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The National Co-operative Development Corporation Act, 1962

The National Co-operative Development Corporation Act came in to existence in the year, 1962 by notification of the Central Government in the Official Gazette. The Act was enacted for the purpose of incorporation and regulation of Corporation which in turn promotes the schemes of production, marketing and storage of agricultural products.

National Co-operative Development Corporation Act, 1962 consists of 24 Sections in brief and it extends to entire India excluding the State of Jammu and Kashmir. Under Section 2(a), the Act defines the term Agricultural Produce as the produce which includes edible and non-edible seeds, produce of forestry, poultry farming, horticulture and other allied activities and Act also defines notified commodity under Section 2 (d) (dd) as commodity other than agricultural produce and foodstuff comes under the category of notified commodity by notification of Central Government in the Official Gazette to which Parliament has power to make laws by virtue of Entry 33 on List III in the Seventh Schedule of Constitution.

Central Government by notification constituted the Corporation called as National Co-operative Development Corporation which has its head office at New Delhi, Corporation being a body has a perpetual succession and a common seal with power to hold, acquire and dispose the property. The Corporation has authority to sue and to be sued in his name and perform its functions through the General Council and Board. The General Council consists of certain members who include the President; Vice-President, Central Government has the authority to nominate the members who have efficient knowledge and skills to control over the matters of the Corporation. Term of members of the Corporation and their vacancies be prescribed under Section 5 of the Act, and member of the Corporation may resign it office by writing it to the Central Government, Central Government not only has the authority to accept or decline such designation which may be prescribed it has authority to remove the member from office by giving the member a reasonable opportunity of hearing as prescribed under Section 6 of the Act.

The Corporation as prescribed under Section 7 of the Act meets its members twice a year to discuss the objectives, plan and its execution. President who been the head of the Corporation preside the meeting in absence of President a Vice-President or any other member can hold the meeting, all questions of meeting at the Corporation be decided by the authority of votes. Corporation which constituted under Act has certain function to carry out by co-operative societies as laid in Section 9, function includes planning, promoting, implementing, financing programmes for the production, marketing, storage of agricultural  produce. Corporation provide funds and grant loans to the respective State Government for financing the co-operative societies to purchase agriculture produce, execute the plan and promote programmes for supply fertilizers, manures for development of agriculture produce. Board which constituted under Act has the Chairman as it head who be the Vice-President of General Council, Board as the competent authority deals all the matter affiliated to the Corporation,

To initiate functions and to promote policies , Corporation can constitute other committees under the Act as specified in Section 11 and Central Government by notification should grant pay to the Corporation to its administrative expenses and if Corporation insufficient with the pay of Central Government it can borrow money from the bank or any other institution to fulfill its obligation of granting subsidies, loans to the co-operatives. Every member, auditor officer or any other employee of the Corporation has the duty bound to make declaration of fidelity and secrecy before entering to perform its duty as member as specified in Section 20. Central Government under Section 22 of the Act has power to make rules to carry out the purposes regarding term, pay scale and appointment of members, and Corporation obliged by a duty bound to furnish the report to Central Government with regard to policies and programmes. Corporation which constituted under Act has power to make regulations with regard to the matters of appointment, Scale of pay of members, holding meeting to Board and General Council.

Act after enactment been further amended and expanded its financial base to assist different types of cooperatives which includes rural industrial cooperative sectors and notified basic services in rural areas like rural sanitation, rural agriculture development, rural irrigation, fertilizers pesticides. As Corporation been expanded in its financial level its grants loans to State Governments for financing cooperatives societies under different state. Corporation constituted under the Act acts as a beneficiary by meeting all the needs by granting subsidies, loans, pesticides, fertilizers which increases the agricultural and other produce. Corporation by fulfilling the needs gains the agricultural produce which in turn develops the field of agriculture in relation to social and economical development.

by Priyadarshini Chandrasekar