THE WAREHOUSING CORPORATIONS ACT, 1962 
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ARRANGEMENT OF SECTIONS 
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CHAPTER I 
PRELIMINARY  

SECTIONS 

  1.  Short title, extent and commencement. 
  2.  Definitions. 
2A. Construction of references to any law not in force or any functionary not in existence in any 

State. 

CHAPTER II 

THE CENTRAL WAREHOUSING CORPORATION 

3.  The Central Warehousing Corporation. 
4.  Share capital and shareholders. 
5.  Certain shares to be approved securities. 
6.  Management of Central Warehousing Corporation. 
7.  Directors. 
8.  Disqualification for office of director of the Central Warehousing Corporation. 
9.  Removal of directors from office. 
10.  Appointment of officers, etc., and their conditions of service. 
11.  Functions of Central Warehousing Corporation. 
12.  Executive Committee. 
13.  Meetings of the Corporation. 
14.   Grants and loans by the Central Government. 
15.  Corporation to maintain two funds. 
16.  Warehousing Fund. 
17.  General Fund. 

CHAPTER III 

STATE WAREHOUSING CORPORATIONS  

18.  State Warehousing Corporations. 
19.  Share capital and shareholders. 
20.  Management of a State Warehousing Corporation. 
21.  Disqualification for office of director of the Corporation. 
22.  Removal of directors from office. 
23.  Appointment of officers, etc., and their conditions of service. 
24.  Functions of the State Warehousing Corporation. 
25.   Executive Committee.  

CHAPTER IV 

FINANCE, ACCOUNTS AND AUDIT  

26.  Submission of programme of activities and financial estimates. 
27.  Borrowing powers of Warehousing Corporation. 
28.  Deposit account. 

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SECTIONS 

29.  Investment of funds. 
30.  Disposal of profits. 
31.  Accounts and audit of Warehousing Corporation. 
31A.  Returns and reports. 

CHAPTER V 
MISCELLANEOUS  

32.  Vacancies, etc., not to invalidate acts and proceedings of Warehousing Corporations. 
33.  Delegation. 
34.  Voting rights of shareholders. 
35.   Disputes between Central Warehousing Corporation and State Warehousing Corporation. 
36.  Declaration of fidelity and secrecy. 
37.  Indemnity of directors. 
38.  Offences. 
39.  Provisions relating to income-tax and super-tax. 
40.  Winding up of Warehousing Corporations. 
41.   Power to make rules. 
42.  Power of Warehousing Corporations to make regulations. 
43.  Repeal and savings. 

THE SCHEDULE.  

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THE WAREHOUSING CORPORATIONS ACT, 1962 

ACT NO. 58 OF 1962 

 An  Act  to  provide  for  the  incorporation  and  regulation  of  corporations  for  the  purpose  of 
warehousing  of  agricultural  produce  and  certain  other  commodities  and  for  matters 
connected therewith. 

BE it enacted by Parliament in the Thirteenth Year of the Republic of India as follows:― 

[19th December, 1962.] 

CHAPTER I 

PRELIMINARY 

1.  Short  title,  extent  and  commencement.―(1)  This  Act  may  be  called  the  Warehousing 

Corporations Act, 1962. 

(2) It extends to the whole of India 1* * *.  
(3) It shall come into force on such date2 as the Central Government may, by notification in the 

Official Gazette, appoint. 

2. Definitions.―In this Act, unless the context otherwise requires,― 

(a) “agricultural produce” means any of the following classes of commodities, namely:― 

(i) foodstuffs, including edible oil-seeds;  

(ii) cattle fodder, including oil-cakes and other concentrates;  

(iii) raw cotton, whether ginned or unginned, and cotton seed;  

(iv) raw jute; and  

(v) vegetable oils;  

(b) “appropriate Government” means in relation to the Central Warehousing Corporation, the 

Central Government, and in relation to a State Warehousing Corporation, the State Government; 

(c)  “Central  Warehousing  Corporation”  means  the  Central  Warehousing  Corporation 

established under section 3;  

(d) “co-operative society” means a society registered or deemed to be registered under the Co-
operative  Societies  Act,  1912  (2  of  1912),  or  under  any  other  law  with  respect  to  co-operative 
societies for the time being in force in any State, which is engaged in the processing, marketing, 
storage,  export  or  import  of  agricultural  produce  or  any  notified  commodity  or  in  insurance 
business and includes a co-operative land mortgage bank;  

3[(dd) “nationalised bank” means a corresponding new bank specified in the First Schedule to 
the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970); 4[or a 
corresponding new bank specified in the First Schedule to the Banking Companies (Acquisition 
and Transfer of Undertakings) Act, 1980 (40 of 1980).]  

1 The words “except the State of Jammu and Kashmir” omitted by Act 37 of 1989, s. 2 (w.e.f. 22-10-1989).  
2. 18th March, 1963; vide notification No. G.S.R. 463, dated 16th March, 1963, see Gazette of India, Extraordinary, Pt. II, 

sec. 3 (i).  

This  Act  shall,  in  its  application  to  the  States  specified  in  the  Schedule  to  Act  20  of  1965,  have  effect  as  if  in  
clause (e) of section 2 the words and figures "being a commodity with respect to which Parliament has power to make 
laws by virtue of entry 33 in List III in the Seventh Schedule to the Constitution" had been omitted: vide Act 20 of 1965, s. 
2 (w.e.f. 27-11-1965). 

3. Ins. by Act 42 of 1976, s. 2 (w.e.f. 24-3-1976). 
4. Added by Act 37 of 1989, s. 3 (w.e.f. 22-10-1989). 

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(e) “notified commodity” means any commodity (other than agricultural produce) which the 
Central  Government  may,  by  notification  in  the  Official  Gazette,  declare  to  be  a  notified 
commodity for the purposes of this Act, being a commodity with respect to which Parliament has 
power to make laws by virtue of entry 33 in List III in the Seventh Schedule to the Constitution; 

 (f) “prescribed” means prescribed by rules made under this Act;  

(g) “recognised association” means an association which is for the time being recognised by 
the Central Government under section 6 of the Forward Contracts (Regulation) Act, 1952 (74 of 
1952);  

(h) “Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of 

India Act, 1934 (2 of 1934);  

(i) “scheduled bank” means a bank for the time being included in the Second Schedule to the 

Reserve Bank of India Act, 1934 (2 of 1934) 1[, and includes a nationalised bank];  

(j) “State Bank” means the State Bank of India constituted under the State Bank of India Act, 

1955 (23 of 1955);  

(k)  “State  Warehousing  Corporation”  means  a  Warehousing  Corporation  for  a  State 

established or deemed to be established under this Act;  

(l) “Warehousing Corporation” means a Warehousing Corporation established or deemed to 

be established under this Act; and  

(m) “year” means the financial year. 

2[2A. Construction of references to any law not in force or any functionary not in existence 
in any State.― Any reference in this Act to any law which is not in force, or any functionary not in 
existence, in any State, shall, in relation to that State, be construed as a reference to the corresponding 
law in force, or the corresponding functionary in existence, in that State.] 

CHAPTER II 

THE CENTRAL WAREHOUSING CORPORATION 

3.  The  Central  Warehousing  Corporation.―(1)  With  effect  from  such  date  as  the  Central 
Government  may,  by  notification  in  the  Official  Gazette,  specify  in  this  behalf,  the  Central 
Government shall establish a Corporation by the name of the Central Warehousing 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, by the said name, sue and be sued.  

(2) The head-office of the Central Warehousing Corporation shall be at New Delhi  3[or at such 

other place as the Central Government may, by notification in the Official Gazette, specify]. 

4.  Share  capital  and  shareholders.―(1)  The  authorised  share  capital  of  the  Central 
Warehousing Corporation shall be twenty crores of rupees divided into two hundred thousand shares 
of the face value of one thousand rupees each; any shares remaining to be issued may be issued, with 
the  sanction  of  the  Central  Government  from  time  to  time,  as  and  when  the  Central  Warehousing 
Corporation may deem fit:  

4[Provided that the Central Government may, from time to time, by order notified in the Official 
Gazette, increase the authorised share capital of the Central Warehousing Corporation to such extent 
and in such manner as that Government may determine.]  

1. Ins. by Act 42 of 1976, s. 2 (w.e.f. 24-3-1976). 
2. Ins. by Act 37 of 1989, s. 4 (w.e.f. 22-10-1989). 
3. Ins. by Act 34 of 1963, s. 2 (w.e.f. 22-9-1963). 
4. The proviso ins. by Act 42 of 1976, s. 3 (w.e.f. 24-3-1976). 

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(2)  1[The Central Government shall, after due appropriation made by Parliament by law for the 
purpose,] subscribe for forty per cent. of the share capital issued at any time and the remaining sixty 
per cent. of the share capital may be subscribed for, within such period and in such proportion as may 
be specified by the Central Government, by the following institutions, namely:― 

(a) the State Bank;  

(b) other scheduled banks;  

(c) co-operative societies;  

(d) insurance companies, investment trusts and other financial institutions;  

(e)  recognised  associations  and  companies  dealing  in  agricultural  produce  or  any  notified 

commodity.  

(3) If any portion of the sixty per cent. of the share capital referred to in sub-section (2) remains 
unallotted, it may be subscribed for by the Central Government and the State Bank in such proportion 
as may be agreed upon between them and in default of such agreement, as may be determined by  the 
Central Government. 

(4)  The  shares  of  the  Central  Warehousing  Corporation  shall  not  be  transferable  except  to  the 
Central  Government,  2[the  State  Bank  or  any  other  scheduled  bank],  any  insurance  company,  any 
investment trust or other financial institution or any co-operative society or any recognised association 
or  company  dealing  in  agricultural  produce  or  any  notified  commodity,  in  accordance  with  the 
regulations made by the Central Warehousing Corporation under this Act. 

3[5. Certain shares to be approved securities.―Notwithstanding anything contained in the Acts 
mentioned in this section, the shares of the Central Warehousing Corporation shall be deemed to be― 

(a) included among other securities enumerated in section 20 of the  Indian Trusts Act, 1882 

(2 of 1882); and 

(b) the approved securities for the purposes of the Insurance Act, 1938 (4 of 1938) and the 

Banking Regulation Act, 1949 (10 of 1949).] 

6. Management of Central Warehousing Corporation.― (1) The general superintendence and 
management of the affairs and business of the Central Warehousing Corporation shall vest in a board 
of  directors  who,  with  the  assistance  of  an  Executive  Committee  and  a  managing  director,  may 
exercise all the powers and discharge all the functions which may be exercised or discharged by the 
Central Warehousing Corporation under this Act.  

(2)  The  board  of  directors  shall  act  on  business  principles  having  regard  to  public  interest  and 
shall be guided by such instructions on questions of policy as may be given to them 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 shall be final. 

1. Subs. by Act 42 of 1976, s. 3, for “The Central Government shall” (w.e.f. 24-3-1976). 
2. Subs. by s. 3, ibid., for “the State Bank, any scheduled bank” (w.e.f. 24-3-1976). 
3. Subs. by Act 16 of 2015, s. 2, for section 5 (w.e.f. 13-5-2015). 

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7. Directors.―(1) The board of directors referred to in section 6 shall consist of the following, 

namely:―  

(a) six directors to be nominated by the Central Government;  
1* 

* 

* 

* 

* 

(c) one director to be nominated by the State Bank;  

(d) one director to be elected by other scheduled banks; 

(e) one director to be elected by co-operative societies; 

 (f) one director to be elected by insurance companies, investment trusts and other financial 
institutions,  recognised  associations  and  companies  dealing  in  agricultural  produce  or  notified 
commodities; 

2[(ff) three directors to be appointed by the Central Government;]  

(g)  a  managing  director,  appointed  by  the  Central  Government  in  consultation  with  the 

directors referred to in clauses (a) to (f):  

Provided  that  the  three  directors  to  be  elected  under  clauses  (d),  (e)  and  (f)  may,  for  the  first 
constitution of the board of directors, be nominated by the Central Government in such manner as to 
give  representation  to  each  class  of  institutions  (whether  they  have  become  shareholders  of  the 
Corporation  or  not)  referred  to  in  those  clauses,  but  a  director  so  nominated  shall  hold  office  only 
until he is replaced by a director elected as provided in that clause, and the director so elected shall 
hold office only for so long as the director replaced would have held office had he not been replaced.  

(2) The  directors referred to  in  clauses  (d),  (e) and (f)  of sub-section (1) shall  be  elected in  the 

prescribed manner.  

(3)  If,  within  the  period  prescribed  in  this  behalf,  or  within  such  further  period  as  the  Central 

Government  may  allow,  the  institutions  referred  to  in  clause  (d)  or  clause  (e)  or  clause  (f)  of            
sub-section  (1)  fail  to  elect  a  director,  the  Central  Government  may  nominate  a  director  to  fill  the 
vacancy.  

(4)  The  board  of  directors  shall  have  a  Chairman  3***  who  shall  be  appointed  by  the  Central 

Government from among the directors. 

 2[(4A) The directors appointed under clause (ff) of sub-section (1) shall be entitled to receive such 
salary and allowances as the Central Warehousing Corporation may, with the approval of the Central 
Government, determine.]  

(5) The managing director shall— 

(a)  exercise  such  powers  and  perform  such  duties  as  the  board  of  directors  or  the  Central 

Warehousing Corporation may entrust or delegate to him; and  

(b) receive such salary and allowances as the Central Warehousing Corporation may, with the 

approval of the Central Government, fix. 

 (6) The directors of the Central Warehousing Corporation other than the managing director shall 
be  entitled  to  receive  by  way  of  remuneration  such  sums  as  the  Central  Warehousing  Corporation 
may, with the approval of the Central Government, fix: 

Provided  that  no  official  director  shall  be  entitled  to  receive  any  remuneration  other  than  the 

allowances, if any, admissible to him under the rules regulating his conditions of service. 

1. Clause (b) omitted by Act 45 of 2005, s. 2 (w.e.f. 15-11-2005). 
2. Ins. by s. 2, ibid. (w.e.f. 15-11-2005). 
3. The words “and a Vice-Chairman” omitted by s. 2, ibid. (w.e.f. 15-11-2005). 

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(7) The term of office of, and the manner of filling casual vacancies among, the directors shall be 

such as may be prescribed. 

8.  Disqualification  for  office  of  Director  of  the  Central  Warehousing  Corporation.―A 
person shall be disqualified for being chosen as, and for being, a director of the Central Warehousing 
Corporation— 

(i) if he is found to be a lunatic or becomes of unsound mind; or 

 (ii) 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  

(iii) 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  

(iv)  if  he has  been removed  or  dismissed from  the service  of  Government  or  a Corporation 

owned and controlled by the Government; or 

 (v)  except  in  the  case  of  1[the  directors  appointed  under  clause  (ff)  of  sub-section  (1)  of 
section  7  and  the  managing  director],  if  he  is  a  salaried  official  of  the  Central  Warehousing 
Corporation or any State Warehousing Corporation; or  

(vi) if he is personally interested in any subsisting contract made with, or in any work being 
done for the Central Warehousing Corporation except as a shareholder (other than a director) in 
any public company as defined in the Companies Act, 1956 (1 of 1956):  

Provided  that  where  any  such  person  is  a  shareholder,  he  shall  disclose  to  the  Central 

Warehousing Corporation the nature and extent of shares held by him in such company. 

9.  Removal  of  directors  from  office.―(1)  The  Central  Government  may,  at  any  time  in 
consultation  with  the  Central  Warehousing  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 from office any director 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 for more than three consecutive meetings 

of the board without cause sufficient in the opinion of the board, to exonerate his absence. 

10.  Appointment  of  officers,  etc.,  and  their  conditions  of  service.―(1)  The  Central 
Warehousing Corporation may appoint such officers and other employees as it considers necessary for 
the efficient performance of its functions.  

(2)  Every  person  employed  by  the  Central  Warehousing  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. 

11. Functions of Central Warehousing Corporation.―Subject to the provisions of this Act, the 

Central Warehousing Corporation may— 

 (a) acquire and build godowns and warehouses at such suitable places in India  2[ or aboard] 

as it thinks fit;  

(b)  run  warehouses  for  the  storage  of  agricultural  produce,  seeds,  manures,  fertilizers, 
agricultural implements and notified commodities offered by individuals, co- operative societies 
and other institutions;  

1. Subs. by Act 45 of 2005, s. 3, for “the managing director” (w.e.f. 15-11-2005). 
2. Ins. by Act 23 of 2001, s. 2 (w.e.f. 1-11-2001).  

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(c)  arrange  facilities  for  the  transport  of  agricultural  produce,  seeds,  manures,  fertilizers, 

agricultural implements and notified commodities to and from warehouses; 

(d) subscribe to the share capital of a State Warehousing Corporation;  

(e)  act  as  agent  of  the  Government  for  the  purposes  of  the  purchase,  sale,  storage  and 
distribution  of  agricultural  produce,  seeds,  manures,  fertilizers,  agricultural  implements  and 
notified commodities; 1* * *  

2[(ea) enter into, with the previous approval of the Central Government, joint ventures with 
any corporation established by or under any Central Act or any State Act or with any company 
formed and registered under the Companies Act, 1956 (1 of 1956) including foreign company or 
through its subsidiary companies, for carrying out the purposes of this Act. 

Explanation.―For the purposes of this clause, the expression “foreign company” shall have 
the  meaning  assigned  to  it  under  clause  (23A)  of  section  2  of  the  Income-tax  Act,  1961  (43  of 
1961). 

(eb) establish subsidiary companies; and]  

(f) carry out such other functions as may be prescribed. 

12.  Executive  Committee.―(1)  There  shall  be  an  Executive  Committee  of  the  Central 

Warehousing Corporation which shall consist of— 

(a) the Chairman 3*** of the board of directors; 

(b) the managing director; and  

(c) two other directors chosen by the Corporation in the prescribed manner.  

4[(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 Central 
Warehousing Corporation. 

13. Meetings of the Corporation.― (1) The annual general meeting of the Central Warehousing 
Corporation (hereinafter referred to as the annual general meeting) shall be held every year either at 
its head-office or at any other office of the Corporation within six months of the close of the financial 
year, and any other general meeting may be convened by the board of directors at any other time. 

 (2) The shareholders present at the annual general meeting shall be entitled to discuss the annual 
accounts, the report of the board of directors on the working of the Corporation during the year under 
report, as well as the auditors’ report on the annual balance-sheet and accounts. 

 (3)  The  board  of  directors  of  the  Central  Warehousing  Corporation  shall,  on  the  requisition  of 
one-third of the number of shareholders of the Corporation, call a special meeting of the Corporation.  

(4)  The  requisition  for  a  special  meeting  under  sub-section  (3)  shall  state  the  object  of  the 
meeting, and shall be signed by the requisitionists and deposited at the head-office of the Corporation, 
and may consist of several documents in like form each signed by one or more requisitionists.  

(5)  If  the  board  of  directors  of  the  Central  Warehousing  Corporation  do  not  proceed  within 
twenty-one days from the date of the requisition being so deposited to cause the special meeting to be 
called, the requisitionists, or a majority of them, may, themselves call the meeting, but in either case, 
the meeting so called shall be held within three months from the date of the deposit of the requisition.  

1. The word “and” omitted by Act 23 of 2001, s. 2 (w.e.f. 1-11-2001).  
2. Ins. by s. 2, ibid. (w.e.f. 1-11-2001). 
3. The word “and the Vice-Chairman” omitted by Act 45 of 2005, s. 4 (w.e.f. 15-11-2005). 
4. Subs. by s. 4, ibid., for sub-section (2) (w.e.f. 15-11-2005). 

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(6) The Central Warehousing Corporation 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 Central Warehousing Corporation under this Act. 

14.  Grants  and  loans  by  the  Central  Government.―(1)  The  Central  Government  may,  after 
due  appropriation  made  by  Parliament  by  law  in  this  behalf,  pay  to  the  Central  Warehousing 
Corporation for the purposes of either fund maintained by the Corporation— 

(a)  by  way  of  grants,  such  sums  of  money  as  the  Central  Government  may  consider 

necessary; and  

(b)  by  way  of  loans,  such  sums  of  money  on  such  terms  and  conditions  as  the  Central 

Government may determine;  

(2) When making a payment under sub-section (1), the Central Government shall specify the fund 

for the purposes of which the payment is made. 

15. Corporation to maintain two funds. ―The Central Warehousing Corporation shall maintain 

two separate funds, namely:― 

(a) the Central Warehousing Fund (hereinafter referred to as the Warehousing Fund); and  

(b) the General Fund. 

16. Warehousing Fund.―(1) To the Warehousing Fund shall be credited— 

 (a) all moneys and other securities transferred to the Central Warehousing Corporation under 

clause (c) of sub-section (2) of section 43; 

 (b)  such  grants  and  loans  as  the  Central  Government  may  make  for  the  purposes  of  the 

Warehousing Fund; and  

(c) such sums of money as may, from time to time, be realised out of the loans made from the 

Warehousing Fund or from interest on loans or dividends on investments made from that fund.  

(2) The Warehousing Fund shall be applied— 

(a)  for  advancing  loans  to  State  Governments  on  such  terms  and  conditions  as  the  Central 
Warehousing Corporation may deem fit for the purpose of enabling them to subscribe to the share 
capital of State Warehousing Corporations;  

(b) for advancing loans and granting subsidies to State Warehousing Corporations or to State 
Governments on such terms and conditions as the Central Warehousing Corporation may deem fit 
for  the  purpose  of  promoting  the  warehousing  and  storage  of  agricultural  produce  and  notified 
commodities, otherwise than through co-operative societies;  

1[(c)  for  meeting  the  expenses  incurred  in  relation  to  the  training  of  personnel,  or  publicity 
and  propaganda,  for  the  purpose  of  promoting  warehousing  and  storage  of  agricultural  produce 
and notified commodities;  

(d) for meeting the expenses, including the salary, allowances and other remuneration of the 
officers and other employees, incurred in relation to the administration of the Warehousing Fund.] 

17. General Fund.―(1) To the General Fund shall be credited— 

(a) all sums received by the Central Warehousing Corporation other than those referred to in 

sub-section (1) of section 16; and  

(b)  such  grants  and  loans  as  the  Central  Government  may  make  for  the  purposes  of  the 

General Fund.  

(2) The General Fund shall be applied— 

1. Ins. by Act 42 of 1976, s. 4 (w.e.f. 24-3-1976). 

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(a)  for  meeting  the  salary,  allowances  and  other  remuneration  of  the  officers  and  other 

employees of the Central Warehousing Corporation;  

(b) for meeting the other administrative expenses of the Corporation; and  

(c) for carrying out the purposes of this Act: 

1[Provided  that  the  General  Fund  shall  not  be  applied  for  meeting  the  expenses  referred  to  in 

clause (c) or clause (d) of sub-section (2) of section 16.] 

CHAPTER III 

STATE WAREHOUSING CORPORATIONS 

18.  State  Warehousing  Corporations.―(1) The  State  Government  may,  by  notification  in the 
Official  Gazette  and  with  the  approval  of  the  Central  Warehousing  Corporation,  establish  a 
Warehousing Corporation for the State under such name as may be specified in the notification.  

(2) A State Warehousing 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 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 Warehousing Corporation shall be at such place within the State as 

may be notified in the Official Gazette.  

(4) Notwithstanding anything contained in sub-sections (1), (2) and (3), it shall not be necessary 
for the State Government to establish a Corporation under sub-section (1) where, under clause (g) of 
sub-section (2) of section 43, a Corporation is deemed to be established for that State under this Act. 

19.  Share  capital  and  shareholders.―(1)  The  authorised  capital  of  a  State  Warehousing 
Corporation shall be such sum not exceeding two crores of rupees as may be prescribed, divided into 
shares of the face value of one hundred rupees each, of which such number as may be determined by 
the Corporation in consultation with the State Government shall be issued in the first instance and the 
remaining shares may be issued, from time to time, as and when the Corporation may deem fit after 
consultation  with  the  Central  Warehousing  Corporation  and  with  the  sanction  of  the  State 
Government:  

2[Provided  that  in  respect  of  any  State  Warehousing  Corporation  the  Central  Government  may, 
after consultation with the State Government concerned, from time to time and by order notified in the 
Official Gazette, increase the maximum limit of the authorised capital aforesaid to such extent and in 
such manner as the Central Government may determine.]  

(2) Of the share capital issued in the first instance and of any subsequent issue of such capital, the 
Central Warehousing Corporation shall, in any case where the State Government has subscribed for 
fifty per cent. of such capital, subscribe for the remaining fifty per cent. of the capital. 

20. Management of a State Warehousing Corporation.―(1) The general superintendence and 
management of the affairs of a State Warehousing Corporation shall vest in a board of directors which 
shall consist of the following, namely:― 

(a) five directors nominated by the Central Warehousing Corporation, of whom one shall be 

nominated in consultation with the State Bank and one at least shall be a non-official;  

(b) five directors nominated by the State Government; and  

(c) a managing director, appointed by the State Government in consultation with the directors 
referred  to  in  clauses  (a)  and  (b)  and  3[under  intimation  to]  with  the  previous  approval  of  the 
Central Warehousing Corporation.  

1. The proviso ins. by Act 42 of 1976, s. 5 (w.e.f. 24-3-1976). 
2. The proviso ins. by s. 6, ibid. (w.e.f. 24-3-1976). 
3. Subs. by Act 23 of 2001, s. 3, for “with the previous approval of” (w.e.f. 1-11-2001). 

10 

 
                                                           
(2)  The  Chairman  of  the  board  of  directors  shall  be  appointed  by  the  State  Government  from 
among the directors of the State Warehousing Corporation with the previous approval of the Central 
Warehousing Corporation. 

 (3) The managing director shall— 

(a)  exercise  such  powers  and  perform  such  duties  as  the  board  of  directors  or  the  State 

Warehousing Corporation may entrust or delegate to him; and  

(b)  receive  such  salary  and  allowances  as  the  State  Warehousing  Corporation  may,  in 
consultation with the Central Warehousing Corporation, and with previous approval of the State 
Government, fix.  

(4)  The  board  of  directors  shall  act  on  business  principles  having  regard  to  public  interest  and 
shall  be  guided  by  such  instructions  on  questions  of  policy  as  may  be  given  to  them  by  the  State 
Government or the Central Warehousing Corporation.  

(5) If any doubt arises as to whether a question is or is not a question of policy, or, if the State 
Government and the Central Warehousing Corporation give conflicting instructions, the matter shall 
be referred to the Central Government whose decision thereon shall be final.  

(6) The directors of a State Warehousing Corporation, other than the managing director, shall be 

entitled to receive by way of remuneration such sums as may be prescribed:  

Provided  that  no  official  director  shall  be  entitled  to  receive  any  remuneration  other  than  any 

allowances admissible to him under the rules regulating his conditions of service.  

(7)  The  term  of  office  of,  and  the  manner  of  filling  casual  vacancies  among,  directors  shall  be 

such as may be prescribed. 

21. Disqualification for office of director of the corporation.― A person shall be disqualified 

for being chosen as, and for being, a director of a State Warehousing Corporation— 

(i) if he is found to be a lunatic or becomes of unsound mind; or  

(ii) 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  

(iii) 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  

(iv) if he has been removed or dismissed from service of Government or a corporation owned 

and controlled by the Government; or  

(v)  except  in  the  case  of the  managing  director,  if  he  is  a salaried  official of  1*  *  *  a  State 

Warehousing Corporation; or  

(vi)  if  he  is  personally  interested  in  a  subsisting  contract  made  with,  or  in  any  work  being 
done for, the State Warehousing Corporation except as a shareholder (other than a director) in any 
public company as defined in the Companies Act, 1956 (1 of 1956):  

Provided  that  where  any  such  person  is  a  shareholder,  he  shall  disclose  to  the  Warehousing 

Corporation the nature and extent of the shares held by him in such company.  

22.  Removal  of  directors  from  office.―  (1)  The  State  Government  may,  at  any  time,  2[under 
intimation  to]  of  the  Central  Warehousing  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 from office any director who— 

1. The words “the Central Warehousing Corporation or” omitted by Act 23 of 2001, s. 4 (w.e.f. 1-11-2001). 
2. Subs. by s. 5, ibid., for “with the previous approval of” (w.e.f. 1-11-2001). 

11 

 
                                                           
(a) is or has become subject to any of the disqualifications mentioned in section 21; or  

(b) is absent without leave of the board of directors for more than three consecutive meetings 

of the board without cause sufficient, in the opinion of the board, to exonerate his absence. 

23. Appointment of officers, etc., and their conditions of service.― (1) A State Warehousing 
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 Warehousing 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. 

24. Functions of the State Warehousing Corporation.― Subject to the provisions of this Act, a 

State Warehousing Corporation may— 

(a)  acquire  and  build  godowns  and  warehouses  at  such  places  within  the  State  as  it  may, 

1[after consultation with] the Central Warehousing Corporation, determine;  

(b)  run  warehouses  in  the  State  for  the  storage  of  agricultural  produce,  seeds,  manures, 

fertilizers, agricultural implements and notified commodities;  

(c)  arrange  facilities  for  the  transport  of  agricultural  produce,  seeds,  manures,  fertilizers, 

agricultural implements and notified commodities to and from warehouses;  

(d)  act  as  an  agent  of  the  Central  Warehousing  Corporation  or  of  the  Government  for  the 
purposes of the purchase, sale, storage and distribution, of agricultural produce, seeds, manures, 
fertilizers, agricultural implements and notified commodities; 2* * *  

3[(da) enter into, with the previous approval of the State Government, joint ventures with the 

Central Warehousing Corporation; and] 

(e) carry out such other functions as may be prescribed. 

25. Executive Committee.―(1) There shall be an Executive Committee of a State Warehousing 

Corporation which shall consist of— 

(a) the Chairman of the board of directors;  

(b) the managing director; and  

(c)  three  other  directors  chosen  in  the  prescribed  manner,  of  whom  one  shall  be  a  director 

referred to in clause (a) of sub-section (1) of section 20. 

 (2) The Chairman of the board of directors shall be the Chairman of the Executive Committee.  

(3) Subject to any general or special directions as the board of directors may, from time to time, 
give, the Executive Committee shall be competent to deal with any matter within the competence of 
the State Warehousing Corporation. 

1. Subs. by Act 23 of 2001, s. 6, for “with the previous approval of” (w.e.f. 1-11-2001). 
2. The word “and” omitted by s. 6, ibid. (w.e.f. 1-11-2001). 
3. Ins. by s. 6, ibid. (w.e.f. 1-11-2001). 

12 

 
                                                           
CHAPTER IV 

FINANCE, ACCOUNTS AND AUDIT 

26. Submission of programme of activities and financial estimates.―(1) Every Warehousing 
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 for approval— 

(a) in the case of the Central Warehousing Corporation, to the Central Government;  

(b) in the case of a State Warehousing Corporation, to the Central Warehousing Corporation 

and the State Government.  

(3)  The  statement  and  the  financial  estimate  of  a  Warehousing  Corporation  referred  to  in  
sub-section  (1)  may,  with  the  approval  of  the  Central  Government  in  the  case  of  the  Central 
Warehousing Corporation, or with the approval of the Central Warehousing Corporation and the State 
Government  in  the  case  of  a  State  Warehousing  Corporation,  be  revised  by  the  Warehousing 
Corporation. 

27. Borrowing powers of Warehousing Corporation.― (1) A Warehousing Corporation may, 
in consultation with the Reserve Bank and with the previous approval of the appropriate Government, 
issue and sell bonds and debentures carrying interest for the purpose of raising funds: 

Provided that the total amount of bonds and debentures issued and outstanding and of the other 
borrowings of the Corporation shall not at any time exceed ten times the amount of the paid-up share 
capital and the reserve fund of the Corporation.  

(2) A Warehousing Corporation may, for the purpose of carrying out its functions under this Act, 

borrow money― 

(i) from the Reserve Bank, or 

(ii) from the State Bank, for such periods for which, and upon any of the securities against 
which, it is authorised to advance and lend moneys, under the provisions of   1[the State Bank of 
India Act, 1955 (23 of 1955), or] 

2[(iii) from any 3[scheduled bank], or 
(iv)  from  such  insurance  company,  investment  trust or  other  financial  institution  as  may  be 

approved by the Central Government in this behalf.] 

(3) Subject to the proviso to sub-section (1), the Central Warehousing Corporation may borrow 
money from the Central Government and a State Warehousing Corporation may borrow money from 
the State Government and the Central Warehousing Corporation on such securities and on such terms 
and  conditions  as  may  be  agreed  upon  between  the  borrowing  Corporation  and  the  lender,  in  each 
case.  

4[(4)  The  bonds  and  debentures  of  a  State  Warehousing  Corporation  may  be  guaranteed  by  the 
appropriate Government on the recommendation of the Board of Directors of the State Warehousing 
Corporation at the time such bonds or debentures are issued.] 

28. Deposit account.―All moneys belonging to a Warehousing Corporation shall be deposited in 
the Reserve Bank or the State Bank  5[or any nationalised bank] or, subject to any  rules made under 
this Act, in 6[any other scheduled bank] or co-operative bank. 

1. Subs. by Act 42 of 1976, s. 7, for “the State Bank of India Act, 1955 (23 of 1955)” (w.e.f. 24-3- 1976). 
2. Ins. by s. 7, ibid. (w.e.f. 24-3-1976). 
3. Subs. by Act 45 of 2005, s. 5, for “nationalised bank” (w.e.f. 15-11-2005). 
4. Subs. by Act 16 of 2015, s. 3, for sub-section (4) (w.e.f. 13-5-2015). 
5. Ins. by Act 42 of 1976, s. 8 (w.e.f. 24-3-1976). 
6. Subs. by s. 8, ibid., for “any scheduled bank” (w.e.f. 24-3- 1976). 

13 

 
                                                           
29. Investment of funds.― A Warehousing Corporation may invest its funds in the securities of 
the Central or any State Government or in such other manner as may be prescribed by the appropriate 
Government. 

30. Disposal of profits.― (1) Every Warehousing Corporation shall establish a reserve fund out 

of its annual net profits.  

(2) After making provision for bad and doubtful debts, depreciation on assets and all other matters 
which are usually provided for by companies registered and incorporated under the Companies Act, 
1956 (1 of 1956), a Warehousing Corporation may, out of its net annual profits, declare a dividend: 

* 

1* 
31. Accounts and audit of Warehousing Corporation.― (1) Every Warehousing 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:  

*  

* 

* 

Provided  that,  in  the  case  of  the  Central  Warehousing  Corporation,  the  accounts  relating  to  the 

Warehousing Fund and the General Fund shall be maintained separately.  

(2) The accounts of a Warehousing Corporation shall be audited by an auditor duly qualified to 

act as an auditor of companies under section 226 of the Companies Act, 1956 (1 of 1956).  

(3)  The  said  auditor  shall  be  appointed  by  the  appropriate  Government  on  the  advice  of  the 

Comptroller and Auditor-General of India. 

(4) The auditor shall be supplied with a copy of the annual balance sheet and the profit and loss 
account of the Warehousing Corporation and it shall be his duty to examine them together with the 
accounts and vouchers relating thereto, and he shall have a list delivered to him of all books kept by 
the  Corporation  and  shall  at  all  reasonable  times  have  access  to  the  books,  accounts  and  other 
documents of the Corporation and may require from any officer of the Corporation such information 
and explanations as the auditor may think necessary for the performance of his duties as auditor.  

(5) The auditor shall make a report to the shareholders on the accounts examined by him and on 
the  annual  balance  sheet  and  the  profit  and  loss  account  and  in  every  such  report,  he  shall  state 
whether in his opinion the accounts give a true and fair view— 

(a) in the case of the balance sheet, of the state of the Corporation's affairs at the end of its 

financial year, and  

(b) in the case of the profit and loss account, of the profit or loss for its financial year,  

and  in  case  he  has called for  any  explanation  or  information  from  the  officers, whether  it  has  been 
given and whether it is satisfactory.  

(6)  The  appropriate  Government  may,  after  consultation  with  the  Comptroller  and  Auditor-
General of India at any time issue directions to the auditor requiring him to report to the appropriate 
Government upon the adequacy of measures taken by a Warehousing Corporation for the protection 
of its shareholders and creditors or upon the sufficiency of his procedure in auditing the accounts of 
the Corporation and may enlarge or extend the scope of the audit or direct that a different procedure in 
audit  may  be  adopted  or  direct  that  any  other  examination  may  be  made  by  the  auditor  if  in  the 
opinion of the appropriate Government public interest so requires.  

(7) A Warehousing Corporation shall send a copy of every report of the auditor to the Comptroller 
and  Auditor-General  of  India  and  to the  Central  Government  at least  one  month  before  it  is  placed 
before the shareholders.  

(8) Notwithstanding anything hereinbefore contained in this section, the Comptroller and Auditor-
General  of  India  may,  either  of  his  own  motion  or  on  a  request  received  in  this  behalf  from  the 
appropriate Government, undertake in respect of a Warehousing Corporation such audit and at such 
time as he may consider necessary:  

1. The proviso omitted by Act 16 of 2015, s. 4 (w.e.f. 13-5-2015). 

14 

 
 
 
 
 
 
 
 
 
                                                           
1* 

* 

* 

* 

* 

 (9)  The  Comptroller  and  Auditor-General  of  India  and  any  person  authorised  by  him  in 
connection with the audit of the accounts of a Warehousing Corporation shall have the 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 
the production of books, accounts, connected vouchers and other documents and papers and to inspect 
the office of the Corporation.  

(10)  The  annual  accounts  of  a  Warehousing  Corporation  together  with  the  audit  report  thereon 
shall be placed before the annual general meeting of the Corporation within six months of the close of 
the financial year. 

 (11)  Every  audit  report  under  this  section  shall  be  forwarded  to  the  appropriate  Government 
within a month of its being placed before the annual general meeting and that Government shall as 
soon  thereafter  as  may  be  cause  the  same  to  be  laid  before  both  Houses  of  Parliament  or  the 
Legislature of the State, as the case may be. 

2[31A.  Returns  and  reports.―  A  Warehousing  Corporation  shall  furnish  to  the  appropriate 
Government  such  returns,  statistics,  accounts  and  other  information  with  respect  to  its  property  or 
activities as that Government may, from time to time, require.] 

CHAPTER V 

MISCELLANEOUS 

32.  Vacancies,  etc.,  not 

invalidate  acts  and  proceedings  of  Warehousing 
Corporations.―No act or proceeding of a Warehousing Corporation shall be invalid by reason only 
of the existence of any vacancy among its directors or any defect in the constitution thereof. 

to 

33.  Delegation.―A  Warehousing  Corporation  may,  by  general  or  special  order  in  writing, 
delegate  to  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 for the efficient performance of its functions. 

34.  Voting  rights  of  shareholders.―In  any  meeting  of  the  shareholders  of  a  Warehousing 
Corporation,  every  member  shall  have  one  vote  in  respect  of  each  share  held  by  him  in  the 
Corporation.  

35.  Disputes  between  Central  Warehousing  Corporation  and  State  Warehousing 
Corporation.― If there is any difference of opinion between the Central Warehousing Corporation 
and a State Warehousing Corporation regarding their respective functions and powers under this Act, 
such difference shall be referred to the Central Government whose decision thereon shall be final. 

36. Declaration of fidelity and secrecy.―Every director, auditor, officer or other employee of a 
Warehousing  Corporation  shall,  before  entering  upon  his  duties,  make  a  declaration  of  fidelity  and 
secrecy in the form set out in the Schedule. 

37.  Indemnity  of  directors.―(1)  Every  director  of  a  Warehousing  Corporation  shall  be 
indemnified by the Corporation concerned against all losses and expenses incurred in the discharge of 
his duties except such as are caused by his own wilful act or default.  

(2) A director of a Warehousing Corporation shall not be responsible for any other director or for 
any  officer  or  other  employee  of  the  Corporation  or  for  any  loss  or  expense  resulting  to  the 
Corporation  by  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  wrongful  act  of  any  person 

1. The proviso omitted by Act 16 of 2015, s. 5 (w.e.f. 13-5-2015). 
2. Ins. by Act 42 of 1976, s. 9 (w.e.f. 24-3-1976). 

15 

 
 
 
 
 
 
 
 
 
                                                           
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. 

38. Offences.― (1) Whoever, without the consent in writing of a Warehousing Corporation, uses 
the  name  of  that  Corporation  in  any  prospectus  or  advertisement,  shall  be  punishable  with 
imprisonment  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)  otherwise  than  on  a 
complaint  in  writing  by  an  officer  authorised  in  this  behalf  by  the  Warehousing  Corporation 
concerned. 

39. Provisions relating to income-tax and super-tax.―For the purposes of the Income-tax Act, 
1961 (43 of 1961), a Warehousing Corporation shall be deemed to be a company within the meaning 
of  that  Act  and  shall  be  liable  to  income-tax  and  super-tax  accordingly  on  its  income,  profits  and 
gains:  

1* 

* 

* 

* 

* 

40. Winding up of Warehousing Corporations.―No provision of law relating to the winding 
up of companies or corporations shall apply to a Warehousing Corporation and any such Corporation 
shall not be placed in liquidation save by order of the appropriate Government and in such manner as 
it may direct. 

41. Power to make rules.―(1) The appropriate 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— 

(a) the additional functions which a Warehousing Corporation may perform;  

(b)  the  manner  of  nomination  and  election  of  the  directors  of  the  Central  Warehousing 

Corporation and the period within which such directors shall be nominated or elected;  

(c)  the  term  of  office  of,  and  the  manner  of  filling  casual  vacancies  among,  and  the 

remuneration payable to, the directors of a Warehousing Corporation;  

(d)  the  manner  of  choosing  directors  on  the  Executive  Committee  of  a  Warehousing 

Corporation;  

(e)  the  authorised  capital  of  a  State  Warehousing  Corporation  2[within  the  maximum  limit 

specified by or under sub-section (1) of section 19]; 

 (f)  the  form  of  the  annual  statement  of  accounts and  the balance  sheet to  be  prepared  by  a 

Warehousing Corporation;  

(g)  the  deposit  of  moneys  of  a  Warehousing  Corporation  in  a  scheduled  bank  or  a  co-

operative bank;  

(h)  the  manner  of  issuing  shares  of  a  Warehousing  Corporation,  the  calls  to  be  made  in 

respect thereof, and all other matters incidental to the issue of shares; 

1. Both the provisos omitted by Act 16 of 2015, s. 6 (w.e.f. 13-5-2015). 
2. Subs. by Act 42 of 1976, s. 10, for “within the limit specified in sub-section (1) of section 19” (w.e.f. 24-3- 1976).  

16 

 
 
 
 
 
 
 
 
                                                           
 1[(i) the form and manner in which returns, statistics, accounts and other information are to 

be furnished, under section 31A, by a Warehousing Corporation;]  

 2[(j)] any other matter which has to be or may be prescribed.  

(3) Every rule made by the Central Government under this section shall be laid as soon as may be 
after it is made, before each House of Parliament while it is in session for a total period of thirty days 
which  may  be  comprised  in  one  session  or  in  two  or  more  successive  sessions,  and  3[if  before  the 
expiry  of  the  session  immediately  following  the  session]  or  the  successive  sessions  aforesaid,  both 
Houses agree in making any modification in the rule or both Houses agree that the rule should not be 
made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case 
may be; so however that any such modification or annulment shall be without prejudice to the validity 
of anything previously done under that rule.  

42.  Power  of  Warehousing  Corporations  to  make  regulations.―(1)  A  Warehousing 
Corporation  may,  with  the  previous  sanction  of  the  appropriate  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 purposes 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  conditions  of  service  of,  and  the  remuneration  payable  to,  the  officers  and  other 

employees of a Warehousing Corporation;  

(b)  the  manner  in  which,  and  the  conditions  subject  to  which,  shares  of  the  Central 

Warehousing Corporation may be transferred;  

(c)  the  manner  in  which  meetings  of  a  Warehousing  Corporation  and  the  Executive 
Committee thereof shall be convened, the fees for attending such meetings and the procedure to 
be followed thereat;  

(d) the duties and conduct of officers and employees of a Warehousing Corporation;  

(e) the powers and duties which may be entrusted or delegated to the managing director of a 

Warehousing Corporation;  

(f) generally, the efficient conduct of the affairs of a Warehousing Corporation.  

(3)  The  appropriate  Government  may,  by  notification  in  the  Official  Gazette,  rescind  any 

regulation which it has sanctioned and thereupon the regulation shall cease to have effect. 

43.  Repeal  and  savings.―(1)  With  effect  from  the  date  on  which  the  Central  Warehousing 
Corporation is established under section 3, the Agricultural Produce (Development and Warehousing) 
Corporations  Act,  1956  (28  of  1956),  in  so  far  as  it  has  not  been  repealed  by  the  National  
Co-operative Development Corporation Act, 1962 (26 of 1962), shall stand repealed. 

 (2) Notwithstanding such repeal,―  

(a)  the  shares  allotted  and  the  share  certificates  issued  by  the  Central  Warehousing 
Corporation  established  under  the  repealed  Act  (hereinafter  referred  to  as  the  said  Corporation) 
shall be deemed to have been allotted and issued by the Corporation established under section 3 of 
this  Act  as    if this  Act  had  been  in  force  on the  day  on  which the  shares  were  allotted  and  the 
share certificates were issued; 

1. Ins. by Act 42 of 1976, s. 10 (w.e.f. 24-3-1976).   
2. Clause (i) re-lettered as clause (j) thereof by s. 10, ibid. (w.e.f. 24-3-1976). 
3. Subs. by s. 10, ibid., for “if, before the expiry of the session in which it is so laid” (w.e.f. 24-3-1976). 

17 

 
                                                           
 (b) every shareholder of the said Corporation shall become the holder of as many shares in 
the Corporation established under section 3 of this Act as are equivalent in number and value to 
the shares held by him in the said Corporation;  

(c) all moneys and other securities belonging to the National Warehousing Development Fund 
which,  immediately  before  the  said  date,  was  maintained  by  the  said  Corporation  shall  stand 
transferred to and be maintained by the Corporation established under section 3 of this Act;  

(d)  anything  done  or  any  action  taken  (including  any  appointment,  nomination,  delegation, 
rule or regulation made) under the repealed Act shall, in so far as it is not inconsistent with the 
provisions of this Act, be deemed to have been done or taken under this Act; 

 (e) every share held by the said Corporation in a State Warehousing Corporation under the 
repealed Act shall be deemed to be a share held by the Corporation established under section 3 of 
this Act in the corresponding State Warehousing Corporation deemed to be established under this 
Act; 

 (f)  all  rights,  liabilities  and  obligations  of  the  said  Corporation,  whether  arising  out  of  any 
contract or otherwise, shall be the rights, liabilities and obligations respectively of the Corporation 
established under section 3 of this Act;  

(g) a State Warehousing Corporation established for a State under the repealed Act shall be 

deemed to be the State Warehousing Corporation established for that State under this Act. 

THE SCHEDULE 

(See section 36) 

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 
director, officer, employee or auditor (as the case may be) of the Warehousing 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  person  not 
legally entitled thereto any information relating to the affairs of the said Corporation nor will I allow 
any  such  person  to  inspect  or  have  access  to  any  books  or  documents  belonging  to,  or  in  the 
possession of, the Corporation and relating to the business of the Corporation.  

Signature 

 Signature  

Signature  

Signed before me  

Date 

18 

 
 
 
 
 
 
 
 
 
