The Warehousing Corporation Act has been incorporated on 19th December, 1962. This Act has been established for incorporation and regulation of Corporations for the purpose of warehousing of agricultural produce and such other commodity.
The Central Government by notification in the Official Gazette shall form a Central warehousing corporation in order to regulate the corporation in such a manner as prescribed under this Act. This Corporation is a Corporate Body having a common seal; perpetual succession and it can or be sued in its own name. It has the power to acquire or hold any property or dispose of the property or to contract. It has its head-office in New Delhi and its branch offices shall be as notified in the Official Gazette by the Central Government.
The Authorized Share Capital of the Central Warehousing Corporation shall not be more than Twenty Crores of face value of One Thousand each. In case of any shares that are to be issued shall be with the approval of the Central Government whenever it deems necessary by Order notified in the Official Gazette. The Central Government shall apportion the shares with the approval of the Houses of Parliament and release forty percent initially and then release sixty percent. This remaining sixty percent shall be subscribed in such a manner specified by the Central Government through the mentioned banks, Societies, financial institutions or any recognized associations and companies, etc.
The management and administration of the Central Warehousing Corporation shall be by the appointed Managing Directors and such other Board of Directors and shall be assisted by the Executive Committee exercising all the required duties that are segmented to them by the provisions of this Act. The Board of Directors shall posses’ business principles with regard to public interest. It is always guided by the instructions of the Central Government. In case of any doubt arises the decision of the Central Government shall be final. The Directors were elected from various banks, Societies, Associations, Financial Institutions, etc. They hold the Office until they are replaced in case of activities or a rule that prohibits him from holding office.
The Executive Committee shall have a Chairman and a Vice-Chairman who performs his delegated duties in pursuance to this Act. These Chairman, Directors, Members and officers of this Executive Committee shall be paid salaries and such other benefits as approved by the Central Government for the effective performance of their designated duties. The Board of Directors and such other Officers shall be removed or terminated as and when it is deemed necessary in pursuance to this Act. In case of any employees appointed shall be under the regulation of this Act for his duty, payment and termination, etc.
The Central Warehousing Corporation shall acquire, hold or build godowns at any places in India as it deems fit. They maintain warehouses for the storage of agricultural proceeds, seeds, fertilizers, agricultural implements, etc. They shall arrange facilities for transport of materials, to subscribe share capital of State warehousing Corporation, act as an agent to the Government for purchase, sale, storage, etc, of agricultural produce and such other materials as specified under this Act and such other functions as prescribed under the provisions of this Act.
The Annual General Meetings shall be held every financial year at the head office of its branch office within six months of the closing of the financial year. The General Meetings shall be conducted at any time by the Board of Directors inorder to resolve or perform any issues or activities by the Corporations. In case of annual general meetings they discuss about the financial stability by scrutinizing the account statements, annual reports and such other document particulars.
The Central Government with the prior appropriation from the Houses of Parliament shall grant fund to the Central Warehousing Corporations by way of loan, grants, or any such method of payment. The Corporation shall maintain two funds, one is Warehousing Funds for advancing loan to the State Government as it may deems fit to make them to subscribe share capital of State Warehousing Corporations for promoting the warehousing, storage of produce and such other materials, for meeting the expenses that shall arise while training, publicity, payment of salaries, etc, in relation to the administration of warehousing fund. Another fund is a Central Fund for meetings the administrative expenses of all nature as specified under this Act.
In case of any profit, it shall first clear all the debts, doubtful debts, depreciation, etc, and later the remaining profits shall issue dividends to the Share holders subject to the terms and conditions as specified in the provisions of this Act. All warehousing Corporations shall maintain statements of accounts and such other document particulars that are necessary to maintain inorder to make it subject to scrutiny for the effective functioning under this Act. All the statement of accounts shall be prepared and maintained by an Auditor-General and the Comptroller. This warehousing corporation shall submit the statements of accounts to the appropriate Government as and when required. This Act has been subsequently amended as per the requirement for the effective functioning under this Act to fulfill the intention of this Act.
by C.Srivenkatesh Prabhu.