Agricultural Policy
The first ever National Agriculture Policy was announced on 28th July, 2000. The National Policy on Agriculture seeks to actualise the vast untapped growth potential of Indian agriculture, strengthen rural infrastructure to support faster agricultural development, promote value addition, accelerate the growth of agro business, create employment in rural areas, secure a fair standard of living for the farmers and agricultural workers and their families, discourage migration to urban areas and face the challenges arising out of economic liberalization and globalisation. Over the next two decades, it aims to attain:
- A growth rate in excess of 4 per cent per annum in the agriculture sector;
- Growth that is based on efficient use of resources and conserves our soil, water and bio-diversity;
- Growth with equity, i.e., growth which is widespread across regions and farmers;
- Growth that is demand driven and caters to domestic markets and maximises benefits from exports of agricultural products in the face of the challenges arising from economic liberalization and globalisation;
- Growth that is sustainable technologically, environmentally and economically.
The policy seeks to promote technically sound, economically viable, environmentally non-degrading, and socially acceptable use of country's natural resources-land, water and genetic endowment to promote sustainable development of agriculture.
The use of bio-technologies will be promoted for evolving plants which consume less water, are drought resistant, pest resistant, contain more nutrition, give higher yields and are environmentally safe. Conservation of bio-resources through their ex situ preservation in Gene Banks, as also in situ conservation in their natural habitats through bio-diversity parks, etc., will receive a high priority to prevent depletion of bio-diversity.
Balanced and conjunctive use of bio-mass, organic and inorganic fertilizers and controlled use of agro chemicals through integrated nutrients and pest management (INM & IPM) will be promoted.
A regionally differentiated strategy will be pursued, taking into account the agronomic, climatic and environmental conditions to realize the full growth potential of every region. Special attention will be given to development of new crop varieties, particularly of food crops, with higher nutritional value.
A major thrust will be given to development of rainfed and irrigated horticulture, floriculture, roots and tubers, plantation crops, aromatic and medicinal plants, bee-keeping and sericulture for augmenting food supply, promoting exports and generating employment in the rural areas.
Development of animal husbandry, poultry, dairying and aqua-culture will receive a high priority in the efforts for diversifying agriculture, increasing animal protein availability in the food basket and for generating exportable surpluses.
An integrated approach to marine and inland fisheries, designed to promote sustainable aquaculture practices, will be adopted.
The regionalization of agricultural research based on identified agro-climatic zones will be accorded high priority. Application of frontier sciences like bio-technology, remote sensing technologies, pre and post-harvest technologies, energy saving technologies, technology for environmental protection through national research system as well as proprietary research will be encouraged.
The research and extension linkages will be strengthened to improve quality and effectiveness of research and extension system.
Adequate and timely supply of quality inputs such as seeds, fertilizers, plant protection chemicals, bio-pesticides, agricultural machinery and credit at reasonable rates to farmers will be the endeavour of the Government.
The Government will endeavour to create a favourable economic environment for increasing capital formation and farmer's own investments by removing distortions in the incentive regime for agriculture, improving the terms of trade with manufacturing sectors and bringing about external and domestic market reforms.
Rural electrification will be given a high priority as a prime mover for agricultural development. The quality and availability of electricity supply will be improved and the demand of the agriculture sector will be met adequately in a reliable and cost effective manner.
Bridging the gap between irrigation potential created and utilized, completion of all on-going projects, restoration and modernization of irrigation infrastructure including drainage, evolving and implementing an integrated plan of augmentation and management of national water resources will receive special attention for augmenting the availability and use of irrigation water.
Emphasis will be laid on development of marketing infrastructure and techniques of preservation, storage and transportation with a view to reducing post-harvest losses and ensuring a better return to the grower.
Setting up of agro-processing units in the producing areas to reduce wastage, especially of horticultural produce, increased value addition and creation of off-farm employment in rural areas will be encouraged.
Institutional reforms will be pursued so as to channelise their energies for achieving greater productivity and production.
The Government will provide active support for the promotion of cooperative form of enterprise and ensure greater autonomy and operational freedom to them to improve their functioning. Endeavour will be made to provide a package insurance policy for the farmers, right from sowing of the crops to post-harvest operations, including market fluctuations in the prices of agricultural produce.
The price structure and trade mechanism will be continuously reviewed to ensure a favourable economic environment for the agriculture sector and to bring about an equitable balance between the rural and the urban incomes.
Quality consciousness amongst farmers and agro processors will be created. Grading and standardization of agricultural products will be promoted for export enhancement. Application of science and technology in agriculture will be promoted through a regular system of interface between Science and Technology institutions and the users/potential users to make the sector globally competitive.
The database for the agriculture sector will be strengthened to ensure greater reliability of estimates and forecasting which will help in the process of planning and policy making.
Follow up Action
Various Central Sector and Centrally Sponsored Schemes are being implemented by the Government of India and the State Governments for development of agriculture and allied activities as per guidelines of the Agriculture Policy. Following major initiatives have been taken to accelerate the pace of developmental activity and implement the objectives of the Agriculture Policy:
Macro Management Scheme has been launched after integrating 27 ongoing Centrally Sponsored Schemes to enable a shift from programmatic approach to a macro management mode of assistance to the states in the form of work plans based on crop/area specific, regionally different strategies, to provide flexibility to State Governments and to ensure timely and effective application of limited financial resources.
Common guidelines have been issued for National Watershed Development Project for Rainfed Areas to harmonize the implementing norms with other watershed development programmes. A Watershed Development Fund with a corpus of Rs.200 crores each from NABARD and the Department of Agriculture & Cooperation, has been created.
A Technology Mission for the Integrated Development of Horticulture in the North-Eastern Region has been launched.
Seed Legislation is under revision to provide fillip to varietal research and plant breeding. Enactment of legislation on the "Protection of Plant Varieties and Farmers Rights". This is likely to stimulate investment and initiative both in public and private sector for development of new plant varieties and a vibrant seed industry. A National Seed Policy is under formulation. A Scheme for Seed Crop Insurance has been launched to cover the risks involved in seed production. A Seed Bank has been established to meet contingent requirements of seed in the wake of natural calamities.
Increasing availability, flexibility and security in the flow of credit to the farmers. All eligible farmers are proposed to be covered under the Kisan Credit Cards scheme within the next 3 years. A personal insurance package is proposed to be extended to Card Holders covering them against risk to life and injury.
A scheme has been introduced for provision of capital subsidy for construction/modernization and expansion of cold storages and storages for horticultural produce.
Rural Infrastructure Development Fund corpus has been increased in 2001-02 from Rs. 45,00,00,00 thousands to Rs.5,00,00,000 thousands and the interest rate charged by NABARD reduced.
Market Information Network has been launched with the objective to provide farmers latest information on price movements of agricultural commodities and other essential data.
Cooperative Sector Reforms: a new Bill has been formulated and introduced in Parliament for replacing the existing Multi-State Cooperative Societies Act, 1984.
Formulation of new subsidy linked scheme for establishment of rural godowns.
Promotion of Food Processing Industries and value addition in agriculture through the excise exemptions and other interventions.
Standing Committee of Union Ministers and Chief Ministers constituted to consider issues concerning agricultural strategies, food management and promotion of agriculture exports. The Committee has approved the outline of the proposed Grain Bank Scheme which will be extended to BPL families in identified areas and developed on the contours of the recently launched Sampoorna Grameen Rozgar Yojana.
a. "Act" means the Insecticides Act, 1968(46 of 1968);
b. (2) ***
c. (3) "expiry date" means the date that is mentioned on the container, lebel or wrapper against the column ' date of Expiry;]
d. (4) 'form" means a form set out in the First Schedule;
e. "laboratory" means the Central Insecticides Laboratory;]
f. schedule" means a schedule annexed to these rules;
g. (2) ****
h. (4) "pests" means any insects, rodents, fungi weeds and other forms of plant or animal life not useful to human beings;]
i. (3) "primary package" means the immediate package containing the insecticides;
j. "principal" means the importer or manufacturer of insecticides, as the case may be,
k. "registration" includes provisional registration;
l. "rural area" means an area which falls outside the limits of any municipal corporation or municipal committee or a notified area committee or a cantonment;
m. "schedule' means a schedule annexed to these rules;
n. "secondary package" means a package which is neither a primary package not a transportation package;
o. "section" means a section of the Act;
p. "testing facility" means an operational unit where the experimental studies are being carried out or have been carried out in relation to submission of data on product quality or on safety or on efficacy, or an residues or on stability in storage of the insecticides for which an application for registration is made;
q. "transportation package" means the outermost package used for transportation of insecticides.)
1. substituted by GSR 736(E), dt. 9-12-1977.
2. Omitted by GSR 736(E), dt. 9-12-1977.
3. Inserted by GSR 533(E), dt 6-8-1993.
4. Substituted by GSR 533(E), dt 6-8-1993
r. (1) 'commercial pest control operation means any application or dispersion of Insecticide (s) including fumigants in household or public or private premises or land and includes pest control operations in the field including aerial applications for commercial purposes but excludes private use;
s. pest control operators' means any person who undertakes pest control operations and includes the person or the firm or the company or the organisation under whose control such a person (s) is operating.
Functions of the Board, Registration Committee and Laboratory
2. Functions of the Board
The board shall, in addition to the functions assigned to it by the act, carry out the following functions, namely:
a. advise the Central Government on the manufacture of insecticides under the industries development and regulation act, 1951 (65 of 1951);
b. specify the uses of the classification of insecticides on the basis of their toxicity as well as their being suitable for aerial application;
c. advise tolerance limits for insecticides, residues and an establishment of minimum intervals between the application of insecticides and harvest in respect of various commodities;
d. specify the shelf-life of insecticides;
e. suggest colourisation, including colouring matter which may be mixed with concentrates of insecticides, particularly those of highly toxic nature;
f. carry out such other functions as are supplemental, incidental or consequential to any of the functions conferred by the act or these rules.
3. Functions of Registration Committee
The registration committee shall, in addition to the functions assigned to it by the act perform the following functions, namely;
a. specify the precautions to be taken against poisoning through the use or handling of insecticides;
b. carry out such other incidental or consequential matters necessary for carrying out the functions assigned to it under the act or these rules.
4. Functions of Laboratory
The functions of the Laboratory shall be as follows;
a. to analyse such samples of insecticides sent to it under the act by any officer or authority authorised by the central or state governments and submission of certificates of analysis to the concerned authority;
b. to analyse samples of materials for insecticide residues under the provisions of the Act;
c. to carry out such investigations as may be necessary for the purpose of ensuring the conditions of registration of insecticides;
d. to determine the efficacy and toxicity of insecticides;
e. to carry out such other functions as may be entrusted to it by the central government or by a state government with the permission of the central government and after consultation with the board.
1. sub-clauses ® and (s) inserted by Insecticides (Amendment ) Rules, 1999 dt, 20-5-1999
REGISTRATION OF INSECTICIDES
5. Manner of registration
1.
a. an application for registration of an insecticide under the act shall be made in forms I and the said form including the verification portion, shall be signed in case of an individual by the individual himself or a person duly authorised by him in case of Hindu undivided family, by the karta or any person duly authorised by him, in case of partnership firm by the managing partner, in case of a company by any person duly authoriesed in that behalf by the board of directors and in any other case by the person in charge or responsible for the conduct of the business. Any change in members of Hindu undivided family or partners or the board of directors or the person in charge as the case may be shall be forthwith intimated to the secretary central insecticides board and registration committee and the licensing officer.
b. The registration committee may, if necessary, direct inspection of the testing facility for establishing the authenticity of the data.
2. an application form duly filled together with a bank draft, drawn in favour of the accounts officer directorate or plant protection quarantine & storage, payable at Faridabad towards registration fee shall be sent to the secretary registration committee, directorate of plant protection, quarantine & storage NH-IV Faridabad-121001, Haryana. The fee shall be payable as follows:-
i. Rupees five thousand each in case of application for registration under sections 9(3) and 9(3B) of the insecticides act, 1968;
ii. rupees two thousand five hundred in case of application for registration under section 9(4) of the insecticides act,1968.
3. the registration fee payable shall be paid by a demand draft drawn on the state bank of India Faridabad, in favour of the Accounts Officer, Directorate of plant protection, Quarantine and storage, Faridabad, Haryana.
4. The certificate of registration shall be in Form II or Form II-A as the case may be and shall be subject to such conditions as specified therein.
6A. (2) Issue of Duplicate Certificate of Registration
A fee of rupees one Hundred shall be paid in the form of demand draft drawn on the state bank of India, Faridabad in favour of the Accounts Officer, directorate of Plant protection, Quarantine & storage, Faridabad, Haryana for a duplicate copy of a certificate of Registration if the original is defaced, damaged or lost.
6B. (40 Addition, Deletion or Alteration on the Certificate of Registration including Labels and Leaflets.
A fee of rupees one hundred shall be paid in the form of demand draft drawn on the State bank of India, faridabad, in favour of the Accounts Officer, Directorate of plant protection, Quarantine and storage, faridabad, Haryana on each occasion for each.
1. Subsituted by GSR 533(e)( dt. 6.8.1993.)
2. Substituted by insecticides (Amendment ) rules, 1999, dt. 20-5-1999
3. Inserted by GSR 533(E) dt. 6.8.1993
4. Inserted by insecticides (amendment ) rules, 1999, dt 20-5-1999
Certificate of registration for addition deletion, alteration on the certificate of registration including labels and leaflets.
7. Appeal
1. An appeal against any decision of the registration committee under section 9 shall be preferred in writing 2 in Form II-B in duplicate to the central government in the Department of Agriculture.
2. The appeal shall be in writing and shall set out concisely and under distinct heads the grounds on which the appeal is preferred.
3. every appeal shall be accompanied by a demand draft of rupees one thousand towards fee and a copy of the decision appealed against.
4. the fee payable for preferring an appeal shall be paid by a demand draft drawn on the State bank of India, New Delhi in favour of the pay and accounts officer department of Agriculture & cooperation, New Delhi.
8. Manner of publication of refusal to register or cancellation of certificate of registration
A refusal to register an insecticide or a cancellation of the certificate of registration of an insecticide shall also be published in any two English and hindi newspapers which have circulation in a substantial part of India and in any of the journals published by the Department of Agriculture of the Government of India.
GRANT OF LICENCES
9. Licences to Manufacture Insecticides
1. application for the grant or renewal of a licence to manufacture any insecticide shall be made in Form III or form IV as the case may be to the licensing officer and shall be accompanied by a fee of rupees two thousand for every insecticide and a maximum of rupees twenty thousand for all insecticides for which the licence is applied.
2. if an insecticide is proposed to be manufactured at more than one place, separate applications shall be made and separate licences shall be issued in respect of every such place.
3. a licence to manufacture insecticides shall be issued in Form V and shall be subject to the following conditions namely:
i. the licence and any certificate of renewal shall be kept on the approved premises and shall be produced for inspection at the request of an insecticide inspector appointed under the act or any other officer or authority authorised by the licensing officer.
ii. Any change in the expert staff named in the licence shall forthwith be reported to the licensing officer.
iii. If the licensee wants to undertake during the currency of the licence to manufacture for sale of additional insecticides he shall apply to the licensing officer for the necessary endorsement in the licence on payment of the prescribed fee for every category of insecticides.
iv. An application for the renewal of a licence shall be made as laid down in rule 11.
1. substituted by insecticides (amendment ) rules, 1999, dt, 20.5.1999
2. substituted by GSR 474(E) dt. 24-7-1977, sec 3(ii), dt 24-7-1976.
v. the licensee shall comply with the provisions of the act and the rules made thereunder for the time being in force.
vi. the licensee shall obtain ISI mark certificate from bureau of Indian Standard within three months of the commencement of the manufacture.
vii. No insecticides shall be sold or distributed without ISI mark certification.
4. a licensing officer may after giving reasonable opportunity of being heard, to the applicant refuse to grant any licence.
(4A) No licence to manufacture an insecticide shall be granted unless the licensing officer is satisfied that necessary plant and machinery safety devices and first aid facilities, etc., exist in the premises where the insecticide is proposed to be manufactured.
5. (3) a fee of rupees one hundred shall be paid for a duplicate copy of a licence issued under this rule, if the original is defaced, damaged or lost.
10. Licence for Sale etc., of Insecticides
1. applications for the grant or renewal of a licence to sell, stock or exhibit for sale or distribute insecticides shall be made in form VI for Form VII, as the case may be to the licensing officer and shall be a accompanied by the fees specified in sub rule (2).
2. (3) the fee payable under sub-rule (1) for grant or renewal of a licence shall be rupees five hundred for every insecticide for which the licence is applied subject to place, if any insecticide is sold, stocked or exhibited for sale at more than one place.
Provided that the maximum fee payable in respect of insecticides commonly used for household purposes and registered as such shall be rupees two hundred fifty for every place;
PROVIDED FURTHER that, if the place of sale is established in the rural areas, the fee shall be one fifth of the fee specified in this rule.
3. if any insecticide is proposed to be sold or stocked for sale at more than one place, separate applications shall be made and separate licences shall be issued in respect of every such place 4 and for every insecticides.
3A) 5 Pest Control Operators-
i. any person who desires to undertake pest control operations, with the use of Aluminium Phosphide, methyl bromide. Ethylene dibromide or as notified shall apply for a licence in Form VI-A with a fee of rupees one thousand for each place of operation. The licence granted for such operations shall be valid for a period of five years provided that the licence shall be renewed after verification or inspection at the expiry of this period on application in Form VI-B for a further period of five years with an application fee of rupees one thousand.
ii. A licence to stock and use insecticides for pest control operators will be issued in Form VI-C.
1. sub-clause (vi) and (vii) inserted by Insecticides (Amendment Rules, 1999, dt 20-05-1999.
2. Substituted by GSR 533(E), dt. 6-8-1993, w.e.f. 6-8-1993.
3. Substituted by Insecticides (Amendment) Rules, 1999,dt. 20-5-1999.
4. Added by GSR 533(E), dt. 6-8-1993, w.e.f. 6.8.1993.
5. Inserted by Insecticides (Amendment) Rules, 199.dt. 20-5-1999.
iii. Any person who applies for grant of licence for undertaking pest control operations should be at least a graduate in Agriculture or in science with Chemistry as a subject with a certificate of minimum 15 days training from any of the following institutions-Central Food Technological Research Institute, Mysore; Indian Grain storage Institute, Hapur and National Plant Protection Training Institute, Hyderabad.
iv. For undertaking fumigation, the pest control operators shall have to contain special permission from the plant protection adviser to the Government of India in addition to obtaining licence. The plant protection adviser will grant such permission as per procedure or guide lines approved by the Registration committee.
v. The commercial pest control operators shall adhere to the prescribed guidelines or procedures as laid down by the Plant Protection adviser to the Government of India in regard to the fumigation operations undertaken by them.
4. (1) A licence to sell, stock or exhibit for sale or distribute insecticides shall be issued in Form VIII and shall be subject to the following conditions, namely:
i. The licence shall be displayed, in a prominent place in the part of the premises open to the public.
ii. The licence shall comply with the provisions of the Act, and the rules made thereunder of the time being in force.
iii. (2) Where the licensee wants to sell, stock or exhibit for sale or distribute any additional insecticides during the currency of the licence on payment of fees specified in sub-rule (2).
iv. (3) if the licensing officer is satisfied that a particular insecticide is harmful to human beings animals or environment, he may after recording reasons and referring the Insecticide to the Insecticide analyst, prohibit temporarily its sale for a period of thirty days or till he obtains the report of the analyst, whichever is earlier.
(4A) (4)
i. Every person shall along with his application for grant or renewal of a licence to undertake operation or sell, stock or exhibit for sale or distribute Insecticides, file a certificate from the principal whom he represents or desires to represent the Form VI-D.
ii. The certificate to be issued by the principal shall be addressed to the licensing officer of the concerned area and shall contain full particulars of the principal including their registration and manufacturing licence numbers, full name and address of the person proposed to be authorised and also the type of formulations to be used in commercial pest control operations, sold, stocked or exhibited, for sale or distribution.
1. Substituted by GSR 474(E),dt. 24-7-19977.
2. Substituted by GSR 533(E), dt. 6-8-1993.
3. Inserted by Insecticides (Iind Amendment) Rules, 1999,dt. 20-5-1999.
4. Substitued by Insecticides (Iind Ammendment) Rules, 1999,dt. 20-5-1999.
iii. In order to verify the genuineness or otherwise of the certificate, the principal shall send to the licensing officer of the State where he intends to sell his products an adequate number of copies of the specimen signature or the specimen signatures of the persons authorised in writing to issued the principal's certificate.
iv. In case of suspension, revocation or cancellation of the certificate, the principal shall forthwith intimate the licensing officer having jurisdiction.
5 (1) A licensing officer may, after giving a reasonable opportunity of being heard to the applicant refuse to grant any licence.
6 (2) A fee of rupees one hundred shall be payable for a duplicate copy of a licence issued under this rule if the original is defaced, damaged or lost.
(10A.) (3) Segregation and Disposal of Date-expired Pesticides
a. Immediately after the date of expiry all such stocks after being segregated and stamped not for sale or not for use or not for manufacture as the case may be shall be kept by the licensee in a separate place specially demarcated for the purpose with a declaration date expired insecticide, to be exhibited on the conspicuous part of the place.
b. (4) All such stocks then shall be disposed of in an environment friendly manner as may be specified from time to time by the Central Government in consultation with the Central Insecticides Board and shall not be used for remanufacture.
10B. Special Provision with Regard to Sulphur
With regard to insecticides sulphur and its formulations all licensees shall--
a. Observe all precautions to prevent its theft;
b. Report any such theft to the nearest police authorities promptly; and
c. Maintain a separate register showing names and addresses of all the persons to whom it has been sold or distributed and the quantities to be sold or distributed.
10C. Prohibition against Sale or Storage of Insecticides in Certain Places
No person shall manufacture store or expose for sale or permit the sale or storage of any insecticide in the same building where any articles consumable by human beings or animals are manufactured, stored or exposed for sale.
Explanation: Nothing contained in this rule will apply to the retail sales of household insecticides from the building wherefrom other articles consumable by human beings or animals are usually sold provided such household insecticides have been registered as such and are packed and labeled in accordance with these rules.
11. Duration of Licences
a. (1) Any licence issued or renewed under this chapter shall, unless sooner suspended or cancelled, be in force for a period of two cancelled, be enforce for a period of two calendar year:
1. Substituted by GSR 533(E),dt. 6-8-1993.
2. Substituted by insecticides (Amendment) rules,1999, dt. 20-05-1999.
3. Inserted by GSR 533(E), dt. 6-8-1993.
4. Substituted by Insecticides (Iind amendment Rules, 1999, dt. 20-5-1999.
PROVIDED that the licence to manufacture insecticides, if any issued on the basis of provisional registration granted under sub-section(3-B of section 9 shall expire on the date of expiry of the provisional registration;
PROVIDED FURTHER that the licence granted by endorsement on the main licence under clause (iii) of sub-rule (8) of rule 9 or under clause (iii) of sub-rule (4) of rule 10 or under sub-rule (3) of rule 10-A shall expire or be renewable along with the main licence.
b. An application for the renewal of a licence shall be made before its expiry and if such an application is made after the date of expiry but within three months from such date, a late fee of-
i. (1) rupees five hundred for the first month or part thereof, rupees one thousand for the second month or part thereof and rupees one thousand and five hundred for the third month or part thereof, in case of licence to manufacture insecticides or to carry pest control operations;
ii. rupees one hundred for the first month or part thereof, rupees two hundred for the second month or part thereof and rupees three hundred for the third month or part thereof in case of any other licence shall be paid alongwith the application for renewal:
PROVIDED that where the amin pest control operation unit or the place of sale is located in the rural areas, the late fee shall be one-fifth of the said late fee:
PROVIDED FURTHER that in case of death or disability of the licensee the licensing officer may after recording reasons in writing, exempt the applicant from payment of the late fee.
Explanation:
(1) Where an application for renewal is made before the expiry of the licence and the order regarding refusal or renewal is passed after the expiry of the licence, the applicant shall be deemed to have been carrying on his business in accordance, with the expired licence (from the date of expiry till the date of communication of the final order on that application.
(2) Where an application for renewal is made after the expiry of the licence with late fee, the applicant shall be deemed to have been carrying on his business in accordance, with the expired licence (from the date of expiry) till the date of communication of the final order on that application.
(c) (2) The licence shall continue to be in force until it is renewed or revoked. Where an appeal is preferred under section 15, the licence shall continue to be revoked until disposal of appeal or as ordered by the appellate authority pending disposal of the appeal.
a. the licensing officer may, after giving an opportunity of being heard, refuse to renew the licence (3) for reasons to be recorded in writing
12. Conditions of Licence
a. (4) Subject to conditions laid down in sub-rule 930 of rule 9, under sub rule (4) of rule 10, a licence shall not be granted to any person under this chapter unless the licensing
1. Sub-clauses (I) and (ii) substituted by Insecticides (Amendment) rules, 1999, dt. 20-5-1999.
2. Clause (c) substituted by Insecticides (amendment) rules, 1999, dt. 20-5-1999.
3. Substituted for words "and on such refusal the fee paid for such renewal and the penalty, if any paid shall be refunded to the applicant" by GSR 533(E), dt. 6-8-1993.
4. Substituted by GSR 474 (E) dt. 24-7-1976.
Officer is satisfied and the premises in respect of which licence is to be granted are adequate and equipped with proper storage accommodation for avoiding any hazards for preserving the properties of insecticides in respect of which the licence is granted.
b. In granting a licence, the licensing officer shall have regard, among other things to-
i. the number of licences granted in the locality during any year; and
ii. the occupation, trade or business carried on by the applicant
13. Varying or Amending a Licence
1. The licensing officer may either on an application made by the licensee or if he is satisfied that the conditions under which a licence has been granted under this chapter have been changed that it is necessary so to do vary or amend a licence 1 [after satisfying himself that the Registration Committee has amended the registration certificate and ] after giving an opportunity of being heard to the person holding the licence.
14. Transfer of Licence
1. the holder of a licence may at any time before the expiry of the licence, apply for permission to transfer the licence to any other person.
2. the application under sub-rule (1) shall be accompanied by a fee of rupees one hundred.
3. the licensing officer may, after such inquiry as he thinks fit accord permission to transfer the licence and on such permission being given an endorsement to that effect shall be made in the licence.
4. If the permission to transfer a licence is refused, the fee paid therefor shall be refunded to the applicant.
15. Issuing Cash Memo and Maintenance of Records
1. All sales of insecticides shall be made by a bill or cash memo in the form prescribed under any law.
2. All sales of insecticides made to licensed manufacturer (formulator or packer), stockist, distributor, dealer, retailer or to a bulk consumer shall be entered insecticide wise, in a register in Form XIII and a state wise monthly return of all sales to actual consumers shall be sent to the licensing officer, in Form XIV within 15 days from the close of the month.
3. Every importer or manufacturer of insecticide shall maintain a stock register in Form XV or technical
grade insecticides and in Form XVI to formulate insecticides.
4. Without prejudice to the foregoing, the Central Government or the State Government or any other person authorised by it may, by notice in writing require any importer or manufacturer or any other person dealing in insecticides to furnish within the time specified in the notice, such information with respect of any insecticides or any batch thereof, including the particulars or all persons to whom it has been sold or distributed, as it may consider necessary.
1. inserted by GSR 533(E), dt 6-8-1993.
2. Substituted by insecticides (Amendment) rules 1999, dt. 20-5-1999
3. Substituted by GSR 533(E), dt. 6-8-1993.
PACKING AND LABELLING
16. Prohibition of Sale or Distribution unless Packed and Labelled
No person shall stock or exhibit for sale or distribute 1 [or cause to be transported] any insecticide unless it is packed and labelled in accordance with the provisions of these rules.
17. Packaging of Insecticides
1. Every package containing the insecticides shall be of a type approved by the Registration Committee.
2. Before putting any insecticide into the primary package every batch thereof shall be analysed as per the relevant specifications of the manufacture thereof, in accordance with the approved methods of analysis and the result of such an analysis shall be recorded in the register maintained for the purpose. If any insecticide is put in the package it shall be presumed that it is fit and ready for sale, distribution or use for which it is intended notwithstanding the fact that ny further steps are still required to be taken to make it marketable.
18. Leaflet to be Contained in Package
(1)](2) The packing of every insecticides shall include a leaflet containing the following details, namely:
a. The plant disease, insects and noxious animals or weeds for which the insecticide is to be applied, the adequate direction concerning the manner in which the insecticide is to be used at the time of application;
b. Particulars regarding chemicals harmful to human beings, animals and wild life, warning and cautionary statements including the symptoms of poisoning suitable and adequate safety measures and emergency first-aid treatment where necessary;
c. Cautions regarding storage and application of insecticides with suitable warnings relating to inflammable, explosive or other substance harmful to the skin;
d. Instructions concerning the decontamination or safe disposal of used containers;
e. A statement showing the antidote for the poison shall be included in the leaflet and the label;
f. If the insecticide is irritating to the skin, nose, throat or eyes, a statement shall be included to that effect.
g. (1) common name of the insecticide as adopted by the International standards orginisation and where such a name has not yet been adopted such other name as may be approved by the Registration Committee.
(2) (1) Two copies of the leaflets duly approved by the Registration Committee and signed by the Secretary Registration Committee, shall be returned to the manufacturer and one copy to the state licensing officer.
1. Inserted by GSR 533(E), dt. 6.8.1993
2. Renumbered by GSR 533(E), dt. 6.8.1993.
19. Manner of Labelling
1. The following particulars shall be either printed or written in indelible ink on the label of the innermost container of any insecticide and on the outer most covering in which the container is packed:
i. Name of the manufacturer (if the manufacturer is not the person in whose name the insecticide is registered under the Act, the relationship between the person in whose name the insecticide has been registered and the person who manufactures, packs or distributes or sells shall be stated).
ii. Name of insecticide (brand name or trade mark under which the insecticide is sold).
iii. Registration number of the insecticide.
iv. Kind and name of active and other ingredients and percentage of each. (Common name accepted by the International Standards Organisation or the Indian Standards Institutions of each of the ingredients shall be given and if no common name exists, the correct chemical name which conforms most closely with the generally accepted rule of chemical nomenclature shall be given).
v. Net content of volume. (The net contents shall be exclusive of wrapper or other material. The correct statement of the net contents in terms of weight, measure, number of units of activity as the case may be shall be given. The weight and volume shall be expressed in the metric system).
vi. Batch number.
vii. Expiry date i.e. up to the date the insecticide shall retain its efficiency and safety.
viii. Antidote statement
2. The label shall be so affixed to the containers that it cannot be ordinarily removed.
3. The label shall contain in a prominent place and occupying not less than one-sixteenth of the total area of the face of the label, a square, set at an angle of 45° (diamond shape). The dimension of the said square shall depend on the size of the package on which the label is to be affixed. The said square shall be divided into two equal triangles, the upper portion shall contain the symbol and signal word specified in sub-rule (40 and the lower portion shall contain the colour specified in sub-rule (5).
4. The upper portion of the square, referred to in sub-rule (30 shall contain the following symbols and warning statements-
i. (i ) insecticides belonging to Category I (Extremely toxic ) shall contain the symbol of a skull and cross-bones and the word "POISON" printed in red; the following warning statements shall also appear on the label at appropriate place, outside the triangle-
a. KEEP OUT OF THE REACH OF CHILDREN
b. IF SWALLOWED, OR IF, SYMPTOMS OF POISONING OCCUR CALL PHYSICIAN IMMEDIATELY';
ii. insecticides in Category II (highly toxic) will contain the word POISON printed in red and the statement KEEP OUT OF THE REACH OF CHILDREN shall also appear on the label at appropriate place, outside the triangle,
iii. insecticides in Category III( moderately toxic ) shall bear the word " DANGER" and the statement "KEEP OUT OF THE REACH OF CHILDREN";
iv. shall also appear on the label at suitable place outside the triangle;
v. insecticides in category IV (slightly toxic) shall bear the word "CAUTION".
5. The lower portion of the square referred to in sub-rule (4) shall contain the colour Colour specified in column (4) of the table below, depending on the classification of the insecticides specified in the corresponding entry in column (1) of the said table.
6.
7. In addition to the precautions to be undertaken under sub-rules (3), (4) and (5) the label to be affixed in the packages containing insecticides which are highly inflammable
shall indicate that it is inflammable or that the insecticides should be kept away from the heat or open flame and the like.
8. The label and the leaflets to be affixed or attached to the package containing insecticides shall be printed in Hindi, English and in one or two regional languages in use in the areas where the said packages are likely to be stocked, sold or distributed.
9. Labelling of insecticides must not bear any unwarranted claims for the safety of the producer or its ingredients. This includes statements such as "SAFE" NON-POISONOUS" " NON-INJURIOUS" or "HARMLESS" with or without such qualified phrase as " when used as directed"
20. Prohibition against Altering Inscriptions, etc. on Containers, Labels or Wrappers of Insecticides
No person shall alter, obliterate or deface any inscription or mark made or recorded by the manufacturer on the container, label or wrapper of any insecticide:
PROVIDED that nothing in this rule shall apply to any alteration of any inscription or mark, made on the container, label or wrapper of any insecticide at the instance, direction or permission of the Registration Committee.
INSECTICIDE ANALYSIS AND INSECTICIDES INSPECTORS
21. Qualification of Insecticide Analyst
A person shall be eligible for appointment as an insecticide analyst under the Act only if he possesses the following qualifications, namely;
a. a graduate in Agriculture or a graduate in science with chemistry as special subject; and
b. adequate training in analysing insecticides in a recognized laboratory.
22. Powers of Insecticides Analyst
1. The Insecticides analyst shall have the power to call for such information or particulars or do anything as may be necessary for the proper examination of the samples sent to him either from the Insecticide Inspector or the person whom the sample was obtained.
23. Duties of Insecticides Analyst
1. the Insecticides analyst shall analyst or cause to be analysed or test or cause to be tested such samples of insecticides as may be sent to him by the insecticide inspector under the provisions of the act and shall furnish report or results of such tests or analysis.
2. An insecticides analyst shall, from time to time, forward to the state government reports giving the result of analytical work and investigation with a view to their publication at the discretion of the Government.
24. Procedure on Receipt of Sample
1. On receipt of a package from an Insecticide Inspector containing a sample for test or analysis, the Insecticides analyst shall compare the seals on the packet with the specimen impression received separately and shall note the condition of the seals on the packet.
2. in making the test or analysis of insecticides, it shall be sufficient of the insecticides analyst follows that specifications and the months of examination of samples as approved by the registration committee.
3. After the test or analysis has been carried out under sub-rule (2), the insecticides analyst shall forthwith supply to the insecticides inspector a report in triplicate inform IX of the result of test of analysis.
25. Fees Payable for Testing or Analysis
1. The fees payable for testing or analysing insecticides under sub-section (5) of Sec. 24 of the Act shall be as specified in the Second Schedule.
2. The fee payable for testing or analysing samples received from the Insecticides Inspector shall also be as specified in the Second Schedule: Provided that the Central Government may, after taking into consideration the genuine difficulties, of any particular State Government, exempt from the payment of the fee for such period as it may consider reasonable.
26. Qualifications of Insecticides Inspector
A person shall be eligible for appointment as an Insecticides Inspector under the act only if he possesses the following qualifications, namely;
a. graduate in Agriculture, or Graduate in science with Chemistry as one of the subjects;
b. adequate field experience.
27. Duties of Insecticides Inspector
The Insecticides Inspector shall have the following duties, namely:
1. to inspect not less than three times in a year all establishments selling insecticides within the area of his jurisdiction;
2. to satisfy himself that the conditions of licence are being complied with;
3. to procure and send for test and analysis, samples of insecticides which he has reason to suspect are being sold, stocked or accepted for sale in contravention of the provisions of the act or rules made thereunder;
4. to investigate any complaint in writing which may be made to him;
5. to institute prosecution in respect of breaches of the Act and the Rules made Thereunder;
6. to maintain a record of all inspections made and action taken by him in the performance of his duties including the taking of samples and seizure of stocks and to submit copies of such record to the licensing officer;
7. to make such inquiries and inspections as may be necessary to detect the sale and use of insecticides in contravention of the Act.
28. Duties of Inspectors Specially Authorised to Inspect Manufacture of Insecticides
It shall be the duty of any inspector authorised to inspect the manufacture of Insecticides-
1. to inspect not less than twice a year all premises licensed for the manufacture of insecticides within the area of
his jurisdiction and to satisfy himself that the conditions of the licence and the provisions of act or the rules
made thereunder which are being observed and the conditions and provisions if any which are not being observed;
2. to send forthwith to the licensing officer after each inspection, a detailed report indicating the conditions
of the licence and the provisions of the act or rules
made thereunder which are being observed and the conditions and provisions, if any, which are not being observed;
3. to draw samples of insecticides manufactured on the premises and send them for test or analysis in accordance with these rules;
4. to report to the government all occurrences of poisoning.
29. Prohibition of Disclosure of Information
Except for the purpose of official business or when required by a court of law an insecticides inspector shall not disclose to any person any information acquired by him in the performance of his official duties.
30. Form of Order not to Dispose of Stock
An order by the insecticides inspector requiring a person not to dispose of any stock in his possession shall be in form x.
31. Prohibition of Sale
No person in possession of an insecticide in respect of which an insecticides inspector has made an order under rule 30 shall, in contravention of that order, sell or otherwise dispose of any stock of such insecticide.
32. Form of Receipt for Seized Insecticides
A receipt by an insecticides inspector for the stock of any insecticide seized shall be in form XI.
33. Form of Intimation for Purposes of Taking Samples
Where an inspector takes a sample of an insecticide for the purpose of test or analysis he shall intimate such purpose in writing in Form XII to the person from whom he takes it.
34. Dispatch of Samples for Test or Analysis
1. Sample for test or analysis under the Act shall be sent by registered post or by hand in sa sealed packet together with a memorandum in Form XII in an outer cover addressed to the Insecticide analyst.
2. The packet as well as the outer cover shall be marked with a distinct mark.
3. A copy of the memorandum in form XIII together with a specimen impression of the seals of the Inspector and of the seals, if any, of the person from whom he takes such samples, shall be sent separately by registered post or by hand to the insecticides analyst.
TRANSPORT AND STORAGE OF INSECTICIDES IN TRANSIT BY RAIL, ROAD OR WATER
35. Manner of Packing, Storage while Transporting
1. Packages containing insecticides, offered for transport by rail, shall be packed in accordance with the conditions specified in the Red Tariff, issued by the Ministry of Railways.
2. No insecticide shall be transported or stored in such a way as to come into direct contact with foodstuffs or animal feeds.
3. No foodstuffs or animal feeds which got mixed up with insecticides as a result of any damage to the packages containing insecticides during transport or storage shall be released to the consignees unless it has been examined for possible contamination by competent authorities, as may be notified by the State Government.
4. If any insecticide is found to have leaked out in transport or storage it shall be the responsibility of the transport agency or the storage owner to take such measure urgently to prevent poisoning and pollution of soil or water, if any.
36. Conditions to be Specified for Storage of Insecticides
1. The package containing insecticides shall be stored in separate rooms or premises away from the rooms or premises used for storing other articles or shall be kept in separate almirahs under lock and key depending upon the quantity and nature of the insecticides.
2. The rooms or premises means for storing insecticides shall be well built, dry, well-lit and ventilated and of sufficient dimension.
PROVISIONS REGARDING PROTECTIVE CLOTHING, EQUIPMENT, AND OTHER FACILITIES FOR WORKERS DURING MANUFACTURE
37. Medical Examination
1. All persons who are engaged in the work of handling, dealing or otherwise coming in contact with the insecticides during manufacture/formulation of insecticides or being engaged during spraying operation shall be examined medically before their employment and at lest quarterly in the case of those engaged in manufacturing/formulation units and yearly in other cases including operators while in service by a qualified doctor who is aware of risks to which such persons are exposed. Particulars of all such persons, including the particulars of their medical examination, shall be entered in a register in Form XVII. Where the insecticide in question is an organophos phorus compound or a carbamate compound, the blood choline storages level shall be measured at least once a month of all persons working in the manufacturing units. The blood residue estimation shall be done once in a year in the case of persons working with organo cvhlorine group of insecticides in a manufacturing/formulation unit. In the case of spraying people working with the pest control operators, the estimation of cholinesterase level (if working with organophosphorus or carbamate compounds) and blood residue (if working with organochlorine group) shall be conducted as and when advised by the doctor as part of the general medical test.
2. Any person showing symptoms of poisoning shall be immediately examined and given proper treatment.
• Substituted for "manner of packing storage while in transit by rail" by insecticides (Iind amendment) Rules, 1999, dt.20-05-1999.
• Substituted by GSR 533 (E), dt. 6-8-1993.
38. First Aid Measures
In all cases of poisoning first aid treatment shall always be given before the physician is called. The Indian Standard Guide for handling cases of insecticide poisoning-part I first-aid measures [IS: 4015 (part I)-1967] and Part II symptoms, diagnosis and treatment [IS: 4015 (part II)-1967] shall be consulted for such first-aid treatment in addition to any other books on the subject. The workers also should be educated regarding the effects of poisoning and the first-aid treatment to be given.
39. Protective Clothing
1. Persons handling insecticides during its manufacture, formulation, transport, distruction or application, be adequately protected with appropriate clothing.
2. The protective clothing shall be used wherever necessary, in conjunction with respiratory devices as laid down in rule 40.
3. The protective clothing shall be made of materials which prevent or resist the penetration of any form of insecticides formulations. The materials shall also be washable so that the toxic elements may be removed after each use.
4. A complete suit of protective clothing shall consist of the following dresses, namely:
a. Protective outer garment/overalls/hood/hat;
b. Rubber gloves or such other protective gloves extending half-way to the fore-arm, made of materials impermeable to liquids;
c. Dust-proof goggles;
d. Boots.
40. Respiratory Devices
For preventing inhalation of toxic dusts, vapours of gases, the workers shall use any of the following types of respirators or gas-masks suitable for the purpose, namely:
a. Chemical cartridge respirator;
b. Supplied-air respirator;
c. Demand flow, type respirator;
d. Full-face or half-face gas-masks with canister.
In no case shall be concentrates of insecticides in the air where the insecticides are mixed exceed the maximum permissible values.
41. Manufactures, etc. to keep Sufficient Quantities of Antidotes and First-aid Medicines
The Manufacturers and distributors of insecticides and persons who undertake to spray insecticide on a commercial basis ( hereafter in these rules referred to as operators) shall keep sufficient stocks of such first-aid tools, equipment's, antidotes, injections and medicines as may be required to \treat poisoning cases arising from inhalation, skin, contamination, eyes contamination and swallowing.
42. Training of Workers
The manufactures and distributors of insecticides and operators shall arrange for suitable training in observing safety precautions and handling safety equipment provided to them.
43. Aerial Spraying Operations
The aerial application of insecticides shall be subject to the following provisions, namely;
a. Marking of the area shall be the responsibility of the operators;
b. The operators shall use only approved insecticides and their formulations at approved concentration and height;
c. Washing decontamination and first-aid facilities shall be provided by the operators;
d. All aerial operations shall be notified to the public not less than twenty-four hours in advance through competent authorities;
e. Animals and persons not connected with the operations shall be prevented from entering such areas for a specific period; and
f. The pilots shall undergo specialization training including clinical effects of the insecticides.
44. Disposal of used Packages, Surplus Material and Washings of Insecticides
1. It shall be the duty of manufacturers, formulators of insecticides and operators to dispose packages or surplus materials and washing in a safe manner so as to prevent environmental or water pollution.
2. The used packages shall not be left outside to prevent their re-use.
3. The packages shall be broken and buried away from habition.
MISCELLANEOUS
45. Places at which the Insecticides may be Imported
No insecticides shall be imported into India except through one of the following places, namely;
1. Ferozepore Cantonment and Amritsar railway stations in respect of insecticides imported by rail across the frontier with the West Pakistan.
2. Ranaghat, Bongaon and Mahiassan railway stations in respect of insecticides imported by rail across the frontier with the East Pakistan.
3. Madras, Calcutta, Bombay, Cochin and Kandla-in respect of insecticides imported by sea into India.
4. Madras, Calcutta, Bombay, Delhi and Ahmedabad-in respect of insecticides imported by air into India.
46. Travelling and Other Allowances Payable to the Members of the Board, etc.
The members of the Board, Registration Committee and any other Committee appointed by the board shall be entitled to such travelling and other allowances for attending meetings of the Board, Registration Committee or other committee as the case may be as are for the time being admissible to Grade I officers of the Central government.
THE DESTRUCTIVE INSECTS AND PESTS ACT, 1914
An act to prevent the introduction into and the transport from one state to another in India of any insects, fungus or other pest which is or may be destructive to crops. Whereas it is expedient to make provision for preventing the introduction into India of any insect, fungus or other pests, which is or may be destructive to crops; it is hereby enacted as follows:
1. Short Title: This act may be called the Destructive Insects and Pests Act, 1914.
2. It extends to the whole of India.
3. Definitions: In this Act, unless there is anything repugnant in the subject or context,-
a. "Crops" includes all agricultural or horticultural crops, and all trees, bushes or plants;
b. "Import" means the bringing or taking by sea, land or air, across any customs frontier defined by the Central Government;
c. "Infection" means infection by any insect, fungus or other pest injurious to a crops.
1. Power of the Central Government to regulate or prohibit the import of articles likely to infect. (i) The Central Government may, by notification in the Gazettee of India, prohibit or regulate, subject to such restrictions and conditions as the Central Government may impose, the import into India, or any part thereof, or any specified place therein, of any articles or class of articles likely to cause infection to any crop or of insects generally or by class of insects.
2. A notification under this section may specify any article or class of articles or any insect or class of insects either generally or in any particular manner, whether with reference to the country of origin, or the route by which imported or otherwise.
1. Operation/of Notification under Section 3. A notification under section 3 shall operate as if it had been issued under section 19 of the Sea Customs Act, 1978 (VII of 1878), and the officers of Customs at every port shall have the same powers in respect of any article with regard to the importation of which such a notification has been issued as they have for the time being in respect of any article the importation of which is regulated, restricted or prohibited by the law relating to sea Customs and the law for the time being in force relating to Sea Customs or any such article shall apply accordingly.
4A. Power of Central Government to regulate or prohibit transport from State to State of Insects or articles likely to infect.-The Central Government may, by notification in the Official Gazette, prohibit or regulate, subject to such conditions as the Central Government may impose, the export from a State or the transport from the State to another State in India of any article or class of articles likely to cause infection to any crop or of insects generally or any class of insects.
4B. Refusal to carry article of which transport is prohibited:
When a notification has been issued under section 4A, then, notwithstanding any other law for the time being in force, the person responsible for the booking of goods or parcels at any railway station or inland steam vessel station:
a. Where the notification prohibits export or transport, shall refuse to receive for carriage at, or to forward or knowingly allow to be carried on the railway or inland steam vessel from that station anything, of which import or transport is prohibited, consigned to any place in India outside the state in which such station is situated; and
b. Where the notification imposes conditions upon export or transport, shall so refuse, unless the consignor produces, or the thing consigned is accompanied by a document or documents of the prescribed nature showing that these conditions are satisfied.
4C. Deleted. 4D.
Power of Central Government to make rules:
The Central Government may, by notification in the Official Gazettee, make rules prescribing the nature of the documents which shall accompany any article or insect the export or transport whereof is subject to conditions imposed under section 4A, or which shall be held by the consignor or consignee thereof, the authorities which may issue such documents and the manner in which the documents shall be employed.
Power of Local Government to make rules.
1. The State Government may make rules for the detention, inspection, disinfection or destruction of any insect or class of insects or any article or class of articles in respect of which a notification has been issued under section 3 or under section 4 A or of any article which may have been in contact or proximity thereto, and for regulating the powers and duties of the officers whom it may appoint in this behalf.
2. In making any rule under this section the State Government may direct that a breach thereof shall be punishable with fine, which may extend to one thousand rupees.
5A. Penalties:-Any person who knowingly exports any article or insect from a State or transports any article or insect from one State to another in India in contravention o f a notification issued under section 4A, or attempts so to export or transport any article or insect, and any person responsible for the booking of goods or parcels at a railway or inland steam vessel station who knowingly contravenes the provisions of section 4B shall be punishable with fine which may extend to two hundred and fifty rupees and upon any subsequent conviction, with fine which any extend to two thousand rupees.
Protection to persons acting under Act:-No suit, protection or other legal proceedings shall lie against any person for anything in good faith done or intended to be done under this Act.
List of Amending Acts and Adoption orders.
1. The Destructive Insects and Pests (Amendment) Act, 1930(20 of 1930).
2. The Government of India (Adoption of Indian Laws) Order,1937.
3. The Destructive Insects and Pests (Amendment) Act, 1938 (6 of 1938).
4. The Destructive Insects and Pests (Amendment) Act,1939 (3 of 1939).
5. The Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948.
6. The adaptation of Laws, Order, 1950.
7. The part B States ( Laws) Order,1951, (3 of 1951).
8. The Jammu and Kashmir (Extension of Laws) Act, 1956 (62 of 1956).
Recent Amendments to PFS Order, 1989
(Plant Protection Division)
S.O. 467(E). In exercise of the powers conferred by sub-section(1) of section 3 of the Destructive Insects and Pests Act, 1914 (2 of 1914), the Central Government hereby makes the following Order further to amend the Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989, namely:-
(1) This Order may be called the Plants, Fruits and Seeds (Regulation of Import into India) (Amendment) Order, 2000
(2) It shall come into force on the date of its publication in the Official Gazette. In the Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989,-
(i) In paragraph 3, in sub-paragraph (2), for the existing clause
(ii) the following clause shall be substituted, namely:- "(ii) Each application shall be accompanied by a registration fee of Rs. 150 (rupees one hundred fifty) for the import of seeds, fruits, plants and plant products for consumption or processing and Rs. 300 (rupees three hundred) for the import of seeds, plants and planting material for sowing or planting, in the form of a bank demand draft in favour of the Pay and Accounts Officer concerned;"
COOPERATIVE DIVISION
1. As a result of the recommendations of the Expert Committee appointed by the Government of India in 1970 to review the working of the National Cooperative Development Corporation, the National Cooperative Development Corporation act, 1962 (26 of 1962) under which the Corporation was set up, has been modified in 1973 and 1974 through two amendments passed by Parliament. These changes have been carried out in the principal Act.
2. The amendments of 1973 extending, among others, the jurisdiction of the NCDC to the State of Jammu & Kashmir came into force w.e.f. 21st August, 1973, while the changes except those relating to the constitution of the General Council and the Board of Management, contemplated in second amendments, were brought into force by the Government of India, with effect from 1st April, 1974, vide notification No.L.12011/3/74-MWS, dated the 26th March, 1974, a copy of which is at Annexure-III. The provisions regarding constitution of the General Council and Board of Management have been enforced w.e.f. 7th April, 1975 vide Notification No. F.L.12011/3/74-MWS dated 4th April, 1975.
3. The NCDC Act has been extended to Sikkim from 2nd October, 1975 vide Notification No. L-12012/19/73-CMP dated 22nd September, 1975.
Short Title Extent and Commencement Definitions: Construction of reference to any law not in force or any functionary not in existence in the State of Jammu and Kashmir.
Establishment of National Cooperative Development Corporation.
• An act to provide for the incorporation and regulation of a corporation for the purpose of planning and promoting programmes for the production, processing, marketing, storage, foodstuffs and certain other commodities on cooperative principles and for matters connected therewith.
Be it enacted by Parliament in the Thirteenth year of the Republic of India as follows:-
1. (1) This Act may be called the National Cooperative Development Corporation Act, 1962. 2. It extends to the whole of India. 3. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act.
2. In this Act, unless the context otherwise requires:-
a. "agricultural produce" includes the following classes of commodities, namely:-
i. 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.
(aa) "bank" means a nationalized bank and includes a scheduled bank;
(ab) "Board" means the Board of Management of the Corporation constituted under section 10;
(b) "Central Warehousing Corporation" means the Central Warehousing Corporation established under Section 17 of the Agricultural Produce (Development and Warehousing) Corporation Act, 1956.
(c) "Cooperative society" means a society registered or deemed to be registered under the Cooperative Societies Act, 1912 or under any other law with respect to cooperative societies for the time being in force in any State, which is engaged in any of the activities specified in sub-section (1 of section 9 and includes a cooperative land mortgage bank;
(d) "Corporation" means the National Cooperative Development Corporation established under sub-section (1) of Section 3.
(da) "foodstuffs", include
i. coconuts and arecanuts;
ii. eggs and egg products;
iii. fish, whether fresh, frozen, dried or preserved;
iv. fruits, whether fresh, dried or dehydrated;
v. honey;
vi. meat, whether fresh, frozen, dried or preserved;
vii. milk and milk products;
viii. vegetables;
(db) "General Council" means the General Council of the Corporation constituted under sub-section 4 of Section 3;
(dc) "Managing Director" means the managing director of the Corporation;
(dd) "Nationalised Bank" means a corresponding new banks as defined in the Banking Companies (Acquisition, and Transfer of Undertakings) Act, 1970;
(e) "Notified Commodity" means any commodity (other than agricultural produce and foodstuffs), which the Central Government may, by notification in the Office 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) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934;
(ga) "Scheduled Bank" means a bank for the time being included in the second schedule to the Reserve Bank of India Act, 1934;
(h) "State Bank" means the State Bank of India constituted under the State Bank of India Act, 1955;
(i) Year means the financial year.
2A. 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.
3.(1) The Central Government shall, by notification in the official Gazette, establish with effect from such date as may be specified in the notification, a Corporation by the name of the National Cooperative 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.
(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;
(ii) eight members, ex-officio to be nominated by the Central Government from such of its Ministries dealing with economic matters as it may think fit;
(iii) Deputy Governor of the Reserve Bank in-charge of rural credit, ex-officio;
(iv) Managing Director of the State Bank, ex-officio;
(v) Managing Director of the Food Corporation of India, constituted under Food Corporation act, 1964, ex-officio;
(vi) Managing Director of the Central Warehousing Corporation, constituted under the Warehousing Corporation Act, 1962, ex-officio;
(vii) Chairman of the Industrial Finance Corporation of India, constituted under the Industrial Finance Corporation Act, 1948, ex-officio;
(viii) A member representing banks, to be nominated by the Central Government;
(ix) Chairman of the National Cooperative Union of India, ex-officio;
(x) Chairman of the National Agricultural Cooperative Marketing Federation, ex-officio;
(xi) Chairman of the National Federation of Cooperative Sugar Factories, ex-officio;
(xii) Chairman of the All India Federation of Cooperative Spinning Mills, ex-officio;
(xiii) Chairman of the All India State Cooperative Banks Federation, ex-officio;
(xiv) eleven members other than those nominated under clause (xv), representing the States and the Union Territories, to be nominated by the Central Government, provided that not more than one person shall be so nominated from each State or Union Territory;
(xv) eleven members to be nominated by the Central Government from among the Chairman of the State level cooperative federations from the States and Union territories, provided that not more than one person shall be so nominated from each State or Union Territory;
(xvi) four members representing persons having special knowledge of, or practical experience in agricultural cooperative development, to be nominated by the Central Government;
(xvii) three members representing national level organizations engaged or interested in the promotion and development of cooperative programmes to be nominated by the Central Government; and
(xviii) the managing director.
(5) The powers and functions of the Corporation shall be exercised or discharged, as the case may be, by the General Council, and references elsewhere in this Act to the Corporation shall, unless the context otherwise requires, be construed as references to the General Council.
(6) Notwithstanding the expiry of the prescribed term of his office, every member of the General Council shall continue to hold office as such, until his successor in such office has assumed charge of such office.
(7) Members of the General Council, other than the managing director, shall be entitled to receive such sittings fees as may be specified by regulations made by the corporation under this Act, for attending any meeting of the General Council, Board or any committees of the Corporation.
Provided that no official member shall be entitled to receive any sitting fee.
4. A person shall be disqualified for being chosen as and for being a member of the Corporation:-
1.
1. if he is, or at any time has been adjudicated insolvent or has suspended payment of his debt or has compounded with his creditors, or
2. if he is or has been convicted of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less that six months, unless a period of five years has elapsed from the date of expiry of the sentence; or
3. except in the case of managing director, if he is a salaried official of the Corporation.
5. (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.
6. The Central Government may, at any time remove from office any member other than an ex-officio member of the Corporation after giving him a reasonable opportunity of showing cause against the proposed removal.
7. (1) The Corporation, 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) The President or in his absence the Vice-President or in the absence of both the President and the Vice-President, any member chosen by the members/represent 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 the President or, in his absence, the Vice-President or in the absence of both the President and the Vice-President, the person presiding shall have and exercise a second or casting vote.
8. (1) The Central Government shall, in consultation with the Corporation, appoint a person to be the 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 condition of service and the scales of pay of the officers and other employees of the Corporation shall,
(a) as respects the 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.
(4) The Managing Director shall exercise such powers and perform such duties as the Board may entrust or delegate to him.
9. (1) Subject to the provisions of this Act, the functions of the Corporation shall be to plan and promote programmes, through cooperative societies, for:-
(a) the production, processing, marketing, storage, export and import of agricultural produce, foodstuffs, poultry feed and notified commodities;
(b) the collection, processing, marketing, storage and export of minor forest produce.
(2) In particular and without prejudice to the generality of the foregoing provision, the Corporation may:
(a) advance loans or grant subsidies to State Governments for financing cooperative societies and for employment of staff for implementing programmes of cooperative development;
(b) provide funds to State Governments for financing cooperative societies for the purchase of agricultural produce, foodstuffs and notified commodities on behalf of the Central Government;
(c) plan and promote programmes through cooperative societies for the supply of seeds, manures, fertilizers, agricultural implements and other articles for the development of agricultural produce.
(d) provide loans and grants directly to the national level cooperative societies and other cooperative societies having objects extended beyond one State.
(e) provide loans to cooperative societies on the guarantee of State Governments or in the case of cooperative societies in the Union Territories, on the guarantee of Central Government;
(f) participate in the share capital of the national level cooperative societies and other cooperative societies having objects extending beyond one State.
(3) The Corporation shall so exercise its functions under this section as not to interfere with the activities of the Khadi and Village Industries Commission established under the Khadi and Village Industries Commission Act, 1956.
10. (1) There shall be a Board of Management of the Corporation which shall consist of the 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 Government from among the members referred to in Clause (ii) of Sub-Section (4) of Section 3;
(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 Government from among the members referred to in clauses (ix), (x), (xi), (xii) and (xiii) of Sub-section (4) of Section 3;
(v) two members of the General Council, to be nominated by the Central Government from among the members referred to in clause (xiv) of Sub-Section (4) of Section 3;
(vi) two members of the General Council to be nominated by the Central Government from among the members referred to in clause (xv) of Sub-Section (4) of Section 3;
(vii) one member of the General Council to be nominated by the Central Government from among the members referred to in clauses (xvi) of Sub-Section (4) of Section 3;
(viii) the managing director.
(2) The Vice-Chairman of the Board shall be nominated by the Central Government.
(3) Subject to the general control, direction and superintendence of the General Council, the Board shall be competent to deal with any matter within the competence of the Corporation.
(4) The Board shall meet at such times and at such places and shall 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.
(5) The confirmed minutes of every meeting of the Board shall be laid before the General Council at its next following meeting.
11. The Corporation may constitute such other committee for general or special purposes as it deems necessary for the efficient performance of its functions under this Act.
12. 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.
(b) by way of loan, such sum of money on such terms and conditions as the Central Government may determined; and
(c) such additional grants, if any, for the purposes of this Act.
12A. (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 by sale of bonds or debentures, or both, carrying interest at such rates as may be specified therein;
(b) any bank or other financial institutions;
(c ) any other authority, organization 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) of sub-section (1) and the payment of interest thereon and other incidental charges.
13 (1) The Corporation shall maintain a fund called the National Cooperative 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 loan paid to the Corporation by the Central Government under Section 12;
(ba) all moneys borrowed under section 12A.
(c) such additional grants, if any, as the Central Government may make to the Corporation for the purposes of this Act; and
(d) such sums of moneys as may, from time to time, be realized out of repayment of loans made from the fund or from interest on loans or dividend or other realization on investments made from the Fund.
(2) The moneys in the Fund shall be applied for-
(a) advancing loans and granting subsidies to State Governments on such terms and conditions as the Corporation may deem fit for the purposes of enabling State Governments to subscribe to the share capital of cooperative societies or for otherwise financing cooperative societies;
(b) meeting the pay and allowances of the Managing Director, officers and other employees of the Corporation and other administrative expenses of the Corporation; and
(c) carrying out the purpose of this Act.
(3) All moneys in the fund shall be deposited in the Reserve Bank or the State Bank or a nationalized bank.
14. (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 the 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 programme during the previous year.
(3) A copy of the report received under Sub-Section (2) shall be laid before both Houses of Parliament.
15. 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.
16. (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.
17. (1) The Corporation shall maintain proper account 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 authorized 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 authorized by him in connection with the audit of the accounts of the Corporation shall have the same rights, privilege and authority in connection with such audit as the Comptroller and Auditor General has in connection with 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 any office of the Corporation.
(4) The accounts of the Corporation certified by the Comptroller and Auditor-General of India or any other person authorsied by him in this behalf together with an audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament.
18. No act or proceedings of the General Council the Board or any of the Committee 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.
19. The Corporation may, be general or special order in writing delegate to the 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.
20. 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.
21. (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 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 office 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 the Corporation shall vest in the Central Government.
22. (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-
(a) the term of office of members of the Corporation and the manner of filling vacancies among them;
(b) the methods of appointment, the conditions of service and the scale of pay of the Managing Director;
(c) the returns, statement and other particulars in regard to the discharge of its functions to be furnished by the Corporation to the Central Government;
(d) the form and the manner in which, and the time within which, the Corporation shall furnish to the Central Government returns, statements and other particulars with regard to the discharge of its functions;
(e) the form and the manner in which, and the time within which the Corporation shall furnish to the Central Government a report of its activities, policy and programme; and
(f) any other matter which has to be, or may be prescribed.
(3) Every rule made 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 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 there after 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.
23. (1) The Corporation may, with the previous sanction of the Central Government, by notification in the official Gazette, make regulations not in consistent with this Act and the rules made there under, 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 of 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 there thereat;
(b) The methods of appointment, the conditions of service and the scales of pay of the officers (other than the Managing Director and other employees of the Corporation.
(c) the duties and conduct of officers and other employees of the Corporation; and
(d) any other matter in respect of which the Corporation is empowered or required to make regulation under this Act.
(3) The Central Government may, by notification in the Official Gazette, rescind any regulation which it has sanctioned and there upon the regulation shall cease to have effect.
24. (1) With effect from the date on which the Corporation is established under Section 3, the Agricultural Produce (Development and Warehousing) Corporation Act, 1956 shall, in so far as it relates to the National Cooperative Development and Warehousing Board, stand repealed:-
(2) Notwithstanding such repeal:-
(a) all moneys and other securities belonging to the National Cooperative 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 the Act.
(b) all moneys and other securities belonging to the National Warehousing Development Fund which immediately before the said date, was maintained by the said Board under the repealed Act, shall stand transferred to and be maintained by the Central Warehousing Corporation;
(c) all shares in the capital of Central Warehousing Corporation held by the said Board shall stand transferred to the Central Government subject to the same liabilities as the payment of unpaid cells on such shares as the said Board was subject to;
(d) anything done or any action taken (including any loan advanced subsidy granted and appointment, delegation, rule of 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; and
(e) all rights, liabilities and obligations of the said Board, 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.
The Multi-State Cooperative Societies Act, 1984
An Act to consolidate and amend the law relating to cooperative societies with objects not confined to one State and serving the interests of members in more than one State.
Be it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows:
Preliminary
1. Short title, extent and commencement-
(1) This Act may be called the Multi-State Cooperative Societies Act, 1984.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. Application- This Act shall apply to:
(a) All cooperative societies, with objects not confined to one State, which were incorporated before the commencement of this Act, (i) under the Cooperative Societies Act, 1912, or (ii) under any other law relating to cooperative societies in force in any State or in pursuance of the Multi-unit Cooperative Societies Act, 1942, and the registration of which has not been cancelled before such commencement; and
(b) all multi-State cooperative societies.
3. Definitions- In this Act, unless the context otherwise requires:
(a) "board" means the board of directors or the governing body of a multi-State cooperative society by whatever name called, to which the direction and control of the management of the affairs of the society is entrusted;
(b) "bye-laws" means the bye-laws for the time being in force which have been duly registered under this Act and includes amendments thereto which have been duly registered under this Act;
(c) "Central Registrar" means the Central Registrar of Cooperative Societies appointed under sub-section (1) of section 4 and includes any officer empowered to exercise the powers of the Central Registrar under sub-section (2) of that section;
(d) "Chief Executive" means a Chief Executive of a multi-State cooperative society appointed under section 44;
(e) "cooperative bank" means a multi-State cooperative society which undertakes banking business;
(f) "cooperative principles" means the cooperative principles specified in the First Schedule;
(g) "cooperative society" means a society registered or deemed to be registered under any law relating to cooperative societies for the time being in force in any State;
(h) "cooperative year", in relation to any multi-State cooperative society or class of such societies, means the year ending on the 30th day of June and where the accounts of such society or class of such societies are, with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day;
(i) "Deposit Insurance Corporation" means the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961;
(j) "member" means a person joining in the application for the registration of a multi-State cooperative Society and includes a person admitted to membership after such registration in accordance with the provisions of this Act, the rules and the bye-laws;
(k) "multi-State cooperative society" means a society registered or deemed to be registered under this Act and includes a national cooperative society;
(l) "multi-State cooperative society with limited liability" means a society having the liability of its members limited by its bye-laws to the amount, if any, unpaid on the shares respectively, held by them or to such amount as they may, respectively, there-by undertake to contribute to the assets of the society, in the event of its being wound up;
(m) "national cooperative society" means a multi-State cooperative society specified in the Second Schedule;
(n) "notification" means a notification published in the Official Gazette;
(o) "officer" means a president, vice-president, chairman, vice-chairman, managing director, secretary, manager, member of a board, treasurer, liquidator, an administrator appointed under section 48 and includes any other person empowered under this Act or the rules or the bye-laws to give directions in regard to the business of multi-state cooperative society;
(p) "Prescribed" means prescribed by rules;
(q) "Reserve Bank" means the Reserve Banks of India constituted under the Reserve Bank of India Act, 1934;
(r) "rules" means the rules made under this Act
Central Registrar and Registration of Societies
4. Central Registrar-
(1) The Central Government may appoint a person to be the Central Registrar of Cooperative Societies and may appoint such other persons as it may think fit to assist the Central Registrar.
(2) The Central Government may, by notification, direct that any power exercisable by the Central Registrar under this Act (other than the power of registration of a multi-State cooperative society) shall in relation to such society, and such matters as may be specified in the notification be exercisable also by any other officer of the Central Government or of a State Government as may be authorised by the Central Government subject to such conditions as may be specified there in; Provided that no officer of a State Government shall be empowered to exercise such power in relation to a national cooperative society; Provided further that no officer of a State Government below the rank of the Registrar of Cooperative Societies shall be empowered to exercise any power exercisable by the Central Registrar under Section 87.
5. Multi-State Cooperative Societies which may be registered-
(1) No multi-State cooperative society shall be registered under this Act, unless the main objects of the society are to serve the interests of members in more than one State.
(2) Subject to the provisions of sub-section (1), a multi-State cooperative society, which has as its objects the promotion of the economic and social betterment of its members through mutual aid in accordance with the cooperative principles or a multi-State cooperative society established with the object of facilitating the operations of other such societies or of cooperative societies or of both may be registered under this Act.
(3) The word "Limited" or its equivalent in any Indian language shall be suffixed to the name of every multi-state cooperative society registered under this Act with limited liability.
6. Application for registration-
(1) For the purposes of registration of a multi-state cooperative society under this Act, an application shall be made to the Central Registrar in such form and with such particulars as may be prescribed.
(2) The application shall be signed-
(a) in the case of a multi-State cooperative society of which all the members are individuals, by at least fifty persons from each of the States concerned;
(b) in the case of a multi-State cooperative society of which the members are cooperative societies, by duly authorised representatives on behalf of at least two such societies as are not registered in the same state; and
(c) in the case of a multi-State cooperative society of which another multi-State cooperative society and other cooperative societies are members, by duly authorised representatives of each of such societies; Provided that not less than two of the cooperative societies referred to in clause (b) or clause (c) as the case may be, shall be such as are not registered in the same State.
(3) The application shall be accompanied by four copies of the proposed bye-laws of the multi-State cooperative society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Central Registrar may require.
7. Registration-
(1) If the Central Registrar is satisfied-
(a) that the application complies with the provisions of this Act and the rules;
(b) that the proposed multi-State cooperative society satisfies the basic criterion that its objects are to serve the interests of members in more than one State;
(c) that there is no other multi-State cooperative society having similar area of operation and identical objects;
(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and
(e) that the proposed multi-State cooperative society has reasonable prospects of becoming a viable unit, he may register the multi-State cooperative society and its bye-laws.
(2) Where the Central Registrar refuses to register a multi-State cooperative society, he shall communicate the order of refusal together with the reasons therefor, to such number of the applicants and in such manner as may be prescribed.
(3) The application for registration shall be disposed of by the Central Registrar within a period of six months from the date of receipt thereof by him: Provided that if the Central Registrar is unable to dispose of the application within the period aforesaid, he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to dispose of such application.
8. Registration certificate- Where a multi-State cooperative society is registered under this Act, the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the registration of the society has been cancelled.
9. Amendment of bye-laws of a multi-State Cooperative Society-
(1) No amendment of any bye-laws of a multi-State Cooperative society shall be valid, unless such amendment has been registered under this Act.
(2) Every proposal for such amendment shall be forwarded to the Central Registrar and if the Central Registrar is satisfied that the proposed amendment-
(a) is not contrary to the provisions of this Act or of the rules;
(b) does not conflict with cooperative principles; and
(c) will promote the economic interests of the members of the multi-State cooperative society, he may register the amendment within a period of six months from the date of receipt thereof by him.
Provided that if the Central Registrar is unable to register the amendment within the period aforesaid he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall forward to the multi-State cooperative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi-State cooperative society, he shall communicate the order of refusal together with the reasons therefor to the Chief Executive of the society in the manner prescribed within seven days from the date of such refusal.
10. When amendment of bye-laws comes into force-An amendment of the bye-laws of a multi-State Cooperative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.
11. Change of name-
(1) A multi-State cooperative society may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligaton of the multi-State cooperative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-State cooperative society by its former name may be continued or commenced by or against its new name.
(2) Where a multi-State cooperative society changes its name, the Central Registrar shall enter the new name on the register of multi-State cooperative societies in place of the former name and shall amend the certificate of registration accordingly.
12. Change of address-Every multi-State cooperative society shall have a principal place of business and an address registered in the manner prescribed to which all notices and communications may be sent and any change in the principal place of business of a multi-State cooperative society shall be made with the previous approval of the Central Registrar.
13. Liability-
(1) No multi-State cooperative society with unlimited liability shall be registered after the commencement of this Act: Provided that where a multi-unit cooperative society with unlimited liability was functioning before the commencement of this Act, such a society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a multi-State cooperative society with limited liability by following the procedure specified in sub-sections (2) to (4).
(2) Subject to the provisions of this Act and the rules, a multi-unit cooperative society may, by an amendment of its bye-laws, change the extent of its liability.
(3) When a multi-unit cooperative society has passed a resolution to change the extent of its liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor shall, during the period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(4) Any member or creditor who does not exercise his option within the period specified in sub-section (3) shall be deemed to have assented to the change.
(5) An amendment of a bye-law of a multi-unit cooperative society changing the extent of its liability shall not be registered or shall not take effect until either-
(a) the assent thereto of all members and creditors has been obtained: or
(b) all claims of members and creditors who exercise the option referred to in sub-section (3) within the period specified therein have been met in full or otherwise satisfied.
14. Amalgamation or transfer of assets and liabilities or division of multi-State Cooperative Societies--
(1) A multi-State cooperative society may, with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of the society held for the purpose,-
(a) transfer its assets and liabilities in whole or in part to any other multi-State cooperative society or cooperative society;
(b) divide itself into two or more multi-State cooperative societies;
(c) divide itself into two or more cooperative societies.
(2) Any two or more multi-State cooperative societies may, with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new multi-State cooperative society.
(3) The resolution of a multi-State cooperative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer or division or amalgamation, as the case may be: Provided that in the case of a cooperative bank, the Central Registrar shall not accord approval to any such resolution without the previous sanction in writing of the Reserve Bank.
(4) When a multi-State cooperative society has passed a resolution under sub-section (1) or sub-section (2), it shall give notice thereof in writing to all the members and creditors and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor, shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the proposals contained in the resolution.
(6) (a) A resolution passed by a multi-State cooperative society under this section shall not take effect until the assent thereto of all the members and creditors has been obtained.
(b) The multi-State cooperative society shall make arrangements for meeting in full or otherwise satisfying all claims of the members and creditor who exercise the option within the period specified in sub-section (4).
(7) On receipt of an application for the registration of new societies formed by division in accordance with the resolution passed under sub-section (1) or of a new society formed by amalgamation in accordance with the resolution passed under sub-section (2), the Central Registrar, on being satisfied that the resolution has become effective under sub-section (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do, register the new societies or society, as the case may be, and the bye-laws thereof.
(8) On the issue of an order under sub-section (7), the provisions of section 17 shall; so far as may be, apply to the multi-State cooperative society so divided or the multi-State cooperative societies so amalgamated.
(9) Where a resolution passed by a multi-State Cooperative Society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
15. Central Registrar to prepare scheme of amalgamation or reorganisation of cooperative bank in certain cases-When an order of moratorium has been made by the Central Government under sub-section (2) of section 45 of the Banking Regulation Act, 1949 in respect of a cooperative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme-
(a) for the amalgamation of the cooperative bank with any other cooperative bank; or
(b) for the reorganisation of the cooperative bank.
16. Liability of a cooperative bank to the Deposit Insurance and Credit Guarantee Corporation-
Notwithstanding anything contained in section 14 or any other provision of this Act, were a cooperative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, is amalgamated or reorganised and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of the Act, the bank with which such insured bank is amalgamated, or the new cooperative bank found after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
17. Cancellation of registration certificate of multi-State cooperative societies in certain cases-
(1) Where the whole of the assets and liabilities of a multi-state cooperative society are transferred to another multi-State cooperative society or to a cooperative society in accordance with the provisions of section 14, the registration of the first mentioned multi-State cooperative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more multi-State cooperative societies are amalgamated into a new multi-State cooperative society in accordance with the provisions of section 14, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each of the amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a multi-State cooperative society divides itself into two or more multi-State cooperative societies or two or more cooperative societies in accordance with the provisions of section 14, registration of that society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(4) The amalgamation or division of multi-State cooperative societies shall not in any manner whatsoever effect any right or obligation of the resulting multi-State cooperative society or societies or render defective any legal proceedings by or against the multi-State cooperative society or societies, and any legal proceedings that might have been continued or commenced by or against the multi-State cooperative society or societies, as the case may be, before the amalgamation or division may be continued or commenced by or against the resulting multi-State cooperative society or societies.
18. Conversion of cooperative society into multi-State Cooperative Society-
(1) A cooperative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-State cooperative society: Provided that no such amendment of bye-laws of a cooperative society shall be valid unless it has been registered by the Central Registrar.
(2) (a) Every proposal for such amendment shall be forwarded to the Central Registrar.
(b) If the Central Registrar, after consulting the Registrars of Cooperative Societies of the States concerned, has satisfied himself that such amendment fulfils the requirement of sub-section (2) of section 9, he may register the amendment within a period of six months from the date of receipt thereof by him: Provided that if the Central Registrar is unable to register the amendment within the period aforesaid, he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall forward to the cooperative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a cooperative society, he shall communicate the order of refusal together with the reasons therefor to the society in the manner prescribed within seven days from the date of refusal.
(5) (a) Once the amendment of bye-laws has been registered by the Central Registrar, the cooperative society shall, as from the date of registration of amendment, become a multi-State cooperative society.
(b) The Central Registrar shall forward to the cooperative society a certificate signed by him to the effect that such society has been registered as a multi-State cooperative society under this Act and also forward a copy of the same to the Registrar of Cooperative Societies of the State concerned.
(c) The Registrar of Cooperative Societies referred to in clause (b) shall thereupon make an order directing that the society had, as from the date of registration by the Central Registrar, ceased to be a society under the law relating to cooperative societies in force in that State.
MEMBERS OF MULTI-STATE COOPERATIVE SOCIETIES AND THEIR RIGHTS AND LIABILITIES
19. Persons who may become members-
(1) No person shall be admitted as member of a multi-State cooperative society except the following, namely:-
(a) an individual competent to contract under section 11 of the Indian Contract Act, 1872;
(b) any multi-State cooperative society or any cooperative society;
(c) the Central Government;
(d) a State Government;
(e) the National Cooperative Development Corporation established under the National Cooperative Development Corporation Act, 1962;
(f) any other corporation owned or controlled by Government;
(g) any Government company as defined in section 617 of the Companies Act, 1956;
(h) such class or classes of persons or association of persons as may be permitted by the Central Registrar having regard to the nature and activities of a multi-State cooperative society;
(2) Such number of individuals possessing such qualifications as may be prescribed may be admitted as members of the National Cooperative Union of India Limited, New Delhi.
(3) Save as otherwise provided in sub-section (2) and notwithstanding anything contained in sub-section (1) no individual shall be eligible for admission as a member of a national cooperative society.
(4) Any person eligible for membership of a multi-State cooperative society may, on his application, be admitted as a member by such society.
(5) Every application for admission as a member of a multi-State cooperative society shall be disposed of by such society within a period of four months from the date of receipt of the application, and the decision of such society on the application shall be communicated to the applicant within fifteen days from the date of such decision: Provided that if the application is not disposed of within the period aforesaid, or the decision is not communicated within a period of fifteen days of the expiry of the aforesaid period of four months, the multi-state cooperative society shall be deemed to have made a decision, on the date of expiry of such period, refusing admission to the applicant.
(6) Notwithstanding anything contained in this section, the Central Government may, having regard to the fact that the interest of any person or class of persons conflicts or is likely to conflict with the objects of any multi-State cooperative society or class of multi-State cooperative societies, by general or special order published in the Official Gazette, declare that any person or class of persons engaged in or carrying on any profession, business or employment shall be disqualified from being admitted, or for continuing, as members or shall be eligible for membership only to a limited extent of any specified multi-State cooperative society or class of multi-State cooperative societies, so long as such person or persons is or are engaged in or carrying on that profession, business or employment, as the case may be.
20. Members not to exercise rights till due payment made-No member of a multi-State cooperative society shall exercise the rights of a member, unless he has made such payments to the society in respect of membership, or has acquired such interest in the society, as may be specified in the bye-laws.
21. Expulsion of members-
(1) A multi-State cooperative society may, by resolution passed by a majority of not less than two thirds of the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society; Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation in the matter.
(2) No member of the multi-State cooperative society who has been expelled under sub-section(1) shall be eligible for readmission as a member of that society, for a period of three years from the date of such expulsion: Provided that the Central Registrar may, on application of the multi-State cooperative society and if satisfied that in the special circumstances of the case, it is necessary so to do in the interests of the multi-State cooperative society, sanction the re-admission or admission within the said period, of any such members as a member of the said society.
22. Votes of members-Every member of a multi-State Cooperative society, including a member who is an employee of such society, shall have one vote in the affairs of the society.
Provided that-
(a) a member who is an employee of such society shall not be entitled to vote-
(i) at an election of a member of the board of such society.
(ii) in any general meeting convened for framing the bye-laws of such society or any amendments thereto:
(b) in the case of an equality of votes, the Chairman shall have a second or casting vote;
(c) where any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 19 is a member of a Multi-State cooperative society, each person nominated by such authority, on the board, in accordance with the provisions contained in this Act and the rules, shall have one vote;
(d) a multi-State cooperative society, the members of which include cooperative societies or other multi-State cooperative societies, may provide for an equitable system of voting having regard to the membership of, and the extent of business carried on by such cooperative societies, or multi-State cooperative societies and other relevant circumstances.
23. Manner of exercising vote-Every member of a multi-State cooperative society shall exercise his vote in person and no member shall be permitted to vote by proxy: Provided that a multi-State cooperative society or a cooperative society which is a member of another multi-State cooperative society, may, subject to the provisions of sub-section (3) of section 29 and the rules, appoint its representative to vote on its behalf in the affairs of that other society.
24. Restrictions on holding of shares-No member, other than any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 19 or a multi-State cooperative society or a cooperative society, shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed; Provided that the Central Government may, by notification, specify in respect of any class of societies a higher or lower maximum than one-fifth of the share capital.
25. Restrictions on transfer of shares or interest-The transfer of the share or interest of a member in the capital of a multi-State cooperative society shall be subject to such conditions as to maximum holding as are specified in section 24.
26. Redemption of share-Shares held in a multi-State Cooperative society by any of the authorities referred to in clauses (c) to (g) of sub-section(1) of section 19 shall be redeemable in accordance with the bye-laws of such multi-State cooperative society and in a case where the bye-laws do not contain any provision in this regard, in such manner as may be agreed upon between the multi-State cooperative society and such authority.
27. Transfer of interest on death of members-
(1) On the death of a member of multi-State cooperative society may transfer the share or interest of the deceased member to the person nominated in accordance with the rules made in this behalf, or if there is no person so nominated to such person as may appear to the board to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such members share or interest as ascertained in accordance with the rules; Provided that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be;
(2) A multi-State cooperative society shall, unless within six months of the death of the member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.
(3) All transfer and payments made by a multi-State cooperative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.
28. Liability of past member and estate of deceased member-
(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a multi-State cooperative society for the debts of the society as they existed;-
(a) in the case of a past member, on the date on which he ceased to be a member,
(b) in the case of a deceased member, on the date of his death, shall continue for a period of two years from such date.
(2) Notwithstanding anything contained in sub-section (1), where a multi-State cooperative society is ordered to be wound up under section 77, the liability of a past member who ceased to be a member or of the estate of a deceased member who died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed but such liability shall extend only to the debts of the society as they existed on the date of cessation of membership or death, as the case may be.
DIRECTION AND MANAGEMENT OF MULTI-STATE COOPERATIVE SOCIETIES
29. General body, its constitution, powers and functions-
(1) The general body of a multi-State cooperative society shall consist of all the members of such society; Provided that where the bye-laws of a multi-State cooperative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such byelaws, that smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society.
(2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a multi-State cooperative society shall vest in the general body of its members: Provided that nothing contained in this sub-section shall affect the exercise by the board or any officer of a multi-State cooperative society of any power conferred on such board or such officer by this Act or the rules or the bye-laws.
(3) Where in any meeting of the general body or the board of a multi-State cooperative society, a cooperative society or another multi-State cooperative society is to be represented, such cooperative society or other multi-State cooperative society shall be represented in such meeting only through the Chairman or the Chief Executive of such cooperative society or other multi-State cooperative society, as the case may be, and where there is no board or such cooperative society or other multi-State cooperative society, for whatever reasons, through the administrator, by whatever name called, of such cooperative society or other multi-State cooperative society.
30. Annual general meeting of the general body-
(1) Every multi-State cooperative society shall, within such period as may be prescribed, after the close of the year, call a general meeting of its members in the manner prescribed for the purpose of-
(a) consideration of the audit report and annual report;
(b) disposal of net profits;
(c) approval of the programme of activities for the ensuing year;
(d) amendment of bye-laws;
(e) election, if any, of the members of the board, other than nominated members, subject to the provisions of section 35; Provided that the Central Registrar may by general and special order, extend the period for holding such meeting for a further period not exceeding three months.
Provided further that if in the opinion of the Central Registrar no such extension is necessary or such meeting is not called by the multi-State cooperative society within the extended period, if any, granted by him, the Central Registrar or any person authorised by him in this behalf may call such meeting in the manner prescribed, and that meeting shall be deemed to be a general meeting duly called by the society and the Central Registrar may order that expenditure incurred in calling such a meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the general meeting.
(2) At every annual general meeting of a multi-State cooperative society the board shall lay before the society a statement showing the details of the loans or goods on credit, if any, given to any of the members of the board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding against him or against such spouse or son or daughter of the member of the board.
31. Special general meeting of the general body-
(1) The Chief Executive may, at any time, on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the bye-laws.
(2) If a special general meeting of a multi-State cooperative society is not called in accordance with the requisition referred to in sub-section (1), the Central Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the special general meeting.
32. Board of directors-Subject to the provisions of this Act and the rules, there shall be a board of directors for every multi-State cooperative society consisting of such number of members as may be provided for under the bye-laws.
33. Association of employees in the management decision making process. Every multi-State cooperative society shall devise such procedure, as may be specified in the bye-laws or in the administrative instructions, for association of the representatives of employees of such multi-State cooperative societies at such level or bodies as may be specified in the bye-laws or the instructions issued in this regard, in the management decision making process.
34. Disqualification for a member of a board-No member of any multi-state cooperative society or nominee of a member-society on a national cooperative society shall be eligible for being chosen as, or for being, a member of the board of such multi-State cooperative society or national cooperative society or of any other cooperative society to which the multi-State cooperative society is affiliated, if such member-
(a) has been adjudged by a competent court to be insolvent or of unsound mind;
(b) is concerned or participates in the profits of any contract with the society;
(c) has been convicted for an offence involving moral turpitude;
(d) holds any office or place of profit under the society; Provided that the Chief Executive or such full-time employee of the society as may be notified by the Central Government from time to time or a person elected by the employees of such society to represent them on the Board of such society shall be eligible for being chosen as, or for being, a member of such board;
(e) has been a member of the society for less than twelve months immediately preceding the date of such election or appointment;
(f) has interest in any business of the kind carried on by the society of which he is a member;
(g) has taken loan or goods on credit from the society of which he is a member, or is otherwise indebted to such society and after the receipt of a notice of default issued to him by such society, has defaulted-
(i) in repayment of such loan or debt or in payment of the price of the good taken on credit, as the case may be, within the date fixed for such repayment or payment or where such date is extended, which in no case shall exceed six months, within the date so extended, or
(ii) when such loan or debt or the price of goods taken on credit is to be paid in installments, in payment of any instalment, and the amount in default or any part there of has remained unpaid on the expiry of six months from the date of such default; Provided that a member of the board who had ceased to hold office as such under this clause shall not be eligible, for a period of one year, from the date on which he ceased to hold office, for reelection as a member of the board of the multi-State cooperative society of which he was a member or for election to the board of any other multi-State cooperative society;
(h) is a person against whom any amount due under a degree, decision or order is pending recovery under this Act;
(i) is retained or employed as a legal practitioner on behalf of or against the multi-State cooperative society, or on behalf of or against any other multi-State cooperative society which is a member of the former society.
Explanation: For the purposes of this clause "legal practitioner" has the same meaning as in clause (i) of sub-section (1) of Section 2 of the Advocates Act, 1961;
(j) has been convicted for any offence under this Act.
35. Election of members of board-
(1) The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of, elections of the members of the board of such multi-State cooperative societies or class of multi-State cooperative societies as the Central Government may, by general or special order, notify, shall be vested in such returning officers as may be appointed by the Central Registrar in this behalf.
(2) The vote at such elections shall be by secret ballot.
(3) The term of office of the elected members of the board shall be such, not exceeding three years from the date of election, as may be specified in the bye-laws of a multi-State cooperative society: Provided that the elected members shall continue to hold office till their successors are elected or nominated under the provisions of this Act or the rules or the bye-laws and assume the charge of their office.
(4) No person shall be eligible to be elected as a member of the board of a multi-State cooperative society unless he is a member of the general body of that society.
(5) The Central Government may make rules generally to provide for or to regulate matters in respect of elections of members of the board.
36. Holding of office in cooperative society-Notwithstanding any thing contained in this Act, no person shall be eligible to hold, at the same time, office of a president or chairman or vice-president or vice-chairman on the board of more than one multi-State cooperative society: Provided that any person holding, at the commencement of this Act, the office of a president or chairman or vice-president or vice-chairman in more than one multi-State cooperative society shall, within three months from such commencement by notice in writing signed by him, intimate the name of the multi-State cooperative society in which he wishes to serve and thereupon his office in the other multi-State cooperative society in which he does not wish to serve shall become vacant: Provided further that in default of such intimation within the period referred to in the preceding proviso, his offices in all the multi-State cooperative societies shall, at the expiration of the period aforesaid, become vacant.
37. Restrictions on holding of office-No person shall be eligible to hold the office of a president or chairman or vice-president or vice-chairman on the board of a multi-State cooperative society, after he has held the office as aforesaid during two consecutive terms, whether full or part: Provided that a person who has ceased to hold the office of a president or chairman continuously, for one full term of three years shall again be eligible for election to the offices aforesaid.
Explanation: Where any person holding the office of the president or vice-president or chairman or vice-chairman at the commencement of this Act is again elected to that office after such commencement, he shall for the purpose of this section, be deemed to have held office for one term before such election.
38. Payment of honorarium-Honorarium may be paid to the elected chairman or president of the board out of the profits of the multi-State cooperative society in respect of specific services rendered by him, subject to such restrictions and conditions as may be prescribed.
39. Removal of elected members by general body-An elected member of a board who has acted adversely to the interests of multi-State cooperative society may, on the basis of a report from the Central Registrar or otherwise, be removed from the board upon a resolution of the general body passed at its meeting by a majority of not less than two thirds of the members present and voting at the meeting. Provided that the member concerned shall not be removed unless he has been given a reasonable opportunity of making representation in the matter.
40. Removal of member by Central Registrar-If in spite of cessation of office under circumstances mentioned in Section 34, Section 36, Section 37 or Section 39 a member of the board refuses to vacate his office, the Central Registrar shall, by order in writing, remove him from such office.
41. Nominee of Central Government or State Government on the board-
(1) Where the Central Government or a State Government has subscribed to the share capital of a multi-state cooperative society or has guaranteed the repayment of principal and payment of interest on debentures issued by a multi-State cooperative society or has guaranteed the repayment of principal and payment of interest on loans and advances to a multi-State cooperative society, the Central Government or the State Government in this behalf, as the case may be, or any person authorised by the Central Government or the State Government, shall have the right to nominate on the board such number of persons as may be prescribed;
(2) The bye-laws of a multi-State cooperative society may provide for the nomination of persons in excess of the limits prescribed under sub-section(1).
(3) A person nominated under this section shall hold office during the pleasure of the Government by which he has been so nominated.
42. Powers and functions of the board--
(1) The board may exercise all such powers as may be necessary or expedient for the purpose of carrying out its functions under this Act.
(2) Without prejudice to the generality of the foregoing power, such power shall include the power--
(a) to admit members;
(b) to interpret the organisational objectives and set up specific goals to be achieved towards these objectives;
(c) to make periodic appraisal of operations;
(d) to appoint a Chief Executive and such other employees of the society (out of the list of persons referred to in section 50) as are not required to be appointed by the Chief Executive;
(e) to make provisions for regulating the appointment of employees of the multi-State cooperative society and the scales of pay, allowances and other conditions of service of, including disciplinary action against, such employees;
(f) to approve annual and supplementary budget;
(g) to acquire or dispose of immovable property;
(h) to raise funds;
(i) to sanction loans to the members; and
(j) to take such other measures or to do such other acts as may be prescribed or required under this Act.
43. Meetings of the board--
(1) The Chief Executive shall convene the meetings of the board at the instance of the chairman or president of the multi-State cooperative society.
(2) The total number of meetings of the board in a year and the venue of meetings may be such as may be prescribed: Provided that the board shall meet at least once in every quarter.
44. Chief Executive--
(1) There shall be Chief Executive, by whatever designation called, of every multi-State cooperative society, to be appointed by the board and he shall be a full-time employee of such multi-State cooperative society.
(2) The Chief Executive shall be member of the board and of the Executive Committee and such other committees or sub-committees as may be constituted under sub-section (1) of section 46.
(3) The functional directors in national cooperative societies shall also be members of the board.
(4) Where the Central Government has subscribed to the extent of more than one-half of the share capital of a national co-operative society, it shall be obligatory on such a society to seek prior approval of the Central Government to the appointment of Chief Executive and the functional directors.
45. Powers and functions of Chief Executive--The Chief Executive shall exercise the powers and discharge the functions, specified below, namely:-
(a) day to day management of the business of the multi-State Cooperative society;
(b) operating the accounts of the multi-State cooperative society and be responsible for making arrangements for safe custody of cash;
(c) signing of the documents for and on behalf of the multi-State cooperative society;
(d) making arrangements for the proper maintenance of various books and records of the multi-State cooperative society and for the correct preparation, timely submission of periodical statements and returns in accordance with the provisions of this Act, the rules and the bye-laws;
(e) convening meetings of the general body of the multi-State cooperative society, the board and the Executive Committee and other committees or sub-committees constituted under sub-section (1) of Section 46 and maintaining proper records for such meetings;
(f) making appointments to posts in the multi-State cooperative society in accordance with the rules made under clause (e) of Sub-section (2) of section 42 except the posts in relation to which the power of appointment vests in the board under Clause (d) of that sub-section;
(g) assisting the board in the formulation of policies and objectives and planning;
(h) furnishing to the board periodical information necessary for appraising the operations and functions of the multi-State cooperative society;
(i) performing such other duties, and exercising such other powers, as may be prescribed or as may be specified in the bye-laws of the multi-State cooperative society.
46. Committees of the board-
(1) The board may, subject to such conditions as may be prescribed, constitute an Executive Committee and other committees or sub-committees, as may be considered necessary.
(2) The Executive Committee or other committee or sub-committee referred to in sub-section (1) shall perform such functions as are assigned to it in accordance with the bye-laws of the multi-State cooperative society.
47. Central Government's power to give directions in public interest- If the Central Government is satisfied that in the public interest or for the purposes of securing proper implementation of cooperative production and other developmental programmes approved or undertaken by the Central Government or to secure proper management of business of the multi-State cooperative societies generally or for preventing the affairs of the multi-State cooperative societies being conducted in a manner detrimental to the interests of the members, any depositors or creditors thereof, it is necessary to issue directions to any class of multi-State cooperative societies generally or to any multi-State cooperative society or societies in particular, the Central Government may issue directions to them or to it, from time to time and all such multi-State cooperative societies or the society concerned, as the case may be, shall be bound to comply with such directions.
48. Supersession of board-
(1) If in the opinion of the Central Registrar the board of any multi-State cooperative society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or has committed any act which is prejudicial to the interests of the society or its members or has omitted or failed to comply with any directions given to its under section 47 or that there is a stalemate in the constitution or functions of the board, the Central Registrar may after giving the board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, remove the board and appoint one or more administrators, who need not be members of the society to manage the affairs of the society for such period not exceeding one year; as may be specified in the order, which period may, at the discretion of the Central Registrar, be extended from time to time; so, however, that the aggregate period does not exceed two years.
(2) The Central Registrar may fix such remuneration for the administrators as he may think fit and the remuneration shall be paid out of the funds of the multi-State cooperative society.
(3) The administrator shall subject to the control of the Central Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the board or of any officer of the multi-State cooperative society and take all such actions as may be required in the interests of the society.
(4) Save as otherwise provided in sub-section (5), the administrator shall, before the expiry of his term of office, arrange for the constitution of a new board, in accordance with the bye-laws of the multi-State cooperative society.
(5) If at any time during the period of administrator is in office the Central Registrar considers it necessary or expedient so to do, he may, by order in writing giving reasons therefor, direct the administrator to arrange for the constitution of a new board for such multi-State cooperative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrators shall hand over the management of such society to such newly constituted board and cease to function.
(6) Where a multi-State cooperative society is indebted to any financial institution the Central Registrar shall, before taking any action, under sub-section (1) in respect of that society, consult the financial institution.
(7) Notwithstanding anything contained in this Act, the Central Registrar shall, in the case of a cooperative bank, if so required in writing by the Reserve Bank in the public interests or for preventing the affairs of the cooperative bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of a cooperative bank, pass an order for the supersession of the board of that cooperative bank and for the appointment of an administrator therefor for such periods not exceeding five years in the aggregate as may from time to time be specified by the Reserve Bank.
49. Securing possession of records, etc.-
(1) If-
(a) the records (including registers and books of accounts) of a multi-State cooperative society are likely to be tampered with or destroyed or the funds or other property of such society are likely to be misappropriated or misapplied; or
(b) the board of a multi-State cooperative society is reconstituted at a general meeting of the society; or
(c) the board of a multi-State cooperative society is removed by the Central Registrar under sub-section (1) of section 48; or
(d) a multi-State cooperative society is ordered to be wound up under section 77 and the outgoing members of the board refuse to hand over charge of the records and property of the society to those having, or entitled to receive such charge, the Central Registrar may apply to the magistrate within whose jurisdiction the multi-State cooperative society functions for securing the records and property of the society.
(2) On receipt of an application under sub-section (1), the magistrate may, by a warrant authorise any police officer not below the rank of a sub-inspector to enter and search any place where such records and property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new board or administrator of the multi-State cooperative society or the liquidator, as the case may be.
(3) Every such search and seizure shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973.
50. Constitution of body of persons for preparation of list, etc. The Central Government shall-
(a) constitute a body of persons in the manner prescribed for the preparation of a list of persons eligible for appointment to the posts of Chief Executive and other managerial posts in national cooperative societies, the maximum pay-scale of which exceeds such amount as may be prescribed;
(b) make rules for regulating the recruitment, remuneration, allowances and other conditions of service of officers and other employees of national cooperative societies.
51. Acts of multi-State cooperative societies not to be invalidated by certain defects-No act of a multi-State cooperative society or of any board or of any committee or of any officers of the society shall be deemed to be invalid by reason only of the existence of any defect in the procedure or in the constitution of the society or of the board of the committee thereof or in the appointment or election of an officer or on the ground that such officer was disqualified to hold office.
PRIVILEGES OF MULTI-STATE COOPERATIVE SOCIETIES
52. Multi-State Cooperative Society to be body corporate-The registration of a multi-State cooperative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to hold property, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.
53. Charge and set off, in respect of share or contribution or interest of member-A multi-State cooperative society shall have a charge on the share or contribution or interest in the capital and on the deposits of a member or past or deceased member and on any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member of the estate of such deceased member to the society and may set off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt.
54. Share or contribution or interest not liable to attachment-
(1) Subject to the provisions of section 53, the share or contribution or interest of a member or past or deceased member in the capital of a multi-State cooperative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member and an official assignee or a receiver under any law relating to insolvency shall not be entitled to or have any claim on such share of contribution or interest.
(2) The reserve fund, or the bad debt reserves, or the provident fund of the employees of a multi-State cooperative society invested by such society in accordance with the provisions of this Act and the rules shall not be liable to attachment under any decree or order of a court in respect of any debt or liability incurred by the society.
55. Register of member-Any register or list of members or shares kept by any multi-State cooperative society shall be prima facie evidence of any of the following particulars entered therein, namely-
(a) the date on which any person entered in such register or list became a member;
(b) the date on which any such person ceased to be a member.
56. Admissibility of copy of entry as evidence-
(1) A copy of any entry in a book of a multi-State cooperative society regularly kept in the course of its business shall, if certifies in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of the existence of such entry and shall be admitted as evidence of the matters, transactions and accounts therein every case where and to the same extent as, the original entry itself is admissible.
(2) No officer of a multi-State cooperative society and no officer in whose office the books of a multi-State cooperative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under an order of a court or an arbitrator made for a special cause.
57. Exemption from compulsory registration of instruments-Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Registration Act, 1908, shall apply to-
(a) any instrument relating to shares in a multi-State cooperative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
(c) an endorsement upon or transfer of any debenture issued by any such society.
58. Deduction from salary to meet multi-State Cooperative Society's claim in certain cases-
(1) Notwithstanding anything contained in any law for the time being in force, a member of a multi-State cooperative society may execute an agreement in favour of that society providing that his employer disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable to him, such amount as may be specified in the agreement and pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such agreement the employer disbursing the salary or wages of the members shall, if so required by the multi-State cooperative society by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within a period of fourteen days of the date on which deduction has been made, as if it were a part of the salary or wages payable on the day as required under the Payment of Wages Act, 1936, and such payment shall be valid discharge of the employer for his liability to pay the amount deducted.
(3) If after the receipt of a requisition made under sub-section (2) the employer disbursing the salary or wages of the member at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the multi-State cooperative society, the society shall be entitled to recover any such amount from such employer as arrears of land revenue and the amount so due from such employer shall rank in priority in respect of the liability of such employer equal to that of the salary or wages in arrears.
59. Government aid to multi-State Cooperative Societies-Notwithstanding anything contained in any law for the time being in force, the Central Government or a State Government may, with a view to promoting cooperative movement-
(a) subscribe to the share capital of a multi-State cooperative society;
(b) give loans or make advances to a multi-State cooperative society;
(c) guarantee the repayment of principal and payment of interest on debentures issued by a multi-State cooperative society;
(d) guarantee the repayment of share capital of a multi-State cooperative society and dividends thereon at such rates as may be specified by the Central Government or the State Government;
(e) guarantee the repayment of principal and payment of interest on loans advances to a multi-State cooperative society;
(f) give financial assistance in any other form, including subsides, to any multi-State cooperative society.
PROPERTIES AND FUNDS OF MULTI-STATE COOPERATIVE SOCIETIES
60. Funds not to be divided by way of profit-
(1) No part of the funds, other than net profits, of a multi-State cooperative society shall be divided by way of bonus or dividend or otherwise distributed among its members.
(2) The net profits of a multi-State cooperative society referred to in sub-section (1) in respect of a society earning profit shall be calculated by deducting from the gross profits for the year, all interest accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under the law relating to payment of bonus for the term being in force, and equalization fund for such bonus, provision for payment of income-tax and making approved donations under the Income-tax Act, 1961, development rebate, provision for development fund, bad debt fund, price fluctuation fund, dividend equalization fund, share capital, redemption fund, investment fluctuation fund, provision for retirement benefits to employees, and after providing for or writing off bad debt and losses not adjusted against any funds created out of profit. Provided further that in case of such multi-State cooperative societies as do not have share capital, the surplus of income over expenditure shall not be treated as net profits and such surplus shall be dealt with in accordance with the bye-laws.
61. Disposal of net profits-
(1) A multi-State cooperative society shall out of its net profits in any year-
(a) transfer an amount not less than twenty-five per cent to the reserve fund, and
(b) credit such portion, as may be prescribed, to the cooperative education fund maintained by the National Cooperative Union of India Limited, New Delhi.
(2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilized for all or any of the following purposes, namely;
(a) payment of dividend to members on their paid-up share capital at a rate not exceeding the prescribed limit;
(b) constitution of, or contribution to, such special funds including education funds, as may be specified in the bye-laws;
(c) donation of amount not exceeding five per cent of the net profits for any purpose as defined in section 2 of the Charitable Endowments Act, 1890;
(d) payment of ex gratia amount to employees of the multi-State cooperative society to the extent and in the manner specified in the bye-laws.
(3) The funds of a multi-State cooperative society shall not be utilised for any political purpose.
62. Investment of funds-A multi-State cooperative society may invest or deposit its funds-
(a) in a cooperative bank, State cooperative bank, cooperative land mortgage bank, cooperative land development bank or Central cooperative bank; or
(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882; or
(c) in the shares or securities of any other multi-State cooperative society or any cooperative society; or
(d) in the shares, securities or assets of any other institution, with the previous approval of the Central Registrar; or
(e) with any bank; or
(f) in such other mode as may be prescribed.
Explanation: In clause (e), "bank" means any banking company as defined in clause (e) of section 5 of the Banking Regulation Act 1949, and includes-
(i) the State Bank of India constituted under the State Bank of India Act, 1955;
(ii) a subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959;
(iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Under-takings) Act, 1970 or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
63. Restrictions on loans-
(1) A multi-State Cooperative society, other than a cooperative bank, shall not make a loan-
(a) to a member on the security or his share or on the security of a non-member; or
(b) to a non-member; Provided that with the general or special sanction of the Central Registrar, a multi-State cooperative society may make loans to another multi-State cooperative society.
(2) Notwithstanding anything contained in sub-section (1), a multi-State cooperative society may make a loan to a depositor on the security of his deposit.
64. Restrictions on borrowing-A multi-State cooperative society shall receive deposits and loans only to such extent and under such conditions as may be specified in the bye-laws; Provided that a cooperative bank shall be governed by the provisions of the Banking Regulation Act, 1949.
65. Restrictions on other transactions with non-members-Save as provided in section 63 and 64, the transaction of a multi-State cooperative society with any person other than a member shall be subject to such prohibitions and restrictions, if any, as may be prescribed.
66. Contributory Provident Fund-
(1) A multi-State cooperative society having such number or class of employees as may be prescribed may establish a contributory provident fund for the benefit of such employees to which shall be credited all contributions made by the employees and the society in accordance with the bye-laws of the society.
(2) Monies standing to the credit of any contributory provident fund established by a multi-State cooperative society under sub-section (1) shall not-
(a) be used in the business of the society;
(b) form part of the assets of the society;
(c) be liable to attachment or be subject to any other process or any court or other authority.
(3) Notwithstanding anything contained in this section, a provident fund established by a multi-State cooperative society to which the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, apply, shall be governed by that Act.
AUDIT, INQUIRY, INSPECTION AND SURCHARGE
67. Audit-
(1) The Central Registrar shall audit, or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every multi-State cooperative society at least once in each year.
(2) The audit under sub-section (1) shall include an examination of overdue debts, if any, the verification of the cash balance and securities, and a valuation of the assets and liabilities of the multi-State cooperative society.
(3) The person auditing the accounts of a multi-State cooperative society shall have free access to the books, accounts, papers, vouchers, stock and other property of such society and shall be allowed to verify its cash balance and securities.
(4) The directors, managers, administrators and other officers of the multi-State cooperative society shall furnish to the person auditing the accounts of the society all such information as to its transactions and working as such person may require.
(5) The Central Registrar or the person authorised by him under sub-section (1) to audit the accounts of a multi-State cooperative society shall have power, where necessary-
(a) to summon at the time of the audit any officer, agent, servant or member of the society, past or present, who, he has reason to believe can give valuable information in regard to transactions of the society or the management of its affairs; and
(b) to require the production of any book or document relating to the affairs or, any cash or securities belonging to, the society by any officer, agent, servant, or member of the society in possession of such books, documents, cash or securities and in the event of serious irregularities discovered during audit, to take them into custody.
(6) If at the time of audit the accounts of a multi-State cooperative society are not complete, the Central Registrar or the person authorised by him under sub-section (1) to audit may cause the accounts to be written up at the expense of the society.
(7) Audit fee, if any, due from any multi-State cooperative society shall be determined by the Central Registrar and shall be recoverable in the same manner as is provided in section 89.
68. Inspection of multi-State cooperative Societies-
(1) The Central Registrar, or any person authorised by him by general or special order in writing in this behalf, may inspect a multi-State cooperative society.
(2) (a) For the purpose of inspection under sub-section (1), the Central Registrar or the person authorised by him under that sub-section shall at all times have access to all books, accounts, papers, vouchers, securities, stock and other property of that society and may, in the event of serious irregularities discovered during inspection, take them into custody and shall have power to verify the cash balance of the society and subject to the general or special order of the Central Registrar to call a meeting of the board and also a general meeting of the society where such general meeting is, in his opinion, necessary. (b) Every officer of members of a multi-State cooperative society shall furnish information with regard to the working of the society as the Central Registrar or the person making such inspection may require.
(3) A copy of the report of inspection under this section shall be communicated to the multi-State cooperative society within a period of three months from the date of completion of such inspection.
69. Inquiry by Central Registrar-
(1) The Central Registrar may, of his own motion or on the application of a majority of the members of the board or of not less than one third of the members, hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a multi-State cooperative society.
(2) The Central Registrar or the person authorised by him under sub-section (1) shall have the following powers, namely;
(a) he shall at all reasonable times have free access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the multi-State cooperative society and may summon any person in possession or responsible for the custody of any such book, accounts, documents, securities, cash or other properties to produce the same, at any place specified by him;
(b) he may, notwithstanding any rules or bye-laws specifying the period of notice for a general meeting of the multi-State cooperative society, require the officers of the society to call a general meeting of the society by giving notice of not less than seven days at such time and place at the headquarters of the society to consider such matters, as may be directed by him; and where the officers of the society refuse or fail to call such a meeting he shall have power to call it himself;
(c) he may summon any person who is reasonably believed by him to have any knowledge of the affairs of the multi-State cooperative society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath.
(3) Any meeting called under clause (b) of sub-section (2) shall have all the powers of a general meeting of the society called under the bye-laws of the society and its proceedings shall be regulated by such bye-laws.
(4) The Central Registrar shall, within a period of three months of the date of receipt, communicate a brief summary of the report of the inquiry to the multi-State cooperative society, the financial institutions, if any, to which the society is affiliated, and to the person or authority, if any, at whose instance the inquiry is made.
70. Inspection of books of indebted multi-State cooperative societies-
(1) The Central Registrar shall, on the application of a creditor of a multi-State cooperative society, inspect, or direct some person authorised by him by order in writing in this behalf to inspect, the books of the society: Provided that no such inspection shall be made unless the applicant-
(a) satisfies the Central Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
(b) deposits with the Central Registrar such sum as security for the costs of the proposed inspection as the Central Registrar may require.
(2) The Central Registrar shall communicate the result of any such inspection to the creditor.
71. Cost of inquiry and inspection-Where an inquiry is held under section 69 or an inspection is made under section 70, the Central Registrar may apportion the costs, or such part of the costs, as he may think fit, between the multi-State cooperative society, the members or creditor demanding an inquiry or inspection, and the officers or former officers and the members or past members of that society; Provided that-
(a) no order of apportionment of the cost shall be made under this section unless the society or the person liable to pay the costs thereunder has had a reasonable opportunity of being heard;
(b) the Central Registrar shall state in writing under his own hand the grounds on which the costs are apportioned.
72. Recovery of costs-Any sum awarded by way of costs under section 71 may be recovered, on application to a magistrate having jurisdiction in the place where the person, from whom the money is claimable, actually and voluntarily resides or carries on business, and such magistrate shall recover the same as if it were a fine imposed by himself.
73. Repayment, etc.-
(1) If in the course of an audit, inquiry, inspection or the winding up of a multi-State cooperative society, it is found that any person, who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, the rules or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the Central Registrar may, of his own motion or on the application of the board, liquidator any creditor, inquire himself or direct any person authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person within a period of two years from the date of the report of the audit, inspection or inquiry or the date of the order of winding up, as the case may be; Provided that where the Central Registrar is satisfied that such inquiry could not be commenced during the period of two years aforesaid on account of fraud or concealment of facts make, or direct the inquiry to be made, with such period not exceeding six years from the date of the audit, inspection or the inquiry or the date of the order of winding up, as he may think fit.
(2) Where an inquiry is made under sub-section (1), the Central Registrar may, after giving the person concerned a reasonable opportunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and cost or compensation to such extent, as the Central Registrar may consider just and equitable.
SETTLEMENT OF DISPUTES
74. Disputes-
(1) Notwithstanding anything contained in any other law for the time being in force, if any dispute (other than a dispute regarding disciplinary action taken by a multi-State cooperative society against its paid employee or an industrial dispute as defined in clause (k) of section 2 of the Industrial Disputes Act, 1947) touching the constitution, management or business of a multi-State cooperative society arises-
(a) among members, past members and persons claiming through members and deceased members, or
(b) between a member, past member or a person claiming through a member, past member or deceased member and the multi-State cooperative society, its board or any officer, agent or employee of the multi-State cooperative society or liquidator, past or present, or
(c) between the multi-State cooperative society or its board and any past board, any officer, agent or employee, or any past officer, past agent of past employee or the nominee, heirs or legal representatives of any deceased officer, or deceased employee of the multi-State cooperative society, or
(d) between the multi-State cooperative society and any other multi-State cooperative society, between a multi-State cooperative society and liquidator of another multi-State cooperative society or between the liquidator of one multi-State cooperative society and the liquidator of another multi-State cooperative society, Such dispute shall be referred to the Central Registrar for decision and no court shall have jurisdiction to entertain any suit or other proceedings in respect of such dispute; Provided that all disputes in which a national cooperative society is a party shall be referred to the Central Registrar or any officer empowered to exercise the power of the Central Registrar.
(2) For the purposes of sub-section (1), the following shall be deemed to be disputes touching the constitution, management or business of a multi-State cooperative society, namely:
(a) a claim by the multi-State cooperative society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not;
(b) a claim by a surety against the principal debtor where the multi-State cooperative society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand is admitted or not;
(c) any dispute arising in connection with the election of any officer of a multi-State cooperative society.
(3) If any question arises whether a dispute referred to the Central Registrar is or is not a dispute touching the constitution, management or business of a multi-State cooperative society, the decision thereon of the Central Registrar shall be final and shall not be called in question in any court.
75. Limitation-
(1) Notwithstanding anything contained in the Limitation Act, 1963, but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to the Central Registrar shall,
(a) When the dispute relates to the recovery of any sum including interest thereon due to a multi-State cooperative society by a member thereof, be computed from the date on which such member dies or ceases to be a member of the society;
(b) save as otherwise provided in clause(c), when the dispute relates to any act or omission on the part of any of the parties referred to in clause (b) or clause (c) of sub-section (1) of section 74, be six years from the date on which the act or omission, with reference to which the dispute arose, took place;
(c) when the dispute relates to a multi-State cooperative society which has been ordered to be wound up under section 77 or in respect of which an administrator has been appointed under section 48, be six years from the date of the order issued under section 77 or section 48, as the case may be;
(d) when the dispute is in respect of an election of an officer of a multi-State cooperative society, be one month from the date of the declaration of the result of the election.
(2) The period of limitation in the case of any dispute, except those mentioned in sub-section (1), which are required to be referred to the Central Registrar shall be regulated by the provisions of the Limitation Act, 1963, as if the dispute were a suit and the Central Registrar a civil court.
(3) Notwithstanding anything contained in sub-sections(1) and (2), the Central Registrar may admit a dispute after the expiry of the period of limitation, if the applicant satisfies the Central Registrar that he had sufficient cause for not referring the dispute within such period.
76. Settlement of disputes-
(1) The Central Registrar may, on receipt of the reference of dispute under section 74.
(a) elect to decide the dispute himself, or
(b) transfer it for disposal to any other person who has been invested by the Central Government with powers in that behalf.
(2) The Central Registrar may withdraw any reference transferred under clause (b) of sub-section (1) and decide it himself or refer the same for decision to any other person who has been invested by the Central Government with powers in that behalf.
(3) The Central Registrar or any other person to whom a dispute is referred for decision under this section may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in the interest of justice.
WINDING UP OF MULTI-STATE COOPERATIVE SOCIETIES
77. Winding up of Multi-State Cooperative Societies-
(1) If the Central Registrar, after an inquiry has been held under section 69 or an inspection has been made under section 70, or on receipt of an application made by not less than three fourths of the members of a multi State cooperative society, is of the opinion that the society ought to be wound up, he may, after giving the society a reasonable opportunity of making its representations, by order, direct it to be wound up.
(2) The Central Registrar may, of his own motion and after giving the multi-State cooperative society a reasonable opportunity of making its representations, make an order directing the winding up of the multi-State cooperative society-
(a) where it is a condition of the registration of the society that the society shall consist of at least fifty members and the number of members has been reduced to less than fifty; or
(b) where the multi-State cooperative society has not commenced working within a period of six months of the date of its registration or such extended period as the Central Registrar may allow in this behalf or has ceased to function in accordance with cooperative principles.
(3) The Central Registrar may cancel an order for the winding up of a multi-State cooperative society, at any time, in any case where in his opinion, the society should continue to exist.
(4) A copy of such order shall be communicated by registered post to the multi-State cooperative society and to the financial institutions, if any, of which the society is a member.
(5) Notwithstanding anything contained in this section no cooperative bank shall be wound up except with the previous sanction in writing of the Reserve Bank.
78. Winding up of cooperative banks at the direction of Reserve Bank-Notwithstanding anything to the contrary contained elsewhere in this Act, the Central Registrar shall make an order for the winding up of a cooperative bank, if so required by the Reserve Bank in the circumstances mentioned in section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
79. Reimbursement to the Deposit Insurance Corporation by liquidator-Where a cooperative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, is wound up and the Deposit Insurance Corporation has become liable to the depositors of the insured bank under sub-section (1) of section 16 of that Act, the Deposit Insurance Corporation shall be reimbursed by the liquidator or such other person in the circumstances, to the extent and in the manner provided in section 21 of that Act.
80. Liquidator-
(1) Where the Central Registrar has made an order under section 77 for the winding up of a multi-State cooperative society, the Central Registrar may appoint a liquidator for the purpose and fix his remuneration.
(2) A liquidator shall, on appointment, take into his custody or under his control all the property, effects and actionable claims to which the multi-State cooperative society is or appears to be entitled and shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims and he may carry on the business of the multi-State cooperative society so far may be necessary with the previous approval of the Central Registrar.
(3) Where an appeal is preferred under clause (k) of sub-section (1) of section 90, an order for the winding up of a multi-State cooperative society made under section 77 shall not operate thereafter until the order is confirmed in appeal; Provided that the liquidator shall continue to have custody or control of the Property, effects and actionable claims mentioned in sub-section (2) and have authority to take the step referred to in that sub-section.
(4) Where an order for the winding up of a multi-State cooperative society is set aside in appeal, the property, effects and actionable claims of the society shall reinvest in the society.
81. Powers of liquidator-
(1) Subject to any rules made in this behalf, the whole of the assets of a multi-State cooperative society in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 80 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise.
(2) Such liquidator shall also have power, subject to the control of the Central Registrar-
(a) to institute and defend suits and other legal proceedings on behalf of the multi-State cooperative society by the name of his office;
(b) to determine from time to time the contribution (including debts due and costs of liquidation) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the multi-State cooperative society;
(c) to investigate all claims against the multi-State cooperative society and subject to the provisions of this Act, to decide questions of priority arising between claimants;
(d) to pay claims against the multi-State cooperative society, including interest up to the date of winding up according to their respective priorities, if any, in full or rateably, as the assets of the society may permit; the surplus, if any, remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case;
(e) to determine by what persons and in what proportions the costs of the liquidation are to be borne;
(f) to determine whether any person is a member, past member or nominee of a deceased member;
(g) to give such directions in regard to the collection and distribution of the assets of the multi-State cooperative society as may appear to him to be necessary for winding up the affairs of that society;
(h) to carry on the business of the multi-State cooperative society so far as may be necessary for the beneficial winding up of the same;
(i) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the multi-State cooperative society may be rendered liable;
(j) to make any compromise or arrangement with any person between whom and the multi-State cooperative society there exists any dispute and to refer to any such dispute for decision;
(k) after consulting the members of the multi State cooperative society, to dispose of the surplus, if any, remaining after paying the claims against the society, in such manner as may be prescribed;
(l) to compromise all calls or liabilities, to calls and debts and liabilities capable of resulting in debts, and all claims, present or future, certain or contingent, subsisting or alleged to be subsisting between the multi-State cooperative society and a contributory or other debtor or person apprehending liability to the multi-State cooperative society and all questions in any way relating to or affecting the assets or the winding up of the society on such terms as may be agreed any take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof.
(3) When the affairs of a multi-State cooperative society have been wound up, the liquidator shall make a report to the Central Registrar and deposit the records of the society in such place as the Central Registrar may direct.
82. Disposal of surplus assets-The surplus assets, as shown in the report of a liquidator of a multi-State cooperative society which is wound up;
(a) may, if the bye-laws of the multi-State cooperative society specify the purpose for which surplus shall be utilised, be utilised by the Central Registrar for the said purpose, and
(b) if the bye-laws aforesaid do not specify the purpose, be divided by the Central Registrar, with the previous sanction of the Central Government, amongst the members of such multi-State cooperative society in such manner as may be prescribed.
83. Priority of contributions assessed by liquidator-Notwithstanding anything contained in any law relating to insolvency the contribution assessed by a liquidator shall rank next to debts due to the Central Government or a State Government or a local authority in accordance with the order of priority in insolvency proceedings.
84. Power of Central Registrar to cancel registration of a multi-State Cooperative Society-
(1) The Central Registrar may, after considering the report of the liquidator made to him under sub-section (3) of section 81, order the registration of the multi State cooperative society to be cancelled and on such cancellation, that society shall stand dissolved.
(2) An order passed under sub-section (1) shall be communicated by registered post to the president of the multi-State cooperative society and to the financial institutions, if any, of which the society was a member.
EXECUTION OF DECREES, ORDERS AND DECISIONS
85. Execution of decisions, etc.-Every decision or order made under section 30, section 31, section 73, section 76, section 90, section 92 or section 93 shall, if not carried out.
(a) on a certificate signed by the Central Registrar or any person authorised by him in writing in this behalf, be deemed to be a decree of a civil court and shall be executed in the same manner as if it were a decree of such court or
(b) where the decision or order provides for the recovery of money, be executed according to the law for the time being in force for the recovery of arrears of land revenue: Provided that any application for the recovery in such manner of any sum shall be made-
(i) to the Collector and shall be accompanied by a certificate signed by the Central Registrar or by any person authorised by him in writing in this behalf;
(ii) within twelve years from the date fixed, in the decision or order and if no such date is fixed from the date of the decision or order, as the case may be; or
(c) be executed by the Central Registrar or any persons authorised by him in writing in this behalf, by attachment and sale or sale without attachment of any property of the person or a multi-State cooperative society against whom the decision or order has been made.
86. Execution of orders of liquidator-Every order made by the liquidator under section 81 shall be executed according to the law for the time being in force for the recovery of arrears of land revenue.
87. Attachment before award-
(1) Where the Central Registrar is satisfied that a party to any reference made to him under section 74 with intent to defeat or delay the execution of any decision that may be passed thereon is about to-
(a) dispose of the whole or any part of the property; or
(b) remove the whole or any part of the property from its existing precincts, the Central Registrar may, unless adequate security is furnished, direct conditional attachment of the said property or such part thereof as he think necessary.
(2) The attachment under sub-section (1) shall be executed by a civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such order.
88. Central Registrar or the person authorised by him to be civil court for certain purposes-The Central Registrar or any person authorised by him in writing in this behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be a civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963.
89. Recovery of sums due to Government-
(1) All sums due from a multi-State cooperative society, or from an officer or member or past member of a multi-State cooperative society, to the Central Government or a State Government, including any cost awarded to the Central Government or the State Government, as the case may be under any provision of this Act, may on a certificate issued by the Central Registrar in this behalf, be recovered in the same manner as arrears of land revenue.
(2) Sums due from a multi-State cooperative society to the Central Government or a State Government and recoverable under sub-section(1) may be recovered firstly from the property of the society and secondly from the members, past members or the estates of deceased members, subject to the limit of their liability; Provided that the liability of past members and the estate of deceased members shall in all cases be subject to the provision of section 28.
APPEALS AND REVISION
90. Appeals-
(1) Subject to the provisions of section 91, an appeal shall lie under this section against-
(a) an order made by the Central Registrar under sub-section (2) of section 7 refusing to register a multi-State cooperative society;
(b) an order made by the Central Registrar under sub-section (4) of section 9 refusing to register an amendment of the bye-laws of multi-State cooperative society;
(b) an order made by the Central Registrar under sub-section (4) of section 9 refusing to register an amendment of the bye-laws of multi-State cooperative society;
(c) a decision of a multi State cooperative society refusing or deemed to be refusing under sub-section (5) of section 19 to admit any person as a member of the society who is otherwise duly qualified for membership under the bye-laws of the society;
(d) a decision of a multi-State cooperative society under sub-section (1) of section 21 expelling any of its members;
(e) a decision of a multi-State cooperative society removing an elected members of a board under section 39;
(f) an order made by the Central Registrar under section 40 removing a member from his office;
(g) an order made by the Central Registrar under section 48 superseding the board of directors of a multi-State cooperative society;
(h) an order made by the Central Registrar under section 71 apportioning the cost of an inquiry held under section 69 or an inspection made under section 70;
(i) an order made under sub-section (2) of section 73;
(j) a decision or order made under section 76;
(k) an order made by the Central Registrar under section 77 directing the winding up of multi-State cooperative society;
(l) an order made by the liquidator of a multi-State cooperative society under section 81;
(m) an order under section 87 directing attachment of property before award.
(2) An appeal against any decision or order under sub-section (1) shall be made within sixty day from the date of such decision or order,
(a) if the decision or order was made by the Central Registrar, to the prescribed authority;
(b) if the decision was made by a multi-State cooperative society (other than a national cooperative society), or a liquidator of such society, to the officer who is empowered to exercise the powers of the Central Registrar under sub-Section (2) of section 4; or
(c) if the decision was made by a national cooperative society or a liquidator of such society, to the Central Registrar appointed under sub-section(1) of section 4.
(3) The appellate authority may, if satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the period of sixty days, admit the appeal within such further period not exceeding sixty days as that authority may deem fit.
(4) In disposing of an appeal under this section, the appellate authority may, after giving the parties a reasonable opportunity of making their representations, pass such order thereon as that authority may deem fit.
(5) The decision or order of the appellate authority on appeal shall be final.
91. No appeal or revision in certain cases-Notwithstanding anything contained in this Act, where with the previous sanction in writing of or on requisition by, the Reserve Bank, a cooperative bank-
(a) is being wound up; or
(b) in respect of which a scheme of amalgamation or reorganisation is given effect to; or
(c) in respect of which an order for the supersession of the board and the appointment of an administrator therefor has been made, no appeal, revision or review there against shall lie or be permissible, and the sanction or requisition of the Reserve Bank shall not be liable to be called in question.
92. Revision-
(1) Subject to the provisions of section 91, the Central Government may, of its own motion or on an application, call for and examine the records of any proceedings in which no appeal lies to the appellate authority under section 90 for the purpose of satisfying itself as to the legality or propriety of any decision or order made under this Act and if in any case it shall appear to the Central Government that any such decision or order should be modified, annulled or revised or remitted for reconsideration, the Central Government may, after giving the party to be affected thereby a reasonable opportunity of being heard, pass such order thereon as it may deem fit. Provided that the application to the Central Government for the exercise of the power under this section shall be preferred within ninety days from the date on which the decision or order to which the application relates was communicated to the applicant; Provided further that the Central Government may, if satisfied that the appellant was prevented by sufficient cause from making the application within the said period of ninety days, admit the application after the expiry of the said period.
(2) The Central Government may suspend the execution of the decision or order pending the exercise of its power under sub-section (1) in respect thereof.
(3) The Central Government may award costs in proceedings under this section to be paid out of the funds of the multi-State cooperative society concerned or by such party to the application for revision as the Central Government may deem fit.
93. Review-
(1) The appellate authority under section 90 may, on the application of any party interested, review its own order in any case and pass in reference thereto such order as it thinks fit; Provided that no such application shall be entertained unless the appellate authority is satisfied that there has been a discovery of new and important matter or evidence which after exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when the order was made or that there has been some mistake or error apparent on the face of the record or for any other sufficient reason; Provided further that no such order shall be made under this sub-section unless notice has been given to all interested parties and they have been afforded a reasonable opportunity of being heard.
(2) An application for review under sub-section (1) by any party shall be made within thirty days from the date of communication of the order of the appellate authority sought to be reviewed.
94. Interlocutory orders-Where an appeal is made under section 90 or where the Central Government calls for the records of a case under section 92, the appellate authority or the Central Government, as the case may be, may in order to prevent the ends of justice being defeated, make such interlocutory orders, including an order of stay, pending the decision of the appeal or revision as such authority or the Central Government may deem fit.
OFFENCES AND PENALTIES
96. Offences-
(1) A multi-State cooperative society or an officer or member thereof wilfully making a false return or furnishing false information, or any person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Act, or wilfully not furnishing any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two hundred rupees.
(2) Any employer who without sufficient cause, fails to pay to a multi-state cooperative society the amount deducted by him under section 58 within a period of fourteen days from the date on which such deduction is made, shall, without prejudice to any action that may be taken against him under any other law for the time being in force, be punishable with fine which may extend to five hundred rupees.
(3) Any officer or custodian who wilfully fails to hand over custody of books, accounts, documents, records, cash, security and other property belonging to a multi-State cooperative society of which he is an officer or custodian, to a person entitled under section 49, section 67, section 68, section 69 or section 80 shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing breach, with a further fine which may extend to five hundred rupees for every day during which the breach is continued after conviction for the first such breach.
97. Cognizance of offences-
(1) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence under this Act.
(2) No prosecution shall be instituted under this Act without the previous sanction of the Central Registrar and such sanction shall not be given without giving to the person concerned a reasonable opportunity to represent his case.
MISCELLANEOUS
98. Copy of Act, rules and bye-laws etc., to be open to inspection-Every multi-State cooperative society shall keep a copy of this Act, the rules and its bye-laws and also a list of its members, open to inspection free of charge at all reasonable times at the registered address of the society.
99. Power to exempt multi-State Cooperative Societies from conditions as to registration-
(1) Notwithstanding anything contained in this Act, the Central Government may, by general or special order, for reasons to be recorded therein, and subject to such conditions, if any, as may be specified therein exempt any multi-State cooperative society or class of such societies from any of the requirement of this Act relating to registration;
(2) (a) The Central Government may, by general or special order and for reasons to be recorded therein; (i) exempt any multi-State cooperative society or any class of such societies from any of the provisions of this Act or of the rules; or (ii) direct that such provisions shall apply to such society or class of societies with such modifications not affecting the substance thereof as may be specified in the order; Provided that no order shall be made under sub-clause (ii) so as to prejudice the interests of such society or class of such societies without a reasonable opportunity being given to make representation in the matter. (b) Every order made under clause (a) shall be published in the Official Gazette.
100. Liquidator to be public servant-Any person appointed as liquidator under the provisions of this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
101. Notice necessary in suits-No suit shall be instituted against a multi-State cooperative society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of ninety days next after notice in writing has been delivered to the Central Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left.
102. Certain Acts not to apply-
(1) The provisions of the Companies Act, 1956 and the Monopolies and Restrictive Trade Practices Act, 1969 shall not apply to multi-State cooperative societies.
(2) The multi-State cooperative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices, as defined in the Monopolies and Restrictive Trade Practices Act, 1969.
103. Savings of existing multi-State Cooperative Societies-
(1) Every multi-State cooperative society existing immediately before the commencement of this Act which has been registered under the Cooperative Societies Act, 1912 or under any other Act relating to cooperative societies in force, in any State or in pursuance of the provisions of the Multi-unit Cooperative Societies Act, 1942, shall be deemed to be registered under the corresponding provisions of this Act, and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, or the rules, continue to be in force until altered or rescinded.
(2) All appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts referred to in sub-section (1) shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling the registration of a multi-State cooperative society shall be deemed, unless the society has already been finally liquidated, to be an order made under section 77 for its being wound up.
104. Power to amend second Schedule-
(1) If the Central Government is satisfied that any multi-State cooperative society should be designated as a national cooperative society or any national cooperative society specified in the second Schedule should be omitted from the said Schedule, it may, by notification, amend the said Schedule so as to include there in such multi-State cooperative society or exclude therefrom such national cooperative society, and thereupon the said Schedule shall be deemed to have been amended accordingly.
(2) A copy of every notification made under sub-section (1) shall be laid before each House of Parliament as soon as may be after it is made.
105. Bar of jurisdiction of courts-
(1) Save as otherwise provided in this Act, no court shall have jurisdiction in respect of-
(a) the registration of a multi-State cooperative society or its bye-laws or of an amendment of the bye-laws;
(b) the removal of board of directors;
(c) any dispute required under section 74 to be referred to the Central Registrar; and
(d) any matter concerning the winding up and the dissolution of a multi State cooperative society.
(2) While a multi-State cooperative society is being wound up, no suit or other legal proceedings relating to the business of such society, shall be proceeded with or instituted against the liquidator or against the society or any member thereof, except by leave of the Central Registrar and subject to such terms and conditions as he may impose.
(3) Save as otherwise provided in this Act, no decision or order made under this Act shall be questioned in any court.
106. Powers of civil court-
(1) In exercising the functions conferred on him by or under this Act, the Central Registrar, or any other person deciding a dispute under section 76 and the liquidator of a multi-State cooperative society and a person entitled to audit, inspect or hold an inquiry under this Act, shall have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908, in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of any document;
(c) proof of facts by affidavits; and
(d) issuing commissions for examination of witnesses.
(2) In the case of an affidavit, any officer appointed by the Central Registrar, or any other person deciding a dispute or the liquidator, as the case may be, may administer oath to the deponent.
107. Indemnity-No suit, prosecution or other legal proceedings shall lie against the Central Registrar or any person subordinate to him or acting on his authority or against any other person in respect of anything in good faith done or purporting to have been done under this Act.
108. Opening of branches-
(1) Notwithstanding anything contained to the contrary in any law relating to cooperative societies in force in a State, a multi-State cooperative society, not being a cooperative bank, may open branches or places of business in any place in India.
(2) Where a multi-State cooperative society opens branches or places of business in any State under sub-section (1), the Registrar of Cooperative Societies in such State shall not exercise any jurisdiction in relation to such branches or places of business nor shall call for any returns or information therefrom.
109. Power to make Rules-
(1) The Central Government may, by notification, make rules to carry out the provisions of the Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
(i) the form to be used, the particulars to be given and the conditions to be complied with in the making of applications under section 6 for the registration of a multi-State cooperative society and the procedure in the matter of such applications.
(ii) the number of the applicants and the manner in which the order of refusal to register a multi-State cooperative society and its bye-laws shall be communicated under sub-section (2) of section 7;
(iii) the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub-section (4) of section 9 and section 18;
(iv) the procedure and conditions for change in the extent of the liability of a multi-State cooperative society under section 13;
(v) the matters in respect of which a multi-State cooperative society may make bye-laws and the procedure to be followed in making, altering and abrogating bye-laws under section 9 or section 18 and the conditions to be satisfied prior to such making, alteration or abrogation.
(vi) the conditions to be complied with under section 19 by persons applying for admission as members, for the election and admission of members and the payment to be made and the interest to be acquired before the exercise of the right of membership;
(vii) the number of individuals who may be admitted as members of the National Cooperative Union of India Limited, New Delhi as required by section 19 and their qualifications;
(viii) the withdrawal and expulsion of members and the payments, if any, to be made to members who withdraw or are expelled and the liability of past members or the estates of deceased members;
(ix) the votes of members, as required by section 22;
(x) the maximum number of shares of a multi-State cooperative society which may subject to the provisions of section 24, be held by a member;
(xi) the constitution and powers of a smaller body representing the general body under section 29.
(xii) general meeting of the members under section 30, the period within which such meeting be called and the procedure at such meetings and the powers to be exercised by such meetings;
(xiii) the proportion of individuals and multi-State cooperative societies in the constitution of the board of directors and the general body under section 32;
(xiv) the election of members of the boards under section 35 and nomination of members to such boards under section 41, the appointment, or election of officers and the powers to be exercised and the duties to be performed by the boards and other officers;
(xv) the restrictions and conditions subject to which honorarium may be paid under section 38 to the elected chairman or president of the board of directors for services rendered;
(xvi) the additional measures and acts which may be taken or, as the case may be, done by the board under section 42;
(xvii) the number of meetings of the board, the venue of such meetings and the number of committees or sub-committees for purposes of sections 43 and 46;
(xviii) the appointment and regulation of work entrusted to persons replacing the board in pursuance of section 48;
(xix) the constitution of a body of persons under section 50 for the preparation of a list of persons eligible for appointment to the posts of Chief Executive and other management posts in national cooperative societies and the amount of the maximum pay-scale applicable to such posts;
(xx) the recruitment, remuneration, allowances and other conditions of service of officers and other employees of national cooperative societies under section 50;
(xxi) prohibiting a multi-State cooperative society from electing a defaulting member, or a representative of defaulting member-society, on its board;
(xxii) the returns to be submitted by a multi-State cooperative society to the Central Registrar, the persons by whom and the form in which such returns shall be submitted and in case of failure to submit any such returns, the levy of expenses of preparing it.
(xxiii) the persons by whom and the form in which copies of entries in books of multi-State cooperative societies may be certified under section 56 and the charges to be levied for the supply of such copies;
(xxiv) the terms and conditions on which the Central Government may make share capital contribution or give financial or other assistance to multi-State cooperative societies under section 59 and the terms and conditions on which the Central Government may guarantee the payment of the principal or interest on debentures issued by multi-State cooperative societies or loans or deposits raised by them;
(xxv) the procedure to be followed in proceedings before the Central Registrar or other persons deciding disputes including the appointment of a guardian for a party to the dispute who is a minor or who, by reason of unsoundness of mind or mental infirmity, is incapable of protecting his interest, and the levy of expenses relating to such proceedings;
(xxvi) The mode in which the value of a deceased member's share or interests shall be ascertained and the nomination of a person to whom such share or interest may be paid or transferred;
(xxvii) the payments to be made and conditions to be complied with by members applying for loans, the period for which any loans may be made and the maximum amount which may be lent to any members;
(xxviii) the formation and maintenance of reserve funds and other funds under section 61 and the objects to which such funds may be applied, and the investment of any funds under the control of a multi-State cooperative society under section 62;
(xxix) the conditions under which profits may be distributed under section 61 to the members of a multi-State cooperative society and the maximum rate of dividend which may be paid by multi-State cooperative societies;
(xxx) the prohibitions and restrictions subject to which multi-State cooperative societies may, under section 65, transact business with persons who are not members;
(xxxi) the accounts and books to be kept by a multi-State cooperative society and the audit of such accounts and the charges, if any, to be made for such audit under section 67 and the periodical publication of a balance sheet showing the assets and liabilities of a multi-State cooperative society;
(xxxii) the calculation and writing off of bad debts by multi State Cooperative societies;
(xxxiii) the appointment of persons for settlement of disputes under section 76;
(xxxiv) the procedure to be followed by a liquidator appointed under section 80 in respect of provisions of section 81.
(xxxv) the manner in which the surplus assets may be divided amongst the members of the multi-State cooperative society under section 82;
(xxxvi) the procedure for execution of decisions under section 85;
(xxxvii) the procedure to be followed in presenting and disposing of appeals under section 90;
(xxxviii) the issue and service of processes and for proof of service thereof;
(xxxix) the manner of effecting attachment;
(xl) the custody, preservation and sale of property under attachment;
(xli) the investigation of claims by persons other than the defaulter to any right or interest in the attached property, and the postponement of sale pending such investigation;
(xlii) the immediate sale of perishable articles;
(xliii) the inspection of documents in the office of the Central Registrar or of any other officer or authority and the levy of fees for granting certified copies of the same;
(xliv) the manner in which funds may be raised by multi-State cooperative society or a class of multi-State cooperative societies by means of shares or debentures or otherwise and the quantum of funds so raised;
(xlv) the procedure under section 95 for reconstitution and reorganisation of societies which become multi-State cooperative societies consequent on reorganisation of a State;
(xlvi) the method of communicating or publishing any decision or order required to be communicated or published under this Act or the rules;
(xlvii) the manner and the periodicity or returns of pending cases of registration of multi-State cooperative societies and amendments of bye-laws to be sent by the Central Registrar to the Central Government;
(xlviii) any other matter which is required to be, or may be prescribed.
(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in sessions for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification to 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 or anything previously done under that rule.
110. Repeal-The Multi-unit Cooperative Societies Act, 1942 is hereby repealed.
Cooperative Principles
1. Membership of a multi-State cooperative society (hereafter in this Schedule referred to as the society) should be voluntary and open, without any social, political, or religious discrimination, to all persons who can make use of its services.
2. In a society other than that with institutional membership, individual member should enjoy equal rights of voting-one member, one vote.
3. (i) Surplus or savings, if any, arising out of the operations of the society belong to the society as a whole and no individual member has a claim to the surplus. (ii) The surplus should be utilised for all or any of the following purposes, namely:-
(a) providing for development of the business of the society;
(b) providing services for the common enjoyment of members;
(c) distribution among the members in proportion to their transactions with the society.
4. The society should undertake education of its members, office-bearers and employees and the general public regarding the principles and practice of cooperation.
5. The society should actively cooperate in every practical way with other cooperative societies at local, national or international levels.
6. The share capital of a society shall receive strictly limited rate of interest (that is to say dividend).
7. The affairs of a society should be administered by the management in accordance with democratically expressed will of the members.
8. The management of the society is accountable to its own members.
The use of bio-technologies will be promoted for evolving plants which consume less water, are drought resistant, pest resistant, contain more nutrition, give higher yields and are environmentally safe. Conservation of bio-resources through their ex situ preservation in Gene Banks, as also in situ conservation in their natural habitats through bio-diversity parks, etc., will receive a high priority to prevent depletion of bio-diversity.
Balanced and conjunctive use of bio-mass, organic and inorganic fertilizers and controlled use of agro chemicals through integrated nutrients and pest management (INM & IPM) will be promoted.
A regionally differentiated strategy will be pursued, taking into account the agronomic, climatic and environmental conditions to realize the full growth potential of every region. Special attention will be given to development of new crop varieties, particularly of food crops, with higher nutritional value.
A major thrust will be given to development of rainfed and irrigated horticulture, floriculture, roots and tubers, plantation crops, aromatic and medicinal plants, bee-keeping and sericulture for augmenting food supply, promoting exports and generating employment in the rural areas.
Development of animal husbandry, poultry, dairying and aqua-culture will receive a high priority in the efforts for diversifying agriculture, increasing animal protein availability in the food basket and for generating exportable surpluses.
An integrated approach to marine and inland fisheries, designed to promote sustainable aquaculture practices, will be adopted.
The regionalization of agricultural research based on identified agro-climatic zones will be accorded high priority. Application of frontier sciences like bio-technology, remote sensing technologies, pre and post-harvest technologies, energy saving technologies, technology for environmental protection through national research system as well as proprietary research will be encouraged.
The research and extension linkages will be strengthened to improve quality and effectiveness of research and extension system.
Adequate and timely supply of quality inputs such as seeds, fertilizers, plant protection chemicals, bio-pesticides, agricultural machinery and credit at reasonable rates to farmers will be the endeavour of the Government.
The Government will endeavour to create a favourable economic environment for increasing capital formation and farmer's own investments by removing distortions in the incentive regime for agriculture, improving the terms of trade with manufacturing sectors and bringing about external and domestic market reforms.
Rural electrification will be given a high priority as a prime mover for agricultural development. The quality and availability of electricity supply will be improved and the demand of the agriculture sector will be met adequately in a reliable and cost effective manner.
Bridging the gap between irrigation potential created and utilized, completion of all on-going projects, restoration and modernization of irrigation infrastructure including drainage, evolving and implementing an integrated plan of augmentation and management of national water resources will receive special attention for augmenting the availability and use of irrigation water.
Emphasis will be laid on development of marketing infrastructure and techniques of preservation, storage and transportation with a view to reducing post-harvest losses and ensuring a better return to the grower.
Setting up of agro-processing units in the producing areas to reduce wastage, especially of horticultural produce, increased value addition and creation of off-farm employment in rural areas will be encouraged.
Institutional reforms will be pursued so as to channelise their energies for achieving greater productivity and production.
The Government will provide active support for the promotion of cooperative form of enterprise and ensure greater autonomy and operational freedom to them to improve their functioning. Endeavour will be made to provide a package insurance policy for the farmers, right from sowing of the crops to post-harvest operations, including market fluctuations in the prices of agricultural produce.
The price structure and trade mechanism will be continuously reviewed to ensure a favourable economic environment for the agriculture sector and to bring about an equitable balance between the rural and the urban incomes.
Quality consciousness amongst farmers and agro processors will be created. Grading and standardization of agricultural products will be promoted for export enhancement. Application of science and technology in agriculture will be promoted through a regular system of interface between Science and Technology institutions and the users/potential users to make the sector globally competitive.
The database for the agriculture sector will be strengthened to ensure greater reliability of estimates and forecasting which will help in the process of planning and policy making.
Follow up Action
Various Central Sector and Centrally Sponsored Schemes are being implemented by the Government of India and the State Governments for development of agriculture and allied activities as per guidelines of the Agriculture Policy. Following major initiatives have been taken to accelerate the pace of developmental activity and implement the objectives of the Agriculture Policy:
Macro Management Scheme has been launched after integrating 27 ongoing Centrally Sponsored Schemes to enable a shift from programmatic approach to a macro management mode of assistance to the states in the form of work plans based on crop/area specific, regionally different strategies, to provide flexibility to State Governments and to ensure timely and effective application of limited financial resources.
Common guidelines have been issued for National Watershed Development Project for Rainfed Areas to harmonize the implementing norms with other watershed development programmes. A Watershed Development Fund with a corpus of Rs.200 crores each from NABARD and the Department of Agriculture & Cooperation, has been created.
A Technology Mission for the Integrated Development of Horticulture in the North-Eastern Region has been launched.
Seed Legislation is under revision to provide fillip to varietal research and plant breeding. Enactment of legislation on the "Protection of Plant Varieties and Farmers Rights". This is likely to stimulate investment and initiative both in public and private sector for development of new plant varieties and a vibrant seed industry. A National Seed Policy is under formulation. A Scheme for Seed Crop Insurance has been launched to cover the risks involved in seed production. A Seed Bank has been established to meet contingent requirements of seed in the wake of natural calamities.
Increasing availability, flexibility and security in the flow of credit to the farmers. All eligible farmers are proposed to be covered under the Kisan Credit Cards scheme within the next 3 years. A personal insurance package is proposed to be extended to Card Holders covering them against risk to life and injury.
A scheme has been introduced for provision of capital subsidy for construction/modernization and expansion of cold storages and storages for horticultural produce.
Rural Infrastructure Development Fund corpus has been increased in 2001-02 from Rs. 45,00,00,00 thousands to Rs.5,00,00,000 thousands and the interest rate charged by NABARD reduced.
Market Information Network has been launched with the objective to provide farmers latest information on price movements of agricultural commodities and other essential data.
Cooperative Sector Reforms: a new Bill has been formulated and introduced in Parliament for replacing the existing Multi-State Cooperative Societies Act, 1984.
Formulation of new subsidy linked scheme for establishment of rural godowns.
Promotion of Food Processing Industries and value addition in agriculture through the excise exemptions and other interventions.
Standing Committee of Union Ministers and Chief Ministers constituted to consider issues concerning agricultural strategies, food management and promotion of agriculture exports. The Committee has approved the outline of the proposed Grain Bank Scheme which will be extended to BPL families in identified areas and developed on the contours of the recently launched Sampoorna Grameen Rozgar Yojana.
a. "Act" means the Insecticides Act, 1968(46 of 1968);
b. (2) ***
c. (3) "expiry date" means the date that is mentioned on the container, lebel or wrapper against the column ' date of Expiry;]
d. (4) 'form" means a form set out in the First Schedule;
e. "laboratory" means the Central Insecticides Laboratory;]
f. schedule" means a schedule annexed to these rules;
g. (2) ****
h. (4) "pests" means any insects, rodents, fungi weeds and other forms of plant or animal life not useful to human beings;]
i. (3) "primary package" means the immediate package containing the insecticides;
j. "principal" means the importer or manufacturer of insecticides, as the case may be,
k. "registration" includes provisional registration;
l. "rural area" means an area which falls outside the limits of any municipal corporation or municipal committee or a notified area committee or a cantonment;
m. "schedule' means a schedule annexed to these rules;
n. "secondary package" means a package which is neither a primary package not a transportation package;
o. "section" means a section of the Act;
p. "testing facility" means an operational unit where the experimental studies are being carried out or have been carried out in relation to submission of data on product quality or on safety or on efficacy, or an residues or on stability in storage of the insecticides for which an application for registration is made;
q. "transportation package" means the outermost package used for transportation of insecticides.)
1. substituted by GSR 736(E), dt. 9-12-1977.
2. Omitted by GSR 736(E), dt. 9-12-1977.
3. Inserted by GSR 533(E), dt 6-8-1993.
4. Substituted by GSR 533(E), dt 6-8-1993
r. (1) 'commercial pest control operation means any application or dispersion of Insecticide (s) including fumigants in household or public or private premises or land and includes pest control operations in the field including aerial applications for commercial purposes but excludes private use;
s. pest control operators' means any person who undertakes pest control operations and includes the person or the firm or the company or the organisation under whose control such a person (s) is operating.
Functions of the Board, Registration Committee and Laboratory
2. Functions of the Board
The board shall, in addition to the functions assigned to it by the act, carry out the following functions, namely:
a. advise the Central Government on the manufacture of insecticides under the industries development and regulation act, 1951 (65 of 1951);
b. specify the uses of the classification of insecticides on the basis of their toxicity as well as their being suitable for aerial application;
c. advise tolerance limits for insecticides, residues and an establishment of minimum intervals between the application of insecticides and harvest in respect of various commodities;
d. specify the shelf-life of insecticides;
e. suggest colourisation, including colouring matter which may be mixed with concentrates of insecticides, particularly those of highly toxic nature;
f. carry out such other functions as are supplemental, incidental or consequential to any of the functions conferred by the act or these rules.
3. Functions of Registration Committee
The registration committee shall, in addition to the functions assigned to it by the act perform the following functions, namely;
a. specify the precautions to be taken against poisoning through the use or handling of insecticides;
b. carry out such other incidental or consequential matters necessary for carrying out the functions assigned to it under the act or these rules.
4. Functions of Laboratory
The functions of the Laboratory shall be as follows;
a. to analyse such samples of insecticides sent to it under the act by any officer or authority authorised by the central or state governments and submission of certificates of analysis to the concerned authority;
b. to analyse samples of materials for insecticide residues under the provisions of the Act;
c. to carry out such investigations as may be necessary for the purpose of ensuring the conditions of registration of insecticides;
d. to determine the efficacy and toxicity of insecticides;
e. to carry out such other functions as may be entrusted to it by the central government or by a state government with the permission of the central government and after consultation with the board.
1. sub-clauses ® and (s) inserted by Insecticides (Amendment ) Rules, 1999 dt, 20-5-1999
REGISTRATION OF INSECTICIDES
5. Manner of registration
1.
a. an application for registration of an insecticide under the act shall be made in forms I and the said form including the verification portion, shall be signed in case of an individual by the individual himself or a person duly authorised by him in case of Hindu undivided family, by the karta or any person duly authorised by him, in case of partnership firm by the managing partner, in case of a company by any person duly authoriesed in that behalf by the board of directors and in any other case by the person in charge or responsible for the conduct of the business. Any change in members of Hindu undivided family or partners or the board of directors or the person in charge as the case may be shall be forthwith intimated to the secretary central insecticides board and registration committee and the licensing officer.
b. The registration committee may, if necessary, direct inspection of the testing facility for establishing the authenticity of the data.
2. an application form duly filled together with a bank draft, drawn in favour of the accounts officer directorate or plant protection quarantine & storage, payable at Faridabad towards registration fee shall be sent to the secretary registration committee, directorate of plant protection, quarantine & storage NH-IV Faridabad-121001, Haryana. The fee shall be payable as follows:-
i. Rupees five thousand each in case of application for registration under sections 9(3) and 9(3B) of the insecticides act, 1968;
ii. rupees two thousand five hundred in case of application for registration under section 9(4) of the insecticides act,1968.
3. the registration fee payable shall be paid by a demand draft drawn on the state bank of India Faridabad, in favour of the Accounts Officer, Directorate of plant protection, Quarantine and storage, Faridabad, Haryana.
4. The certificate of registration shall be in Form II or Form II-A as the case may be and shall be subject to such conditions as specified therein.
6A. (2) Issue of Duplicate Certificate of Registration
A fee of rupees one Hundred shall be paid in the form of demand draft drawn on the state bank of India, Faridabad in favour of the Accounts Officer, directorate of Plant protection, Quarantine & storage, Faridabad, Haryana for a duplicate copy of a certificate of Registration if the original is defaced, damaged or lost.
6B. (40 Addition, Deletion or Alteration on the Certificate of Registration including Labels and Leaflets.
A fee of rupees one hundred shall be paid in the form of demand draft drawn on the State bank of India, faridabad, in favour of the Accounts Officer, Directorate of plant protection, Quarantine and storage, faridabad, Haryana on each occasion for each.
1. Subsituted by GSR 533(e)( dt. 6.8.1993.)
2. Substituted by insecticides (Amendment ) rules, 1999, dt. 20-5-1999
3. Inserted by GSR 533(E) dt. 6.8.1993
4. Inserted by insecticides (amendment ) rules, 1999, dt 20-5-1999
Certificate of registration for addition deletion, alteration on the certificate of registration including labels and leaflets.
7. Appeal
1. An appeal against any decision of the registration committee under section 9 shall be preferred in writing 2 in Form II-B in duplicate to the central government in the Department of Agriculture.
2. The appeal shall be in writing and shall set out concisely and under distinct heads the grounds on which the appeal is preferred.
3. every appeal shall be accompanied by a demand draft of rupees one thousand towards fee and a copy of the decision appealed against.
4. the fee payable for preferring an appeal shall be paid by a demand draft drawn on the State bank of India, New Delhi in favour of the pay and accounts officer department of Agriculture & cooperation, New Delhi.
8. Manner of publication of refusal to register or cancellation of certificate of registration
A refusal to register an insecticide or a cancellation of the certificate of registration of an insecticide shall also be published in any two English and hindi newspapers which have circulation in a substantial part of India and in any of the journals published by the Department of Agriculture of the Government of India.
GRANT OF LICENCES
9. Licences to Manufacture Insecticides
1. application for the grant or renewal of a licence to manufacture any insecticide shall be made in Form III or form IV as the case may be to the licensing officer and shall be accompanied by a fee of rupees two thousand for every insecticide and a maximum of rupees twenty thousand for all insecticides for which the licence is applied.
2. if an insecticide is proposed to be manufactured at more than one place, separate applications shall be made and separate licences shall be issued in respect of every such place.
3. a licence to manufacture insecticides shall be issued in Form V and shall be subject to the following conditions namely:
i. the licence and any certificate of renewal shall be kept on the approved premises and shall be produced for inspection at the request of an insecticide inspector appointed under the act or any other officer or authority authorised by the licensing officer.
ii. Any change in the expert staff named in the licence shall forthwith be reported to the licensing officer.
iii. If the licensee wants to undertake during the currency of the licence to manufacture for sale of additional insecticides he shall apply to the licensing officer for the necessary endorsement in the licence on payment of the prescribed fee for every category of insecticides.
iv. An application for the renewal of a licence shall be made as laid down in rule 11.
1. substituted by insecticides (amendment ) rules, 1999, dt, 20.5.1999
2. substituted by GSR 474(E) dt. 24-7-1977, sec 3(ii), dt 24-7-1976.
v. the licensee shall comply with the provisions of the act and the rules made thereunder for the time being in force.
vi. the licensee shall obtain ISI mark certificate from bureau of Indian Standard within three months of the commencement of the manufacture.
vii. No insecticides shall be sold or distributed without ISI mark certification.
4. a licensing officer may after giving reasonable opportunity of being heard, to the applicant refuse to grant any licence.
(4A) No licence to manufacture an insecticide shall be granted unless the licensing officer is satisfied that necessary plant and machinery safety devices and first aid facilities, etc., exist in the premises where the insecticide is proposed to be manufactured.
5. (3) a fee of rupees one hundred shall be paid for a duplicate copy of a licence issued under this rule, if the original is defaced, damaged or lost.
10. Licence for Sale etc., of Insecticides
1. applications for the grant or renewal of a licence to sell, stock or exhibit for sale or distribute insecticides shall be made in form VI for Form VII, as the case may be to the licensing officer and shall be a accompanied by the fees specified in sub rule (2).
2. (3) the fee payable under sub-rule (1) for grant or renewal of a licence shall be rupees five hundred for every insecticide for which the licence is applied subject to place, if any insecticide is sold, stocked or exhibited for sale at more than one place.
Provided that the maximum fee payable in respect of insecticides commonly used for household purposes and registered as such shall be rupees two hundred fifty for every place;
PROVIDED FURTHER that, if the place of sale is established in the rural areas, the fee shall be one fifth of the fee specified in this rule.
3. if any insecticide is proposed to be sold or stocked for sale at more than one place, separate applications shall be made and separate licences shall be issued in respect of every such place 4 and for every insecticides.
3A) 5 Pest Control Operators-
i. any person who desires to undertake pest control operations, with the use of Aluminium Phosphide, methyl bromide. Ethylene dibromide or as notified shall apply for a licence in Form VI-A with a fee of rupees one thousand for each place of operation. The licence granted for such operations shall be valid for a period of five years provided that the licence shall be renewed after verification or inspection at the expiry of this period on application in Form VI-B for a further period of five years with an application fee of rupees one thousand.
ii. A licence to stock and use insecticides for pest control operators will be issued in Form VI-C.
1. sub-clause (vi) and (vii) inserted by Insecticides (Amendment Rules, 1999, dt 20-05-1999.
2. Substituted by GSR 533(E), dt. 6-8-1993, w.e.f. 6-8-1993.
3. Substituted by Insecticides (Amendment) Rules, 1999,dt. 20-5-1999.
4. Added by GSR 533(E), dt. 6-8-1993, w.e.f. 6.8.1993.
5. Inserted by Insecticides (Amendment) Rules, 199.dt. 20-5-1999.
iii. Any person who applies for grant of licence for undertaking pest control operations should be at least a graduate in Agriculture or in science with Chemistry as a subject with a certificate of minimum 15 days training from any of the following institutions-Central Food Technological Research Institute, Mysore; Indian Grain storage Institute, Hapur and National Plant Protection Training Institute, Hyderabad.
iv. For undertaking fumigation, the pest control operators shall have to contain special permission from the plant protection adviser to the Government of India in addition to obtaining licence. The plant protection adviser will grant such permission as per procedure or guide lines approved by the Registration committee.
v. The commercial pest control operators shall adhere to the prescribed guidelines or procedures as laid down by the Plant Protection adviser to the Government of India in regard to the fumigation operations undertaken by them.
4. (1) A licence to sell, stock or exhibit for sale or distribute insecticides shall be issued in Form VIII and shall be subject to the following conditions, namely:
i. The licence shall be displayed, in a prominent place in the part of the premises open to the public.
ii. The licence shall comply with the provisions of the Act, and the rules made thereunder of the time being in force.
iii. (2) Where the licensee wants to sell, stock or exhibit for sale or distribute any additional insecticides during the currency of the licence on payment of fees specified in sub-rule (2).
iv. (3) if the licensing officer is satisfied that a particular insecticide is harmful to human beings animals or environment, he may after recording reasons and referring the Insecticide to the Insecticide analyst, prohibit temporarily its sale for a period of thirty days or till he obtains the report of the analyst, whichever is earlier.
(4A) (4)
i. Every person shall along with his application for grant or renewal of a licence to undertake operation or sell, stock or exhibit for sale or distribute Insecticides, file a certificate from the principal whom he represents or desires to represent the Form VI-D.
ii. The certificate to be issued by the principal shall be addressed to the licensing officer of the concerned area and shall contain full particulars of the principal including their registration and manufacturing licence numbers, full name and address of the person proposed to be authorised and also the type of formulations to be used in commercial pest control operations, sold, stocked or exhibited, for sale or distribution.
1. Substituted by GSR 474(E),dt. 24-7-19977.
2. Substituted by GSR 533(E), dt. 6-8-1993.
3. Inserted by Insecticides (Iind Amendment) Rules, 1999,dt. 20-5-1999.
4. Substitued by Insecticides (Iind Ammendment) Rules, 1999,dt. 20-5-1999.
iii. In order to verify the genuineness or otherwise of the certificate, the principal shall send to the licensing officer of the State where he intends to sell his products an adequate number of copies of the specimen signature or the specimen signatures of the persons authorised in writing to issued the principal's certificate.
iv. In case of suspension, revocation or cancellation of the certificate, the principal shall forthwith intimate the licensing officer having jurisdiction.
5 (1) A licensing officer may, after giving a reasonable opportunity of being heard to the applicant refuse to grant any licence.
6 (2) A fee of rupees one hundred shall be payable for a duplicate copy of a licence issued under this rule if the original is defaced, damaged or lost.
(10A.) (3) Segregation and Disposal of Date-expired Pesticides
a. Immediately after the date of expiry all such stocks after being segregated and stamped not for sale or not for use or not for manufacture as the case may be shall be kept by the licensee in a separate place specially demarcated for the purpose with a declaration date expired insecticide, to be exhibited on the conspicuous part of the place.
b. (4) All such stocks then shall be disposed of in an environment friendly manner as may be specified from time to time by the Central Government in consultation with the Central Insecticides Board and shall not be used for remanufacture.
10B. Special Provision with Regard to Sulphur
With regard to insecticides sulphur and its formulations all licensees shall--
a. Observe all precautions to prevent its theft;
b. Report any such theft to the nearest police authorities promptly; and
c. Maintain a separate register showing names and addresses of all the persons to whom it has been sold or distributed and the quantities to be sold or distributed.
10C. Prohibition against Sale or Storage of Insecticides in Certain Places
No person shall manufacture store or expose for sale or permit the sale or storage of any insecticide in the same building where any articles consumable by human beings or animals are manufactured, stored or exposed for sale.
Explanation: Nothing contained in this rule will apply to the retail sales of household insecticides from the building wherefrom other articles consumable by human beings or animals are usually sold provided such household insecticides have been registered as such and are packed and labeled in accordance with these rules.
11. Duration of Licences
a. (1) Any licence issued or renewed under this chapter shall, unless sooner suspended or cancelled, be in force for a period of two cancelled, be enforce for a period of two calendar year:
1. Substituted by GSR 533(E),dt. 6-8-1993.
2. Substituted by insecticides (Amendment) rules,1999, dt. 20-05-1999.
3. Inserted by GSR 533(E), dt. 6-8-1993.
4. Substituted by Insecticides (Iind amendment Rules, 1999, dt. 20-5-1999.
PROVIDED that the licence to manufacture insecticides, if any issued on the basis of provisional registration granted under sub-section(3-B of section 9 shall expire on the date of expiry of the provisional registration;
PROVIDED FURTHER that the licence granted by endorsement on the main licence under clause (iii) of sub-rule (8) of rule 9 or under clause (iii) of sub-rule (4) of rule 10 or under sub-rule (3) of rule 10-A shall expire or be renewable along with the main licence.
b. An application for the renewal of a licence shall be made before its expiry and if such an application is made after the date of expiry but within three months from such date, a late fee of-
i. (1) rupees five hundred for the first month or part thereof, rupees one thousand for the second month or part thereof and rupees one thousand and five hundred for the third month or part thereof, in case of licence to manufacture insecticides or to carry pest control operations;
ii. rupees one hundred for the first month or part thereof, rupees two hundred for the second month or part thereof and rupees three hundred for the third month or part thereof in case of any other licence shall be paid alongwith the application for renewal:
PROVIDED that where the amin pest control operation unit or the place of sale is located in the rural areas, the late fee shall be one-fifth of the said late fee:
PROVIDED FURTHER that in case of death or disability of the licensee the licensing officer may after recording reasons in writing, exempt the applicant from payment of the late fee.
Explanation:
(1) Where an application for renewal is made before the expiry of the licence and the order regarding refusal or renewal is passed after the expiry of the licence, the applicant shall be deemed to have been carrying on his business in accordance, with the expired licence (from the date of expiry till the date of communication of the final order on that application.
(2) Where an application for renewal is made after the expiry of the licence with late fee, the applicant shall be deemed to have been carrying on his business in accordance, with the expired licence (from the date of expiry) till the date of communication of the final order on that application.
(c) (2) The licence shall continue to be in force until it is renewed or revoked. Where an appeal is preferred under section 15, the licence shall continue to be revoked until disposal of appeal or as ordered by the appellate authority pending disposal of the appeal.
a. the licensing officer may, after giving an opportunity of being heard, refuse to renew the licence (3) for reasons to be recorded in writing
12. Conditions of Licence
a. (4) Subject to conditions laid down in sub-rule 930 of rule 9, under sub rule (4) of rule 10, a licence shall not be granted to any person under this chapter unless the licensing
1. Sub-clauses (I) and (ii) substituted by Insecticides (Amendment) rules, 1999, dt. 20-5-1999.
2. Clause (c) substituted by Insecticides (amendment) rules, 1999, dt. 20-5-1999.
3. Substituted for words "and on such refusal the fee paid for such renewal and the penalty, if any paid shall be refunded to the applicant" by GSR 533(E), dt. 6-8-1993.
4. Substituted by GSR 474 (E) dt. 24-7-1976.
Officer is satisfied and the premises in respect of which licence is to be granted are adequate and equipped with proper storage accommodation for avoiding any hazards for preserving the properties of insecticides in respect of which the licence is granted.
b. In granting a licence, the licensing officer shall have regard, among other things to-
i. the number of licences granted in the locality during any year; and
ii. the occupation, trade or business carried on by the applicant
13. Varying or Amending a Licence
1. The licensing officer may either on an application made by the licensee or if he is satisfied that the conditions under which a licence has been granted under this chapter have been changed that it is necessary so to do vary or amend a licence 1 [after satisfying himself that the Registration Committee has amended the registration certificate and ] after giving an opportunity of being heard to the person holding the licence.
14. Transfer of Licence
1. the holder of a licence may at any time before the expiry of the licence, apply for permission to transfer the licence to any other person.
2. the application under sub-rule (1) shall be accompanied by a fee of rupees one hundred.
3. the licensing officer may, after such inquiry as he thinks fit accord permission to transfer the licence and on such permission being given an endorsement to that effect shall be made in the licence.
4. If the permission to transfer a licence is refused, the fee paid therefor shall be refunded to the applicant.
15. Issuing Cash Memo and Maintenance of Records
1. All sales of insecticides shall be made by a bill or cash memo in the form prescribed under any law.
2. All sales of insecticides made to licensed manufacturer (formulator or packer), stockist, distributor, dealer, retailer or to a bulk consumer shall be entered insecticide wise, in a register in Form XIII and a state wise monthly return of all sales to actual consumers shall be sent to the licensing officer, in Form XIV within 15 days from the close of the month.
3. Every importer or manufacturer of insecticide shall maintain a stock register in Form XV or technical
grade insecticides and in Form XVI to formulate insecticides.
4. Without prejudice to the foregoing, the Central Government or the State Government or any other person authorised by it may, by notice in writing require any importer or manufacturer or any other person dealing in insecticides to furnish within the time specified in the notice, such information with respect of any insecticides or any batch thereof, including the particulars or all persons to whom it has been sold or distributed, as it may consider necessary.
1. inserted by GSR 533(E), dt 6-8-1993.
2. Substituted by insecticides (Amendment) rules 1999, dt. 20-5-1999
3. Substituted by GSR 533(E), dt. 6-8-1993.
PACKING AND LABELLING
16. Prohibition of Sale or Distribution unless Packed and Labelled
No person shall stock or exhibit for sale or distribute 1 [or cause to be transported] any insecticide unless it is packed and labelled in accordance with the provisions of these rules.
17. Packaging of Insecticides
1. Every package containing the insecticides shall be of a type approved by the Registration Committee.
2. Before putting any insecticide into the primary package every batch thereof shall be analysed as per the relevant specifications of the manufacture thereof, in accordance with the approved methods of analysis and the result of such an analysis shall be recorded in the register maintained for the purpose. If any insecticide is put in the package it shall be presumed that it is fit and ready for sale, distribution or use for which it is intended notwithstanding the fact that ny further steps are still required to be taken to make it marketable.
18. Leaflet to be Contained in Package
(1)](2) The packing of every insecticides shall include a leaflet containing the following details, namely:
a. The plant disease, insects and noxious animals or weeds for which the insecticide is to be applied, the adequate direction concerning the manner in which the insecticide is to be used at the time of application;
b. Particulars regarding chemicals harmful to human beings, animals and wild life, warning and cautionary statements including the symptoms of poisoning suitable and adequate safety measures and emergency first-aid treatment where necessary;
c. Cautions regarding storage and application of insecticides with suitable warnings relating to inflammable, explosive or other substance harmful to the skin;
d. Instructions concerning the decontamination or safe disposal of used containers;
e. A statement showing the antidote for the poison shall be included in the leaflet and the label;
f. If the insecticide is irritating to the skin, nose, throat or eyes, a statement shall be included to that effect.
g. (1) common name of the insecticide as adopted by the International standards orginisation and where such a name has not yet been adopted such other name as may be approved by the Registration Committee.
(2) (1) Two copies of the leaflets duly approved by the Registration Committee and signed by the Secretary Registration Committee, shall be returned to the manufacturer and one copy to the state licensing officer.
1. Inserted by GSR 533(E), dt. 6.8.1993
2. Renumbered by GSR 533(E), dt. 6.8.1993.
19. Manner of Labelling
1. The following particulars shall be either printed or written in indelible ink on the label of the innermost container of any insecticide and on the outer most covering in which the container is packed:
i. Name of the manufacturer (if the manufacturer is not the person in whose name the insecticide is registered under the Act, the relationship between the person in whose name the insecticide has been registered and the person who manufactures, packs or distributes or sells shall be stated).
ii. Name of insecticide (brand name or trade mark under which the insecticide is sold).
iii. Registration number of the insecticide.
iv. Kind and name of active and other ingredients and percentage of each. (Common name accepted by the International Standards Organisation or the Indian Standards Institutions of each of the ingredients shall be given and if no common name exists, the correct chemical name which conforms most closely with the generally accepted rule of chemical nomenclature shall be given).
v. Net content of volume. (The net contents shall be exclusive of wrapper or other material. The correct statement of the net contents in terms of weight, measure, number of units of activity as the case may be shall be given. The weight and volume shall be expressed in the metric system).
vi. Batch number.
vii. Expiry date i.e. up to the date the insecticide shall retain its efficiency and safety.
viii. Antidote statement
2. The label shall be so affixed to the containers that it cannot be ordinarily removed.
3. The label shall contain in a prominent place and occupying not less than one-sixteenth of the total area of the face of the label, a square, set at an angle of 45° (diamond shape). The dimension of the said square shall depend on the size of the package on which the label is to be affixed. The said square shall be divided into two equal triangles, the upper portion shall contain the symbol and signal word specified in sub-rule (40 and the lower portion shall contain the colour specified in sub-rule (5).
4. The upper portion of the square, referred to in sub-rule (30 shall contain the following symbols and warning statements-
i. (i ) insecticides belonging to Category I (Extremely toxic ) shall contain the symbol of a skull and cross-bones and the word "POISON" printed in red; the following warning statements shall also appear on the label at appropriate place, outside the triangle-
a. KEEP OUT OF THE REACH OF CHILDREN
b. IF SWALLOWED, OR IF, SYMPTOMS OF POISONING OCCUR CALL PHYSICIAN IMMEDIATELY';
ii. insecticides in Category II (highly toxic) will contain the word POISON printed in red and the statement KEEP OUT OF THE REACH OF CHILDREN shall also appear on the label at appropriate place, outside the triangle,
iii. insecticides in Category III( moderately toxic ) shall bear the word " DANGER" and the statement "KEEP OUT OF THE REACH OF CHILDREN";
iv. shall also appear on the label at suitable place outside the triangle;
v. insecticides in category IV (slightly toxic) shall bear the word "CAUTION".
5. The lower portion of the square referred to in sub-rule (4) shall contain the colour Colour specified in column (4) of the table below, depending on the classification of the insecticides specified in the corresponding entry in column (1) of the said table.
6.
7. In addition to the precautions to be undertaken under sub-rules (3), (4) and (5) the label to be affixed in the packages containing insecticides which are highly inflammable
shall indicate that it is inflammable or that the insecticides should be kept away from the heat or open flame and the like.
8. The label and the leaflets to be affixed or attached to the package containing insecticides shall be printed in Hindi, English and in one or two regional languages in use in the areas where the said packages are likely to be stocked, sold or distributed.
9. Labelling of insecticides must not bear any unwarranted claims for the safety of the producer or its ingredients. This includes statements such as "SAFE" NON-POISONOUS" " NON-INJURIOUS" or "HARMLESS" with or without such qualified phrase as " when used as directed"
20. Prohibition against Altering Inscriptions, etc. on Containers, Labels or Wrappers of Insecticides
No person shall alter, obliterate or deface any inscription or mark made or recorded by the manufacturer on the container, label or wrapper of any insecticide:
PROVIDED that nothing in this rule shall apply to any alteration of any inscription or mark, made on the container, label or wrapper of any insecticide at the instance, direction or permission of the Registration Committee.
INSECTICIDE ANALYSIS AND INSECTICIDES INSPECTORS
21. Qualification of Insecticide Analyst
A person shall be eligible for appointment as an insecticide analyst under the Act only if he possesses the following qualifications, namely;
a. a graduate in Agriculture or a graduate in science with chemistry as special subject; and
b. adequate training in analysing insecticides in a recognized laboratory.
22. Powers of Insecticides Analyst
1. The Insecticides analyst shall have the power to call for such information or particulars or do anything as may be necessary for the proper examination of the samples sent to him either from the Insecticide Inspector or the person whom the sample was obtained.
23. Duties of Insecticides Analyst
1. the Insecticides analyst shall analyst or cause to be analysed or test or cause to be tested such samples of insecticides as may be sent to him by the insecticide inspector under the provisions of the act and shall furnish report or results of such tests or analysis.
2. An insecticides analyst shall, from time to time, forward to the state government reports giving the result of analytical work and investigation with a view to their publication at the discretion of the Government.
24. Procedure on Receipt of Sample
1. On receipt of a package from an Insecticide Inspector containing a sample for test or analysis, the Insecticides analyst shall compare the seals on the packet with the specimen impression received separately and shall note the condition of the seals on the packet.
2. in making the test or analysis of insecticides, it shall be sufficient of the insecticides analyst follows that specifications and the months of examination of samples as approved by the registration committee.
3. After the test or analysis has been carried out under sub-rule (2), the insecticides analyst shall forthwith supply to the insecticides inspector a report in triplicate inform IX of the result of test of analysis.
25. Fees Payable for Testing or Analysis
1. The fees payable for testing or analysing insecticides under sub-section (5) of Sec. 24 of the Act shall be as specified in the Second Schedule.
2. The fee payable for testing or analysing samples received from the Insecticides Inspector shall also be as specified in the Second Schedule: Provided that the Central Government may, after taking into consideration the genuine difficulties, of any particular State Government, exempt from the payment of the fee for such period as it may consider reasonable.
26. Qualifications of Insecticides Inspector
A person shall be eligible for appointment as an Insecticides Inspector under the act only if he possesses the following qualifications, namely;
a. graduate in Agriculture, or Graduate in science with Chemistry as one of the subjects;
b. adequate field experience.
27. Duties of Insecticides Inspector
The Insecticides Inspector shall have the following duties, namely:
1. to inspect not less than three times in a year all establishments selling insecticides within the area of his jurisdiction;
2. to satisfy himself that the conditions of licence are being complied with;
3. to procure and send for test and analysis, samples of insecticides which he has reason to suspect are being sold, stocked or accepted for sale in contravention of the provisions of the act or rules made thereunder;
4. to investigate any complaint in writing which may be made to him;
5. to institute prosecution in respect of breaches of the Act and the Rules made Thereunder;
6. to maintain a record of all inspections made and action taken by him in the performance of his duties including the taking of samples and seizure of stocks and to submit copies of such record to the licensing officer;
7. to make such inquiries and inspections as may be necessary to detect the sale and use of insecticides in contravention of the Act.
28. Duties of Inspectors Specially Authorised to Inspect Manufacture of Insecticides
It shall be the duty of any inspector authorised to inspect the manufacture of Insecticides-
1. to inspect not less than twice a year all premises licensed for the manufacture of insecticides within the area of
his jurisdiction and to satisfy himself that the conditions of the licence and the provisions of act or the rules
made thereunder which are being observed and the conditions and provisions if any which are not being observed;
2. to send forthwith to the licensing officer after each inspection, a detailed report indicating the conditions
of the licence and the provisions of the act or rules
made thereunder which are being observed and the conditions and provisions, if any, which are not being observed;
3. to draw samples of insecticides manufactured on the premises and send them for test or analysis in accordance with these rules;
4. to report to the government all occurrences of poisoning.
29. Prohibition of Disclosure of Information
Except for the purpose of official business or when required by a court of law an insecticides inspector shall not disclose to any person any information acquired by him in the performance of his official duties.
30. Form of Order not to Dispose of Stock
An order by the insecticides inspector requiring a person not to dispose of any stock in his possession shall be in form x.
31. Prohibition of Sale
No person in possession of an insecticide in respect of which an insecticides inspector has made an order under rule 30 shall, in contravention of that order, sell or otherwise dispose of any stock of such insecticide.
32. Form of Receipt for Seized Insecticides
A receipt by an insecticides inspector for the stock of any insecticide seized shall be in form XI.
33. Form of Intimation for Purposes of Taking Samples
Where an inspector takes a sample of an insecticide for the purpose of test or analysis he shall intimate such purpose in writing in Form XII to the person from whom he takes it.
34. Dispatch of Samples for Test or Analysis
1. Sample for test or analysis under the Act shall be sent by registered post or by hand in sa sealed packet together with a memorandum in Form XII in an outer cover addressed to the Insecticide analyst.
2. The packet as well as the outer cover shall be marked with a distinct mark.
3. A copy of the memorandum in form XIII together with a specimen impression of the seals of the Inspector and of the seals, if any, of the person from whom he takes such samples, shall be sent separately by registered post or by hand to the insecticides analyst.
TRANSPORT AND STORAGE OF INSECTICIDES IN TRANSIT BY RAIL, ROAD OR WATER
35. Manner of Packing, Storage while Transporting
1. Packages containing insecticides, offered for transport by rail, shall be packed in accordance with the conditions specified in the Red Tariff, issued by the Ministry of Railways.
2. No insecticide shall be transported or stored in such a way as to come into direct contact with foodstuffs or animal feeds.
3. No foodstuffs or animal feeds which got mixed up with insecticides as a result of any damage to the packages containing insecticides during transport or storage shall be released to the consignees unless it has been examined for possible contamination by competent authorities, as may be notified by the State Government.
4. If any insecticide is found to have leaked out in transport or storage it shall be the responsibility of the transport agency or the storage owner to take such measure urgently to prevent poisoning and pollution of soil or water, if any.
36. Conditions to be Specified for Storage of Insecticides
1. The package containing insecticides shall be stored in separate rooms or premises away from the rooms or premises used for storing other articles or shall be kept in separate almirahs under lock and key depending upon the quantity and nature of the insecticides.
2. The rooms or premises means for storing insecticides shall be well built, dry, well-lit and ventilated and of sufficient dimension.
PROVISIONS REGARDING PROTECTIVE CLOTHING, EQUIPMENT, AND OTHER FACILITIES FOR WORKERS DURING MANUFACTURE
37. Medical Examination
1. All persons who are engaged in the work of handling, dealing or otherwise coming in contact with the insecticides during manufacture/formulation of insecticides or being engaged during spraying operation shall be examined medically before their employment and at lest quarterly in the case of those engaged in manufacturing/formulation units and yearly in other cases including operators while in service by a qualified doctor who is aware of risks to which such persons are exposed. Particulars of all such persons, including the particulars of their medical examination, shall be entered in a register in Form XVII. Where the insecticide in question is an organophos phorus compound or a carbamate compound, the blood choline storages level shall be measured at least once a month of all persons working in the manufacturing units. The blood residue estimation shall be done once in a year in the case of persons working with organo cvhlorine group of insecticides in a manufacturing/formulation unit. In the case of spraying people working with the pest control operators, the estimation of cholinesterase level (if working with organophosphorus or carbamate compounds) and blood residue (if working with organochlorine group) shall be conducted as and when advised by the doctor as part of the general medical test.
2. Any person showing symptoms of poisoning shall be immediately examined and given proper treatment.
• Substituted for "manner of packing storage while in transit by rail" by insecticides (Iind amendment) Rules, 1999, dt.20-05-1999.
• Substituted by GSR 533 (E), dt. 6-8-1993.
38. First Aid Measures
In all cases of poisoning first aid treatment shall always be given before the physician is called. The Indian Standard Guide for handling cases of insecticide poisoning-part I first-aid measures [IS: 4015 (part I)-1967] and Part II symptoms, diagnosis and treatment [IS: 4015 (part II)-1967] shall be consulted for such first-aid treatment in addition to any other books on the subject. The workers also should be educated regarding the effects of poisoning and the first-aid treatment to be given.
39. Protective Clothing
1. Persons handling insecticides during its manufacture, formulation, transport, distruction or application, be adequately protected with appropriate clothing.
2. The protective clothing shall be used wherever necessary, in conjunction with respiratory devices as laid down in rule 40.
3. The protective clothing shall be made of materials which prevent or resist the penetration of any form of insecticides formulations. The materials shall also be washable so that the toxic elements may be removed after each use.
4. A complete suit of protective clothing shall consist of the following dresses, namely:
a. Protective outer garment/overalls/hood/hat;
b. Rubber gloves or such other protective gloves extending half-way to the fore-arm, made of materials impermeable to liquids;
c. Dust-proof goggles;
d. Boots.
40. Respiratory Devices
For preventing inhalation of toxic dusts, vapours of gases, the workers shall use any of the following types of respirators or gas-masks suitable for the purpose, namely:
a. Chemical cartridge respirator;
b. Supplied-air respirator;
c. Demand flow, type respirator;
d. Full-face or half-face gas-masks with canister.
In no case shall be concentrates of insecticides in the air where the insecticides are mixed exceed the maximum permissible values.
41. Manufactures, etc. to keep Sufficient Quantities of Antidotes and First-aid Medicines
The Manufacturers and distributors of insecticides and persons who undertake to spray insecticide on a commercial basis ( hereafter in these rules referred to as operators) shall keep sufficient stocks of such first-aid tools, equipment's, antidotes, injections and medicines as may be required to \treat poisoning cases arising from inhalation, skin, contamination, eyes contamination and swallowing.
42. Training of Workers
The manufactures and distributors of insecticides and operators shall arrange for suitable training in observing safety precautions and handling safety equipment provided to them.
43. Aerial Spraying Operations
The aerial application of insecticides shall be subject to the following provisions, namely;
a. Marking of the area shall be the responsibility of the operators;
b. The operators shall use only approved insecticides and their formulations at approved concentration and height;
c. Washing decontamination and first-aid facilities shall be provided by the operators;
d. All aerial operations shall be notified to the public not less than twenty-four hours in advance through competent authorities;
e. Animals and persons not connected with the operations shall be prevented from entering such areas for a specific period; and
f. The pilots shall undergo specialization training including clinical effects of the insecticides.
44. Disposal of used Packages, Surplus Material and Washings of Insecticides
1. It shall be the duty of manufacturers, formulators of insecticides and operators to dispose packages or surplus materials and washing in a safe manner so as to prevent environmental or water pollution.
2. The used packages shall not be left outside to prevent their re-use.
3. The packages shall be broken and buried away from habition.
MISCELLANEOUS
45. Places at which the Insecticides may be Imported
No insecticides shall be imported into India except through one of the following places, namely;
1. Ferozepore Cantonment and Amritsar railway stations in respect of insecticides imported by rail across the frontier with the West Pakistan.
2. Ranaghat, Bongaon and Mahiassan railway stations in respect of insecticides imported by rail across the frontier with the East Pakistan.
3. Madras, Calcutta, Bombay, Cochin and Kandla-in respect of insecticides imported by sea into India.
4. Madras, Calcutta, Bombay, Delhi and Ahmedabad-in respect of insecticides imported by air into India.
46. Travelling and Other Allowances Payable to the Members of the Board, etc.
The members of the Board, Registration Committee and any other Committee appointed by the board shall be entitled to such travelling and other allowances for attending meetings of the Board, Registration Committee or other committee as the case may be as are for the time being admissible to Grade I officers of the Central government.
THE DESTRUCTIVE INSECTS AND PESTS ACT, 1914
An act to prevent the introduction into and the transport from one state to another in India of any insects, fungus or other pest which is or may be destructive to crops. Whereas it is expedient to make provision for preventing the introduction into India of any insect, fungus or other pests, which is or may be destructive to crops; it is hereby enacted as follows:
1. Short Title: This act may be called the Destructive Insects and Pests Act, 1914.
2. It extends to the whole of India.
3. Definitions: In this Act, unless there is anything repugnant in the subject or context,-
a. "Crops" includes all agricultural or horticultural crops, and all trees, bushes or plants;
b. "Import" means the bringing or taking by sea, land or air, across any customs frontier defined by the Central Government;
c. "Infection" means infection by any insect, fungus or other pest injurious to a crops.
1. Power of the Central Government to regulate or prohibit the import of articles likely to infect. (i) The Central Government may, by notification in the Gazettee of India, prohibit or regulate, subject to such restrictions and conditions as the Central Government may impose, the import into India, or any part thereof, or any specified place therein, of any articles or class of articles likely to cause infection to any crop or of insects generally or by class of insects.
2. A notification under this section may specify any article or class of articles or any insect or class of insects either generally or in any particular manner, whether with reference to the country of origin, or the route by which imported or otherwise.
1. Operation/of Notification under Section 3. A notification under section 3 shall operate as if it had been issued under section 19 of the Sea Customs Act, 1978 (VII of 1878), and the officers of Customs at every port shall have the same powers in respect of any article with regard to the importation of which such a notification has been issued as they have for the time being in respect of any article the importation of which is regulated, restricted or prohibited by the law relating to sea Customs and the law for the time being in force relating to Sea Customs or any such article shall apply accordingly.
4A. Power of Central Government to regulate or prohibit transport from State to State of Insects or articles likely to infect.-The Central Government may, by notification in the Official Gazette, prohibit or regulate, subject to such conditions as the Central Government may impose, the export from a State or the transport from the State to another State in India of any article or class of articles likely to cause infection to any crop or of insects generally or any class of insects.
4B. Refusal to carry article of which transport is prohibited:
When a notification has been issued under section 4A, then, notwithstanding any other law for the time being in force, the person responsible for the booking of goods or parcels at any railway station or inland steam vessel station:
a. Where the notification prohibits export or transport, shall refuse to receive for carriage at, or to forward or knowingly allow to be carried on the railway or inland steam vessel from that station anything, of which import or transport is prohibited, consigned to any place in India outside the state in which such station is situated; and
b. Where the notification imposes conditions upon export or transport, shall so refuse, unless the consignor produces, or the thing consigned is accompanied by a document or documents of the prescribed nature showing that these conditions are satisfied.
4C. Deleted. 4D.
Power of Central Government to make rules:
The Central Government may, by notification in the Official Gazettee, make rules prescribing the nature of the documents which shall accompany any article or insect the export or transport whereof is subject to conditions imposed under section 4A, or which shall be held by the consignor or consignee thereof, the authorities which may issue such documents and the manner in which the documents shall be employed.
Power of Local Government to make rules.
1. The State Government may make rules for the detention, inspection, disinfection or destruction of any insect or class of insects or any article or class of articles in respect of which a notification has been issued under section 3 or under section 4 A or of any article which may have been in contact or proximity thereto, and for regulating the powers and duties of the officers whom it may appoint in this behalf.
2. In making any rule under this section the State Government may direct that a breach thereof shall be punishable with fine, which may extend to one thousand rupees.
5A. Penalties:-Any person who knowingly exports any article or insect from a State or transports any article or insect from one State to another in India in contravention o f a notification issued under section 4A, or attempts so to export or transport any article or insect, and any person responsible for the booking of goods or parcels at a railway or inland steam vessel station who knowingly contravenes the provisions of section 4B shall be punishable with fine which may extend to two hundred and fifty rupees and upon any subsequent conviction, with fine which any extend to two thousand rupees.
Protection to persons acting under Act:-No suit, protection or other legal proceedings shall lie against any person for anything in good faith done or intended to be done under this Act.
List of Amending Acts and Adoption orders.
1. The Destructive Insects and Pests (Amendment) Act, 1930(20 of 1930).
2. The Government of India (Adoption of Indian Laws) Order,1937.
3. The Destructive Insects and Pests (Amendment) Act, 1938 (6 of 1938).
4. The Destructive Insects and Pests (Amendment) Act,1939 (3 of 1939).
5. The Indian Independence (Adaptation of Central Acts and Ordinances) Order, 1948.
6. The adaptation of Laws, Order, 1950.
7. The part B States ( Laws) Order,1951, (3 of 1951).
8. The Jammu and Kashmir (Extension of Laws) Act, 1956 (62 of 1956).
Recent Amendments to PFS Order, 1989
(Plant Protection Division)
S.O. 467(E). In exercise of the powers conferred by sub-section(1) of section 3 of the Destructive Insects and Pests Act, 1914 (2 of 1914), the Central Government hereby makes the following Order further to amend the Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989, namely:-
(1) This Order may be called the Plants, Fruits and Seeds (Regulation of Import into India) (Amendment) Order, 2000
(2) It shall come into force on the date of its publication in the Official Gazette. In the Plants, Fruits and Seeds (Regulation of Import into India) Order, 1989,-
(i) In paragraph 3, in sub-paragraph (2), for the existing clause
(ii) the following clause shall be substituted, namely:- "(ii) Each application shall be accompanied by a registration fee of Rs. 150 (rupees one hundred fifty) for the import of seeds, fruits, plants and plant products for consumption or processing and Rs. 300 (rupees three hundred) for the import of seeds, plants and planting material for sowing or planting, in the form of a bank demand draft in favour of the Pay and Accounts Officer concerned;"
COOPERATIVE DIVISION
1. As a result of the recommendations of the Expert Committee appointed by the Government of India in 1970 to review the working of the National Cooperative Development Corporation, the National Cooperative Development Corporation act, 1962 (26 of 1962) under which the Corporation was set up, has been modified in 1973 and 1974 through two amendments passed by Parliament. These changes have been carried out in the principal Act.
2. The amendments of 1973 extending, among others, the jurisdiction of the NCDC to the State of Jammu & Kashmir came into force w.e.f. 21st August, 1973, while the changes except those relating to the constitution of the General Council and the Board of Management, contemplated in second amendments, were brought into force by the Government of India, with effect from 1st April, 1974, vide notification No.L.12011/3/74-MWS, dated the 26th March, 1974, a copy of which is at Annexure-III. The provisions regarding constitution of the General Council and Board of Management have been enforced w.e.f. 7th April, 1975 vide Notification No. F.L.12011/3/74-MWS dated 4th April, 1975.
3. The NCDC Act has been extended to Sikkim from 2nd October, 1975 vide Notification No. L-12012/19/73-CMP dated 22nd September, 1975.
Short Title Extent and Commencement Definitions: Construction of reference to any law not in force or any functionary not in existence in the State of Jammu and Kashmir.
Establishment of National Cooperative Development Corporation.
• An act to provide for the incorporation and regulation of a corporation for the purpose of planning and promoting programmes for the production, processing, marketing, storage, foodstuffs and certain other commodities on cooperative principles and for matters connected therewith.
Be it enacted by Parliament in the Thirteenth year of the Republic of India as follows:-
1. (1) This Act may be called the National Cooperative Development Corporation Act, 1962. 2. It extends to the whole of India. 3. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint and different dates may be appointed for different provisions of this Act.
2. In this Act, unless the context otherwise requires:-
a. "agricultural produce" includes the following classes of commodities, namely:-
i. 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.
(aa) "bank" means a nationalized bank and includes a scheduled bank;
(ab) "Board" means the Board of Management of the Corporation constituted under section 10;
(b) "Central Warehousing Corporation" means the Central Warehousing Corporation established under Section 17 of the Agricultural Produce (Development and Warehousing) Corporation Act, 1956.
(c) "Cooperative society" means a society registered or deemed to be registered under the Cooperative Societies Act, 1912 or under any other law with respect to cooperative societies for the time being in force in any State, which is engaged in any of the activities specified in sub-section (1 of section 9 and includes a cooperative land mortgage bank;
(d) "Corporation" means the National Cooperative Development Corporation established under sub-section (1) of Section 3.
(da) "foodstuffs", include
i. coconuts and arecanuts;
ii. eggs and egg products;
iii. fish, whether fresh, frozen, dried or preserved;
iv. fruits, whether fresh, dried or dehydrated;
v. honey;
vi. meat, whether fresh, frozen, dried or preserved;
vii. milk and milk products;
viii. vegetables;
(db) "General Council" means the General Council of the Corporation constituted under sub-section 4 of Section 3;
(dc) "Managing Director" means the managing director of the Corporation;
(dd) "Nationalised Bank" means a corresponding new banks as defined in the Banking Companies (Acquisition, and Transfer of Undertakings) Act, 1970;
(e) "Notified Commodity" means any commodity (other than agricultural produce and foodstuffs), which the Central Government may, by notification in the Office 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) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of India Act, 1934;
(ga) "Scheduled Bank" means a bank for the time being included in the second schedule to the Reserve Bank of India Act, 1934;
(h) "State Bank" means the State Bank of India constituted under the State Bank of India Act, 1955;
(i) Year means the financial year.
2A. 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.
3.(1) The Central Government shall, by notification in the official Gazette, establish with effect from such date as may be specified in the notification, a Corporation by the name of the National Cooperative 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.
(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;
(ii) eight members, ex-officio to be nominated by the Central Government from such of its Ministries dealing with economic matters as it may think fit;
(iii) Deputy Governor of the Reserve Bank in-charge of rural credit, ex-officio;
(iv) Managing Director of the State Bank, ex-officio;
(v) Managing Director of the Food Corporation of India, constituted under Food Corporation act, 1964, ex-officio;
(vi) Managing Director of the Central Warehousing Corporation, constituted under the Warehousing Corporation Act, 1962, ex-officio;
(vii) Chairman of the Industrial Finance Corporation of India, constituted under the Industrial Finance Corporation Act, 1948, ex-officio;
(viii) A member representing banks, to be nominated by the Central Government;
(ix) Chairman of the National Cooperative Union of India, ex-officio;
(x) Chairman of the National Agricultural Cooperative Marketing Federation, ex-officio;
(xi) Chairman of the National Federation of Cooperative Sugar Factories, ex-officio;
(xii) Chairman of the All India Federation of Cooperative Spinning Mills, ex-officio;
(xiii) Chairman of the All India State Cooperative Banks Federation, ex-officio;
(xiv) eleven members other than those nominated under clause (xv), representing the States and the Union Territories, to be nominated by the Central Government, provided that not more than one person shall be so nominated from each State or Union Territory;
(xv) eleven members to be nominated by the Central Government from among the Chairman of the State level cooperative federations from the States and Union territories, provided that not more than one person shall be so nominated from each State or Union Territory;
(xvi) four members representing persons having special knowledge of, or practical experience in agricultural cooperative development, to be nominated by the Central Government;
(xvii) three members representing national level organizations engaged or interested in the promotion and development of cooperative programmes to be nominated by the Central Government; and
(xviii) the managing director.
(5) The powers and functions of the Corporation shall be exercised or discharged, as the case may be, by the General Council, and references elsewhere in this Act to the Corporation shall, unless the context otherwise requires, be construed as references to the General Council.
(6) Notwithstanding the expiry of the prescribed term of his office, every member of the General Council shall continue to hold office as such, until his successor in such office has assumed charge of such office.
(7) Members of the General Council, other than the managing director, shall be entitled to receive such sittings fees as may be specified by regulations made by the corporation under this Act, for attending any meeting of the General Council, Board or any committees of the Corporation.
Provided that no official member shall be entitled to receive any sitting fee.
4. A person shall be disqualified for being chosen as and for being a member of the Corporation:-
1.
1. if he is, or at any time has been adjudicated insolvent or has suspended payment of his debt or has compounded with his creditors, or
2. if he is or has been convicted of any offence involving moral turpitude and sentenced in respect thereof to imprisonment for not less that six months, unless a period of five years has elapsed from the date of expiry of the sentence; or
3. except in the case of managing director, if he is a salaried official of the Corporation.
5. (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.
6. The Central Government may, at any time remove from office any member other than an ex-officio member of the Corporation after giving him a reasonable opportunity of showing cause against the proposed removal.
7. (1) The Corporation, 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) The President or in his absence the Vice-President or in the absence of both the President and the Vice-President, any member chosen by the members/represent 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 the President or, in his absence, the Vice-President or in the absence of both the President and the Vice-President, the person presiding shall have and exercise a second or casting vote.
8. (1) The Central Government shall, in consultation with the Corporation, appoint a person to be the 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 condition of service and the scales of pay of the officers and other employees of the Corporation shall,
(a) as respects the 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.
(4) The Managing Director shall exercise such powers and perform such duties as the Board may entrust or delegate to him.
9. (1) Subject to the provisions of this Act, the functions of the Corporation shall be to plan and promote programmes, through cooperative societies, for:-
(a) the production, processing, marketing, storage, export and import of agricultural produce, foodstuffs, poultry feed and notified commodities;
(b) the collection, processing, marketing, storage and export of minor forest produce.
(2) In particular and without prejudice to the generality of the foregoing provision, the Corporation may:
(a) advance loans or grant subsidies to State Governments for financing cooperative societies and for employment of staff for implementing programmes of cooperative development;
(b) provide funds to State Governments for financing cooperative societies for the purchase of agricultural produce, foodstuffs and notified commodities on behalf of the Central Government;
(c) plan and promote programmes through cooperative societies for the supply of seeds, manures, fertilizers, agricultural implements and other articles for the development of agricultural produce.
(d) provide loans and grants directly to the national level cooperative societies and other cooperative societies having objects extended beyond one State.
(e) provide loans to cooperative societies on the guarantee of State Governments or in the case of cooperative societies in the Union Territories, on the guarantee of Central Government;
(f) participate in the share capital of the national level cooperative societies and other cooperative societies having objects extending beyond one State.
(3) The Corporation shall so exercise its functions under this section as not to interfere with the activities of the Khadi and Village Industries Commission established under the Khadi and Village Industries Commission Act, 1956.
10. (1) There shall be a Board of Management of the Corporation which shall consist of the 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 Government from among the members referred to in Clause (ii) of Sub-Section (4) of Section 3;
(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 Government from among the members referred to in clauses (ix), (x), (xi), (xii) and (xiii) of Sub-section (4) of Section 3;
(v) two members of the General Council, to be nominated by the Central Government from among the members referred to in clause (xiv) of Sub-Section (4) of Section 3;
(vi) two members of the General Council to be nominated by the Central Government from among the members referred to in clause (xv) of Sub-Section (4) of Section 3;
(vii) one member of the General Council to be nominated by the Central Government from among the members referred to in clauses (xvi) of Sub-Section (4) of Section 3;
(viii) the managing director.
(2) The Vice-Chairman of the Board shall be nominated by the Central Government.
(3) Subject to the general control, direction and superintendence of the General Council, the Board shall be competent to deal with any matter within the competence of the Corporation.
(4) The Board shall meet at such times and at such places and shall 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.
(5) The confirmed minutes of every meeting of the Board shall be laid before the General Council at its next following meeting.
11. The Corporation may constitute such other committee for general or special purposes as it deems necessary for the efficient performance of its functions under this Act.
12. 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.
(b) by way of loan, such sum of money on such terms and conditions as the Central Government may determined; and
(c) such additional grants, if any, for the purposes of this Act.
12A. (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 by sale of bonds or debentures, or both, carrying interest at such rates as may be specified therein;
(b) any bank or other financial institutions;
(c ) any other authority, organization 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) of sub-section (1) and the payment of interest thereon and other incidental charges.
13 (1) The Corporation shall maintain a fund called the National Cooperative 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 loan paid to the Corporation by the Central Government under Section 12;
(ba) all moneys borrowed under section 12A.
(c) such additional grants, if any, as the Central Government may make to the Corporation for the purposes of this Act; and
(d) such sums of moneys as may, from time to time, be realized out of repayment of loans made from the fund or from interest on loans or dividend or other realization on investments made from the Fund.
(2) The moneys in the Fund shall be applied for-
(a) advancing loans and granting subsidies to State Governments on such terms and conditions as the Corporation may deem fit for the purposes of enabling State Governments to subscribe to the share capital of cooperative societies or for otherwise financing cooperative societies;
(b) meeting the pay and allowances of the Managing Director, officers and other employees of the Corporation and other administrative expenses of the Corporation; and
(c) carrying out the purpose of this Act.
(3) All moneys in the fund shall be deposited in the Reserve Bank or the State Bank or a nationalized bank.
14. (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 the 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 programme during the previous year.
(3) A copy of the report received under Sub-Section (2) shall be laid before both Houses of Parliament.
15. 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.
16. (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.
17. (1) The Corporation shall maintain proper account 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 authorized 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 authorized by him in connection with the audit of the accounts of the Corporation shall have the same rights, privilege and authority in connection with such audit as the Comptroller and Auditor General has in connection with 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 any office of the Corporation.
(4) The accounts of the Corporation certified by the Comptroller and Auditor-General of India or any other person authorsied by him in this behalf together with an audit report thereon shall be forwarded annually to the Central Government and that Government shall cause the same to be laid before both Houses of Parliament.
18. No act or proceedings of the General Council the Board or any of the Committee 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.
19. The Corporation may, be general or special order in writing delegate to the 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.
20. 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.
21. (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 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 office 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 the Corporation shall vest in the Central Government.
22. (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-
(a) the term of office of members of the Corporation and the manner of filling vacancies among them;
(b) the methods of appointment, the conditions of service and the scale of pay of the Managing Director;
(c) the returns, statement and other particulars in regard to the discharge of its functions to be furnished by the Corporation to the Central Government;
(d) the form and the manner in which, and the time within which, the Corporation shall furnish to the Central Government returns, statements and other particulars with regard to the discharge of its functions;
(e) the form and the manner in which, and the time within which the Corporation shall furnish to the Central Government a report of its activities, policy and programme; and
(f) any other matter which has to be, or may be prescribed.
(3) Every rule made 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 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 there after 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.
23. (1) The Corporation may, with the previous sanction of the Central Government, by notification in the official Gazette, make regulations not in consistent with this Act and the rules made there under, 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 of 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 there thereat;
(b) The methods of appointment, the conditions of service and the scales of pay of the officers (other than the Managing Director and other employees of the Corporation.
(c) the duties and conduct of officers and other employees of the Corporation; and
(d) any other matter in respect of which the Corporation is empowered or required to make regulation under this Act.
(3) The Central Government may, by notification in the Official Gazette, rescind any regulation which it has sanctioned and there upon the regulation shall cease to have effect.
24. (1) With effect from the date on which the Corporation is established under Section 3, the Agricultural Produce (Development and Warehousing) Corporation Act, 1956 shall, in so far as it relates to the National Cooperative Development and Warehousing Board, stand repealed:-
(2) Notwithstanding such repeal:-
(a) all moneys and other securities belonging to the National Cooperative 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 the Act.
(b) all moneys and other securities belonging to the National Warehousing Development Fund which immediately before the said date, was maintained by the said Board under the repealed Act, shall stand transferred to and be maintained by the Central Warehousing Corporation;
(c) all shares in the capital of Central Warehousing Corporation held by the said Board shall stand transferred to the Central Government subject to the same liabilities as the payment of unpaid cells on such shares as the said Board was subject to;
(d) anything done or any action taken (including any loan advanced subsidy granted and appointment, delegation, rule of 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; and
(e) all rights, liabilities and obligations of the said Board, 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.
The Multi-State Cooperative Societies Act, 1984
An Act to consolidate and amend the law relating to cooperative societies with objects not confined to one State and serving the interests of members in more than one State.
Be it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows:
Preliminary
1. Short title, extent and commencement-
(1) This Act may be called the Multi-State Cooperative Societies Act, 1984.
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.
2. Application- This Act shall apply to:
(a) All cooperative societies, with objects not confined to one State, which were incorporated before the commencement of this Act, (i) under the Cooperative Societies Act, 1912, or (ii) under any other law relating to cooperative societies in force in any State or in pursuance of the Multi-unit Cooperative Societies Act, 1942, and the registration of which has not been cancelled before such commencement; and
(b) all multi-State cooperative societies.
3. Definitions- In this Act, unless the context otherwise requires:
(a) "board" means the board of directors or the governing body of a multi-State cooperative society by whatever name called, to which the direction and control of the management of the affairs of the society is entrusted;
(b) "bye-laws" means the bye-laws for the time being in force which have been duly registered under this Act and includes amendments thereto which have been duly registered under this Act;
(c) "Central Registrar" means the Central Registrar of Cooperative Societies appointed under sub-section (1) of section 4 and includes any officer empowered to exercise the powers of the Central Registrar under sub-section (2) of that section;
(d) "Chief Executive" means a Chief Executive of a multi-State cooperative society appointed under section 44;
(e) "cooperative bank" means a multi-State cooperative society which undertakes banking business;
(f) "cooperative principles" means the cooperative principles specified in the First Schedule;
(g) "cooperative society" means a society registered or deemed to be registered under any law relating to cooperative societies for the time being in force in any State;
(h) "cooperative year", in relation to any multi-State cooperative society or class of such societies, means the year ending on the 30th day of June and where the accounts of such society or class of such societies are, with the previous sanction of the Central Registrar, balanced on any other day, the year ending on such day;
(i) "Deposit Insurance Corporation" means the Deposit Insurance and Credit Guarantee Corporation established under section 3 of the Deposit Insurance Corporation Act, 1961;
(j) "member" means a person joining in the application for the registration of a multi-State cooperative Society and includes a person admitted to membership after such registration in accordance with the provisions of this Act, the rules and the bye-laws;
(k) "multi-State cooperative society" means a society registered or deemed to be registered under this Act and includes a national cooperative society;
(l) "multi-State cooperative society with limited liability" means a society having the liability of its members limited by its bye-laws to the amount, if any, unpaid on the shares respectively, held by them or to such amount as they may, respectively, there-by undertake to contribute to the assets of the society, in the event of its being wound up;
(m) "national cooperative society" means a multi-State cooperative society specified in the Second Schedule;
(n) "notification" means a notification published in the Official Gazette;
(o) "officer" means a president, vice-president, chairman, vice-chairman, managing director, secretary, manager, member of a board, treasurer, liquidator, an administrator appointed under section 48 and includes any other person empowered under this Act or the rules or the bye-laws to give directions in regard to the business of multi-state cooperative society;
(p) "Prescribed" means prescribed by rules;
(q) "Reserve Bank" means the Reserve Banks of India constituted under the Reserve Bank of India Act, 1934;
(r) "rules" means the rules made under this Act
Central Registrar and Registration of Societies
4. Central Registrar-
(1) The Central Government may appoint a person to be the Central Registrar of Cooperative Societies and may appoint such other persons as it may think fit to assist the Central Registrar.
(2) The Central Government may, by notification, direct that any power exercisable by the Central Registrar under this Act (other than the power of registration of a multi-State cooperative society) shall in relation to such society, and such matters as may be specified in the notification be exercisable also by any other officer of the Central Government or of a State Government as may be authorised by the Central Government subject to such conditions as may be specified there in; Provided that no officer of a State Government shall be empowered to exercise such power in relation to a national cooperative society; Provided further that no officer of a State Government below the rank of the Registrar of Cooperative Societies shall be empowered to exercise any power exercisable by the Central Registrar under Section 87.
5. Multi-State Cooperative Societies which may be registered-
(1) No multi-State cooperative society shall be registered under this Act, unless the main objects of the society are to serve the interests of members in more than one State.
(2) Subject to the provisions of sub-section (1), a multi-State cooperative society, which has as its objects the promotion of the economic and social betterment of its members through mutual aid in accordance with the cooperative principles or a multi-State cooperative society established with the object of facilitating the operations of other such societies or of cooperative societies or of both may be registered under this Act.
(3) The word "Limited" or its equivalent in any Indian language shall be suffixed to the name of every multi-state cooperative society registered under this Act with limited liability.
6. Application for registration-
(1) For the purposes of registration of a multi-state cooperative society under this Act, an application shall be made to the Central Registrar in such form and with such particulars as may be prescribed.
(2) The application shall be signed-
(a) in the case of a multi-State cooperative society of which all the members are individuals, by at least fifty persons from each of the States concerned;
(b) in the case of a multi-State cooperative society of which the members are cooperative societies, by duly authorised representatives on behalf of at least two such societies as are not registered in the same state; and
(c) in the case of a multi-State cooperative society of which another multi-State cooperative society and other cooperative societies are members, by duly authorised representatives of each of such societies; Provided that not less than two of the cooperative societies referred to in clause (b) or clause (c) as the case may be, shall be such as are not registered in the same State.
(3) The application shall be accompanied by four copies of the proposed bye-laws of the multi-State cooperative society and the persons by whom or on whose behalf such application is made shall furnish such information in regard to the society as the Central Registrar may require.
7. Registration-
(1) If the Central Registrar is satisfied-
(a) that the application complies with the provisions of this Act and the rules;
(b) that the proposed multi-State cooperative society satisfies the basic criterion that its objects are to serve the interests of members in more than one State;
(c) that there is no other multi-State cooperative society having similar area of operation and identical objects;
(d) that the proposed bye-laws are not contrary to the provisions of this Act and the rules; and
(e) that the proposed multi-State cooperative society has reasonable prospects of becoming a viable unit, he may register the multi-State cooperative society and its bye-laws.
(2) Where the Central Registrar refuses to register a multi-State cooperative society, he shall communicate the order of refusal together with the reasons therefor, to such number of the applicants and in such manner as may be prescribed.
(3) The application for registration shall be disposed of by the Central Registrar within a period of six months from the date of receipt thereof by him: Provided that if the Central Registrar is unable to dispose of the application within the period aforesaid, he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to dispose of such application.
8. Registration certificate- Where a multi-State cooperative society is registered under this Act, the Central Registrar shall issue a certificate of registration signed by him, which shall be conclusive evidence that the society therein mentioned is duly registered under this Act, unless it is proved that the registration of the society has been cancelled.
9. Amendment of bye-laws of a multi-State Cooperative Society-
(1) No amendment of any bye-laws of a multi-State Cooperative society shall be valid, unless such amendment has been registered under this Act.
(2) Every proposal for such amendment shall be forwarded to the Central Registrar and if the Central Registrar is satisfied that the proposed amendment-
(a) is not contrary to the provisions of this Act or of the rules;
(b) does not conflict with cooperative principles; and
(c) will promote the economic interests of the members of the multi-State cooperative society, he may register the amendment within a period of six months from the date of receipt thereof by him.
Provided that if the Central Registrar is unable to register the amendment within the period aforesaid he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall forward to the multi-State cooperative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been duly registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi-State cooperative society, he shall communicate the order of refusal together with the reasons therefor to the Chief Executive of the society in the manner prescribed within seven days from the date of such refusal.
10. When amendment of bye-laws comes into force-An amendment of the bye-laws of a multi-State Cooperative society shall, unless it is expressed to come into operation on a particular day, come into force on the day on which it is registered.
11. Change of name-
(1) A multi-State cooperative society may, by an amendment of its bye-laws, change its name but such change shall not affect any right or obligaton of the multi-State cooperative society or of any of its members or past members, and any legal proceedings which might have been continued or commenced by or against the multi-State cooperative society by its former name may be continued or commenced by or against its new name.
(2) Where a multi-State cooperative society changes its name, the Central Registrar shall enter the new name on the register of multi-State cooperative societies in place of the former name and shall amend the certificate of registration accordingly.
12. Change of address-Every multi-State cooperative society shall have a principal place of business and an address registered in the manner prescribed to which all notices and communications may be sent and any change in the principal place of business of a multi-State cooperative society shall be made with the previous approval of the Central Registrar.
13. Liability-
(1) No multi-State cooperative society with unlimited liability shall be registered after the commencement of this Act: Provided that where a multi-unit cooperative society with unlimited liability was functioning before the commencement of this Act, such a society shall exercise the option within a period of one year from such commencement either to continue to function as such or to convert itself into a multi-State cooperative society with limited liability by following the procedure specified in sub-sections (2) to (4).
(2) Subject to the provisions of this Act and the rules, a multi-unit cooperative society may, by an amendment of its bye-laws, change the extent of its liability.
(3) When a multi-unit cooperative society has passed a resolution to change the extent of its liability, it shall give notice thereof in writing to all its members and creditors, and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor shall, during the period of one month from the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(4) Any member or creditor who does not exercise his option within the period specified in sub-section (3) shall be deemed to have assented to the change.
(5) An amendment of a bye-law of a multi-unit cooperative society changing the extent of its liability shall not be registered or shall not take effect until either-
(a) the assent thereto of all members and creditors has been obtained: or
(b) all claims of members and creditors who exercise the option referred to in sub-section (3) within the period specified therein have been met in full or otherwise satisfied.
14. Amalgamation or transfer of assets and liabilities or division of multi-State Cooperative Societies--
(1) A multi-State cooperative society may, with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of the society held for the purpose,-
(a) transfer its assets and liabilities in whole or in part to any other multi-State cooperative society or cooperative society;
(b) divide itself into two or more multi-State cooperative societies;
(c) divide itself into two or more cooperative societies.
(2) Any two or more multi-State cooperative societies may, with the prior consultation of the Central Registrar and by a resolution passed by a majority of not less than two-thirds of the members present and voting at a general meeting of each such society, amalgamate themselves and form a new multi-State cooperative society.
(3) The resolution of a multi-State cooperative society under sub-section (1) or sub-section (2) shall contain all particulars of the transfer or division or amalgamation, as the case may be: Provided that in the case of a cooperative bank, the Central Registrar shall not accord approval to any such resolution without the previous sanction in writing of the Reserve Bank.
(4) When a multi-State cooperative society has passed a resolution under sub-section (1) or sub-section (2), it shall give notice thereof in writing to all the members and creditors and, notwithstanding anything contained in the bye-laws or contract to the contrary, any member or creditor, shall, during the period of one month of the date of service of the notice upon him, have the option of withdrawing his shares, deposits or loans, as the case may be.
(5) Any member or creditor who does not exercise his option within the period specified in sub-section (4) shall be deemed to have assented to the proposals contained in the resolution.
(6) (a) A resolution passed by a multi-State cooperative society under this section shall not take effect until the assent thereto of all the members and creditors has been obtained.
(b) The multi-State cooperative society shall make arrangements for meeting in full or otherwise satisfying all claims of the members and creditor who exercise the option within the period specified in sub-section (4).
(7) On receipt of an application for the registration of new societies formed by division in accordance with the resolution passed under sub-section (1) or of a new society formed by amalgamation in accordance with the resolution passed under sub-section (2), the Central Registrar, on being satisfied that the resolution has become effective under sub-section (6) shall, unless for reasons to be recorded in writing he thinks fit to refuse so to do, register the new societies or society, as the case may be, and the bye-laws thereof.
(8) On the issue of an order under sub-section (7), the provisions of section 17 shall; so far as may be, apply to the multi-State cooperative society so divided or the multi-State cooperative societies so amalgamated.
(9) Where a resolution passed by a multi-State Cooperative Society under this section involves the transfer of any assets and liabilities, the resolution shall, notwithstanding anything contained in any other law for the time being in force, be a sufficient conveyance to vest the assets and liabilities in the transferee without any further assurance.
15. Central Registrar to prepare scheme of amalgamation or reorganisation of cooperative bank in certain cases-When an order of moratorium has been made by the Central Government under sub-section (2) of section 45 of the Banking Regulation Act, 1949 in respect of a cooperative bank, the Central Registrar, with the previous approval of the Reserve Bank in writing, may, during the period of moratorium, prepare a scheme-
(a) for the amalgamation of the cooperative bank with any other cooperative bank; or
(b) for the reorganisation of the cooperative bank.
16. Liability of a cooperative bank to the Deposit Insurance and Credit Guarantee Corporation-
Notwithstanding anything contained in section 14 or any other provision of this Act, were a cooperative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, is amalgamated or reorganised and the Deposit Insurance Corporation has become liable to pay to the depositors of the insured bank under sub-section (2) of section 16 of the Act, the bank with which such insured bank is amalgamated, or the new cooperative bank found after such amalgamation, or, as the case may be, the insured bank or transferee bank shall be under an obligation to repay to the Deposit Insurance Corporation in the circumstances, to the extent and in the manner referred to in section 21 of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
17. Cancellation of registration certificate of multi-State cooperative societies in certain cases-
(1) Where the whole of the assets and liabilities of a multi-state cooperative society are transferred to another multi-State cooperative society or to a cooperative society in accordance with the provisions of section 14, the registration of the first mentioned multi-State cooperative society shall stand cancelled and the society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(2) Where two or more multi-State cooperative societies are amalgamated into a new multi-State cooperative society in accordance with the provisions of section 14, the registration of each of the amalgamating societies shall stand cancelled on the registration of the new society, and each of the amalgamating societies shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(3) Where a multi-State cooperative society divides itself into two or more multi-State cooperative societies or two or more cooperative societies in accordance with the provisions of section 14, registration of that society shall stand cancelled on the registration of the new societies, and that society shall be deemed to have been dissolved and shall cease to exist as a corporate body.
(4) The amalgamation or division of multi-State cooperative societies shall not in any manner whatsoever effect any right or obligation of the resulting multi-State cooperative society or societies or render defective any legal proceedings by or against the multi-State cooperative society or societies, and any legal proceedings that might have been continued or commenced by or against the multi-State cooperative society or societies, as the case may be, before the amalgamation or division may be continued or commenced by or against the resulting multi-State cooperative society or societies.
18. Conversion of cooperative society into multi-State Cooperative Society-
(1) A cooperative society may, by an amendment of its bye-laws, extend its jurisdiction and convert itself into a multi-State cooperative society: Provided that no such amendment of bye-laws of a cooperative society shall be valid unless it has been registered by the Central Registrar.
(2) (a) Every proposal for such amendment shall be forwarded to the Central Registrar.
(b) If the Central Registrar, after consulting the Registrars of Cooperative Societies of the States concerned, has satisfied himself that such amendment fulfils the requirement of sub-section (2) of section 9, he may register the amendment within a period of six months from the date of receipt thereof by him: Provided that if the Central Registrar is unable to register the amendment within the period aforesaid, he shall make a report to the Central Government stating therein the reasons for his inability to do so, and the Central Government may allow him such further period or periods as is considered necessary to register the amendment.
(3) The Central Registrar shall forward to the cooperative society a copy of the registered amendment together with a certificate signed by him and such certificate shall be conclusive evidence that the amendment has been registered.
(4) Where the Central Registrar refuses to register an amendment of the bye-laws of a cooperative society, he shall communicate the order of refusal together with the reasons therefor to the society in the manner prescribed within seven days from the date of refusal.
(5) (a) Once the amendment of bye-laws has been registered by the Central Registrar, the cooperative society shall, as from the date of registration of amendment, become a multi-State cooperative society.
(b) The Central Registrar shall forward to the cooperative society a certificate signed by him to the effect that such society has been registered as a multi-State cooperative society under this Act and also forward a copy of the same to the Registrar of Cooperative Societies of the State concerned.
(c) The Registrar of Cooperative Societies referred to in clause (b) shall thereupon make an order directing that the society had, as from the date of registration by the Central Registrar, ceased to be a society under the law relating to cooperative societies in force in that State.
MEMBERS OF MULTI-STATE COOPERATIVE SOCIETIES AND THEIR RIGHTS AND LIABILITIES
19. Persons who may become members-
(1) No person shall be admitted as member of a multi-State cooperative society except the following, namely:-
(a) an individual competent to contract under section 11 of the Indian Contract Act, 1872;
(b) any multi-State cooperative society or any cooperative society;
(c) the Central Government;
(d) a State Government;
(e) the National Cooperative Development Corporation established under the National Cooperative Development Corporation Act, 1962;
(f) any other corporation owned or controlled by Government;
(g) any Government company as defined in section 617 of the Companies Act, 1956;
(h) such class or classes of persons or association of persons as may be permitted by the Central Registrar having regard to the nature and activities of a multi-State cooperative society;
(2) Such number of individuals possessing such qualifications as may be prescribed may be admitted as members of the National Cooperative Union of India Limited, New Delhi.
(3) Save as otherwise provided in sub-section (2) and notwithstanding anything contained in sub-section (1) no individual shall be eligible for admission as a member of a national cooperative society.
(4) Any person eligible for membership of a multi-State cooperative society may, on his application, be admitted as a member by such society.
(5) Every application for admission as a member of a multi-State cooperative society shall be disposed of by such society within a period of four months from the date of receipt of the application, and the decision of such society on the application shall be communicated to the applicant within fifteen days from the date of such decision: Provided that if the application is not disposed of within the period aforesaid, or the decision is not communicated within a period of fifteen days of the expiry of the aforesaid period of four months, the multi-state cooperative society shall be deemed to have made a decision, on the date of expiry of such period, refusing admission to the applicant.
(6) Notwithstanding anything contained in this section, the Central Government may, having regard to the fact that the interest of any person or class of persons conflicts or is likely to conflict with the objects of any multi-State cooperative society or class of multi-State cooperative societies, by general or special order published in the Official Gazette, declare that any person or class of persons engaged in or carrying on any profession, business or employment shall be disqualified from being admitted, or for continuing, as members or shall be eligible for membership only to a limited extent of any specified multi-State cooperative society or class of multi-State cooperative societies, so long as such person or persons is or are engaged in or carrying on that profession, business or employment, as the case may be.
20. Members not to exercise rights till due payment made-No member of a multi-State cooperative society shall exercise the rights of a member, unless he has made such payments to the society in respect of membership, or has acquired such interest in the society, as may be specified in the bye-laws.
21. Expulsion of members-
(1) A multi-State cooperative society may, by resolution passed by a majority of not less than two thirds of the members present and voting at a general meeting of members held for the purpose, expel a member for acts which are detrimental to the proper working of the society; Provided that the member concerned shall not be expelled unless he has been given a reasonable opportunity of making representation in the matter.
(2) No member of the multi-State cooperative society who has been expelled under sub-section(1) shall be eligible for readmission as a member of that society, for a period of three years from the date of such expulsion: Provided that the Central Registrar may, on application of the multi-State cooperative society and if satisfied that in the special circumstances of the case, it is necessary so to do in the interests of the multi-State cooperative society, sanction the re-admission or admission within the said period, of any such members as a member of the said society.
22. Votes of members-Every member of a multi-State Cooperative society, including a member who is an employee of such society, shall have one vote in the affairs of the society.
Provided that-
(a) a member who is an employee of such society shall not be entitled to vote-
(i) at an election of a member of the board of such society.
(ii) in any general meeting convened for framing the bye-laws of such society or any amendments thereto:
(b) in the case of an equality of votes, the Chairman shall have a second or casting vote;
(c) where any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 19 is a member of a Multi-State cooperative society, each person nominated by such authority, on the board, in accordance with the provisions contained in this Act and the rules, shall have one vote;
(d) a multi-State cooperative society, the members of which include cooperative societies or other multi-State cooperative societies, may provide for an equitable system of voting having regard to the membership of, and the extent of business carried on by such cooperative societies, or multi-State cooperative societies and other relevant circumstances.
23. Manner of exercising vote-Every member of a multi-State cooperative society shall exercise his vote in person and no member shall be permitted to vote by proxy: Provided that a multi-State cooperative society or a cooperative society which is a member of another multi-State cooperative society, may, subject to the provisions of sub-section (3) of section 29 and the rules, appoint its representative to vote on its behalf in the affairs of that other society.
24. Restrictions on holding of shares-No member, other than any of the authorities referred to in clauses (c) to (g) of sub-section (1) of section 19 or a multi-State cooperative society or a cooperative society, shall hold more than such portion of the total share capital of the society (in no case exceeding one-fifth thereof) as may be prescribed; Provided that the Central Government may, by notification, specify in respect of any class of societies a higher or lower maximum than one-fifth of the share capital.
25. Restrictions on transfer of shares or interest-The transfer of the share or interest of a member in the capital of a multi-State cooperative society shall be subject to such conditions as to maximum holding as are specified in section 24.
26. Redemption of share-Shares held in a multi-State Cooperative society by any of the authorities referred to in clauses (c) to (g) of sub-section(1) of section 19 shall be redeemable in accordance with the bye-laws of such multi-State cooperative society and in a case where the bye-laws do not contain any provision in this regard, in such manner as may be agreed upon between the multi-State cooperative society and such authority.
27. Transfer of interest on death of members-
(1) On the death of a member of multi-State cooperative society may transfer the share or interest of the deceased member to the person nominated in accordance with the rules made in this behalf, or if there is no person so nominated to such person as may appear to the board to be the heir or legal representative of the deceased member, or pay to such nominee, heir or legal representative, as the case may be, a sum representing the value of such members share or interest as ascertained in accordance with the rules; Provided that no such transfer or payment shall be made except with the consent of the nominee, heir or legal representative, as the case may be;
(2) A multi-State cooperative society shall, unless within six months of the death of the member prevented by an order of a competent court, pay to such nominee, heir or legal representative, as the case may be, all other moneys due to the deceased member from the society.
(3) All transfer and payments made by a multi-State cooperative society in accordance with the provisions of this section shall be valid and effectual against any demand made upon the society by any other person.
28. Liability of past member and estate of deceased member-
(1) Subject to the provisions of sub-section (2), the liability of a past member or of the estate of a deceased member of a multi-State cooperative society for the debts of the society as they existed;-
(a) in the case of a past member, on the date on which he ceased to be a member,
(b) in the case of a deceased member, on the date of his death, shall continue for a period of two years from such date.
(2) Notwithstanding anything contained in sub-section (1), where a multi-State cooperative society is ordered to be wound up under section 77, the liability of a past member who ceased to be a member or of the estate of a deceased member who died within two years immediately preceding the date of the order of winding up, shall continue until the entire liquidation proceedings are completed but such liability shall extend only to the debts of the society as they existed on the date of cessation of membership or death, as the case may be.
DIRECTION AND MANAGEMENT OF MULTI-STATE COOPERATIVE SOCIETIES
29. General body, its constitution, powers and functions-
(1) The general body of a multi-State cooperative society shall consist of all the members of such society; Provided that where the bye-laws of a multi-State cooperative society provide for the constitution of a smaller body consisting of delegates of members of the society elected or selected in accordance with such byelaws, that smaller body shall exercise such powers of the general body as may be prescribed or as may be specified in the bye-laws of the society.
(2) Subject to the provisions of this Act, the rules and the bye-laws, the ultimate authority of a multi-State cooperative society shall vest in the general body of its members: Provided that nothing contained in this sub-section shall affect the exercise by the board or any officer of a multi-State cooperative society of any power conferred on such board or such officer by this Act or the rules or the bye-laws.
(3) Where in any meeting of the general body or the board of a multi-State cooperative society, a cooperative society or another multi-State cooperative society is to be represented, such cooperative society or other multi-State cooperative society shall be represented in such meeting only through the Chairman or the Chief Executive of such cooperative society or other multi-State cooperative society, as the case may be, and where there is no board or such cooperative society or other multi-State cooperative society, for whatever reasons, through the administrator, by whatever name called, of such cooperative society or other multi-State cooperative society.
30. Annual general meeting of the general body-
(1) Every multi-State cooperative society shall, within such period as may be prescribed, after the close of the year, call a general meeting of its members in the manner prescribed for the purpose of-
(a) consideration of the audit report and annual report;
(b) disposal of net profits;
(c) approval of the programme of activities for the ensuing year;
(d) amendment of bye-laws;
(e) election, if any, of the members of the board, other than nominated members, subject to the provisions of section 35; Provided that the Central Registrar may by general and special order, extend the period for holding such meeting for a further period not exceeding three months.
Provided further that if in the opinion of the Central Registrar no such extension is necessary or such meeting is not called by the multi-State cooperative society within the extended period, if any, granted by him, the Central Registrar or any person authorised by him in this behalf may call such meeting in the manner prescribed, and that meeting shall be deemed to be a general meeting duly called by the society and the Central Registrar may order that expenditure incurred in calling such a meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the general meeting.
(2) At every annual general meeting of a multi-State cooperative society the board shall lay before the society a statement showing the details of the loans or goods on credit, if any, given to any of the members of the board or to the spouse or a son or daughter of a member of the board during the preceding year or outstanding against him or against such spouse or son or daughter of the member of the board.
31. Special general meeting of the general body-
(1) The Chief Executive may, at any time, on the direction of the board, call a special general meeting of the society and shall call such meeting within one month after the receipt of a requisition in writing from the Central Registrar or from such member or members or a proportion of the total number of members, as may be provided in the bye-laws.
(2) If a special general meeting of a multi-State cooperative society is not called in accordance with the requisition referred to in sub-section (1), the Central Registrar or any person authorised by him in this behalf shall have the power to call such meeting and that meeting shall be deemed to be a meeting called by the Chief Executive in accordance with the provisions of that sub-section and the Central Registrar may order that the expenditure incurred in calling such meeting shall be paid out of the funds of the society or by such person or persons who, in the opinion of the Central Registrar, was or were responsible for the refusal or failure to convene the special general meeting.
32. Board of directors-Subject to the provisions of this Act and the rules, there shall be a board of directors for every multi-State cooperative society consisting of such number of members as may be provided for under the bye-laws.
33. Association of employees in the management decision making process. Every multi-State cooperative society shall devise such procedure, as may be specified in the bye-laws or in the administrative instructions, for association of the representatives of employees of such multi-State cooperative societies at such level or bodies as may be specified in the bye-laws or the instructions issued in this regard, in the management decision making process.
34. Disqualification for a member of a board-No member of any multi-state cooperative society or nominee of a member-society on a national cooperative society shall be eligible for being chosen as, or for being, a member of the board of such multi-State cooperative society or national cooperative society or of any other cooperative society to which the multi-State cooperative society is affiliated, if such member-
(a) has been adjudged by a competent court to be insolvent or of unsound mind;
(b) is concerned or participates in the profits of any contract with the society;
(c) has been convicted for an offence involving moral turpitude;
(d) holds any office or place of profit under the society; Provided that the Chief Executive or such full-time employee of the society as may be notified by the Central Government from time to time or a person elected by the employees of such society to represent them on the Board of such society shall be eligible for being chosen as, or for being, a member of such board;
(e) has been a member of the society for less than twelve months immediately preceding the date of such election or appointment;
(f) has interest in any business of the kind carried on by the society of which he is a member;
(g) has taken loan or goods on credit from the society of which he is a member, or is otherwise indebted to such society and after the receipt of a notice of default issued to him by such society, has defaulted-
(i) in repayment of such loan or debt or in payment of the price of the good taken on credit, as the case may be, within the date fixed for such repayment or payment or where such date is extended, which in no case shall exceed six months, within the date so extended, or
(ii) when such loan or debt or the price of goods taken on credit is to be paid in installments, in payment of any instalment, and the amount in default or any part there of has remained unpaid on the expiry of six months from the date of such default; Provided that a member of the board who had ceased to hold office as such under this clause shall not be eligible, for a period of one year, from the date on which he ceased to hold office, for reelection as a member of the board of the multi-State cooperative society of which he was a member or for election to the board of any other multi-State cooperative society;
(h) is a person against whom any amount due under a degree, decision or order is pending recovery under this Act;
(i) is retained or employed as a legal practitioner on behalf of or against the multi-State cooperative society, or on behalf of or against any other multi-State cooperative society which is a member of the former society.
Explanation: For the purposes of this clause "legal practitioner" has the same meaning as in clause (i) of sub-section (1) of Section 2 of the Advocates Act, 1961;
(j) has been convicted for any offence under this Act.
35. Election of members of board-
(1) The superintendence, direction and control of the preparation of the electoral rolls for, and the conduct of, elections of the members of the board of such multi-State cooperative societies or class of multi-State cooperative societies as the Central Government may, by general or special order, notify, shall be vested in such returning officers as may be appointed by the Central Registrar in this behalf.
(2) The vote at such elections shall be by secret ballot.
(3) The term of office of the elected members of the board shall be such, not exceeding three years from the date of election, as may be specified in the bye-laws of a multi-State cooperative society: Provided that the elected members shall continue to hold office till their successors are elected or nominated under the provisions of this Act or the rules or the bye-laws and assume the charge of their office.
(4) No person shall be eligible to be elected as a member of the board of a multi-State cooperative society unless he is a member of the general body of that society.
(5) The Central Government may make rules generally to provide for or to regulate matters in respect of elections of members of the board.
36. Holding of office in cooperative society-Notwithstanding any thing contained in this Act, no person shall be eligible to hold, at the same time, office of a president or chairman or vice-president or vice-chairman on the board of more than one multi-State cooperative society: Provided that any person holding, at the commencement of this Act, the office of a president or chairman or vice-president or vice-chairman in more than one multi-State cooperative society shall, within three months from such commencement by notice in writing signed by him, intimate the name of the multi-State cooperative society in which he wishes to serve and thereupon his office in the other multi-State cooperative society in which he does not wish to serve shall become vacant: Provided further that in default of such intimation within the period referred to in the preceding proviso, his offices in all the multi-State cooperative societies shall, at the expiration of the period aforesaid, become vacant.
37. Restrictions on holding of office-No person shall be eligible to hold the office of a president or chairman or vice-president or vice-chairman on the board of a multi-State cooperative society, after he has held the office as aforesaid during two consecutive terms, whether full or part: Provided that a person who has ceased to hold the office of a president or chairman continuously, for one full term of three years shall again be eligible for election to the offices aforesaid.
Explanation: Where any person holding the office of the president or vice-president or chairman or vice-chairman at the commencement of this Act is again elected to that office after such commencement, he shall for the purpose of this section, be deemed to have held office for one term before such election.
38. Payment of honorarium-Honorarium may be paid to the elected chairman or president of the board out of the profits of the multi-State cooperative society in respect of specific services rendered by him, subject to such restrictions and conditions as may be prescribed.
39. Removal of elected members by general body-An elected member of a board who has acted adversely to the interests of multi-State cooperative society may, on the basis of a report from the Central Registrar or otherwise, be removed from the board upon a resolution of the general body passed at its meeting by a majority of not less than two thirds of the members present and voting at the meeting. Provided that the member concerned shall not be removed unless he has been given a reasonable opportunity of making representation in the matter.
40. Removal of member by Central Registrar-If in spite of cessation of office under circumstances mentioned in Section 34, Section 36, Section 37 or Section 39 a member of the board refuses to vacate his office, the Central Registrar shall, by order in writing, remove him from such office.
41. Nominee of Central Government or State Government on the board-
(1) Where the Central Government or a State Government has subscribed to the share capital of a multi-state cooperative society or has guaranteed the repayment of principal and payment of interest on debentures issued by a multi-State cooperative society or has guaranteed the repayment of principal and payment of interest on loans and advances to a multi-State cooperative society, the Central Government or the State Government in this behalf, as the case may be, or any person authorised by the Central Government or the State Government, shall have the right to nominate on the board such number of persons as may be prescribed;
(2) The bye-laws of a multi-State cooperative society may provide for the nomination of persons in excess of the limits prescribed under sub-section(1).
(3) A person nominated under this section shall hold office during the pleasure of the Government by which he has been so nominated.
42. Powers and functions of the board--
(1) The board may exercise all such powers as may be necessary or expedient for the purpose of carrying out its functions under this Act.
(2) Without prejudice to the generality of the foregoing power, such power shall include the power--
(a) to admit members;
(b) to interpret the organisational objectives and set up specific goals to be achieved towards these objectives;
(c) to make periodic appraisal of operations;
(d) to appoint a Chief Executive and such other employees of the society (out of the list of persons referred to in section 50) as are not required to be appointed by the Chief Executive;
(e) to make provisions for regulating the appointment of employees of the multi-State cooperative society and the scales of pay, allowances and other conditions of service of, including disciplinary action against, such employees;
(f) to approve annual and supplementary budget;
(g) to acquire or dispose of immovable property;
(h) to raise funds;
(i) to sanction loans to the members; and
(j) to take such other measures or to do such other acts as may be prescribed or required under this Act.
43. Meetings of the board--
(1) The Chief Executive shall convene the meetings of the board at the instance of the chairman or president of the multi-State cooperative society.
(2) The total number of meetings of the board in a year and the venue of meetings may be such as may be prescribed: Provided that the board shall meet at least once in every quarter.
44. Chief Executive--
(1) There shall be Chief Executive, by whatever designation called, of every multi-State cooperative society, to be appointed by the board and he shall be a full-time employee of such multi-State cooperative society.
(2) The Chief Executive shall be member of the board and of the Executive Committee and such other committees or sub-committees as may be constituted under sub-section (1) of section 46.
(3) The functional directors in national cooperative societies shall also be members of the board.
(4) Where the Central Government has subscribed to the extent of more than one-half of the share capital of a national co-operative society, it shall be obligatory on such a society to seek prior approval of the Central Government to the appointment of Chief Executive and the functional directors.
45. Powers and functions of Chief Executive--The Chief Executive shall exercise the powers and discharge the functions, specified below, namely:-
(a) day to day management of the business of the multi-State Cooperative society;
(b) operating the accounts of the multi-State cooperative society and be responsible for making arrangements for safe custody of cash;
(c) signing of the documents for and on behalf of the multi-State cooperative society;
(d) making arrangements for the proper maintenance of various books and records of the multi-State cooperative society and for the correct preparation, timely submission of periodical statements and returns in accordance with the provisions of this Act, the rules and the bye-laws;
(e) convening meetings of the general body of the multi-State cooperative society, the board and the Executive Committee and other committees or sub-committees constituted under sub-section (1) of Section 46 and maintaining proper records for such meetings;
(f) making appointments to posts in the multi-State cooperative society in accordance with the rules made under clause (e) of Sub-section (2) of section 42 except the posts in relation to which the power of appointment vests in the board under Clause (d) of that sub-section;
(g) assisting the board in the formulation of policies and objectives and planning;
(h) furnishing to the board periodical information necessary for appraising the operations and functions of the multi-State cooperative society;
(i) performing such other duties, and exercising such other powers, as may be prescribed or as may be specified in the bye-laws of the multi-State cooperative society.
46. Committees of the board-
(1) The board may, subject to such conditions as may be prescribed, constitute an Executive Committee and other committees or sub-committees, as may be considered necessary.
(2) The Executive Committee or other committee or sub-committee referred to in sub-section (1) shall perform such functions as are assigned to it in accordance with the bye-laws of the multi-State cooperative society.
47. Central Government's power to give directions in public interest- If the Central Government is satisfied that in the public interest or for the purposes of securing proper implementation of cooperative production and other developmental programmes approved or undertaken by the Central Government or to secure proper management of business of the multi-State cooperative societies generally or for preventing the affairs of the multi-State cooperative societies being conducted in a manner detrimental to the interests of the members, any depositors or creditors thereof, it is necessary to issue directions to any class of multi-State cooperative societies generally or to any multi-State cooperative society or societies in particular, the Central Government may issue directions to them or to it, from time to time and all such multi-State cooperative societies or the society concerned, as the case may be, shall be bound to comply with such directions.
48. Supersession of board-
(1) If in the opinion of the Central Registrar the board of any multi-State cooperative society is persistently making default or is negligent in the performance of the duties imposed on it by this Act or the rules or the bye-laws or has committed any act which is prejudicial to the interests of the society or its members or has omitted or failed to comply with any directions given to its under section 47 or that there is a stalemate in the constitution or functions of the board, the Central Registrar may after giving the board an opportunity to state its objections, if any, and considering the objections, if received, by order in writing, remove the board and appoint one or more administrators, who need not be members of the society to manage the affairs of the society for such period not exceeding one year; as may be specified in the order, which period may, at the discretion of the Central Registrar, be extended from time to time; so, however, that the aggregate period does not exceed two years.
(2) The Central Registrar may fix such remuneration for the administrators as he may think fit and the remuneration shall be paid out of the funds of the multi-State cooperative society.
(3) The administrator shall subject to the control of the Central Registrar and to such instructions as he may from time to time give, have power to exercise all or any of the functions of the board or of any officer of the multi-State cooperative society and take all such actions as may be required in the interests of the society.
(4) Save as otherwise provided in sub-section (5), the administrator shall, before the expiry of his term of office, arrange for the constitution of a new board, in accordance with the bye-laws of the multi-State cooperative society.
(5) If at any time during the period of administrator is in office the Central Registrar considers it necessary or expedient so to do, he may, by order in writing giving reasons therefor, direct the administrator to arrange for the constitution of a new board for such multi-State cooperative society in accordance with the bye-laws of such society and immediately on the constitution of such board, the administrators shall hand over the management of such society to such newly constituted board and cease to function.
(6) Where a multi-State cooperative society is indebted to any financial institution the Central Registrar shall, before taking any action, under sub-section (1) in respect of that society, consult the financial institution.
(7) Notwithstanding anything contained in this Act, the Central Registrar shall, in the case of a cooperative bank, if so required in writing by the Reserve Bank in the public interests or for preventing the affairs of the cooperative bank being conducted in a manner detrimental to the interests of the depositors or for securing the proper management of a cooperative bank, pass an order for the supersession of the board of that cooperative bank and for the appointment of an administrator therefor for such periods not exceeding five years in the aggregate as may from time to time be specified by the Reserve Bank.
49. Securing possession of records, etc.-
(1) If-
(a) the records (including registers and books of accounts) of a multi-State cooperative society are likely to be tampered with or destroyed or the funds or other property of such society are likely to be misappropriated or misapplied; or
(b) the board of a multi-State cooperative society is reconstituted at a general meeting of the society; or
(c) the board of a multi-State cooperative society is removed by the Central Registrar under sub-section (1) of section 48; or
(d) a multi-State cooperative society is ordered to be wound up under section 77 and the outgoing members of the board refuse to hand over charge of the records and property of the society to those having, or entitled to receive such charge, the Central Registrar may apply to the magistrate within whose jurisdiction the multi-State cooperative society functions for securing the records and property of the society.
(2) On receipt of an application under sub-section (1), the magistrate may, by a warrant authorise any police officer not below the rank of a sub-inspector to enter and search any place where such records and property are kept or are believed to be kept and to seize such records and property; and the records and property so seized shall be handed over to the new board or administrator of the multi-State cooperative society or the liquidator, as the case may be.
(3) Every such search and seizure shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973.
50. Constitution of body of persons for preparation of list, etc. The Central Government shall-
(a) constitute a body of persons in the manner prescribed for the preparation of a list of persons eligible for appointment to the posts of Chief Executive and other managerial posts in national cooperative societies, the maximum pay-scale of which exceeds such amount as may be prescribed;
(b) make rules for regulating the recruitment, remuneration, allowances and other conditions of service of officers and other employees of national cooperative societies.
51. Acts of multi-State cooperative societies not to be invalidated by certain defects-No act of a multi-State cooperative society or of any board or of any committee or of any officers of the society shall be deemed to be invalid by reason only of the existence of any defect in the procedure or in the constitution of the society or of the board of the committee thereof or in the appointment or election of an officer or on the ground that such officer was disqualified to hold office.
PRIVILEGES OF MULTI-STATE COOPERATIVE SOCIETIES
52. Multi-State Cooperative Society to be body corporate-The registration of a multi-State cooperative society shall render it a body corporate by the name under which it is registered having perpetual succession and a common seal, and with power to hold property, enter into contract, institute and defend suits and other legal proceedings and to do all things necessary for the purposes for which it is constituted.
53. Charge and set off, in respect of share or contribution or interest of member-A multi-State cooperative society shall have a charge on the share or contribution or interest in the capital and on the deposits of a member or past or deceased member and on any dividend, bonus or profits payable to a member or past member or the estate of a deceased member in respect of any debt due from such member or past member of the estate of such deceased member to the society and may set off any sum credited or payable to a member or past member or the estate of deceased member in or towards payment of any such debt.
54. Share or contribution or interest not liable to attachment-
(1) Subject to the provisions of section 53, the share or contribution or interest of a member or past or deceased member in the capital of a multi-State cooperative society shall not be liable to attachment or sale under any decree or order of any court in respect of any debt or liability incurred by such member and an official assignee or a receiver under any law relating to insolvency shall not be entitled to or have any claim on such share of contribution or interest.
(2) The reserve fund, or the bad debt reserves, or the provident fund of the employees of a multi-State cooperative society invested by such society in accordance with the provisions of this Act and the rules shall not be liable to attachment under any decree or order of a court in respect of any debt or liability incurred by the society.
55. Register of member-Any register or list of members or shares kept by any multi-State cooperative society shall be prima facie evidence of any of the following particulars entered therein, namely-
(a) the date on which any person entered in such register or list became a member;
(b) the date on which any such person ceased to be a member.
56. Admissibility of copy of entry as evidence-
(1) A copy of any entry in a book of a multi-State cooperative society regularly kept in the course of its business shall, if certifies in such manner as may be prescribed, be received in any suit or legal proceedings as prima facie evidence of the existence of such entry and shall be admitted as evidence of the matters, transactions and accounts therein every case where and to the same extent as, the original entry itself is admissible.
(2) No officer of a multi-State cooperative society and no officer in whose office the books of a multi-State cooperative society are deposited after liquidation shall, in any legal proceedings to which the society or the liquidator is not a party, be compelled to produce any of the society's books or documents the contents of which can be proved under this section, or to appear as a witness to prove the matters, transactions and accounts therein recorded, except under an order of a court or an arbitrator made for a special cause.
57. Exemption from compulsory registration of instruments-Nothing in clauses (b) and (c) of sub-section (1) of section 17 of the Registration Act, 1908, shall apply to-
(a) any instrument relating to shares in a multi-State cooperative society notwithstanding that the assets of the society consist in whole or in part of immovable property; or
(b) any debenture issued by any such society and not creating, declaring, assigning, limiting or extinguishing any right, title or interest to or in immovable property, except in so far as it entitles the holder thereof to the security afforded by a registered instrument whereby the society has mortgaged, conveyed or otherwise transferred the whole or part of its immovable property or any interest therein to trustees upon trust for the benefit of the holders of such debentures; or
(c) an endorsement upon or transfer of any debenture issued by any such society.
58. Deduction from salary to meet multi-State Cooperative Society's claim in certain cases-
(1) Notwithstanding anything contained in any law for the time being in force, a member of a multi-State cooperative society may execute an agreement in favour of that society providing that his employer disbursing his salary or wages shall be competent to deduct every month from the salary or wages payable to him, such amount as may be specified in the agreement and pay the amount so deducted to the society in satisfaction of any debt or other demand owing by the member to the society.
(2) On the execution of such agreement the employer disbursing the salary or wages of the members shall, if so required by the multi-State cooperative society by a requisition in writing and so long as the society does not intimate that the whole of such debt or other demand has been paid, make the deduction in accordance with the agreement and pay the amount so deducted to the society within a period of fourteen days of the date on which deduction has been made, as if it were a part of the salary or wages payable on the day as required under the Payment of Wages Act, 1936, and such payment shall be valid discharge of the employer for his liability to pay the amount deducted.
(3) If after the receipt of a requisition made under sub-section (2) the employer disbursing the salary or wages of the member at any time fails to deduct the amount specified in the requisition from the salary or wages payable to the member concerned or makes default in remitting the amount deducted to the multi-State cooperative society, the society shall be entitled to recover any such amount from such employer as arrears of land revenue and the amount so due from such employer shall rank in priority in respect of the liability of such employer equal to that of the salary or wages in arrears.
59. Government aid to multi-State Cooperative Societies-Notwithstanding anything contained in any law for the time being in force, the Central Government or a State Government may, with a view to promoting cooperative movement-
(a) subscribe to the share capital of a multi-State cooperative society;
(b) give loans or make advances to a multi-State cooperative society;
(c) guarantee the repayment of principal and payment of interest on debentures issued by a multi-State cooperative society;
(d) guarantee the repayment of share capital of a multi-State cooperative society and dividends thereon at such rates as may be specified by the Central Government or the State Government;
(e) guarantee the repayment of principal and payment of interest on loans advances to a multi-State cooperative society;
(f) give financial assistance in any other form, including subsides, to any multi-State cooperative society.
PROPERTIES AND FUNDS OF MULTI-STATE COOPERATIVE SOCIETIES
60. Funds not to be divided by way of profit-
(1) No part of the funds, other than net profits, of a multi-State cooperative society shall be divided by way of bonus or dividend or otherwise distributed among its members.
(2) The net profits of a multi-State cooperative society referred to in sub-section (1) in respect of a society earning profit shall be calculated by deducting from the gross profits for the year, all interest accrued and accruing in relation to amounts which are overdue, establishment charges, interest payable on loans and deposits, audit fees, working expenses including repairs, rent, taxes and depreciation, bonus payable to employees under the law relating to payment of bonus for the term being in force, and equalization fund for such bonus, provision for payment of income-tax and making approved donations under the Income-tax Act, 1961, development rebate, provision for development fund, bad debt fund, price fluctuation fund, dividend equalization fund, share capital, redemption fund, investment fluctuation fund, provision for retirement benefits to employees, and after providing for or writing off bad debt and losses not adjusted against any funds created out of profit. Provided further that in case of such multi-State cooperative societies as do not have share capital, the surplus of income over expenditure shall not be treated as net profits and such surplus shall be dealt with in accordance with the bye-laws.
61. Disposal of net profits-
(1) A multi-State cooperative society shall out of its net profits in any year-
(a) transfer an amount not less than twenty-five per cent to the reserve fund, and
(b) credit such portion, as may be prescribed, to the cooperative education fund maintained by the National Cooperative Union of India Limited, New Delhi.
(2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilized for all or any of the following purposes, namely;
(a) payment of dividend to members on their paid-up share capital at a rate not exceeding the prescribed limit;
(b) constitution of, or contribution to, such special funds including education funds, as may be specified in the bye-laws;
(c) donation of amount not exceeding five per cent of the net profits for any purpose as defined in section 2 of the Charitable Endowments Act, 1890;
(d) payment of ex gratia amount to employees of the multi-State cooperative society to the extent and in the manner specified in the bye-laws.
(3) The funds of a multi-State cooperative society shall not be utilised for any political purpose.
62. Investment of funds-A multi-State cooperative society may invest or deposit its funds-
(a) in a cooperative bank, State cooperative bank, cooperative land mortgage bank, cooperative land development bank or Central cooperative bank; or
(b) in any of the securities specified in section 20 of the Indian Trusts Act, 1882; or
(c) in the shares or securities of any other multi-State cooperative society or any cooperative society; or
(d) in the shares, securities or assets of any other institution, with the previous approval of the Central Registrar; or
(e) with any bank; or
(f) in such other mode as may be prescribed.
Explanation: In clause (e), "bank" means any banking company as defined in clause (e) of section 5 of the Banking Regulation Act 1949, and includes-
(i) the State Bank of India constituted under the State Bank of India Act, 1955;
(ii) a subsidiary bank as defined in clause (k) of section 2 of the State Bank of India (Subsidiary Banks) Act, 1959;
(iii) a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Under-takings) Act, 1970 or a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980.
63. Restrictions on loans-
(1) A multi-State Cooperative society, other than a cooperative bank, shall not make a loan-
(a) to a member on the security or his share or on the security of a non-member; or
(b) to a non-member; Provided that with the general or special sanction of the Central Registrar, a multi-State cooperative society may make loans to another multi-State cooperative society.
(2) Notwithstanding anything contained in sub-section (1), a multi-State cooperative society may make a loan to a depositor on the security of his deposit.
64. Restrictions on borrowing-A multi-State cooperative society shall receive deposits and loans only to such extent and under such conditions as may be specified in the bye-laws; Provided that a cooperative bank shall be governed by the provisions of the Banking Regulation Act, 1949.
65. Restrictions on other transactions with non-members-Save as provided in section 63 and 64, the transaction of a multi-State cooperative society with any person other than a member shall be subject to such prohibitions and restrictions, if any, as may be prescribed.
66. Contributory Provident Fund-
(1) A multi-State cooperative society having such number or class of employees as may be prescribed may establish a contributory provident fund for the benefit of such employees to which shall be credited all contributions made by the employees and the society in accordance with the bye-laws of the society.
(2) Monies standing to the credit of any contributory provident fund established by a multi-State cooperative society under sub-section (1) shall not-
(a) be used in the business of the society;
(b) form part of the assets of the society;
(c) be liable to attachment or be subject to any other process or any court or other authority.
(3) Notwithstanding anything contained in this section, a provident fund established by a multi-State cooperative society to which the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, apply, shall be governed by that Act.
AUDIT, INQUIRY, INSPECTION AND SURCHARGE
67. Audit-
(1) The Central Registrar shall audit, or cause to be audited by a person authorised by him by general or special order in writing in this behalf, the accounts of every multi-State cooperative society at least once in each year.
(2) The audit under sub-section (1) shall include an examination of overdue debts, if any, the verification of the cash balance and securities, and a valuation of the assets and liabilities of the multi-State cooperative society.
(3) The person auditing the accounts of a multi-State cooperative society shall have free access to the books, accounts, papers, vouchers, stock and other property of such society and shall be allowed to verify its cash balance and securities.
(4) The directors, managers, administrators and other officers of the multi-State cooperative society shall furnish to the person auditing the accounts of the society all such information as to its transactions and working as such person may require.
(5) The Central Registrar or the person authorised by him under sub-section (1) to audit the accounts of a multi-State cooperative society shall have power, where necessary-
(a) to summon at the time of the audit any officer, agent, servant or member of the society, past or present, who, he has reason to believe can give valuable information in regard to transactions of the society or the management of its affairs; and
(b) to require the production of any book or document relating to the affairs or, any cash or securities belonging to, the society by any officer, agent, servant, or member of the society in possession of such books, documents, cash or securities and in the event of serious irregularities discovered during audit, to take them into custody.
(6) If at the time of audit the accounts of a multi-State cooperative society are not complete, the Central Registrar or the person authorised by him under sub-section (1) to audit may cause the accounts to be written up at the expense of the society.
(7) Audit fee, if any, due from any multi-State cooperative society shall be determined by the Central Registrar and shall be recoverable in the same manner as is provided in section 89.
68. Inspection of multi-State cooperative Societies-
(1) The Central Registrar, or any person authorised by him by general or special order in writing in this behalf, may inspect a multi-State cooperative society.
(2) (a) For the purpose of inspection under sub-section (1), the Central Registrar or the person authorised by him under that sub-section shall at all times have access to all books, accounts, papers, vouchers, securities, stock and other property of that society and may, in the event of serious irregularities discovered during inspection, take them into custody and shall have power to verify the cash balance of the society and subject to the general or special order of the Central Registrar to call a meeting of the board and also a general meeting of the society where such general meeting is, in his opinion, necessary. (b) Every officer of members of a multi-State cooperative society shall furnish information with regard to the working of the society as the Central Registrar or the person making such inspection may require.
(3) A copy of the report of inspection under this section shall be communicated to the multi-State cooperative society within a period of three months from the date of completion of such inspection.
69. Inquiry by Central Registrar-
(1) The Central Registrar may, of his own motion or on the application of a majority of the members of the board or of not less than one third of the members, hold an inquiry or direct some person authorised by him by order in writing in this behalf to hold an inquiry into the constitution, working and financial condition of a multi-State cooperative society.
(2) The Central Registrar or the person authorised by him under sub-section (1) shall have the following powers, namely;
(a) he shall at all reasonable times have free access to the books, accounts, documents, securities, cash and other properties belonging to or in the custody of the multi-State cooperative society and may summon any person in possession or responsible for the custody of any such book, accounts, documents, securities, cash or other properties to produce the same, at any place specified by him;
(b) he may, notwithstanding any rules or bye-laws specifying the period of notice for a general meeting of the multi-State cooperative society, require the officers of the society to call a general meeting of the society by giving notice of not less than seven days at such time and place at the headquarters of the society to consider such matters, as may be directed by him; and where the officers of the society refuse or fail to call such a meeting he shall have power to call it himself;
(c) he may summon any person who is reasonably believed by him to have any knowledge of the affairs of the multi-State cooperative society to appear before him at any place at the headquarters of the society or any branch thereof and may examine such person on oath.
(3) Any meeting called under clause (b) of sub-section (2) shall have all the powers of a general meeting of the society called under the bye-laws of the society and its proceedings shall be regulated by such bye-laws.
(4) The Central Registrar shall, within a period of three months of the date of receipt, communicate a brief summary of the report of the inquiry to the multi-State cooperative society, the financial institutions, if any, to which the society is affiliated, and to the person or authority, if any, at whose instance the inquiry is made.
70. Inspection of books of indebted multi-State cooperative societies-
(1) The Central Registrar shall, on the application of a creditor of a multi-State cooperative society, inspect, or direct some person authorised by him by order in writing in this behalf to inspect, the books of the society: Provided that no such inspection shall be made unless the applicant-
(a) satisfies the Central Registrar that the debt is a sum then due, and that he has demanded payment thereof and has not received satisfaction within a reasonable time; and
(b) deposits with the Central Registrar such sum as security for the costs of the proposed inspection as the Central Registrar may require.
(2) The Central Registrar shall communicate the result of any such inspection to the creditor.
71. Cost of inquiry and inspection-Where an inquiry is held under section 69 or an inspection is made under section 70, the Central Registrar may apportion the costs, or such part of the costs, as he may think fit, between the multi-State cooperative society, the members or creditor demanding an inquiry or inspection, and the officers or former officers and the members or past members of that society; Provided that-
(a) no order of apportionment of the cost shall be made under this section unless the society or the person liable to pay the costs thereunder has had a reasonable opportunity of being heard;
(b) the Central Registrar shall state in writing under his own hand the grounds on which the costs are apportioned.
72. Recovery of costs-Any sum awarded by way of costs under section 71 may be recovered, on application to a magistrate having jurisdiction in the place where the person, from whom the money is claimable, actually and voluntarily resides or carries on business, and such magistrate shall recover the same as if it were a fine imposed by himself.
73. Repayment, etc.-
(1) If in the course of an audit, inquiry, inspection or the winding up of a multi-State cooperative society, it is found that any person, who is or was entrusted with the organisation or management of such society or who is or has at any time been an officer or an employee of the society, has made any payment contrary to this Act, the rules or the bye-laws or has caused any deficiency in the assets of the society by breach of trust or wilful negligence or has misappropriated or fraudulently retained any money or other property belonging to such society, the Central Registrar may, of his own motion or on the application of the board, liquidator any creditor, inquire himself or direct any person authorised by him, by an order in writing in this behalf, to inquire into the conduct of such person within a period of two years from the date of the report of the audit, inspection or inquiry or the date of the order of winding up, as the case may be; Provided that where the Central Registrar is satisfied that such inquiry could not be commenced during the period of two years aforesaid on account of fraud or concealment of facts make, or direct the inquiry to be made, with such period not exceeding six years from the date of the audit, inspection or the inquiry or the date of the order of winding up, as he may think fit.
(2) Where an inquiry is made under sub-section (1), the Central Registrar may, after giving the person concerned a reasonable opportunity of being heard, make an order requiring him to repay or restore the money or property or any part thereof, with interest at such rate, or to pay contribution and cost or compensation to such extent, as the Central Registrar may consider just and equitable.
SETTLEMENT OF DISPUTES
74. Disputes-
(1) Notwithstanding anything contained in any other law for the time being in force, if any dispute (other than a dispute regarding disciplinary action taken by a multi-State cooperative society against its paid employee or an industrial dispute as defined in clause (k) of section 2 of the Industrial Disputes Act, 1947) touching the constitution, management or business of a multi-State cooperative society arises-
(a) among members, past members and persons claiming through members and deceased members, or
(b) between a member, past member or a person claiming through a member, past member or deceased member and the multi-State cooperative society, its board or any officer, agent or employee of the multi-State cooperative society or liquidator, past or present, or
(c) between the multi-State cooperative society or its board and any past board, any officer, agent or employee, or any past officer, past agent of past employee or the nominee, heirs or legal representatives of any deceased officer, or deceased employee of the multi-State cooperative society, or
(d) between the multi-State cooperative society and any other multi-State cooperative society, between a multi-State cooperative society and liquidator of another multi-State cooperative society or between the liquidator of one multi-State cooperative society and the liquidator of another multi-State cooperative society, Such dispute shall be referred to the Central Registrar for decision and no court shall have jurisdiction to entertain any suit or other proceedings in respect of such dispute; Provided that all disputes in which a national cooperative society is a party shall be referred to the Central Registrar or any officer empowered to exercise the power of the Central Registrar.
(2) For the purposes of sub-section (1), the following shall be deemed to be disputes touching the constitution, management or business of a multi-State cooperative society, namely:
(a) a claim by the multi-State cooperative society for any debt or demand due to it from a member or the nominee, heirs or legal representatives of a deceased member, whether such debt or demand be admitted or not;
(b) a claim by a surety against the principal debtor where the multi-State cooperative society has recovered from the surety any amount in respect of any debt or demand due to it from the principal debtor as a result of the default of the principal debtor, whether such debt or demand is admitted or not;
(c) any dispute arising in connection with the election of any officer of a multi-State cooperative society.
(3) If any question arises whether a dispute referred to the Central Registrar is or is not a dispute touching the constitution, management or business of a multi-State cooperative society, the decision thereon of the Central Registrar shall be final and shall not be called in question in any court.
75. Limitation-
(1) Notwithstanding anything contained in the Limitation Act, 1963, but subject to the specific provisions made in this Act, the period of limitation in the case of a dispute referred to the Central Registrar shall,
(a) When the dispute relates to the recovery of any sum including interest thereon due to a multi-State cooperative society by a member thereof, be computed from the date on which such member dies or ceases to be a member of the society;
(b) save as otherwise provided in clause(c), when the dispute relates to any act or omission on the part of any of the parties referred to in clause (b) or clause (c) of sub-section (1) of section 74, be six years from the date on which the act or omission, with reference to which the dispute arose, took place;
(c) when the dispute relates to a multi-State cooperative society which has been ordered to be wound up under section 77 or in respect of which an administrator has been appointed under section 48, be six years from the date of the order issued under section 77 or section 48, as the case may be;
(d) when the dispute is in respect of an election of an officer of a multi-State cooperative society, be one month from the date of the declaration of the result of the election.
(2) The period of limitation in the case of any dispute, except those mentioned in sub-section (1), which are required to be referred to the Central Registrar shall be regulated by the provisions of the Limitation Act, 1963, as if the dispute were a suit and the Central Registrar a civil court.
(3) Notwithstanding anything contained in sub-sections(1) and (2), the Central Registrar may admit a dispute after the expiry of the period of limitation, if the applicant satisfies the Central Registrar that he had sufficient cause for not referring the dispute within such period.
76. Settlement of disputes-
(1) The Central Registrar may, on receipt of the reference of dispute under section 74.
(a) elect to decide the dispute himself, or
(b) transfer it for disposal to any other person who has been invested by the Central Government with powers in that behalf.
(2) The Central Registrar may withdraw any reference transferred under clause (b) of sub-section (1) and decide it himself or refer the same for decision to any other person who has been invested by the Central Government with powers in that behalf.
(3) The Central Registrar or any other person to whom a dispute is referred for decision under this section may, pending the decision of the dispute, make such interlocutory orders as he may deem necessary in the interest of justice.
WINDING UP OF MULTI-STATE COOPERATIVE SOCIETIES
77. Winding up of Multi-State Cooperative Societies-
(1) If the Central Registrar, after an inquiry has been held under section 69 or an inspection has been made under section 70, or on receipt of an application made by not less than three fourths of the members of a multi State cooperative society, is of the opinion that the society ought to be wound up, he may, after giving the society a reasonable opportunity of making its representations, by order, direct it to be wound up.
(2) The Central Registrar may, of his own motion and after giving the multi-State cooperative society a reasonable opportunity of making its representations, make an order directing the winding up of the multi-State cooperative society-
(a) where it is a condition of the registration of the society that the society shall consist of at least fifty members and the number of members has been reduced to less than fifty; or
(b) where the multi-State cooperative society has not commenced working within a period of six months of the date of its registration or such extended period as the Central Registrar may allow in this behalf or has ceased to function in accordance with cooperative principles.
(3) The Central Registrar may cancel an order for the winding up of a multi-State cooperative society, at any time, in any case where in his opinion, the society should continue to exist.
(4) A copy of such order shall be communicated by registered post to the multi-State cooperative society and to the financial institutions, if any, of which the society is a member.
(5) Notwithstanding anything contained in this section no cooperative bank shall be wound up except with the previous sanction in writing of the Reserve Bank.
78. Winding up of cooperative banks at the direction of Reserve Bank-Notwithstanding anything to the contrary contained elsewhere in this Act, the Central Registrar shall make an order for the winding up of a cooperative bank, if so required by the Reserve Bank in the circumstances mentioned in section 13D of the Deposit Insurance and Credit Guarantee Corporation Act, 1961.
79. Reimbursement to the Deposit Insurance Corporation by liquidator-Where a cooperative bank, being an insured bank within the meaning of the Deposit Insurance and Credit Guarantee Corporation Act, 1961, is wound up and the Deposit Insurance Corporation has become liable to the depositors of the insured bank under sub-section (1) of section 16 of that Act, the Deposit Insurance Corporation shall be reimbursed by the liquidator or such other person in the circumstances, to the extent and in the manner provided in section 21 of that Act.
80. Liquidator-
(1) Where the Central Registrar has made an order under section 77 for the winding up of a multi-State cooperative society, the Central Registrar may appoint a liquidator for the purpose and fix his remuneration.
(2) A liquidator shall, on appointment, take into his custody or under his control all the property, effects and actionable claims to which the multi-State cooperative society is or appears to be entitled and shall take such steps as he may deem necessary or expedient to prevent loss or deterioration of, or damage to, such property, effects and claims and he may carry on the business of the multi-State cooperative society so far may be necessary with the previous approval of the Central Registrar.
(3) Where an appeal is preferred under clause (k) of sub-section (1) of section 90, an order for the winding up of a multi-State cooperative society made under section 77 shall not operate thereafter until the order is confirmed in appeal; Provided that the liquidator shall continue to have custody or control of the Property, effects and actionable claims mentioned in sub-section (2) and have authority to take the step referred to in that sub-section.
(4) Where an order for the winding up of a multi-State cooperative society is set aside in appeal, the property, effects and actionable claims of the society shall reinvest in the society.
81. Powers of liquidator-
(1) Subject to any rules made in this behalf, the whole of the assets of a multi-State cooperative society in respect of which an order for winding up has been made, shall vest in the liquidator appointed under section 80 from the date on which the order takes effect and the liquidator shall have power to realise such assets by sale or otherwise.
(2) Such liquidator shall also have power, subject to the control of the Central Registrar-
(a) to institute and defend suits and other legal proceedings on behalf of the multi-State cooperative society by the name of his office;
(b) to determine from time to time the contribution (including debts due and costs of liquidation) to be made or remaining to be made by the members or past members or by the estates or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the multi-State cooperative society;
(c) to investigate all claims against the multi-State cooperative society and subject to the provisions of this Act, to decide questions of priority arising between claimants;
(d) to pay claims against the multi-State cooperative society, including interest up to the date of winding up according to their respective priorities, if any, in full or rateably, as the assets of the society may permit; the surplus, if any, remaining after payment of the claims being applied in payment of interest from the date of such order of winding up at a rate fixed by him but not exceeding the contract rate in any case;
(e) to determine by what persons and in what proportions the costs of the liquidation are to be borne;
(f) to determine whether any person is a member, past member or nominee of a deceased member;
(g) to give such directions in regard to the collection and distribution of the assets of the multi-State cooperative society as may appear to him to be necessary for winding up the affairs of that society;
(h) to carry on the business of the multi-State cooperative society so far as may be necessary for the beneficial winding up of the same;
(i) to make any compromise or arrangement with creditors or persons claiming to be creditors or having or alleging to have any claim, present or future, whereby the multi-State cooperative society may be rendered liable;
(j) to make any compromise or arrangement with any person between whom and the multi-State cooperative society there exists any dispute and to refer to any such dispute for decision;
(k) after consulting the members of the multi State cooperative society, to dispose of the surplus, if any, remaining after paying the claims against the society, in such manner as may be prescribed;
(l) to compromise all calls or liabilities, to calls and debts and liabilities capable of resulting in debts, and all claims, present or future, certain or contingent, subsisting or alleged to be subsisting between the multi-State cooperative society and a contributory or other debtor or person apprehending liability to the multi-State cooperative society and all questions in any way relating to or affecting the assets or the winding up of the society on such terms as may be agreed any take any security for the discharge of any such call, liability, debt or claim and give a complete discharge in respect thereof.
(3) When the affairs of a multi-State cooperative society have been wound up, the liquidator shall make a report to the Central Registrar and deposit the records of the society in such place as the Central Registrar may direct.
82. Disposal of surplus assets-The surplus assets, as shown in the report of a liquidator of a multi-State cooperative society which is wound up;
(a) may, if the bye-laws of the multi-State cooperative society specify the purpose for which surplus shall be utilised, be utilised by the Central Registrar for the said purpose, and
(b) if the bye-laws aforesaid do not specify the purpose, be divided by the Central Registrar, with the previous sanction of the Central Government, amongst the members of such multi-State cooperative society in such manner as may be prescribed.
83. Priority of contributions assessed by liquidator-Notwithstanding anything contained in any law relating to insolvency the contribution assessed by a liquidator shall rank next to debts due to the Central Government or a State Government or a local authority in accordance with the order of priority in insolvency proceedings.
84. Power of Central Registrar to cancel registration of a multi-State Cooperative Society-
(1) The Central Registrar may, after considering the report of the liquidator made to him under sub-section (3) of section 81, order the registration of the multi State cooperative society to be cancelled and on such cancellation, that society shall stand dissolved.
(2) An order passed under sub-section (1) shall be communicated by registered post to the president of the multi-State cooperative society and to the financial institutions, if any, of which the society was a member.
EXECUTION OF DECREES, ORDERS AND DECISIONS
85. Execution of decisions, etc.-Every decision or order made under section 30, section 31, section 73, section 76, section 90, section 92 or section 93 shall, if not carried out.
(a) on a certificate signed by the Central Registrar or any person authorised by him in writing in this behalf, be deemed to be a decree of a civil court and shall be executed in the same manner as if it were a decree of such court or
(b) where the decision or order provides for the recovery of money, be executed according to the law for the time being in force for the recovery of arrears of land revenue: Provided that any application for the recovery in such manner of any sum shall be made-
(i) to the Collector and shall be accompanied by a certificate signed by the Central Registrar or by any person authorised by him in writing in this behalf;
(ii) within twelve years from the date fixed, in the decision or order and if no such date is fixed from the date of the decision or order, as the case may be; or
(c) be executed by the Central Registrar or any persons authorised by him in writing in this behalf, by attachment and sale or sale without attachment of any property of the person or a multi-State cooperative society against whom the decision or order has been made.
86. Execution of orders of liquidator-Every order made by the liquidator under section 81 shall be executed according to the law for the time being in force for the recovery of arrears of land revenue.
87. Attachment before award-
(1) Where the Central Registrar is satisfied that a party to any reference made to him under section 74 with intent to defeat or delay the execution of any decision that may be passed thereon is about to-
(a) dispose of the whole or any part of the property; or
(b) remove the whole or any part of the property from its existing precincts, the Central Registrar may, unless adequate security is furnished, direct conditional attachment of the said property or such part thereof as he think necessary.
(2) The attachment under sub-section (1) shall be executed by a civil court having jurisdiction in the same way as an attachment order passed by itself and shall have the same effect as such order.
88. Central Registrar or the person authorised by him to be civil court for certain purposes-The Central Registrar or any person authorised by him in writing in this behalf shall be deemed, when exercising any powers under this Act for the recovery of any amount by the attachment and sale or by sale without attachment of any property, or when passing any orders on any application made to him for such recovery or for taking a step-in-aid of such recovery, to be a civil court for the purposes of article 136 of the Schedule to the Limitation Act, 1963.
89. Recovery of sums due to Government-
(1) All sums due from a multi-State cooperative society, or from an officer or member or past member of a multi-State cooperative society, to the Central Government or a State Government, including any cost awarded to the Central Government or the State Government, as the case may be under any provision of this Act, may on a certificate issued by the Central Registrar in this behalf, be recovered in the same manner as arrears of land revenue.
(2) Sums due from a multi-State cooperative society to the Central Government or a State Government and recoverable under sub-section(1) may be recovered firstly from the property of the society and secondly from the members, past members or the estates of deceased members, subject to the limit of their liability; Provided that the liability of past members and the estate of deceased members shall in all cases be subject to the provision of section 28.
APPEALS AND REVISION
90. Appeals-
(1) Subject to the provisions of section 91, an appeal shall lie under this section against-
(a) an order made by the Central Registrar under sub-section (2) of section 7 refusing to register a multi-State cooperative society;
(b) an order made by the Central Registrar under sub-section (4) of section 9 refusing to register an amendment of the bye-laws of multi-State cooperative society;
(b) an order made by the Central Registrar under sub-section (4) of section 9 refusing to register an amendment of the bye-laws of multi-State cooperative society;
(c) a decision of a multi State cooperative society refusing or deemed to be refusing under sub-section (5) of section 19 to admit any person as a member of the society who is otherwise duly qualified for membership under the bye-laws of the society;
(d) a decision of a multi-State cooperative society under sub-section (1) of section 21 expelling any of its members;
(e) a decision of a multi-State cooperative society removing an elected members of a board under section 39;
(f) an order made by the Central Registrar under section 40 removing a member from his office;
(g) an order made by the Central Registrar under section 48 superseding the board of directors of a multi-State cooperative society;
(h) an order made by the Central Registrar under section 71 apportioning the cost of an inquiry held under section 69 or an inspection made under section 70;
(i) an order made under sub-section (2) of section 73;
(j) a decision or order made under section 76;
(k) an order made by the Central Registrar under section 77 directing the winding up of multi-State cooperative society;
(l) an order made by the liquidator of a multi-State cooperative society under section 81;
(m) an order under section 87 directing attachment of property before award.
(2) An appeal against any decision or order under sub-section (1) shall be made within sixty day from the date of such decision or order,
(a) if the decision or order was made by the Central Registrar, to the prescribed authority;
(b) if the decision was made by a multi-State cooperative society (other than a national cooperative society), or a liquidator of such society, to the officer who is empowered to exercise the powers of the Central Registrar under sub-Section (2) of section 4; or
(c) if the decision was made by a national cooperative society or a liquidator of such society, to the Central Registrar appointed under sub-section(1) of section 4.
(3) The appellate authority may, if satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the period of sixty days, admit the appeal within such further period not exceeding sixty days as that authority may deem fit.
(4) In disposing of an appeal under this section, the appellate authority may, after giving the parties a reasonable opportunity of making their representations, pass such order thereon as that authority may deem fit.
(5) The decision or order of the appellate authority on appeal shall be final.
91. No appeal or revision in certain cases-Notwithstanding anything contained in this Act, where with the previous sanction in writing of or on requisition by, the Reserve Bank, a cooperative bank-
(a) is being wound up; or
(b) in respect of which a scheme of amalgamation or reorganisation is given effect to; or
(c) in respect of which an order for the supersession of the board and the appointment of an administrator therefor has been made, no appeal, revision or review there against shall lie or be permissible, and the sanction or requisition of the Reserve Bank shall not be liable to be called in question.
92. Revision-
(1) Subject to the provisions of section 91, the Central Government may, of its own motion or on an application, call for and examine the records of any proceedings in which no appeal lies to the appellate authority under section 90 for the purpose of satisfying itself as to the legality or propriety of any decision or order made under this Act and if in any case it shall appear to the Central Government that any such decision or order should be modified, annulled or revised or remitted for reconsideration, the Central Government may, after giving the party to be affected thereby a reasonable opportunity of being heard, pass such order thereon as it may deem fit. Provided that the application to the Central Government for the exercise of the power under this section shall be preferred within ninety days from the date on which the decision or order to which the application relates was communicated to the applicant; Provided further that the Central Government may, if satisfied that the appellant was prevented by sufficient cause from making the application within the said period of ninety days, admit the application after the expiry of the said period.
(2) The Central Government may suspend the execution of the decision or order pending the exercise of its power under sub-section (1) in respect thereof.
(3) The Central Government may award costs in proceedings under this section to be paid out of the funds of the multi-State cooperative society concerned or by such party to the application for revision as the Central Government may deem fit.
93. Review-
(1) The appellate authority under section 90 may, on the application of any party interested, review its own order in any case and pass in reference thereto such order as it thinks fit; Provided that no such application shall be entertained unless the appellate authority is satisfied that there has been a discovery of new and important matter or evidence which after exercise of due diligence was not within the knowledge of the applicant or could not be produced by him at the time when the order was made or that there has been some mistake or error apparent on the face of the record or for any other sufficient reason; Provided further that no such order shall be made under this sub-section unless notice has been given to all interested parties and they have been afforded a reasonable opportunity of being heard.
(2) An application for review under sub-section (1) by any party shall be made within thirty days from the date of communication of the order of the appellate authority sought to be reviewed.
94. Interlocutory orders-Where an appeal is made under section 90 or where the Central Government calls for the records of a case under section 92, the appellate authority or the Central Government, as the case may be, may in order to prevent the ends of justice being defeated, make such interlocutory orders, including an order of stay, pending the decision of the appeal or revision as such authority or the Central Government may deem fit.
OFFENCES AND PENALTIES
96. Offences-
(1) A multi-State cooperative society or an officer or member thereof wilfully making a false return or furnishing false information, or any person wilfully or without any reasonable excuse disobeying any summons, requisition or lawful written order issued under the provisions of this Act, or wilfully not furnishing any information required from him by a person authorised in this behalf under the provisions of this Act, shall be punishable with fine which may extend to two hundred rupees.
(2) Any employer who without sufficient cause, fails to pay to a multi-state cooperative society the amount deducted by him under section 58 within a period of fourteen days from the date on which such deduction is made, shall, without prejudice to any action that may be taken against him under any other law for the time being in force, be punishable with fine which may extend to five hundred rupees.
(3) Any officer or custodian who wilfully fails to hand over custody of books, accounts, documents, records, cash, security and other property belonging to a multi-State cooperative society of which he is an officer or custodian, to a person entitled under section 49, section 67, section 68, section 69 or section 80 shall be punishable with fine which may extend to two hundred rupees and in the case of a continuing breach, with a further fine which may extend to five hundred rupees for every day during which the breach is continued after conviction for the first such breach.
97. Cognizance of offences-
(1) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence under this Act.
(2) No prosecution shall be instituted under this Act without the previous sanction of the Central Registrar and such sanction shall not be given without giving to the person concerned a reasonable opportunity to represent his case.
MISCELLANEOUS
98. Copy of Act, rules and bye-laws etc., to be open to inspection-Every multi-State cooperative society shall keep a copy of this Act, the rules and its bye-laws and also a list of its members, open to inspection free of charge at all reasonable times at the registered address of the society.
99. Power to exempt multi-State Cooperative Societies from conditions as to registration-
(1) Notwithstanding anything contained in this Act, the Central Government may, by general or special order, for reasons to be recorded therein, and subject to such conditions, if any, as may be specified therein exempt any multi-State cooperative society or class of such societies from any of the requirement of this Act relating to registration;
(2) (a) The Central Government may, by general or special order and for reasons to be recorded therein; (i) exempt any multi-State cooperative society or any class of such societies from any of the provisions of this Act or of the rules; or (ii) direct that such provisions shall apply to such society or class of societies with such modifications not affecting the substance thereof as may be specified in the order; Provided that no order shall be made under sub-clause (ii) so as to prejudice the interests of such society or class of such societies without a reasonable opportunity being given to make representation in the matter. (b) Every order made under clause (a) shall be published in the Official Gazette.
100. Liquidator to be public servant-Any person appointed as liquidator under the provisions of this Act shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code.
101. Notice necessary in suits-No suit shall be instituted against a multi-State cooperative society or any of its officers in respect of any act touching the constitution, management or the business of the society until the expiration of ninety days next after notice in writing has been delivered to the Central Registrar or left at his office, stating the cause of action, the name, description and place of residence of the plaintiff and the relief which he claims, and the plaint shall contain a statement that such notice has been so delivered or left.
102. Certain Acts not to apply-
(1) The provisions of the Companies Act, 1956 and the Monopolies and Restrictive Trade Practices Act, 1969 shall not apply to multi-State cooperative societies.
(2) The multi-State cooperative societies registered or deemed to be registered under the provisions of this Act shall not indulge in monopolistic and restrictive trade practices, as defined in the Monopolies and Restrictive Trade Practices Act, 1969.
103. Savings of existing multi-State Cooperative Societies-
(1) Every multi-State cooperative society existing immediately before the commencement of this Act which has been registered under the Cooperative Societies Act, 1912 or under any other Act relating to cooperative societies in force, in any State or in pursuance of the provisions of the Multi-unit Cooperative Societies Act, 1942, shall be deemed to be registered under the corresponding provisions of this Act, and the bye-laws of such society shall, in so far as they are not inconsistent with the provisions of this Act, or the rules, continue to be in force until altered or rescinded.
(2) All appointments, rules and orders made, all notifications and notices issued and all suits and other proceedings instituted under any of the Acts referred to in sub-section (1) shall, in so far as they are not inconsistent with the provisions of this Act, be deemed to have been respectively made, issued and instituted under this Act, save that an order made cancelling the registration of a multi-State cooperative society shall be deemed, unless the society has already been finally liquidated, to be an order made under section 77 for its being wound up.
104. Power to amend second Schedule-
(1) If the Central Government is satisfied that any multi-State cooperative society should be designated as a national cooperative society or any national cooperative society specified in the second Schedule should be omitted from the said Schedule, it may, by notification, amend the said Schedule so as to include there in such multi-State cooperative society or exclude therefrom such national cooperative society, and thereupon the said Schedule shall be deemed to have been amended accordingly.
(2) A copy of every notification made under sub-section (1) shall be laid before each House of Parliament as soon as may be after it is made.
105. Bar of jurisdiction of courts-
(1) Save as otherwise provided in this Act, no court shall have jurisdiction in respect of-
(a) the registration of a multi-State cooperative society or its bye-laws or of an amendment of the bye-laws;
(b) the removal of board of directors;
(c) any dispute required under section 74 to be referred to the Central Registrar; and
(d) any matter concerning the winding up and the dissolution of a multi State cooperative society.
(2) While a multi-State cooperative society is being wound up, no suit or other legal proceedings relating to the business of such society, shall be proceeded with or instituted against the liquidator or against the society or any member thereof, except by leave of the Central Registrar and subject to such terms and conditions as he may impose.
(3) Save as otherwise provided in this Act, no decision or order made under this Act shall be questioned in any court.
106. Powers of civil court-
(1) In exercising the functions conferred on him by or under this Act, the Central Registrar, or any other person deciding a dispute under section 76 and the liquidator of a multi-State cooperative society and a person entitled to audit, inspect or hold an inquiry under this Act, shall have all the powers of a civil court while trying a suit under the Code of Civil Procedure, 1908, in respect of the following matters, namely:-
(a) summoning and enforcing the attendance of any person and examining him on oath;
(b) requiring the discovery and production of any document;
(c) proof of facts by affidavits; and
(d) issuing commissions for examination of witnesses.
(2) In the case of an affidavit, any officer appointed by the Central Registrar, or any other person deciding a dispute or the liquidator, as the case may be, may administer oath to the deponent.
107. Indemnity-No suit, prosecution or other legal proceedings shall lie against the Central Registrar or any person subordinate to him or acting on his authority or against any other person in respect of anything in good faith done or purporting to have been done under this Act.
108. Opening of branches-
(1) Notwithstanding anything contained to the contrary in any law relating to cooperative societies in force in a State, a multi-State cooperative society, not being a cooperative bank, may open branches or places of business in any place in India.
(2) Where a multi-State cooperative society opens branches or places of business in any State under sub-section (1), the Registrar of Cooperative Societies in such State shall not exercise any jurisdiction in relation to such branches or places of business nor shall call for any returns or information therefrom.
109. Power to make Rules-
(1) The Central Government may, by notification, make rules to carry out the provisions of the Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:-
(i) the form to be used, the particulars to be given and the conditions to be complied with in the making of applications under section 6 for the registration of a multi-State cooperative society and the procedure in the matter of such applications.
(ii) the number of the applicants and the manner in which the order of refusal to register a multi-State cooperative society and its bye-laws shall be communicated under sub-section (2) of section 7;
(iii) the manner in which the order of refusal to register any amendment of the bye-laws shall be communicated under sub-section (4) of section 9 and section 18;
(iv) the procedure and conditions for change in the extent of the liability of a multi-State cooperative society under section 13;
(v) the matters in respect of which a multi-State cooperative society may make bye-laws and the procedure to be followed in making, altering and abrogating bye-laws under section 9 or section 18 and the conditions to be satisfied prior to such making, alteration or abrogation.
(vi) the conditions to be complied with under section 19 by persons applying for admission as members, for the election and admission of members and the payment to be made and the interest to be acquired before the exercise of the right of membership;
(vii) the number of individuals who may be admitted as members of the National Cooperative Union of India Limited, New Delhi as required by section 19 and their qualifications;
(viii) the withdrawal and expulsion of members and the payments, if any, to be made to members who withdraw or are expelled and the liability of past members or the estates of deceased members;
(ix) the votes of members, as required by section 22;
(x) the maximum number of shares of a multi-State cooperative society which may subject to the provisions of section 24, be held by a member;
(xi) the constitution and powers of a smaller body representing the general body under section 29.
(xii) general meeting of the members under section 30, the period within which such meeting be called and the procedure at such meetings and the powers to be exercised by such meetings;
(xiii) the proportion of individuals and multi-State cooperative societies in the constitution of the board of directors and the general body under section 32;
(xiv) the election of members of the boards under section 35 and nomination of members to such boards under section 41, the appointment, or election of officers and the powers to be exercised and the duties to be performed by the boards and other officers;
(xv) the restrictions and conditions subject to which honorarium may be paid under section 38 to the elected chairman or president of the board of directors for services rendered;
(xvi) the additional measures and acts which may be taken or, as the case may be, done by the board under section 42;
(xvii) the number of meetings of the board, the venue of such meetings and the number of committees or sub-committees for purposes of sections 43 and 46;
(xviii) the appointment and regulation of work entrusted to persons replacing the board in pursuance of section 48;
(xix) the constitution of a body of persons under section 50 for the preparation of a list of persons eligible for appointment to the posts of Chief Executive and other management posts in national cooperative societies and the amount of the maximum pay-scale applicable to such posts;
(xx) the recruitment, remuneration, allowances and other conditions of service of officers and other employees of national cooperative societies under section 50;
(xxi) prohibiting a multi-State cooperative society from electing a defaulting member, or a representative of defaulting member-society, on its board;
(xxii) the returns to be submitted by a multi-State cooperative society to the Central Registrar, the persons by whom and the form in which such returns shall be submitted and in case of failure to submit any such returns, the levy of expenses of preparing it.
(xxiii) the persons by whom and the form in which copies of entries in books of multi-State cooperative societies may be certified under section 56 and the charges to be levied for the supply of such copies;
(xxiv) the terms and conditions on which the Central Government may make share capital contribution or give financial or other assistance to multi-State cooperative societies under section 59 and the terms and conditions on which the Central Government may guarantee the payment of the principal or interest on debentures issued by multi-State cooperative societies or loans or deposits raised by them;
(xxv) the procedure to be followed in proceedings before the Central Registrar or other persons deciding disputes including the appointment of a guardian for a party to the dispute who is a minor or who, by reason of unsoundness of mind or mental infirmity, is incapable of protecting his interest, and the levy of expenses relating to such proceedings;
(xxvi) The mode in which the value of a deceased member's share or interests shall be ascertained and the nomination of a person to whom such share or interest may be paid or transferred;
(xxvii) the payments to be made and conditions to be complied with by members applying for loans, the period for which any loans may be made and the maximum amount which may be lent to any members;
(xxviii) the formation and maintenance of reserve funds and other funds under section 61 and the objects to which such funds may be applied, and the investment of any funds under the control of a multi-State cooperative society under section 62;
(xxix) the conditions under which profits may be distributed under section 61 to the members of a multi-State cooperative society and the maximum rate of dividend which may be paid by multi-State cooperative societies;
(xxx) the prohibitions and restrictions subject to which multi-State cooperative societies may, under section 65, transact business with persons who are not members;
(xxxi) the accounts and books to be kept by a multi-State cooperative society and the audit of such accounts and the charges, if any, to be made for such audit under section 67 and the periodical publication of a balance sheet showing the assets and liabilities of a multi-State cooperative society;
(xxxii) the calculation and writing off of bad debts by multi State Cooperative societies;
(xxxiii) the appointment of persons for settlement of disputes under section 76;
(xxxiv) the procedure to be followed by a liquidator appointed under section 80 in respect of provisions of section 81.
(xxxv) the manner in which the surplus assets may be divided amongst the members of the multi-State cooperative society under section 82;
(xxxvi) the procedure for execution of decisions under section 85;
(xxxvii) the procedure to be followed in presenting and disposing of appeals under section 90;
(xxxviii) the issue and service of processes and for proof of service thereof;
(xxxix) the manner of effecting attachment;
(xl) the custody, preservation and sale of property under attachment;
(xli) the investigation of claims by persons other than the defaulter to any right or interest in the attached property, and the postponement of sale pending such investigation;
(xlii) the immediate sale of perishable articles;
(xliii) the inspection of documents in the office of the Central Registrar or of any other officer or authority and the levy of fees for granting certified copies of the same;
(xliv) the manner in which funds may be raised by multi-State cooperative society or a class of multi-State cooperative societies by means of shares or debentures or otherwise and the quantum of funds so raised;
(xlv) the procedure under section 95 for reconstitution and reorganisation of societies which become multi-State cooperative societies consequent on reorganisation of a State;
(xlvi) the method of communicating or publishing any decision or order required to be communicated or published under this Act or the rules;
(xlvii) the manner and the periodicity or returns of pending cases of registration of multi-State cooperative societies and amendments of bye-laws to be sent by the Central Registrar to the Central Government;
(xlviii) any other matter which is required to be, or may be prescribed.
(3) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in sessions for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification to 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 or anything previously done under that rule.
110. Repeal-The Multi-unit Cooperative Societies Act, 1942 is hereby repealed.
Cooperative Principles
1. Membership of a multi-State cooperative society (hereafter in this Schedule referred to as the society) should be voluntary and open, without any social, political, or religious discrimination, to all persons who can make use of its services.
2. In a society other than that with institutional membership, individual member should enjoy equal rights of voting-one member, one vote.
3. (i) Surplus or savings, if any, arising out of the operations of the society belong to the society as a whole and no individual member has a claim to the surplus. (ii) The surplus should be utilised for all or any of the following purposes, namely:-
(a) providing for development of the business of the society;
(b) providing services for the common enjoyment of members;
(c) distribution among the members in proportion to their transactions with the society.
4. The society should undertake education of its members, office-bearers and employees and the general public regarding the principles and practice of cooperation.
5. The society should actively cooperate in every practical way with other cooperative societies at local, national or international levels.
6. The share capital of a society shall receive strictly limited rate of interest (that is to say dividend).
7. The affairs of a society should be administered by the management in accordance with democratically expressed will of the members.
8. The management of the society is accountable to its own members.
Cooperative Societies and their Rules
MINISTRY OF AGRICULTURE & DEVELOPMENT
G.S.R.738(E)-In exercise of the powers conferred by section 109 of the Multi-State Cooperative Societies Act 1984 (51 of 1984), the Central Government hereby make the following rules, namely:-
PRELIMINARY
1. Short title and commencement-
(1) These rules may be called the Multi-State Cooeprative Societies (Registration, Membership, Direction and Management, Settlement of Disputes, Appeal and Revision) Rules, 1985
(2) Definitions-In these rules, unless the context otherwise requires:-
(i) "Act" means the Multi-State Cooperative Societies Act, 1984 (51 of 1984).
(ii) "Form" means a form appended to these rules.
(iii) "General meeting" means a meeting of the general body including a representative general body referred to in section 29.
(iv) "Section" means a section of the Act.
(v) "Schedule" means Schedule appended to these rules.
(vi) Words and expressions defined in the Act and used but not defined in these rules shall have the meanings respectively assigned to them in the Act.
REGISTRATION
3. Application for registration-
(1) An application for registration of a multi-State cooperative society under sub-section(1) of section 6 shall be made in Form 1 and shall, subject to the provisions of sub-section (2) of section 6 and sub-rules (2) and (3) be signed by the applicant and be accompanied by:
(a) four copies of the proposed bye-laws of the multi-State cooperative society, duly signed by each of the persons who sign the application for registration;
(b) a list of persons who have contributed to the share capital, together with the amount contributed by each of them, and the entrance fee paid by them;
(c) a certificate from the bank or banks stating the credit balance in favour of the proposed multi-State cooperative society;
(d) a scheme showing the details explaining how the working of the multi-State cooperative society will be economically sound;
(e) certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Central Registrar may address of one of the applicants to whom the Central Registrar may address correspondence under the rules before registration and dispatch or hand over registration documents.
(2) Where any member of a multi-State cooperative society to be registered is a multi-State cooperative society or a cooperative society, the Chairman or Chief Executive of such multi-State cooperative society or cooperative society, as the case may be, shall be authorised by that board by a resolution, to sign the application for registration and bye-laws on its behalf, and a copy of such resolution shall be appended to the application.
(3) Where any member of multi-State cooperative society to be registered is a Government company, a corporate body or a society registered under the Societies Registration Act, 1860(21) of 1860 such member shall duly authorise any person to sign the application for registration and the bye-laws on its behalf and a copy of such resolution giving such authority shall be appended to the application.
(4) A copy of the resolution indicating the name of one or more applicants, who are authorised to make alterations or additions to the proposed bye-laws submitted with the application, as may be suggested by the Central Registrar, shall be submitted.
(5) The application shall either be sent by registered post or delivered by hand to the Central Registrar.
4. Registration-
(1) On receipt of an application under rule3, the Central Registrar shall enter particulars of the application in the register of applications to be maintained in Form II, give a serial number to the application and issue a receipt in acknowledgement thereof.
(2) If the Central Registrar is satisfied that the proposed multi-State cooperative society has complied with the requirements of the Act and the rules he may register the society and its bye-laws.
(3) Where the Central Registrar registers a multi-State cooperative society, he shall issue to the said society a certificate of registration signed by him and bearing his official seal containing registration number and date of registration of the said society, The Central Registrar shall also issue, alongwith the certificate of registration, a certified copy of the Bye-laws, as approved and registered by him, which shall be the registered bye-laws of the said society for the time being in force.
5. Extension of period of registration of societies and bye-laws, etc.-The Central Government may, on the report of the Central Registrar, allow such further period not exceeding six months for registration of-
(i) the multi-State cooperative society under proviso to sub-section (3) of section 7;
(ii) the amendment of bye-laws of the multi-State cooperative society under proviso to sub-section (2) of section 9; and
(iii) the amend of bye-laws extending the jurisdiction of the cooperative society under proviso to sub-section(2) of section 18.
6. Refusal of registration-Where the Central Registrar refuses to register a multi-State cooperative society under sub-section(2) of section 7, he shall communicate the order of refusal together with reasons therefor to the person authorised under clause(e) of sub-rule (1) of rule 3 to the said society.
7. Subject matter of bye-laws-The multi-State cooperative society may make bye-laws in respect of the following matters-
(i) the name and registered address of the multi-State cooperative society and its branches;
(ii) the area of operation;
(iii) the objects for which the multi-State cooperative society is established and the purpose for which its funds may be applied;
(iv) the privileges, rights, duties and liabilities of members including nominal members: Provided that the nominal members shall not be entitled to any share in any form whatsoever in the assets or profits of the multi-State cooperative society and shall not have a right to vote:
(vi) the consequence of default in payment of any sum due by members;
(vii) the procedure for withdrawal, removal or expulsion of members;
(viii) the manner in which and the limits upto which the funds of the society may be raised the maximum share capital which any member may hold and the purpose to which the funds may be utilised;
(ix) the mode of appointment and removal of the directors and other officers of the multi-State cooperative society and the duties and powers of the board;
(x) the mode of convening and conducting annual and special meetings of the general body and of the board, issue of notices and the business which may be transacted thereat;
(xi) the disposal of net profits;
(xii) the manner of making, altering and abrogating bye-laws;
(xiii) the powers, duties and functions of the Chairman or President and his removal on his losing support of the majority;
(xiv) the powers and duties of the Chief Executive in addition to those mentioned in section 45;
(xv) the authorisation of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the multi-State cooperative society;
(xvi) the mode of custody and investment of funds;
(xvii) the mode of keeping the accounts;
(xviii) the strength of the board;
(xix) the manner in which penalty may be levied on a member found guilty of breach of the bye-laws;
(xx) the appointment of a provisional board, wherever necessary;
(xxi) the manner of sending notices;
(xxii) the formation or use of reserve fund;
(xxiii) the purpose for which surplus if any shall be utilised in the event of the winding-up of the multi-State cooperative society;
(xxiv) the conduct of elections to the board and other bodies of a multi-State cooperative society including the number of member to be elected by different constituencies and appointment of returning officers;
(xxv) the procedure to be followed in cases of withdrawal, ineligibility and death of members;
(xxvi) the condition, if any, under which the transfer of share or interest of a member may be permitted;
(xxvii) the method of appropriating payments made by members from whom money are due;
(xxviii) the constitution and maintenance of various funds to be maintained under the provisions of the Act or rules;
(xxix) the constitution of a representative general body consisting of delegates or members of the multi-State cooperative society and the method of election of such delegates to exercise the powers of the general body;
(xxx) the mode of conducting business such as manufacture, purchase, stock taking and other allied matters;
(xxxi) In the case of cooperative banks and multi-State thrift and credit societies;
(a) the maximum loan admissible per member;
(b) the maximum rate of interest on loans to members;
(c) the conditions on which loans may be granted to members;
(d) the procedure for grant of loans and advances and for the grant of extension of time and for repayment of such loans, advances, etc;
(e) the circumstances under which a loan may be recalled.
8. Amendment of bye-laws-
(1) the amendment to the bye-laws of a multi-State cooperative society may be made by a resolution passed by a two-third majority of the members present and voting at general meeting of the society.
(2) No such resolution shall be valid unless notice of the proposed amendment has been given to the members of the multi-State cooperative society in accordance with the bye-laws.
(3) In every case in which a multi-State cooperative society proposes to amend its bye-laws, an application shall be made to the Central Registrar together with:
(a) a copy of the resolution referred to in sub-rule(1)
(b) the particulars indicating the date of the general meeting at which the amendments were made, the number of days notice given to convene the general meeting, the total number of members on the date of such meeting, the number forming the quorum, the number of members present at the meeting, the number exercising the right of voting and the number voting for the amendment;
(c) a copy of the relevant bye-laws in force with the amendment proposed to be made together with reasons justifying such amendments
(d) four copies of the text of the bye-laws as they would stand after the amendment, signed by the officers duly authorised in this behalf by the board of the multi-State cooperative society;
(e) a copy of the notice given to the members of the multi-State cooperative society and the proposal to amend the bye-laws;
(f) a certificate signed by the presiding authority of the general meeting that the procedure specified in sub-rule,(I) and sub-rule(2) and in the bye-laws, has been followed; and
(g) any other particulars that may be required by the Central Registrar in this behalf.
(4) Every such application shall be made within sixty days from the date of the general meeting at which such amendment was passed.
(5) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi-State cooperative society he shall pass an order of refusal together with the reasons there for and communicate the same by registered post to the Chief Executive of the multi-State cooperative society within seven days from the date of order of refusal.
(6) The procedure outlined above in this rule shall apply to the amendment of the bye-laws of cooperative society desiring to convert itself into a multi-State cooperative society as per provisions of section 18.
9. Maintenance of registration file by the society-
(1) Every multi-State cooperative society shall maintain at its registered address a registration file containing:
(a) the certificate of registration;
(b) the registered bye-laws;
(c) all registered amendments to the bye-laws alongwith the certificates of registration of amendments;
(d) a copy of the Act and the rules.
(2) The registration file shall be kept open for inspection at all times during working hours to the Central Registrar or any other officer authorised by him or any member of the multi-State cooperative society.
10. Change in name of multi-State cooperative society-
(1) The name of a multi-State cooperative society may be changed under section 11 so, however, that it does not refer to any caste of religious denomination and is not inconsistent with the objects of the multi-State cooperative society.
(2) Every change in the name of the multi-State cooperative society shall be made by an amendment of its bye-laws.
(3) After the change in the name is approved by the Central Registrar the multi-State cooperative society shall send the original registration certificate for amendment to the Central Registrar who shall return the same to the multi-State cooperative society duly amended.
MEMBERS OF MULTI-STATE COOPERATIVE SOCIETIES AND THEIR RIGHTS AND LIABILITIES
11. Conditions to be complied with for admission for membership-
(1) No person shall be admitted as a member of a multi-State cooperative society unless:
(a) he has applied in writing in the form, if any, laid down by the multi-State cooperative society or in the form specified by the Central Registrar, if any, for membership;
(b) his application is approved by the board of the multi-State cooperative society;
(c) he has purchased the minimum number of shares and paid the value thereof in full or in part in such calls as may be laid down in the bye-laws of the multi-State cooperative society;
(d) he has fulfilled all other conditions laid down in the Act, the rules and the bye-laws;
(e) in the case of a multi-State cooperative society or a cooperative society or the national cooperative society or any other corporation owned or controlled by the Government or any Government or any Government company or body of persons whether incorporated or not, the application for membership shall be accompanied by a resolution authorising it to apply for such membership.
(2) No person shall be eligible for admission as a member of a multi-State cooperative society if he:
(a) has not attained the age of 18 years;
(b) has been adjudged by a competent court to be an insolvent or an undischarged insolvent;
(c) has been sentenced for any offence, other then offence of a political character or an offence not involving moral turpitude and dishonesty and a period of five years has not elapsed from the date of expiry of the sentence.
(3) Notwithstanding anything contained in these rules or the bye-laws of the multi-State cooperative society, if a member becomes or has already become subject to any disqualifications specified in sub-rule (2) he shall be deemed to have ceased to be a member of the society from the date when the disqualification was incurred.
(4) No individual being a member of a primary level multi-State cooperative society or a multi-State credit society, or a multi-State urban cooperative bank, shall be the member of any other multi-State cooperative society or cooperative society of the same class without the general or special permission of the Central Registrar and where an individual has become a member of two such cooperative societies aforesaid, than either or both of the societies shall be bound to remove him from membership on written requisition from the Central Registrar to that effect.
(5) No multi-State cooperative society shall admit members within thirty days prior to the date of the meeting of its general body.
12. Individual members in the National Cooperative Union of India-The ex-presidents of the National Cooperative Union of India Limited, New Delhi who have served their full term of office and other individuals not exceeding 15 in number with the knowledge and experience in the field of cooperation may be admitted as members of the National Cooperative Union of India Limited, New Delhi, provided that: The ex-President and other individuals admitted as members shall not be eligible to vote or contest in any election in the National Cooperative Union of India Limited.
13. Refund of shares-The total refund of share capital of a multi-State cooperative society in any cooperative year shall not exceed 10 per cent of the paid-up share capital of the multi-State cooperative society on the last day of the cooperative year immediately preceding.
14. Nomination of heir-
(1) For the purpose of transfer of his share or interest under sub-section (1) of section 27, a member of a multi-State cooperative society may nominate a person to whom in the event of his death, his share or interest shall be transferred. Such member may, from time to time, revoke or vary such nomination.
(2) A nomination made by a member shall not be valid and shall not in the event of death of the member have effect unless:
(a) it is made in writing and is signed by the member in the presence of two witnesses attesting the same;
(b) it is recorded in the books of multi-State cooperative society, kept for the purpose.
15. Procedure of ascertaining the value of share or interest of a member-Where the member of a multi-State cooperative society ceases to be a member thereof, the sum representing the value of his share or interest in the capital of the multi-State cooperative society to be paid to him or his nominee, or heir or legal representative, as the case may be shall be ascertained in the following manner, namely:
(i) In the case of a multi-State cooperative society with unlimited liability, it shall be the actual amount received by the multi-State cooperative society in respect of such share or interest;
(ii) In the case of a multi-State cooperative society with limited liability, it shall be the amount arrived at by the valuation based on the financial position of such society as shown in the last audited balance sheet preceding cessation of membership; Provided that the amount so ascertained shall not exceed the actual amount received by the multi-State cooperative society in respect of such share or interest.
16. Restriction on holding of shares-No member referred to in clauses (a) and (b) of sub-section 1 of section 19 shall hold more than one-fifth of the share capital of the multi-State cooperative society or have or claim any interest in the shares of the multi-State cooperative society exceeding ten thousand rupees, whichever is less.
17. Share not to be hypothecated-The shares of a multi-State cooperative society shall not be hypothecated to that society or any other multi-State cooperative society by the members as a security for a loan.
18. Prohibition on admission of members and transfer of shares on the eve of general meeting-
(1) No multi-State cooperative society shall admit members or approve the transfer of shares within thirty days prior to the date fixed for the general body meeting.
(2) Any person addressed as member and any person in whose favour the transfer of share have been approved in contravention of this rule shall not have the right to vote at the said general meeting.
19. Disqualification of a defaulting member-A member of a multi-State cooperative society or a representative of defaulting member society shall not be eligible to seek election to any office in, or continue, as a member of the board of such multi-State cooperative society if he or the society of which he is the representative, commits default in the payment of annual subscription or other sums due to such multi-State cooperative society. A member, or a representative of a defaulting member society, if holding any office in a multi-State cooperative society, shall forfeit the right to hold such office with effect from the date on which he, or the society of which he is the representative, becomes defaulter as per bye-laws of the multi-State cooperative society or as determined by the board of directors of the multi-State cooperative society.
DIRECTION AND MANAGEMENT OF MULTI-STATE COOPERATIVE SOCIETIES
20. Annual general meeting-Every multi-State cooperative society shall hold the annual general meeting of its members (referred to in section 30) within six months of the close of the cooperative year.
21. Constitution of smaller general body-
(1) Without prejudice to the provision of sub-section (3) of section 29, a multi-State cooperative society with a membership exceeding one thousand may provide in its bye-laws for the constitution of a smaller body. The smaller general body so constituted shall exercise such powers as may be specified in the bye-laws of the multi-State cooperative society.
(2) The bye-laws of such society may specify the principle or the basis for constitution of a representative general body and procedures thereto.
22. Interim board and general meeting for first election-
(1) The board of directors selected by the applicants for the registration of the multi-State cooperative society shall hold office till the directors are elected in the first general meeting of the multi-State cooperative society.
(2) The first general meeting for this purpose shall be held with six months of the registration of the multi-State cooperative society.
23. Notice for general meeting-Annual general meeting of a multi-State cooperative society may be called by giving not less than fourteen days notice in writing.
(2) Special general meeting of a multi-State cooperative society may be called by giving not less than seven days notice in writing.
(3) When a general meeting is called by the Central Registrar under the second proviso to sub section (1) of section 30, he may determine:-
(i) the period of notice of such meeting which shall not be less than seven days;
(ii) the time and place of such meeting and
(iii) the subjects to be considered in such meeting.
The Central Registrar or any person authorised by him may preside over such meeting.
(4) The notice of general meeting shall be accompanied by a copy each of the audited balance sheet, profit and loss account, together with the auditor s report thereon relating to the proceeding year and the report of the board.
24. Quorum at a general meeting-
(1) Unless otherwise provided in the bye-laws, the quorum for a general meeting shall be one-fifth of the total number of members of the multi-State cooperative society.
(2) No business shall be transacted at any general meeting unless there is a quorum at the time when the business of the meeting is due to commence.
(3) If within half-an hour from the time appointed for the meeting a quorum is not present, the meeting shall stand adjourned: Provided that a meeting which has been called on requisition of the members shall not be adjourned but dissolved.
(4) If at any time during the meeting sufficient number of members are not present to form the quorum the Chairman or the member presiding over the meeting on his own, or on his attention being drawn to this fact, shall adjourn the meeting and the business that remains to be transacted at this meeting, if any, shall be disposed of in the usual manner at the adjourned meeting.
(5) Where a meeting is adjourned under sub-rule (3) or sub-rule (4) the adjourned meeting shall be held either on the same day or on such date, time and place as may be decided by the Chairman or the member presiding over the meeting.
(6) No business shall be transacted at any adjourned meeting other than the business on the agenda of the adjourned meeting.
(7) No quorum shall be necessary in respect of an adjourned general meeting.
25. Voting in general meeting-
(1) All resolutions which are put to vote at the general meeting shall be decided by a majority of the members present and voting unless otherwise required under the Act, these rules or the bye-laws of the multi-State cooperative society. Voting shall be by show of hands unless a poll is demanded by at least ten members present at the meeting. If no poll is demanded, a declaration by the Chairman/President of such meeting that a resolution has been carried or lost and an entry to that effect in the minutes of the proceedings shall be conclusive proof of the fact that such resolution has been duly carried or lost.
(2) If a poll is demanded, the votes shall be taken by ballot as may be decided by the Chairman of the meeting unless otherwise specified in the bye-laws in this behalf, and the result of the poll shall be deemed to be the decision of the general meeting regarding the resolution over which the poll is demanded.
(3) When a poll is taken, the number of members voting for or against a resolution over which the poll is demanded.
(3) When a poll is taken, the number of members voting for or against a resolution shall be recorded in the minutes of the proceedings.
(4) In the case of equality of votes whether on a show of hands or on a poll, the Chairman of the meeting at which show of hands takes place or the poll is taken, shall have a second or casting vote.
26. Minutes of the general meeting-Minutes of the proceedings of the general meeting shall be entered in a minutes book kept for the purpose and shall be signed by the Chairman of the meeting. The minutes so signed, shall be an evidence of the correct proceedings of that meeting.
27. Procedure for conduct of elections-
(1) Notwithstanding anything contained in these rules and without prejudice to the generality of the powers of the Central Government under sub-section (1) of section 35, the election of the members of the board of directors of the national cooperative society specified in the Second Schedule to the Act and such other multi-State cooperative society or class of multi-State cooperative societies as the Central Government may, by general or special order, notify, shall be conducted by such returning officer or officers as may be appointed by the Central Registrar in this behalf. The election in such societies shall be conducted in the manner specified in the Schedule.
(2) Notwithstanding anything contained in sub-rule(1) where a requisition to appoint a returning officer to conduct an election is received from not less than 1/5 of the total number of members eligible to vote in a multi-State cooperative society sixty days in advance of the date for election, the Central Registrar shall appoint a returning officer to conduct election in the manner specified in the Schedule.
28. Election of office bearers-As soon as the members of the board have been elected the returning officer referred to in sub-rule(1) of rule 27 or the person presiding over the general meeting, as the case may be, shall, notwithstanding anything contained in the bye-laws of the multi-State cooperative society specifying the period of notice, convene a meeting of the newly elected members of the board for the purpose of election of the President/Chairman, Vice-President/Vice-Chairman or other elected office-bearers of the society, by whatever name they are called. Such a meeting of the board shall not be conducted unless a majority of the number of members of the newly constituted board, as per bye-laws, are present.
29. Custody of record of election conducted-After declaration of the result of election, the returning officer, (referred to under sub-rule(1) of rule 27 or the Chairman of the meeting, as the case may be shall hand over the ballot papers and records, if any, relating to the election of the members of the board of directors and the office bearers to the Chief Executive of the multi-State cooperative society in sealed cover. They shall be preserved by the Chief Executive of the society for a period of six months from the date of election or till such time a dispute or an appeal thereof regarding elections, if any, is disposed of, whichever is later, and shall thereafter be destroyed.
30. Restrictions and Conditions for payment of honorarium to the Chairman and the President. A multi-State cooperative society may provide in its bye-laws for the payment of honorarium to the elected Chairman or President of the board of directors, out of profits, in respect of specific services rendered by him, on such scale as may be laid-down in the bye-laws of such a society, but in no case exceeding the limit and terms and conditions hereunder referred to:
(a) that the society s financial position is sound;
(b) that for its recurring expenses it does not depend on grants or subsidies from the Central Government or the State Government; and
(c) that the honorarium to be paid, whether as a consolidated amount or in the shape of daily allowance in respect of the days of halt at the headquarters, in addition to the sitting fees in respect of board meeting as and when such meetings are held, is limited to rupees twenty-five thousands per year.
31. Central Government or State Government nominees on the board-
(1) Where the Central Government or the State Government has subscribed to the share capital of a multi-State cooperative society, or has guaranteed the repayment of principal and payment of interest on debentures issued by such society, or has guaranteed the repayment of principal and payment of interest on loans and advances to such society, or has provided grant or subsidy to such society, the Central Government or the State government as the case may be, or any other person authorised by the Central Government or the State Government, shall have the right to nominate on the board such number of persons not exceeding 3 or 1/3rd of the total number of members thereof, whichever is less.
(2) Notwithstanding anything contained in these rules, the bye-laws of a multi-State cooperative society may provide for the nomination by the Central or State Government of persons in excess of the limits referred to in sub-rule (1).
32. Additional measures and acts to be undertaken by the board-The board may take any of the measures or do any of the acts mentioned below as may be necessary or expedient for the purposes of carrying out its functions under the Act and the rules made thereunder:
(i) placing be fore the general body the annual report and the audit report;
(ii) Recommending the distribution of profits to the general body;
(iii) taking decisions on matters relating to withdrawals, transfer, retirement, refund or forfeiture of shares;
(iv) purchasing, selling, or otherwise acquiring or disposing of moveable property of such value as may be specified in the bye-laws;
(v) Laying down criteria for determining defaults by members;
(vi) determining the terms and conditions of collaboration with other cooperative societies and others;
(vii) sanctioning of contracts of any values, unless otherwise specified in the bye-laws of a multi-State cooperative society;
(viii) appointment of trustee or trustees, attorney or attorneys, agent or agents for the business of the multi-State cooperative society;
(ix) acceptance or rejection of resignation from the members of the board.
33. Meetings of the board-
(1) The board shall meet at least once in every quarter, provided that the total number of the meetings of the board shall not ordinarily exceed six in a year.
Provided further that this provision will not apply to multi-State thrift and credit societies.
(2) The meeting of the board of the multi-State cooperative society shall ordinarily be held at the registered office of such society.
34. Committees of the board-
(1) The board of a multi-State cooperative society may constitute an Executive Committees and other committees or sub-committee as may be considered necessary.
(2) Besides the Executive Committee, the number of other committees or sub-committees referred to in subsection (1) of section 46 shall not exceed two: Provided that the board may with the approval of the Central Registrar constitute more than two committees.
35. Constitution of National Cooperative Societies Selection Committee-
(1) The Central Government shall constitute a body to be called the National Cooperative Societies Selection Committee (hereinafter referred to as the Selection Committee) consisting of the following persons:
(i) The Secretary to the Government of India Department of Agriculture and Cooperation Chairman
(ii) The Additional Secretary to the Government of India Department of Agriculture and Cooperation dealingwith cooperation Member
(iii) Chairman of two national cooperative societies to be nominated by the Central Government Member
(iv) One expert in the management to be nominated by the Central Government Member
(v) The Managing Director National Cooperative Development Corporation Member
(vi) Central Registrar of Cooperative Societies Member Secretary
(2) The Selection Committee shall prepare list of persons eligible for appointment to the post of the Chief Executive and other managerial posts in the national cooperative societies, the maximum pay scale of which exceeds rupees four thousand per month in the manner hereinafter provided.
(3) The Central Registrar shall, on the requisition received from the national cooperative society, convene the meeting of the Selection Committee for the purpose of preparation of list for the appointments to the post or posts for which the requisition has been received.
(4) The Selection Committee shall,-
(a) take appropriate steps to advertise, circulate or otherwise call for the names for the posts referred to in sub-rule(2);
(b) screen the names received and prepare list of persons, after interview if necessary, suitable for appointment for the said posts in order of merit and forward it to the Central Government for its onward transmission to the concerned national cooperative society: Provided that in the case of the existing Chief Executive or persons employed in other managerial posts in the national cooperative society on the date of the coming into force of these rules, who are in regular employment of the society, no such reference to the Selection Committee will be necessary: Provided further that in the case of the Chief Executives or persons employed in other managerial post who are on deputation with the national cooperative society on the date of the enforcement of these rules, a reference to the Selection Committee shall be necessary on the expiry of the terms of deputation of such Chief Executives or persons.
(5) The national cooperative society shall appoint the persons to the post of the Chief Executive and other managerial posts mentioned in sub-rule (2) from the list of persons recommended by the Selection Committee.
(6) The Selection Committee may coopt two experts at the time of selection of persons according to the requirements of posts or category of posts for which the list of persons is to be prepared.
SETTLEMENT OF DISPUTES
36. Procedure in proceeding before Central Registrar-
(1) A reference to the Central Registrar of any dispute under section 74 shall be in writing. Every such reference shall be accompanied with a fee of rupees ten for the money claims not exceeding rupees fifty in all other cases.
(2) On receipt of a reference under sub-rule(1) the Central Registrar may elect to decide the dispute himself or refer it for disposal to any other person who has been invested with powers of the Central Registrar under section 76 by the Central Government.
(3) The Central Registrar or other person deciding the dispute shall record a brief note of the evidence of the parties and witnesses who appear before him and upon the evidence so recorded and after consideration of any documentary evidence produced by the parties, a decision shall be given in accordance with justice, equity and good conscience by the Central Registrar or other person deciding the dispute. The decision given shall be in writing. In the absence of any party duly summoned to attend, the dispute may be decided exparte. Exparte decision may, on sufficient cause for non-attendance being shown, be set aside by the Central Registrar or other person deciding the dispute, and the dispute ordered to be retaken on the register of disputes and disposed of: Provided that no application for setting aside an exparte decision shall lie unless made within thirty days from the date of such decision and the party for whose non-attendance such decision was made had been duly served with the notice, or in other cases within thirty days from the date of knowledge of such decision having been made.
(4) The decision shall be communicated to the parties by,
(i) pronouncement of the decision; or
(ii) registered post to any party which may be absent on the date the decision is given.
(5) The Central Registrar or the person deciding the dispute, shall have power to appoint or remove a guardian for the party to the dispute, if any such party is a minor or a person with unsound mind or mental infirmity, and is incapable of protecting his interest.
(6) A duly certified copy of the decision shall, on application, be given to the parties to the dispute by the Central Registrar or the person deciding the dispute, on payment of copying charges at the rate of rupees one per page.
37. Appeals against order of Central Registrar-For the purpose of clause (a) of sub-section (2) of section 90 of the Act, an appeal against any decision or order shall be made if the decision or order was made by:-
(a) the Central Registrar appointed under sub-rule (1) of section 4 of the Act, to the Secretary to the Government of India in the Department of Agriculture and Cooperation;
(b) any officer of the Central Government or any officer of the State Government of the rank of Registrar on whom powers of the Central Registrar have been conferred under sub-section (2) of section 4 of the Act, to the Additional Secretary to the Government of India in the Department of Agriculture and Cooperation;
(c) any other officer of the State Government on whom powers of Central Registrar have been conferred under sub-section(2) of section 4 of the Act, to the Chief Director (Cooperation) in the Ministry of Agriculture and Cooperation.;
38. Procedure regarding appeals and application for revision-
(1) An appeal under subsection (2) of section 90 or an application for revision under section 92 shall be either presented in person or sent by registered post to the appellate or revising authority.
(2) The appeal or the application for revision shall be in the form of a memorandum and shall be accompanied by the original or certified copy of the order appealed from or sought to be revised.
(3) Every appeal or application for revision shall:-
(a) specify the name and address of the appellant or applicant and also the name and address of the respondent, as the case may be;
(b) state by whom the order appealed from or sought to be revised was made;
(c) set forth concisely and under distinct heads, the grounds of objection to the order appealed from or sought to be revised together with a memorandum of evidence;
(d) State precisely the relief which the appellant or the applicant claims; and
(e) give the date of order appealed from or sought to be revised;
(4) Where,-
(a) an appeal under sub-section(2) of section 90 is preferred after the expiry of sixty days specified in the said sub-section; or
(b) an application for revision under sub-section(1) of section 92 is made after the expiry of ninety days from the date on which the decision or order to which the application relates is communicated to the applicant; it shall be accompanied by a petition supported by an affidavit setting forth the facts on which the appellant or the applicant relies, to satisfy the appellate or revising authority that he had sufficient cause for not preferring the appeal of the application for revision within the period mentioned in clauses (a)and (b).
(5) On receipt of the appeal or the application for revision, the appellate or revising authority shall as soon as possible examine it and ensure that:
(a) the person presenting the appeal or the application has the locus standi to do so;
(b) it is made within the prescribed time limit; and
(c) it conforms to all the provisions of the Act and these Rules.
(6) The appellate or revising authority may call upon the appellant or the applicant for revision to remedy the defects if any, or furnish such additional information as may be necessary, within a period of fifteen days of the receipt of the notice to do so. If the appellant or the applicant for revision fails to remedy the defects or furnish the additional information called for within the said period, the appeal or the revision petition may be dismissed.
(7) The appellate or revising authority may, before passing orders under section 90 or under section 92 obtain from any subordinate officer such further information in regard to the enquiry or the proceedings for the purpose of verifying the regularity of such proceedings or the correctness, legality or propriety of any decision passed or order made therein. The appellate or revising authority may also call for and obtain from the parties connected with such enquiry or proceedings such information as is necessary with reference to the examination of the records of enquiry or proceedings and the information obtained from the subordinate officer.
(8) The appellate or revising authority shall on the basis of the enquiry conducted and with reference to the records examined, pass such order on the appeal or on the application for revision as may seem just and reasonable.
(9) Every order of the appellate or revising authority under sub-section (2) of section 90 or 92 shall be in writing and it shall be communicated to the appellant or applicant and to such other parties as in the opinion of that authority are likely to be affected by the decision or order and to the officer concerned against whose order the appeal of the application for revision was made.
39. Application for review-
(1) Every application under section 93 shall be in the form of a memorandum setting forth concisely and under distinct heads the new and important facts which after the exercise of the due diligence, were not then within the knowledge of the applicant or could not be produced by him when the order was made or mistake or errors apparent on the face of the record or order reasons on the basis of which review is sought. It shall be accompanied by a memorandum of evidence.
(2) The application shall be accompanied by the original or a certified copy of the order to which the application relates.
(3) No application for review shall be entertained unless it is accompanied by such additional number of copies as there are parties to the original order.
(4) The application shall, so far as it may be necessary, be disposed of by the appellate authority in such manner as may be deemed fit, provided that no order prejudicial to any person shall be passed unless such person has been given an opportunity of making his representation.
THE MULTI-STATE COOPERATIVE SOCIETIES RULES, 1985
(Privileges, Properties and Funds, Accounts, Audit, Winding up and Execution of Decrees, Orders and Decisions) Rules, 1985
GSR 812(E).-In exercise of the powers conferred by section 109 of the Multi-State Cooperative Societies Act, 1984 (51 of 1984), the Central Government hereby makes the following rules, namely:
PRELIMINARY
1. Short title and extent-
(1) These rules may be called the Multi-State Cooperative Societies (Privileges, Properties and funds, Accounts, Audit, Winding up and Execution of Decrees, Orders and Decisions) Rules, 1985.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions-In these rules, unless the context otherwise requires,
(i) "Act" means the Multi-State Cooperative Societies Act, 1984 (51 of 1984);
(ii) "authorised officer" means an officer authorised by the Central Government for the purpose of Section 95;
(iii) "decree" means any decree of a civil court and includes any decision or order referred to in section 85;
(iv) "decree holder" means any person holding a decree as defined in clause (iii);
(v) "defaulter" means any multi-State cooperative society, any cooperative society, ember or any other person committing default;
(vi) "form" means a Form appended to these rules;
(vii) "general meeting" means a meeting of the general body including a representative general body referred to in section 29;
(viii) "Judgement debtor" means any multi-State cooperative society against which or any person against whom a decree has been obtained;
(ix) "recovery officer" means any person authorised to exercise the powers of the Central Registrar under section 85;
(x) "sale officer" means a person authorised by the Central Registrar, by general or special order, to attach and sell the property of judgement-debtor or to execute any decree by attachment and sale of property;
(xi) "section" means a section of the Act;
(xii) words and expressions defined in the Act and used but not defined in these rules shall have the meanings respectively assigned to them in the Act.
PRIVILEGES, PROPERTIES AND FUNDS OF MULTI-STATE COOPERATIVE SOCIETIES
3. Certifying copies of entries in books-
(1) For the purpose specified in sub-section (1) of section 56, a copy of any entry in a book of a multi-State cooperative society regularly kept in the course of its business shall be certified-
(i) by the Chief Executive of the society or any other member or employee authorised by the bye-laws of the society;
(ii) where an order has been passed under section 48 superseding the board and appointing an administrator or any other officer authorised by him; and
(iii) where an order has been passed under sub-section (1) of section 80 appointing a liquidator of the multi-State cooperative society, by the liquidator.
(2) Every certified copy shall bear the seal of the multi-State cooperative society.
4. Contribution towards Cooperative Education Fund-
(1) Every multi-State cooperative society shall credit a sum calculated at one percent of its net profits every year as contribution to the cooperative education fund maintained by the National Cooperative Union of India Limited, New Delhi. The cooperative education fund shall be administered by a committee nominated for that purpose consisting of the following members:
(i) The President of the national Cooperative Union of India Ltd. New Delhi Chairman
(ii) The Central Registrar Member
(iii) The Financial adviser to the Department of Agriculture & Cooperation in the Ministry of Agriculture Member
(iv) Two representatives of the multi-State cooperative societies to be nominated by the Central Government for every two years Members
(v) The Director General, National Council for Cooperative Training, New Delhi Member
(vi) The Director, Vaikunth Mehta national Institute of Cooperative Management, Pune
(2) The cooperative education fund shall be utilised for the purposes connected with the education of members and human resources development for cooperatives.
5. Disposal of net profits-The net profits of every multi-State cooperative society shall be disbursed or utilised subject to the following terms and conditions:
(a) No dividend shall be declared or paid except from out of the net profits and shall de shall be decided by the Board.
(b) No dividend shall be declared or paid while a claim due from the multi-State cooperative society to a depositor or lender remains unsatisfied.
(c) No donation made by the multi-State cooperative society out of the net profits of any year shall exceed rupees five lakhs.
6. Investment of funds-A multi-State cooperative society may invest or deposit its funds in any one or more of the following modes:-
(i) any mode provided in clauses (a) to (e)of section 62;
(ii) any post office saving bank;
(iii) any savings scheme launched by the Central or the State Government;
(iv) the shares of a corporation or other body corporate in which the Central or the State Government or both hold more than fifty percent of the shares; and
(v) the debentures floated by a corporation or a body corporate if such debentures are guaranteed by the Central or the State Government or by the Reserve Bank of India.
7. Objects and investment of reserve fund-
(1) Every multi-State Cooperative society shall maintain a reserve fund to meet any one or more of the following objects:-
(i) unforeseen losses;
(ii) claim of the creditors of the society which cannot be otherwise met; and
(iii) such other financial needs in times of special scarcity.
(2) Every multi-State cooperative society may with the permission of the Central Registrar invest or deposit its reserve funds in:-
(i) acquisition or purpose of land and building and construction of building for:
(a) its office, staff and equipment
(b) installation or operation of its machinery or plant;
(ii) purchase of machinery or plant which is required for its main business;
(iii) acquisition or purchase of land building, and construction of buildings for the purposes mentioned in clause (i)(a) and also for the benefit of its members in accordance with the provisions of its bye-laws; and
(iv) its own business.
(3) The reserve fund of a multi-State cooperative society shall be indivisible and no member shall have any claim or a share in it.
(4) No multi-State cooperative society whose reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise employ such fund except with the sanction of the Central Registrar previously obtained.
(5) The utilisation of the reserve fund for the objects mentioned in sub rule (1) shall be subject to the condition that any amount drawn shall be reimbursed from the profits accruing in subsequent cooperative year or years as directed by the Central Registrar. The Central Registrar may, however, having regard to the special circumstances of the society, permit that the reserve fund drawn and untilised for the objects mentioned under clauses (ii) and (iii)of sub-rule(1) may not be reimbursed wholly or partially as he may direct.
(6) (a) In the case of winding up of a multi-State cooperative society, the reserve fund and the other funds of the multi-State cooperative society shall be applied first in discharge of the liabilities of the multi-State cooperative society in accordance with the priority specified in items (i) to (vi) below:-
(i) salary and wages or other payments, if any, due to the employees of the multi-State cooperative society;
(ii) security deposits of staff, if any;
(iii) borrowings held from Government or on the guarantee of Government, if any;
(iv) deposits of non-members, if any;
(v) loans, if any; and
(vi) deposits of members, if any.
(b) The balance, if any, after discharging the liabilities mentioned in clause (a) shall be applied to the re-payment of the paid-up share capital and thereafter to the payment of dividend where it has not been paid.
(c) Notwithstanding anything contained in clause (b), no dividend shall be paid if the bye-laws of the multi-State cooperative society do not provide for payment of dividend.
(7) Any surplus remaining after payments mentioned in sub-rule (6) shall be applied by the liquidator, after consulting members, for contribution to National Defence Fund or to Cooperative Education Fund referred to in rule 4 or to any other charitable purpose or local objects of public utility subject to the approval of the Central Registrar.
8. Writing off of bad debts and losses-All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts, by the auditor appointed under section 67, shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve fund and the share capital of the multi-State Cooperative society. All other dues and accumulated losses or any other loss sustained by the multi-State cooperative society which cannot be recovered and have been certified as irrecoverable by the auditor may be written off against the Reserve fund of the multi-State cooperative society;
Provided that:
(a) no bad debts or losses shall be written off without the sanction of the general body;
(b) before any such bad debts or losses are written off, the multi-State cooperative society shall obtain the approval of the Central Registrar.
Provided further that the Central Registrar may, while giving the approval, impose such conditions as to the recoupment of the Bad Debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out of future profits as he deems fit.
9. Transactions with non-members-Save as otherwise provided for in section 65 and except with the general or special sanction of the Central Registrar, no multi-State cooperative society shall enter into any credit transaction with a person other than a member, unless the bye-laws of the multi-State cooperative society permit it to enter into such transactions.
10. Application for loan-
(1) An application for loan shall be in such form as may be required by the board of the multi-State cooperative society and shall state the purpose for which the loan is required in the manner laid down in the bye-laws of the society.
(2) For every loan, a member shall furnish such security as may be required under the bye-laws of the multi-State cooperative society.
(3) The period of repayment of the loan shall be as may be provided in the bye-laws, but in no case exceed five years.
(4) In any multi-State cooperative society in which the liability of the members is limited by shares, no loan shall be granted to a member exceeding ten times the amount of share capital laid down in the bye-laws, times the amount of share capital paid by him or as may be laid down in the bye--laws.
11. Contributory Provident Fund-
(1) Every multi-State cooperative society which has in its service 5 or more regular employees shall establish a Contributory Provident Fund referred to in sub-section (1) of section 66.
(2) The multi-State co-operative society creating such a fund shall provide for the following in its bye-laws:-
(a) Authority to administer the fund.
(b) Amount of contribution to be deducted from the employee s salary.
(c) Mode of nomination for payment of the amount of the contributory provident fund in case of employee's death.
(d) Purpose for which, the extent to which, and the period after which, advances may be made against the security of such fund and the number of monthly installments in which advance is to be repaid.
(e) Refund of employees' contribution and contribution made by the society.
(f) Maintenance of accounts of such fund.
(3) The amount of contribution that can be deducted from the salary of an employees of the multi-State cooperative society shall not be less than 8.33 per centum of his basic salary.
(4) The multi-State cooperative society may make such contribution every year to the employees' contributory provident fund as may be approved by the board. Such contribution shall not exceed 8.33 per cent of the basic salary of the employee.
12. Restriction on borrowings of limited liability of multi-State cooperative society-No multi-State cooperative society with limited liability shall accept deposits or loans, or by any other way incur liability exceeding 10 times the sum of the paid-up share capital plus accumulated reserves minus any losses. Provided that the Central Registrar, for reasons to be recorded in writing, may permit a multi-State cooperative society to incur liabilities exceeding the aforesaid limit.
13. Maintenance of liquid resources and distribution of assets-Every multi-State cooperative society which obtains any portion of its working capital by deposit, shall-
(a) maintain such liquid resources and in such form as may be specified by the Reserve Bank of India in the case of those multi-State cooperative credit societies which are coming under the purview of the Banking Regulation Act, 1949 (10 of 1949) and by the Central Registrar in the case of other multi-State cooperative societies; and
(b) utilise only such portion of its working capital in lending business and distribute its assets in accordance with such standards as may be specified from time to time by the Central Registrar.
14. Share not to be hypothecated to the multi-State cooperative society-The share of a multi-State cooperative society shall not be hypothecated to the society by its members as security for a loan.
15. Loan on security of non-members-No multi-State cooperative society shall make any loan to a member on a security bond given by a non-member: Provided that the Central Registrar may for reasons, to be recorded in writing, exempt any multi-State cooperative society or class of multi-State cooperative societies from the operation of this rule.
AUDIT AND ACCOUNTS
16. Books of accounts-Every multi-State cooperative society shall keep books of account with respect to:-
(a) all sums of money received and expended and the matters in respect of which the receipt and expenditure take place;
(b) all sales and purchase of goods;
(c) the assets and liabilities;
(d) in the case of a multi-State cooperative society engaged in production, processing and manufacturing, particulars relating to utilisation of materials or labour or other items of costs as may be specified by the Central Registrar.
17. Subject matter of audit-
(1) The audit of a multi-State cooperative society under sub-section(1) of section 67 shall include, in addition to the matters specified in sub-section(2) of that section the following particulars:
(a) Whether the auditor has obtained all the information and explanations which, to the best of his knowledge and belief are necessary for the purposes of his audit;
(b) whether in his opinion proper books of accounts as specified in these rules and bye-laws have been kept by the multi-State cooperative society so far as it appears from the examination of those books and proper returns adequate for the purposes of his audit have been received from the branches not visited by him;
(c) Whether the balance-sheet and profit & loss account exhibit a true & fair view of the state of affairs of the multi-State Cooperative society according to best of his information and explanation given to him and as shown by the books of the multi-State cooperative society; and
(d) Whether there has been any material impropriety or irregularity in the expenditure or in the realisation of money due to the multi-State cooperative society.
(2) Where in any of the matters referred to in sub-rule (1) the answer is in the negative or in the affirmative with any remark, the auditor shall give reasons for such answer with facts and figures in support of such remarks.
(3) The audit report shall also contain schedules with particulars of:-
(a) all transactions which appear to be contrary to the provisions of the Act, the rules or the bye-laws of the multi-State cooperative society;
(b) Any money belonging to the multi-State cooperative society which appears to the auditor to be bad or doubtful of recovery;
(c) The loans given by the multi-State cooperative society to the members of the board; and
(d) any other matter as may be specified by the Central Registrar in this regard.
(4) The auditor shall make his report to the multi-State cooperative society and also send a copy of that report direct to the Central Registrar. The Central Registrar may for reasons to be recorded in writing, direct that if any portion of the audit report which appears to him of objectionable nature or not justified, be expunged and the portion so expunged shall not form part of the audit report.
(5) The audit report given by the auditors shall be considered by the board of a multi-State cooperative society and placed before the general body with their comments.
(6) The defects pointed out by the auditors in the working of the multi-State Cooperative society shall be specifically considered by the board and a compliance report explaining the measures taken to rectify the defects be submitted to the Central Registrar within three months of the receipt of the audit report.
WINDING UP OF MULTI-STATE COOPERATIVE SOCIETIES
19. Procedure to be adopted by liquidator-When a liquidator has been appointed under sub-section (1) of section 80 the following procedure shall be adopted:
(a) The appointment of the liquidator shall be notified by the Central Registrar in the Official Gazette.
(b) The liquidator shall, as soon as the order of winding up of the multi-State cooperative society takes effect, publish by such means as he may, think proper, a notice, requiring all claims against the multi-State cooperative society, the winding up of which has been ordered, to be submitted to him within two months of the publication of the notice. All liabilities recorded in the account books of a multi-State cooperative society shall be deemed ipso-facto to have been duly submitted to him under this clause.
(c) The liquidator shall investigate all the claims against the multi-State cooperative society and decide questions of priority arising between claimants.
(d) The liquidator shall recover all sums and other properties to which the multi-State cooperative society is entitled and may institute such suits for that purpose or such suits incidental to liquidation proceedings as he may think proper.
(e) The liquidator may empower any person, by general or special order in writing, to make collections and to grant valid receipts on his behalf.
(f) The liquidator shall, after setting the assets and liabilities of multi-State cooperative society as they stood on the date on which the order of winding up is made, proceed next to determine from time to time the contribution including debts due and costs of liquidation to be made or remaining to be made by each of its members, past members, or by the estates, or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the multi-State cooperative society, under clause (b) of sub-section (2) of section 81. Should necessity arise, he may also make a subsidiary order regarding such contributions and such order shall be enforceable in the same manner as the original order.
(g) All funds in the charge of the liquidator shall be deposited in the Post Officer Savings Banks or in a cooperative bank or with such other banks as may be approved by the Central Registrar and shall stand in his name.
(h) The Central Registrar shall fix the amount of remuneration, if any, to be paid to the liquidator. The remuneration shall be included in the cost of liquidation, which shall be payable out of the assets of the multi-State cooperative society in priority of all other claims.
(i) The liquidator may call for the meeting of the members of the multi-State cooperative society under liquidation.
(j) The liquidator shall submit to the Central Registrar a quarterly report in such form as the Central Registrar may, specify showing the progress made in liquidation of the multi-State cooperative society.
(k) The liquidator shall keep such books and accounts as may from time to time be specified by the Central Registrar who may at any time cause such books and accounts to be audited.
(l) At the conclusion of the liquidation, the liquidator shall call for a general meeting of the members of the dissolved society at which the liquidator or any other person authorised by him, by special or general order in writing in this behalf, shall summarise, the result of his proceedings and shall take a vote as to the disposal of any surplus funds. The liquidator shall submit his final report to the Central Registrar with a copy of the proceedings of the general meeting referred to above and make over to the Central Registrar all books and registers and accounts etc., belonging to the multi-State cooperative society and all books and accounts relating to the liquidation proceeding kept by him.
(m) If any liability cannot be discharged by the liquidator owing to the whereabouts of the claimants not being known or for any other cause the amount covered by such undischarged liability may be deposited in a Cooperative Bank and shall be available for meeting the claims of the person or persons concerned.
(n) A liquidator may, at any time, be removed by the Central Registrar and he shall on such removal be bound to hand over all the property and documents relating to the society under liquidation to such persons as the Central Registrar may direct.
(0) All the books and records of a multi-State Cooperative society whose registration has been cancelled and the proceedings of liquidation of a multi-State Cooperative society ordered to be wound up may be destroyed by the Central Registrar after the expiry of three years from the date of the order cancelling the registration of the multi-State Cooperative society.
20. Application of assets of the multi-State Cooperative society-the assets of the multi-State cooperative society shall be applied in order of priority as given below for payment of the liabilities:
(1) Pro-rata payment of all outside liabilities.
(2) Pro-rata repayment of loans and deposits of members.
(3) Pro-rata refund of share capital.
(4) Pro-rata payment of dividend on the share at the rate not exceeding 6.25 per cent per annum for the period of liquidation.
21. Disposal of surplus assets-for the purpose of sub-section (b) of section 82 the surplus assets shall be distributed among the members in proportion to the share capital held by the members or in proportion to the business done by the members with the multi-State Cooperative society as may be determined by the Central Government before according sanction under sub-clause (b) of section 82.
EXECUTION OF DECREES, ORDERS AND DECISIONS
22. Procedure in execution of decrees, orders and decisions-
(1) Any decree-holder requiring the provisions of clause (c) of section 85 to be applied, shall apply to the Recovery Officer in whose jurisdiction the cause of action arose and shall deposit the necessary costs as fixed by the Central Registrar. If the judgement-debtor resides or the property to be proceeded against is situated outside the jurisdiction of such Recovery Officer, the Recovery Officer shall transfer the application to the Recovery Officer in whose jurisdiction the judgement-debtor resides or the property is situated.
(2) Every such application shall be made in the form specified by the Central Registrar and shall be signed by the decree-holder. The decree-holder may indicate whether he wishes to proceed against the immovable property mortgaged to the decree-holder or other immovable property or to secure the attachment of movable property.
(3) On receipt of such application, the Recovery Officer shall verify the correctness and genuineness of the particulars set forth in the application with the records, if any, in the office of Central Registrar and prepare a demand notice in writing in duplicate in the form specified by the Central Registrar, setting forth the name of the defaulter and the amount due and forward it to the Sale Officer.
(4) Unless the decree-holder has expressed a desire that proceedings should be taken in a particular order as laid down in sub-rule (2), execution shall ordinarily be taken in the following manner:
(i) movable property of the defaulter shall be first proceeded against, but this shall not preclude the immovable property being proceeded against simultaneously in case of necessity;
(ii) if there is no movable property, or if the sale proceeds of the movable property, or properties attached and sold are insufficient to meet in full the demand of the decree-holder, the immovable property mortgaged to the decree-holder, or other immovable property belonging to the defaulter may be proceeded against.
(5) In the seizure and sale of movable property the following rules shall be observed:
(a) the Sale Officer, shall after giving previous notice to the decree-holder, proceed to the village or place where the defaulter resides or the property to be destrained is situated and serve a demand notice upon the defaulter if he is present. If the amount due together with the expenses be not at once paid, the Sale Officer shall make the distress and shall immediately delivery to the defaulter a list or inventory of the property distrained and an intimation of place and day and hour at which the distrained property will be brought to sale if the amount due are not previously discharged. If the defaulter is absent, the Sale Officer shall serve the demand notice on some adult male member of his family, or on his authorised agent, or when such service cannot be effected, shall affix a copy of the demand notice on some conspicuous part of his residence. He shall then proceed to make the distress and shall fix the list of property attached on the usual place of residence of the defaulter, endorsing thereon the place where the property may be lodged or kept and an intimation of the place, day and hour of sale.
(b) After the distress is made, the Sale Officer may arrange for the custody of the property attached with the decree-holder or otherwise. If the Sale Officer requires the decree-holder to undertake the custody of the property he shall be bound to do so and any loss incurred owing to his negligence shall be made good by the decree-holder. If the attached property is live-stock, the decree-holder shall be responsible for providing the necessary food therefor. The Sale Officer may, at the instance of the defaulter or of any person claiming an interest in such property, leave it in the village or place where it was attached, in the charge of such defaulter or person, if he entered into a bond in the form specified by the Central Registrar with one or more sufficient sureties for the production of the property when called for.
(c) The distress shall be made after sunrise and before sunset and not at any other time.
(d) The distress levied shall not be excessive, that is to say, the property distrained shall be as nearly as possible proportionate to the sum due by the defaulter together with interest and all expenses incidental to the disgraint, detention and sale.
(e) If crops or ungathered products of the land belonging to a defaulter are attached, the Sale Officer may cause them to be sold when fit for reaping or gathering, or at his option may cause them to be reaped for gathered in due season and stored in proper place until sold. In the latter case, the expense of reaping or gathering and storing such crops or products shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.
(f) The Sale Officer shall not work the bullocks or cattle, or make use of the goods or effect distrained, and he shall provide the necessary food for the cattle or livestock, the expense attending which shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.
(g) It shall be lawful for the Sale Officer to force open any stable, cow house, granary, godown, out-house or other building and he may also enter any dwelling house, the outer door of which may be open and may break open the door of any room in such dwelling house for the purpose of attaching property belonging to a defaulter and lodged therein, provided always that it shall not be lawful for the officer to break open or enter apartment in such dwelling house appropriate for the zenana or residence of women except as hereinafter provided.
(h) Where the Sale Officer may have reason to suppose that the property of a defaulter is lodged within a dwelling house the outer door of which may be shut or within any apartments appropriated to women which by custom or usage are considered private, the Sale Officer shall represent the fact to the officer in charge of the nearest police station. On such representation the officer-in-charge of the said station shall send a police officer to the spot in the presence of whom the Sale Officer may force open the other door of such dwelling house, like manner as he may break open the door of any room within the house except the zenana. The Sale Officer may also, in the presence of a police officer, after due notice given for the removal of women within a zenana and, after furnishing means for their removal in a suitable manner if they be women of rank who, according to the custom of usage cannot appear in public, enter the zenana apartments for the purpose of distraining the defaulter's property, if any, deposited therein, but such property, if found, shall be immediately removed from such property, if found, shall be immediately removed from such apartments after which they shall be left free to the former occupants.
(i) The Sale Officer shall on the day previous to and on the day of sale cause proclamation of the time and place of the intended sale to be made by beat of drum in the village or place in which the defaulter resides on two consecutive days previous to the date of sale and on the day of sale prior to the commencement of the sale and in such other place or places as the officer may consider necessary to given due publicity to the sale. No sale shall take place until after the expiration of the period of 15 days from the date on which the sale notice has been served or affixed in the manner prescribed in clause(a). Provided that where the property seized is subject to speedy and natural decay, or where the expense of keeping it in custody is likely to exceed its value, the Sale Officer may sell it at any time before the expiry of the said period of 15 days, unless the amount due is sooner paid.
(j) At the appointed time the property shall be put up in one or more lots, as the Sale Officer may consider advisable and shall be disposed of to the highest bidder: Provided, further that the Sale Officer may, in his discretion, adjourn the sale to a specified day and hour recording his reasons for such adjournment. Where a sale is so adjourned for a longer period than 7 days, a fresh proclamation under clause (i) shall be made unless the judgement debtor consents to waive it.
(k) The property shall be paid for in cash at the time of sale, or as soon thereafter as the officer holding the sale shall appoint, and the purchaser shall not be permitted to carry away any part of the property until he has paid for it in full. Where the purchaser may fail in payment of purchase money, the property shall be resold.
(l) Where any property which has been attached under these rules has been forcibly or clandestinely removed by any person, the Sale Officer may apply to a civil court having jurisdiction for restoration of such property. Where the court is satisfied about the truth of the facts, as alleged in the application, it may order forthwith such property to be restored to the Sale Officer.
(m) Where prior to the day fixed for sale, the defaulter of any person acting on his behalf or any person claiming an interest in the property attached, pays the full amount due including interest, batta and other costs incurred in attaching the property, the Sale Officer shall cancel the order of attachment and release the property forthwith.
(n) The movable property mentioned as exempt from attachment in the proviso to section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall not be liable to attachment or sale under these rules.
(6) Where the movable property to be attached is the salary or allowance or wages of a public servant or a servant of a local authority or a firm or a company, the Recovery Officer may, on receiving a report from the Sale Officer, order that the amount shall, subject to the provisions of section 60 of the Code of Civil Procedure, 1908 (5 of 1908) be with-held from such salary or allowances or wages either in one payment or by monthly instalment as the Recovery Officer may direct and upon receipt of the order, the officer of other person whose duty it is to disburse such salary or allowance or wages shall withhold and remit to the Sale Officer, the amount due under the order or the monthly instalment, as the case may.
(7) (i) where the property to be attached consists of the share or interest of the defaulter in movable property belonging to him and another as co-owners, the attachment shall be made by a notice to the defaulter, prohibiting him from transferring the share or interest or charging it in any way.
(ii) Where the property to be attached is negotiable instrument not deposited in a court, nor in the custody of a public officer, the attachment shall be made by actual seizure and the instrument shall be brought to the office of the Recovery Officer ordering the attachment and be held subject to his further orders.
(iii) Where the property to be attached is in the custody of any court or public officer, the attachment shall be made by a notice to such court or officer, requesting that such property and any interest or dividend becoming payable thereon may be held subject to the further orders of the Recovery Officer issuing the notice: Provided that where such property is in the custody of a court or Recovery Officer of another district, any question of title or priority arising between the decree-holder and any other person not being the defaulter claiming to be interested in such property by virtue of any assignment, attachment or otherwise shall be determined by such court or Recovery Officer.
(8) (i) Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge, the attachment shall be made if the decree sought to be attached was passed by the Central Registrar or by any person to whom a dispute was transferred by the Central Registrar under section 76, then by the order of the Central Registrar.
(ii) Where the Central Registrar makes an order under clause (i) he shall on the application of the decree-holder who has attached the decree, proceed to execute the attached decree and apply the net proceeds in satisfaction of the decree sought to be executed.
(iii) The holder of a decree sought to be executed by the attachment of another decree of the nature specified in clause (i), shall be deemed to be the representative of the holder of the attached decree and to be entitled to execute such attached decree in any manner for the holder thereof.
(iv) Where the property to be attached in execution of a decree is a decree other than a decree of the nature referred to in clause (i), the attachment shall be made by the issue of a notice by the Recovery Officer to the holder of such decree prohibiting him from transferring or charging the same in any way.
(v) The holder of a decree attached under this sub-rule shall give the recovery Officer executing the decree such information and aid as may reasonably be required.
(vi) On the application of the holder of a decree sought to be executed by the attachment of another decree, the Recovery Officer making an order of attachment under this sub-rule shall give notice of such order to the judgement-debtor bound by the decree attached; and no payment or adjustment of the attached decree made by the judgement-debtor in contravention of such order after receipt of notice thereof either through the said Recovery Officer or otherwise, shall be recognised so long as the attachment remains in force.
(9) Where the movable property to be attached is:
(a) a debt due to the defaulter in question,
(b) a share in the capital of a corporation or a deposit invested therein, or
(c) other movable property not in the possession of the defaulter, except property deposited in or in the custody of any civil court, the attachment shall be made by a written order signed by the Recovery Officer prohibiting.
(i) in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof;
(ii) in the case of a share or deposit the person in whose name the share or the deposit may be standing, from transferring the share or deposit or receiving any dividend or interest thereon; and
(iii) in the case of any other movable property, the person in possession of it from giving it over to the defaulter. A copy of such order shall be sent in the case of the debt to the debtor, in the case of the share or deposit, to the proper officer of the corporation and in the case of the other movable property to the person in possession of such property. As soon as the debt referred to in clause (a) or the deposit referred to in clause (b) matures, the Recovery Officer may direct the person concerned to pay the amount to him. Where the share is not withdrawable, the Recovery Officer shall arrange for its sale through a broker. Where the share is withdrawable, its value shall be paid to the Recovery Officer or to the party referred to in clause (c). In the case of other moveable property referred to in sub-clause (iii) of clause (c) the person concerned shall place it in the hands of the Recovery Officer when it becomes deliverable to the defaulter.
(10) Immovable property shall not be sold in execution of a decree unless such property has been previously attached: Provided that where the decree has been obtained on the basis of a mortgage of such property it shall not be necessary to attach it.
(11) In the attachment and sale, or sale without attachment of immovable property, the following rules shall be observed:
(a) The application presented under sub-rule (2) shall contain a description of the immovable property to be proceeded against, sufficient for its identification and in case such property can be identified by boundaries or numbers in a record of settlement or survey, the specification of such boundaries or numbers and the specification of the defaulter's share or interest in such property to the best of the belief of the decree-holder and so far as he has been able to ascertain it.
(b) The demand notice issued by the Recovery Officer under sub-rule (3) shall contain the name of the defaulter, the amount due, including the expenses, if any, and the batta to be paid to the person who shall serve the demand notice, the time allowed for payment and in case of non-payment, the particulars of the properties to be attached and sold or to be sold without attachment, as the case may be. After receiving the demand notice, the Sale Officer shall serve or cause to be served a copy of the demand notice upon the defaulter or upon some adult male member of his family at his usual place of residence, or upon his authorised agent or if such personal service is not possible, shall affix a copy thereof on some conspicuous part of the immovable property about to be attached and sold or sold without attachment, as the case may be: Provided that, where the Recovery Officer is satisfied that a defaulter with intent to defeat or delay the execution proceeding against him is about to dispose of whole or any part of his property, the demand notice issued by the Recovery Officer under sub-rule(3) shall not allow any time to the defaulter for payment of the amount due by him and the property of the defaulter shall be attached forthwith.
(c) If the defaulter fails to pay the amount specified in the demand notice within the time allowed, the sale officer shall proceed to attach and sell or sell without attachment, as the case may be the immovable property noted in the application for execution in the following manner.
(d) Where attachment is required before sale, the Sale Officer shall, if possible cause a notice of attachment to be served on the defaulter personally. Where personal service is not possible, the notice shall be affixed in some conspicuous part of the defaulter's last known residence, if any. The fact of attachment shall also be proclaimed by beat of drum or other customary mode at some place on, or adjacent to, such property and at such other place or places as the Recovery Officer may consider necessary to give due publicity to the sale. The attachment notice shall set forth that, unless the amount due with interest and expenses be paid within the date therein mentioned, the property will be brought to sale. A copy shall be sent to the decree-holder. Where the Sale Officer so directs the attachment shall also be notified by public proclamation in the Official Gazette.
(e) Proclamation of sale shall be published by affixing a notice in the office of the Recovery Officer and the taluk office at least thirty day before the date fixed for the sale and also by beat of drum in the village (on two consecutive days previous to the date of sale and on the day of sale prior to the commencement of the sale). Such proclamation shall, where attachment is required before sale, be made after the attachment has been effected. Notice shall also be given to the decree-holder and the defaulter. The proclamation shall state the time and place of sale and specify as fairly and accurately as possible:
(i) the property to be sold;
(ii) any encumbrances to which the property is liable;
(iii) the amount for the recovery of which sale is ordered; and
(iv) every other matter which the Sale Officer considers material for a purchaser to know in order to judge the nature and value of the property.
(f) When any immovable property is sold under these rules, the sale shall be subject to the prior encumbrances on the property, if any. The decree-holder shall, when the amount for the realisation of which the sale is held exceeds Rs.100, furnish to the Sale Officer within such time as may be fixed by him or by the Recovery Officer, an encumbrance certificate from the Registration Department for the period of not less than twelve years prior to the date of attachment of the property sought to be sold, or in cases falling under the proviso to sub-rule(1), prior to the date of the application for execution. The time for production of the encumbrance certificate may be extended at the discretion of the Sale Officer or the Recovery Officer or the Recovery Officer, as the case may be. The sale shall be by public auction to the highest bidder: Provided that it shall be open to the Sale Officer to decline to accept the highest bid where the price offered appears to be unduly low or for other adequate reasons; Provided further that the Recovery Officer or the Sale Officer may in his discretion adjourn the sale to a specified day and hour recording his reason for such adjournment. Where a sale is so adjourned for a longer period than 7 days, a fresh proclamation under clause(e) shall be made, unless the defaulter consents to waive it, The sale shall be held after the expiry of not less than thirty days calculated from the date on which notice of the proclamation was affixed in the office of the Recovery Officer. The time and place of sale shall be the village where the property to be sold is situated or such adjoining prominent place of public resort as may be fixed by the recovery officer: Provided also that in cases where encumbrance certificate is not obtainable owing to the destruction of the connected records an affidavit from the village patwari or corresponding officer in regard to the encumbrances known to him supported by a certificate from the Registration Department that the encumbrances certificate cannot be granted owing to the destruction of the connected records, shall be accepted in place of an encumbrance certificate.
(g) A sum of money equal to 15 per cent of the price of the immovable property shall be deposited by the purchaser in the hands of the Sale Officer at the time of the purchase and in default of such deposit, the property shall forthwith be resold: Provided that where the decree-holder is the purchaser and is entitle to set off the purchase money under clause (k), the Sale Officer shall dispense with the requirement of this clause.
(h) The remainder of the purchase money and the amount required for the general stamp for the sale certificate shall be paid within fifteen days from the date of sale: Provided that the time for payment of the cost of the stamps may, for good and sufficient reasons, be extended at the discretion of the Recovery Officer up to thirty days from the date of sale: Provided further that, in calculating the amounts to be paid under this clause, the purchaser shall have the advantage of any set off to which he may be entitled under clause (k).
(i) In default of payment within the period mentioned in clause (h) the deposit may, if the Recovery Officer thinks fit, after defraying the expenses of the sale, be forfeited to the Central Government and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may subsequently be sold.
(j) Every resale of immovable property in default of payment of the amounts mentioned in clause(h) within the period allowed for such payment, shall be made after the issue of a fresh proclamation in the manner and for the period herein before prescribed for the sale.
(k) Where a decree-holder purchases the property, the purchase money and the amount due on the decree shall be set off against one another, and the Sale Officer shall enter satisfaction of the decree in whole or in part accordingly.
(12) Where prior to the date fixed for a sale, the defaulter or any person acting on his behalf or any person claiming an interest in the property sought to be sold tenders payment of the full amount due together with interest, batta and other expenses incurred in bringing the property to sale including the expenses of attachment, if any, the Sale Officer shall forthwith release the property after cancelling, where the property has been attached, the order of attachment.
(13)(i) Where immovable property has been sold by the Sale Officer, any person either owning such property or holding an interest therein by virtue of a title acquired before such sale may apply to have the sale set aside on his depositing with the Recovery Officer-
(a) for payment to the purchaser a sum equal to 5 per cent of the purchase money, and
(b) for payment to the decree-holder, the amount of arrears specified in the proclamation of sale as that for the recovery of which the sale was ordered together with interest thereon and the expenses of attachment, if any, and sale and sale and other costs due in respect of such amount, less amount which may since the date of such proclamation have been received by the decree-holder.
(ii) If such deposit and application are made within thirty days from the date of sale the Recovery Officer shall pass an order setting aside the sale and shall repay to the purchase money so far as it has been deposited together with 5 per cent deposited by the applicant: Provided that if more persons than one have made deposit and application under this sub-rule the application of the first depositor to the officer authorised to set aside the sale, shall be accepted.
(iii) If a person applies under Sub-rule (14) to set aside the sale of immovable property, he shall not be entitled to make an application under this sub rule.
(14)(i) At any time within thirty days from the date of the sale of immovable property, the decree-holder or any person entitled to share in a rateable distribution of the assets or whose interests are effected by the sale, may apply to the Recovery Officer to set aside the sale on the ground of a material irregularity or mistake or fraud in publishing or conducting it: Provided that, no sale shall be set aside on the ground of irregularity or fraud unless the Recovery Officer is satisfied that the applicant has sustained substantial injury by reason of such irregularity, mistake or fraud.
(ii) If the application be allowed, the Recovery Officer, shall set aside the sale and may direct a fresh one.
(iii) On the expiration of thirty days from the date of sale if no application to have the sale set aside is made or if such application has been made and rejected the Recovery Officer shall make an order confirming the sale: Provided that if he shall have reason to believe that the sale ought to be set aside notwithstanding that no such application has been made or on grounds other than those alleged in any application which has been made and rejected, he may, after recording his reasons in writing, set aside the sale.
(iv) Whenever the sale of any immovable property is not so confirmed or is set aside, the deposit or the purchase money, as the case may be, shall be returned to the purchaser.
(v) After the confirmation of any such sale, the Recovery Officer shall grant a certificate of sale bearing his seal and signature to the purchaser, and such certificate shall state the property
sold and the name of the purchaser and it shall be conclusive evidence of the fact of the purchase in all courts and tribunals, where it may be necessary to prove it and no proof of the seal or signature of the Recovery Officer shall be necessary unless the authority before whom it is produced shall have reason to doubt its genuineness.
(vi) An order made under this sub-rule shall be final, and shall not be liable to be questioned in any suit or other legal proceedings.
(15) Where any lawful purchaser of immovable property is resisted and prevented by any person other then a person (not being the defaulter) claiming in good faith to be in possession of the property on his own account from obtaining possession of the immovable property purchased any court of competent jurisdiction on application, and production of the certificate of sale provided for by sub-rule (14) shall cause the proper process to be issued for the purpose of putting such purchaser in possession, in the same manner as if the immovable property purchased had been decreed to the purchaser by a decision of the court.
(16) It shall be lawful for the Sale Officer to sell the whole or any portion of the immovable property of a defaulter in discharge of money due: Provided that so far as may be practicable, no larger section or portion of immovable property shall be sold than may be sufficient to discharge the amount due with interest and expenses of attachment, if any, and sale.
(17) Persons employed in serving notice or in other process under these rules shall be entitled to batta at such rates as may from time to time be fixed by the Recovery Officer.
(18) Where the cost and charges incurred in connection with attachment and sale of movable property or the attachment and sale or sale without attachment of immovable property under this rule, exceeds the amount of the cost deposited from the sale proceeds of the property sold or the money paid by defaulter, as the case may be and the balance shall be made available to the decree-holder.
(19) Every person making a payment towards any money due for the recovery of which application has been made under this rule shall be entitled to a receipt for the amount signed by the Sale Officer or other officer empowered by the Recovery Officer in that behalf, such receipt shall state the name of the person making the payment and the subject matter in respect of which the payment is made.
(20) (a) Where any claim is preferred to, or any objection is made to the attachment of any property attached under this rule on the ground that such property is not liable to such attachment, the Sale Officer shall investigate the claim or objection and dispose it of on the merits: Provided that no such investigation shall be made when the Sale Officer considers that the claim or objection is frivolous.
(b) Where the property to which the claim or objection relates has been advertised for sale, the Sale Officer may postpone the sale pending the investigation of the claim or objection.
(c) Where a claim or an objection is preferred, the party against whom an order is made may institute a suit to establish the right which the claim to the property in dispute, but, subject to the result of such suit, if any, the order shall be conclusive.
(21) (i) Any deficiency of price which may arise on a resale held under clause (j) of Sub-rule (11) by reason of the purchaser's default and all expenses attending such resale shall be certified by the Sale Officer to the Recovery Officer and shall, at the instance of either the decree-holder or the defaulter be recoverable from the defaulting purchaser under the provisions of this rule. The cost, if any, incidental to such recovery shall be borne by the defaulting purchaser. (ii) Where the property may on the second sale, sell for a higher price than at the first sale, the defaulting purchaser at the first sale, shall have no claim to the difference or increase.
(22) Where any property has been attached in execution of a decree, but by reason of the decree-holder's default the Recovery Officer is unable to proceed further with the application for execution, he shall either dismiss the application or for any sufficient reason adjourn the proceeding to a future date. Upon the dismissal of such application, the attachment shall cease.
(23) Where assets are held by the Sale Officer and before the receipt of such assets, demand notices in pursuance of application for execution of decree-against the same defaulter have been received from more than one decree-holder and the decree-holders have not obtained satisfaction, the assets after deducting the costs or realisation shall be rateably distributed by the Sale Officer among all such decree--holders in the manner provided in section 73 of the Code of Civil Procedure, 1908 (5 of 1908).
(24) Where defaulter dies before the decree has been fully satisfied, an application under sub-rule(1) may be made against the legal representative of the deceased and thereupon all the provisions of this rule shall, save as otherwise provided in this sub-rule, apply as if such legal representative were the defaulter. Where the decree is executed against such legal representative, he shall be liable only to the extent of the property of the deceased which has come to his hands and has not been duly disposed of, and for the purpose of ascertaining such liability, the Recovery Officer executing the decree may, of his own motion or on the application of the decree-holder compel such legal representative to produce such accounts as he thinks fit.
23. Mode of making attachment before judgement-
(1) Attachment of property under Section 87 shall be made in the manner provided in Rule 22.
(2) where a claim is preferred to property attached under Sub-rule(1) such claim shall be investigated in the manner and by the authority specified in Rule22.
(3) Where a direction is made for the attachment of any property under sub-rule(1), the Recovery Officer shall order the attachment to be withdrawn:-
(a) when the party concerned furnishes the security required, together with the security for the costs of the attachment; or
(b) when the liquidator determines under clause (b) of sub-section (2) of section 81 that no contribution is payable by the party concerned; or
(c) when the Central Registrar passes an order under sub-section(1) of section 73 that the party concerned need not repay or restore any money or property or contribute any sum to the assets of the society by way of compensation; or
(d) when the dispute referred to in sub-section(1) of Section 76 has been decided against the party at whose instance the attachment was made.
(4) Attachment made under Sub-rule (1) shall not affect the right existing prior to the attachment of persons not parties to the proceedings in connection with which the attachment was made, nor bar any person holding a decree against the person whose property is attached from applying for the sale of the property under attachment in execution of such decree.
(5) Where property is under attachment by virtue of the provisions of this rule and a decree is subsequently passed against the person whose property is attached, it shall not be necessary upon an application for execution of such decree to apply for re-attachment of the property.
24. Mode of service of summon-
(1) Every summon issued under the act or these rules shall be in writing, shall be authenticated by the seal, if any, of the officer by whom it is issued and shall be signed by such officer or by any person authorised by him in writing in that behalf. It shall require the person summoned to appear before the said officer at a stated time and place, and shall specify whether his attendance is required for the purpose of giving evidence, or to produce a document, or for both purposes, and any particular document the production of which is required, shall be described in the summons with reasonable accuracy.
(2) Any person may be summoned to produce a document, without being summoned to give evidence, and any person summoned merely to produce a document shall be deemed to have complied with the summons if he causes such document to be produced, instead of attending personally to produce the same.
(3) The service of summons under the Act or these rules on any person, may be effected in any of the following ways:
(a) by giving or tendering it to such person; or
(b) if such person is not found, by leaving it at his last known place of abode or business or by giving or tendering it to some adult member of his family; or
(c) if the address of such person is known to the Central Registrar or other authorised person by sending it to him by registered post acknowledgement due; or
(d) if none of the means aforesaid is available, by affixing it in some conspicuous part of his last known place of abode or business.
(4) Where the serving officer delivers or tenders a copy of the summons to the defendant personally or to an agent or other person on his behalf, he shall require the signature of the person to whom the copy is so delivered or tendered as an acknowledgement of service endorsed on the original summons.
(5) The serving officer shall in all cases in which the summons have been served under Sub-rule(4), endorse or annex, or cause to be endorsed or annexed, on or to the original summons a return stating the time when and the manner in which the summons was served and the name and address of the person, if any, identifying the person served and witnessing the delivery or tender of the summons.
(6) Where the defendant to be summoned is a public officer or is a servant of a company or a local authority, the officer issuing the summons may, if it appears that the summons may be conveniently so served, send it by registered post acknowledgement due for service on the party to be summoned, to the head of the office in which he is employed together with a copy to be retained by the defendant.
SOCIETIES WHICH BECOME MULTI-STATE COOPERATIVE SOCIETIES CONSEQUENT ON REORGANISATION OF STATES
25. Preparation of a scheme for the reconstitution or reorganisation of multi-State cooperative societies-
(1) The Central Registrar or an authorised officer, shall prepare a scheme referred to in sub-section(2) of section 95 for the reconstitution or reorganisation of any multi-State cooperative society rendered as such, consequent on the reorganisation of the states and referred to in sub-section (1)of section 95, and forward a copy of the scheme to the President or the Chairman of the multi-State cooperative society with the direction that the scheme be placed before a meeting of the general body of the multi-State cooperative society specially convened for the purpose.
(2) The meeting referred to in sub-rule (1) shall be convened not less than 40 days after the date of issue of the notice to the members and the creditors of the multi-State cooperative society in the manner specified in sub-rule(3).
(3) A written notice specifying the date, hour and place of meeting and the business to be transacted there at shall be given to every member and shall be accompanied by a copy of the scheme to be considered at the meeting. The notice to each member and creditor shall:-
(i) be delivered or tendered to him in person;
(ii) be sent to him by registered post; or
(iii) be served on him in such other manner as may be specified in the bye-laws of the society.
(4) Notwithstanding anything to the contrary contained in any rule of bye-law governing the multi-State cooperative society, where the Central Registrar or the authorised officer in this behalf is satisfied that the President or Chairman of the society has failed to convene the special meeting as required under sub-rule(1), the Central Registrar or the authorised officer, as the case may be, shall convene a meeting of the general body of the multi-State cooperative society by giving 14 days notice to all the members and creditors of the multi-State cooperative society.
MISCELLANEOUS
26. Address of a multi-State cooperative society-The bye-laws of every multi-State cooperative society shall contain the address of the society to which all notices and communications may be sent. The address of the multi-State cooperative society shall include the name of the State, the district, post office and the village or town. Any change in the address of the multi-State cooperative society shall be communicated to the Central Registrar within a month of such change.
27. Repeal and saving-
(1) The Multi-Unit Cooperative Societies Rule, 1958 are hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under any of the rules so repealed shall, unless such thing or action is inconsistent with the provisions of these rules, be deemed to have been done or taken under the corresponding provisions of these rule.
3
The Price Policy
The main objectives of the Government's price policy for agricultural produce, aims at ensuring remunerative prices to the growers for their produce with a view to encourage higher investment and production. Towards the end, minimum support prices for major agricultural products are announced each year which are fixed after taking into account, the recommendations of the Commission for Agricultural Costs and Prices (CACP). The CACP while recommending prices takes into account all-important factors, viz.
1. Cost of Production
2. Changes in Input Prices
3. Input/Output Price Parity
4. Trends in Market Prices
5. Inter-crop Price Parity
6. Demand and Supply Situation
7. Effect on Industrial Cost Structure
8. Effect on General Price Level
9. Effect on Cost of Living
10. International Market Price Situation
11. Parity between Prices Paid and Prices Received by farmers (Terms of Trade).
Of all the factors, cost of production is the most tangible factor and it takes into account all operational and fixed demands. Government organises Price Support Scheme(PSS) of the commodities, through various public and cooperative agencies such as FCI, CCI, JCI, NAFED, Tobacco Board, etc., for which the MSPs are fixed. For commodities not covered under PSS, Government also arranges for market intervention on specific request from the States for specific quantity at a mutually agreed price. The losses, if any, are borne by the Centre and State on 50:50 basis. The price policy paid rich dividends. The Government have raised substantially the MSPs in recent years as may be seen from the statement enclosed.
Procurement/Minimum Support/Statutory Minimum Prices
Fixed By The Government For Agricultural Commodities in Absolute term (As On 12.2.2001)
(Rs. per quintal)
YEAR 1992-93 to 1996-97
Sl. Commodity Variety 1992- 1993- 1994- 1995- 1996-
93 94 95 96 97
1 2 4 5 6 7 8
1.Paddy Common 270 310 340 360 380
Fine 280 330 360 375 395
Super Fine 290 350 380 395 415
Grade 'A' - - - - -
2.Coarse Cereals 240 260 280 300 310
(Jowar Bajra & Ragi)
3. Maize 245 265 290 310 320
4. Wheat $ 330 $ 350 360 380 475 *
5. Barley 260 275 285 295 305
6. Gram 600 640 670 700 740
7. Arhar 640 700 760 800 840
8. Moong 640 700 760 800 840
9. Urad 640 700 760 800 840
10.Masur(lentil) - - - - -
11. Sugarcane @ 31.00 34.50 39.10 42.50 45.90
12. Cotton F-414/H-777 800 900 1000 1150 1180
H-4 950 1050 1200 1350 1380
13. Groundnut-
in-shell 750 800 860 900 920
14. Jute 400 450 470 490 510
15. Rapeseed/
Mustard 760 810 830 860 890
16. Sunflower Seed 800 850 900 950 960
17. Soyabean Black 475 525 570 600 620
Yellow 525 580 650 680 700
18. Safflower 720 760 780 800 830
19. Toria 725 780 800 825 855
20. Tobacco (VFC) Black Soil
(F2 Grade) 16.00 18.00 18.50 19.00 19.00
(Rs. per kg.) Light Soil
(L2 Grade) 17.50 20.00 21.00 21.50 22.00
21. Copra Milling N.A. 2150 2350 2500 2500
(Calender Year) ball N.A. 2350 2575 2725 2725
22. Sesamum - - - 850 870
23. Nigerseed - - - 700 720
@-Statutory Minimum Price linked to a basic recovery of 8.5% of sugar with proportionate premium for every 0.1% increase in recovery above that level.
$--Including a Central Bonus of Rs. 25.00 per quintal.
(N.A).-Not Announced.
#--Classified into two Categories for the MSP Purposes instead of existing three Varities from Kharif season of 1997-98.
*--Including a Central Bonus of Rs. 60.00 per quintal payable upto 30th June 1997.
(X)-Including a Central Bonus of Rs. 55.00 per quintal payable
(XX)-from 01-04-98 to 30-06-98
The MSP for masur (lentil) has been fixed from the crop year 2000-01.
Seeds Policy
Indian Agriculture has made enormous strides in the past 50 years, raising foodgrains production from 50 million tonnes to over 200 million tonnes. In the process, the country has progressed from a situation of food shortages and imports to one of surpluses and exports. Having achieved food sufficiency, the aim now is to achieve food and nutritional security at the household level.
The increase in agricultural production however has brought in its wake, uneven development across regions, crops and also across different sections of farming community. In the decade of the 'nineties', a marked slackening in the pace of growth occurred, pointing to the need for infusing a new vitality in the agricultural sector.
Seed is the most important determinant of agricultural production potential on which the efficiency of other agriculture inputs is dependent.
Seeds of appropriate characteristics are required to meet the demand of diverse agro-climatic conditions and intensive cropping systems.
Sustained increase in agriculture production and productivity is dependent to a large extent on the development of new and improved varieties of crops and an efficient system for timely supply of quality seeds to farmers.
The seed sector has made impressive progress over the last three decades. The area under certified seeds has increased from less than 500 hectares in 1962-63 to over 5 lakh hectares in 1999-2000. The quantum of quality seeds has crossed 100 lakh quintals.
The Seeds Act, 1966 and Seeds Control Order promulgated thereunder, and the New Policy on Seeds Development, 1988, form the basis of promotion and regulation of the Seed Industry.
Far-reaching changes, however, have taken place in the national economic and agricultural scenario and in the international environment since the enactment of the existing seed legislation and the announcement of the 1988 Policy.
Aims and Objectives
It has become evident that in order to achieve the food production targets of the future a major effort will be required to enhance the seed replacement rates of various crops. A major increase in the production of quality seeds is required in which the private sector is expected to play a significant role. At the same time, private and Public Sector Seed Organizations at both Central and State levels are expected to adopt economic pricing policies that would seek to realize the true cost of production.
The creation of a facilitative climate for growth of a competitive and localized seed industry, encouragement of import of useful germplasm and boosting of exports are the core elements of the agricultural strategy of the new millennium.
Biotechnology will be a key factor in agricultural development in the coming decades.
Genetic engineering/modification techniques hold enormous promise in developing crop varieties with a higher level of tolerance to biotic and abiotic stresses.
A conducive atmosphere for application of frontier sciences in varietal development and for enhanced investments in research and development is a pressing requirement. At the same time, concerns relating to possible harm to human and animal health and bio-safety, as well as interests of farmers, must be addressed.
Globalization and economic liberalization have opened up new opportunities as well as challenges. The main objectives of the National Seeds Policy, therefore, are the provision of an appropriate climate for the seed industry to utilize available and prospective opportunities, safeguarding of the interests of Indian farmers and the conservation of agro-biodiversity. While unnecessary regulation needs to be dismantled, it must be ensured that gullible farmers are not exploited by unscrupulous elements. A regulatory system of a new genre is, therefore, needed, which will encompass quality assurance mechanisms coupled with facilitation of a vibrant and responsible seed industry.
Varietal Development and Plant Variety Protection
• The development of new and improved varieties of plants and availability of such varieties to Indian farmers is of crucial importance for a sustained increase in agricultural productivity.
• Appropriate policy framework and programmatic interventions will be adopted to stimulate varietal development in tune with market trends, scientific-technological advances, suitability for biotic and
abiotic stresses, locational adaptability and farmers'
needs.
• An effective sui generis system for intellectual property protection will be implemented to stimulate investment
in research and development of new plant varieties
and to facilitate the growth of the Seed Industry in the country.
• A Plant Varieties & Farmers' Rights Protection (PVP) Authority will be established which will undertake registration of extant and new plant varieties through the Plant Varieties Registry on the basis of varietal characteristics.
• The registration of new plant varieties by the PVP Authority will be based on the criteria of novelty, distinctiveness, uniformity and stability.
• The criteria of distinctiveness, uniformity and stability could be relaxed for registration of extant varieties, which will be done within a specified period to be decided by the PVP Authority.
• Registration of all plant genera or species as notified by the Authority will be done in a phased manner.
• The PVP Authority will develop characterisation and documentation of plant varieties registered under the PVP Act and cataloguing facilities for all varieties of plants.
• The rights of farmers to save, use, exchange, share or sell farm produce of all varieties will be protected, with the proviso that farmers shall not be entitled to sell branded seed of a protected variety under the brand name.
• The rights of researchers to use the seed/planting material of protected varieties for bonafide research and breeding of new plant varieties will be ensured.
• Equitable sharing of benefit arising out of the use of plant genetic resources that may accrue to a breeder from commercialisation of seeds/planting materials of a new variety, will be provided.
• Farmers/groups of farmers/village communities will be rewarded suitably for their significant contribution in evolution of a plant variety subject to registration. The contribution of traditional knowledge in agriculture needs to be highlighted through suitable mechanisms and incentives.
• A National Gene Fund will be established for implementation of the benefit sharing arrangement, and payment of compensation to village communities for their contribution to the development and conservation of plant genetic resources and also to promote conservation and sustainable use of genetic resources. Suitable systems will be worked out to identify the contributions from traditional knowledge and heritage.
• Plant Genetic Resources for Food and Agriculture Crops will be permitted to be accessed by Research Organisations and Seed Companies from public collections as per the provisions of the 'Material Transfer Agreement' of the International Treaty on Plant Genetic Resources and the Biological Diversity Bill.
• Regular interaction amongst the Private and Public Researchers, Seed Companies/Organisations and Development Agencies will be fostered to develop and promote growth of a healthy seed industry in the country.
• To keep abreast of global developments in the field of Plant Variety Protection and for technical collaboration, India may consider joining Regional and International Organisations.
• The PVP Authority may, if required, resort to compulsory licensing of a protected variety in public interest on the ground that requirements of the farming community for seeds and propagating material of a variety are not being met or that the production of the seeds or planting material of the protected variety is not being facilitated to the fullest possible extent.
Seed Production
• To meet the Nation's food security needs, it is important to make available to Indian farmers a wide range of seeds of superior quality, in adequate quantity on a timely basis. Public Sector Seed Institutions will be encouraged to enhance production of seed towards meeting the objective of food and nutritional security.
• The Indian seed programme adheres to the limited three generation system of seed multiplication, namely, breeder, foundation and certified seed. Breeder seed is the progeny of nucleus seed.
• Nucleus seed is the seed produced by the breeder to develop the particular variety and is directly used for multiplication as breeder seed.
• Breeder seed is the seed material directly controlled
by the originating or the sponsoring breeder or
Institution for the initial and recurring production of foundation seed.
• Foundation seed is the progeny of breeder seed. Foundation seed may also be produced from foundation seed. Production of foundation seed stage-I and stage-II may thus be permitted, if supervised and approved by the Certification Agency and if the production process is so handled as to maintain specific genetic purity and identity.
• Certified seed is the progeny of foundation seed or the progeny of certified seed. If the certified seed is the progeny of certified seed, then this reproduction will not exceed three generations beyond foundation stage-I and it will be ascertained by the Certification Agency that genetic identity and genetic purity has not been significantly altered.
• Public Sector Seed Production Agencies will continue to have free access to breeder seed under the National Agriculture Research System. The State Farms Corporation of India and National Seeds Corporation will be restructured to make productive use of these organisations in the planned growth of the Seed Sector.
• Private Seed Production Agencies will also have access to breeder seed subject to terms and conditions to be decided by Government of India.
• State Agriculture Universities/ICAR Institutes will have the primary responsibility for production of breeder seed as per the requirements of the respective States.
• Special attention will be given to the need to upgrade the quality of farmers' saved seeds through interventions such as the Seed Village Scheme.
• Seed replacement rates will be raised progressively with the objective of expanding the use of quality seeds.
• DAC, in consultation with ICAR and States, will prepare a National Seed Map to identify potential, alternative
and non-traditional areas for seed production of specific crops.
• To put in place an effective seed production programme, each State will undertake advance planning and prepare a perspective plan for seed production and distribution over a rolling (five to six year) period. Seed Banks will be set up in non-traditional areas to meet demands for seeds during natural calamities.
• The 'Seed Village Scheme' will be promoted to facilitate production and timely availability of seed of desired crops/varieties at the local level. Special emphasis will be given to seed multiplication for building adequate stocks of certified/quality seeds by providing foundation seed to farmers.
• For popularising newly developed varieties and promoting seed production of these varieties, seed mini kits of pioneering seed varieties will be supplied to farmers. Seed exchange among farmers and seed producers will be encouraged to popularise new/non-traditional varieties.
• Seeds of newly developed varieties must be made available to farmers with minimum time gap. Seed producing agencies will be encouraged to tie up with Research Institutions for popularization and commercialization of these varieties.
• As hybrids have the potential to improve plant vigour and increase yield, support for production of hybrid seed will be provided.
• Seed production will be extended to agro-climatic zones which are outside the traditional seed growing areas, in order to avoid unremunerative seed farming in unsuitable areas.
• Seed Banks will be established for stocking specified quantities of seed of required crops/varieties for ensuring timely and adequate supply of seeds to farmers during adverse situations such as natural calamities, shortfalls in production, etc. Seed Banks will be suitably strengthened with cold storage and pest control facilities.
• The storage of seed at the village level will be encouraged to facilitate immediate availability of seeds in the event of natural calamities and unforeseen situations. For the storage of seeds at farm level, scientific storage structures will be popularised and techniques of scientific storage of seeds will be promoted among farmers as an extension practice.
• Seed growers will be encouraged to avail of Seed Crop Insurance to cover risk factors involved in production of seeds. The Seed Crop Insurance Scheme will be reviewed so as to provide effective risk cover to seed producers and will be extended to all traditional and non-traditional areas covered under the seed production programme.
Quality Assurance
• The Seeds Act will be revised to regulate the sale, import and export of seeds and planting materials of agriculture crops including fodder, green manure and horticulture and supply of quality seeds and planting materials to farmers throughout the country.
• The National Seeds Board (NSB) will be established in place of existing Central Seed Committee and Central Seed Certification Board. The NSB will have permanent existence with the responsibility of executing and implementing the provisions of the Seeds Act and advising the Government on all matters relating to seed planning and development. The NSB will function as the apex body in the seed sector.
• All varieties, both domestic and imported varieties, that are placed on the market for sale and distribution of seeds and planting materials will be registered under the Seeds Act. However, for vegetable and ornamental crops a simple system of varietal registration based on "breeders declaration" will be adopted.
• The Board will undertake registration of kinds/varieties of seeds that are to be offered for sale in the market, on the basis of identified parameters for establishing value for cultivation and usage (VCU) through testing/trialling.
• Registration of varieties will be granted for a fixed period on the basis of multilocational trials to determine VCU over a minimum period of three seasons, or as otherwise prescribed as in the case of long duration crops and horticultural crops. Samples of the material for registration will be sent to the NBPGR for retention in the National Gene Bank.
• Varieties that are in the market at the time of coming into force of the revised Seeds Act, will have to be registered within a fixed time period, and subjected to such testing as will be notified.
• The NSB will accredit ICAR, SAUs, public/private organisations to conduct VCU trials of all varieties for the purpose of registration as per prescribed standards.
• The NSB will maintain the National Seeds Register containing details of varieties that are registered. This will help the Board to coordinate and assist activities of the States in their efforts to provide quality seeds to farmers.
• The NSB will prescribe minimum standards (of germination, genetic characteristics, physical purity, seed health, etc.) as well as suitable guidelines for registration of seed and planting materials.
• Provisional registration would be granted on the basis of information filed by the applicant relating to trials over one season to tide over the stipulation of testing over three seasons before the grant of registration.
• Government will have the right to exclude certain kinds or varieties from registration to protect public order or human, animal and plant life and health, or to avoid serious prejudice to the environment.
• The NSB will have the power to cancel the registration granted to a variety if the registration has been obtained by misrepresentation or concealment of essential data, the variety is obsolete and has outlived its utility and if the prevention of commercial exploitation of such variety is necessary in the public interest.
• Registration of Seed Processing Units will be required if such Units meet the prescribed minimum standards for processing the seed.
• Seed Certification will continue to be voluntary. The Certification tag/label will provide an assurance of quality to the farmer.
• The Board will accredit individuals or organisations to carry out seed certification including self-certification on fulfillment of criteria as prescribed.
• To meet quality assurance requirements for export of seeds, Seed Testing facilities will be established in conformity with ISTA and OECD seed certification programmes.
• The State Government, in conformity with guidelines
and standards specified by the Board, will establish one or more State Seed Testing Laboratories or declare any Seed Testing Laboratory in the Government or non-Government Sector as a State Seed Testing Laboratory where analysis of seeds will be carried out in the prescribed manner.
• Farmers will be encouraged to use certified seeds to ensure improved performance and output.
• Farmers will retain their right to save, use, exchange, share or sell their farm seeds and planting materials without any restriction. They will be free to sell their seed on their own premises or in the local market without any hindrance provided that the seed is not branded. Farmers' right to continue using the varieties of their choice will not be infringed by the system of compulsory registration.
• Stringent measures would be taken to ensure the availability of high quality of seeds and check the sale of spurious or misbranded seeds.
Seed Distribution and Marketing
• The availability of high quality seeds to farmers through an improved distribution system and efficient marketing set-up will be ensured to facilitate greater security of seed supply.
• For promoting efficient and timely distribution and marketing of seed throughout the country, a supportive environment will be provided to encourage expansion of the role of the private seed sector. Efforts will be made to achieve better coordination between State Governments to facilitate free Inter-State movement of seed and planting material through exemption of duties and taxes.
• Private Seed Sector will be encouraged and motivated to restructure and reorient their activities to cater to non-traditional areas.
• A mechanism will be established for collection and dissemination of market intelligence regarding preference of consumers and farmers.
• A National Seed Grid will be established as a data-base for monitoring of information on requirement of seed, its production, distribution and preference of farmers on a district-wise basis.
• Access to term finance from Commercial Banks will be facilitated for developing efficient seed distribution and marketing facilities for growth of the seed sector.
• Distribution and marketing of seed of any variety, for the purpose of sowing and planting will be allowed only if the said variety has been registered by the National Seeds Board.
• National Seeds Board can direct a dealer to sell or distribute seeds in a specified manner in a specified area if it is considered necessary to the public interest.
Infrastructure Facilities
• To meet the enhanced requirement of quality/certified seeds, creation of new infrastructure facilities along with strengthening of existing facilities, will be promoted.
• National Seed Research and Training Center will be set up to impart training and build a knowledge base in various disciplines of the seed sector.
• The Central Seed Testing Laboratory will be established at the National Seed Research and Training Center to perform referral and other functions as required under the Seeds Act.
• Seed processing capacity will be augmented to meet the enhanced requirement of quality seed.
• Modernisation of seed processing facilities will be encouraged in terms of modern equipment and latest techniques, such as seed treatment for enhancement of performance of seed, etc.
• Conditioned storage for breeder and foundation seed and aerated storage for certified seed would be created in different regions.
• A computerized National Seeds Grid will be established to provide information on availability of different varieties of seeds with production agencies, their location, quality etc. This network will facilitate optimum utilisation of available seeds in every region.
• Initially, seed production agencies in the public sector would be connected with the National Seed Grid, but progressively the private sector will be encouraged to join the Grid for providing a clear assessment of demand and supply of seeds.
• State Governments, or the National Seeds Board in consultation with the concerned State Government, may establish Seed Certification Agencies.
• State Governments will establish appropriate systems for effective execution and implementation of the objectives and provisions of the Seeds Act.
Transgenic Plant Varieties
• Biotechnology will play a vital role in the development of the agriculture sector. This technology can be used not only to develop new crops/varieties, which are tolerant to disease, pests and abiotic stresses, but also to improve productivity and nutritional quality of food.
• All genetically engineered crops/varieties will be tested for environment and bio-safety before their commercial release, as per the regulations and guidelines of the Environment Protection Act (EPA), 1986.
• The EPA, 1986, read with the Rules, 1989 would adequately address the safety aspects of transgenic seeds/planting materials. A list will be generated from Indian experience of transgenic cultivars that could be rated as environmentally safe.
• Seeds of transgenic plant varieties for research purposes will be imported only through the National Bureau of Plant Genetic Resources (NBPGR) as per the EPA, 1986.
• Transgenic crops/varieties will be tested to determine their agronomic value for at least two seasons under the All India Coordinated Project Trials of ICAR, in coordination with the tests for environment and bio-safety clearance as per the EPA before any variety is commercially released in the market.
• After the transgenic plant variety is commercially released, its seed will be registered and marketed in the country as per the provisions of the Seeds Act.
• After commercial release of a transgenic plant variety, its performance in the field, will be monitored for at least 3 to 5 years by the Ministry of Agriculture and State Departments of Agriculture.
• Transgenic varieties can be protected under the PVP legislation in the same manner as non-transgenic varieties after their release for commercial cultivation.
• All seeds imported into the country will be required to be accompanied by a certificate from the Competent Authority of the exporting country regarding their transgenic character or otherwise.
• If the seed or planting material is a product of transgenic manipulation, it will be allowed to be imported only with the approval of the Genetic Engineering Approval Committee (GEAC), set up under the EPA, 1986.
• Packages containing transgenic seeds/planting materials, if and when placed on sale, will carry a label indicating their transgenic nature. The specific characteristics including the agronomic/yield benefits, names of the transgenes and any relevant information shall also be indicated on the label.
• Emphasis will be placed on the development of infrastructure for the testing, identification and evaluation of transgenic planting materials in the country.
Import of Seeds and Planting Material
• The objective of the import policy is to provide the best planting material available anywhere in the world to Indian farmers, to increase productivity, farm income and export earnings, while ensuring that there is no deleterious effect on environment, health and bio-safety.
• While importing seeds and planting material, care will be taken to ensure that there is absolutely no compromise on the requirements under prevailing plant quarantine procedures, so as to prevent entry into the country of exotic pests, diseases and weeds detrimental to Indian agriculture.
• All imports of seeds will require a permit granted by the Plant Protection Advisor to the Government of India, which will be issued within the minimum possible time frame.
• All import of seeds and planting materials, etc. will be allowed freely subject to EXIM Policy guidelines and the requirements of the Plants, Fruits and Seeds (Regulation of import into India) Order, 1989 as amended from time to time. Import of parental lines of newly developed varieties will also be encouraged.
• Seeds and planting materials imported for sale into the country will have to meet minimum seed standards of seed health, germination, genetic and physical purity as prescribed.
• All importers will make available a small sample of the imported seed to the Gene Bank maintained by NBPGR.
• The existing policy, which permits free import of seeds of vegetables, flowers and ornamental plants, cuttings, saplings of flowers, tubers and bulbs of flowers by certain specified categories of importers will continue. Tubers and bulbs of flowers will be subjected to post-entry quarantine.
• After the arrival of consignments at the port of entry, quarantine checks would be undertaken; which may include visual inspection, laboratory inspection, fumigation and grow-out tests. For the purpose of these checks, samples will be drawn and the tests will be conducted concurrently.
Export of Seeds
• Given the diversity of agro-climatic conditions, strong seed production infrastructure and market opportunities, India holds significant promise for export of seeds.
• Government will evolve a long term policy for export of seeds with a view to raise India's share of global seed export from the present level of less than 1% to 10% by the year 2020.
• The export policy will specifically encourage custom production of seeds for export and will be based on long term perspective, dispensing with case to case consideration of proposals.
• Establishment and strengthening of Seeds Export Promotion Zones with special incentives from the Government will be facilitated.
• A data bank will be created to provide information on the International Market and on export potential of Indian varieties in different parts of the world.
• A data base on availability of seeds of different crops to assess impact of exports on domestic availability of seeds will be created.
• Promotional programmes to improve the quality of Indian seeds to enhance its acceptability in the International Market will be taken up.
• Testing and certification facilities will be established in conformity with international requirements.
Promotion of Domestic Seed Industry
• Incentives will be provided to the domestic seed industry to enable it to produce seeds of high yielding varieties and hybrid seeds at a faster pace to meet the challenges of domestic requirements.
• Seed Industry will be provided with a congenial and liberalized climate for increasing seed production and marketing, both domestic and international.
• Membership to International Organisations and Seed Associations like ISTA, OECD, UPOV, ASSINSEL, WIPO, at the National level or at the level of individual seed producing agencies, will be encouraged.
• Emphasis will be given to improving the quality of seed produced and special efforts will be directed towards improving the quality of farmers' saved seeds.
• Financial support for capital investment, working capital and infrastructure strengthening will be facilitated through NABARD/Commercial Banks/Cooperative Banks.
• Tax rebate/concessions will be considered on the expenditure incurred on in-house research and development of new varieties and other seed related research aspects. In order to develop a competitive seed market, the States will be encouraged to remove unnecessary local taxation on sales of seeds.
• To encourage seed production in non-traditional areas including backward areas, special incentives such as transport subsidy will be provided to seed producing agencies operating in these marginalised areas.
• Reduction of import duty will be considered on machines and equipment used for seed production and processing which are otherwise not manufactured in the country.
Strengthening of Monitoring System
• The Department of Agriculture & Cooperation (DAC) will supervise the overall implementation and monitoring of the National Seeds Policy.
• The physical infrastructure in terms of office automation, communication facilities, etc., in DAC will be augmented in a time bound manner.
• The technical capacity of DAC need to be augmented and strengthened to undertake the additional work relating to implementation of National Seeds Policy, implementation of PVP&FR Bill, Seeds Act, Import and Export of Seeds, etc.
• Capacity building, including National and International training and participation in Seminars/Workshops will be organized for concerned officials.
Conclusion
The Government of India trusts that the National Seeds Policy will receive the fullest support of State Governments/Union Territory Administrations, State Agricultural Universities, plant breeders, seed producers, the seed industry and all other stakeholders, so that it may serve as a catalyst to meet the objectives of sustainable development of agriculture, food and nutritional security for the population, and improved standards of living for farming communities.
The National Seeds Policy will be a vital instrument in attaining the objectives of doubling food production and making India hunger free. It is expected to provide the impetus for a new revolution in Indian agriculture, based on an efficient system for supply of seeds of the best quality to the cultivator.
The National Seeds Policy will lay the foundation for comprehensive reforms in the seed sector. Significant changes in the existing legislative framework will be effected accompanied by programmatic interventions. The Policy will also provide the parameters for the development of the seed sector in the Tenth and subsequent Plans. The progress of implementation of the Policy will be monitored by a High Level Review Committee.
G.S.R.738(E)-In exercise of the powers conferred by section 109 of the Multi-State Cooperative Societies Act 1984 (51 of 1984), the Central Government hereby make the following rules, namely:-
PRELIMINARY
1. Short title and commencement-
(1) These rules may be called the Multi-State Cooeprative Societies (Registration, Membership, Direction and Management, Settlement of Disputes, Appeal and Revision) Rules, 1985
(2) Definitions-In these rules, unless the context otherwise requires:-
(i) "Act" means the Multi-State Cooperative Societies Act, 1984 (51 of 1984).
(ii) "Form" means a form appended to these rules.
(iii) "General meeting" means a meeting of the general body including a representative general body referred to in section 29.
(iv) "Section" means a section of the Act.
(v) "Schedule" means Schedule appended to these rules.
(vi) Words and expressions defined in the Act and used but not defined in these rules shall have the meanings respectively assigned to them in the Act.
REGISTRATION
3. Application for registration-
(1) An application for registration of a multi-State cooperative society under sub-section(1) of section 6 shall be made in Form 1 and shall, subject to the provisions of sub-section (2) of section 6 and sub-rules (2) and (3) be signed by the applicant and be accompanied by:
(a) four copies of the proposed bye-laws of the multi-State cooperative society, duly signed by each of the persons who sign the application for registration;
(b) a list of persons who have contributed to the share capital, together with the amount contributed by each of them, and the entrance fee paid by them;
(c) a certificate from the bank or banks stating the credit balance in favour of the proposed multi-State cooperative society;
(d) a scheme showing the details explaining how the working of the multi-State cooperative society will be economically sound;
(e) certified copy of the resolution of the promoters which shall specify the name and address of one of the applicants to whom the Central Registrar may address of one of the applicants to whom the Central Registrar may address correspondence under the rules before registration and dispatch or hand over registration documents.
(2) Where any member of a multi-State cooperative society to be registered is a multi-State cooperative society or a cooperative society, the Chairman or Chief Executive of such multi-State cooperative society or cooperative society, as the case may be, shall be authorised by that board by a resolution, to sign the application for registration and bye-laws on its behalf, and a copy of such resolution shall be appended to the application.
(3) Where any member of multi-State cooperative society to be registered is a Government company, a corporate body or a society registered under the Societies Registration Act, 1860(21) of 1860 such member shall duly authorise any person to sign the application for registration and the bye-laws on its behalf and a copy of such resolution giving such authority shall be appended to the application.
(4) A copy of the resolution indicating the name of one or more applicants, who are authorised to make alterations or additions to the proposed bye-laws submitted with the application, as may be suggested by the Central Registrar, shall be submitted.
(5) The application shall either be sent by registered post or delivered by hand to the Central Registrar.
4. Registration-
(1) On receipt of an application under rule3, the Central Registrar shall enter particulars of the application in the register of applications to be maintained in Form II, give a serial number to the application and issue a receipt in acknowledgement thereof.
(2) If the Central Registrar is satisfied that the proposed multi-State cooperative society has complied with the requirements of the Act and the rules he may register the society and its bye-laws.
(3) Where the Central Registrar registers a multi-State cooperative society, he shall issue to the said society a certificate of registration signed by him and bearing his official seal containing registration number and date of registration of the said society, The Central Registrar shall also issue, alongwith the certificate of registration, a certified copy of the Bye-laws, as approved and registered by him, which shall be the registered bye-laws of the said society for the time being in force.
5. Extension of period of registration of societies and bye-laws, etc.-The Central Government may, on the report of the Central Registrar, allow such further period not exceeding six months for registration of-
(i) the multi-State cooperative society under proviso to sub-section (3) of section 7;
(ii) the amendment of bye-laws of the multi-State cooperative society under proviso to sub-section (2) of section 9; and
(iii) the amend of bye-laws extending the jurisdiction of the cooperative society under proviso to sub-section(2) of section 18.
6. Refusal of registration-Where the Central Registrar refuses to register a multi-State cooperative society under sub-section(2) of section 7, he shall communicate the order of refusal together with reasons therefor to the person authorised under clause(e) of sub-rule (1) of rule 3 to the said society.
7. Subject matter of bye-laws-The multi-State cooperative society may make bye-laws in respect of the following matters-
(i) the name and registered address of the multi-State cooperative society and its branches;
(ii) the area of operation;
(iii) the objects for which the multi-State cooperative society is established and the purpose for which its funds may be applied;
(iv) the privileges, rights, duties and liabilities of members including nominal members: Provided that the nominal members shall not be entitled to any share in any form whatsoever in the assets or profits of the multi-State cooperative society and shall not have a right to vote:
(vi) the consequence of default in payment of any sum due by members;
(vii) the procedure for withdrawal, removal or expulsion of members;
(viii) the manner in which and the limits upto which the funds of the society may be raised the maximum share capital which any member may hold and the purpose to which the funds may be utilised;
(ix) the mode of appointment and removal of the directors and other officers of the multi-State cooperative society and the duties and powers of the board;
(x) the mode of convening and conducting annual and special meetings of the general body and of the board, issue of notices and the business which may be transacted thereat;
(xi) the disposal of net profits;
(xii) the manner of making, altering and abrogating bye-laws;
(xiii) the powers, duties and functions of the Chairman or President and his removal on his losing support of the majority;
(xiv) the powers and duties of the Chief Executive in addition to those mentioned in section 45;
(xv) the authorisation of an officer or officers to sign documents and to institute and defend suits and other legal proceedings on behalf of the multi-State cooperative society;
(xvi) the mode of custody and investment of funds;
(xvii) the mode of keeping the accounts;
(xviii) the strength of the board;
(xix) the manner in which penalty may be levied on a member found guilty of breach of the bye-laws;
(xx) the appointment of a provisional board, wherever necessary;
(xxi) the manner of sending notices;
(xxii) the formation or use of reserve fund;
(xxiii) the purpose for which surplus if any shall be utilised in the event of the winding-up of the multi-State cooperative society;
(xxiv) the conduct of elections to the board and other bodies of a multi-State cooperative society including the number of member to be elected by different constituencies and appointment of returning officers;
(xxv) the procedure to be followed in cases of withdrawal, ineligibility and death of members;
(xxvi) the condition, if any, under which the transfer of share or interest of a member may be permitted;
(xxvii) the method of appropriating payments made by members from whom money are due;
(xxviii) the constitution and maintenance of various funds to be maintained under the provisions of the Act or rules;
(xxix) the constitution of a representative general body consisting of delegates or members of the multi-State cooperative society and the method of election of such delegates to exercise the powers of the general body;
(xxx) the mode of conducting business such as manufacture, purchase, stock taking and other allied matters;
(xxxi) In the case of cooperative banks and multi-State thrift and credit societies;
(a) the maximum loan admissible per member;
(b) the maximum rate of interest on loans to members;
(c) the conditions on which loans may be granted to members;
(d) the procedure for grant of loans and advances and for the grant of extension of time and for repayment of such loans, advances, etc;
(e) the circumstances under which a loan may be recalled.
8. Amendment of bye-laws-
(1) the amendment to the bye-laws of a multi-State cooperative society may be made by a resolution passed by a two-third majority of the members present and voting at general meeting of the society.
(2) No such resolution shall be valid unless notice of the proposed amendment has been given to the members of the multi-State cooperative society in accordance with the bye-laws.
(3) In every case in which a multi-State cooperative society proposes to amend its bye-laws, an application shall be made to the Central Registrar together with:
(a) a copy of the resolution referred to in sub-rule(1)
(b) the particulars indicating the date of the general meeting at which the amendments were made, the number of days notice given to convene the general meeting, the total number of members on the date of such meeting, the number forming the quorum, the number of members present at the meeting, the number exercising the right of voting and the number voting for the amendment;
(c) a copy of the relevant bye-laws in force with the amendment proposed to be made together with reasons justifying such amendments
(d) four copies of the text of the bye-laws as they would stand after the amendment, signed by the officers duly authorised in this behalf by the board of the multi-State cooperative society;
(e) a copy of the notice given to the members of the multi-State cooperative society and the proposal to amend the bye-laws;
(f) a certificate signed by the presiding authority of the general meeting that the procedure specified in sub-rule,(I) and sub-rule(2) and in the bye-laws, has been followed; and
(g) any other particulars that may be required by the Central Registrar in this behalf.
(4) Every such application shall be made within sixty days from the date of the general meeting at which such amendment was passed.
(5) Where the Central Registrar refuses to register an amendment of the bye-laws of a multi-State cooperative society he shall pass an order of refusal together with the reasons there for and communicate the same by registered post to the Chief Executive of the multi-State cooperative society within seven days from the date of order of refusal.
(6) The procedure outlined above in this rule shall apply to the amendment of the bye-laws of cooperative society desiring to convert itself into a multi-State cooperative society as per provisions of section 18.
9. Maintenance of registration file by the society-
(1) Every multi-State cooperative society shall maintain at its registered address a registration file containing:
(a) the certificate of registration;
(b) the registered bye-laws;
(c) all registered amendments to the bye-laws alongwith the certificates of registration of amendments;
(d) a copy of the Act and the rules.
(2) The registration file shall be kept open for inspection at all times during working hours to the Central Registrar or any other officer authorised by him or any member of the multi-State cooperative society.
10. Change in name of multi-State cooperative society-
(1) The name of a multi-State cooperative society may be changed under section 11 so, however, that it does not refer to any caste of religious denomination and is not inconsistent with the objects of the multi-State cooperative society.
(2) Every change in the name of the multi-State cooperative society shall be made by an amendment of its bye-laws.
(3) After the change in the name is approved by the Central Registrar the multi-State cooperative society shall send the original registration certificate for amendment to the Central Registrar who shall return the same to the multi-State cooperative society duly amended.
MEMBERS OF MULTI-STATE COOPERATIVE SOCIETIES AND THEIR RIGHTS AND LIABILITIES
11. Conditions to be complied with for admission for membership-
(1) No person shall be admitted as a member of a multi-State cooperative society unless:
(a) he has applied in writing in the form, if any, laid down by the multi-State cooperative society or in the form specified by the Central Registrar, if any, for membership;
(b) his application is approved by the board of the multi-State cooperative society;
(c) he has purchased the minimum number of shares and paid the value thereof in full or in part in such calls as may be laid down in the bye-laws of the multi-State cooperative society;
(d) he has fulfilled all other conditions laid down in the Act, the rules and the bye-laws;
(e) in the case of a multi-State cooperative society or a cooperative society or the national cooperative society or any other corporation owned or controlled by the Government or any Government or any Government company or body of persons whether incorporated or not, the application for membership shall be accompanied by a resolution authorising it to apply for such membership.
(2) No person shall be eligible for admission as a member of a multi-State cooperative society if he:
(a) has not attained the age of 18 years;
(b) has been adjudged by a competent court to be an insolvent or an undischarged insolvent;
(c) has been sentenced for any offence, other then offence of a political character or an offence not involving moral turpitude and dishonesty and a period of five years has not elapsed from the date of expiry of the sentence.
(3) Notwithstanding anything contained in these rules or the bye-laws of the multi-State cooperative society, if a member becomes or has already become subject to any disqualifications specified in sub-rule (2) he shall be deemed to have ceased to be a member of the society from the date when the disqualification was incurred.
(4) No individual being a member of a primary level multi-State cooperative society or a multi-State credit society, or a multi-State urban cooperative bank, shall be the member of any other multi-State cooperative society or cooperative society of the same class without the general or special permission of the Central Registrar and where an individual has become a member of two such cooperative societies aforesaid, than either or both of the societies shall be bound to remove him from membership on written requisition from the Central Registrar to that effect.
(5) No multi-State cooperative society shall admit members within thirty days prior to the date of the meeting of its general body.
12. Individual members in the National Cooperative Union of India-The ex-presidents of the National Cooperative Union of India Limited, New Delhi who have served their full term of office and other individuals not exceeding 15 in number with the knowledge and experience in the field of cooperation may be admitted as members of the National Cooperative Union of India Limited, New Delhi, provided that: The ex-President and other individuals admitted as members shall not be eligible to vote or contest in any election in the National Cooperative Union of India Limited.
13. Refund of shares-The total refund of share capital of a multi-State cooperative society in any cooperative year shall not exceed 10 per cent of the paid-up share capital of the multi-State cooperative society on the last day of the cooperative year immediately preceding.
14. Nomination of heir-
(1) For the purpose of transfer of his share or interest under sub-section (1) of section 27, a member of a multi-State cooperative society may nominate a person to whom in the event of his death, his share or interest shall be transferred. Such member may, from time to time, revoke or vary such nomination.
(2) A nomination made by a member shall not be valid and shall not in the event of death of the member have effect unless:
(a) it is made in writing and is signed by the member in the presence of two witnesses attesting the same;
(b) it is recorded in the books of multi-State cooperative society, kept for the purpose.
15. Procedure of ascertaining the value of share or interest of a member-Where the member of a multi-State cooperative society ceases to be a member thereof, the sum representing the value of his share or interest in the capital of the multi-State cooperative society to be paid to him or his nominee, or heir or legal representative, as the case may be shall be ascertained in the following manner, namely:
(i) In the case of a multi-State cooperative society with unlimited liability, it shall be the actual amount received by the multi-State cooperative society in respect of such share or interest;
(ii) In the case of a multi-State cooperative society with limited liability, it shall be the amount arrived at by the valuation based on the financial position of such society as shown in the last audited balance sheet preceding cessation of membership; Provided that the amount so ascertained shall not exceed the actual amount received by the multi-State cooperative society in respect of such share or interest.
16. Restriction on holding of shares-No member referred to in clauses (a) and (b) of sub-section 1 of section 19 shall hold more than one-fifth of the share capital of the multi-State cooperative society or have or claim any interest in the shares of the multi-State cooperative society exceeding ten thousand rupees, whichever is less.
17. Share not to be hypothecated-The shares of a multi-State cooperative society shall not be hypothecated to that society or any other multi-State cooperative society by the members as a security for a loan.
18. Prohibition on admission of members and transfer of shares on the eve of general meeting-
(1) No multi-State cooperative society shall admit members or approve the transfer of shares within thirty days prior to the date fixed for the general body meeting.
(2) Any person addressed as member and any person in whose favour the transfer of share have been approved in contravention of this rule shall not have the right to vote at the said general meeting.
19. Disqualification of a defaulting member-A member of a multi-State cooperative society or a representative of defaulting member society shall not be eligible to seek election to any office in, or continue, as a member of the board of such multi-State cooperative society if he or the society of which he is the representative, commits default in the payment of annual subscription or other sums due to such multi-State cooperative society. A member, or a representative of a defaulting member society, if holding any office in a multi-State cooperative society, shall forfeit the right to hold such office with effect from the date on which he, or the society of which he is the representative, becomes defaulter as per bye-laws of the multi-State cooperative society or as determined by the board of directors of the multi-State cooperative society.
DIRECTION AND MANAGEMENT OF MULTI-STATE COOPERATIVE SOCIETIES
20. Annual general meeting-Every multi-State cooperative society shall hold the annual general meeting of its members (referred to in section 30) within six months of the close of the cooperative year.
21. Constitution of smaller general body-
(1) Without prejudice to the provision of sub-section (3) of section 29, a multi-State cooperative society with a membership exceeding one thousand may provide in its bye-laws for the constitution of a smaller body. The smaller general body so constituted shall exercise such powers as may be specified in the bye-laws of the multi-State cooperative society.
(2) The bye-laws of such society may specify the principle or the basis for constitution of a representative general body and procedures thereto.
22. Interim board and general meeting for first election-
(1) The board of directors selected by the applicants for the registration of the multi-State cooperative society shall hold office till the directors are elected in the first general meeting of the multi-State cooperative society.
(2) The first general meeting for this purpose shall be held with six months of the registration of the multi-State cooperative society.
23. Notice for general meeting-Annual general meeting of a multi-State cooperative society may be called by giving not less than fourteen days notice in writing.
(2) Special general meeting of a multi-State cooperative society may be called by giving not less than seven days notice in writing.
(3) When a general meeting is called by the Central Registrar under the second proviso to sub section (1) of section 30, he may determine:-
(i) the period of notice of such meeting which shall not be less than seven days;
(ii) the time and place of such meeting and
(iii) the subjects to be considered in such meeting.
The Central Registrar or any person authorised by him may preside over such meeting.
(4) The notice of general meeting shall be accompanied by a copy each of the audited balance sheet, profit and loss account, together with the auditor s report thereon relating to the proceeding year and the report of the board.
24. Quorum at a general meeting-
(1) Unless otherwise provided in the bye-laws, the quorum for a general meeting shall be one-fifth of the total number of members of the multi-State cooperative society.
(2) No business shall be transacted at any general meeting unless there is a quorum at the time when the business of the meeting is due to commence.
(3) If within half-an hour from the time appointed for the meeting a quorum is not present, the meeting shall stand adjourned: Provided that a meeting which has been called on requisition of the members shall not be adjourned but dissolved.
(4) If at any time during the meeting sufficient number of members are not present to form the quorum the Chairman or the member presiding over the meeting on his own, or on his attention being drawn to this fact, shall adjourn the meeting and the business that remains to be transacted at this meeting, if any, shall be disposed of in the usual manner at the adjourned meeting.
(5) Where a meeting is adjourned under sub-rule (3) or sub-rule (4) the adjourned meeting shall be held either on the same day or on such date, time and place as may be decided by the Chairman or the member presiding over the meeting.
(6) No business shall be transacted at any adjourned meeting other than the business on the agenda of the adjourned meeting.
(7) No quorum shall be necessary in respect of an adjourned general meeting.
25. Voting in general meeting-
(1) All resolutions which are put to vote at the general meeting shall be decided by a majority of the members present and voting unless otherwise required under the Act, these rules or the bye-laws of the multi-State cooperative society. Voting shall be by show of hands unless a poll is demanded by at least ten members present at the meeting. If no poll is demanded, a declaration by the Chairman/President of such meeting that a resolution has been carried or lost and an entry to that effect in the minutes of the proceedings shall be conclusive proof of the fact that such resolution has been duly carried or lost.
(2) If a poll is demanded, the votes shall be taken by ballot as may be decided by the Chairman of the meeting unless otherwise specified in the bye-laws in this behalf, and the result of the poll shall be deemed to be the decision of the general meeting regarding the resolution over which the poll is demanded.
(3) When a poll is taken, the number of members voting for or against a resolution over which the poll is demanded.
(3) When a poll is taken, the number of members voting for or against a resolution shall be recorded in the minutes of the proceedings.
(4) In the case of equality of votes whether on a show of hands or on a poll, the Chairman of the meeting at which show of hands takes place or the poll is taken, shall have a second or casting vote.
26. Minutes of the general meeting-Minutes of the proceedings of the general meeting shall be entered in a minutes book kept for the purpose and shall be signed by the Chairman of the meeting. The minutes so signed, shall be an evidence of the correct proceedings of that meeting.
27. Procedure for conduct of elections-
(1) Notwithstanding anything contained in these rules and without prejudice to the generality of the powers of the Central Government under sub-section (1) of section 35, the election of the members of the board of directors of the national cooperative society specified in the Second Schedule to the Act and such other multi-State cooperative society or class of multi-State cooperative societies as the Central Government may, by general or special order, notify, shall be conducted by such returning officer or officers as may be appointed by the Central Registrar in this behalf. The election in such societies shall be conducted in the manner specified in the Schedule.
(2) Notwithstanding anything contained in sub-rule(1) where a requisition to appoint a returning officer to conduct an election is received from not less than 1/5 of the total number of members eligible to vote in a multi-State cooperative society sixty days in advance of the date for election, the Central Registrar shall appoint a returning officer to conduct election in the manner specified in the Schedule.
28. Election of office bearers-As soon as the members of the board have been elected the returning officer referred to in sub-rule(1) of rule 27 or the person presiding over the general meeting, as the case may be, shall, notwithstanding anything contained in the bye-laws of the multi-State cooperative society specifying the period of notice, convene a meeting of the newly elected members of the board for the purpose of election of the President/Chairman, Vice-President/Vice-Chairman or other elected office-bearers of the society, by whatever name they are called. Such a meeting of the board shall not be conducted unless a majority of the number of members of the newly constituted board, as per bye-laws, are present.
29. Custody of record of election conducted-After declaration of the result of election, the returning officer, (referred to under sub-rule(1) of rule 27 or the Chairman of the meeting, as the case may be shall hand over the ballot papers and records, if any, relating to the election of the members of the board of directors and the office bearers to the Chief Executive of the multi-State cooperative society in sealed cover. They shall be preserved by the Chief Executive of the society for a period of six months from the date of election or till such time a dispute or an appeal thereof regarding elections, if any, is disposed of, whichever is later, and shall thereafter be destroyed.
30. Restrictions and Conditions for payment of honorarium to the Chairman and the President. A multi-State cooperative society may provide in its bye-laws for the payment of honorarium to the elected Chairman or President of the board of directors, out of profits, in respect of specific services rendered by him, on such scale as may be laid-down in the bye-laws of such a society, but in no case exceeding the limit and terms and conditions hereunder referred to:
(a) that the society s financial position is sound;
(b) that for its recurring expenses it does not depend on grants or subsidies from the Central Government or the State Government; and
(c) that the honorarium to be paid, whether as a consolidated amount or in the shape of daily allowance in respect of the days of halt at the headquarters, in addition to the sitting fees in respect of board meeting as and when such meetings are held, is limited to rupees twenty-five thousands per year.
31. Central Government or State Government nominees on the board-
(1) Where the Central Government or the State Government has subscribed to the share capital of a multi-State cooperative society, or has guaranteed the repayment of principal and payment of interest on debentures issued by such society, or has guaranteed the repayment of principal and payment of interest on loans and advances to such society, or has provided grant or subsidy to such society, the Central Government or the State government as the case may be, or any other person authorised by the Central Government or the State Government, shall have the right to nominate on the board such number of persons not exceeding 3 or 1/3rd of the total number of members thereof, whichever is less.
(2) Notwithstanding anything contained in these rules, the bye-laws of a multi-State cooperative society may provide for the nomination by the Central or State Government of persons in excess of the limits referred to in sub-rule (1).
32. Additional measures and acts to be undertaken by the board-The board may take any of the measures or do any of the acts mentioned below as may be necessary or expedient for the purposes of carrying out its functions under the Act and the rules made thereunder:
(i) placing be fore the general body the annual report and the audit report;
(ii) Recommending the distribution of profits to the general body;
(iii) taking decisions on matters relating to withdrawals, transfer, retirement, refund or forfeiture of shares;
(iv) purchasing, selling, or otherwise acquiring or disposing of moveable property of such value as may be specified in the bye-laws;
(v) Laying down criteria for determining defaults by members;
(vi) determining the terms and conditions of collaboration with other cooperative societies and others;
(vii) sanctioning of contracts of any values, unless otherwise specified in the bye-laws of a multi-State cooperative society;
(viii) appointment of trustee or trustees, attorney or attorneys, agent or agents for the business of the multi-State cooperative society;
(ix) acceptance or rejection of resignation from the members of the board.
33. Meetings of the board-
(1) The board shall meet at least once in every quarter, provided that the total number of the meetings of the board shall not ordinarily exceed six in a year.
Provided further that this provision will not apply to multi-State thrift and credit societies.
(2) The meeting of the board of the multi-State cooperative society shall ordinarily be held at the registered office of such society.
34. Committees of the board-
(1) The board of a multi-State cooperative society may constitute an Executive Committees and other committees or sub-committee as may be considered necessary.
(2) Besides the Executive Committee, the number of other committees or sub-committees referred to in subsection (1) of section 46 shall not exceed two: Provided that the board may with the approval of the Central Registrar constitute more than two committees.
35. Constitution of National Cooperative Societies Selection Committee-
(1) The Central Government shall constitute a body to be called the National Cooperative Societies Selection Committee (hereinafter referred to as the Selection Committee) consisting of the following persons:
(i) The Secretary to the Government of India Department of Agriculture and Cooperation Chairman
(ii) The Additional Secretary to the Government of India Department of Agriculture and Cooperation dealingwith cooperation Member
(iii) Chairman of two national cooperative societies to be nominated by the Central Government Member
(iv) One expert in the management to be nominated by the Central Government Member
(v) The Managing Director National Cooperative Development Corporation Member
(vi) Central Registrar of Cooperative Societies Member Secretary
(2) The Selection Committee shall prepare list of persons eligible for appointment to the post of the Chief Executive and other managerial posts in the national cooperative societies, the maximum pay scale of which exceeds rupees four thousand per month in the manner hereinafter provided.
(3) The Central Registrar shall, on the requisition received from the national cooperative society, convene the meeting of the Selection Committee for the purpose of preparation of list for the appointments to the post or posts for which the requisition has been received.
(4) The Selection Committee shall,-
(a) take appropriate steps to advertise, circulate or otherwise call for the names for the posts referred to in sub-rule(2);
(b) screen the names received and prepare list of persons, after interview if necessary, suitable for appointment for the said posts in order of merit and forward it to the Central Government for its onward transmission to the concerned national cooperative society: Provided that in the case of the existing Chief Executive or persons employed in other managerial posts in the national cooperative society on the date of the coming into force of these rules, who are in regular employment of the society, no such reference to the Selection Committee will be necessary: Provided further that in the case of the Chief Executives or persons employed in other managerial post who are on deputation with the national cooperative society on the date of the enforcement of these rules, a reference to the Selection Committee shall be necessary on the expiry of the terms of deputation of such Chief Executives or persons.
(5) The national cooperative society shall appoint the persons to the post of the Chief Executive and other managerial posts mentioned in sub-rule (2) from the list of persons recommended by the Selection Committee.
(6) The Selection Committee may coopt two experts at the time of selection of persons according to the requirements of posts or category of posts for which the list of persons is to be prepared.
SETTLEMENT OF DISPUTES
36. Procedure in proceeding before Central Registrar-
(1) A reference to the Central Registrar of any dispute under section 74 shall be in writing. Every such reference shall be accompanied with a fee of rupees ten for the money claims not exceeding rupees fifty in all other cases.
(2) On receipt of a reference under sub-rule(1) the Central Registrar may elect to decide the dispute himself or refer it for disposal to any other person who has been invested with powers of the Central Registrar under section 76 by the Central Government.
(3) The Central Registrar or other person deciding the dispute shall record a brief note of the evidence of the parties and witnesses who appear before him and upon the evidence so recorded and after consideration of any documentary evidence produced by the parties, a decision shall be given in accordance with justice, equity and good conscience by the Central Registrar or other person deciding the dispute. The decision given shall be in writing. In the absence of any party duly summoned to attend, the dispute may be decided exparte. Exparte decision may, on sufficient cause for non-attendance being shown, be set aside by the Central Registrar or other person deciding the dispute, and the dispute ordered to be retaken on the register of disputes and disposed of: Provided that no application for setting aside an exparte decision shall lie unless made within thirty days from the date of such decision and the party for whose non-attendance such decision was made had been duly served with the notice, or in other cases within thirty days from the date of knowledge of such decision having been made.
(4) The decision shall be communicated to the parties by,
(i) pronouncement of the decision; or
(ii) registered post to any party which may be absent on the date the decision is given.
(5) The Central Registrar or the person deciding the dispute, shall have power to appoint or remove a guardian for the party to the dispute, if any such party is a minor or a person with unsound mind or mental infirmity, and is incapable of protecting his interest.
(6) A duly certified copy of the decision shall, on application, be given to the parties to the dispute by the Central Registrar or the person deciding the dispute, on payment of copying charges at the rate of rupees one per page.
37. Appeals against order of Central Registrar-For the purpose of clause (a) of sub-section (2) of section 90 of the Act, an appeal against any decision or order shall be made if the decision or order was made by:-
(a) the Central Registrar appointed under sub-rule (1) of section 4 of the Act, to the Secretary to the Government of India in the Department of Agriculture and Cooperation;
(b) any officer of the Central Government or any officer of the State Government of the rank of Registrar on whom powers of the Central Registrar have been conferred under sub-section (2) of section 4 of the Act, to the Additional Secretary to the Government of India in the Department of Agriculture and Cooperation;
(c) any other officer of the State Government on whom powers of Central Registrar have been conferred under sub-section(2) of section 4 of the Act, to the Chief Director (Cooperation) in the Ministry of Agriculture and Cooperation.;
38. Procedure regarding appeals and application for revision-
(1) An appeal under subsection (2) of section 90 or an application for revision under section 92 shall be either presented in person or sent by registered post to the appellate or revising authority.
(2) The appeal or the application for revision shall be in the form of a memorandum and shall be accompanied by the original or certified copy of the order appealed from or sought to be revised.
(3) Every appeal or application for revision shall:-
(a) specify the name and address of the appellant or applicant and also the name and address of the respondent, as the case may be;
(b) state by whom the order appealed from or sought to be revised was made;
(c) set forth concisely and under distinct heads, the grounds of objection to the order appealed from or sought to be revised together with a memorandum of evidence;
(d) State precisely the relief which the appellant or the applicant claims; and
(e) give the date of order appealed from or sought to be revised;
(4) Where,-
(a) an appeal under sub-section(2) of section 90 is preferred after the expiry of sixty days specified in the said sub-section; or
(b) an application for revision under sub-section(1) of section 92 is made after the expiry of ninety days from the date on which the decision or order to which the application relates is communicated to the applicant; it shall be accompanied by a petition supported by an affidavit setting forth the facts on which the appellant or the applicant relies, to satisfy the appellate or revising authority that he had sufficient cause for not preferring the appeal of the application for revision within the period mentioned in clauses (a)and (b).
(5) On receipt of the appeal or the application for revision, the appellate or revising authority shall as soon as possible examine it and ensure that:
(a) the person presenting the appeal or the application has the locus standi to do so;
(b) it is made within the prescribed time limit; and
(c) it conforms to all the provisions of the Act and these Rules.
(6) The appellate or revising authority may call upon the appellant or the applicant for revision to remedy the defects if any, or furnish such additional information as may be necessary, within a period of fifteen days of the receipt of the notice to do so. If the appellant or the applicant for revision fails to remedy the defects or furnish the additional information called for within the said period, the appeal or the revision petition may be dismissed.
(7) The appellate or revising authority may, before passing orders under section 90 or under section 92 obtain from any subordinate officer such further information in regard to the enquiry or the proceedings for the purpose of verifying the regularity of such proceedings or the correctness, legality or propriety of any decision passed or order made therein. The appellate or revising authority may also call for and obtain from the parties connected with such enquiry or proceedings such information as is necessary with reference to the examination of the records of enquiry or proceedings and the information obtained from the subordinate officer.
(8) The appellate or revising authority shall on the basis of the enquiry conducted and with reference to the records examined, pass such order on the appeal or on the application for revision as may seem just and reasonable.
(9) Every order of the appellate or revising authority under sub-section (2) of section 90 or 92 shall be in writing and it shall be communicated to the appellant or applicant and to such other parties as in the opinion of that authority are likely to be affected by the decision or order and to the officer concerned against whose order the appeal of the application for revision was made.
39. Application for review-
(1) Every application under section 93 shall be in the form of a memorandum setting forth concisely and under distinct heads the new and important facts which after the exercise of the due diligence, were not then within the knowledge of the applicant or could not be produced by him when the order was made or mistake or errors apparent on the face of the record or order reasons on the basis of which review is sought. It shall be accompanied by a memorandum of evidence.
(2) The application shall be accompanied by the original or a certified copy of the order to which the application relates.
(3) No application for review shall be entertained unless it is accompanied by such additional number of copies as there are parties to the original order.
(4) The application shall, so far as it may be necessary, be disposed of by the appellate authority in such manner as may be deemed fit, provided that no order prejudicial to any person shall be passed unless such person has been given an opportunity of making his representation.
THE MULTI-STATE COOPERATIVE SOCIETIES RULES, 1985
(Privileges, Properties and Funds, Accounts, Audit, Winding up and Execution of Decrees, Orders and Decisions) Rules, 1985
GSR 812(E).-In exercise of the powers conferred by section 109 of the Multi-State Cooperative Societies Act, 1984 (51 of 1984), the Central Government hereby makes the following rules, namely:
PRELIMINARY
1. Short title and extent-
(1) These rules may be called the Multi-State Cooperative Societies (Privileges, Properties and funds, Accounts, Audit, Winding up and Execution of Decrees, Orders and Decisions) Rules, 1985.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions-In these rules, unless the context otherwise requires,
(i) "Act" means the Multi-State Cooperative Societies Act, 1984 (51 of 1984);
(ii) "authorised officer" means an officer authorised by the Central Government for the purpose of Section 95;
(iii) "decree" means any decree of a civil court and includes any decision or order referred to in section 85;
(iv) "decree holder" means any person holding a decree as defined in clause (iii);
(v) "defaulter" means any multi-State cooperative society, any cooperative society, ember or any other person committing default;
(vi) "form" means a Form appended to these rules;
(vii) "general meeting" means a meeting of the general body including a representative general body referred to in section 29;
(viii) "Judgement debtor" means any multi-State cooperative society against which or any person against whom a decree has been obtained;
(ix) "recovery officer" means any person authorised to exercise the powers of the Central Registrar under section 85;
(x) "sale officer" means a person authorised by the Central Registrar, by general or special order, to attach and sell the property of judgement-debtor or to execute any decree by attachment and sale of property;
(xi) "section" means a section of the Act;
(xii) words and expressions defined in the Act and used but not defined in these rules shall have the meanings respectively assigned to them in the Act.
PRIVILEGES, PROPERTIES AND FUNDS OF MULTI-STATE COOPERATIVE SOCIETIES
3. Certifying copies of entries in books-
(1) For the purpose specified in sub-section (1) of section 56, a copy of any entry in a book of a multi-State cooperative society regularly kept in the course of its business shall be certified-
(i) by the Chief Executive of the society or any other member or employee authorised by the bye-laws of the society;
(ii) where an order has been passed under section 48 superseding the board and appointing an administrator or any other officer authorised by him; and
(iii) where an order has been passed under sub-section (1) of section 80 appointing a liquidator of the multi-State cooperative society, by the liquidator.
(2) Every certified copy shall bear the seal of the multi-State cooperative society.
4. Contribution towards Cooperative Education Fund-
(1) Every multi-State cooperative society shall credit a sum calculated at one percent of its net profits every year as contribution to the cooperative education fund maintained by the National Cooperative Union of India Limited, New Delhi. The cooperative education fund shall be administered by a committee nominated for that purpose consisting of the following members:
(i) The President of the national Cooperative Union of India Ltd. New Delhi Chairman
(ii) The Central Registrar Member
(iii) The Financial adviser to the Department of Agriculture & Cooperation in the Ministry of Agriculture Member
(iv) Two representatives of the multi-State cooperative societies to be nominated by the Central Government for every two years Members
(v) The Director General, National Council for Cooperative Training, New Delhi Member
(vi) The Director, Vaikunth Mehta national Institute of Cooperative Management, Pune
(2) The cooperative education fund shall be utilised for the purposes connected with the education of members and human resources development for cooperatives.
5. Disposal of net profits-The net profits of every multi-State cooperative society shall be disbursed or utilised subject to the following terms and conditions:
(a) No dividend shall be declared or paid except from out of the net profits and shall de shall be decided by the Board.
(b) No dividend shall be declared or paid while a claim due from the multi-State cooperative society to a depositor or lender remains unsatisfied.
(c) No donation made by the multi-State cooperative society out of the net profits of any year shall exceed rupees five lakhs.
6. Investment of funds-A multi-State cooperative society may invest or deposit its funds in any one or more of the following modes:-
(i) any mode provided in clauses (a) to (e)of section 62;
(ii) any post office saving bank;
(iii) any savings scheme launched by the Central or the State Government;
(iv) the shares of a corporation or other body corporate in which the Central or the State Government or both hold more than fifty percent of the shares; and
(v) the debentures floated by a corporation or a body corporate if such debentures are guaranteed by the Central or the State Government or by the Reserve Bank of India.
7. Objects and investment of reserve fund-
(1) Every multi-State Cooperative society shall maintain a reserve fund to meet any one or more of the following objects:-
(i) unforeseen losses;
(ii) claim of the creditors of the society which cannot be otherwise met; and
(iii) such other financial needs in times of special scarcity.
(2) Every multi-State cooperative society may with the permission of the Central Registrar invest or deposit its reserve funds in:-
(i) acquisition or purpose of land and building and construction of building for:
(a) its office, staff and equipment
(b) installation or operation of its machinery or plant;
(ii) purchase of machinery or plant which is required for its main business;
(iii) acquisition or purchase of land building, and construction of buildings for the purposes mentioned in clause (i)(a) and also for the benefit of its members in accordance with the provisions of its bye-laws; and
(iv) its own business.
(3) The reserve fund of a multi-State cooperative society shall be indivisible and no member shall have any claim or a share in it.
(4) No multi-State cooperative society whose reserve fund has been separately invested or deposited shall draw upon, pledge or otherwise employ such fund except with the sanction of the Central Registrar previously obtained.
(5) The utilisation of the reserve fund for the objects mentioned in sub rule (1) shall be subject to the condition that any amount drawn shall be reimbursed from the profits accruing in subsequent cooperative year or years as directed by the Central Registrar. The Central Registrar may, however, having regard to the special circumstances of the society, permit that the reserve fund drawn and untilised for the objects mentioned under clauses (ii) and (iii)of sub-rule(1) may not be reimbursed wholly or partially as he may direct.
(6) (a) In the case of winding up of a multi-State cooperative society, the reserve fund and the other funds of the multi-State cooperative society shall be applied first in discharge of the liabilities of the multi-State cooperative society in accordance with the priority specified in items (i) to (vi) below:-
(i) salary and wages or other payments, if any, due to the employees of the multi-State cooperative society;
(ii) security deposits of staff, if any;
(iii) borrowings held from Government or on the guarantee of Government, if any;
(iv) deposits of non-members, if any;
(v) loans, if any; and
(vi) deposits of members, if any.
(b) The balance, if any, after discharging the liabilities mentioned in clause (a) shall be applied to the re-payment of the paid-up share capital and thereafter to the payment of dividend where it has not been paid.
(c) Notwithstanding anything contained in clause (b), no dividend shall be paid if the bye-laws of the multi-State cooperative society do not provide for payment of dividend.
(7) Any surplus remaining after payments mentioned in sub-rule (6) shall be applied by the liquidator, after consulting members, for contribution to National Defence Fund or to Cooperative Education Fund referred to in rule 4 or to any other charitable purpose or local objects of public utility subject to the approval of the Central Registrar.
8. Writing off of bad debts and losses-All loans including interest thereon and recovery charges in respect thereof which are found irrecoverable and are certified as bad debts, by the auditor appointed under section 67, shall first be written off against the Bad Debt Fund and the balance, if any, may be written off against the Reserve fund and the share capital of the multi-State Cooperative society. All other dues and accumulated losses or any other loss sustained by the multi-State cooperative society which cannot be recovered and have been certified as irrecoverable by the auditor may be written off against the Reserve fund of the multi-State cooperative society;
Provided that:
(a) no bad debts or losses shall be written off without the sanction of the general body;
(b) before any such bad debts or losses are written off, the multi-State cooperative society shall obtain the approval of the Central Registrar.
Provided further that the Central Registrar may, while giving the approval, impose such conditions as to the recoupment of the Bad Debt Fund and restoration of part or whole of the amount written off against the Reserve Fund, from out of future profits as he deems fit.
9. Transactions with non-members-Save as otherwise provided for in section 65 and except with the general or special sanction of the Central Registrar, no multi-State cooperative society shall enter into any credit transaction with a person other than a member, unless the bye-laws of the multi-State cooperative society permit it to enter into such transactions.
10. Application for loan-
(1) An application for loan shall be in such form as may be required by the board of the multi-State cooperative society and shall state the purpose for which the loan is required in the manner laid down in the bye-laws of the society.
(2) For every loan, a member shall furnish such security as may be required under the bye-laws of the multi-State cooperative society.
(3) The period of repayment of the loan shall be as may be provided in the bye-laws, but in no case exceed five years.
(4) In any multi-State cooperative society in which the liability of the members is limited by shares, no loan shall be granted to a member exceeding ten times the amount of share capital laid down in the bye-laws, times the amount of share capital paid by him or as may be laid down in the bye--laws.
11. Contributory Provident Fund-
(1) Every multi-State cooperative society which has in its service 5 or more regular employees shall establish a Contributory Provident Fund referred to in sub-section (1) of section 66.
(2) The multi-State co-operative society creating such a fund shall provide for the following in its bye-laws:-
(a) Authority to administer the fund.
(b) Amount of contribution to be deducted from the employee s salary.
(c) Mode of nomination for payment of the amount of the contributory provident fund in case of employee's death.
(d) Purpose for which, the extent to which, and the period after which, advances may be made against the security of such fund and the number of monthly installments in which advance is to be repaid.
(e) Refund of employees' contribution and contribution made by the society.
(f) Maintenance of accounts of such fund.
(3) The amount of contribution that can be deducted from the salary of an employees of the multi-State cooperative society shall not be less than 8.33 per centum of his basic salary.
(4) The multi-State cooperative society may make such contribution every year to the employees' contributory provident fund as may be approved by the board. Such contribution shall not exceed 8.33 per cent of the basic salary of the employee.
12. Restriction on borrowings of limited liability of multi-State cooperative society-No multi-State cooperative society with limited liability shall accept deposits or loans, or by any other way incur liability exceeding 10 times the sum of the paid-up share capital plus accumulated reserves minus any losses. Provided that the Central Registrar, for reasons to be recorded in writing, may permit a multi-State cooperative society to incur liabilities exceeding the aforesaid limit.
13. Maintenance of liquid resources and distribution of assets-Every multi-State cooperative society which obtains any portion of its working capital by deposit, shall-
(a) maintain such liquid resources and in such form as may be specified by the Reserve Bank of India in the case of those multi-State cooperative credit societies which are coming under the purview of the Banking Regulation Act, 1949 (10 of 1949) and by the Central Registrar in the case of other multi-State cooperative societies; and
(b) utilise only such portion of its working capital in lending business and distribute its assets in accordance with such standards as may be specified from time to time by the Central Registrar.
14. Share not to be hypothecated to the multi-State cooperative society-The share of a multi-State cooperative society shall not be hypothecated to the society by its members as security for a loan.
15. Loan on security of non-members-No multi-State cooperative society shall make any loan to a member on a security bond given by a non-member: Provided that the Central Registrar may for reasons, to be recorded in writing, exempt any multi-State cooperative society or class of multi-State cooperative societies from the operation of this rule.
AUDIT AND ACCOUNTS
16. Books of accounts-Every multi-State cooperative society shall keep books of account with respect to:-
(a) all sums of money received and expended and the matters in respect of which the receipt and expenditure take place;
(b) all sales and purchase of goods;
(c) the assets and liabilities;
(d) in the case of a multi-State cooperative society engaged in production, processing and manufacturing, particulars relating to utilisation of materials or labour or other items of costs as may be specified by the Central Registrar.
17. Subject matter of audit-
(1) The audit of a multi-State cooperative society under sub-section(1) of section 67 shall include, in addition to the matters specified in sub-section(2) of that section the following particulars:
(a) Whether the auditor has obtained all the information and explanations which, to the best of his knowledge and belief are necessary for the purposes of his audit;
(b) whether in his opinion proper books of accounts as specified in these rules and bye-laws have been kept by the multi-State cooperative society so far as it appears from the examination of those books and proper returns adequate for the purposes of his audit have been received from the branches not visited by him;
(c) Whether the balance-sheet and profit & loss account exhibit a true & fair view of the state of affairs of the multi-State Cooperative society according to best of his information and explanation given to him and as shown by the books of the multi-State cooperative society; and
(d) Whether there has been any material impropriety or irregularity in the expenditure or in the realisation of money due to the multi-State cooperative society.
(2) Where in any of the matters referred to in sub-rule (1) the answer is in the negative or in the affirmative with any remark, the auditor shall give reasons for such answer with facts and figures in support of such remarks.
(3) The audit report shall also contain schedules with particulars of:-
(a) all transactions which appear to be contrary to the provisions of the Act, the rules or the bye-laws of the multi-State cooperative society;
(b) Any money belonging to the multi-State cooperative society which appears to the auditor to be bad or doubtful of recovery;
(c) The loans given by the multi-State cooperative society to the members of the board; and
(d) any other matter as may be specified by the Central Registrar in this regard.
(4) The auditor shall make his report to the multi-State cooperative society and also send a copy of that report direct to the Central Registrar. The Central Registrar may for reasons to be recorded in writing, direct that if any portion of the audit report which appears to him of objectionable nature or not justified, be expunged and the portion so expunged shall not form part of the audit report.
(5) The audit report given by the auditors shall be considered by the board of a multi-State cooperative society and placed before the general body with their comments.
(6) The defects pointed out by the auditors in the working of the multi-State Cooperative society shall be specifically considered by the board and a compliance report explaining the measures taken to rectify the defects be submitted to the Central Registrar within three months of the receipt of the audit report.
WINDING UP OF MULTI-STATE COOPERATIVE SOCIETIES
19. Procedure to be adopted by liquidator-When a liquidator has been appointed under sub-section (1) of section 80 the following procedure shall be adopted:
(a) The appointment of the liquidator shall be notified by the Central Registrar in the Official Gazette.
(b) The liquidator shall, as soon as the order of winding up of the multi-State cooperative society takes effect, publish by such means as he may, think proper, a notice, requiring all claims against the multi-State cooperative society, the winding up of which has been ordered, to be submitted to him within two months of the publication of the notice. All liabilities recorded in the account books of a multi-State cooperative society shall be deemed ipso-facto to have been duly submitted to him under this clause.
(c) The liquidator shall investigate all the claims against the multi-State cooperative society and decide questions of priority arising between claimants.
(d) The liquidator shall recover all sums and other properties to which the multi-State cooperative society is entitled and may institute such suits for that purpose or such suits incidental to liquidation proceedings as he may think proper.
(e) The liquidator may empower any person, by general or special order in writing, to make collections and to grant valid receipts on his behalf.
(f) The liquidator shall, after setting the assets and liabilities of multi-State cooperative society as they stood on the date on which the order of winding up is made, proceed next to determine from time to time the contribution including debts due and costs of liquidation to be made or remaining to be made by each of its members, past members, or by the estates, or nominees, heirs or legal representatives of deceased members or by any officers or former officers, to the assets of the multi-State cooperative society, under clause (b) of sub-section (2) of section 81. Should necessity arise, he may also make a subsidiary order regarding such contributions and such order shall be enforceable in the same manner as the original order.
(g) All funds in the charge of the liquidator shall be deposited in the Post Officer Savings Banks or in a cooperative bank or with such other banks as may be approved by the Central Registrar and shall stand in his name.
(h) The Central Registrar shall fix the amount of remuneration, if any, to be paid to the liquidator. The remuneration shall be included in the cost of liquidation, which shall be payable out of the assets of the multi-State cooperative society in priority of all other claims.
(i) The liquidator may call for the meeting of the members of the multi-State cooperative society under liquidation.
(j) The liquidator shall submit to the Central Registrar a quarterly report in such form as the Central Registrar may, specify showing the progress made in liquidation of the multi-State cooperative society.
(k) The liquidator shall keep such books and accounts as may from time to time be specified by the Central Registrar who may at any time cause such books and accounts to be audited.
(l) At the conclusion of the liquidation, the liquidator shall call for a general meeting of the members of the dissolved society at which the liquidator or any other person authorised by him, by special or general order in writing in this behalf, shall summarise, the result of his proceedings and shall take a vote as to the disposal of any surplus funds. The liquidator shall submit his final report to the Central Registrar with a copy of the proceedings of the general meeting referred to above and make over to the Central Registrar all books and registers and accounts etc., belonging to the multi-State cooperative society and all books and accounts relating to the liquidation proceeding kept by him.
(m) If any liability cannot be discharged by the liquidator owing to the whereabouts of the claimants not being known or for any other cause the amount covered by such undischarged liability may be deposited in a Cooperative Bank and shall be available for meeting the claims of the person or persons concerned.
(n) A liquidator may, at any time, be removed by the Central Registrar and he shall on such removal be bound to hand over all the property and documents relating to the society under liquidation to such persons as the Central Registrar may direct.
(0) All the books and records of a multi-State Cooperative society whose registration has been cancelled and the proceedings of liquidation of a multi-State Cooperative society ordered to be wound up may be destroyed by the Central Registrar after the expiry of three years from the date of the order cancelling the registration of the multi-State Cooperative society.
20. Application of assets of the multi-State Cooperative society-the assets of the multi-State cooperative society shall be applied in order of priority as given below for payment of the liabilities:
(1) Pro-rata payment of all outside liabilities.
(2) Pro-rata repayment of loans and deposits of members.
(3) Pro-rata refund of share capital.
(4) Pro-rata payment of dividend on the share at the rate not exceeding 6.25 per cent per annum for the period of liquidation.
21. Disposal of surplus assets-for the purpose of sub-section (b) of section 82 the surplus assets shall be distributed among the members in proportion to the share capital held by the members or in proportion to the business done by the members with the multi-State Cooperative society as may be determined by the Central Government before according sanction under sub-clause (b) of section 82.
EXECUTION OF DECREES, ORDERS AND DECISIONS
22. Procedure in execution of decrees, orders and decisions-
(1) Any decree-holder requiring the provisions of clause (c) of section 85 to be applied, shall apply to the Recovery Officer in whose jurisdiction the cause of action arose and shall deposit the necessary costs as fixed by the Central Registrar. If the judgement-debtor resides or the property to be proceeded against is situated outside the jurisdiction of such Recovery Officer, the Recovery Officer shall transfer the application to the Recovery Officer in whose jurisdiction the judgement-debtor resides or the property is situated.
(2) Every such application shall be made in the form specified by the Central Registrar and shall be signed by the decree-holder. The decree-holder may indicate whether he wishes to proceed against the immovable property mortgaged to the decree-holder or other immovable property or to secure the attachment of movable property.
(3) On receipt of such application, the Recovery Officer shall verify the correctness and genuineness of the particulars set forth in the application with the records, if any, in the office of Central Registrar and prepare a demand notice in writing in duplicate in the form specified by the Central Registrar, setting forth the name of the defaulter and the amount due and forward it to the Sale Officer.
(4) Unless the decree-holder has expressed a desire that proceedings should be taken in a particular order as laid down in sub-rule (2), execution shall ordinarily be taken in the following manner:
(i) movable property of the defaulter shall be first proceeded against, but this shall not preclude the immovable property being proceeded against simultaneously in case of necessity;
(ii) if there is no movable property, or if the sale proceeds of the movable property, or properties attached and sold are insufficient to meet in full the demand of the decree-holder, the immovable property mortgaged to the decree-holder, or other immovable property belonging to the defaulter may be proceeded against.
(5) In the seizure and sale of movable property the following rules shall be observed:
(a) the Sale Officer, shall after giving previous notice to the decree-holder, proceed to the village or place where the defaulter resides or the property to be destrained is situated and serve a demand notice upon the defaulter if he is present. If the amount due together with the expenses be not at once paid, the Sale Officer shall make the distress and shall immediately delivery to the defaulter a list or inventory of the property distrained and an intimation of place and day and hour at which the distrained property will be brought to sale if the amount due are not previously discharged. If the defaulter is absent, the Sale Officer shall serve the demand notice on some adult male member of his family, or on his authorised agent, or when such service cannot be effected, shall affix a copy of the demand notice on some conspicuous part of his residence. He shall then proceed to make the distress and shall fix the list of property attached on the usual place of residence of the defaulter, endorsing thereon the place where the property may be lodged or kept and an intimation of the place, day and hour of sale.
(b) After the distress is made, the Sale Officer may arrange for the custody of the property attached with the decree-holder or otherwise. If the Sale Officer requires the decree-holder to undertake the custody of the property he shall be bound to do so and any loss incurred owing to his negligence shall be made good by the decree-holder. If the attached property is live-stock, the decree-holder shall be responsible for providing the necessary food therefor. The Sale Officer may, at the instance of the defaulter or of any person claiming an interest in such property, leave it in the village or place where it was attached, in the charge of such defaulter or person, if he entered into a bond in the form specified by the Central Registrar with one or more sufficient sureties for the production of the property when called for.
(c) The distress shall be made after sunrise and before sunset and not at any other time.
(d) The distress levied shall not be excessive, that is to say, the property distrained shall be as nearly as possible proportionate to the sum due by the defaulter together with interest and all expenses incidental to the disgraint, detention and sale.
(e) If crops or ungathered products of the land belonging to a defaulter are attached, the Sale Officer may cause them to be sold when fit for reaping or gathering, or at his option may cause them to be reaped for gathered in due season and stored in proper place until sold. In the latter case, the expense of reaping or gathering and storing such crops or products shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.
(f) The Sale Officer shall not work the bullocks or cattle, or make use of the goods or effect distrained, and he shall provide the necessary food for the cattle or livestock, the expense attending which shall be defrayed by the owner upon his redeeming the property or from the proceeds of the sale in the event of its being sold.
(g) It shall be lawful for the Sale Officer to force open any stable, cow house, granary, godown, out-house or other building and he may also enter any dwelling house, the outer door of which may be open and may break open the door of any room in such dwelling house for the purpose of attaching property belonging to a defaulter and lodged therein, provided always that it shall not be lawful for the officer to break open or enter apartment in such dwelling house appropriate for the zenana or residence of women except as hereinafter provided.
(h) Where the Sale Officer may have reason to suppose that the property of a defaulter is lodged within a dwelling house the outer door of which may be shut or within any apartments appropriated to women which by custom or usage are considered private, the Sale Officer shall represent the fact to the officer in charge of the nearest police station. On such representation the officer-in-charge of the said station shall send a police officer to the spot in the presence of whom the Sale Officer may force open the other door of such dwelling house, like manner as he may break open the door of any room within the house except the zenana. The Sale Officer may also, in the presence of a police officer, after due notice given for the removal of women within a zenana and, after furnishing means for their removal in a suitable manner if they be women of rank who, according to the custom of usage cannot appear in public, enter the zenana apartments for the purpose of distraining the defaulter's property, if any, deposited therein, but such property, if found, shall be immediately removed from such property, if found, shall be immediately removed from such apartments after which they shall be left free to the former occupants.
(i) The Sale Officer shall on the day previous to and on the day of sale cause proclamation of the time and place of the intended sale to be made by beat of drum in the village or place in which the defaulter resides on two consecutive days previous to the date of sale and on the day of sale prior to the commencement of the sale and in such other place or places as the officer may consider necessary to given due publicity to the sale. No sale shall take place until after the expiration of the period of 15 days from the date on which the sale notice has been served or affixed in the manner prescribed in clause(a). Provided that where the property seized is subject to speedy and natural decay, or where the expense of keeping it in custody is likely to exceed its value, the Sale Officer may sell it at any time before the expiry of the said period of 15 days, unless the amount due is sooner paid.
(j) At the appointed time the property shall be put up in one or more lots, as the Sale Officer may consider advisable and shall be disposed of to the highest bidder: Provided, further that the Sale Officer may, in his discretion, adjourn the sale to a specified day and hour recording his reasons for such adjournment. Where a sale is so adjourned for a longer period than 7 days, a fresh proclamation under clause (i) shall be made unless the judgement debtor consents to waive it.
(k) The property shall be paid for in cash at the time of sale, or as soon thereafter as the officer holding the sale shall appoint, and the purchaser shall not be permitted to carry away any part of the property until he has paid for it in full. Where the purchaser may fail in payment of purchase money, the property shall be resold.
(l) Where any property which has been attached under these rules has been forcibly or clandestinely removed by any person, the Sale Officer may apply to a civil court having jurisdiction for restoration of such property. Where the court is satisfied about the truth of the facts, as alleged in the application, it may order forthwith such property to be restored to the Sale Officer.
(m) Where prior to the day fixed for sale, the defaulter of any person acting on his behalf or any person claiming an interest in the property attached, pays the full amount due including interest, batta and other costs incurred in attaching the property, the Sale Officer shall cancel the order of attachment and release the property forthwith.
(n) The movable property mentioned as exempt from attachment in the proviso to section 60 of the Code of Civil Procedure, 1908 (5 of 1908), shall not be liable to attachment or sale under these rules.
(6) Where the movable property to be attached is the salary or allowance or wages of a public servant or a servant of a local authority or a firm or a company, the Recovery Officer may, on receiving a report from the Sale Officer, order that the amount shall, subject to the provisions of section 60 of the Code of Civil Procedure, 1908 (5 of 1908) be with-held from such salary or allowances or wages either in one payment or by monthly instalment as the Recovery Officer may direct and upon receipt of the order, the officer of other person whose duty it is to disburse such salary or allowance or wages shall withhold and remit to the Sale Officer, the amount due under the order or the monthly instalment, as the case may.
(7) (i) where the property to be attached consists of the share or interest of the defaulter in movable property belonging to him and another as co-owners, the attachment shall be made by a notice to the defaulter, prohibiting him from transferring the share or interest or charging it in any way.
(ii) Where the property to be attached is negotiable instrument not deposited in a court, nor in the custody of a public officer, the attachment shall be made by actual seizure and the instrument shall be brought to the office of the Recovery Officer ordering the attachment and be held subject to his further orders.
(iii) Where the property to be attached is in the custody of any court or public officer, the attachment shall be made by a notice to such court or officer, requesting that such property and any interest or dividend becoming payable thereon may be held subject to the further orders of the Recovery Officer issuing the notice: Provided that where such property is in the custody of a court or Recovery Officer of another district, any question of title or priority arising between the decree-holder and any other person not being the defaulter claiming to be interested in such property by virtue of any assignment, attachment or otherwise shall be determined by such court or Recovery Officer.
(8) (i) Where the property to be attached is a decree either for the payment of money or for sale in enforcement of a mortgage or charge, the attachment shall be made if the decree sought to be attached was passed by the Central Registrar or by any person to whom a dispute was transferred by the Central Registrar under section 76, then by the order of the Central Registrar.
(ii) Where the Central Registrar makes an order under clause (i) he shall on the application of the decree-holder who has attached the decree, proceed to execute the attached decree and apply the net proceeds in satisfaction of the decree sought to be executed.
(iii) The holder of a decree sought to be executed by the attachment of another decree of the nature specified in clause (i), shall be deemed to be the representative of the holder of the attached decree and to be entitled to execute such attached decree in any manner for the holder thereof.
(iv) Where the property to be attached in execution of a decree is a decree other than a decree of the nature referred to in clause (i), the attachment shall be made by the issue of a notice by the Recovery Officer to the holder of such decree prohibiting him from transferring or charging the same in any way.
(v) The holder of a decree attached under this sub-rule shall give the recovery Officer executing the decree such information and aid as may reasonably be required.
(vi) On the application of the holder of a decree sought to be executed by the attachment of another decree, the Recovery Officer making an order of attachment under this sub-rule shall give notice of such order to the judgement-debtor bound by the decree attached; and no payment or adjustment of the attached decree made by the judgement-debtor in contravention of such order after receipt of notice thereof either through the said Recovery Officer or otherwise, shall be recognised so long as the attachment remains in force.
(9) Where the movable property to be attached is:
(a) a debt due to the defaulter in question,
(b) a share in the capital of a corporation or a deposit invested therein, or
(c) other movable property not in the possession of the defaulter, except property deposited in or in the custody of any civil court, the attachment shall be made by a written order signed by the Recovery Officer prohibiting.
(i) in the case of a debt, the creditor from recovering the debt and the debtor from making payment thereof;
(ii) in the case of a share or deposit the person in whose name the share or the deposit may be standing, from transferring the share or deposit or receiving any dividend or interest thereon; and
(iii) in the case of any other movable property, the person in possession of it from giving it over to the defaulter. A copy of such order shall be sent in the case of the debt to the debtor, in the case of the share or deposit, to the proper officer of the corporation and in the case of the other movable property to the person in possession of such property. As soon as the debt referred to in clause (a) or the deposit referred to in clause (b) matures, the Recovery Officer may direct the person concerned to pay the amount to him. Where the share is not withdrawable, the Recovery Officer shall arrange for its sale through a broker. Where the share is withdrawable, its value shall be paid to the Recovery Officer or to the party referred to in clause (c). In the case of other moveable property referred to in sub-clause (iii) of clause (c) the person concerned shall place it in the hands of the Recovery Officer when it becomes deliverable to the defaulter.
(10) Immovable property shall not be sold in execution of a decree unless such property has been previously attached: Provided that where the decree has been obtained on the basis of a mortgage of such property it shall not be necessary to attach it.
(11) In the attachment and sale, or sale without attachment of immovable property, the following rules shall be observed:
(a) The application presented under sub-rule (2) shall contain a description of the immovable property to be proceeded against, sufficient for its identification and in case such property can be identified by boundaries or numbers in a record of settlement or survey, the specification of such boundaries or numbers and the specification of the defaulter's share or interest in such property to the best of the belief of the decree-holder and so far as he has been able to ascertain it.
(b) The demand notice issued by the Recovery Officer under sub-rule (3) shall contain the name of the defaulter, the amount due, including the expenses, if any, and the batta to be paid to the person who shall serve the demand notice, the time allowed for payment and in case of non-payment, the particulars of the properties to be attached and sold or to be sold without attachment, as the case may be. After receiving the demand notice, the Sale Officer shall serve or cause to be served a copy of the demand notice upon the defaulter or upon some adult male member of his family at his usual place of residence, or upon his authorised agent or if such personal service is not possible, shall affix a copy thereof on some conspicuous part of the immovable property about to be attached and sold or sold without attachment, as the case may be: Provided that, where the Recovery Officer is satisfied that a defaulter with intent to defeat or delay the execution proceeding against him is about to dispose of whole or any part of his property, the demand notice issued by the Recovery Officer under sub-rule(3) shall not allow any time to the defaulter for payment of the amount due by him and the property of the defaulter shall be attached forthwith.
(c) If the defaulter fails to pay the amount specified in the demand notice within the time allowed, the sale officer shall proceed to attach and sell or sell without attachment, as the case may be the immovable property noted in the application for execution in the following manner.
(d) Where attachment is required before sale, the Sale Officer shall, if possible cause a notice of attachment to be served on the defaulter personally. Where personal service is not possible, the notice shall be affixed in some conspicuous part of the defaulter's last known residence, if any. The fact of attachment shall also be proclaimed by beat of drum or other customary mode at some place on, or adjacent to, such property and at such other place or places as the Recovery Officer may consider necessary to give due publicity to the sale. The attachment notice shall set forth that, unless the amount due with interest and expenses be paid within the date therein mentioned, the property will be brought to sale. A copy shall be sent to the decree-holder. Where the Sale Officer so directs the attachment shall also be notified by public proclamation in the Official Gazette.
(e) Proclamation of sale shall be published by affixing a notice in the office of the Recovery Officer and the taluk office at least thirty day before the date fixed for the sale and also by beat of drum in the village (on two consecutive days previous to the date of sale and on the day of sale prior to the commencement of the sale). Such proclamation shall, where attachment is required before sale, be made after the attachment has been effected. Notice shall also be given to the decree-holder and the defaulter. The proclamation shall state the time and place of sale and specify as fairly and accurately as possible:
(i) the property to be sold;
(ii) any encumbrances to which the property is liable;
(iii) the amount for the recovery of which sale is ordered; and
(iv) every other matter which the Sale Officer considers material for a purchaser to know in order to judge the nature and value of the property.
(f) When any immovable property is sold under these rules, the sale shall be subject to the prior encumbrances on the property, if any. The decree-holder shall, when the amount for the realisation of which the sale is held exceeds Rs.100, furnish to the Sale Officer within such time as may be fixed by him or by the Recovery Officer, an encumbrance certificate from the Registration Department for the period of not less than twelve years prior to the date of attachment of the property sought to be sold, or in cases falling under the proviso to sub-rule(1), prior to the date of the application for execution. The time for production of the encumbrance certificate may be extended at the discretion of the Sale Officer or the Recovery Officer or the Recovery Officer, as the case may be. The sale shall be by public auction to the highest bidder: Provided that it shall be open to the Sale Officer to decline to accept the highest bid where the price offered appears to be unduly low or for other adequate reasons; Provided further that the Recovery Officer or the Sale Officer may in his discretion adjourn the sale to a specified day and hour recording his reason for such adjournment. Where a sale is so adjourned for a longer period than 7 days, a fresh proclamation under clause(e) shall be made, unless the defaulter consents to waive it, The sale shall be held after the expiry of not less than thirty days calculated from the date on which notice of the proclamation was affixed in the office of the Recovery Officer. The time and place of sale shall be the village where the property to be sold is situated or such adjoining prominent place of public resort as may be fixed by the recovery officer: Provided also that in cases where encumbrance certificate is not obtainable owing to the destruction of the connected records an affidavit from the village patwari or corresponding officer in regard to the encumbrances known to him supported by a certificate from the Registration Department that the encumbrances certificate cannot be granted owing to the destruction of the connected records, shall be accepted in place of an encumbrance certificate.
(g) A sum of money equal to 15 per cent of the price of the immovable property shall be deposited by the purchaser in the hands of the Sale Officer at the time of the purchase and in default of such deposit, the property shall forthwith be resold: Provided that where the decree-holder is the purchaser and is entitle to set off the purchase money under clause (k), the Sale Officer shall dispense with the requirement of this clause.
(h) The remainder of the purchase money and the amount required for the general stamp for the sale certificate shall be paid within fifteen days from the date of sale: Provided that the time for payment of the cost of the stamps may, for good and sufficient reasons, be extended at the discretion of the Recovery Officer up to thirty days from the date of sale: Provided further that, in calculating the amounts to be paid under this clause, the purchaser shall have the advantage of any set off to which he may be entitled under clause (k).
(i) In default of payment within the period mentioned in clause (h) the deposit may, if the Recovery Officer thinks fit, after defraying the expenses of the sale, be forfeited to the Central Government and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may subsequently be sold.
(j) Every resale of immovable property in default of payment of the amounts mentioned in clause(h) within the period allowed for such payment, shall be made after the issue of a fresh proclamation in the manner and for the period herein before prescribed for the sale.
(k) Where a decree-holder purchases the property, the purchase money and the amount due on the decree shall be set off against one another, and the Sale Officer shall enter satisfaction of the decree in whole or in part accordingly.
(12) Where prior to the date fixed for a sale, the defaulter or any person acting on his behalf or any person claiming an interest in the property sought to be sold tenders payment of the full amount due together with interest, batta and other expenses incurred in bringing the property to sale including the expenses of attachment, if any, the Sale Officer shall forthwith release the property after cancelling, where the property has been attached, the order of attachment.
(13)(i) Where immovable property has been sold by the Sale Officer, any person either owning such property or holding an interest therein by virtue of a title acquired before such sale may apply to have the sale set aside on his depositing with the Recovery Officer-
(a) for payment to the purchaser a sum equal to 5 per cent of the purchase money, and
(b) for payment to the decree-holder, the amount of arrears specified in the proclamation of sale as that for the recovery of which the sale was ordered together with interest thereon and the expenses of attachment, if any, and sale and sale and other costs due in respect of such amount, less amount which may since the date of such proclamation have been received by the decree-holder.
(ii) If such deposit and application are made within thirty days from the date of sale the Recovery Officer shall pass an order setting aside the sale and shall repay to the purchase money so far as it has been deposited together with 5 per cent deposited by the applicant: Provided that if more persons than one have made deposit and application under this sub-rule the application of the first depositor to the officer authorised to set aside the sale, shall be accepted.
(iii) If a person applies under Sub-rule (14) to set aside the sale of immovable property, he shall not be entitled to make an application under this sub rule.
(14)(i) At any time within thirty days from the date of the sale of immovable property, the decree-holder or any person entitled to share in a rateable distribution of the assets or whose interests are effected by the sale, may apply to the Recovery Officer to set aside the sale on the ground of a material irregularity or mistake or fraud in publishing or conducting it: Provided that, no sale shall be set aside on the ground of irregularity or fraud unless the Recovery Officer is satisfied that the applicant has sustained substantial injury by reason of such irregularity, mistake or fraud.
(ii) If the application be allowed, the Recovery Officer, shall set aside the sale and may direct a fresh one.
(iii) On the expiration of thirty days from the date of sale if no application to have the sale set aside is made or if such application has been made and rejected the Recovery Officer shall make an order confirming the sale: Provided that if he shall have reason to believe that the sale ought to be set aside notwithstanding that no such application has been made or on grounds other than those alleged in any application which has been made and rejected, he may, after recording his reasons in writing, set aside the sale.
(iv) Whenever the sale of any immovable property is not so confirmed or is set aside, the deposit or the purchase money, as the case may be, shall be returned to the purchaser.
(v) After the confirmation of any such sale, the Recovery Officer shall grant a certificate of sale bearing his seal and signature to the purchaser, and such certificate shall state the property
sold and the name of the purchaser and it shall be conclusive evidence of the fact of the purchase in all courts and tribunals, where it may be necessary to prove it and no proof of the seal or signature of the Recovery Officer shall be necessary unless the authority before whom it is produced shall have reason to doubt its genuineness.
(vi) An order made under this sub-rule shall be final, and shall not be liable to be questioned in any suit or other legal proceedings.
(15) Where any lawful purchaser of immovable property is resisted and prevented by any person other then a person (not being the defaulter) claiming in good faith to be in possession of the property on his own account from obtaining possession of the immovable property purchased any court of competent jurisdiction on application, and production of the certificate of sale provided for by sub-rule (14) shall cause the proper process to be issued for the purpose of putting such purchaser in possession, in the same manner as if the immovable property purchased had been decreed to the purchaser by a decision of the court.
(16) It shall be lawful for the Sale Officer to sell the whole or any portion of the immovable property of a defaulter in discharge of money due: Provided that so far as may be practicable, no larger section or portion of immovable property shall be sold than may be sufficient to discharge the amount due with interest and expenses of attachment, if any, and sale.
(17) Persons employed in serving notice or in other process under these rules shall be entitled to batta at such rates as may from time to time be fixed by the Recovery Officer.
(18) Where the cost and charges incurred in connection with attachment and sale of movable property or the attachment and sale or sale without attachment of immovable property under this rule, exceeds the amount of the cost deposited from the sale proceeds of the property sold or the money paid by defaulter, as the case may be and the balance shall be made available to the decree-holder.
(19) Every person making a payment towards any money due for the recovery of which application has been made under this rule shall be entitled to a receipt for the amount signed by the Sale Officer or other officer empowered by the Recovery Officer in that behalf, such receipt shall state the name of the person making the payment and the subject matter in respect of which the payment is made.
(20) (a) Where any claim is preferred to, or any objection is made to the attachment of any property attached under this rule on the ground that such property is not liable to such attachment, the Sale Officer shall investigate the claim or objection and dispose it of on the merits: Provided that no such investigation shall be made when the Sale Officer considers that the claim or objection is frivolous.
(b) Where the property to which the claim or objection relates has been advertised for sale, the Sale Officer may postpone the sale pending the investigation of the claim or objection.
(c) Where a claim or an objection is preferred, the party against whom an order is made may institute a suit to establish the right which the claim to the property in dispute, but, subject to the result of such suit, if any, the order shall be conclusive.
(21) (i) Any deficiency of price which may arise on a resale held under clause (j) of Sub-rule (11) by reason of the purchaser's default and all expenses attending such resale shall be certified by the Sale Officer to the Recovery Officer and shall, at the instance of either the decree-holder or the defaulter be recoverable from the defaulting purchaser under the provisions of this rule. The cost, if any, incidental to such recovery shall be borne by the defaulting purchaser. (ii) Where the property may on the second sale, sell for a higher price than at the first sale, the defaulting purchaser at the first sale, shall have no claim to the difference or increase.
(22) Where any property has been attached in execution of a decree, but by reason of the decree-holder's default the Recovery Officer is unable to proceed further with the application for execution, he shall either dismiss the application or for any sufficient reason adjourn the proceeding to a future date. Upon the dismissal of such application, the attachment shall cease.
(23) Where assets are held by the Sale Officer and before the receipt of such assets, demand notices in pursuance of application for execution of decree-against the same defaulter have been received from more than one decree-holder and the decree-holders have not obtained satisfaction, the assets after deducting the costs or realisation shall be rateably distributed by the Sale Officer among all such decree--holders in the manner provided in section 73 of the Code of Civil Procedure, 1908 (5 of 1908).
(24) Where defaulter dies before the decree has been fully satisfied, an application under sub-rule(1) may be made against the legal representative of the deceased and thereupon all the provisions of this rule shall, save as otherwise provided in this sub-rule, apply as if such legal representative were the defaulter. Where the decree is executed against such legal representative, he shall be liable only to the extent of the property of the deceased which has come to his hands and has not been duly disposed of, and for the purpose of ascertaining such liability, the Recovery Officer executing the decree may, of his own motion or on the application of the decree-holder compel such legal representative to produce such accounts as he thinks fit.
23. Mode of making attachment before judgement-
(1) Attachment of property under Section 87 shall be made in the manner provided in Rule 22.
(2) where a claim is preferred to property attached under Sub-rule(1) such claim shall be investigated in the manner and by the authority specified in Rule22.
(3) Where a direction is made for the attachment of any property under sub-rule(1), the Recovery Officer shall order the attachment to be withdrawn:-
(a) when the party concerned furnishes the security required, together with the security for the costs of the attachment; or
(b) when the liquidator determines under clause (b) of sub-section (2) of section 81 that no contribution is payable by the party concerned; or
(c) when the Central Registrar passes an order under sub-section(1) of section 73 that the party concerned need not repay or restore any money or property or contribute any sum to the assets of the society by way of compensation; or
(d) when the dispute referred to in sub-section(1) of Section 76 has been decided against the party at whose instance the attachment was made.
(4) Attachment made under Sub-rule (1) shall not affect the right existing prior to the attachment of persons not parties to the proceedings in connection with which the attachment was made, nor bar any person holding a decree against the person whose property is attached from applying for the sale of the property under attachment in execution of such decree.
(5) Where property is under attachment by virtue of the provisions of this rule and a decree is subsequently passed against the person whose property is attached, it shall not be necessary upon an application for execution of such decree to apply for re-attachment of the property.
24. Mode of service of summon-
(1) Every summon issued under the act or these rules shall be in writing, shall be authenticated by the seal, if any, of the officer by whom it is issued and shall be signed by such officer or by any person authorised by him in writing in that behalf. It shall require the person summoned to appear before the said officer at a stated time and place, and shall specify whether his attendance is required for the purpose of giving evidence, or to produce a document, or for both purposes, and any particular document the production of which is required, shall be described in the summons with reasonable accuracy.
(2) Any person may be summoned to produce a document, without being summoned to give evidence, and any person summoned merely to produce a document shall be deemed to have complied with the summons if he causes such document to be produced, instead of attending personally to produce the same.
(3) The service of summons under the Act or these rules on any person, may be effected in any of the following ways:
(a) by giving or tendering it to such person; or
(b) if such person is not found, by leaving it at his last known place of abode or business or by giving or tendering it to some adult member of his family; or
(c) if the address of such person is known to the Central Registrar or other authorised person by sending it to him by registered post acknowledgement due; or
(d) if none of the means aforesaid is available, by affixing it in some conspicuous part of his last known place of abode or business.
(4) Where the serving officer delivers or tenders a copy of the summons to the defendant personally or to an agent or other person on his behalf, he shall require the signature of the person to whom the copy is so delivered or tendered as an acknowledgement of service endorsed on the original summons.
(5) The serving officer shall in all cases in which the summons have been served under Sub-rule(4), endorse or annex, or cause to be endorsed or annexed, on or to the original summons a return stating the time when and the manner in which the summons was served and the name and address of the person, if any, identifying the person served and witnessing the delivery or tender of the summons.
(6) Where the defendant to be summoned is a public officer or is a servant of a company or a local authority, the officer issuing the summons may, if it appears that the summons may be conveniently so served, send it by registered post acknowledgement due for service on the party to be summoned, to the head of the office in which he is employed together with a copy to be retained by the defendant.
SOCIETIES WHICH BECOME MULTI-STATE COOPERATIVE SOCIETIES CONSEQUENT ON REORGANISATION OF STATES
25. Preparation of a scheme for the reconstitution or reorganisation of multi-State cooperative societies-
(1) The Central Registrar or an authorised officer, shall prepare a scheme referred to in sub-section(2) of section 95 for the reconstitution or reorganisation of any multi-State cooperative society rendered as such, consequent on the reorganisation of the states and referred to in sub-section (1)of section 95, and forward a copy of the scheme to the President or the Chairman of the multi-State cooperative society with the direction that the scheme be placed before a meeting of the general body of the multi-State cooperative society specially convened for the purpose.
(2) The meeting referred to in sub-rule (1) shall be convened not less than 40 days after the date of issue of the notice to the members and the creditors of the multi-State cooperative society in the manner specified in sub-rule(3).
(3) A written notice specifying the date, hour and place of meeting and the business to be transacted there at shall be given to every member and shall be accompanied by a copy of the scheme to be considered at the meeting. The notice to each member and creditor shall:-
(i) be delivered or tendered to him in person;
(ii) be sent to him by registered post; or
(iii) be served on him in such other manner as may be specified in the bye-laws of the society.
(4) Notwithstanding anything to the contrary contained in any rule of bye-law governing the multi-State cooperative society, where the Central Registrar or the authorised officer in this behalf is satisfied that the President or Chairman of the society has failed to convene the special meeting as required under sub-rule(1), the Central Registrar or the authorised officer, as the case may be, shall convene a meeting of the general body of the multi-State cooperative society by giving 14 days notice to all the members and creditors of the multi-State cooperative society.
MISCELLANEOUS
26. Address of a multi-State cooperative society-The bye-laws of every multi-State cooperative society shall contain the address of the society to which all notices and communications may be sent. The address of the multi-State cooperative society shall include the name of the State, the district, post office and the village or town. Any change in the address of the multi-State cooperative society shall be communicated to the Central Registrar within a month of such change.
27. Repeal and saving-
(1) The Multi-Unit Cooperative Societies Rule, 1958 are hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under any of the rules so repealed shall, unless such thing or action is inconsistent with the provisions of these rules, be deemed to have been done or taken under the corresponding provisions of these rule.
3
The Price Policy
The main objectives of the Government's price policy for agricultural produce, aims at ensuring remunerative prices to the growers for their produce with a view to encourage higher investment and production. Towards the end, minimum support prices for major agricultural products are announced each year which are fixed after taking into account, the recommendations of the Commission for Agricultural Costs and Prices (CACP). The CACP while recommending prices takes into account all-important factors, viz.
1. Cost of Production
2. Changes in Input Prices
3. Input/Output Price Parity
4. Trends in Market Prices
5. Inter-crop Price Parity
6. Demand and Supply Situation
7. Effect on Industrial Cost Structure
8. Effect on General Price Level
9. Effect on Cost of Living
10. International Market Price Situation
11. Parity between Prices Paid and Prices Received by farmers (Terms of Trade).
Of all the factors, cost of production is the most tangible factor and it takes into account all operational and fixed demands. Government organises Price Support Scheme(PSS) of the commodities, through various public and cooperative agencies such as FCI, CCI, JCI, NAFED, Tobacco Board, etc., for which the MSPs are fixed. For commodities not covered under PSS, Government also arranges for market intervention on specific request from the States for specific quantity at a mutually agreed price. The losses, if any, are borne by the Centre and State on 50:50 basis. The price policy paid rich dividends. The Government have raised substantially the MSPs in recent years as may be seen from the statement enclosed.
Procurement/Minimum Support/Statutory Minimum Prices
Fixed By The Government For Agricultural Commodities in Absolute term (As On 12.2.2001)
(Rs. per quintal)
YEAR 1992-93 to 1996-97
Sl. Commodity Variety 1992- 1993- 1994- 1995- 1996-
93 94 95 96 97
1 2 4 5 6 7 8
1.Paddy Common 270 310 340 360 380
Fine 280 330 360 375 395
Super Fine 290 350 380 395 415
Grade 'A' - - - - -
2.Coarse Cereals 240 260 280 300 310
(Jowar Bajra & Ragi)
3. Maize 245 265 290 310 320
4. Wheat $ 330 $ 350 360 380 475 *
5. Barley 260 275 285 295 305
6. Gram 600 640 670 700 740
7. Arhar 640 700 760 800 840
8. Moong 640 700 760 800 840
9. Urad 640 700 760 800 840
10.Masur(lentil) - - - - -
11. Sugarcane @ 31.00 34.50 39.10 42.50 45.90
12. Cotton F-414/H-777 800 900 1000 1150 1180
H-4 950 1050 1200 1350 1380
13. Groundnut-
in-shell 750 800 860 900 920
14. Jute 400 450 470 490 510
15. Rapeseed/
Mustard 760 810 830 860 890
16. Sunflower Seed 800 850 900 950 960
17. Soyabean Black 475 525 570 600 620
Yellow 525 580 650 680 700
18. Safflower 720 760 780 800 830
19. Toria 725 780 800 825 855
20. Tobacco (VFC) Black Soil
(F2 Grade) 16.00 18.00 18.50 19.00 19.00
(Rs. per kg.) Light Soil
(L2 Grade) 17.50 20.00 21.00 21.50 22.00
21. Copra Milling N.A. 2150 2350 2500 2500
(Calender Year) ball N.A. 2350 2575 2725 2725
22. Sesamum - - - 850 870
23. Nigerseed - - - 700 720
@-Statutory Minimum Price linked to a basic recovery of 8.5% of sugar with proportionate premium for every 0.1% increase in recovery above that level.
$--Including a Central Bonus of Rs. 25.00 per quintal.
(N.A).-Not Announced.
#--Classified into two Categories for the MSP Purposes instead of existing three Varities from Kharif season of 1997-98.
*--Including a Central Bonus of Rs. 60.00 per quintal payable upto 30th June 1997.
(X)-Including a Central Bonus of Rs. 55.00 per quintal payable
(XX)-from 01-04-98 to 30-06-98
The MSP for masur (lentil) has been fixed from the crop year 2000-01.
Seeds Policy
Indian Agriculture has made enormous strides in the past 50 years, raising foodgrains production from 50 million tonnes to over 200 million tonnes. In the process, the country has progressed from a situation of food shortages and imports to one of surpluses and exports. Having achieved food sufficiency, the aim now is to achieve food and nutritional security at the household level.
The increase in agricultural production however has brought in its wake, uneven development across regions, crops and also across different sections of farming community. In the decade of the 'nineties', a marked slackening in the pace of growth occurred, pointing to the need for infusing a new vitality in the agricultural sector.
Seed is the most important determinant of agricultural production potential on which the efficiency of other agriculture inputs is dependent.
Seeds of appropriate characteristics are required to meet the demand of diverse agro-climatic conditions and intensive cropping systems.
Sustained increase in agriculture production and productivity is dependent to a large extent on the development of new and improved varieties of crops and an efficient system for timely supply of quality seeds to farmers.
The seed sector has made impressive progress over the last three decades. The area under certified seeds has increased from less than 500 hectares in 1962-63 to over 5 lakh hectares in 1999-2000. The quantum of quality seeds has crossed 100 lakh quintals.
The Seeds Act, 1966 and Seeds Control Order promulgated thereunder, and the New Policy on Seeds Development, 1988, form the basis of promotion and regulation of the Seed Industry.
Far-reaching changes, however, have taken place in the national economic and agricultural scenario and in the international environment since the enactment of the existing seed legislation and the announcement of the 1988 Policy.
Aims and Objectives
It has become evident that in order to achieve the food production targets of the future a major effort will be required to enhance the seed replacement rates of various crops. A major increase in the production of quality seeds is required in which the private sector is expected to play a significant role. At the same time, private and Public Sector Seed Organizations at both Central and State levels are expected to adopt economic pricing policies that would seek to realize the true cost of production.
The creation of a facilitative climate for growth of a competitive and localized seed industry, encouragement of import of useful germplasm and boosting of exports are the core elements of the agricultural strategy of the new millennium.
Biotechnology will be a key factor in agricultural development in the coming decades.
Genetic engineering/modification techniques hold enormous promise in developing crop varieties with a higher level of tolerance to biotic and abiotic stresses.
A conducive atmosphere for application of frontier sciences in varietal development and for enhanced investments in research and development is a pressing requirement. At the same time, concerns relating to possible harm to human and animal health and bio-safety, as well as interests of farmers, must be addressed.
Globalization and economic liberalization have opened up new opportunities as well as challenges. The main objectives of the National Seeds Policy, therefore, are the provision of an appropriate climate for the seed industry to utilize available and prospective opportunities, safeguarding of the interests of Indian farmers and the conservation of agro-biodiversity. While unnecessary regulation needs to be dismantled, it must be ensured that gullible farmers are not exploited by unscrupulous elements. A regulatory system of a new genre is, therefore, needed, which will encompass quality assurance mechanisms coupled with facilitation of a vibrant and responsible seed industry.
Varietal Development and Plant Variety Protection
• The development of new and improved varieties of plants and availability of such varieties to Indian farmers is of crucial importance for a sustained increase in agricultural productivity.
• Appropriate policy framework and programmatic interventions will be adopted to stimulate varietal development in tune with market trends, scientific-technological advances, suitability for biotic and
abiotic stresses, locational adaptability and farmers'
needs.
• An effective sui generis system for intellectual property protection will be implemented to stimulate investment
in research and development of new plant varieties
and to facilitate the growth of the Seed Industry in the country.
• A Plant Varieties & Farmers' Rights Protection (PVP) Authority will be established which will undertake registration of extant and new plant varieties through the Plant Varieties Registry on the basis of varietal characteristics.
• The registration of new plant varieties by the PVP Authority will be based on the criteria of novelty, distinctiveness, uniformity and stability.
• The criteria of distinctiveness, uniformity and stability could be relaxed for registration of extant varieties, which will be done within a specified period to be decided by the PVP Authority.
• Registration of all plant genera or species as notified by the Authority will be done in a phased manner.
• The PVP Authority will develop characterisation and documentation of plant varieties registered under the PVP Act and cataloguing facilities for all varieties of plants.
• The rights of farmers to save, use, exchange, share or sell farm produce of all varieties will be protected, with the proviso that farmers shall not be entitled to sell branded seed of a protected variety under the brand name.
• The rights of researchers to use the seed/planting material of protected varieties for bonafide research and breeding of new plant varieties will be ensured.
• Equitable sharing of benefit arising out of the use of plant genetic resources that may accrue to a breeder from commercialisation of seeds/planting materials of a new variety, will be provided.
• Farmers/groups of farmers/village communities will be rewarded suitably for their significant contribution in evolution of a plant variety subject to registration. The contribution of traditional knowledge in agriculture needs to be highlighted through suitable mechanisms and incentives.
• A National Gene Fund will be established for implementation of the benefit sharing arrangement, and payment of compensation to village communities for their contribution to the development and conservation of plant genetic resources and also to promote conservation and sustainable use of genetic resources. Suitable systems will be worked out to identify the contributions from traditional knowledge and heritage.
• Plant Genetic Resources for Food and Agriculture Crops will be permitted to be accessed by Research Organisations and Seed Companies from public collections as per the provisions of the 'Material Transfer Agreement' of the International Treaty on Plant Genetic Resources and the Biological Diversity Bill.
• Regular interaction amongst the Private and Public Researchers, Seed Companies/Organisations and Development Agencies will be fostered to develop and promote growth of a healthy seed industry in the country.
• To keep abreast of global developments in the field of Plant Variety Protection and for technical collaboration, India may consider joining Regional and International Organisations.
• The PVP Authority may, if required, resort to compulsory licensing of a protected variety in public interest on the ground that requirements of the farming community for seeds and propagating material of a variety are not being met or that the production of the seeds or planting material of the protected variety is not being facilitated to the fullest possible extent.
Seed Production
• To meet the Nation's food security needs, it is important to make available to Indian farmers a wide range of seeds of superior quality, in adequate quantity on a timely basis. Public Sector Seed Institutions will be encouraged to enhance production of seed towards meeting the objective of food and nutritional security.
• The Indian seed programme adheres to the limited three generation system of seed multiplication, namely, breeder, foundation and certified seed. Breeder seed is the progeny of nucleus seed.
• Nucleus seed is the seed produced by the breeder to develop the particular variety and is directly used for multiplication as breeder seed.
• Breeder seed is the seed material directly controlled
by the originating or the sponsoring breeder or
Institution for the initial and recurring production of foundation seed.
• Foundation seed is the progeny of breeder seed. Foundation seed may also be produced from foundation seed. Production of foundation seed stage-I and stage-II may thus be permitted, if supervised and approved by the Certification Agency and if the production process is so handled as to maintain specific genetic purity and identity.
• Certified seed is the progeny of foundation seed or the progeny of certified seed. If the certified seed is the progeny of certified seed, then this reproduction will not exceed three generations beyond foundation stage-I and it will be ascertained by the Certification Agency that genetic identity and genetic purity has not been significantly altered.
• Public Sector Seed Production Agencies will continue to have free access to breeder seed under the National Agriculture Research System. The State Farms Corporation of India and National Seeds Corporation will be restructured to make productive use of these organisations in the planned growth of the Seed Sector.
• Private Seed Production Agencies will also have access to breeder seed subject to terms and conditions to be decided by Government of India.
• State Agriculture Universities/ICAR Institutes will have the primary responsibility for production of breeder seed as per the requirements of the respective States.
• Special attention will be given to the need to upgrade the quality of farmers' saved seeds through interventions such as the Seed Village Scheme.
• Seed replacement rates will be raised progressively with the objective of expanding the use of quality seeds.
• DAC, in consultation with ICAR and States, will prepare a National Seed Map to identify potential, alternative
and non-traditional areas for seed production of specific crops.
• To put in place an effective seed production programme, each State will undertake advance planning and prepare a perspective plan for seed production and distribution over a rolling (five to six year) period. Seed Banks will be set up in non-traditional areas to meet demands for seeds during natural calamities.
• The 'Seed Village Scheme' will be promoted to facilitate production and timely availability of seed of desired crops/varieties at the local level. Special emphasis will be given to seed multiplication for building adequate stocks of certified/quality seeds by providing foundation seed to farmers.
• For popularising newly developed varieties and promoting seed production of these varieties, seed mini kits of pioneering seed varieties will be supplied to farmers. Seed exchange among farmers and seed producers will be encouraged to popularise new/non-traditional varieties.
• Seeds of newly developed varieties must be made available to farmers with minimum time gap. Seed producing agencies will be encouraged to tie up with Research Institutions for popularization and commercialization of these varieties.
• As hybrids have the potential to improve plant vigour and increase yield, support for production of hybrid seed will be provided.
• Seed production will be extended to agro-climatic zones which are outside the traditional seed growing areas, in order to avoid unremunerative seed farming in unsuitable areas.
• Seed Banks will be established for stocking specified quantities of seed of required crops/varieties for ensuring timely and adequate supply of seeds to farmers during adverse situations such as natural calamities, shortfalls in production, etc. Seed Banks will be suitably strengthened with cold storage and pest control facilities.
• The storage of seed at the village level will be encouraged to facilitate immediate availability of seeds in the event of natural calamities and unforeseen situations. For the storage of seeds at farm level, scientific storage structures will be popularised and techniques of scientific storage of seeds will be promoted among farmers as an extension practice.
• Seed growers will be encouraged to avail of Seed Crop Insurance to cover risk factors involved in production of seeds. The Seed Crop Insurance Scheme will be reviewed so as to provide effective risk cover to seed producers and will be extended to all traditional and non-traditional areas covered under the seed production programme.
Quality Assurance
• The Seeds Act will be revised to regulate the sale, import and export of seeds and planting materials of agriculture crops including fodder, green manure and horticulture and supply of quality seeds and planting materials to farmers throughout the country.
• The National Seeds Board (NSB) will be established in place of existing Central Seed Committee and Central Seed Certification Board. The NSB will have permanent existence with the responsibility of executing and implementing the provisions of the Seeds Act and advising the Government on all matters relating to seed planning and development. The NSB will function as the apex body in the seed sector.
• All varieties, both domestic and imported varieties, that are placed on the market for sale and distribution of seeds and planting materials will be registered under the Seeds Act. However, for vegetable and ornamental crops a simple system of varietal registration based on "breeders declaration" will be adopted.
• The Board will undertake registration of kinds/varieties of seeds that are to be offered for sale in the market, on the basis of identified parameters for establishing value for cultivation and usage (VCU) through testing/trialling.
• Registration of varieties will be granted for a fixed period on the basis of multilocational trials to determine VCU over a minimum period of three seasons, or as otherwise prescribed as in the case of long duration crops and horticultural crops. Samples of the material for registration will be sent to the NBPGR for retention in the National Gene Bank.
• Varieties that are in the market at the time of coming into force of the revised Seeds Act, will have to be registered within a fixed time period, and subjected to such testing as will be notified.
• The NSB will accredit ICAR, SAUs, public/private organisations to conduct VCU trials of all varieties for the purpose of registration as per prescribed standards.
• The NSB will maintain the National Seeds Register containing details of varieties that are registered. This will help the Board to coordinate and assist activities of the States in their efforts to provide quality seeds to farmers.
• The NSB will prescribe minimum standards (of germination, genetic characteristics, physical purity, seed health, etc.) as well as suitable guidelines for registration of seed and planting materials.
• Provisional registration would be granted on the basis of information filed by the applicant relating to trials over one season to tide over the stipulation of testing over three seasons before the grant of registration.
• Government will have the right to exclude certain kinds or varieties from registration to protect public order or human, animal and plant life and health, or to avoid serious prejudice to the environment.
• The NSB will have the power to cancel the registration granted to a variety if the registration has been obtained by misrepresentation or concealment of essential data, the variety is obsolete and has outlived its utility and if the prevention of commercial exploitation of such variety is necessary in the public interest.
• Registration of Seed Processing Units will be required if such Units meet the prescribed minimum standards for processing the seed.
• Seed Certification will continue to be voluntary. The Certification tag/label will provide an assurance of quality to the farmer.
• The Board will accredit individuals or organisations to carry out seed certification including self-certification on fulfillment of criteria as prescribed.
• To meet quality assurance requirements for export of seeds, Seed Testing facilities will be established in conformity with ISTA and OECD seed certification programmes.
• The State Government, in conformity with guidelines
and standards specified by the Board, will establish one or more State Seed Testing Laboratories or declare any Seed Testing Laboratory in the Government or non-Government Sector as a State Seed Testing Laboratory where analysis of seeds will be carried out in the prescribed manner.
• Farmers will be encouraged to use certified seeds to ensure improved performance and output.
• Farmers will retain their right to save, use, exchange, share or sell their farm seeds and planting materials without any restriction. They will be free to sell their seed on their own premises or in the local market without any hindrance provided that the seed is not branded. Farmers' right to continue using the varieties of their choice will not be infringed by the system of compulsory registration.
• Stringent measures would be taken to ensure the availability of high quality of seeds and check the sale of spurious or misbranded seeds.
Seed Distribution and Marketing
• The availability of high quality seeds to farmers through an improved distribution system and efficient marketing set-up will be ensured to facilitate greater security of seed supply.
• For promoting efficient and timely distribution and marketing of seed throughout the country, a supportive environment will be provided to encourage expansion of the role of the private seed sector. Efforts will be made to achieve better coordination between State Governments to facilitate free Inter-State movement of seed and planting material through exemption of duties and taxes.
• Private Seed Sector will be encouraged and motivated to restructure and reorient their activities to cater to non-traditional areas.
• A mechanism will be established for collection and dissemination of market intelligence regarding preference of consumers and farmers.
• A National Seed Grid will be established as a data-base for monitoring of information on requirement of seed, its production, distribution and preference of farmers on a district-wise basis.
• Access to term finance from Commercial Banks will be facilitated for developing efficient seed distribution and marketing facilities for growth of the seed sector.
• Distribution and marketing of seed of any variety, for the purpose of sowing and planting will be allowed only if the said variety has been registered by the National Seeds Board.
• National Seeds Board can direct a dealer to sell or distribute seeds in a specified manner in a specified area if it is considered necessary to the public interest.
Infrastructure Facilities
• To meet the enhanced requirement of quality/certified seeds, creation of new infrastructure facilities along with strengthening of existing facilities, will be promoted.
• National Seed Research and Training Center will be set up to impart training and build a knowledge base in various disciplines of the seed sector.
• The Central Seed Testing Laboratory will be established at the National Seed Research and Training Center to perform referral and other functions as required under the Seeds Act.
• Seed processing capacity will be augmented to meet the enhanced requirement of quality seed.
• Modernisation of seed processing facilities will be encouraged in terms of modern equipment and latest techniques, such as seed treatment for enhancement of performance of seed, etc.
• Conditioned storage for breeder and foundation seed and aerated storage for certified seed would be created in different regions.
• A computerized National Seeds Grid will be established to provide information on availability of different varieties of seeds with production agencies, their location, quality etc. This network will facilitate optimum utilisation of available seeds in every region.
• Initially, seed production agencies in the public sector would be connected with the National Seed Grid, but progressively the private sector will be encouraged to join the Grid for providing a clear assessment of demand and supply of seeds.
• State Governments, or the National Seeds Board in consultation with the concerned State Government, may establish Seed Certification Agencies.
• State Governments will establish appropriate systems for effective execution and implementation of the objectives and provisions of the Seeds Act.
Transgenic Plant Varieties
• Biotechnology will play a vital role in the development of the agriculture sector. This technology can be used not only to develop new crops/varieties, which are tolerant to disease, pests and abiotic stresses, but also to improve productivity and nutritional quality of food.
• All genetically engineered crops/varieties will be tested for environment and bio-safety before their commercial release, as per the regulations and guidelines of the Environment Protection Act (EPA), 1986.
• The EPA, 1986, read with the Rules, 1989 would adequately address the safety aspects of transgenic seeds/planting materials. A list will be generated from Indian experience of transgenic cultivars that could be rated as environmentally safe.
• Seeds of transgenic plant varieties for research purposes will be imported only through the National Bureau of Plant Genetic Resources (NBPGR) as per the EPA, 1986.
• Transgenic crops/varieties will be tested to determine their agronomic value for at least two seasons under the All India Coordinated Project Trials of ICAR, in coordination with the tests for environment and bio-safety clearance as per the EPA before any variety is commercially released in the market.
• After the transgenic plant variety is commercially released, its seed will be registered and marketed in the country as per the provisions of the Seeds Act.
• After commercial release of a transgenic plant variety, its performance in the field, will be monitored for at least 3 to 5 years by the Ministry of Agriculture and State Departments of Agriculture.
• Transgenic varieties can be protected under the PVP legislation in the same manner as non-transgenic varieties after their release for commercial cultivation.
• All seeds imported into the country will be required to be accompanied by a certificate from the Competent Authority of the exporting country regarding their transgenic character or otherwise.
• If the seed or planting material is a product of transgenic manipulation, it will be allowed to be imported only with the approval of the Genetic Engineering Approval Committee (GEAC), set up under the EPA, 1986.
• Packages containing transgenic seeds/planting materials, if and when placed on sale, will carry a label indicating their transgenic nature. The specific characteristics including the agronomic/yield benefits, names of the transgenes and any relevant information shall also be indicated on the label.
• Emphasis will be placed on the development of infrastructure for the testing, identification and evaluation of transgenic planting materials in the country.
Import of Seeds and Planting Material
• The objective of the import policy is to provide the best planting material available anywhere in the world to Indian farmers, to increase productivity, farm income and export earnings, while ensuring that there is no deleterious effect on environment, health and bio-safety.
• While importing seeds and planting material, care will be taken to ensure that there is absolutely no compromise on the requirements under prevailing plant quarantine procedures, so as to prevent entry into the country of exotic pests, diseases and weeds detrimental to Indian agriculture.
• All imports of seeds will require a permit granted by the Plant Protection Advisor to the Government of India, which will be issued within the minimum possible time frame.
• All import of seeds and planting materials, etc. will be allowed freely subject to EXIM Policy guidelines and the requirements of the Plants, Fruits and Seeds (Regulation of import into India) Order, 1989 as amended from time to time. Import of parental lines of newly developed varieties will also be encouraged.
• Seeds and planting materials imported for sale into the country will have to meet minimum seed standards of seed health, germination, genetic and physical purity as prescribed.
• All importers will make available a small sample of the imported seed to the Gene Bank maintained by NBPGR.
• The existing policy, which permits free import of seeds of vegetables, flowers and ornamental plants, cuttings, saplings of flowers, tubers and bulbs of flowers by certain specified categories of importers will continue. Tubers and bulbs of flowers will be subjected to post-entry quarantine.
• After the arrival of consignments at the port of entry, quarantine checks would be undertaken; which may include visual inspection, laboratory inspection, fumigation and grow-out tests. For the purpose of these checks, samples will be drawn and the tests will be conducted concurrently.
Export of Seeds
• Given the diversity of agro-climatic conditions, strong seed production infrastructure and market opportunities, India holds significant promise for export of seeds.
• Government will evolve a long term policy for export of seeds with a view to raise India's share of global seed export from the present level of less than 1% to 10% by the year 2020.
• The export policy will specifically encourage custom production of seeds for export and will be based on long term perspective, dispensing with case to case consideration of proposals.
• Establishment and strengthening of Seeds Export Promotion Zones with special incentives from the Government will be facilitated.
• A data bank will be created to provide information on the International Market and on export potential of Indian varieties in different parts of the world.
• A data base on availability of seeds of different crops to assess impact of exports on domestic availability of seeds will be created.
• Promotional programmes to improve the quality of Indian seeds to enhance its acceptability in the International Market will be taken up.
• Testing and certification facilities will be established in conformity with international requirements.
Promotion of Domestic Seed Industry
• Incentives will be provided to the domestic seed industry to enable it to produce seeds of high yielding varieties and hybrid seeds at a faster pace to meet the challenges of domestic requirements.
• Seed Industry will be provided with a congenial and liberalized climate for increasing seed production and marketing, both domestic and international.
• Membership to International Organisations and Seed Associations like ISTA, OECD, UPOV, ASSINSEL, WIPO, at the National level or at the level of individual seed producing agencies, will be encouraged.
• Emphasis will be given to improving the quality of seed produced and special efforts will be directed towards improving the quality of farmers' saved seeds.
• Financial support for capital investment, working capital and infrastructure strengthening will be facilitated through NABARD/Commercial Banks/Cooperative Banks.
• Tax rebate/concessions will be considered on the expenditure incurred on in-house research and development of new varieties and other seed related research aspects. In order to develop a competitive seed market, the States will be encouraged to remove unnecessary local taxation on sales of seeds.
• To encourage seed production in non-traditional areas including backward areas, special incentives such as transport subsidy will be provided to seed producing agencies operating in these marginalised areas.
• Reduction of import duty will be considered on machines and equipment used for seed production and processing which are otherwise not manufactured in the country.
Strengthening of Monitoring System
• The Department of Agriculture & Cooperation (DAC) will supervise the overall implementation and monitoring of the National Seeds Policy.
• The physical infrastructure in terms of office automation, communication facilities, etc., in DAC will be augmented in a time bound manner.
• The technical capacity of DAC need to be augmented and strengthened to undertake the additional work relating to implementation of National Seeds Policy, implementation of PVP&FR Bill, Seeds Act, Import and Export of Seeds, etc.
• Capacity building, including National and International training and participation in Seminars/Workshops will be organized for concerned officials.
Conclusion
The Government of India trusts that the National Seeds Policy will receive the fullest support of State Governments/Union Territory Administrations, State Agricultural Universities, plant breeders, seed producers, the seed industry and all other stakeholders, so that it may serve as a catalyst to meet the objectives of sustainable development of agriculture, food and nutritional security for the population, and improved standards of living for farming communities.
The National Seeds Policy will be a vital instrument in attaining the objectives of doubling food production and making India hunger free. It is expected to provide the impetus for a new revolution in Indian agriculture, based on an efficient system for supply of seeds of the best quality to the cultivator.
The National Seeds Policy will lay the foundation for comprehensive reforms in the seed sector. Significant changes in the existing legislative framework will be effected accompanied by programmatic interventions. The Policy will also provide the parameters for the development of the seed sector in the Tenth and subsequent Plans. The progress of implementation of the Policy will be monitored by a High Level Review Committee.
Growth of Crop Area, Production and Productivity
Land Utilisation
Land utilisation statistics are available for 92.9 per cent of total geographical area of 3,287.3 lakh hectares.
Annual growth of crop area, production and yield in respect of cereals, oilseeds and other crops is given below (per cent per annum):
2003-04 2004-05
Crop Area Production Yield Area Production Yield
Rice 3.4 23.3 19.2 -1.6 -6.1 -4.6
Wheat 5.6 9.7 4.0 -0.8 -4.9 -4.1
Coarse Cereals 14.1 44.9 27.0 -5.8 -11.6 -6.2
Total Cereals 7.1 21.0 13.0 -2.7 -6.5 -3.9
Total Pulses 14.5 33.1 16.3 -3.0 -10.7 -8.0
Foodgrains 8.4 22.6 13.0 -2.7 -7.1 -4.5
Nine Oilseeds 10.1 69.8 54.2 16.3 -2.5 -16.2
Cotton (lint) -0.9 59.2 60.7 15.6 19.7 3.5
Sugarcane -12.9 -18.6 -6.6 -7.0 1.4 9.0
Non Foodgrains 8.1 19.2 10.2 9.8 2.5 -6.6
All Principal Crops 8.3 21.0 11.7 0.7 -2.7 -3.5
According to Land Use Statistics available from States, the area under forest had increased from 404.8 lakh hectares in 1950-51 to 695.5 lakh hectares in 2003-04. Net sown area increased from 1,187.5 lakh hectares to 1,409.6 lakh hectares during the same period. Broad cropping pattern indicates that though foodgrains have a preponderance in gross cropped area as compared to non-foodgrains, their relative share came down from 76.7 per cent during 1950-51 to 65.6 per cent during 2003-04.
Technology Mission on Oilseeds, Pulses and Maize
The Technology Mission on Oilseeds was launched by the Central Government in 1986 to increase the production of oilseeds to reduce import and achieve self-sufficiency in edible oils. Subsequently pulses, oil palm and maize were also brought within the purview of the Mission in 1990-91, 1992 and 1995-96 respectively. In addition the National Oilseeds and Vegetable Oils Development (NOVOD) Board is also supplementing the efforts of TMOP by opening of newer areas for non-traditional oilseeds. It is promoting tree-borne oilseeds. The schemes implemented under TMOP are:
i. Oilseeds Production Programme (OPP)
ii. National Pulses Development Project (NPDP)
iii. Accelerated Maize Development Programme (AMDP)
iv. Post Harvest Technology (PHT)
v. Oil Palm Development Programme (OPDP) and
vi. National Oilseeds and Vegetable Oils Development Board (NOVOD).
During the Tenth Plan these schemes have been restructured as:
i. Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) by converging the ongoing schemes of OPP, NPDP, AMDP and OPDP
ii. Research and Development in Post Harvest and Processing Technology (PHT) in Oilseeds, Pulses, Oil Palm and Maize including TMOP Headquarter and
iii. Integrated Development of Tree Borne Oilseeds to be implemented by NOVOD Board.
Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize:Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize:Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize:Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize: In order to provide flexibility to the States in implementation based on regionally differentiated approach, to promote crop diversification and to provide focused approach to the programmes, the four on-going schemes of OPP, OPDP, NPDP, and AMDP have been merged into one Centrally Sponsored Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) during the 10th Five year Plan which is being implemented with effect from 1 April 2004. The scheme is being implemented in 14 major oilseeds and pulses growing States for oilseeds and pulses and 15 major maize growing states for Maize and in 10 states for oil palm.
The ISOPOM has the following special features:
i. Flexibility to the States to utilise the funds for the scheme/crop of their choice
ii. Annual action plan to be formulated by the State Governments for consideration and approval of the Government of India
iii. Flexibility to the State for introducing innovative measures or any special component to the extent of 10 per cent of financial allocation
iv. Involvement of private sector by the State Governments for the implementation of the programme with a financial cap of 15 per cent
v. Flexibility for inter-component diversion of funds upto 20 per cent for non-seed components only and
vi. Diversion of funds from seed components to non-seed components with prior approval of the Department of Agriculture and Cooperation.
New components of ISOPOM included during 10th Plan are:
i. Inclusion of HDPE pipes
ii. Publicity
iii. Involvement of Private Sector including NGOs, Farmers' Organisation, Cooperative bodies, Public Sector Agencies, etc
iv. Innovative measures and additional components
v. Training of Officers/Extension workers and
vi. Foreign Visits.
Implementation of oilseeds production programme has helped in increasing the production of oilseeds from 108.30 lakh tonnes in 1985-86 to 266.97 (IIIrd Advance Estimate) lakh tonnes during 2005-06.
The pulses production in the country increased from 128.60 lakh in 1989-90 to 139.20 (IIIrd Advance Estimate) tonnes in 2005-06. The area under oil palm increased from 8585 ha. at the end of 1992-93 to 71938 ha. upto 2005-06. Actual production of Fresh Fruit Bunches (FFBs) upto 2003-04 was 40,000 tonnes (Approx.) yielding around 25,000 tonnes (Approx.) of crude palm oil (CPO). The production of maize increased from 88.84 lakh tonnes in 1994-95 to 149.9 lakh tonnes in 2003-04.
Research and development in post Harvest and Processing in Oilseeds, oil Palm and Maize: The scheme of Post Harvest Technology (PHT) for Oilseeds, Pulses and Maize was brought under the purview of the TMOP with the objective of stepping up their production through efficient scientific processing for realising the ultimate objective of self-reliance in edible oils and other crops and bringing about a position of zero imports.
The Technology Mission had been emphasised on development of Post Harvest Technology (PHT) with the following objectives:
i. Optimising oil recovery from oilseeds by developing efficient modern oil expellers
ii. Tapping full potential of Rice Bran Oil (RBO)-in the country
iii. Developing value added products in respect of oilseeds, pulses and maize so that farmers are able to get a better/remunerative price
iv. Designing and developing indigenous technology for processing of non-conventional and tree borne oilseeds including oil palm
v. Developing of indigenous technology in maize processing suitable in the context of Indian situation and
vi. Dissemination of the R&D Technologies developed through demonstration programmes.
The indigenous technologies developed through R&D programmes were popularised by setting up demonstration units in industries with partial grant-in-aid assistance from the Department of Agriculture and Cooperation.
The partial grant-in-aid assistance was provided in the form of plant and machinery.
The scheme has been discontinued from 2005-06 by the Planning Commission.
Intergrazed Development of Tree Borne Oliseed by NOVDO Board: National Oilseed and Vegetable Oils Development (NOVOD) Board is exploring and augmenting the potential of Tree Borne Oilseeds (TBOs) in the country by undertaking activities like back-ended credit linked subsidy programmes consisting of establishment of seed procurement centres, installation of multi-purpose pre-processing and processing facilities, installation of oil expellers, nursery raising and commercial plantation and promotional programmes like development of elite planting material, elite nursery raising and plantation, awareness programmes, establishment of TBO garden, etc.
The Board has initiated plantation programmes of Jatropha curcas, and karanja Pongamia pinnata for bio-diesel production in the country in more than 10,000 ha. areas in the 25 States/Union Territories of the country.
Besides 128 TBO gardens have also been established to demonstrate the silvicultural practices coupled with IPM for early adoption of TBO plantation in 12 States.
Further, transfer of technology programmes consisting of 136 farmer's training, 48 trainer's training and 22 workshops have also been organised for motivating farmers to adopt TBO plantation and create awareness among primary seed collectors.
The elite planting material and planting techniques as well as location specific package of practices are being evolved through a national network of 42 R&D institutions in the country. Under the awareness programme, 2300 farmers have been trained and motivated for raising TBOs by conducting 46 farmer's training in the various States. Similarly, 600 field level functionary and volunteers have been trained through 12 trainer's training programme.
Eight oil expellers have been installed in the State of A.P., Bihar, Karnataka and Tamil Nadu. Six more oil expellers are being installed for extraction of oil from TBOs.
Crop Production Programme
The Crop Development schemes, viz.,
i. Integrated Cereal Development Programme in Wheat based cropping systems areas (ICDP-Wheat)
ii. Integrated Cereals Development Programme in Rice based cropping systems areas (ICDP-Rice)
iii. Integrated Cereal Development Programme on Coarse Cereals Based Cropping Systems Areas (ICDP-Coarse Cereals),
iv. Sustainable Development of Sugarcane Based Cropping System (SUBACS) and
v. Special Jute Development Programme (SJDP) implemented during Ninth plan have since been subsumed under Macro Management of Agriculture Scheme w.e.f. October 2000 to give more flexibility to the State Governments. Assistance is provided to the States for implementation of these programmes based on the Work Plans prepared by them according to regional needs.
The Centrally Sponsored Scheme of Intensive Cotton Development Programme (ICDP) now modified as a Mini-Mission_II of the Technology Mission on Cotton.
Mission on Cotton, is continuing during 2006-07. The scheme is being implemented in 13 States. The aim of the scheme is to increase the production and productivity of cotton. The scheme provides assistance for extension and development activities.
As a new initiative, a Centrally Sponsored Scheme-On Farm Water Management for encouraging crop production in Eastern India was launched in March 2002. The objective of the scheme was to increase the production and productivity of foodgrains through focus on exploitation of ground/surface water and its efficient utilisation.
The scheme help in enhancing the income of the farmers and diversifying agriculture production in eastern India.
The Scheme was in operation in all districts of Assam, Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Manipur, Mizoram, Orissa, nine districts of West Bengal and 35 districts
of Eastern Uttar Pradesh. The main components of the scheme were:
i. Assistance for installation of shallow tubewells with pump sets
ii. Assistance for electric/diesel pump sets
iii. Assistance for community lift irrigation points and
iv. Assistance for dug wells in the plateau region.
The scheme was being implemented as credit linked back-ended subsidy basis through NABARD in coordination with the State Governments. The funding pattern of the scheme was 20:30:50 basis, i.e., 20 per cent contributed by the beneficiaries, 30 per cent subsidy from Government of India and 50 per cent as bank loan. The scheme has since been discontinued from 2006-07.
Horticulture
India is bestowed with varied agro-climate, which is highly favourable for growing a large number of horticultural crops such as fruits, vegetables, root tuber, ornamental, aromatic plants, medicinal, spices and plantation crops like coconut, arecanut, cashew and cocoa.
Presently, horticultural crops occupy around 10 per cent of gross cropped area of the country producing 160.75 million tonnes. India is the second largest producer of fruits and vegetables.
Total production of fruits has been estimated at 49.36 million tonnes from 4.81 million ha.
Vegetables occupy an area of 6.3 million ha. with a production of 93.00 million tonnes. Our share in world fruit and vegetable production is 10 per cent and 13.28 per cent respectively.
• Fruits: India has a large range of varieties of fruit in its basket and accounts for 10 per cent of world's total fruit production. Mango, banana, citrus, pineapple, papaya, guava, sapota, jackfruit, litchi and grape, among the tropical and sub-tropical fruits; apple, pear, peach, plum, apricot, almond and walnut among the temperate fruits and aonla, ber, pomegranate, annona, fig, phalsa among the arid zone fruits are important. India leads the world in the production of mango, banana, sapota and acid lime and in productivity of grapes per unit land area.
India is the largest producer of mango, banana, sapota and acid lime. About 39 per cent of world's mango and 23 per cent of world's banana is produced in the country. In grapes, India has recorded the highest productivity per unit area in the world. The overall production of horticultural crops registered an increase of 8.0 per cent during 2004-05 as compared to 2003-04. The percentage increase in fruit production has been to the tune of 1.5 per cent during the period.
• Vegetables: More than 40 kinds of vegetables belonging to different groups, namely, solanaceous, cucurbitaceous, leguminous, cruciferous (cole crops), root crops and leafy vegetables are grown in India in tropical, sub-tropical and temperate regions. Important vegetable crops grown in the country are tomato, onion, brinjal, cabbage, cauliflower, okra and peas.
India is next only to China in area and production of vegetables and occupies prime position in the production of cauliflower, second in onion and third in cabbage in the world. The area and production of major vegetables during 2004-05 is estimated at 6.30 million ha with a production of 93.0 million tonnes and average productivity of 14.8 tonnes per ha. The production has increased by 5.7 per cent.
• Flowers: Though flower cultivation has been practised in India since times immemorial, floriculture has blossomed into a viable business only in recent years. The increased growing of contemporary cut flowers like rose, gladiolus, tuberose, carnation, etc., has led to their use for bouquets and arrangements for gifts, as well as decoration of both home and work place. A growing market, as a result of improvement in the general level of well being in the country and increased affluence, particularly among the middle class, has led to transformation of the activity of flower growing into a burgeoning industry. Availability of diverse agro-climatic conditions in this large country facilitates production of all major flowers throughout the year in some part or the other, and improved transportation facilities, have increased the availability of flowers all over the country.
India has made noticeable advancement in the production of flowers. Floriculture is estimated to cover an area of 1.14 lakh ha. with a production of 6,70,000 MT of loose flowers and 13009.3 million cut flowers.
• Spices: Spices constitute an important group of horticultural crops and are defined as vegetable products or mixture thereof, free from extraneous matter, used for flavouring, seasoning and imparting aroma in foods. The term applies equally to the product in the whole form or in the ground form. India is known as the home of spices and produces a wide variety of spices like black pepper, cardamom (small and large) ginger, garlic, turmeric, chilli and a large variety of tree and seed spices.
India is the largest producer, consumer and exporter of spices and spice products. The total production of spices was 4.3 million metric tonnes and the area covered was 2.56 million hectares.
• Plantation Crops: Plantation crops constitute a large group of crops. The major plantation crops include coconut, arecanut, oil palm, cashew, tea, coffee and rubber, the minor plantation crops include cocoa. Their total coverage is comparatively less and they are mostly confined to small holdings. However, they play an important role in view of their export potential as well as domestic requirements and in employment generation and poverty alleviation programmes particularly in rural sector.
India is also the largest producer and consumer of cashew nuts. It is estimated that total production of cashew is around 0.57 million tonnes from an area of 0.24 million hectares. The cultivation of vanilla in India started in 1990s and was confined mostly to Karnataka and Kerala and to a lesser extent in Tamil Nadu, Northeast region, Lakshadweep and the Andaman and Nicobar Islands. India's production of vanilla was about 101 Metric Tonnes from about 27,811 hectare in 2004-05. Coconut is grown in an area of 1.93 million ha. with a production of 12,148 million nuts and productivity of 6285 nuts per ha. India is the third largest producer of coconut and leads 90 coconut-producing countries of the world. It occupies number one position in arecanut production. India has been considered as a treasure house of valuable medicinal and aromatic plant species. The Government of India have identified and documented over 9,500 plant species considering their importance in the pharmaceutical industry. Out of these, about 65 plants have large and consistent demand in world trade. As a result, horticulture is not only an integral part of food and nutritional security, but also an essential ingredient of economic security.
• Medicinal and Aromatic Plants: Medicinal and aromatic plants have been used in the country for a long time for their medicinal properties. About 2000 native plant species have curative properties and 1300 species are known for their aroma and flavour. The Indian systems of medicines, popularly known as Ayurveda, Unani and Siddha drugs are of great demand in the country. There is already a spurt in demand for plant-based drugs and lately many such native species of medicinal values are being brought under systematic cultivation.
India has been considered as a treasure house of valuable medicinal and aromatic plant species. The Ministry of Environment and Forests, Government of India have identified and documented over 9,500 plant species considering their importance in the pharmaceutical industry. Out of these, about 65 plants have large and consistent demand in world trade. India however produces only limited quantities of these materials. In terms of market share in production value, India holds only the 6th place with a mere 7 per cent share. On the contrary, we are still importing about 10 types of essential oils to the tune of 8000 tonnes per annum.
• Programmes For Horticulture Development:
* National Horticulture Mission: A Centrally Sponsored Scheme of National Horticulture Mission (NHM) has been launched in the country from May 2005 during the current financial year for the development of horticulture duly ensuring end to end approach having backward and forward linkages covering research, production, post-harvest management, processing and marketing. The focus areas of the Mission will be as under:
• Capacity building for production and supply of adequate quality planting material including setting up of scion banks of high yielding mother plants.
• Increased coverage of crops under improved/high yielding cultivars.
• Enhanced production and productivity of horticulture crops.
• Strengthening of infrastructure facilities such as soil and leaf analysis labs, survey and surveillance of pest and diseases, green house, poly houses, micro irrigation, plant health clinics, vermicompost, etc.
• Build adequate infrastructure for on-farm and post-harvest handling.
• Enhanced production of high value and low volume horticultural products for exports.
• Strengthening infrastructure facilities for marketing and export.
• Enhanced production of high value processed products.
• Build a strong base to enhance efficiency in adoption of technologies.
A technology driven cluster approach with focussed attention on competitive horticulture crops, is the underlying approach of the National Horticulture Mission.
Technology Mission for Intergrated Development of Horticulture in North Eastern, States, Sikkim, Jammu and Kashmir, Himachal Pradesh and Uttaranchal: The Centrally Sponsored Scheme on Technology Mission for Integrated Development of Horticulture in North Eastern region including Sikkim was continued during the year.
The implementation of the scheme has been extended to the States of J&K, Himachal Pradesh and Uttaranchal.
The scheme aims at establishing convergence and synergy among numerous ongoing governmental programmes through horizontal and vertical integration of these programmes which will ensure adequate, appropriate, timely and concurrent attention to all the links in the production, post harvest and consumption chain.
The Small Farmer's Agribusiness Consortium (SFAC) is involved in coordinating the scheme.
The Technology Mission through its four Mini Missions addresses all the aspects of Horticulture development with an end-to-end approach.
Mini Mission I involving research is coordinated and implemented by the Indian Council of Agricultural Research (ICAR). Mini Mission-II covering production and productivity improvement activities is coordinated by the Department of Agriculture and Cooperation and implemented by the Agriculture/Horticulture Departments of the States.
Mini Mission-III involving post-harvest management, marketing and export is coordinated by National Horticulture Board and Mini Mission-IV involving processing is coordinated and implemented by the Ministry of Food Processing Industries.
State level SFACs have also been constituted in most of the implementing States for monitoring and implementing the programme at the grass-root level. Under the Technology Mission, funds to the states are made available on the basis of yearly action plans/proposals, which are approved by the State Level Steering Committee under the chairmanship of Chief Secretary of the concerned state. Some of the major achievements made so far under the scheme are:
• 97503 hectares of additional area have been brought under different horticultural crops.
• The area covered under fruits, vegetables and spice crops are 50667 ha, 16252 ha and 20262 ha respectively.
• An area of 5858 ha has been covered under high value crops like medicinal and aromatic plants and flowers.
• Infrastructure facilities for production of quality planting material such as establishment of 420 nurseries, 3055 community water tanks, adoption of drip irrigation in 2121 ha were undertaken.
• IPM practices in 22140 ha and organic farming in 4498 ha. were taken up.
• Establishment of 304 markets (whole-sale markets-59, Rural Primary markets/Apni Mandies-225 and 20 Grading Labs) and 9 processing units are the other achievements.
Under this scheme, it is also envisaged for making women self-reliant by providing them equal opportunities, so that they are able to avail the benefits and opportunities of the existing agricultural systems through following interventions
• Organisation/identification of women groups, which would act as a network for channelising the horticultural support.
• Need based assessment of women farmers in terms of the horticulture support such as input support, technological support and extension support, etc.
• Prioritising the activities of the individual women's groups on the basis of the need based assessment.
• Provide adequate organisational and financial support to women groups to make their "self-help groups."
• Provide technical training in horticulture and allied areas to women farmers.
• Provide training in increased managerial, organisational, entrepreneurial and decision making skills.
• Enable them to develop into viable bodies so that they are able to orchestrise their activities, resources and group interaction.
• Under the mission 17353 women entrepreneurs were trained, on different aspects of horticulture.
* National Horticulture Board Programmes: The National Horticulture Board (NHB) is involved in the development of high quality horticulture farms in identified belts and make such areas vibrant with horticulture activity which in turn will act as hubs for developing commercial horticulture, Development of post harvest infrastructure, strengthening of market information system and horticulture data base, assisting Research and Development programmes to develop products suited for specific varieties with improved methods and horticulture technology, providing training and education to farmers and processing industry personal for improvement of agronomic practices and new technologies are also being pursued by the Board.
* Coconut Development Board Programmes: The Coconut Development Board (CDB) implements programmes for the Integrated Development of Coconut Industry and Technology Mission on Coconut during the Tenth Plan period. To achieve the objectives of integrated development of the crop, product diversification and by-product utilisation, the major thrust areas identified are production and distribution of quality planting material, expansion of area under coconut especially in potential and non-traditional areas, improving productivity of coconut in major coconut producing states, developing of technology in post harvest processing, marketing activities and the integrated control of major pests and diseases. Interventions by the CDB has enabled to diversify coconut products like desiccated coconut, coconut vinegar, virgin coconut oil and defatted coconut kernel products for enabling value addition and higher remuneration to the farmers.
* Bee-Keeping: In order to maximise agricultural production, honeybee can be used as an important input. About 85 per cent crop plants are cross-pollinated, as they need to receive pollen from other plants of the same species with the help of external agents. One of the most important external agent is the honeybee. A few colonies of honeybees are placed in the field when the crop is in flowering stage. When pressed in to service they would make several thousand forages for pollination. The abundance of pollinators helps in early setting of seeds resulting in early and more uniform crop yield. Honeybees also produce honey, bee wax and royal jelly thus giving additional benefits to the farmers. About 50 million ha. of land in the country are under bee dependent crops like fruit, vegetables, oilseeds, legumes and pulses. Many of these crops require three to nine bee colonies per ha.
The National Bee Board which is looking after the developmental activities of bee keeping has been recently reconstituted with Secretary (A&C) as Chairman and Horticulture Commissioner as Member Secretary.
• New Schemes:
* Micro Irrigation: To enable judicious use of the water and available resources, a new scheme on Micro Irrigation was launched during the Tenth Plan with a target to bring 6.2 lakh ha. under micro irrigation. A good response by the farmers in adopting efficient methods of irrigation like micro irrigation, has helped in conserving water with added benefits of increased yield and improved quality, particularly of horticultural crops. Since there is a need to promote this technology in all parts of the country, a Centrally Sponsored Scheme on Micro Irrigation has been launched by the Department of Agriculture and Cooperation with the approval of Cabinet on 29 December 2005.
* National Bamboo Vision: A report on "National Mission on Bamboo Technology and Trade Development (NMBTTD)" have been prepared for launching of the National Bamboo Mission programme during Tenth Plan. This mission would bring about one lakh hectares under bamboo which is expected to generate income and employment opportunity through bamboo and its ancillary industry. The scheme envisages harnessing the bamboo wealth in the country by integrating the production, post-felling management, value addition and marketing aspects. The scheme is proposed to be implemented through State Bamboo Development Agencies, to be constituted by the States. The scheme is in the final stage of approval.
Land utilisation statistics are available for 92.9 per cent of total geographical area of 3,287.3 lakh hectares.
Annual growth of crop area, production and yield in respect of cereals, oilseeds and other crops is given below (per cent per annum):
2003-04 2004-05
Crop Area Production Yield Area Production Yield
Rice 3.4 23.3 19.2 -1.6 -6.1 -4.6
Wheat 5.6 9.7 4.0 -0.8 -4.9 -4.1
Coarse Cereals 14.1 44.9 27.0 -5.8 -11.6 -6.2
Total Cereals 7.1 21.0 13.0 -2.7 -6.5 -3.9
Total Pulses 14.5 33.1 16.3 -3.0 -10.7 -8.0
Foodgrains 8.4 22.6 13.0 -2.7 -7.1 -4.5
Nine Oilseeds 10.1 69.8 54.2 16.3 -2.5 -16.2
Cotton (lint) -0.9 59.2 60.7 15.6 19.7 3.5
Sugarcane -12.9 -18.6 -6.6 -7.0 1.4 9.0
Non Foodgrains 8.1 19.2 10.2 9.8 2.5 -6.6
All Principal Crops 8.3 21.0 11.7 0.7 -2.7 -3.5
According to Land Use Statistics available from States, the area under forest had increased from 404.8 lakh hectares in 1950-51 to 695.5 lakh hectares in 2003-04. Net sown area increased from 1,187.5 lakh hectares to 1,409.6 lakh hectares during the same period. Broad cropping pattern indicates that though foodgrains have a preponderance in gross cropped area as compared to non-foodgrains, their relative share came down from 76.7 per cent during 1950-51 to 65.6 per cent during 2003-04.
Technology Mission on Oilseeds, Pulses and Maize
The Technology Mission on Oilseeds was launched by the Central Government in 1986 to increase the production of oilseeds to reduce import and achieve self-sufficiency in edible oils. Subsequently pulses, oil palm and maize were also brought within the purview of the Mission in 1990-91, 1992 and 1995-96 respectively. In addition the National Oilseeds and Vegetable Oils Development (NOVOD) Board is also supplementing the efforts of TMOP by opening of newer areas for non-traditional oilseeds. It is promoting tree-borne oilseeds. The schemes implemented under TMOP are:
i. Oilseeds Production Programme (OPP)
ii. National Pulses Development Project (NPDP)
iii. Accelerated Maize Development Programme (AMDP)
iv. Post Harvest Technology (PHT)
v. Oil Palm Development Programme (OPDP) and
vi. National Oilseeds and Vegetable Oils Development Board (NOVOD).
During the Tenth Plan these schemes have been restructured as:
i. Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) by converging the ongoing schemes of OPP, NPDP, AMDP and OPDP
ii. Research and Development in Post Harvest and Processing Technology (PHT) in Oilseeds, Pulses, Oil Palm and Maize including TMOP Headquarter and
iii. Integrated Development of Tree Borne Oilseeds to be implemented by NOVOD Board.
Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize:Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize:Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize:Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize: In order to provide flexibility to the States in implementation based on regionally differentiated approach, to promote crop diversification and to provide focused approach to the programmes, the four on-going schemes of OPP, OPDP, NPDP, and AMDP have been merged into one Centrally Sponsored Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM) during the 10th Five year Plan which is being implemented with effect from 1 April 2004. The scheme is being implemented in 14 major oilseeds and pulses growing States for oilseeds and pulses and 15 major maize growing states for Maize and in 10 states for oil palm.
The ISOPOM has the following special features:
i. Flexibility to the States to utilise the funds for the scheme/crop of their choice
ii. Annual action plan to be formulated by the State Governments for consideration and approval of the Government of India
iii. Flexibility to the State for introducing innovative measures or any special component to the extent of 10 per cent of financial allocation
iv. Involvement of private sector by the State Governments for the implementation of the programme with a financial cap of 15 per cent
v. Flexibility for inter-component diversion of funds upto 20 per cent for non-seed components only and
vi. Diversion of funds from seed components to non-seed components with prior approval of the Department of Agriculture and Cooperation.
New components of ISOPOM included during 10th Plan are:
i. Inclusion of HDPE pipes
ii. Publicity
iii. Involvement of Private Sector including NGOs, Farmers' Organisation, Cooperative bodies, Public Sector Agencies, etc
iv. Innovative measures and additional components
v. Training of Officers/Extension workers and
vi. Foreign Visits.
Implementation of oilseeds production programme has helped in increasing the production of oilseeds from 108.30 lakh tonnes in 1985-86 to 266.97 (IIIrd Advance Estimate) lakh tonnes during 2005-06.
The pulses production in the country increased from 128.60 lakh in 1989-90 to 139.20 (IIIrd Advance Estimate) tonnes in 2005-06. The area under oil palm increased from 8585 ha. at the end of 1992-93 to 71938 ha. upto 2005-06. Actual production of Fresh Fruit Bunches (FFBs) upto 2003-04 was 40,000 tonnes (Approx.) yielding around 25,000 tonnes (Approx.) of crude palm oil (CPO). The production of maize increased from 88.84 lakh tonnes in 1994-95 to 149.9 lakh tonnes in 2003-04.
Research and development in post Harvest and Processing in Oilseeds, oil Palm and Maize: The scheme of Post Harvest Technology (PHT) for Oilseeds, Pulses and Maize was brought under the purview of the TMOP with the objective of stepping up their production through efficient scientific processing for realising the ultimate objective of self-reliance in edible oils and other crops and bringing about a position of zero imports.
The Technology Mission had been emphasised on development of Post Harvest Technology (PHT) with the following objectives:
i. Optimising oil recovery from oilseeds by developing efficient modern oil expellers
ii. Tapping full potential of Rice Bran Oil (RBO)-in the country
iii. Developing value added products in respect of oilseeds, pulses and maize so that farmers are able to get a better/remunerative price
iv. Designing and developing indigenous technology for processing of non-conventional and tree borne oilseeds including oil palm
v. Developing of indigenous technology in maize processing suitable in the context of Indian situation and
vi. Dissemination of the R&D Technologies developed through demonstration programmes.
The indigenous technologies developed through R&D programmes were popularised by setting up demonstration units in industries with partial grant-in-aid assistance from the Department of Agriculture and Cooperation.
The partial grant-in-aid assistance was provided in the form of plant and machinery.
The scheme has been discontinued from 2005-06 by the Planning Commission.
Intergrazed Development of Tree Borne Oliseed by NOVDO Board: National Oilseed and Vegetable Oils Development (NOVOD) Board is exploring and augmenting the potential of Tree Borne Oilseeds (TBOs) in the country by undertaking activities like back-ended credit linked subsidy programmes consisting of establishment of seed procurement centres, installation of multi-purpose pre-processing and processing facilities, installation of oil expellers, nursery raising and commercial plantation and promotional programmes like development of elite planting material, elite nursery raising and plantation, awareness programmes, establishment of TBO garden, etc.
The Board has initiated plantation programmes of Jatropha curcas, and karanja Pongamia pinnata for bio-diesel production in the country in more than 10,000 ha. areas in the 25 States/Union Territories of the country.
Besides 128 TBO gardens have also been established to demonstrate the silvicultural practices coupled with IPM for early adoption of TBO plantation in 12 States.
Further, transfer of technology programmes consisting of 136 farmer's training, 48 trainer's training and 22 workshops have also been organised for motivating farmers to adopt TBO plantation and create awareness among primary seed collectors.
The elite planting material and planting techniques as well as location specific package of practices are being evolved through a national network of 42 R&D institutions in the country. Under the awareness programme, 2300 farmers have been trained and motivated for raising TBOs by conducting 46 farmer's training in the various States. Similarly, 600 field level functionary and volunteers have been trained through 12 trainer's training programme.
Eight oil expellers have been installed in the State of A.P., Bihar, Karnataka and Tamil Nadu. Six more oil expellers are being installed for extraction of oil from TBOs.
Crop Production Programme
The Crop Development schemes, viz.,
i. Integrated Cereal Development Programme in Wheat based cropping systems areas (ICDP-Wheat)
ii. Integrated Cereals Development Programme in Rice based cropping systems areas (ICDP-Rice)
iii. Integrated Cereal Development Programme on Coarse Cereals Based Cropping Systems Areas (ICDP-Coarse Cereals),
iv. Sustainable Development of Sugarcane Based Cropping System (SUBACS) and
v. Special Jute Development Programme (SJDP) implemented during Ninth plan have since been subsumed under Macro Management of Agriculture Scheme w.e.f. October 2000 to give more flexibility to the State Governments. Assistance is provided to the States for implementation of these programmes based on the Work Plans prepared by them according to regional needs.
The Centrally Sponsored Scheme of Intensive Cotton Development Programme (ICDP) now modified as a Mini-Mission_II of the Technology Mission on Cotton.
Mission on Cotton, is continuing during 2006-07. The scheme is being implemented in 13 States. The aim of the scheme is to increase the production and productivity of cotton. The scheme provides assistance for extension and development activities.
As a new initiative, a Centrally Sponsored Scheme-On Farm Water Management for encouraging crop production in Eastern India was launched in March 2002. The objective of the scheme was to increase the production and productivity of foodgrains through focus on exploitation of ground/surface water and its efficient utilisation.
The scheme help in enhancing the income of the farmers and diversifying agriculture production in eastern India.
The Scheme was in operation in all districts of Assam, Arunachal Pradesh, Bihar, Chhattisgarh, Jharkhand, Manipur, Mizoram, Orissa, nine districts of West Bengal and 35 districts
of Eastern Uttar Pradesh. The main components of the scheme were:
i. Assistance for installation of shallow tubewells with pump sets
ii. Assistance for electric/diesel pump sets
iii. Assistance for community lift irrigation points and
iv. Assistance for dug wells in the plateau region.
The scheme was being implemented as credit linked back-ended subsidy basis through NABARD in coordination with the State Governments. The funding pattern of the scheme was 20:30:50 basis, i.e., 20 per cent contributed by the beneficiaries, 30 per cent subsidy from Government of India and 50 per cent as bank loan. The scheme has since been discontinued from 2006-07.
Horticulture
India is bestowed with varied agro-climate, which is highly favourable for growing a large number of horticultural crops such as fruits, vegetables, root tuber, ornamental, aromatic plants, medicinal, spices and plantation crops like coconut, arecanut, cashew and cocoa.
Presently, horticultural crops occupy around 10 per cent of gross cropped area of the country producing 160.75 million tonnes. India is the second largest producer of fruits and vegetables.
Total production of fruits has been estimated at 49.36 million tonnes from 4.81 million ha.
Vegetables occupy an area of 6.3 million ha. with a production of 93.00 million tonnes. Our share in world fruit and vegetable production is 10 per cent and 13.28 per cent respectively.
• Fruits: India has a large range of varieties of fruit in its basket and accounts for 10 per cent of world's total fruit production. Mango, banana, citrus, pineapple, papaya, guava, sapota, jackfruit, litchi and grape, among the tropical and sub-tropical fruits; apple, pear, peach, plum, apricot, almond and walnut among the temperate fruits and aonla, ber, pomegranate, annona, fig, phalsa among the arid zone fruits are important. India leads the world in the production of mango, banana, sapota and acid lime and in productivity of grapes per unit land area.
India is the largest producer of mango, banana, sapota and acid lime. About 39 per cent of world's mango and 23 per cent of world's banana is produced in the country. In grapes, India has recorded the highest productivity per unit area in the world. The overall production of horticultural crops registered an increase of 8.0 per cent during 2004-05 as compared to 2003-04. The percentage increase in fruit production has been to the tune of 1.5 per cent during the period.
• Vegetables: More than 40 kinds of vegetables belonging to different groups, namely, solanaceous, cucurbitaceous, leguminous, cruciferous (cole crops), root crops and leafy vegetables are grown in India in tropical, sub-tropical and temperate regions. Important vegetable crops grown in the country are tomato, onion, brinjal, cabbage, cauliflower, okra and peas.
India is next only to China in area and production of vegetables and occupies prime position in the production of cauliflower, second in onion and third in cabbage in the world. The area and production of major vegetables during 2004-05 is estimated at 6.30 million ha with a production of 93.0 million tonnes and average productivity of 14.8 tonnes per ha. The production has increased by 5.7 per cent.
• Flowers: Though flower cultivation has been practised in India since times immemorial, floriculture has blossomed into a viable business only in recent years. The increased growing of contemporary cut flowers like rose, gladiolus, tuberose, carnation, etc., has led to their use for bouquets and arrangements for gifts, as well as decoration of both home and work place. A growing market, as a result of improvement in the general level of well being in the country and increased affluence, particularly among the middle class, has led to transformation of the activity of flower growing into a burgeoning industry. Availability of diverse agro-climatic conditions in this large country facilitates production of all major flowers throughout the year in some part or the other, and improved transportation facilities, have increased the availability of flowers all over the country.
India has made noticeable advancement in the production of flowers. Floriculture is estimated to cover an area of 1.14 lakh ha. with a production of 6,70,000 MT of loose flowers and 13009.3 million cut flowers.
• Spices: Spices constitute an important group of horticultural crops and are defined as vegetable products or mixture thereof, free from extraneous matter, used for flavouring, seasoning and imparting aroma in foods. The term applies equally to the product in the whole form or in the ground form. India is known as the home of spices and produces a wide variety of spices like black pepper, cardamom (small and large) ginger, garlic, turmeric, chilli and a large variety of tree and seed spices.
India is the largest producer, consumer and exporter of spices and spice products. The total production of spices was 4.3 million metric tonnes and the area covered was 2.56 million hectares.
• Plantation Crops: Plantation crops constitute a large group of crops. The major plantation crops include coconut, arecanut, oil palm, cashew, tea, coffee and rubber, the minor plantation crops include cocoa. Their total coverage is comparatively less and they are mostly confined to small holdings. However, they play an important role in view of their export potential as well as domestic requirements and in employment generation and poverty alleviation programmes particularly in rural sector.
India is also the largest producer and consumer of cashew nuts. It is estimated that total production of cashew is around 0.57 million tonnes from an area of 0.24 million hectares. The cultivation of vanilla in India started in 1990s and was confined mostly to Karnataka and Kerala and to a lesser extent in Tamil Nadu, Northeast region, Lakshadweep and the Andaman and Nicobar Islands. India's production of vanilla was about 101 Metric Tonnes from about 27,811 hectare in 2004-05. Coconut is grown in an area of 1.93 million ha. with a production of 12,148 million nuts and productivity of 6285 nuts per ha. India is the third largest producer of coconut and leads 90 coconut-producing countries of the world. It occupies number one position in arecanut production. India has been considered as a treasure house of valuable medicinal and aromatic plant species. The Government of India have identified and documented over 9,500 plant species considering their importance in the pharmaceutical industry. Out of these, about 65 plants have large and consistent demand in world trade. As a result, horticulture is not only an integral part of food and nutritional security, but also an essential ingredient of economic security.
• Medicinal and Aromatic Plants: Medicinal and aromatic plants have been used in the country for a long time for their medicinal properties. About 2000 native plant species have curative properties and 1300 species are known for their aroma and flavour. The Indian systems of medicines, popularly known as Ayurveda, Unani and Siddha drugs are of great demand in the country. There is already a spurt in demand for plant-based drugs and lately many such native species of medicinal values are being brought under systematic cultivation.
India has been considered as a treasure house of valuable medicinal and aromatic plant species. The Ministry of Environment and Forests, Government of India have identified and documented over 9,500 plant species considering their importance in the pharmaceutical industry. Out of these, about 65 plants have large and consistent demand in world trade. India however produces only limited quantities of these materials. In terms of market share in production value, India holds only the 6th place with a mere 7 per cent share. On the contrary, we are still importing about 10 types of essential oils to the tune of 8000 tonnes per annum.
• Programmes For Horticulture Development:
* National Horticulture Mission: A Centrally Sponsored Scheme of National Horticulture Mission (NHM) has been launched in the country from May 2005 during the current financial year for the development of horticulture duly ensuring end to end approach having backward and forward linkages covering research, production, post-harvest management, processing and marketing. The focus areas of the Mission will be as under:
• Capacity building for production and supply of adequate quality planting material including setting up of scion banks of high yielding mother plants.
• Increased coverage of crops under improved/high yielding cultivars.
• Enhanced production and productivity of horticulture crops.
• Strengthening of infrastructure facilities such as soil and leaf analysis labs, survey and surveillance of pest and diseases, green house, poly houses, micro irrigation, plant health clinics, vermicompost, etc.
• Build adequate infrastructure for on-farm and post-harvest handling.
• Enhanced production of high value and low volume horticultural products for exports.
• Strengthening infrastructure facilities for marketing and export.
• Enhanced production of high value processed products.
• Build a strong base to enhance efficiency in adoption of technologies.
A technology driven cluster approach with focussed attention on competitive horticulture crops, is the underlying approach of the National Horticulture Mission.
Technology Mission for Intergrated Development of Horticulture in North Eastern, States, Sikkim, Jammu and Kashmir, Himachal Pradesh and Uttaranchal: The Centrally Sponsored Scheme on Technology Mission for Integrated Development of Horticulture in North Eastern region including Sikkim was continued during the year.
The implementation of the scheme has been extended to the States of J&K, Himachal Pradesh and Uttaranchal.
The scheme aims at establishing convergence and synergy among numerous ongoing governmental programmes through horizontal and vertical integration of these programmes which will ensure adequate, appropriate, timely and concurrent attention to all the links in the production, post harvest and consumption chain.
The Small Farmer's Agribusiness Consortium (SFAC) is involved in coordinating the scheme.
The Technology Mission through its four Mini Missions addresses all the aspects of Horticulture development with an end-to-end approach.
Mini Mission I involving research is coordinated and implemented by the Indian Council of Agricultural Research (ICAR). Mini Mission-II covering production and productivity improvement activities is coordinated by the Department of Agriculture and Cooperation and implemented by the Agriculture/Horticulture Departments of the States.
Mini Mission-III involving post-harvest management, marketing and export is coordinated by National Horticulture Board and Mini Mission-IV involving processing is coordinated and implemented by the Ministry of Food Processing Industries.
State level SFACs have also been constituted in most of the implementing States for monitoring and implementing the programme at the grass-root level. Under the Technology Mission, funds to the states are made available on the basis of yearly action plans/proposals, which are approved by the State Level Steering Committee under the chairmanship of Chief Secretary of the concerned state. Some of the major achievements made so far under the scheme are:
• 97503 hectares of additional area have been brought under different horticultural crops.
• The area covered under fruits, vegetables and spice crops are 50667 ha, 16252 ha and 20262 ha respectively.
• An area of 5858 ha has been covered under high value crops like medicinal and aromatic plants and flowers.
• Infrastructure facilities for production of quality planting material such as establishment of 420 nurseries, 3055 community water tanks, adoption of drip irrigation in 2121 ha were undertaken.
• IPM practices in 22140 ha and organic farming in 4498 ha. were taken up.
• Establishment of 304 markets (whole-sale markets-59, Rural Primary markets/Apni Mandies-225 and 20 Grading Labs) and 9 processing units are the other achievements.
Under this scheme, it is also envisaged for making women self-reliant by providing them equal opportunities, so that they are able to avail the benefits and opportunities of the existing agricultural systems through following interventions
• Organisation/identification of women groups, which would act as a network for channelising the horticultural support.
• Need based assessment of women farmers in terms of the horticulture support such as input support, technological support and extension support, etc.
• Prioritising the activities of the individual women's groups on the basis of the need based assessment.
• Provide adequate organisational and financial support to women groups to make their "self-help groups."
• Provide technical training in horticulture and allied areas to women farmers.
• Provide training in increased managerial, organisational, entrepreneurial and decision making skills.
• Enable them to develop into viable bodies so that they are able to orchestrise their activities, resources and group interaction.
• Under the mission 17353 women entrepreneurs were trained, on different aspects of horticulture.
* National Horticulture Board Programmes: The National Horticulture Board (NHB) is involved in the development of high quality horticulture farms in identified belts and make such areas vibrant with horticulture activity which in turn will act as hubs for developing commercial horticulture, Development of post harvest infrastructure, strengthening of market information system and horticulture data base, assisting Research and Development programmes to develop products suited for specific varieties with improved methods and horticulture technology, providing training and education to farmers and processing industry personal for improvement of agronomic practices and new technologies are also being pursued by the Board.
* Coconut Development Board Programmes: The Coconut Development Board (CDB) implements programmes for the Integrated Development of Coconut Industry and Technology Mission on Coconut during the Tenth Plan period. To achieve the objectives of integrated development of the crop, product diversification and by-product utilisation, the major thrust areas identified are production and distribution of quality planting material, expansion of area under coconut especially in potential and non-traditional areas, improving productivity of coconut in major coconut producing states, developing of technology in post harvest processing, marketing activities and the integrated control of major pests and diseases. Interventions by the CDB has enabled to diversify coconut products like desiccated coconut, coconut vinegar, virgin coconut oil and defatted coconut kernel products for enabling value addition and higher remuneration to the farmers.
* Bee-Keeping: In order to maximise agricultural production, honeybee can be used as an important input. About 85 per cent crop plants are cross-pollinated, as they need to receive pollen from other plants of the same species with the help of external agents. One of the most important external agent is the honeybee. A few colonies of honeybees are placed in the field when the crop is in flowering stage. When pressed in to service they would make several thousand forages for pollination. The abundance of pollinators helps in early setting of seeds resulting in early and more uniform crop yield. Honeybees also produce honey, bee wax and royal jelly thus giving additional benefits to the farmers. About 50 million ha. of land in the country are under bee dependent crops like fruit, vegetables, oilseeds, legumes and pulses. Many of these crops require three to nine bee colonies per ha.
The National Bee Board which is looking after the developmental activities of bee keeping has been recently reconstituted with Secretary (A&C) as Chairman and Horticulture Commissioner as Member Secretary.
• New Schemes:
* Micro Irrigation: To enable judicious use of the water and available resources, a new scheme on Micro Irrigation was launched during the Tenth Plan with a target to bring 6.2 lakh ha. under micro irrigation. A good response by the farmers in adopting efficient methods of irrigation like micro irrigation, has helped in conserving water with added benefits of increased yield and improved quality, particularly of horticultural crops. Since there is a need to promote this technology in all parts of the country, a Centrally Sponsored Scheme on Micro Irrigation has been launched by the Department of Agriculture and Cooperation with the approval of Cabinet on 29 December 2005.
* National Bamboo Vision: A report on "National Mission on Bamboo Technology and Trade Development (NMBTTD)" have been prepared for launching of the National Bamboo Mission programme during Tenth Plan. This mission would bring about one lakh hectares under bamboo which is expected to generate income and employment opportunity through bamboo and its ancillary industry. The scheme envisages harnessing the bamboo wealth in the country by integrating the production, post-felling management, value addition and marketing aspects. The scheme is proposed to be implemented through State Bamboo Development Agencies, to be constituted by the States. The scheme is in the final stage of approval.
Agricultural Macro Management
Agriculture being a State subject, the primary responsibility for increasing agriculture production, enhancing productivity and exploring the vast untapped potential of the sector rests with State Governments. However, in order to supplement the efforts of State Governments, a number of Centrally Sponsored and Central Sector Schemes are being implemented as a catalyst for enhancement of agricultural production and productivity in the country, and consequential increase in prosperity of the farming community. The Macro Management of Agriculture (MMA) Scheme is a Centrally Sponsored Scheme formulated with the objective to ensure that the Central Assistance is spent on focused and specific interventions for development of agriculture in areas of priority of different States. It became operational in 2000-01 in all States and UTs. The Scheme provides sufficient flexibility to States to develop and pursue the programmes on the basis of their regional priorities. Thus States have been given a free hand to finalise their sector-wise allocation as per requirements of their developmental priorities. It is a major step towards achieving decentralisation in pursuance of restoring primacy of States in agricultural development planning which aims at development in agriculture through Work Plans prepared by State Governments themselves.
The scheme initially consisted of 27 Centrally Sponsored Schemes relating to Cooperative, Crop Production Programmes (for rice, wheat, coarse cereals, jute, sugarcane) Watershed Development Programme (NWDPRA, RVP/FPR), Horticulture, Fertiliser, Mechanisation and Seeds Production Programme. However, with the launching of National Horticulture Mission (NHM), 10 schemes pertaining to horticulture development were taken out of the purview of this Scheme from the year 2005-06.
The approved pattern of Assistance under the Scheme is in the ratio of 90:10 between the Centre and the State respectively except in the case of North Eastern States in case of which 100 per cent Central Assistance is extended. The Central Assistance to the States is released in two installments in the ratio of 80 per cent Grant and 20 per cent Loan.
The position regarding Budget Estimates, Revised Estimates and expenditure incurred under the scheme since 2000-01 is as indicated below (Rs in Crore):
Year Budget Estimate Revised Estimate Expenditure
2000-01 490.00 381.88 381.88
2001-02 850.00 680.49 678.62
2002-03 736.86 597.00 597.59
2003-04 700.00 648.60 648.49
2004-05 712.92 1189.20 1188.94
2005-06 912.62 819.15 841.86
An amount of Rs 910.00 crore has been earmarked in BE 2006-07 for implementation of this Scheme.
Natural Resource Management
Soil and water conservation measures are one of the essential inputs for increasing agricultural output in the country. These programmes were first launched during the First Plan. From the very beginning, emphasis has been on development of technology for problem identification, enactment of appropriate legislation and constitution of policy coordination bodies.
While conceptual framework of soil and water conservation activities has been changed, concept of programmes has undergone considerable revision during successive Five-Year Plans.
The Centrally-Sponsored Scheme of Soil Conservation in the catchments of River Valley Project (RVP) was started in the Third Five-Year Plan. Subsequently, another scheme of Flood Prone Rivers (FPR) was started in the Sixth Five-Year Plan keeping in view the magnitude of floods in 1978. Both the schemes were clubbed together during the Ninth Five-Year Plan on recommendation of Expenditure Finance Committee and were subsumed under Macro Management Mode since November 2000. Under the programme for the Catchment Management of River Valley Projects and Flood Prone Rivers, 53 Catchments are covered, spread over in 27 States.
The total Catchment area is 141 million ha. with Priority Area needing urgent treatment in 28 million ha. Out of this 6.08 million have been treated till 2004-05 with an expenditure of Rs 1894 crore. During 2005-06 an area of 0.17 million ha. have been treated with an expenditure of Rs 145 crore.
A Centrally-Sponsored Scheme of Reclamation of Alkali Soil was taken up in Punjab, Haryana and Uttar Pradesh during the Seventh Five Year Plan. During the Ninth Plan, extension of the Scheme to all other States of India was approved where alkali soil problems exist as per scientific parameters. The Scheme aims at improving physical conditions and productivity status of alkali soils for restoring optimum crop production. The major components of the scheme include, assured irrigation water on farm development works like land leveling, bunding and ploughing, agriculture, community drainage system, application of soil amendment organic manures, etc. An area of 0.66 million ha out of 3.5 million ha., of alkali land has been reclaimed till the end of 2004-05 in the country. The Scheme at present stands subsumed within the Macro Management Scheme. During 2005-06 an area of 0.03 million ha have been reclaimed with an expenditure of Rs 9.29 crore.
The Scheme of Watershed Development Project in Shifting Cultivation Areas was launched in seven North-Eastern States during the Eighth Plan from 1994-95 with 100 per cent Central assistance to the State Plan. The Scheme aims at overall development of jhum areas on watershed basis. During the Eighth Plan an amount of Rs 31.51 crore was spent by the States of north-east region and 0.67 lakh ha. area was treated through treatment packages. During the Ninth Plan, 1.57 lakh ha. have been treated with an expenditure of Rs 82 crore. The new guidelines of the scheme on the basis of new watershed to common approach has been effective from November 2000 in the revised cost norms of Rs 10,000 per ha. on net treatable area basis with additional activities and improved institutional mechanism. During the Tenth Plan, an area of 0.89 lakh ha. has been treated with an expenditure of Rs 88.32 crore up to end of 2005-06.
Rainfed Farming
Rainfed Farming is complex, diverse and risk prone and is characterised by low levels of productivity and low input uses. The Government of India has accorded high priority to the holistic and sustainable development of rainfed areas through integrated watershed development approach. The key attributes of the watershed approach are conservation of rain water and optimisation of soil and water resources in a sustainable and cost-effective mode. Improved moisture management increases the productivity of improved seeds and fertiliser. So conservation and productivity enhancing measures become complementary.
A National Watershed Development Project for Rainfed Area (NWDPRA) was launched in 1990-91 in 25 states and two UTs. The project was continued during Tenth Five Year Plan in 28 states inclusive of three newly created States and two UTs with the purpose of increasing agriculture productivity and production in rainfed areas. The guidelines for NWDPRA have been radically restructured by retaining the technical strength and incorporating community participation. The watershed development programme is now planned, implemented, monitored and maintained by watershed communities.
• Graph: During Agriculture Ninth plan, an area of 27.66 lakh ha has been treated. Now the scheme of NWDPRA has been subsumed within the Macro Management of Agriculture scheme. The scheme is being continued for implementation during Tenth plan under the revised guidelines, with people's participation, covering more than 6000 micro-watersheds. It is estimated to develop an area of about 20 lakh ha during Tenth plan. In the first four years of Tenth Plan, an area of 1.59 million hectares has been developed at an expenditure of Rs. 793.82 crore.
A Watershed Development Fund (WDF) has been established at NABARD with the objective of integrated watershed development in 100 priority districts of 18 States through participatory approach. The total corpus of WDF is Rs 200 crore. Under WDF, two-thirds of amount is given for loan based project and one-third of amount is given for grant based project in the State. A number of externally aided projects are also under implementation on watershed approach, which covers an area of about 1.5 lakh hectares annually.
Integrated Nutrient Management (INM)
The main objective of Integrated Nutrient Management (INM) Division is to ensure adequate availability of quality fertilisers to farmers through periodical demand assessment and timely supply, promoting integrated nutrient management, which is soil test based, judicious and balanced use of chemical fertilisers in conjunction with organic manures and bio-fertilisers, promotion of organic farming and ensuring quality control of fertilisers through implementation of Fertiliser (Control) Order, 1985.
India is the third largest producer and consumer of fertilisers in the world after China and the USA. Against 18.4 million tonnes of fertiliser nutrients (NPK) consumed during 2004-05, the nutrient consumption is estimated at 20.2 million tonnes during 2005-06.
The consumption of major fertilisers namely, Urea, DAP, MOP, SSP and Complexes are estimated to be 22.2, 6.8, 2.6, 2.8 and 6.7 million tonnes respectively during 2005-06. India is, by and large, self sufficient in respect of Urea and about 90 per cent in case of DAP.
The all-India average fertiliser consumption is 96.4 kg./ha of NPK nutrients through there is wide variation from state to state varying from 197 kg./ha in Punjab, 164 kg./ha in Haryana to less than 10 kg./ha in States like Arunachal Pradesh, Nagaland, Sikkim, etc. Considering the skewed pattern of fertiliser use, Government of India is promoting balanced and integrated use of fertiliser nutrients through various initiatives. As a result, NPK consumption ratio has now improved to 5.7: 2.2: 1 during 2004-05 from 7: 2.7: 1 during 2000-01.
Price of fertilisers
Presently urea is the only fertiliser which is under Statutory Price Control. To ensure adequate availability of fertilisers to farmers at reasonable rates, subsidy is provided by Government of India. Urea, the most consumed fertiliser, is subsidised under the New Urea Pricing Scheme, whereas P&K fertilisers, which are decontrolled, are covered under the Concession Scheme. The existing scheme for special freight subsidy has been continued for supplies to the North Eastern States and Jammu and Kashmir. There is no change in the prices of major fertilisers level since 12 March 2003, which are as under:
Fertilizer Product MRP (Rs. Per MT)
Urea 4830
DAP (Indigenous) 9350
Complexes 7100-9080
MOP 4455
SSP Price of SSP is fixed by
State Governments.
Buffer Stocking of P&K Fertilisers
To ensure adequate availability of decontrolled fertilisers in remote and inaccessible areas, there is a scheme under which a buffer stock of limited quantities of DAP and MOP is being maintained at strategic locations to meet emergent requirements.
Balanced Use of Fertilisers
The Government is implementing a Centrally Sponsored Scheme 'Balanced and Integrated Use of Fertilisers' to popularise soil test based judicious application of chemical fertilisers in combination with organic manures and bio-fertilisers. Under the Scheme, financial assistance is provided for setting up/strengthening of new soil testing laboratories for advising farmers on major and micro nutrients application, training and demonstration on balanced use of fertilisers and also for setting up of production units of useful organic manure from city waste/garbage. This scheme has since been subsumed within 'Macro Management Scheme' with effect from October 2000. State Governments are required to undertake all these activities through their Annual Work Plans.
Fertilser Quality Control
The Government ensures the quality of fertilisers through Fertiliser (Control) Order (FCO) issued under Essential Commodities Act (ECA) to regulate the price, trade, quality and distribution of fertilisers in the country. The State Governments are the executing agencies to implement the various provisions of FCO.
The Order strictly prohibits the manufacture, import and sale of any fertiliser, which does not meet prescribed standards. The Central Fertiliser Quality Control and Training Institute at Faridabad and its 3 Regional centres located at Navi Mumbai, Chennai and Kalyani have been set up for inspection and analysis of imported and indigenous fertilisers, giving technical advice and providing training on quality control to state enforcement agencies and analysts. The Institute has also developed a Quick Testing Kit for on-the-spot detection of adulteration in fertilisers.
The FCO has been recently amended to make it more user friendly and ensuring effective enforcement. The important amendments include provision of repackaging of cut or torn fertiliser bags and reprocessing of damaged fertiliser due to natural calamities and provisions for commercial trials of provisional fertilisers. Accordingly, M/s National Fertiliser Limited (NFL), M/s Tata Chemicals, M/s Chambal Fertilisers Ltd., M/s Indo-Gulf Fertilisers and M/s Shri Ram Fertilisers have been permitted to manufacture neem-coated urea under Clause 20 A for commercial trials. M/s Coromandel Fertilisers Ltd. have been permitted to manufacture Bentonite Sulphur for commercial trials and M/s IFFCO has been permitted to manufacture fortified complex fertilisers. Printing of Maximum Retail Price (MRP) on all fertilisers including urea is now mandatory along with the printing of month and year of manufacture/import of fertiliser.
Presently there are 67 laboratories in the country (including 4 Central Government Laboratories) with a total annual analysing capacity of 1.25 lakh samples. The analytical capacity and the number of samples analysed and found non standard during the last 5 years are as under:
Year No. of Annual No. of Per centage of
Labs. Analytical samples non standard
capacity analysed samples
2000-01 66 120315 103436 5.3
2001-02 66 120415 104188 5.7
2002-03 67 125480 109504 5.4
2003-04 67 124778 104647 5.5
2004-05 67 124730 108859 6.0
The per centage of non standard samples on all India basis is hovering around 5-6 per cent samples during the last 5 years. However, there is a large variation from state to state as 18 per cent in M.P., 10-13 per cent in Maharashtra, HP and UP, 4-8 per cent in Bihar, Orissa, W.B., Rajasthan, Haryana, Chhattisgarh, A.P., Kerala, Karnataka and Tamil Nadu and around 1-3 per cent in Punjab and Gujarat.
• Promotion of Bio-Fertiliser: With a view to promote the use of bio-fertilisers as an environment-friendly and cheaper source of plant nutrients, Government of India had earlier taken up a 'National Project on Development and Use of Bio fertilisers' during the Sixth Plan and was continued till Ninth Plan. The Scheme provided for setting up National Bio-fertiliser Development Centre at Ghaziabad and its Six Regional Bio-fertiliser Development Centres (RBDCs) at Jabalpur, Nagpur, Bangalore, Bhubaneswar, Hissar and Imphal for promotion, extension, training and demonstration of bio-fertilisers. Under the Scheme, assistance for setting up of bio-fertiliser production units was also provided. Presently, there are around 125 bio-fertilisers production units in the country with an annual capacity of 18,000 tonnes of different types of bio-fertilisers and the annual production is about 10,000 tonnes. This scheme has been subsumed under a new Central Sector Scheme "National Project on Organic Farming" from October 2004. To undertake the new activities, the names of NBDC and RBDCs have been changed to National Centre of Organic Farming (NCOF) and Regional Centres of Organic Farming (RCOF).
• National Project On Organic Framing: The Government is implementing a new scheme 'National Project on Organic Farming' since October 2004 with an outlay of Rs 57.05 crore for production, promotion, market development of organic farming in the country during the remaining period of the Tenth Plan. The main components of the scheme include:
i. Putting in place a system of certification of organic produce.
ii. Capacity building through service providers.
iii. Financial support for commercial production units for production of organic inputs like:
a. fruits and vegetable waste compost units;
b. biofertilisers production; and
c. hatcheries for vermi culture.
iv. Promotion, extension and market development of Organic Farming.
Plant Protection
Plant Protection continues to play a significant role in achieving targets of crop production. The major thrust areas of plant protection are promotion of Integrated Pest Management, ensuring availability of safe and quality pesticides for sustaining crop production from the ravages of pests and diseases, streamlining the quarantine measures for accelerating the introduction of new high yielding crop varieties, besides eliminating the chances of entry of exotic pests and for human resource development including empowerment of women in plant protection skills. Following three Plan Schemes are being implemented by Plant Protection Division of the Department of Agriculture and Cooperation through Directorate of Plant Protection, Quarantine and Storage
• Strengthening And Modernisation of Pest Managment Approach in India
Components:
A. Promotion of Integrated Pest Management (IPM)
B. Locust Control and Research
C. Training in Plant Protection
D. Implementation of Insecticides Act
On the recommendation of Planning Commission the Schemes at A to D have been merged as a single scheme i.e. "Strengthening and Modernisation of Pest Management Approach in India" with a total outlay of Rs. 99.95 crore during Tenth Five year Plan (2002-2007).
E. Promotion of integrated Pest-Management: Keeping in view the ill effects of chemical pesticides such as development of pest resistance, pest resurgence, outbreak of secondary pests, pesticide residues in food, fodder, soil, air and water resulting in human health hazards and ecological imbalances, Government of India has adopted Integrated Pest Management (IPM) as the cardinal principle and main plank of plant protection strategy in the country. IPM is an eco-friendly approach aimed at minimum use of chemical pesticides by employing available alternative methods for pest control like cultural, mechanical and biological and use of bio-pesticides.
To enhance the production of bio-control agents/bio-pesticides, Government of India earmarked Rs 1500 lakh as grants-in-aid during the Eighth and Ninth Plans for establishment of 29 State Bio-control Laboratories of which an amount of Rs 1372 lakh has been released to States. During the Tenth Plan, an amount of Rs 470 lakh has been approved of which Rs 405 lakh has already been released so far for the said purpose. With the adoption of IPM approach, consumption of pesticides has come down from 72,133 MT (tech. grade) during 1991-92 to 40,672 MT (tech. grade) during 2004-05 and there is consistent increase in use of bio-pesticides which are environmentally safe. In some of the States, farmers have stopped using chemical pesticides and have adopted organic farming.
F. Locust Control and Research: The Locust Warning Organisation, Jodhpur with its 10 Locust circle offices and 1 Field Station monitors two lakh sq. km. Scheduled Desert Area in Rajasthan, Gujarat and Haryana for locust surveillance and control. During 2005-06, an area of 150 lakh hectares has been surveyed and 24 locust bulletins have been issued. Close liaison is being maintained with other locust prone countries and the FAO to keep watch over possible locust invasion. The 24th Session of FAO Commission for Controlling the Desert Locust in South West Asia was held in New Delhi from 10-14 January 2005. During the year 2005-06, 7 Indo-Pak Border Meetings were conducted with the officers of Pakistan.
G. Training in Plant Protection: Until 1966, there was no national training facility in India to cater to the needs of the States. To bridge this gap, the National Plant Protection Training Institute was established in 1966 at Hyderabad (Andhra Pradesh). The Institute has been recognised as a Regional Training Centre for Plant Protection by Food and Agricultural Organisation of the United Nations and also as an Advanced Centre for training in Plant Protection Technology by the World Bank. The Institute has conducted 912 courses and trained 16,747 officers/officials including 216 foreign trainees up to 2005-06.
H. Implementation of Insecticides Act: Pesticides are commonly used in crop protection measures for sustaining food production. These are also used for the control of vector borne diseases. As they are meant for killing insect pests and, therefore, toxic by their nature. Their misuse or abuse may result in hazards to human beings, animals and the environment. Therefore, pesticides are required to be used safely and judiciously. Keeping this in view, their import, manufacture, sale and use, etc., are being regulated under the Insecticides Act, 1968 and the Rules framed thereunder. The provisions under the Act ensure the availability of safe, effective and quality pesticides to the farmers.
The Central Government has constituted the Central Insecticides Board under Section 4 of the Insecticides Act, 1968 to advise the Central and State Governments on technical matters arising out of the administration of this Act. The Director General, Health Services is the Chairman with 29 members. The Central Government has constituted a Registration Committee to register pesticides after examining their formulae verifying their efficacy and safety to human beings, animals and environment.
The Government of India has also set up a Central Insecticides Laboratory with the major objectives of pre and post registration verification of the properties, performance and hazards of pesticides and the proposed use claimed by the manufacturers.
To supplement the resources of the States/UTs in the analysis of pesticides, two Regional Pesticides Testing Laboratories have also been set up at Chandigarh and Kanpur with an analysis capacity of 900 samples per annum each.
Plant Quarantine Facilities in India: Plant Quarantine regulatory measures are operative through the "Destructive insects & pests Act, 1914 (Act 2 of 1914)" in the country. The purpose and intent of this Act is to prevent the introduction of any insect, fungus or other pest, which is or may be destructive to crops.
The import of agricultural commodities is presently regulated through the Plant Quarantine (Regulation of Import into India) Order, 2003 issued under DIP Act, 1914 incorporating the provisions of New Policy on Seed Development, 1988. Further, the significance of Plant Quarantine has increased in view of Globalisation and liberalisation in International trade of plants and plant material in the wake of Sanitary and Phytosanitary (SPS) Agreement under WTO.
The phytosanitary certification of agricultural commodities being exported is also undertaken through the scheme as per International Plant Protection Convention (IPPC), 1951.
The primary objectives of the Scheme are
ix. to prevent the introduction and spread of exotic pests that are destructive to crops by regulating/restricting the import of plants/plant products and
x. to facilitate safe global trade in agriculture by assisting the producers and exporters by providing a technically competent and reliable phytosanitary certificate system to meet the requirements of trading partners.
The major activities under the scheme include;
• Inspection of imported agricultural commodities for preventing the introduction of exotic pests and diseases inimical to Indian Fauna and Flora
• Inspection of agricultural commodities meant for export as per the requirements of importing countries under International Plant Protection Convention (IPPC)
• Detection of exotic pests and diseases already introduced for containing/controlling them by adopting domestic quarantine regulations.
• Undertaking Post Entry Quarantine Inspection in respect of identified planting materials.
• Conducting the Pest Risk Analysis (PRA) to finalise phytosanitary requirements for import of plant/plant material.
There are 35 Plant quarantine Stations at different Airports, Seaports and Land frontiers implementing the Plant Quarantine regulations. The NPQS, New Delhi and RPQSs at Chennai, Kolkata, Amritsar and Mumbai have been strengthened with modern equipment for plant quarantine testing, etc., to facilitate speedy clearance of imports and exports under the FAO-UNDP Project.
The Sanitary and Phytosanitary Agreement of WTO envisages application of Phytosanitary measures based on scientific justifications therefore it is imperative to conduct all Plant Quarantine inspections as per the International Standards/guidelines.
Accordingly, the National Standards for Phytosanitary Measures for some of the important activities have already been developed and adopted including the Guidelines for Development of National Standards for Phytosanitary Measures and six draft National Standards are under the process of approval.
The Standards which are critical for our exports have been prioritised. Further, a National Integrated Fruit Fly Surveillance Programme has also been prepared with a view to establish pest-free areas against fruit flies. To streamline the Plant Quarantine activities, efforts are being made to computerise the Plant Quarantine Stations for speedy and transparent functioning.
Substantial efforts have also been made towards the international cooperation on the phytosanitary matters including participation in IPPC Standard Committee meetings for development of International Standards for Phytosanitary Measures, Training of fumigation service providers and regulators in methyl bromide fumigation under the Australian Fumigation Accreditation Scheme, finalisation of SPS Protocol for export of mango to China, harmonisation of phytosanitary measures with reference to Seed trade through the Workshops organised by Asia Pacific Seed Association (APSA), negotiations on free trade agreement with Thailand and Singapore, Memorandum of Understanding and work plan with Chile for cooperation on Phytosanitary matters and Indo-Nepal Joint trade and economic development negotiations.
• Monitoring of Pesticide Residues:The subject "Monitoring of Pesticide Residues" has been allocated to the Department of Agriculture and Cooperation by the Cabinet Secretariat. Monitoring of pesticide residues at the national level is essential to ensure food safety in the country. Further, it is essential to ensure that our export consignments are not rejected due to presence of pesticide residues. The Scheme has been approved with an outlay of Rs 24 crore during the Tenth Plan.
Agricultural Mechanisation
Strategies and programmes have been directed towards replacement of traditional and inefficient implements by improved ones, enabling the farmers to own tractors, power tillers, harvesters and other machines, availability of custom services, support services of human resource development, testing and evaluation and research and development.
A large industrial base for manufacturing of the agricultural machines has also been developed. Introduction of technologically advanced equipments through extension and demonstration besides institutional credit has also been taken up. Equipments for resource conservation have also been adopted by the farmers. Under various Government sponsored schemes like Macro Management of Agriculture, Technology Mission for Oilseeds, Pulses and Maize, Technology Mission on Horticulture and Technology Mission on Cotton, financial assistance is provided to the farmers for the purchase of identified agricultural implements and machines.
• Farm Machinery Training and Testing Institutes: Farm Machinery Training and Testing Institutes (FMT and TIs) have been established at Budni (Madhya Pradesh), Hissar (Haryana), Garladinne (Andhra Pradesh) and at Biswanath Chariali (Assam) having capacity to train 5,000 personnel annually on various aspects of agricultural mechanisation. These institutes also undertake testing and performance evaluation of agricultural machines including tractors in accordance with the national and international standards. Since inception about 93,503 personnel have been trained and about 2,162 machines tested by these Institutes till 31 March 2006. During 2005-06 these Institutes have trained 5734 personnel and tested 112 machines. The training programmes have been revised for giving more emphasis on crop/area/technology specific issues for optimised training duration for their implementation through Farm Machinery Training and Testing Institutes w.e.f. 1 April 2005.
• Outsourcing of Training: This is a new component approved for the Tenth Plan under the Central Sector Scheme "Promotion and Strengthening of Agricultural Mechanisation through Training, Testing and Demonstration" in order to train large number of farmers at nearby places. The training programme shall be arranged through the identified institutions by each State namely State Agricultural Universities (SAUs), Agricultural Engineering Colleges/Polytechnics, etc. This Department has released Rs 73 lakh during the year 2004-05 and Rs 38.03 lakh during the year 2005-06 to various State Governments and ICAR for conducting training programmes at the identified institutions. For the year 2006-07, a target to train 3000 farmers has been kept.
• State Agro Industries Corporation: Seventeen State Agro Industries Corporations, Joint Sector Companies, have been promoted by the Government of India and by the State Governments concerned. The objectives of these Corporations envisage manufacture and distribution of agricultural machines, distribution of agri-inputs, promotion and execution of agro based industries and providing technical services and guidance to the farmers and others. The Government of India's share in Six State Agro Industries Corporations viz. Tamil Nadu, Karnataka, Rajasthan, Gujarat, Uttar Pradesh and West Bengal have been disinvested in favour of the respective State Governments.
• Legislative Framework: The Dangerous Machines (Regulation) Act, 1983, came into force with effect from 14 December 1983. The Act provides for the regulation of trade and commerce and production, supply and use of products of any industry producing dangerous machines with a view to securing the welfare of persons operating any machine and for payment of compensation for death or bodily injury suffered while operating any such machine. Power threshers used for threshing of the agricultural crops have been brought under the ambit of this Act. The Government of India have notified the Dangerous Machines (Regulation) Rule, 1985 laying down the specifications for the feeding chutes and for installation of the power threshers. Apart from power threshers the inclusion of power operated chaff-cutter and sugarcane crusher under this Act is in process.
• Demonstration of Newly Developed Agricultural/horticultural Equipments: With an objective of introducing new technology in agricultural production system, demonstration of newly developed/improved agricultural and horticultural equipments has been approved from the year 1999-2000 which now forms a component of the restructured Central Sector Scheme "Promotion and Strengthening of Agricultural Mechanisation through Training, Testing and Demonstration". Under this component, 100 per cent Central grant-in-aid is provided to implementing agencies for procurement and demonstration of new/improved equipments. The Scheme is implemented through State/Central Government organisations. This component has helped in adoption of new agricultural/horticultural equipments by the farmers. During 2005-06, 8099 demonstrations of different new equipments were conducted benefiting 3,06,798 farmers. During 2006-07, 1500 such demonstrations will be conducted through the implementing agencies.
• Extension Activites: Agricultural Extension aims at improving technology dissemination of farm technologies to the farmers. The Extension System has undergone several changes over a period, in terms of content and delivery approaches. Agricultural Extension is a State subject, however, the Ministry of Agriculture supplements States' efforts in improving extension services.
The Department of Agriculture and Cooperation lays down major policy guidelines on extension matters and the Directorate of Extension implements specific programmes and activities in close collaboration with the State Departments of Agriculture, the State Agricultural Universities and other concerned agencies.
Current efforts in improving extension services include the following:
• Providing innovative and decentralised institutional arrangements in the form of an Agriculture-Technology Management Agency (ATMA) to make extension system farmer driven and farmer accountable
• Encouraging Public Private Partnership (PPP) in various modes/forms can provide synergistic approach in the extension efforts
• Augmentation of Mass Media Support to Agriculture Extension by providing for location-specific broadcasts through 96 FM stations of All India Radio, 180 Low Powered/High Powered Transmitters, 18 Regional Kendras of Doordarshan and also on DD National Channel for 30 minutes, 5/6 days a week;
• Operation of Kisan Call Centres through toll free (1551) lines throughout the country to provide expert advise to farmers from 6.00 am to 10.00 pm on all 7 days of the week. The replies to the queries of the farming community are being given in 21 languages
• Providing fee based advisory and other support services to the farmers by training agriculture graduates in agri-business development and establishing agri-clinics
• Mainstreaming gender concerns in agricultural policies and programmes.
Seeds
Seed is a critical and basic input for enhancing agricultural production and productivity in different agro-climatic regions. Indian seed programme largely adheres to the limited generation system for seed multiplication.
The system recognises three generations, namely, breeder, foundation and certified seeds and provides adequate safeguards for quality assurance in the seed multiplication chain to maintain the purity of variety as it flows from the breeders to the farmers. The level of certified/quality seed distributed to the farmers since 200001 is given below:
Year certified/quality seed distribution (in lakh quintals)
Year Certified Quality Seed Distribution
2000-01 86.27
2001-02 91.80
2002-03 98.03
2003-04 108.39
2004-05 113.01
2005-06 118.52 (Anticipated)
2006-07 148.63 (Targeted)
Indian seed programme includes the participation of Central and State governments, Indian Council of Agricultural Research (ICAR), State Agricultural Universities (SAU) system, public sector, co-operative sector and private sector institutions.
Seed sector in India consists of two national level corporations i.e. National Seeds Corporation (NSC) and State Farms Corporation of India (SFCI), 13 State Seed Corporations (SSCs) and about 100 major seed companies.
For quality control and certification, there are 22 State Seed Certification Agencies (SSCAs) and 101 State Seed Testing Laboratories (SSTLs). The private sector has started to play a significant role in the production and distribution of seeds. However, the organised seed sector particularly for food crops cereals continues to be dominated by the public sector.
• Legislative Framework and Policy: The Seeds Act, 1966 provides for the legislative framework for regulation of quality of seeds sold in the country. The Central Seed Committee (CSC) and the Central Seed Certification Board (CSCB) are apex agencies set up under the Act to deal with all matters relating to administration of the Act and quality control of seeds. The proposed Seeds Bill, 2004 in replacement of the Seeds Act, 1966 was introduced in the Parliament in December 2004 and is currently under consideration of the Parliamentary Standing Committee on Agriculture.
In order to encourage export of seeds in the interest of farmers, the procedure for export of seeds has been simplified. Seeds of various crops have been placed under Open General Licence (OGL) except the seeds of wild varieties, germplasms, breeder seeds, and onion seeds which are on restricted list under the new Export and Import Policy 2002-07.
• Schemes of the Seed Division:
i. This Department have launched a Central Sector Scheme namely, "Development and strengthening of Infrastructure facilities for Production and Distribution of Quality seeds" with an outlay of Rs.159 crore for the Tenth Plan. The main components of the scheme are Quality Control Arrangements on Seeds, Transport subsidy on movement of seeds to North-East and other hilly areas, Establishment and Maintenance of Seed Bank, Seed Village Scheme, Assistance for creation of infrastructure facilities, Assistance for boosting seed production in private sector, Human Resources Development, Assistance for Seed Export, Propagation of application of biotechnology in agriculture, Promotion of use of hybrid seeds of rice and evaluation/review.
ii. Implementation of Plant Varieties Protection and Farmers Right legislation In order to fulfill the obligations under TRIPS Agreement of the World Trade Organisation (WTO), which India has ratified, the Department of Agriculture and Cooperation have enacted a legislation for Protection of Plant Varieties and Farmers' Rights. In order to provide necessary back-up support for enactment of the above Legislation, a Central Scheme is also under implementation. The required rules and regulations under the Plant Varieties and Farmers' Rights Act have been notified in 2003. The Protection and Plant Varieties and Farmers' Rights Authority envisaged under the Act has been set up w.e.f. 14 November 2005.
Agricultural Marketing
Organised marketing of agricultural commodities has been promoted in the country through a network of regulated markets. Most of the State governments and Union Territories have enacted legislations (APMC Act) to provide for regulation of agricultural produce markets. While by the end of 1950, there were 286 regulated markets in the country, today the number stands at 7,521 (31.3.2005).
Besides, the country has 27,294 rural periodical markets, about 15 per cent of which function under the ambit of regulation. The advent of regulated markets has helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit.
Agriculture sector needs well functioning markets to drive growth, employment and economic prosperity in rural areas of the country. In order to provide dynamism and efficiency into the marketing system, large investments are required for the development of post harvest and cold chain infrastructure nearer to the farmers' field. A major portion of this investment is expected from the private sector, for which an appropriate regulatory and policy environment is necessary.
Alongside, enabling policies need to be put in place to encourage procurement of agricultural commodities directly from farmers' field and to establish effective linkage between the farm production and the retail chain and food processing industries. Accordingly, amendment to the State APMC Act for deregulation of marketing system in the country is suggested to promote investment in marketing infrastructure, motivating corporate sector to undertake direct marketing and to facilitate a national integrated market.
The Ministry of Agriculture formulated a model law on agricultural marketing for guidance and adoption by State Governments. The model legislation provides for establishment of Private Markets/Yards, Direct Purchase Centres, Consumer/Farmers Markets for direct sale and promotion of Public Private Partnership in the management and development of agricultural markets in the country. Provision has also been made in the Act for constitution of State Agricultural Produce Marketing Standards Bureau for promotion of Grading, Standardisation and Quality Certification of agricultural produce. This would facilitate pledge financing, direct purchasing, forward/future trading and exports. Several States have initiated steps for amending the APMC Act.
• Infrastructure Requirement: Investment requirement for the development of marketing, storage and cold storage infrastructure in the country has been estimated to be huge and with a view to induce investment in the development of marketing infrastructure as envisaged above, the Ministry has implemented the following Plan Schemes:
i. A capital investment subsidy scheme titled "Construction of Rural Godowns" is being implemented w.e.f. 1 April 2001. The main objectives of the scheme include creation of scientific storage capacity with allied facilities in rural areas to meet various requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc., and prevention of distress sale by creating the facility of pledge loan and marketing credit. Under the original scheme, back ended subsidy @ 25 per cent of capital cost of the project was provided. In case of NE States, hilly areas and SC/ST entrepreneurs, subsidy was provided @ 33.33 per cent of the capital cost of the project. The Scheme has since been modified with effect from 20 October 2004, to provide subsidy @ 25 per cent to farmers, Agriculture graduates, cooperatives and Central Warehousing Corporation/State Warehousing Corporations. All other categories of individuals companies and corporations are now given subsidy @ 15 per cent of the project cost. The scheme has been made farmers' friendly by allowing subsidy for smaller godowns of 50 MT size in general and of 25 in hilly areas. Five lakh tonnes capacity to be created is reserved for small farmers. The scheme is being implemented through NABARD and NCDC. Till 31 May 2006, 11,583 storage projects having a capacity of 166.42 lakh tonnes have been sanctioned under the scheme.
ii. With a view to establish a nation-wide information network for speedy collection and dissemination of price and market related information to farmers, electronic connectivity is being provided to all important agricultural markets in the country under a Central scheme, "Market Research and Information Network". 2,408 market nodes and 92 State Marketing Boards and Directorate of Marketing and Inspection offices have been networked on a single portal, wherein daily prices of more than 300 commodities and about 2000 varieties are being reported. It is planned to connect 2,700 markets in all, under the scheme during the 10th Plan.
iii. The Ministry of Agriculture is implementing another Central Sector scheme for "Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardisation". Under the scheme, investment subsidy is provided @ 25 per cent on the capital cost of the marketing infrastructure development project subject to a maximum of Rs 50 lakh for each project in all States and @ 33.3 per cent of capital cost subject to a maximum of Rs 60 lakh for each project in case of North Eastern States, hilly areas and to Scheduled Castes/Scheduled Tribes entrepreneurs. In respect of infrastructure projects of State Governments/State Agencies, there is no upper ceiling on subsidy to be provided under the scheme. The scheme is reform linked, to be implemented in those States/Union Territories wherein the law dealing with agriculture markets (Agricultural Produce Marketing Regulation Act) allows setting up of competitive agricultural markets in private and cooperative sectors, direct marketing and contract farming. The States of Andhra Pradesh, Punjab, Kerala, Tamil Nadu, Manipur, Sikkim, Madhya Pradesh, Himachal Pradesh, Nagaland, Rajasthan, Chattisgarh and Union Terriroty of Andaman and Nicobar Islands, Daman and Diu and Dadra and Nagar Haveli have notified to receive assistance under the Scheme. The remaining States/UTs are in the process of amending their APMC Acts. 158 training and awareness programmes have been conducted in the notified States/UTs. A total number of 259 new project proposals have been provided advance subsidy of Rs 516.30 lakh by NABARD in the States of Madhya Pradesh, Tamilnadu, Punjab, Andhra Pradesh and Kerala.
iv. The Department has recently taken the initiative to promote modern terminal markets for fruits, vegetables and other perishables in important urban centres of the country. These markets would provide state of art infrastructure facilities for electronic auction, cold chain and logistics and operate through primary collection centres conveniently located in producing areas to allow easy access to farmers. The terminal markets are envisaged to operate on a 'Hub-and-Spoke' format wherein the Terminal Market (the hub) would be linked to a number of collection centres (the spokes), conveniently located in key production centers to allow easy access to farmers for the marketing of their produce. The concept on setting up of Terminal Markets for perishable commodities was discussed with the State Governments and interested private enterprises at a national conference of State Ministers held on 20 February 2006 at New Delhi. Based on the discussions, a Committee has been constituted under the Chairmanship of Director General, National Institute of Agricultural Marketing, Jaipur with members from participating State Governments to develop a framework for the bidding process for selecting the enterprise for the implementation of terminal market projects and to work out implementation modalities. Central assistance to these projects is planned by way of equity participation.
The Department of Agriculture and Cooperation has three organisations dealing with marketing under its administrative control, namely, the Directorate of Marketing and Inspection (DMI), Faridabad, the Ch. Charan Singh National Institute of Agricultural Marketing (NIAM), Jaipur and the Small Farmers Agri-Business Consortium (SFAC), New Delhi.
• Directorate of Marketing and Inspection: It is an attached office of the Department and is headed by Agricultural Marketing Adviser. The Directorate has its Head Office at Faridabad (Haryana), Branch Head Office at Nagpur (Maharashtra), 11 Regional Offices and the Central Agmark Laboratory at Nagpur. Besides, there are 26 Sub-Offices, 16 Regional Agmark Laboratories (RALs) spread all over the country.
The main functions of the Directorate are as follow:
1. Rendering advice on statutory regulation, development and management of agricultural produce markets to the States/UTs
2. Promotion of Standardisation and Grading of agricultural and allied produce under the Agricultural Produce (Grading and Marking) Act, 1937
3. Market Research, Surveys and Planning
4. Training of personnel in Agricultural Marketing
5. Marketing Extension
6. Agricultural Marketing Information Network
7. Construction of Rural Godowns and
8. Development of Agricultural Marketing Infrastructure.
• Grading and Standardisation: The Agricultural Produce (Grading and Marking) Act, 1937 empowers the Government to fix quality standards, known as "AGMARK" standards and to prescribe terms and conditions for using the seal of 'AGMARK'. So far, grade standards have been notified for 182 agricultural and allied commodities. The purity standards under the provision of the Prevention of Food Adulteration (PFA) Act, 1954 and Bureau of Indian Standards (BIS) Act, 1986 are invariably taken into consideration while framing the grade standards. International Standards framed by Codex/International Standards Organisation (ISO) are also considered so that Indian produce can compete in the international market.
During the year 2005-06, the final notification of Spices G & M Rules, 2005 is published, containing standards of eleven spices, namely, large Cardamom, Cardamom, Turmeric, Chillies, Ginger, Black Pepper, Coriander, Fennel, Fenugreek, Celery, Cumin, etc. The standards of Walnut duly harmonised with the international standards have been submitted to APEDA and were discussed in the Core Group's Meeting. The approval of Standing Committee on fresh Fruits and Vegetables is awaited for commodities like Lemons, Limes, Mandarins, Oranges, Grape Fruits, Walnuts in-shell and Walnut shelled.
• National Institute of Agricultural Marketing: The National Institute of Agricultural Marketing (NIAM) started functioning at Jaipur (Rajasthan) from 8 August 1988. NIAM has been imparting training to senior and middle level executives of agricultural and horticultural departments, Agro Industries, Corporations, State Marketing Boards, Agricultural Produce Market Committees and Apex level Cooperatives, Commodity Boards, export houses recognised by Agricultural and Processed Food Products Export Development Agency (APEDA), Commercial Banks and non-governmental organisations. Besides these clients, the NIAM also imparts training to farmers on marketing management. The main objectives of NIAM are:
0. To provide specialised training in agricultural marketing designed to develop leadership potential in the management of agricultural marketing enterprises and services
1. To undertake research in agricultural marketing for Government, Cooperative and other Institutes, both on public funding and by contract
2. To undertake appraisal of markets/marketing projects for approval and financial support by the Central Government, on consultancy basis
3. To formulate objective criteria for selective development of physical markets and to evolve a practical methodology for the application of such criteria in their planning
4. To offer advisory and consultant services on marketing policies, investment programmes and marketing development strategies and specific advice to marketing enterprises (State, Private and Cooperatives)
5. To survey, study and analyse the rural market management and to examine in depth the principal and practice of market regulation as a development sector in the agricultural economy.
The NIAM is managed by a Governing Body under the Chairmanship of Minister of Agriculture and an Executive Committee under the Chairmanship of Secretary, Department of Agriculture and Cooperation.
• Training Activities: The Institute organises Training Programmes for officials, farmers and other functionaries. In 2003-04 Management Development Programmes (MDP) were introduced. So far four MDPs have been successfully organised for leading companies like Bayer Crop Science, MICO BOSCH, etc. The MDPs were held at NIAM campus and 120 working executives of these MNCs working in various capacities have been benefited from this programme. All these MDPs were rated excellent by the participants and many other companies have shown keen interest in organising MDPs at NIAM, Jaipur.
• Research: The domestic Agricultural Marketing scenario has witnessed lot of changes in policies and regulations. The enactment of Model Act by some States have brought substantial improvements in trade and marketing. Following Research studies are being conducted by NIAM during the year 2005-06.
0. Contract Farming-prospects and implications
1. Commodity Trade Research
2. Market led extension-a participatory approach
3. Developing India GAP Standards
4. Information need assessment of stakeholders in Agricultural Marketing-A case of Rajasthan
• Project Formulation: In order to generate resources and ensure optimum utilisation of the expertise of the NIAM faculty, the Institute is taking up several Consultancy Projects in the year 2005-06. These include setting up Modern Terminal Market for fruits and vegetables at Nasik, Chandigarh, Nagpur, Patna, Bhopal, Rai (Haryana), Multi-utility integrated facility Centre-Pack house at Ludhiana for MARKFED, Punjab, State Master Plan for Market Development in Orissa, Price Forecasting for Agricultural Commodity in Karnataka, On-line Market information system for Karnataka, Designing, Planning and detailed Project report for CA Storage at Kolkata. Detailed Project Reports have been prepared for the Modern Terminal Markets at Nashik, Nagpur, Chandigarh, Bhopal and Rai (Haryana).
• Post Garduate Programme in Agri-Business Managment (PGPABM): The Institute has undertaken Post-Graduate Programme in Agri-Business Management (PGPABM) as a Sub-centre of MANAGE, Hyderabad from July 2001 and 50 students are presently undergoing Post-Graduate Programme in Agri-Business. The programme is designed to assist agricultural graduates to acquire the critical know-how to compete in the domestic and global business arena and to make them efficient agri-business managers.
• Small Farmers Agri-Business Consortium: The Small Farmers Agri-business Consortium (SFAC) was registered by Department of Agriculture and Cooperation as a Society under the Societies Registration Act, 1860 on 18 January 1994. Members at present include RBI, SBI, IDBI, EXIM Bank, Oriental Bank of Commerce, NABARD, Canara Bank, NAFED, United Phosphorous Ltd., etc.
The SAFC is managed by a Board of Managers consisting of 20 members and chaired by Hon'ble Union Minister of Agriculture as its Ex-Officio President and the Secretary (Department of Agriculture and Cooperation), Government of India as its Ex-Officio Vice President. Managing Director is the Chief Executive of SFAC. SFAC has established 18 State level SFACs by contributing a corpus fund. The mission of the Society is to support innovative ideas for generating income and employment in rural areas by promoting private investments in agribusiness projects.
The Central sector scheme for agri-business development implemented by SFAC was approved by the Government on 19 July 2005 for implementation during remaining period of the Tenth Plan with an outlay of Rs 48 crore. The scheme is being implemented by SFAC in close association with commercial banks for providing
• Venture Capital Assistance to agribusiness projects and assist farmer/producer groups in preparation of quality Detailed Project Reports (DPR).
The main objectives of the scheme are to facilitate setting up of agribusiness ventures in participation with banks, catalyse private investment in setting up of agribusiness projects and thereby providing assured market to producers for increasing rural income and employment, strengthen backward linkages of agri-business projects with producers, assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through project development facility, arrange training and visits, etc., of agripreneurs setting up identified agribusiness projects. SFAC provides financial assistance to agribusiness projects by way of equity participation.
The quantum of SFAC venture capital assistance depended on the project cost and will be the lowest of the following
• 10 per cent of the total project cost assessed by the bank
• 26 per cent of the project equity
• Rs 75 lakh
Higher venture capital assistance can be considered by SFAC to deserving projects on merit and/or to projects that are located in remote and backward areas, North-eastern and hilly States and projects recommended by State agencies.
The outlay for implementation of the scheme during 2005-2006 was Rs. 10 crore which has been utilised. During the year venture capital assistance has been sanctioned to 44 agribusiness projects and assistance has been provided for preparation of 11 Detailed Project Reports(DPRs).
The allocation for implementation of the scheme during 2006-07 is Rs. 38 crore.
Cooperation
• Cooperative Reforms: The Cooperative movement in India traces its origin to the agriculture and allied sector and was evolved as a mechanism for pooling meagre resources of the people with a view to providing them the advantages of economies of scale. After independence, the cooperatives were considered as part of the strategy for planned economic development. The cooperatives are today at the crossroads of existence particularly in view of the fast emerging scenario of economic liberalisation and globalisation. These institutions in general suffer from resource constraint, poor governance and management, inefficiency and unviability. The cooperative reforms are, therefore, absolutely vital to the future of the cooperatives.
• National Policy on Cooperatives: The Union Government has formulated a National Policy on Cooperatives in consultation with States. The objective of the National Policy is to facilitate all-round development of the cooperatives in the country and to work as guiding force for the States towards successful cooperatives. The policy, envisages that cooperatives be provided necessary support, encouragement and assistance and to ensure that they work as autonomous self-reliant and democratically managed institutions accountable to their members.
• Multi-State Cooperative Societies (MSCS): The Central Government has taken a lead in providing required autonomy to the cooperatives by enacting MSCS Act, 2002, replacing the MSCS Act, 1984. It aims at providing functional autonomy and democracy applicable to National level cooperative societies/federations and other Multi-State Cooperative societies. It is expected that it will work as a Model Act for reforms in State Cooperative Laws.
• The NCDC (Amendment) Act, 2002: The NCDC Act, 1962 has been amended vide NCDC (Amendment) Act, 2002 expanding the mandate of NCDC to include food stuff, industrial goods, livestock and services in the programmes and activities in addition to the existing programmes. The definition of agriculture produce has been amended to cover wider range of activities by including edible and non-edible oilseeds cattle feed, produce of horticulture and animal husbandry, forestry, poultry, farming, pisiculture and other allied activities to agriculture. Vide the amended Act, definition of industrial goods and livestock have been elaborated covering the products of allied industries in the rural areas and includes any handicrafts or rural crafts. The livestock includes all animals to be raised for milk, meat, fleece, skin, wool and other by-products. NCDC will be able to provide loan directly to the cooperative without State/Central Government guarantee on furnishing of security to the satisfaction of the NCDC. So far activities concerning water conservation, animal care/health, disease prevention, agricultural insurance an agricultural credit, rural sanitation/drainage/sewage have been made as notified services.
• Amendment to the Constitution in Respect of Cooperatives: In spite of the felt need for amendment in the State Cooperative Societies Act, the pace of reforms in Cooperative legislations by the States is not encouraging. Therefore, to ensure the democratic, autonomous and professional functioning of cooperatives, it has been decided to initiate a proposal for amendment to the Constitution for the purpose. This decision has been taken after careful deliberations with the States in a conference of State Cooperative Ministers held on 7 December 2004. The proposed amendment to the Constitution is purported to address the key issues for empowerment of cooperatives through their voluntary formation, autonomous functioning, democratic control and professional management. The Constitution One Hundred and Sixth Amendment Bill 2006 has been introduced in the Lok Sabha on 22 May 2006.
• Constitution of High Powered Committee: To review the achievements of Cooperative movement during the last 100 years and challenges before it, and to suggest ways and means to face them and to give a new direction to the movement, a high-powered committee has been constituted with following Terms of Reference:
1. To review the achievements of the cooperatives during the last 100 years.
2. To identify the challenges being faced by the cooperative sector and to suggest measures to address them to enable the movement to keep pace with the changing socio-economic environment.
3. To suggest an appropriate policy and legislative framework and changes required in the cooperative legislation in the country with a view to ensure the democratic, autonomous and professional functioning of cooperatives.
• Revamping of Cooperative Credit Structure: In August 2004, Government of India constituted a Task Force under the Chairmanship of Prof. A Vaidyanathan for suggesting measures for revival of cooperative credit institutions. The Task Force has submitted its Report in respect of short-term cooperative credit structure and recommended a financial package of Rs 14,839 crore for the short-term rural credit cooperative institutions. The package covers accumulated losses, unpaid invoke guarantees, receivables from State Governments, return of share capital to State Governments, Human Resources Development, conduct of special audit, computerisation, implementation costs, etc.
Based on the consensus arrived at with State Governments and other stakeholders on the recommendations made by the Task Force, the Government has approved the package for revival of the Short-term Rural Cooperative Credit Structure involving financial assistance of Rs. 13,596 crore.
The provision of financial assistance under the package has been linked to reforms in the cooperative sector. The same Task Force has been assigned the mandate for suggesting revival package for the Long-Term Cooperative Credit Structure. The Government will initiate steps for reviving Long-Term Cooperative Credit Structure after reviving the report of the Task Fore in this regard.
Animal Husbandry
Animal Husbandry and Dairy Development plays a prominent role in the rural economy in supplementing the income of rural households, particularly, the landless and small and marginal farmers.
It also provides subsidiary occupation in semi-urban areas and more so for people living in hilly, tribal and drought prone areas where crop output may not sustain the family. Animal husbandry output constitutes about 30 per cent of the country's agricultural output. According to Central Statistical Organisation (CSO), the value of output from livestock and fisheries sectors is about 37.7 per cent of total agriculture and allied sectors.
India is endowed with the largest livestock population in the world. It accounts for 57 per cent of the world's buffalo population and 14 per cent of the cattle population. According to Livestock Census (2003), the country has about 18.5 crore cattle and 9.8 crore buffaloes.
• Contribution of Livestock Sector to Food Basket: The contribution of livestock sector to the food basket in the form of milk, eggs, and meat has been immense in fulfilling the animal protein requirement of ever-growing human population. The present availability of human protein in an Indian diet is 10 gm per person per day, as against a world average of 25 gm. However, keeping in view the growing population, the animal protein availability has to increase at least two-fold for maintaining the nutritional level of growing children and nursing mothers in India.
* Milk Production: During the past five-year plans, several measures have been initiated by the Government to increase the productivity of livestock, which has resulted in significant increase in milk production to the level of 91 million tonnes in the year 2004-05. India has become the largest producer of milk in the world.
* Egg Production: The wool production in the country was 44.56 million kg during 2004-05.
* Other Livestock Products: Livestock sector not only provides essential protein and nutritious human diet through milk, eggs, meat, etc., but also plays an important role in utilisation of non-edible agricultural by-products. Livestock also provides raw material/by-products such as hides and skins, blood, bone, fat, etc.
* Livestock Insurance: The Cabinet Committee on Economic Affairs has approved the 'Livestock Insurance Scheme' on 21 February 2006 for its implementation during 2005-06 and 200-07 of the Tenth Plan on pilot basis in 100 select districts across the country. The scheme has been formulated with the twin objective of providing protection mechanism to the farmers and cattle rearers against any eventual loss of their animals and to demonstrate the benefit of the scheme to the people and popularise it with the ultimate goal of attaining qualitative improvement in livestock and their products. The scheme will cover crossbred and high yielding cattle and buffaloes during the pilot stage. The scheme envisages 50 per cent subsidy of the insurance premium. The entire expenditure on subsidised insurance premium, payment of honorarium to the veterinary practitioners and funds for publicity of the scheme will be borne by the Central Government.
The Insurance subsidy in the pilot scheme will be provided for insurance of an amount for a maximum period of three years and will be limited to two animals per beneficiary. No subsidy on insurance will be provided for the second time/extension of insurance of same animal. The scheme is to be implemented through the State Implementing Agencies (SIA) implementing the National Project on Cattle and Buffalo Breeding Programme (NPCBB) and through State Animal Husbandry Departments in those states where SIAs do not exist.
• Cattle And Buffalo Development: India possesses 27 acknowledged indigenous breeds of cattle and seven breeds of buffaloes. Various Central and Centrally sponsored schemes are being implemented for genetic improvement of cattle and buffalo with a view to enhance the per capita availability of consumption of milk through increased milk production. Efforts are also made to protect and preserve the indigenous cattle and buffalo in their native tract, which are facing threat of extinction. The elite animals are selected and registered on the basis of their performance for production of superior pedigree bulls, bull-mothers, frozen semen and frozen embryos for future breeding improvements.
The National Project for Cattle and Buffalo Breeding envisages 100 per cent grant-in-aid to implementing agencies. The Project will also promote about 14,000 private artificial insemination (AI) practitioners and buildup an annual frozen semen production capacity of 66 million doses. Since inception, 26 States have been assisted with Rs 202.52 crore upto 31 March 2005 for participating in the Project.
A Central Herd Registration Scheme for identification and location of superior germ plasm of cattle and buffaloes, propagation of superior germ stock, regulating the sale and purchase, help in formation of breeders' society and to meet requirement of superior bulls in different parts of the country is also being implemented. The Government has established Central Herd Registration Unit in four breeding tracts, i.e., Rohtak, Ahmedabad, Ongole, Ajmer. A total of 92 milk-recording centres are functioning to register these breeds of cattle, viz., Gir, Kankrej, Hariana and Ongole and in buffalo Jaffrabadi, Mehsani, Murrah and Surti. During 2005-06, 13549 animals were primary registered.
The seven Central Cattle Breeding Farms at Suratgarh (Rajasthan), Chiplima and Sunabeda (Orissa), Dhamrod (Gujarat), Hessarghatta (Karnataka), Alamadi (Tamil Nadu) and Andeshnagar (Uttar Pradesh) are engaged in scientific breeding programmes of cattle and buffaloes and production of high pedigreed bulls for National Project for Cattle and Buffalo Breeding Programme besides providing training to farmers and breeders. During 2004-05, these farms produced 313 bull calves and supplied 252 high pedigreed bull calves for use under Artificial Insemination Programme in various parts of the country. The Central Frozen Semen Production and Training Institute, Hessarghatta (Karnataka) produced 13.43 lakh doses and supplied 14.74 lakh doses of frozen semen of high pedigreed Sahiwal, Red Singhi, Holstein Friesian, Jersey, crossbred and Murrah buffalo to different States for their AI programmes.
• Poultry Development: The value of output from poultry sector is nearly 20000 crore and it provides direct or indirect employment to over 2 million people. About 25 per cent of the total egg production in the country comes from desi poultry, which is unorganised rural backyard system. A target for achieving production of over 52 billion eggs by 2011-12, at a growth rate of 4.3 per cent has been visualised by the Government of India.
Poultry sector, besides employment generation and subsidiary income increase, provides nutritional security especially to the rural poor. Further, landless labourers derive more than 50 per cent of their income from livestock especially poultry.
Central Poultry Development Organisations have been playing a pivotal role in the implementation of the policies of the Government with respect to poultry as a tool for alleviating nutritional hunger and palliating the impecuniosities of the resource-poor farmers especially the women.
The mandate of the Central poultry Development Organisation has been specifically revised, by restructuring all poultry units of this Department to focus on improved indigenous birds, which lay on an average 180-200 eggs per annum and have a vastly improved FCR ratio in terms of feed consumption and weight gain. The Central Poultry Development Organisations have been entrusted with the responsibility of producing excellent germplasm in the form of day-old chicks and hatching eggs of these varieties like Nirbheek, Hitkari, Vanaraja, Shyama Cari, CHABRO, etc.
Besides, these Organisations are imparting training to approximately 1200-1500 farmers every year both in-situ and ex-situ. These Organisations are also playing a crucial role in analysing feed samples.
These Organisations, besides the activities stated above, scaling-up of diversification of other avian species like Ducks/Turkeys/Guinea fowl/Japanese Quail, upgradation of Training Unit into International Tropical Avian Management Institute in which private-public partnership is envisaged. Presently these Organisations are also supporting and hand-holding the Centrally sponsored Scheme, ''Assistance to State Poultry Farms''.
The Random Sample Poultry Performance Testing Centre (RSPPTC), Gurgaon is entrusted with the responsibility of testing the performance of layer and broiler varieties. This Centre conducts one layer test for the period from 0-72 weeks of age wherein the production parameters of the laying birds received from different participants comprising of private and public sector agencies are tested. At the end of the test the data are analysed and the report indicating the relative performance of these entrants is published. Accordingly two broiler tests are conducted every year from 0-8 weeks of age and the results are published giving full information about growth rate, feed efficiency and margin of profit from each entrant. The report is published for the utilisation of the poultry industry in general, and the breeder participants in particular. This Centre gives valuable information relating to the different genetic stock available in the country.
A new Centrally sponsored scheme called Assistance to State Poultry Farms is being implemented during the Tenth Plan where one time assistance is provided to suitably strengthen the farms in terms of hatching, brooding and rearing of the birds with provision for feed mill and their quality monitoring and in-house disease diagnostic facilities. During the first three years of the Tenth Plan, Rs 29.75 crore has been released for assisting around 60 farms, some partially.
A new scheme "Dairy/Poultry Venture Capital Fund" has been launched during the year 2004-05, wherein there is a provision to grant subsidy on interest payment. Components like establishment of poultry breeding farm with low input technology birds and also for Ducks/Turkey/Guinea Fowl/Quail/Emu/Ostrich, establishment of feed godown, feed mill, feed analytical laboratory, marketing of poultry products (specialised transport vehicles, cool room storage facilities and retention sheds for birds, etc.), Egg grading, packing and storage for export capacity, Retail poultry dressing unit (300 birds per day), Egg/broiler carts for sale of poultry products and Central grower unit are considered for financing under this scheme.
The nodal agency for the implementation of this scheme is NABARD through nationalised commercial banks. In 2005-06, a total of 49 poultry units involving 2.17 crore was approved.
• Sheep Development: According to Livestock Census 2003, there are about 61.47 million sheep and 124.36 million goats in the country. About five million households in the country are engaged in the rearing of small ruminants (sheep, goats and rabbits) and other allied activities. The production of wool was 44.50 million kg during 2004-05. The expected wool production during 2005-06 stands at 50.0 million kg.
The Central Sheep Breeding Farm, Hissar is producing acclimatized exotic/cross bred superior quality rams. The farm has supplied 1370 rams and 50 Rambouillet ewes during 2004-05 to different states. During 2005-06, the farm has supplied 854 rams and 30 crossbred ewes. The target for net production and sale of rams has been kept at 900.
• Conservation of Threatend Breeds: Population of some of the pure-bred small ruminants, equines, pigs and pack animals has come down considerably and such breeds have come to the category of threatened breeds in the country. The farms or the farmers unit in their respective breeding tract are to be established with cent per cent Central assistance for breeds of these animals wherein their population is less than 10,000 with active participation of State Governments and NGOs, etc.
A new Centrally Sponsored Scheme for conservation of such threatened breeds has been started during Tenth Five-Year plan with a budget outlay of Rs 1500 lakh. During 2005-06, an amount of Rs 406.92 lakh has been released for conservation of Terrasa Goat (Rs 20.00 lakh) in Andaman & Nicobar Islands, Bhutia Pony (Rs 44.39 lakh) in Arunachal Pradesh, Yak (Rs 13.00 lakh) in Himachal Pradesh, Zanskari Horse (Rs 29.96 lakh) and Double Humped Camel (Rs 29.85) in Jammu & Kashmir, Madgyal Sheep (Rs 64.50 lakh) in Maharashtra, Jamunapari Goat (Rs 59.87 lakh) in Uttar Pradesh, Gray Sindhi Horse (Rs 19.70 lakh) in Punjab, and Ghoongro pig (Rs 31.15 lakh) Bonpala Sheep (Rs 30.00 lakh) and Garole Sheep (Rs 32.25 lakh) & Black Bengal Goat (Rs 32.25 lakh) in West Bengal. There is a budget provision of Rs 400 lakh under the scheme during 2006-07.
• Meat Production/Processing and Export: A Centrally Sponsored Scheme ''Assistance to States for modernisation/improvement of abattoirs and establishment of carcass utilisation centres and primary hide flaying units'' was implemented. The objectives of the scheme were to provide wholesome and hygienic meat, gainful utilisation of animal by-products, prevention of environmental pollution and cruelty to animals. Under the scheme, financial assistance of Rs. 14.15 crore was provided for incomplete projects to States of Arunachal Pradesh, Maharashtra, Rajasthan, Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Nagaland, Kerala, Tripura and Union Territory of Chandigarh during 2004-05. The scheme has now been discontinued as per Zero Based Budgeting (ZBB) decision.
• Piggery Development: There are more than 128 lakh pigs in the country of which approximately 14.5 per cent are graded and exotic variety. There are about 158 pig breeding farms in the country run by the State Governments/Union Territories. Exotic breeds like Large White Yorkshire, Hampshire and Landrace are maintained at these farms.
A Centrally-sponsored Scheme, namely, Assistance to States for Integrated Piggery Development, was implemented for strengthening the pig breeding farms in States during Ninth Plan. During the period, an amount of Rs 1521.87 lakh was released for strengthening the pig breeding farms in various States. The scheme was discontinued at the start of the Tenth Plan. A new scheme on piggery development viz. 'Integrated Piggery Development' has been initiated, on the basis of evaluation of the earlier scheme by NABARD, during 2006-07. Integrated piggery development scheme will be part of a new restructured Centrally sponsored macro-management scheme viz. National Project for Improvement of Poultry and Small Animals.
• Feed and Fodder Development: For expression of the production potentiality of our livestock, availability of nutritious feed and fodder is essential. To facilitate fodder availability, seven regional stations have been established in different agro-climatic zones for production of high yielding varieties of fodder/fodder seed and transfer of scientific fodder production technology through training of field officers, demonstration of latest fodder agronomy practices and organisation of farmer training/fair. During 2004-05, these stations produced 199.54 MT of fodder seeds and conducted 3862 field demonstrations of new fodder varieties.
A Central fodder seed production farm located at Hessarghatta (Karnataka) produced 76 MT seeds of different varieties of fodder grasses/legumes seeds during 2005-06 and conducted 540 field demonstrations of new fodder varieties. A Central mini kit demonstration programme of fodder crops is under implementation for popularising high yielding fodder varieties on a large-scale. During 2005-06, 3.54 lakh minikits were allotted to the States for distribution to farmers free of cost. Besides, a Centrally Sponsored Fodder Development Scheme is being implemented from 2005-06 for establishment of Fodder Block making units, Grassland development with grass reserves, fodder seed production and biotechnology research. During 2005-06, financial assistance of Rs 1162.39 lakh has been provided to 15 States.
The scheme initially consisted of 27 Centrally Sponsored Schemes relating to Cooperative, Crop Production Programmes (for rice, wheat, coarse cereals, jute, sugarcane) Watershed Development Programme (NWDPRA, RVP/FPR), Horticulture, Fertiliser, Mechanisation and Seeds Production Programme. However, with the launching of National Horticulture Mission (NHM), 10 schemes pertaining to horticulture development were taken out of the purview of this Scheme from the year 2005-06.
The approved pattern of Assistance under the Scheme is in the ratio of 90:10 between the Centre and the State respectively except in the case of North Eastern States in case of which 100 per cent Central Assistance is extended. The Central Assistance to the States is released in two installments in the ratio of 80 per cent Grant and 20 per cent Loan.
The position regarding Budget Estimates, Revised Estimates and expenditure incurred under the scheme since 2000-01 is as indicated below (Rs in Crore):
Year Budget Estimate Revised Estimate Expenditure
2000-01 490.00 381.88 381.88
2001-02 850.00 680.49 678.62
2002-03 736.86 597.00 597.59
2003-04 700.00 648.60 648.49
2004-05 712.92 1189.20 1188.94
2005-06 912.62 819.15 841.86
An amount of Rs 910.00 crore has been earmarked in BE 2006-07 for implementation of this Scheme.
Natural Resource Management
Soil and water conservation measures are one of the essential inputs for increasing agricultural output in the country. These programmes were first launched during the First Plan. From the very beginning, emphasis has been on development of technology for problem identification, enactment of appropriate legislation and constitution of policy coordination bodies.
While conceptual framework of soil and water conservation activities has been changed, concept of programmes has undergone considerable revision during successive Five-Year Plans.
The Centrally-Sponsored Scheme of Soil Conservation in the catchments of River Valley Project (RVP) was started in the Third Five-Year Plan. Subsequently, another scheme of Flood Prone Rivers (FPR) was started in the Sixth Five-Year Plan keeping in view the magnitude of floods in 1978. Both the schemes were clubbed together during the Ninth Five-Year Plan on recommendation of Expenditure Finance Committee and were subsumed under Macro Management Mode since November 2000. Under the programme for the Catchment Management of River Valley Projects and Flood Prone Rivers, 53 Catchments are covered, spread over in 27 States.
The total Catchment area is 141 million ha. with Priority Area needing urgent treatment in 28 million ha. Out of this 6.08 million have been treated till 2004-05 with an expenditure of Rs 1894 crore. During 2005-06 an area of 0.17 million ha. have been treated with an expenditure of Rs 145 crore.
A Centrally-Sponsored Scheme of Reclamation of Alkali Soil was taken up in Punjab, Haryana and Uttar Pradesh during the Seventh Five Year Plan. During the Ninth Plan, extension of the Scheme to all other States of India was approved where alkali soil problems exist as per scientific parameters. The Scheme aims at improving physical conditions and productivity status of alkali soils for restoring optimum crop production. The major components of the scheme include, assured irrigation water on farm development works like land leveling, bunding and ploughing, agriculture, community drainage system, application of soil amendment organic manures, etc. An area of 0.66 million ha out of 3.5 million ha., of alkali land has been reclaimed till the end of 2004-05 in the country. The Scheme at present stands subsumed within the Macro Management Scheme. During 2005-06 an area of 0.03 million ha have been reclaimed with an expenditure of Rs 9.29 crore.
The Scheme of Watershed Development Project in Shifting Cultivation Areas was launched in seven North-Eastern States during the Eighth Plan from 1994-95 with 100 per cent Central assistance to the State Plan. The Scheme aims at overall development of jhum areas on watershed basis. During the Eighth Plan an amount of Rs 31.51 crore was spent by the States of north-east region and 0.67 lakh ha. area was treated through treatment packages. During the Ninth Plan, 1.57 lakh ha. have been treated with an expenditure of Rs 82 crore. The new guidelines of the scheme on the basis of new watershed to common approach has been effective from November 2000 in the revised cost norms of Rs 10,000 per ha. on net treatable area basis with additional activities and improved institutional mechanism. During the Tenth Plan, an area of 0.89 lakh ha. has been treated with an expenditure of Rs 88.32 crore up to end of 2005-06.
Rainfed Farming
Rainfed Farming is complex, diverse and risk prone and is characterised by low levels of productivity and low input uses. The Government of India has accorded high priority to the holistic and sustainable development of rainfed areas through integrated watershed development approach. The key attributes of the watershed approach are conservation of rain water and optimisation of soil and water resources in a sustainable and cost-effective mode. Improved moisture management increases the productivity of improved seeds and fertiliser. So conservation and productivity enhancing measures become complementary.
A National Watershed Development Project for Rainfed Area (NWDPRA) was launched in 1990-91 in 25 states and two UTs. The project was continued during Tenth Five Year Plan in 28 states inclusive of three newly created States and two UTs with the purpose of increasing agriculture productivity and production in rainfed areas. The guidelines for NWDPRA have been radically restructured by retaining the technical strength and incorporating community participation. The watershed development programme is now planned, implemented, monitored and maintained by watershed communities.
• Graph: During Agriculture Ninth plan, an area of 27.66 lakh ha has been treated. Now the scheme of NWDPRA has been subsumed within the Macro Management of Agriculture scheme. The scheme is being continued for implementation during Tenth plan under the revised guidelines, with people's participation, covering more than 6000 micro-watersheds. It is estimated to develop an area of about 20 lakh ha during Tenth plan. In the first four years of Tenth Plan, an area of 1.59 million hectares has been developed at an expenditure of Rs. 793.82 crore.
A Watershed Development Fund (WDF) has been established at NABARD with the objective of integrated watershed development in 100 priority districts of 18 States through participatory approach. The total corpus of WDF is Rs 200 crore. Under WDF, two-thirds of amount is given for loan based project and one-third of amount is given for grant based project in the State. A number of externally aided projects are also under implementation on watershed approach, which covers an area of about 1.5 lakh hectares annually.
Integrated Nutrient Management (INM)
The main objective of Integrated Nutrient Management (INM) Division is to ensure adequate availability of quality fertilisers to farmers through periodical demand assessment and timely supply, promoting integrated nutrient management, which is soil test based, judicious and balanced use of chemical fertilisers in conjunction with organic manures and bio-fertilisers, promotion of organic farming and ensuring quality control of fertilisers through implementation of Fertiliser (Control) Order, 1985.
India is the third largest producer and consumer of fertilisers in the world after China and the USA. Against 18.4 million tonnes of fertiliser nutrients (NPK) consumed during 2004-05, the nutrient consumption is estimated at 20.2 million tonnes during 2005-06.
The consumption of major fertilisers namely, Urea, DAP, MOP, SSP and Complexes are estimated to be 22.2, 6.8, 2.6, 2.8 and 6.7 million tonnes respectively during 2005-06. India is, by and large, self sufficient in respect of Urea and about 90 per cent in case of DAP.
The all-India average fertiliser consumption is 96.4 kg./ha of NPK nutrients through there is wide variation from state to state varying from 197 kg./ha in Punjab, 164 kg./ha in Haryana to less than 10 kg./ha in States like Arunachal Pradesh, Nagaland, Sikkim, etc. Considering the skewed pattern of fertiliser use, Government of India is promoting balanced and integrated use of fertiliser nutrients through various initiatives. As a result, NPK consumption ratio has now improved to 5.7: 2.2: 1 during 2004-05 from 7: 2.7: 1 during 2000-01.
Price of fertilisers
Presently urea is the only fertiliser which is under Statutory Price Control. To ensure adequate availability of fertilisers to farmers at reasonable rates, subsidy is provided by Government of India. Urea, the most consumed fertiliser, is subsidised under the New Urea Pricing Scheme, whereas P&K fertilisers, which are decontrolled, are covered under the Concession Scheme. The existing scheme for special freight subsidy has been continued for supplies to the North Eastern States and Jammu and Kashmir. There is no change in the prices of major fertilisers level since 12 March 2003, which are as under:
Fertilizer Product MRP (Rs. Per MT)
Urea 4830
DAP (Indigenous) 9350
Complexes 7100-9080
MOP 4455
SSP Price of SSP is fixed by
State Governments.
Buffer Stocking of P&K Fertilisers
To ensure adequate availability of decontrolled fertilisers in remote and inaccessible areas, there is a scheme under which a buffer stock of limited quantities of DAP and MOP is being maintained at strategic locations to meet emergent requirements.
Balanced Use of Fertilisers
The Government is implementing a Centrally Sponsored Scheme 'Balanced and Integrated Use of Fertilisers' to popularise soil test based judicious application of chemical fertilisers in combination with organic manures and bio-fertilisers. Under the Scheme, financial assistance is provided for setting up/strengthening of new soil testing laboratories for advising farmers on major and micro nutrients application, training and demonstration on balanced use of fertilisers and also for setting up of production units of useful organic manure from city waste/garbage. This scheme has since been subsumed within 'Macro Management Scheme' with effect from October 2000. State Governments are required to undertake all these activities through their Annual Work Plans.
Fertilser Quality Control
The Government ensures the quality of fertilisers through Fertiliser (Control) Order (FCO) issued under Essential Commodities Act (ECA) to regulate the price, trade, quality and distribution of fertilisers in the country. The State Governments are the executing agencies to implement the various provisions of FCO.
The Order strictly prohibits the manufacture, import and sale of any fertiliser, which does not meet prescribed standards. The Central Fertiliser Quality Control and Training Institute at Faridabad and its 3 Regional centres located at Navi Mumbai, Chennai and Kalyani have been set up for inspection and analysis of imported and indigenous fertilisers, giving technical advice and providing training on quality control to state enforcement agencies and analysts. The Institute has also developed a Quick Testing Kit for on-the-spot detection of adulteration in fertilisers.
The FCO has been recently amended to make it more user friendly and ensuring effective enforcement. The important amendments include provision of repackaging of cut or torn fertiliser bags and reprocessing of damaged fertiliser due to natural calamities and provisions for commercial trials of provisional fertilisers. Accordingly, M/s National Fertiliser Limited (NFL), M/s Tata Chemicals, M/s Chambal Fertilisers Ltd., M/s Indo-Gulf Fertilisers and M/s Shri Ram Fertilisers have been permitted to manufacture neem-coated urea under Clause 20 A for commercial trials. M/s Coromandel Fertilisers Ltd. have been permitted to manufacture Bentonite Sulphur for commercial trials and M/s IFFCO has been permitted to manufacture fortified complex fertilisers. Printing of Maximum Retail Price (MRP) on all fertilisers including urea is now mandatory along with the printing of month and year of manufacture/import of fertiliser.
Presently there are 67 laboratories in the country (including 4 Central Government Laboratories) with a total annual analysing capacity of 1.25 lakh samples. The analytical capacity and the number of samples analysed and found non standard during the last 5 years are as under:
Year No. of Annual No. of Per centage of
Labs. Analytical samples non standard
capacity analysed samples
2000-01 66 120315 103436 5.3
2001-02 66 120415 104188 5.7
2002-03 67 125480 109504 5.4
2003-04 67 124778 104647 5.5
2004-05 67 124730 108859 6.0
The per centage of non standard samples on all India basis is hovering around 5-6 per cent samples during the last 5 years. However, there is a large variation from state to state as 18 per cent in M.P., 10-13 per cent in Maharashtra, HP and UP, 4-8 per cent in Bihar, Orissa, W.B., Rajasthan, Haryana, Chhattisgarh, A.P., Kerala, Karnataka and Tamil Nadu and around 1-3 per cent in Punjab and Gujarat.
• Promotion of Bio-Fertiliser: With a view to promote the use of bio-fertilisers as an environment-friendly and cheaper source of plant nutrients, Government of India had earlier taken up a 'National Project on Development and Use of Bio fertilisers' during the Sixth Plan and was continued till Ninth Plan. The Scheme provided for setting up National Bio-fertiliser Development Centre at Ghaziabad and its Six Regional Bio-fertiliser Development Centres (RBDCs) at Jabalpur, Nagpur, Bangalore, Bhubaneswar, Hissar and Imphal for promotion, extension, training and demonstration of bio-fertilisers. Under the Scheme, assistance for setting up of bio-fertiliser production units was also provided. Presently, there are around 125 bio-fertilisers production units in the country with an annual capacity of 18,000 tonnes of different types of bio-fertilisers and the annual production is about 10,000 tonnes. This scheme has been subsumed under a new Central Sector Scheme "National Project on Organic Farming" from October 2004. To undertake the new activities, the names of NBDC and RBDCs have been changed to National Centre of Organic Farming (NCOF) and Regional Centres of Organic Farming (RCOF).
• National Project On Organic Framing: The Government is implementing a new scheme 'National Project on Organic Farming' since October 2004 with an outlay of Rs 57.05 crore for production, promotion, market development of organic farming in the country during the remaining period of the Tenth Plan. The main components of the scheme include:
i. Putting in place a system of certification of organic produce.
ii. Capacity building through service providers.
iii. Financial support for commercial production units for production of organic inputs like:
a. fruits and vegetable waste compost units;
b. biofertilisers production; and
c. hatcheries for vermi culture.
iv. Promotion, extension and market development of Organic Farming.
Plant Protection
Plant Protection continues to play a significant role in achieving targets of crop production. The major thrust areas of plant protection are promotion of Integrated Pest Management, ensuring availability of safe and quality pesticides for sustaining crop production from the ravages of pests and diseases, streamlining the quarantine measures for accelerating the introduction of new high yielding crop varieties, besides eliminating the chances of entry of exotic pests and for human resource development including empowerment of women in plant protection skills. Following three Plan Schemes are being implemented by Plant Protection Division of the Department of Agriculture and Cooperation through Directorate of Plant Protection, Quarantine and Storage
• Strengthening And Modernisation of Pest Managment Approach in India
Components:
A. Promotion of Integrated Pest Management (IPM)
B. Locust Control and Research
C. Training in Plant Protection
D. Implementation of Insecticides Act
On the recommendation of Planning Commission the Schemes at A to D have been merged as a single scheme i.e. "Strengthening and Modernisation of Pest Management Approach in India" with a total outlay of Rs. 99.95 crore during Tenth Five year Plan (2002-2007).
E. Promotion of integrated Pest-Management: Keeping in view the ill effects of chemical pesticides such as development of pest resistance, pest resurgence, outbreak of secondary pests, pesticide residues in food, fodder, soil, air and water resulting in human health hazards and ecological imbalances, Government of India has adopted Integrated Pest Management (IPM) as the cardinal principle and main plank of plant protection strategy in the country. IPM is an eco-friendly approach aimed at minimum use of chemical pesticides by employing available alternative methods for pest control like cultural, mechanical and biological and use of bio-pesticides.
To enhance the production of bio-control agents/bio-pesticides, Government of India earmarked Rs 1500 lakh as grants-in-aid during the Eighth and Ninth Plans for establishment of 29 State Bio-control Laboratories of which an amount of Rs 1372 lakh has been released to States. During the Tenth Plan, an amount of Rs 470 lakh has been approved of which Rs 405 lakh has already been released so far for the said purpose. With the adoption of IPM approach, consumption of pesticides has come down from 72,133 MT (tech. grade) during 1991-92 to 40,672 MT (tech. grade) during 2004-05 and there is consistent increase in use of bio-pesticides which are environmentally safe. In some of the States, farmers have stopped using chemical pesticides and have adopted organic farming.
F. Locust Control and Research: The Locust Warning Organisation, Jodhpur with its 10 Locust circle offices and 1 Field Station monitors two lakh sq. km. Scheduled Desert Area in Rajasthan, Gujarat and Haryana for locust surveillance and control. During 2005-06, an area of 150 lakh hectares has been surveyed and 24 locust bulletins have been issued. Close liaison is being maintained with other locust prone countries and the FAO to keep watch over possible locust invasion. The 24th Session of FAO Commission for Controlling the Desert Locust in South West Asia was held in New Delhi from 10-14 January 2005. During the year 2005-06, 7 Indo-Pak Border Meetings were conducted with the officers of Pakistan.
G. Training in Plant Protection: Until 1966, there was no national training facility in India to cater to the needs of the States. To bridge this gap, the National Plant Protection Training Institute was established in 1966 at Hyderabad (Andhra Pradesh). The Institute has been recognised as a Regional Training Centre for Plant Protection by Food and Agricultural Organisation of the United Nations and also as an Advanced Centre for training in Plant Protection Technology by the World Bank. The Institute has conducted 912 courses and trained 16,747 officers/officials including 216 foreign trainees up to 2005-06.
H. Implementation of Insecticides Act: Pesticides are commonly used in crop protection measures for sustaining food production. These are also used for the control of vector borne diseases. As they are meant for killing insect pests and, therefore, toxic by their nature. Their misuse or abuse may result in hazards to human beings, animals and the environment. Therefore, pesticides are required to be used safely and judiciously. Keeping this in view, their import, manufacture, sale and use, etc., are being regulated under the Insecticides Act, 1968 and the Rules framed thereunder. The provisions under the Act ensure the availability of safe, effective and quality pesticides to the farmers.
The Central Government has constituted the Central Insecticides Board under Section 4 of the Insecticides Act, 1968 to advise the Central and State Governments on technical matters arising out of the administration of this Act. The Director General, Health Services is the Chairman with 29 members. The Central Government has constituted a Registration Committee to register pesticides after examining their formulae verifying their efficacy and safety to human beings, animals and environment.
The Government of India has also set up a Central Insecticides Laboratory with the major objectives of pre and post registration verification of the properties, performance and hazards of pesticides and the proposed use claimed by the manufacturers.
To supplement the resources of the States/UTs in the analysis of pesticides, two Regional Pesticides Testing Laboratories have also been set up at Chandigarh and Kanpur with an analysis capacity of 900 samples per annum each.
Plant Quarantine Facilities in India: Plant Quarantine regulatory measures are operative through the "Destructive insects & pests Act, 1914 (Act 2 of 1914)" in the country. The purpose and intent of this Act is to prevent the introduction of any insect, fungus or other pest, which is or may be destructive to crops.
The import of agricultural commodities is presently regulated through the Plant Quarantine (Regulation of Import into India) Order, 2003 issued under DIP Act, 1914 incorporating the provisions of New Policy on Seed Development, 1988. Further, the significance of Plant Quarantine has increased in view of Globalisation and liberalisation in International trade of plants and plant material in the wake of Sanitary and Phytosanitary (SPS) Agreement under WTO.
The phytosanitary certification of agricultural commodities being exported is also undertaken through the scheme as per International Plant Protection Convention (IPPC), 1951.
The primary objectives of the Scheme are
ix. to prevent the introduction and spread of exotic pests that are destructive to crops by regulating/restricting the import of plants/plant products and
x. to facilitate safe global trade in agriculture by assisting the producers and exporters by providing a technically competent and reliable phytosanitary certificate system to meet the requirements of trading partners.
The major activities under the scheme include;
• Inspection of imported agricultural commodities for preventing the introduction of exotic pests and diseases inimical to Indian Fauna and Flora
• Inspection of agricultural commodities meant for export as per the requirements of importing countries under International Plant Protection Convention (IPPC)
• Detection of exotic pests and diseases already introduced for containing/controlling them by adopting domestic quarantine regulations.
• Undertaking Post Entry Quarantine Inspection in respect of identified planting materials.
• Conducting the Pest Risk Analysis (PRA) to finalise phytosanitary requirements for import of plant/plant material.
There are 35 Plant quarantine Stations at different Airports, Seaports and Land frontiers implementing the Plant Quarantine regulations. The NPQS, New Delhi and RPQSs at Chennai, Kolkata, Amritsar and Mumbai have been strengthened with modern equipment for plant quarantine testing, etc., to facilitate speedy clearance of imports and exports under the FAO-UNDP Project.
The Sanitary and Phytosanitary Agreement of WTO envisages application of Phytosanitary measures based on scientific justifications therefore it is imperative to conduct all Plant Quarantine inspections as per the International Standards/guidelines.
Accordingly, the National Standards for Phytosanitary Measures for some of the important activities have already been developed and adopted including the Guidelines for Development of National Standards for Phytosanitary Measures and six draft National Standards are under the process of approval.
The Standards which are critical for our exports have been prioritised. Further, a National Integrated Fruit Fly Surveillance Programme has also been prepared with a view to establish pest-free areas against fruit flies. To streamline the Plant Quarantine activities, efforts are being made to computerise the Plant Quarantine Stations for speedy and transparent functioning.
Substantial efforts have also been made towards the international cooperation on the phytosanitary matters including participation in IPPC Standard Committee meetings for development of International Standards for Phytosanitary Measures, Training of fumigation service providers and regulators in methyl bromide fumigation under the Australian Fumigation Accreditation Scheme, finalisation of SPS Protocol for export of mango to China, harmonisation of phytosanitary measures with reference to Seed trade through the Workshops organised by Asia Pacific Seed Association (APSA), negotiations on free trade agreement with Thailand and Singapore, Memorandum of Understanding and work plan with Chile for cooperation on Phytosanitary matters and Indo-Nepal Joint trade and economic development negotiations.
• Monitoring of Pesticide Residues:The subject "Monitoring of Pesticide Residues" has been allocated to the Department of Agriculture and Cooperation by the Cabinet Secretariat. Monitoring of pesticide residues at the national level is essential to ensure food safety in the country. Further, it is essential to ensure that our export consignments are not rejected due to presence of pesticide residues. The Scheme has been approved with an outlay of Rs 24 crore during the Tenth Plan.
Agricultural Mechanisation
Strategies and programmes have been directed towards replacement of traditional and inefficient implements by improved ones, enabling the farmers to own tractors, power tillers, harvesters and other machines, availability of custom services, support services of human resource development, testing and evaluation and research and development.
A large industrial base for manufacturing of the agricultural machines has also been developed. Introduction of technologically advanced equipments through extension and demonstration besides institutional credit has also been taken up. Equipments for resource conservation have also been adopted by the farmers. Under various Government sponsored schemes like Macro Management of Agriculture, Technology Mission for Oilseeds, Pulses and Maize, Technology Mission on Horticulture and Technology Mission on Cotton, financial assistance is provided to the farmers for the purchase of identified agricultural implements and machines.
• Farm Machinery Training and Testing Institutes: Farm Machinery Training and Testing Institutes (FMT and TIs) have been established at Budni (Madhya Pradesh), Hissar (Haryana), Garladinne (Andhra Pradesh) and at Biswanath Chariali (Assam) having capacity to train 5,000 personnel annually on various aspects of agricultural mechanisation. These institutes also undertake testing and performance evaluation of agricultural machines including tractors in accordance with the national and international standards. Since inception about 93,503 personnel have been trained and about 2,162 machines tested by these Institutes till 31 March 2006. During 2005-06 these Institutes have trained 5734 personnel and tested 112 machines. The training programmes have been revised for giving more emphasis on crop/area/technology specific issues for optimised training duration for their implementation through Farm Machinery Training and Testing Institutes w.e.f. 1 April 2005.
• Outsourcing of Training: This is a new component approved for the Tenth Plan under the Central Sector Scheme "Promotion and Strengthening of Agricultural Mechanisation through Training, Testing and Demonstration" in order to train large number of farmers at nearby places. The training programme shall be arranged through the identified institutions by each State namely State Agricultural Universities (SAUs), Agricultural Engineering Colleges/Polytechnics, etc. This Department has released Rs 73 lakh during the year 2004-05 and Rs 38.03 lakh during the year 2005-06 to various State Governments and ICAR for conducting training programmes at the identified institutions. For the year 2006-07, a target to train 3000 farmers has been kept.
• State Agro Industries Corporation: Seventeen State Agro Industries Corporations, Joint Sector Companies, have been promoted by the Government of India and by the State Governments concerned. The objectives of these Corporations envisage manufacture and distribution of agricultural machines, distribution of agri-inputs, promotion and execution of agro based industries and providing technical services and guidance to the farmers and others. The Government of India's share in Six State Agro Industries Corporations viz. Tamil Nadu, Karnataka, Rajasthan, Gujarat, Uttar Pradesh and West Bengal have been disinvested in favour of the respective State Governments.
• Legislative Framework: The Dangerous Machines (Regulation) Act, 1983, came into force with effect from 14 December 1983. The Act provides for the regulation of trade and commerce and production, supply and use of products of any industry producing dangerous machines with a view to securing the welfare of persons operating any machine and for payment of compensation for death or bodily injury suffered while operating any such machine. Power threshers used for threshing of the agricultural crops have been brought under the ambit of this Act. The Government of India have notified the Dangerous Machines (Regulation) Rule, 1985 laying down the specifications for the feeding chutes and for installation of the power threshers. Apart from power threshers the inclusion of power operated chaff-cutter and sugarcane crusher under this Act is in process.
• Demonstration of Newly Developed Agricultural/horticultural Equipments: With an objective of introducing new technology in agricultural production system, demonstration of newly developed/improved agricultural and horticultural equipments has been approved from the year 1999-2000 which now forms a component of the restructured Central Sector Scheme "Promotion and Strengthening of Agricultural Mechanisation through Training, Testing and Demonstration". Under this component, 100 per cent Central grant-in-aid is provided to implementing agencies for procurement and demonstration of new/improved equipments. The Scheme is implemented through State/Central Government organisations. This component has helped in adoption of new agricultural/horticultural equipments by the farmers. During 2005-06, 8099 demonstrations of different new equipments were conducted benefiting 3,06,798 farmers. During 2006-07, 1500 such demonstrations will be conducted through the implementing agencies.
• Extension Activites: Agricultural Extension aims at improving technology dissemination of farm technologies to the farmers. The Extension System has undergone several changes over a period, in terms of content and delivery approaches. Agricultural Extension is a State subject, however, the Ministry of Agriculture supplements States' efforts in improving extension services.
The Department of Agriculture and Cooperation lays down major policy guidelines on extension matters and the Directorate of Extension implements specific programmes and activities in close collaboration with the State Departments of Agriculture, the State Agricultural Universities and other concerned agencies.
Current efforts in improving extension services include the following:
• Providing innovative and decentralised institutional arrangements in the form of an Agriculture-Technology Management Agency (ATMA) to make extension system farmer driven and farmer accountable
• Encouraging Public Private Partnership (PPP) in various modes/forms can provide synergistic approach in the extension efforts
• Augmentation of Mass Media Support to Agriculture Extension by providing for location-specific broadcasts through 96 FM stations of All India Radio, 180 Low Powered/High Powered Transmitters, 18 Regional Kendras of Doordarshan and also on DD National Channel for 30 minutes, 5/6 days a week;
• Operation of Kisan Call Centres through toll free (1551) lines throughout the country to provide expert advise to farmers from 6.00 am to 10.00 pm on all 7 days of the week. The replies to the queries of the farming community are being given in 21 languages
• Providing fee based advisory and other support services to the farmers by training agriculture graduates in agri-business development and establishing agri-clinics
• Mainstreaming gender concerns in agricultural policies and programmes.
Seeds
Seed is a critical and basic input for enhancing agricultural production and productivity in different agro-climatic regions. Indian seed programme largely adheres to the limited generation system for seed multiplication.
The system recognises three generations, namely, breeder, foundation and certified seeds and provides adequate safeguards for quality assurance in the seed multiplication chain to maintain the purity of variety as it flows from the breeders to the farmers. The level of certified/quality seed distributed to the farmers since 200001 is given below:
Year certified/quality seed distribution (in lakh quintals)
Year Certified Quality Seed Distribution
2000-01 86.27
2001-02 91.80
2002-03 98.03
2003-04 108.39
2004-05 113.01
2005-06 118.52 (Anticipated)
2006-07 148.63 (Targeted)
Indian seed programme includes the participation of Central and State governments, Indian Council of Agricultural Research (ICAR), State Agricultural Universities (SAU) system, public sector, co-operative sector and private sector institutions.
Seed sector in India consists of two national level corporations i.e. National Seeds Corporation (NSC) and State Farms Corporation of India (SFCI), 13 State Seed Corporations (SSCs) and about 100 major seed companies.
For quality control and certification, there are 22 State Seed Certification Agencies (SSCAs) and 101 State Seed Testing Laboratories (SSTLs). The private sector has started to play a significant role in the production and distribution of seeds. However, the organised seed sector particularly for food crops cereals continues to be dominated by the public sector.
• Legislative Framework and Policy: The Seeds Act, 1966 provides for the legislative framework for regulation of quality of seeds sold in the country. The Central Seed Committee (CSC) and the Central Seed Certification Board (CSCB) are apex agencies set up under the Act to deal with all matters relating to administration of the Act and quality control of seeds. The proposed Seeds Bill, 2004 in replacement of the Seeds Act, 1966 was introduced in the Parliament in December 2004 and is currently under consideration of the Parliamentary Standing Committee on Agriculture.
In order to encourage export of seeds in the interest of farmers, the procedure for export of seeds has been simplified. Seeds of various crops have been placed under Open General Licence (OGL) except the seeds of wild varieties, germplasms, breeder seeds, and onion seeds which are on restricted list under the new Export and Import Policy 2002-07.
• Schemes of the Seed Division:
i. This Department have launched a Central Sector Scheme namely, "Development and strengthening of Infrastructure facilities for Production and Distribution of Quality seeds" with an outlay of Rs.159 crore for the Tenth Plan. The main components of the scheme are Quality Control Arrangements on Seeds, Transport subsidy on movement of seeds to North-East and other hilly areas, Establishment and Maintenance of Seed Bank, Seed Village Scheme, Assistance for creation of infrastructure facilities, Assistance for boosting seed production in private sector, Human Resources Development, Assistance for Seed Export, Propagation of application of biotechnology in agriculture, Promotion of use of hybrid seeds of rice and evaluation/review.
ii. Implementation of Plant Varieties Protection and Farmers Right legislation In order to fulfill the obligations under TRIPS Agreement of the World Trade Organisation (WTO), which India has ratified, the Department of Agriculture and Cooperation have enacted a legislation for Protection of Plant Varieties and Farmers' Rights. In order to provide necessary back-up support for enactment of the above Legislation, a Central Scheme is also under implementation. The required rules and regulations under the Plant Varieties and Farmers' Rights Act have been notified in 2003. The Protection and Plant Varieties and Farmers' Rights Authority envisaged under the Act has been set up w.e.f. 14 November 2005.
Agricultural Marketing
Organised marketing of agricultural commodities has been promoted in the country through a network of regulated markets. Most of the State governments and Union Territories have enacted legislations (APMC Act) to provide for regulation of agricultural produce markets. While by the end of 1950, there were 286 regulated markets in the country, today the number stands at 7,521 (31.3.2005).
Besides, the country has 27,294 rural periodical markets, about 15 per cent of which function under the ambit of regulation. The advent of regulated markets has helped in mitigating the market handicaps of producers/sellers at the wholesale assembling level. But, the rural periodic markets in general, and the tribal markets in particular, remained out of its developmental ambit.
Agriculture sector needs well functioning markets to drive growth, employment and economic prosperity in rural areas of the country. In order to provide dynamism and efficiency into the marketing system, large investments are required for the development of post harvest and cold chain infrastructure nearer to the farmers' field. A major portion of this investment is expected from the private sector, for which an appropriate regulatory and policy environment is necessary.
Alongside, enabling policies need to be put in place to encourage procurement of agricultural commodities directly from farmers' field and to establish effective linkage between the farm production and the retail chain and food processing industries. Accordingly, amendment to the State APMC Act for deregulation of marketing system in the country is suggested to promote investment in marketing infrastructure, motivating corporate sector to undertake direct marketing and to facilitate a national integrated market.
The Ministry of Agriculture formulated a model law on agricultural marketing for guidance and adoption by State Governments. The model legislation provides for establishment of Private Markets/Yards, Direct Purchase Centres, Consumer/Farmers Markets for direct sale and promotion of Public Private Partnership in the management and development of agricultural markets in the country. Provision has also been made in the Act for constitution of State Agricultural Produce Marketing Standards Bureau for promotion of Grading, Standardisation and Quality Certification of agricultural produce. This would facilitate pledge financing, direct purchasing, forward/future trading and exports. Several States have initiated steps for amending the APMC Act.
• Infrastructure Requirement: Investment requirement for the development of marketing, storage and cold storage infrastructure in the country has been estimated to be huge and with a view to induce investment in the development of marketing infrastructure as envisaged above, the Ministry has implemented the following Plan Schemes:
i. A capital investment subsidy scheme titled "Construction of Rural Godowns" is being implemented w.e.f. 1 April 2001. The main objectives of the scheme include creation of scientific storage capacity with allied facilities in rural areas to meet various requirements of farmers for storing farm produce, processed farm produce, agricultural inputs, etc., and prevention of distress sale by creating the facility of pledge loan and marketing credit. Under the original scheme, back ended subsidy @ 25 per cent of capital cost of the project was provided. In case of NE States, hilly areas and SC/ST entrepreneurs, subsidy was provided @ 33.33 per cent of the capital cost of the project. The Scheme has since been modified with effect from 20 October 2004, to provide subsidy @ 25 per cent to farmers, Agriculture graduates, cooperatives and Central Warehousing Corporation/State Warehousing Corporations. All other categories of individuals companies and corporations are now given subsidy @ 15 per cent of the project cost. The scheme has been made farmers' friendly by allowing subsidy for smaller godowns of 50 MT size in general and of 25 in hilly areas. Five lakh tonnes capacity to be created is reserved for small farmers. The scheme is being implemented through NABARD and NCDC. Till 31 May 2006, 11,583 storage projects having a capacity of 166.42 lakh tonnes have been sanctioned under the scheme.
ii. With a view to establish a nation-wide information network for speedy collection and dissemination of price and market related information to farmers, electronic connectivity is being provided to all important agricultural markets in the country under a Central scheme, "Market Research and Information Network". 2,408 market nodes and 92 State Marketing Boards and Directorate of Marketing and Inspection offices have been networked on a single portal, wherein daily prices of more than 300 commodities and about 2000 varieties are being reported. It is planned to connect 2,700 markets in all, under the scheme during the 10th Plan.
iii. The Ministry of Agriculture is implementing another Central Sector scheme for "Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardisation". Under the scheme, investment subsidy is provided @ 25 per cent on the capital cost of the marketing infrastructure development project subject to a maximum of Rs 50 lakh for each project in all States and @ 33.3 per cent of capital cost subject to a maximum of Rs 60 lakh for each project in case of North Eastern States, hilly areas and to Scheduled Castes/Scheduled Tribes entrepreneurs. In respect of infrastructure projects of State Governments/State Agencies, there is no upper ceiling on subsidy to be provided under the scheme. The scheme is reform linked, to be implemented in those States/Union Territories wherein the law dealing with agriculture markets (Agricultural Produce Marketing Regulation Act) allows setting up of competitive agricultural markets in private and cooperative sectors, direct marketing and contract farming. The States of Andhra Pradesh, Punjab, Kerala, Tamil Nadu, Manipur, Sikkim, Madhya Pradesh, Himachal Pradesh, Nagaland, Rajasthan, Chattisgarh and Union Terriroty of Andaman and Nicobar Islands, Daman and Diu and Dadra and Nagar Haveli have notified to receive assistance under the Scheme. The remaining States/UTs are in the process of amending their APMC Acts. 158 training and awareness programmes have been conducted in the notified States/UTs. A total number of 259 new project proposals have been provided advance subsidy of Rs 516.30 lakh by NABARD in the States of Madhya Pradesh, Tamilnadu, Punjab, Andhra Pradesh and Kerala.
iv. The Department has recently taken the initiative to promote modern terminal markets for fruits, vegetables and other perishables in important urban centres of the country. These markets would provide state of art infrastructure facilities for electronic auction, cold chain and logistics and operate through primary collection centres conveniently located in producing areas to allow easy access to farmers. The terminal markets are envisaged to operate on a 'Hub-and-Spoke' format wherein the Terminal Market (the hub) would be linked to a number of collection centres (the spokes), conveniently located in key production centers to allow easy access to farmers for the marketing of their produce. The concept on setting up of Terminal Markets for perishable commodities was discussed with the State Governments and interested private enterprises at a national conference of State Ministers held on 20 February 2006 at New Delhi. Based on the discussions, a Committee has been constituted under the Chairmanship of Director General, National Institute of Agricultural Marketing, Jaipur with members from participating State Governments to develop a framework for the bidding process for selecting the enterprise for the implementation of terminal market projects and to work out implementation modalities. Central assistance to these projects is planned by way of equity participation.
The Department of Agriculture and Cooperation has three organisations dealing with marketing under its administrative control, namely, the Directorate of Marketing and Inspection (DMI), Faridabad, the Ch. Charan Singh National Institute of Agricultural Marketing (NIAM), Jaipur and the Small Farmers Agri-Business Consortium (SFAC), New Delhi.
• Directorate of Marketing and Inspection: It is an attached office of the Department and is headed by Agricultural Marketing Adviser. The Directorate has its Head Office at Faridabad (Haryana), Branch Head Office at Nagpur (Maharashtra), 11 Regional Offices and the Central Agmark Laboratory at Nagpur. Besides, there are 26 Sub-Offices, 16 Regional Agmark Laboratories (RALs) spread all over the country.
The main functions of the Directorate are as follow:
1. Rendering advice on statutory regulation, development and management of agricultural produce markets to the States/UTs
2. Promotion of Standardisation and Grading of agricultural and allied produce under the Agricultural Produce (Grading and Marking) Act, 1937
3. Market Research, Surveys and Planning
4. Training of personnel in Agricultural Marketing
5. Marketing Extension
6. Agricultural Marketing Information Network
7. Construction of Rural Godowns and
8. Development of Agricultural Marketing Infrastructure.
• Grading and Standardisation: The Agricultural Produce (Grading and Marking) Act, 1937 empowers the Government to fix quality standards, known as "AGMARK" standards and to prescribe terms and conditions for using the seal of 'AGMARK'. So far, grade standards have been notified for 182 agricultural and allied commodities. The purity standards under the provision of the Prevention of Food Adulteration (PFA) Act, 1954 and Bureau of Indian Standards (BIS) Act, 1986 are invariably taken into consideration while framing the grade standards. International Standards framed by Codex/International Standards Organisation (ISO) are also considered so that Indian produce can compete in the international market.
During the year 2005-06, the final notification of Spices G & M Rules, 2005 is published, containing standards of eleven spices, namely, large Cardamom, Cardamom, Turmeric, Chillies, Ginger, Black Pepper, Coriander, Fennel, Fenugreek, Celery, Cumin, etc. The standards of Walnut duly harmonised with the international standards have been submitted to APEDA and were discussed in the Core Group's Meeting. The approval of Standing Committee on fresh Fruits and Vegetables is awaited for commodities like Lemons, Limes, Mandarins, Oranges, Grape Fruits, Walnuts in-shell and Walnut shelled.
• National Institute of Agricultural Marketing: The National Institute of Agricultural Marketing (NIAM) started functioning at Jaipur (Rajasthan) from 8 August 1988. NIAM has been imparting training to senior and middle level executives of agricultural and horticultural departments, Agro Industries, Corporations, State Marketing Boards, Agricultural Produce Market Committees and Apex level Cooperatives, Commodity Boards, export houses recognised by Agricultural and Processed Food Products Export Development Agency (APEDA), Commercial Banks and non-governmental organisations. Besides these clients, the NIAM also imparts training to farmers on marketing management. The main objectives of NIAM are:
0. To provide specialised training in agricultural marketing designed to develop leadership potential in the management of agricultural marketing enterprises and services
1. To undertake research in agricultural marketing for Government, Cooperative and other Institutes, both on public funding and by contract
2. To undertake appraisal of markets/marketing projects for approval and financial support by the Central Government, on consultancy basis
3. To formulate objective criteria for selective development of physical markets and to evolve a practical methodology for the application of such criteria in their planning
4. To offer advisory and consultant services on marketing policies, investment programmes and marketing development strategies and specific advice to marketing enterprises (State, Private and Cooperatives)
5. To survey, study and analyse the rural market management and to examine in depth the principal and practice of market regulation as a development sector in the agricultural economy.
The NIAM is managed by a Governing Body under the Chairmanship of Minister of Agriculture and an Executive Committee under the Chairmanship of Secretary, Department of Agriculture and Cooperation.
• Training Activities: The Institute organises Training Programmes for officials, farmers and other functionaries. In 2003-04 Management Development Programmes (MDP) were introduced. So far four MDPs have been successfully organised for leading companies like Bayer Crop Science, MICO BOSCH, etc. The MDPs were held at NIAM campus and 120 working executives of these MNCs working in various capacities have been benefited from this programme. All these MDPs were rated excellent by the participants and many other companies have shown keen interest in organising MDPs at NIAM, Jaipur.
• Research: The domestic Agricultural Marketing scenario has witnessed lot of changes in policies and regulations. The enactment of Model Act by some States have brought substantial improvements in trade and marketing. Following Research studies are being conducted by NIAM during the year 2005-06.
0. Contract Farming-prospects and implications
1. Commodity Trade Research
2. Market led extension-a participatory approach
3. Developing India GAP Standards
4. Information need assessment of stakeholders in Agricultural Marketing-A case of Rajasthan
• Project Formulation: In order to generate resources and ensure optimum utilisation of the expertise of the NIAM faculty, the Institute is taking up several Consultancy Projects in the year 2005-06. These include setting up Modern Terminal Market for fruits and vegetables at Nasik, Chandigarh, Nagpur, Patna, Bhopal, Rai (Haryana), Multi-utility integrated facility Centre-Pack house at Ludhiana for MARKFED, Punjab, State Master Plan for Market Development in Orissa, Price Forecasting for Agricultural Commodity in Karnataka, On-line Market information system for Karnataka, Designing, Planning and detailed Project report for CA Storage at Kolkata. Detailed Project Reports have been prepared for the Modern Terminal Markets at Nashik, Nagpur, Chandigarh, Bhopal and Rai (Haryana).
• Post Garduate Programme in Agri-Business Managment (PGPABM): The Institute has undertaken Post-Graduate Programme in Agri-Business Management (PGPABM) as a Sub-centre of MANAGE, Hyderabad from July 2001 and 50 students are presently undergoing Post-Graduate Programme in Agri-Business. The programme is designed to assist agricultural graduates to acquire the critical know-how to compete in the domestic and global business arena and to make them efficient agri-business managers.
• Small Farmers Agri-Business Consortium: The Small Farmers Agri-business Consortium (SFAC) was registered by Department of Agriculture and Cooperation as a Society under the Societies Registration Act, 1860 on 18 January 1994. Members at present include RBI, SBI, IDBI, EXIM Bank, Oriental Bank of Commerce, NABARD, Canara Bank, NAFED, United Phosphorous Ltd., etc.
The SAFC is managed by a Board of Managers consisting of 20 members and chaired by Hon'ble Union Minister of Agriculture as its Ex-Officio President and the Secretary (Department of Agriculture and Cooperation), Government of India as its Ex-Officio Vice President. Managing Director is the Chief Executive of SFAC. SFAC has established 18 State level SFACs by contributing a corpus fund. The mission of the Society is to support innovative ideas for generating income and employment in rural areas by promoting private investments in agribusiness projects.
The Central sector scheme for agri-business development implemented by SFAC was approved by the Government on 19 July 2005 for implementation during remaining period of the Tenth Plan with an outlay of Rs 48 crore. The scheme is being implemented by SFAC in close association with commercial banks for providing
• Venture Capital Assistance to agribusiness projects and assist farmer/producer groups in preparation of quality Detailed Project Reports (DPR).
The main objectives of the scheme are to facilitate setting up of agribusiness ventures in participation with banks, catalyse private investment in setting up of agribusiness projects and thereby providing assured market to producers for increasing rural income and employment, strengthen backward linkages of agri-business projects with producers, assist farmers, producer groups, and agriculture graduates to enhance their participation in value chain through project development facility, arrange training and visits, etc., of agripreneurs setting up identified agribusiness projects. SFAC provides financial assistance to agribusiness projects by way of equity participation.
The quantum of SFAC venture capital assistance depended on the project cost and will be the lowest of the following
• 10 per cent of the total project cost assessed by the bank
• 26 per cent of the project equity
• Rs 75 lakh
Higher venture capital assistance can be considered by SFAC to deserving projects on merit and/or to projects that are located in remote and backward areas, North-eastern and hilly States and projects recommended by State agencies.
The outlay for implementation of the scheme during 2005-2006 was Rs. 10 crore which has been utilised. During the year venture capital assistance has been sanctioned to 44 agribusiness projects and assistance has been provided for preparation of 11 Detailed Project Reports(DPRs).
The allocation for implementation of the scheme during 2006-07 is Rs. 38 crore.
Cooperation
• Cooperative Reforms: The Cooperative movement in India traces its origin to the agriculture and allied sector and was evolved as a mechanism for pooling meagre resources of the people with a view to providing them the advantages of economies of scale. After independence, the cooperatives were considered as part of the strategy for planned economic development. The cooperatives are today at the crossroads of existence particularly in view of the fast emerging scenario of economic liberalisation and globalisation. These institutions in general suffer from resource constraint, poor governance and management, inefficiency and unviability. The cooperative reforms are, therefore, absolutely vital to the future of the cooperatives.
• National Policy on Cooperatives: The Union Government has formulated a National Policy on Cooperatives in consultation with States. The objective of the National Policy is to facilitate all-round development of the cooperatives in the country and to work as guiding force for the States towards successful cooperatives. The policy, envisages that cooperatives be provided necessary support, encouragement and assistance and to ensure that they work as autonomous self-reliant and democratically managed institutions accountable to their members.
• Multi-State Cooperative Societies (MSCS): The Central Government has taken a lead in providing required autonomy to the cooperatives by enacting MSCS Act, 2002, replacing the MSCS Act, 1984. It aims at providing functional autonomy and democracy applicable to National level cooperative societies/federations and other Multi-State Cooperative societies. It is expected that it will work as a Model Act for reforms in State Cooperative Laws.
• The NCDC (Amendment) Act, 2002: The NCDC Act, 1962 has been amended vide NCDC (Amendment) Act, 2002 expanding the mandate of NCDC to include food stuff, industrial goods, livestock and services in the programmes and activities in addition to the existing programmes. The definition of agriculture produce has been amended to cover wider range of activities by including edible and non-edible oilseeds cattle feed, produce of horticulture and animal husbandry, forestry, poultry, farming, pisiculture and other allied activities to agriculture. Vide the amended Act, definition of industrial goods and livestock have been elaborated covering the products of allied industries in the rural areas and includes any handicrafts or rural crafts. The livestock includes all animals to be raised for milk, meat, fleece, skin, wool and other by-products. NCDC will be able to provide loan directly to the cooperative without State/Central Government guarantee on furnishing of security to the satisfaction of the NCDC. So far activities concerning water conservation, animal care/health, disease prevention, agricultural insurance an agricultural credit, rural sanitation/drainage/sewage have been made as notified services.
• Amendment to the Constitution in Respect of Cooperatives: In spite of the felt need for amendment in the State Cooperative Societies Act, the pace of reforms in Cooperative legislations by the States is not encouraging. Therefore, to ensure the democratic, autonomous and professional functioning of cooperatives, it has been decided to initiate a proposal for amendment to the Constitution for the purpose. This decision has been taken after careful deliberations with the States in a conference of State Cooperative Ministers held on 7 December 2004. The proposed amendment to the Constitution is purported to address the key issues for empowerment of cooperatives through their voluntary formation, autonomous functioning, democratic control and professional management. The Constitution One Hundred and Sixth Amendment Bill 2006 has been introduced in the Lok Sabha on 22 May 2006.
• Constitution of High Powered Committee: To review the achievements of Cooperative movement during the last 100 years and challenges before it, and to suggest ways and means to face them and to give a new direction to the movement, a high-powered committee has been constituted with following Terms of Reference:
1. To review the achievements of the cooperatives during the last 100 years.
2. To identify the challenges being faced by the cooperative sector and to suggest measures to address them to enable the movement to keep pace with the changing socio-economic environment.
3. To suggest an appropriate policy and legislative framework and changes required in the cooperative legislation in the country with a view to ensure the democratic, autonomous and professional functioning of cooperatives.
• Revamping of Cooperative Credit Structure: In August 2004, Government of India constituted a Task Force under the Chairmanship of Prof. A Vaidyanathan for suggesting measures for revival of cooperative credit institutions. The Task Force has submitted its Report in respect of short-term cooperative credit structure and recommended a financial package of Rs 14,839 crore for the short-term rural credit cooperative institutions. The package covers accumulated losses, unpaid invoke guarantees, receivables from State Governments, return of share capital to State Governments, Human Resources Development, conduct of special audit, computerisation, implementation costs, etc.
Based on the consensus arrived at with State Governments and other stakeholders on the recommendations made by the Task Force, the Government has approved the package for revival of the Short-term Rural Cooperative Credit Structure involving financial assistance of Rs. 13,596 crore.
The provision of financial assistance under the package has been linked to reforms in the cooperative sector. The same Task Force has been assigned the mandate for suggesting revival package for the Long-Term Cooperative Credit Structure. The Government will initiate steps for reviving Long-Term Cooperative Credit Structure after reviving the report of the Task Fore in this regard.
Animal Husbandry
Animal Husbandry and Dairy Development plays a prominent role in the rural economy in supplementing the income of rural households, particularly, the landless and small and marginal farmers.
It also provides subsidiary occupation in semi-urban areas and more so for people living in hilly, tribal and drought prone areas where crop output may not sustain the family. Animal husbandry output constitutes about 30 per cent of the country's agricultural output. According to Central Statistical Organisation (CSO), the value of output from livestock and fisheries sectors is about 37.7 per cent of total agriculture and allied sectors.
India is endowed with the largest livestock population in the world. It accounts for 57 per cent of the world's buffalo population and 14 per cent of the cattle population. According to Livestock Census (2003), the country has about 18.5 crore cattle and 9.8 crore buffaloes.
• Contribution of Livestock Sector to Food Basket: The contribution of livestock sector to the food basket in the form of milk, eggs, and meat has been immense in fulfilling the animal protein requirement of ever-growing human population. The present availability of human protein in an Indian diet is 10 gm per person per day, as against a world average of 25 gm. However, keeping in view the growing population, the animal protein availability has to increase at least two-fold for maintaining the nutritional level of growing children and nursing mothers in India.
* Milk Production: During the past five-year plans, several measures have been initiated by the Government to increase the productivity of livestock, which has resulted in significant increase in milk production to the level of 91 million tonnes in the year 2004-05. India has become the largest producer of milk in the world.
* Egg Production: The wool production in the country was 44.56 million kg during 2004-05.
* Other Livestock Products: Livestock sector not only provides essential protein and nutritious human diet through milk, eggs, meat, etc., but also plays an important role in utilisation of non-edible agricultural by-products. Livestock also provides raw material/by-products such as hides and skins, blood, bone, fat, etc.
* Livestock Insurance: The Cabinet Committee on Economic Affairs has approved the 'Livestock Insurance Scheme' on 21 February 2006 for its implementation during 2005-06 and 200-07 of the Tenth Plan on pilot basis in 100 select districts across the country. The scheme has been formulated with the twin objective of providing protection mechanism to the farmers and cattle rearers against any eventual loss of their animals and to demonstrate the benefit of the scheme to the people and popularise it with the ultimate goal of attaining qualitative improvement in livestock and their products. The scheme will cover crossbred and high yielding cattle and buffaloes during the pilot stage. The scheme envisages 50 per cent subsidy of the insurance premium. The entire expenditure on subsidised insurance premium, payment of honorarium to the veterinary practitioners and funds for publicity of the scheme will be borne by the Central Government.
The Insurance subsidy in the pilot scheme will be provided for insurance of an amount for a maximum period of three years and will be limited to two animals per beneficiary. No subsidy on insurance will be provided for the second time/extension of insurance of same animal. The scheme is to be implemented through the State Implementing Agencies (SIA) implementing the National Project on Cattle and Buffalo Breeding Programme (NPCBB) and through State Animal Husbandry Departments in those states where SIAs do not exist.
• Cattle And Buffalo Development: India possesses 27 acknowledged indigenous breeds of cattle and seven breeds of buffaloes. Various Central and Centrally sponsored schemes are being implemented for genetic improvement of cattle and buffalo with a view to enhance the per capita availability of consumption of milk through increased milk production. Efforts are also made to protect and preserve the indigenous cattle and buffalo in their native tract, which are facing threat of extinction. The elite animals are selected and registered on the basis of their performance for production of superior pedigree bulls, bull-mothers, frozen semen and frozen embryos for future breeding improvements.
The National Project for Cattle and Buffalo Breeding envisages 100 per cent grant-in-aid to implementing agencies. The Project will also promote about 14,000 private artificial insemination (AI) practitioners and buildup an annual frozen semen production capacity of 66 million doses. Since inception, 26 States have been assisted with Rs 202.52 crore upto 31 March 2005 for participating in the Project.
A Central Herd Registration Scheme for identification and location of superior germ plasm of cattle and buffaloes, propagation of superior germ stock, regulating the sale and purchase, help in formation of breeders' society and to meet requirement of superior bulls in different parts of the country is also being implemented. The Government has established Central Herd Registration Unit in four breeding tracts, i.e., Rohtak, Ahmedabad, Ongole, Ajmer. A total of 92 milk-recording centres are functioning to register these breeds of cattle, viz., Gir, Kankrej, Hariana and Ongole and in buffalo Jaffrabadi, Mehsani, Murrah and Surti. During 2005-06, 13549 animals were primary registered.
The seven Central Cattle Breeding Farms at Suratgarh (Rajasthan), Chiplima and Sunabeda (Orissa), Dhamrod (Gujarat), Hessarghatta (Karnataka), Alamadi (Tamil Nadu) and Andeshnagar (Uttar Pradesh) are engaged in scientific breeding programmes of cattle and buffaloes and production of high pedigreed bulls for National Project for Cattle and Buffalo Breeding Programme besides providing training to farmers and breeders. During 2004-05, these farms produced 313 bull calves and supplied 252 high pedigreed bull calves for use under Artificial Insemination Programme in various parts of the country. The Central Frozen Semen Production and Training Institute, Hessarghatta (Karnataka) produced 13.43 lakh doses and supplied 14.74 lakh doses of frozen semen of high pedigreed Sahiwal, Red Singhi, Holstein Friesian, Jersey, crossbred and Murrah buffalo to different States for their AI programmes.
• Poultry Development: The value of output from poultry sector is nearly 20000 crore and it provides direct or indirect employment to over 2 million people. About 25 per cent of the total egg production in the country comes from desi poultry, which is unorganised rural backyard system. A target for achieving production of over 52 billion eggs by 2011-12, at a growth rate of 4.3 per cent has been visualised by the Government of India.
Poultry sector, besides employment generation and subsidiary income increase, provides nutritional security especially to the rural poor. Further, landless labourers derive more than 50 per cent of their income from livestock especially poultry.
Central Poultry Development Organisations have been playing a pivotal role in the implementation of the policies of the Government with respect to poultry as a tool for alleviating nutritional hunger and palliating the impecuniosities of the resource-poor farmers especially the women.
The mandate of the Central poultry Development Organisation has been specifically revised, by restructuring all poultry units of this Department to focus on improved indigenous birds, which lay on an average 180-200 eggs per annum and have a vastly improved FCR ratio in terms of feed consumption and weight gain. The Central Poultry Development Organisations have been entrusted with the responsibility of producing excellent germplasm in the form of day-old chicks and hatching eggs of these varieties like Nirbheek, Hitkari, Vanaraja, Shyama Cari, CHABRO, etc.
Besides, these Organisations are imparting training to approximately 1200-1500 farmers every year both in-situ and ex-situ. These Organisations are also playing a crucial role in analysing feed samples.
These Organisations, besides the activities stated above, scaling-up of diversification of other avian species like Ducks/Turkeys/Guinea fowl/Japanese Quail, upgradation of Training Unit into International Tropical Avian Management Institute in which private-public partnership is envisaged. Presently these Organisations are also supporting and hand-holding the Centrally sponsored Scheme, ''Assistance to State Poultry Farms''.
The Random Sample Poultry Performance Testing Centre (RSPPTC), Gurgaon is entrusted with the responsibility of testing the performance of layer and broiler varieties. This Centre conducts one layer test for the period from 0-72 weeks of age wherein the production parameters of the laying birds received from different participants comprising of private and public sector agencies are tested. At the end of the test the data are analysed and the report indicating the relative performance of these entrants is published. Accordingly two broiler tests are conducted every year from 0-8 weeks of age and the results are published giving full information about growth rate, feed efficiency and margin of profit from each entrant. The report is published for the utilisation of the poultry industry in general, and the breeder participants in particular. This Centre gives valuable information relating to the different genetic stock available in the country.
A new Centrally sponsored scheme called Assistance to State Poultry Farms is being implemented during the Tenth Plan where one time assistance is provided to suitably strengthen the farms in terms of hatching, brooding and rearing of the birds with provision for feed mill and their quality monitoring and in-house disease diagnostic facilities. During the first three years of the Tenth Plan, Rs 29.75 crore has been released for assisting around 60 farms, some partially.
A new scheme "Dairy/Poultry Venture Capital Fund" has been launched during the year 2004-05, wherein there is a provision to grant subsidy on interest payment. Components like establishment of poultry breeding farm with low input technology birds and also for Ducks/Turkey/Guinea Fowl/Quail/Emu/Ostrich, establishment of feed godown, feed mill, feed analytical laboratory, marketing of poultry products (specialised transport vehicles, cool room storage facilities and retention sheds for birds, etc.), Egg grading, packing and storage for export capacity, Retail poultry dressing unit (300 birds per day), Egg/broiler carts for sale of poultry products and Central grower unit are considered for financing under this scheme.
The nodal agency for the implementation of this scheme is NABARD through nationalised commercial banks. In 2005-06, a total of 49 poultry units involving 2.17 crore was approved.
• Sheep Development: According to Livestock Census 2003, there are about 61.47 million sheep and 124.36 million goats in the country. About five million households in the country are engaged in the rearing of small ruminants (sheep, goats and rabbits) and other allied activities. The production of wool was 44.50 million kg during 2004-05. The expected wool production during 2005-06 stands at 50.0 million kg.
The Central Sheep Breeding Farm, Hissar is producing acclimatized exotic/cross bred superior quality rams. The farm has supplied 1370 rams and 50 Rambouillet ewes during 2004-05 to different states. During 2005-06, the farm has supplied 854 rams and 30 crossbred ewes. The target for net production and sale of rams has been kept at 900.
• Conservation of Threatend Breeds: Population of some of the pure-bred small ruminants, equines, pigs and pack animals has come down considerably and such breeds have come to the category of threatened breeds in the country. The farms or the farmers unit in their respective breeding tract are to be established with cent per cent Central assistance for breeds of these animals wherein their population is less than 10,000 with active participation of State Governments and NGOs, etc.
A new Centrally Sponsored Scheme for conservation of such threatened breeds has been started during Tenth Five-Year plan with a budget outlay of Rs 1500 lakh. During 2005-06, an amount of Rs 406.92 lakh has been released for conservation of Terrasa Goat (Rs 20.00 lakh) in Andaman & Nicobar Islands, Bhutia Pony (Rs 44.39 lakh) in Arunachal Pradesh, Yak (Rs 13.00 lakh) in Himachal Pradesh, Zanskari Horse (Rs 29.96 lakh) and Double Humped Camel (Rs 29.85) in Jammu & Kashmir, Madgyal Sheep (Rs 64.50 lakh) in Maharashtra, Jamunapari Goat (Rs 59.87 lakh) in Uttar Pradesh, Gray Sindhi Horse (Rs 19.70 lakh) in Punjab, and Ghoongro pig (Rs 31.15 lakh) Bonpala Sheep (Rs 30.00 lakh) and Garole Sheep (Rs 32.25 lakh) & Black Bengal Goat (Rs 32.25 lakh) in West Bengal. There is a budget provision of Rs 400 lakh under the scheme during 2006-07.
• Meat Production/Processing and Export: A Centrally Sponsored Scheme ''Assistance to States for modernisation/improvement of abattoirs and establishment of carcass utilisation centres and primary hide flaying units'' was implemented. The objectives of the scheme were to provide wholesome and hygienic meat, gainful utilisation of animal by-products, prevention of environmental pollution and cruelty to animals. Under the scheme, financial assistance of Rs. 14.15 crore was provided for incomplete projects to States of Arunachal Pradesh, Maharashtra, Rajasthan, Andhra Pradesh, Tamil Nadu, Uttar Pradesh, Nagaland, Kerala, Tripura and Union Territory of Chandigarh during 2004-05. The scheme has now been discontinued as per Zero Based Budgeting (ZBB) decision.
• Piggery Development: There are more than 128 lakh pigs in the country of which approximately 14.5 per cent are graded and exotic variety. There are about 158 pig breeding farms in the country run by the State Governments/Union Territories. Exotic breeds like Large White Yorkshire, Hampshire and Landrace are maintained at these farms.
A Centrally-sponsored Scheme, namely, Assistance to States for Integrated Piggery Development, was implemented for strengthening the pig breeding farms in States during Ninth Plan. During the period, an amount of Rs 1521.87 lakh was released for strengthening the pig breeding farms in various States. The scheme was discontinued at the start of the Tenth Plan. A new scheme on piggery development viz. 'Integrated Piggery Development' has been initiated, on the basis of evaluation of the earlier scheme by NABARD, during 2006-07. Integrated piggery development scheme will be part of a new restructured Centrally sponsored macro-management scheme viz. National Project for Improvement of Poultry and Small Animals.
• Feed and Fodder Development: For expression of the production potentiality of our livestock, availability of nutritious feed and fodder is essential. To facilitate fodder availability, seven regional stations have been established in different agro-climatic zones for production of high yielding varieties of fodder/fodder seed and transfer of scientific fodder production technology through training of field officers, demonstration of latest fodder agronomy practices and organisation of farmer training/fair. During 2004-05, these stations produced 199.54 MT of fodder seeds and conducted 3862 field demonstrations of new fodder varieties.
A Central fodder seed production farm located at Hessarghatta (Karnataka) produced 76 MT seeds of different varieties of fodder grasses/legumes seeds during 2005-06 and conducted 540 field demonstrations of new fodder varieties. A Central mini kit demonstration programme of fodder crops is under implementation for popularising high yielding fodder varieties on a large-scale. During 2005-06, 3.54 lakh minikits were allotted to the States for distribution to farmers free of cost. Besides, a Centrally Sponsored Fodder Development Scheme is being implemented from 2005-06 for establishment of Fodder Block making units, Grassland development with grass reserves, fodder seed production and biotechnology research. During 2005-06, financial assistance of Rs 1162.39 lakh has been provided to 15 States.
Scope for Prototype Experiments
Precision agriculture, newly emerging agricultural management concept, embodies the convergence of biotechnologies & other agricultural technologies with space and informatics. With a goal to achieve the quantum jump in agricultural productivity, reduced cost of cultivation, diversified and resilient agricultural systems, the precision agriculture plays catalytic role in order to achieve a common ground between environmental and economic goals. It is basically designed to optimize agricultural inputs viz., fertilizers, pesticides, water etc, in tune with micro-level/field requirements. Optimization is focused on increased yields, reduced cost of cultivation and to minimized environmental impacts through location-specific management.
The success stories pertaining to Precision Agriculture have mainly drawn from the developed countries; wherein Agriculture is characterized by highly mechanized and automated systems, and is driven by market forces and has been professionally managed enterprise. Taking into account the predominance of fragmented land holdings, heterogeneity of crops and livestock and concept of farm families in the rural conditions, the model of Precision Agriculture representing the typical Indian Agricultural scenario is yet to evolve. While the ecological integrity of farming systems is an imperative need, it is equally important to extend the access of information and market to the small and marginalized farmers. The Precision Agriculture model for India while addressing these issues should provides an innovative route for sustainable agriculture in globalize and liberalized economy.
Technology Elements
Recent advances in technology for variable rate technology (VRT), with concurrent advances in remote sensing, GIS & GPS, and the developments taken place in crop simulation modeling, have provided enough opportunities and scope to take-up proto-type Precision Agriculture experiments. The VRT applies production inputs at rates appropriate to soil and crop conditions within micro-level field conditions. The VRT systems have been demonstrated for several materials, including herbicides, fertilizers, insecticides and seeds.
Role of space technologies becomes more crucial in order to address the spatial variability of soils and crops across the various scales of mapping. The space technology inputs also capture the vulnerability and dynamism of agricultural systems. The developments in space-borne imaging sensors, particularly their spatial, spectral and temporal resolutions are well characterized to capture these features. While high spatial resolution images enable mapping and monitoring the structural attributes of agro-ecosystems, high spectral resolution or hyper-spectral imaging addresses their functionalities. The high temporal resolution captures the dynamisms of agro-ecosystems.
The use of remote sensing, GIS and GPS for crop monitoring, condition assessment and yield modeling has already been well established. Crop simulation models (CSMs) provide potential production under the different scenario of constraints, including weather, soils, crops, cultural practices etc. The conjunctive use of VTR, remote sensing, GIS, GPS and CSMs provides technological framework for Precision Agriculture.
Components and Framework
Precision agriculture, basically, is characterized by reduced cost of cultivation (through optimization of inputs), improved control and increased resource use efficiency, through appropriate applications of Management Information System (MIS). While the reduced cost of cultivation is achieved through optimization of agricultural inputs taking into account economic push and environmental pull related factors, the control mechanisms are introduced by the help of VRT systems, model outputs and conjunctive use of remote sensing, GIS and GPS. The MIS comprises Decision Support Systems (DSS), collateral inputs and associated GIS databases on crops, soils & weather. Dynamic remote sensing inputs on in-season crop conditions, crop simulation model outputs on the potential production under the different constraining scenario, and the networks of labs and farms, form the essential ingredients of MIS. Increased efficiency does not employ only efficient resource use but also reflects in terms of less waste generation, improved gross margin and reduced environmental impact.
Precision Agriculture thus calls for the use of appropriate tools and techniques, within a set of the framework as mentioned, to address the micro-level variations between crop requirements and applications of agricultural inputs. Inevitably, it integrates a significant amount of data from different sources; information and knowledge about the crops, soils, ecology and economy but higher levels of control require a more sophisticated systems approach. It is not simply the ability to apply treatments that are varied at the local level but the ability to precisely monitor and assess the agricultural systems at a local and farm level. This is essentially to have sufficient understanding of the processes involved to be able to apply the inputs in such a way as to be able to achieve a particular goal not necessarily maximum yield but to maximize financial advantage while operating within environmental constraints.
Case Studies
Most of the case studies, as reported, are mainly from US and European countries representing the agricultural systems, quite different from that of the India’s typical agricultural scenario. Unless few success stories are produced taking into account the different farming practices and cropping systems available in India, Precision Agriculture practices cannot be replicated.
Models of Precision Agriculture drawn from US & UK A framework of the precision agriculture system, being followed in US & UK, is depicted in Figure above. At the core of the system is a GIS database, which are knowledge based and form the part of decision-making. The GIS databases include the following layers: field topography, soil types, surface drainage, sub-surface drainage, soil testing results, rainfall, irrigation, actual chemical application rates, and or even more frequently. The GIS enables a study of the relationship between these layers of information to determine cause and effect and to base decisions upon this knowledge.
Not all systems will necessarily contain all of the components shown. As variable rate technology develops, other system components may be included. The central component of variable rate application equipment is the computer/controller. This device receives information from several sources, which will in turn be used to control the application equipment. The controller may receive information from the application equipment and other sensors to maintain a database on the actual application rate as a function of field position Each field operations are governed by VRT systems. Tillage depth varies according to field location; for example, sub-soiling depth is dependent on field location. Seeding rates varies according to field location, which depends on factors such as topography and soil type.
Fertilizer application rates vary in relationship to factors such as soil type and the results from either real time or pre-application testing. Application of insecticides is dependent on insect location from either scouting reports or from aerial imaging. In like manner, the application of all inputs to the crop production process varies with field location. There are two methodologies for implementing precision, or site-specific, farming. Each method has unique benefits and can even be used in a complementary, or combined, fashion:
The first method, Map-based, includes the following steps: grid sampling a field, performing laboratory analyses of the soil samples, generating a site-specific map of the properties and finally using this map to control a variable-rate applicator. During the sampling and application steps, a positioning system, usually DGPS (Differential Global Positioning System) is used to identify the current location in the field.
The second method, Sensor-based, utilizes real-time sensors and feedback control to measure the desired properties on-the-go, usually soil properties or crop characteristics, and immediately use this signal to control the variable-rate applicator
Remote Sensing technologies are used for in-season crop condition assessment including the crop moisture or nutrient stress and other conditions—indicating the need for irrigation and fertilizers or insecticides. All of these data give farmers more opportunities to tailor their management decisions to their farm’s needs. These inputs help the farmers to locate and analyze the stressed part of the field with reduced sampling in map-based technique.
The success stories pertaining to Precision Agriculture have mainly drawn from the developed countries; wherein Agriculture is characterized by highly mechanized and automated systems, and is driven by market forces and has been professionally managed enterprise. Taking into account the predominance of fragmented land holdings, heterogeneity of crops and livestock and concept of farm families in the rural conditions, the model of Precision Agriculture representing the typical Indian Agricultural scenario is yet to evolve. While the ecological integrity of farming systems is an imperative need, it is equally important to extend the access of information and market to the small and marginalized farmers. The Precision Agriculture model for India while addressing these issues should provides an innovative route for sustainable agriculture in globalize and liberalized economy.
Technology Elements
Recent advances in technology for variable rate technology (VRT), with concurrent advances in remote sensing, GIS & GPS, and the developments taken place in crop simulation modeling, have provided enough opportunities and scope to take-up proto-type Precision Agriculture experiments. The VRT applies production inputs at rates appropriate to soil and crop conditions within micro-level field conditions. The VRT systems have been demonstrated for several materials, including herbicides, fertilizers, insecticides and seeds.
Role of space technologies becomes more crucial in order to address the spatial variability of soils and crops across the various scales of mapping. The space technology inputs also capture the vulnerability and dynamism of agricultural systems. The developments in space-borne imaging sensors, particularly their spatial, spectral and temporal resolutions are well characterized to capture these features. While high spatial resolution images enable mapping and monitoring the structural attributes of agro-ecosystems, high spectral resolution or hyper-spectral imaging addresses their functionalities. The high temporal resolution captures the dynamisms of agro-ecosystems.
The use of remote sensing, GIS and GPS for crop monitoring, condition assessment and yield modeling has already been well established. Crop simulation models (CSMs) provide potential production under the different scenario of constraints, including weather, soils, crops, cultural practices etc. The conjunctive use of VTR, remote sensing, GIS, GPS and CSMs provides technological framework for Precision Agriculture.
Components and Framework
Precision agriculture, basically, is characterized by reduced cost of cultivation (through optimization of inputs), improved control and increased resource use efficiency, through appropriate applications of Management Information System (MIS). While the reduced cost of cultivation is achieved through optimization of agricultural inputs taking into account economic push and environmental pull related factors, the control mechanisms are introduced by the help of VRT systems, model outputs and conjunctive use of remote sensing, GIS and GPS. The MIS comprises Decision Support Systems (DSS), collateral inputs and associated GIS databases on crops, soils & weather. Dynamic remote sensing inputs on in-season crop conditions, crop simulation model outputs on the potential production under the different constraining scenario, and the networks of labs and farms, form the essential ingredients of MIS. Increased efficiency does not employ only efficient resource use but also reflects in terms of less waste generation, improved gross margin and reduced environmental impact.
Precision Agriculture thus calls for the use of appropriate tools and techniques, within a set of the framework as mentioned, to address the micro-level variations between crop requirements and applications of agricultural inputs. Inevitably, it integrates a significant amount of data from different sources; information and knowledge about the crops, soils, ecology and economy but higher levels of control require a more sophisticated systems approach. It is not simply the ability to apply treatments that are varied at the local level but the ability to precisely monitor and assess the agricultural systems at a local and farm level. This is essentially to have sufficient understanding of the processes involved to be able to apply the inputs in such a way as to be able to achieve a particular goal not necessarily maximum yield but to maximize financial advantage while operating within environmental constraints.
Case Studies
Most of the case studies, as reported, are mainly from US and European countries representing the agricultural systems, quite different from that of the India’s typical agricultural scenario. Unless few success stories are produced taking into account the different farming practices and cropping systems available in India, Precision Agriculture practices cannot be replicated.
Models of Precision Agriculture drawn from US & UK A framework of the precision agriculture system, being followed in US & UK, is depicted in Figure above. At the core of the system is a GIS database, which are knowledge based and form the part of decision-making. The GIS databases include the following layers: field topography, soil types, surface drainage, sub-surface drainage, soil testing results, rainfall, irrigation, actual chemical application rates, and or even more frequently. The GIS enables a study of the relationship between these layers of information to determine cause and effect and to base decisions upon this knowledge.
Not all systems will necessarily contain all of the components shown. As variable rate technology develops, other system components may be included. The central component of variable rate application equipment is the computer/controller. This device receives information from several sources, which will in turn be used to control the application equipment. The controller may receive information from the application equipment and other sensors to maintain a database on the actual application rate as a function of field position Each field operations are governed by VRT systems. Tillage depth varies according to field location; for example, sub-soiling depth is dependent on field location. Seeding rates varies according to field location, which depends on factors such as topography and soil type.
Fertilizer application rates vary in relationship to factors such as soil type and the results from either real time or pre-application testing. Application of insecticides is dependent on insect location from either scouting reports or from aerial imaging. In like manner, the application of all inputs to the crop production process varies with field location. There are two methodologies for implementing precision, or site-specific, farming. Each method has unique benefits and can even be used in a complementary, or combined, fashion:
The first method, Map-based, includes the following steps: grid sampling a field, performing laboratory analyses of the soil samples, generating a site-specific map of the properties and finally using this map to control a variable-rate applicator. During the sampling and application steps, a positioning system, usually DGPS (Differential Global Positioning System) is used to identify the current location in the field.
The second method, Sensor-based, utilizes real-time sensors and feedback control to measure the desired properties on-the-go, usually soil properties or crop characteristics, and immediately use this signal to control the variable-rate applicator
Remote Sensing technologies are used for in-season crop condition assessment including the crop moisture or nutrient stress and other conditions—indicating the need for irrigation and fertilizers or insecticides. All of these data give farmers more opportunities to tailor their management decisions to their farm’s needs. These inputs help the farmers to locate and analyze the stressed part of the field with reduced sampling in map-based technique.
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