The National Dairy Development Board Act, 1987

The National Dairy Development Board Act was passed on November 15th 1987 to constitute a board by name National Dairy Development Board. Jha Committee appointed by the Central Committee has recommended the formation of a body corporate to perform the functions of diary institutions already existed. The National Dairy Development Board initially registered as a society under the Societies Act, 1860 merged with the Indian Diary Corporation, a company registered under Companies Act, 1956, and a new body corporate known as National Dairy Development Board declared as institution of national importance by the National Dairy Development Board Act, 1987. The National Dairy Development Board as a registered society was set up by the Indian Government under Act, 1987 to build the diary projects on co-operative lines and to look after the constitution of fund, provisions for accounts, audit etc. An Act enacted to declare the institution known as the National Dairy Development Board in the State of Gujarat which is of national importance and to carry out the functions performed by the Indian Diary Corporation. To retain the reputation so far maintained in India and other countries the name of the board as not changed to carry out the functions relates to milk, milk products and other commodities.

The National Dairy Development Board Act, 1987 comprised of 50 Sections in brief which laid for the proper function of the Board constituted under Act. The Board instituted at Anand in  the State of Gujarat  has its main objective to the make Board as of national importance as Specified in Section 2 of the Act. The Incorporation of National Dairy Development Board incorporated under Section 4 of Act has a perpetual succession and common seal to sue and be sued to dispose and hold the property. The National Dairy Development Board constituted under Act has its head office in the State of Gujarat and it may establish the other regional offices inside or outside India. On enactment of Act and constitution of National Dairy Development Board, all undertakings of Indian Diary Corporation transferred to Board and Corporation dissolved and rights, liabilities, properties and asset transferred to Board.

All matters relating to management of business, direction and control of National Dairy Development Board Act vests with the Board of Directors constituted under Act, Board of directors constituted under Section 8 has certain members with Chairman as it head to perform the functions laid. All the members of the Board including chairman and Directors been nominated by the Central Government who qualified in field of dairying, animal husbandry, rural administration and banking. Chairman as the head  person of the Board holds office for period as specified by the Central Government and other directors holds office for the period not extending the term of one year as specified under Act. All the members of Board shall meet at its head office by directions given by the Chairperson to discuss the business transaction, questions regarding implementation of new policies or programmes shall be decided by the majority of votes as specified in Section 10 (4).

The Board while performing its functions shall constitute management committees under Section 12 to assist the board, management committee should perform function only under the supervision and control of Board. Board has the power to appoint, terminate, suspend, and dismiss any person who comes within purview of National Dairy Development Board. The Board has wide powers and Functions to perform under Section 16 of the Act, it been the duty of the Board to lay plan and promote it for the development of diary and other allied industries which increases the co-operative strategy. Board lays many measures under Section 16 (2) to promote the development and to avoid irregularities under the Act which includes designing, planning, facilitating research techniques for the promotional activity and adopt measures for services for storage, transportation, processing, distribution of milk and milk products. Central Government to make improvement of Board grants loans under Section 24 which be utilized for the purpose of this Act and Board to exercise its functions and discharging its duties shall receive gifts, donations from Central Government or any other source inside or outside India.

Apart from loans and donations under Section 24 and 25, Board shall maintain a National Dairy Development Board fund under Section 26 all sums and grants be credited in the fund for proper functioning of Board. No person has the authority to initiate suit against Board or members of the Board as Board constituted only in good faith for the development of diary. Every member of the Board has the duty bound to make declaration of fidelity and secrecy before entering to perform its duty as member of Board as specified in Section 35. Income Tax Act, 1961 lays special exemption to National Dairy Development Board, as the Board constituted under Act not liable to pay tax and returns out of profits earned by the Board.

Board by notification in the Official Gazette of India has power to make regulations under Section 48 with regard to the matters of appointment, transaction of business, holding meeting to members of Board, payment of allowances. Every Scheme and regulation made under the Act must be laid before each House of Parliament and both houses of Parliament could make any modifications in the regulation as prescribed under the Act.

The National Dairy Development Board established to replace irregularities with empowerment by transforming dairying as a part of India’s rural development. Board began its operations by giving a better future to the millions of milk producers by making dairying as a loop between them. Board  acts as a helping hand of milk producers by achieving the  objectives laid by a programme called operation flood. Board not only promotes dairying it also promotes other commodity-based cooperatives and allied industries on nation-wide basis.

by Priyadarshini Chandrasekar