The National Co-operative Development Corporation Act, 1962

The National Co-operative Development Corporation Act, 1962, is a key legislation in India that provides for the establishment and regulation of the National Co-operative Development Corporation (NCDC). This Act aims to promote the production, processing, marketing, storage, export, and import of agricultural produce, foodstuffs, and other related commodities through cooperative principles. This article provides a summary of the Act, highlighting its background, key provisions, and penalties.

1. Act Background and Ministry:

• Background: The National Co-operative Development Corporation Act, 1962, was enacted to provide for the establishment and regulation of a corporation to plan and promote programs for the production, processing, marketing, storage, export, and import of agricultural produce, foodstuffs, and other related commodities on cooperative principles. It reflects the government’s commitment to supporting cooperative societies for agricultural and rural development.

• Ministry: The Act is primarily administered by the Ministry of Agriculture and Farmers Welfare, Government of India.

2. Enactment Date, Number of Chapters, Number of Sections:

• Enactment Date: The Act was enacted on August 31, 1962.

• Number of Chapters: The Act is divided into twelve chapters.

• Number of Sections: The Act contains 24 sections, with some sections having sub-sections and amendments.

3. Act Governed By:

The Act is primarily governed by the Central Government, which has the power to appoint the members of the Corporation and the General Council, and to make rules and regulations for carrying out the purposes of the Act. The Board of Management of the Corporation is responsible for the day-to-day functioning of the NCDC.

4. On Whom It Is Applicable:

The Act applies to:

• Co-operative Societies: Societies registered or deemed to be registered under the Co-operative Societies Act, 1912, or under any other law in force.

• National Co-operative Development Corporation (NCDC): The corporation established under this Act.

• State Governments: State governments receiving financial assistance from the NCDC.

• Members of the Corporation: Individuals appointed to the Board and General Council of the NCDC.

• Managing Director, Officers, and Employees: Individuals employed by the NCDC.

5. Penalties/Punishments:

The Act prescribes penalties for violations of its provisions, including:

• Fines: The Act does not specify any specific penalties for contravention of its provisions, but it empowers the Board to make regulations and the Central Government to make rules, which may include penalties for non-compliance.

6. Important Pointers:

• Establishment of NCDC: The Act establishes the National Co-operative Development Corporation (NCDC) as a body corporate.

• Functions of NCDC: The NCDC’s functions include planning and promoting programs for agricultural produce, foodstuffs, livestock, and other related commodities through cooperative societies.

• Financial Assistance: The NCDC provides loans, grants, and subsidies to State Governments for financing cooperative societies.

• National Co-operative Development Fund: The NCDC maintains a fund to which all money received by the corporation is credited.

• Management of the Corporation: The Corporation is managed by a Board of Management and a General Council.

• Power to Make Rules: The Central Government has the power to make rules for carrying out the purposes of the Act.

• Power to Make Regulations: The Corporation has the power to make regulations for the conduct of its business.

• Annual Report: The Corporation is required to submit an annual report to the Central Government.

• Accounts and Audit: The accounts of the Corporation are audited by the Comptroller and Auditor-General of India.

• Power to Borrow Money: The Corporation is empowered to borrow money for its functions.

• Grants, Donations, etc.: The Corporation may receive grants, donations, and other benefits.

7. Download Act Copy: