice to the generality of the foregoing power, such rules may provide for-1[* * * * *]
       (d) the term of office of members of the Corporation and the manner of filling vacancies among them;
       (e) the methods of appointment, the conditions of service and the scale of pay of the2[managing director];
       1[* * * * *]
       (g) the returns, statements and other particulars in regard to the discharge of its functions to be furnished by the Corporation to the Central Government.
       (h) the form and the manner in which, and the time within w

S.23 Power of Corporation to make regulations

       (1) The 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 thereunder, to provide for all matters for which provision is necessary or expedient for the purpose of giving effect to the provisions of this Act.
       (2) In particular, and without prejudice to the generality of the foregoing power, such regulations may provide for--
       (a) the manner in which meetings of1[the General Council, the Board and other committees of, the Corporation] shall be convened, the fees for attending such meetings and the procedure to be followed thereat;
       (b) the methods of appointment, the conditions of service and the scales of pay of the officers (other than the2[managing director]) and ot

S.24 Repeal and saving

       (1) With effect from the date on which the Corporation is established under section 3, the Agricultural Produce (Development and Warehousing) Corporations Act, 1956, shall, in so far as it relates to the National Co-operative Development and Warehousing Board, stand repealed.
       (2) Notwithstanding such repeal,-
       (a) all moneys and other securities belonging to the National Co-operative Development Fund which, immediately before the said date, was maintained by the National Cooperative Development and Warehousing Board established under the repealed Act (hereinafter referred to as the said Board), shall stand transferred to, and be maintained by, the Corporation established under section 3 of this Act;
       (b) all moneys and other securities belonging to the National Warehousing Development Fund wh

Sch.1 Schedule I

       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 the duties which are required of me as a member, officer, employee or auditor (as the case may be) of the National Cooperative Development Corporation and which properly relate to the office or position in the said Corporation held by me.
       I further declare that I will not communicate or allow to be communicated to any persons not legally entitled thereto any information relating to the affairs of the said Corporation nor will I allow any such persons to inspect or have access to any books or documents belonging to, or in the possession of, the Corporation