LexThe Kerala Dairy Farmers' Welfare Fund Act 2007
Kerala · state statute
Open in Lexace · Ask the AI about this act[ Translation in English of “ 2007- ”ലല കകരള കകര കർഷക കകമനനധന ആകക published
under the authority of the Governor.]
ACT 7 OF 2007
THE KERALA DAIRY FARMERS' WELFARE FUND ACT, 2007*
1[An Act to provide for the constitution of a Fund to grant relief to the dairy
farmers engaged in cattle rearing in the State of Kerala, to ensure their welfare, to pay
pension to them, to implement insurance schemes for them and family and to implement
other financial assistances including schemes for the distribution of feed, medicine etc.
for their cattle and for matters connected therewith or incidental thereto.]
2[Preamble.—WHEREAS, it is expedient to provide for the constitution of a Fund to
grant relief to the dairy farmers engaged in cattle rearing in the State of Kerala, to ensure
their welfare, to pay pension to them, to implement insurance schemes for them and their
family and to implement other financial assistances including schemes for the distribution
of feed, medicine etc. for their cattle and for matters connected therewith or incidental
thereto;]
BE it enacted in the Fifty-eighth Year of the Republic of India as follows:—
1. S hort title and commencement.— (1) This Act may be called the Kerala Dairy
Farmers' Welfare Fund Act, 2007.
(2) It shall be deemed to have come into force on the 24th day of August, 2005.
2. Definitions.— In this Act, unless the context otherwise requires,—
3[(a) ‘Anand Pattern Milk Producers Co-operative Society’ means those
Milk Producers Co-operative Societies in the name Anand Pattern Co-operative Societies
which are under the administrative control of the Dairy Development Department and
registered and functioning in the State after 1st January, 1980 as per the Kerala Co-
operative Societies Act, 1969 (21 of 1969) and the rules made thereunder;]
4[(aa)]"Board" means the Kerala Dairy Farmers' Welfare Fund Board
*Received the assent of Governor on the 13th day of April, 2007 and published in the Kerala Gazette
Extraordinary No. 703 dated 13th April, 2007.
1 Substituted by Act 8 of 2024 (w.e.f 07-06-2024).
2 Substituted by Act 8 of 2024 (w.e.f 07-06-2024).
3 Inserted by Act 8 of 2024 ( w.e.f. 07-06-2024).
4 Re-lettered by Act 8 of 2024 (w.e.f. 07-06-2024).
constituted under section 8;
(b) "Chief Executive Officer" means the Chief Executive Officer appointed
under sub-section (1) of section 11;
(c) "contribution" means the sum of money payable to the Fund under
section 7;
(d) "Dairy Farmer" means a person who owns or rear one or more cows or she
buffalos and 1[giving milk] in the State in a milk co-operative society functioning in his
dwelling place or in a milk society nearby the area of his dwelling place, due to the
reason that no milk Co-operative society is functioning in such place;
(e) "family" means, —
(i) wife or husband of the Dairy farmer, their minor or mentally retarded or
physically challenged children and unmarried daughters;
(ii) father and mother who are dependant upon the Dairy farmer;
(f) "Fund" means the Dairy Farmers' Welfare Fund established under
section 3;
(g) "Member" means a member of the Fund;
(h) "Milma" means the Kerala Co-operative Milk Marketing Federation;
(i) "Prescribed" means prescribed by rules made under this Act;
(j) "Regional Union" means the apex society functioning in the milk co-
operative sector;
(k) "Schedule" means the Schedule to this Act;
(l) "Scheme" means the Kerala Dairy Farmers' Welfare Scheme framed
under this Act;
(m) "Society" means Primary Milk Co-operative society registered or
deemed to be registered under the Kerala Co-operative Societies Act, 1969 (21 of 1969)
and functioning under the Dairy Development Department;
1 Substituted by Act 8 of 2024 (w.e.f. 07-06-2024).
2 [(ma) ‘Traditional Primary Milk Co-operative Society’ means the Primary
Milk Co-operative Societies such as Dairy Co-operative Societies, Milk Producers Co-
operative Societies, under the administrative control of the Dairy Development
Department, which were registered and functioning prior to the commencement of the
Kerala Co-operative Societies Act, 1969 (21 of 1969) as per the erstwhile Co-operative
laws in Travancore, Kochi, Travancore-Kochi and Malabar areas and those which were
registered before the 1 st January, 1980 and functioning after the commencement of the
Kerala Co-operative Societies Act, 1969 as per the said Act and rules made thereunder;]
(n) "Year" means the financial year;
3. Dairy Farmers' Welfare Fund Scheme.—(1) The Government shall, by notification
in the Gazette, frame a scheme to be called the "Kerala Dairy Farmers' Welfare Fund
Scheme" for the establishment of a Fund under this Act for the welfare of the Dairy
farmers in the State and there shall be established a fund as soon as possible, in accordance
with the provisions of this Act and Scheme.
(2) There shall be credited to the Fund,—
(i) contribution specified under section 7;
(ii) receipts from the interest of the reserve Fund;
(iii) 2[contribution or] grants and loans or advances made by the Government of
India, State Government or any Institutions;
3[(iv) the receipts as determined by the Government from those such as cattle
feed manufacturing establishments, milk product manufacturers, private dairy
owners and co-operative dairy establishments, veterinary medicine
manufacturers and distributors and cattle semen producers and distributors;]
(v) amount under any item raised by the decision of the Board from other sources to
augment the resources of the Board;
(vi) fees or fine levied under the scheme;
(vii) any other amount, which, under the provisions of the scheme shall be
credited to the Fund;
(3) The Fund shall vest in the Board, constituted under section 8 and be
administered as provided under sub-section (7) of the said section in this behalf by the
2 Inserted by Act 8 of 2024 (w.e.f. 07-06-2024).
2 Inserted by Act 5 of 2010 ( w.e.f 24-08-2005).
3 Substituted by Act 8 of 2024 (w.e.f. 07-06-2024).
Board;
(4) Fund may be utilised for all or any of the following purposes, namely:—
(a) to give pension to a dairy farmer who is a member of the Scheme and
1[has measured a minimum of five hundred litres of milk per year at least for five
years in a Society] and in such person becomes incapable of being engaged in the
rearing of cattle due to disablement. 2[* * * * *]
3[(b) to give pension to the member who have measured a minimum of five
hundred litres of milk per year for at least five years in a Society after being a
member of the Welfare Fund and have completed sixty years of age:
Provided that any person who became a member of the Welfare Fund before the date
of publication of the Kerala Diary Farmers’ Welfare Fund Act, 2007 (7 of 2007) shall be
entitled to pension if he being a member in a Society has measured a minimum of five
hundred litres of milk per year in a society for 4[at least five years] and has completed sixty
years of age];
(c) for payment of family pension and loans;
(d) for payment of financial assistance to a member who suffers permanent
disablement;
5[(e) for the implementation of schemes for the distribution of medicines,
feed, feed supplements and instruments relating to dairy farming etc., which are
necessary for the cattle of dairy farmers related to dairy farming;]
6[(f)] any other purpose specified in the scheme;
(5) Fund may be invested in a profitable manner with the previous sanction of
the Government.
(6) Subject to the provisions of this Act, the scheme framed under sub-section (1)
may provide for the matters specified in sub-section (4) and in the schedule.
7[(7) Notwithstanding anything contained in sub-section (4), if a member dies
1Substituted by Act 5 of 2010 ( w.e.f 24-08-2005).
2 Omitted by Act 5 of 2010 ( w.e.f 24-08-2005).
3 Substituted by Act 5 of 2010 ( w.e.f 24-08-2005).
4Substituted by Act 16 of 2013 (w.e.f 08-03-2013).
5 Inserted by Act 8 of 2024 ( w.e.f. 07-06-2024).
6 Re-lettered by Act 8 of 2024 ( w.e.f. 07-06-2024).
7 Inserted by Act 5 of 2010 ( w.e.f 24-08-2005).
within the minimum period of eligibility for the benefits under this Act or the Scheme,
if the legal heir of that member being a member of the Welfare Fund continues to
measure milk, for giving the benefits to the legal heir member under the Act of the
Scheme the period of milk measured by the deceased member shall also be taken into
account.]
4. Membership of the Fund .— (1) Every Dairy Farmer who has completed 18
years of age shall be eligible for registration as member of the Fund under the
provision of this Act and Scheme.
1[* * * * * *]
2[(2) Application for registration of membership shall be submitted in the
prescribed form either directly or online and the application so submitted shall be
submitted to the Board after verification and recommendation by the dairy co-operative
society concerned and shall be attested by the Dairy Development Department Officer,
authorised by the Chief Executive Officer in this behalf and having jurisdiction over the
place where the applicant resides.]
(3) Every application shall be accompanied by such documents together with the
fee for registration as may be specified in the scheme.
3[(4) Where the Chief Executive Officer is satisfied that the applicant has
complied with the provisions of this Act and the Scheme made thereunder, his
application for membership shall be considered in the ensuing Board meeting itself. In
the event of taking a decision to reject the application, the same shall be informed to the
applicant with the reasons thereof, either online or in writing, within a period of
fourteen days from the date of taking of such decision for rejection by the Board:
Provided that no application for registration shall be rejected without giving the
applicant an opportunity of being heard.]
(5) Any person aggrieved by the decision under sub-section (4) may, within such
time as may be specified in the Scheme, prefer an appeal to the Chief Executive Officer
or any other authority as may be specified by the Government in this behalf and after
conducting necessary enquiry on the appeal petition and after giving a reasonable
opportunity of being heard to the appellant, the Chief Executive Officer or such other
authority shall take a decision on such appeal within thirty days from the date of its
receipt, and such decision shall be final.
(6) The Chief Executive Officer shall make necessary arrangements to maintain the
1Omitted by Act 5 of 2010 ( w.e.f 24-08-2005).
2 Substituted by Act 8 of 2024 ( w.e.f. 07-06-2024).
3Substituted by Act 8 of 2024 ( w.e.f. 07-06-2024).
registers or other records prescribed in this behalf.
5. Cessation of membership in the Fund—If a member commits an offence under
section 17 or any other provision of this Act his membership in the Fund shall be
ceased.
1[6. Societies to maintain registers.— Every society shall maintain registers
showing the details such as the quantity of milk collected, the date on which milk
supplied, the details of members, the details of pensioners, details of payment of
contribution and details of contribution paid by dairy farmers, which are necessary for
the implementation of the scheme in the manner as prescribed and shall, whenever
required by the Chief Executive Officer or the Officer authorised by him, be submitted
them for inspection.]
7. Contribution to the Fund.—The contribution to the Fund shall be in the following
rates, namely:—
(i) each dairy farmer twenty rupees per month;
(ii) each society shall, —
(a) 2[0.5 per cent of the sale price] for each litre of milk to be
collected and sold by the society locally;
(b) 3[0.3 per cent of the sale price] for each litre of milk to be
given by the society to the Milma or to the Regional Union;
(iii) 4[0.75 percent of the sale price]per each litre of milk to be sold by Milma or the
Regional Union.
8. Constitution of the Board.—(1) On the commencement of this Act, a Board to
be called the Kerala Dairy Farmers' Welfare Fund Board may be constituted to supervise
and carryout the activities financed from the Fund.
(2) The Board shall be a body corporate by the name aforesaid, having perpetual
succession and common seal and shall by the said name sue and be sued.
5[(3) The Board shall consist of sixteen Directors as follows, namely:—
(a) one person each elected from among the Governing Bodies of
the three Regional Milk Co-operative Unions;
1 Substituted by Act 8 of 2024 ( w.e.f. 07-06-2024).
2 Substituted by Act 16 of 2013 (w.e.f 08-03-2013).
3 Substituted by Act 16 of 2013 (w.e.f 08-03-2013).
4 Substituted by Act 16 of 2013 (w.e.f 08-03-2013).
5 Substituted by Act 8 of 2024 ( w.e.f. 07-06-2024).
(b) three persons nominated by the Government from among the
Presidents of Traditional Primary Milk Co-operative Societies in the State;
(c) three persons nominated by the Government from among the
Presidents of Anand Pattern Milk Producers Co-operative Society
functioning in the State;
(d) Chief Executive Officer ( ex-officio );
(e) an Officer not below the rank of Joint Secretary to the Dairy
Development Department, nominated by the Government ( ex-officio );
(f) an Officer not below the rank of Joint Secretary to the Law
Department nominated, by the Government ( ex-officio );
(g) an Officer not below the rank of Joint Secretary to the
Finance Department nominated, by the Government ( ex-officio );
(h) Director, the Dairy Development Department or his
representative ( ex-officio );
(i) Chairman, Milma ( ex-officio );
(j) a representative of dairy farmers, nominated by the
Government.]
(4) One of the Directors of the Board shall be appointed by the Government to be its
Chairman.
(5) The Government shall publish in the Gazette the names of the Chairman and the
Directors of the Board.
(6) The Board shall administer the Fund vested in it in such manner as may be
specified in the scheme.
(7) The Board may, with the previous approval of the Government, delegate to
the Chairman or to the Chief Executive Officer or to any officer appointed under sub-
section (1) of section 11 such of its powers and functions under this Act or the Scheme
as it may consider necessary for the efficient administration of the Fund, subject to such
restrictions and conditions, if any, as it may specify.
9. Term of office of the Directors.— (1) A Director appointed under sub-section (3)
of section 8 shall hold office for a period of three years from the date he assume the
charge in office.
(2) Notwithstanding anything contained in section 10, the Government may,
at any time, for reasons to be recorded in writing, remove from office, any Director of the
Board, after giving him a reasonable opportunity to show cause, against the proposed
removal:
Provided that it shall not be necessary to record in writing, the reason for
removal or to give an opportunity to show cause against the proposed removal, if the
Government are of the opinion that it is not expedient in the public interest, to record the
reasons in writing or to give such opportunity.
(3) Any Director may resign his membership by giving notice in writing to the
Government and his resignation shall come into force on the date of receipt of the letter of
resignation by the Government.
10. Removal of non-official Directors.—(1) The membership of non-official
Directors who, without the previous permission of the Board, has been absent from
three consecutive meetings of the Board, shall be removed.
(2) A non-official Director of the Board removed under sub-section (1) shall be
disqualified for reappointment as a Director for a period of one year from the date of
his removal.
11. Appointment of officers and staff .— (1) The Government may appoint a
Chief Executive Officer and such number of other officers and staff as they consider
necessary to assist the Board in the discharge of its functions and duties under this
Act.
1[(2) The Chief Executive Officer shall be an officer in the post not below the
rank of Joint Director of the Dairy Development Department working in that
Department. He shall attend the Board meetings and shall maintain records
including the minutes of the meeting.]
(3) Subject to the provisions of sub-section (4), the method of appointment, salary
and allowances and other conditions of service of the 2[officers and staff being
appointed] under sub-section (1), shall be fixed by the Board with the approval of the
Government.
(4) In the case of posts in the service under the Board to which appointments
are made by direct recruitment the provisions in clauses (a), (b) and (c) of rule 14 and
also the provisions contained in rules 15, 16, 17 and 17(a) of the Kerala State and
Subordinate Service Rules, 1958 as amended from time to time shall be followed,
1Substituted by Act 8 of 2024 ( w.e.f. 07-06-2024).
2 Substituted by Act 5 of 2010 ( w.e.f 24-08-2005).
‘mutatis mutandis’.
12. Determination of amount due. —(1) The Chief Executive Officer or any
other officer authorised by the Board in this behalf shall, after making such enquiry as
may be necessary and after giving the society liable to pay the contribution under
section 7, an opportunity to be heard, by order, determine the amount of contribution
due under the provisions of this Act and the Scheme.
(2) The officer conducting the enquiry under sub-section (1) shall, for the
purposes of such enquiry, have the same powers as are vested in a Civil Court while
trying a suit under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), in
respect of the following matters, namely:—
(a) enforce the attendance of any person and examining him on oath;
(b) requiring the discovery and production of documents;
(c) receiving evidence on affidavits;
(d) issuing commissions for the examination of witnesses.
13. Collection of contribution.—(1) It shall be the duty of the Secretary of the
society/Chief Executive to pay in time the amount due to the Fund by each society,
Milma and the Regional Union liable to to pay the contribution under section 7.
1[(2) If any Society referred to in sub-section (1) makes arrears in remitting the
contribution, the said amount with interest shall be recovered from the said Society
as an arrear of public revenue due on land.]
(3) Each dairy farmer shall pay the contribution to be paid to the Fund under
section 7 to the respective societies and it shall be the duty of the Secretary of the
Society to remit such amount to the Fund in the manner as may be prescribed.
2[(4) If the contribution remitted by the dairy farmers is not paid by the societies
to the Welfare Fund in the concerned month itself, the Board shall have the power to
recover the said amount from the Secretary of the society, referred in sub-section (3),
with an annual interest at the rate of twelve per cent.]
14. Action against Secretary of the Society/Chief Executive.—Notwithstanding
anything contained in any other law for the time being in force, the Board may take
action against the Secretary of the Society/Chief Executive concerned, if the
1 Substituted by Act 5 of 2010 ( w.e.f 24-08-2005).
2 Added by Act 8 of 2024 ( w.e.f. 07-06-2024).
contribution of the society and the Milma and the Regional Union under section 7 has
not been paid to the Fund.
15. Priority of payment of contribution over other debts .—Where any order
has been made liquidating the society liable to pay contribution under section 7, the
contribution due under this Act, while liquidating, shall be deemed to be included
among the debts, which are to be paid in priority to all other debts.
16. Directors of Board etc. to be Public Servants .—Every Director of the
Board, Chief Executive Officer and other officers and staff of the Board appointed
under this Act shall be deemed to be a public servant within the meaning of section 21
of the Indian Penal Code (Central Act 45 of 1860).
17. Penalty.—(1) Whoever, for the purpose of avoiding any payment to be
made by himself under this Act or the Scheme or for the purpose of avoiding such
payment to any other person or for obtaining an amount not entitled or in excess of
what is entitled from this Fund or for obtaining an amount not entitled or in excess of
entitled to any other person from this Fund, knowingly makes or causes to be made
any false statement or false representation shall be punishable with imprisonment for
a term which may extent to three months or with fine which may extent to five
hundred rupees or with both.
(2) Whoever, contravenes or makes default in complying with any of the
provisions of this Act or of the Scheme shall, if no other penalty is elsewhere
provided by or under this Act, for such contravention or non-compliance, be punishable
with fine which may extend to four hundred rupees.
18. Enhanced punishment for the second or subsequent offence.—Whoever
having been convicted by a Court for an offence punishable under this Act, again
commits the same offence, shall be punishable for every such subsequent offences
with imprisonment for a term which shall not be less than three months or with a fine
which may extend to thousand rupees:
Provided that the Court may for any adequate and special reasons to be recorded in
the judgment, imposes a sentence of imprisonment for a term less than three months.
19. Offence by Societies.—(1) Where an offence under this Act has been
committed by a society, the Secretary of the Society and the members of the
governing body and all officers who, at the time when the offence was committed,
was in charge of , and was responsible to, shall be deemed to be guilty of that offence
and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person
liable to any punishment, if he proves that offence was committed without his
knowledge or that he had exercised due diligence to prevent the commission of such
offence.
(2) Notwithstanding anything contained in sub-section (1), where any offence
under this Act has been committed by a society and it is proved that the offence has
been committed with the consent or connivance of, or that the commission of
offence is attributable to any neglect on the part of any officer of the Society, such
officer of the Society shall be deemed to be guilty of that offence and shall be liable to
be proceeded against and punished accordingly.
2 0 . Protection of acts done in good faith.—No suit or other legal proceeding shall
lie against any Director of the Board or the Chief Executive or any other person in
respect of anything which is done in good faith or intended to be done under this Act
or under the Scheme.
21. Directions by the Government.—(1) Government may give general
directions to the Board to be followed by the Board.
(2) In the exercise of the powers and the performance of its duties under this Act
the Board shall not depart from any general direction issued under sub-section(1),
except with the previous permission of the Government.
22. Power to supersede the Board.—If the Government is satisfied that the
Board has persistently made default in the performance of the duties imposed on it
by or under the provisions of this Act or the Scheme exceeded or abused its powers the
Government may, by notification in the Gazette, supersede the Board for such period
not exceeding six months, as may be specified in the notification.
(2) In the case of supersession of the Board under sub-section (1) the Government
may appoint an administrator for the administration of the Board.
23. Audit of the Accounts of the Board. —(1) The Government shall appoint
auditors to audit the accounts of the Board.
(2) The accounts of the Board shall be examined and audited by such auditors
once in every year.
(3) The Government may, in respect of audit reports or further proceeding, as it
deem fit, may further examine the audit report by the Accountant General.
24. Annual Report and Audited Statement of Accounts.—(1) The annual report of
the Board shall be prepared by the Chief Executive Officer under the directions of the
Board and after the approval by the Board, a copy of the report together with the
audited statement of accounts shall be submitted to the Government within six
months after the end of every year.
(2) The Government shall, as soon as the annual report is received under sub-
section (1), cause the same together with audited statement of such accounts to be laid
before the next session of the Legislative Assembly immediately follows.
25. Bar of jurisdiction of Civil Courts.—No Civil Courts shall have jurisdiction
to settle, decide, deal with or to determine any matter which is by or under this Act,
or the Scheme, required to be settled, decided or determined or to be dealt with by
the Chief executive Officer or any other officers appointed by the Government or the
Board under section 11.
26. Power to make Rules. —(1) The Government may, by notification in the
Gazette, either prospectively or retrospectively, make rules, for the purposes of
carrying into effect the provisions of this Act for audit, for implementing the
conditions of service and remuneration for prosecutions and for the purposes of
carrying out all other requirements of the scheme.
(2) Every rule made under this Act shall be laid, as soon as may be after it is
made, before the Legislative Assembly, while it is in session for a total period of
fourteen days which may be comprised in one session or in two successive sessions,
and if, before the expiry of the session in which it is so laid or the session
immediately following, the Legislative Assembly makes any amendment in the rule
or decides that the rule should not be made, the rule shall, thereafter, have effect only
in such form as amended or be of no effect, as the case may be; so, however, that any
such amendment or annulment shall be without prejudice to the validity of anything
previously done under that rule.
27. Repeal and saving.—(1) The Kerala Dairy Farmers' Welfare Fund
Ordinance, 2007(20 of 2007) is hereby repealed.
(2) Notwithstanding such repeal, anything done or deemed to have been done or
any action taken or deemed to have been taken under the said Ordinance shall be
deemed to have been done or taken under this Act.
SCHEDULE
[See section 3 (6)]
1. Registration of Dairy Farmers.
2. Time and manner in which contribution shall be made to the Fund, under
section 7.
3. Constitution of any committee for assisting the Board.
4. The manner in which accounts shall be kept, the investment of money belonging
to the fund in accordance with any directions issued or conditions specified by
the Government, preparation of Budget, Audit of Accounts, further proceedings on
audit report, submission of report to the Government etc.
5. Conditions under which the withdrawals from the Fund may be permitted and any
deduction or forfeiture may be made and the maximum amount of such deduction
or forfeiture.
6. Form in which a member shall furnish the particulars about himself and his family
whenever required.
7. The nomination of a person to receive any family pension as a member on his death
and the cancellation or variation of such nomination.
8. The registers and records to be maintained by the society with respect to Dairy
farmers and the returns to be furnished.
9. Form of identity card for the purpose of identifying any member of the Fund and for
issue, custody and replacement thereof.
10. The fees to be levied for any of the purposes specified in the schedule.
11. The further powers, if any, which may be exercised by the officers, appointed
under this Act .
12. The purposes for which the Fund may be utilised.
13. Procedure for defraying the expenditure incurred in the administration of the
Fund.
14. Procedure for the payment of pension, family pension, benefits etc. from the
Fund.
15. Headquarters of the Board, daily allowance of the Board Members, Travelling
Allowance, Honorarium etc.
16. Any other matter which is to be provided for in the scheme or which may be
necessary for the purpose of implementing the scheme.