The Warehousing Corporations Act 1962

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THE WAREHOUSING CORPORATIONS ACT, 1962 
(ACT 58 OF 1962) 
(The text of the Act printed here is as on 30.4.1985) 
 
CONTENTS 
 
CHAPTER 1 
 
PRELIMINARY 
 
SECTIONS 
1. Short Title, extent and commencement 
2. Definitions 
 
CHAPTER II 
THE CENTRAL WAREHOUSING CORPORATION 
 
3. The Central Warehousing Corporation 
4. Share capital and shareholders. 
5. Shares to be guaranteed by Central Government and to be trust or approved securities. 
6. Management of Central Warehousing Corporation. 
7. Directors 
8. Disqualification for office of director  of the Central Warehousing Corporation. 
9. Removal of directors from office. 
10. Appointment of officers etc. and their conditions of service. 
11. Functions of Central Warehousing Corporation. 
12. Executive Committee 
13. Meetings of the Corporation 
14. Grants and loans by the Central Government. 
15. Corporation to maintain two funds. 
16. Warehousing Fund. 
17. General Fund. 
 
CHAPTER III 
STATE WAREHOUSING CORPORATION 
18. State Warehousing Corporations 
19. Share capital and shareholders. 
20. Management of a State Warehousing Corporation. 
21. Disqualification for office of director of the Corporation. 
22. Removal of directors from office. 
23. Appointment of officers, etc. and their conditions of service. 
24. Functions of the State Warehousing Corporation. 
25. Executive Committee. 
 
 
 
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CHAPTER IV 
FINANCE, ACCOUNTS AND AUDIT 
 
26. Submission of programme of activities and financial estimates.. 
27. Borrowing powers of Warehousing Corporation. 
28. Deposit account 
29. Investment of funds. 
 
30. Disposal of profits. 
31. Accounts and audit of Warehousing Corporation. 
31-A.   Returns and Reports. 
 
CHAPTER V 
MISCELLANEOUS 
 
32. Vacancies, etc. not to invalidate acts and proceedings of Warehousing Corporations. 
33. Delegation. 
34. Voting rights of shareholders. 
35. Disputes between Central Warehousing Corporation and State Warehousing Corpn. 
36. Declaration of fidelity and secrecy. 
37. Indemnity of directors. 
38. Offences. 
39. Provisions relating to Income Tax and Super Tax. 
40. Winding up of Warehousing Corporations. 
41. Power to make rules. 
42. Power of Warehousing Corporations to make regulations. 
43. Repeal and savings. 
 
THE SCHEDULE 
(See Section 36) 
 
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STATEMENT OF OBJECTS AND REASONS 
 
 "Under the Agricultural Produce (Developmen t and Warehousing) Corporations Act, 1956, 
two interdependent  bodies, namely the National Co-operative Development and Warehousing Board 
and the Central Warehousing Corporation were es tablished and they were under administrative 
control of the Ministry of Food and Agriculture.  Subsequently, as a re sult of re-allocation of 
business among the Ministries, the two bodies came unde r the administrative control of two different 
Ministries, namely, the Ministry of Community De velopment and Co-operation and the Ministry of 
Agriculture and Food. In the interest of better f unctioning of the two bodies and for administrative 
convenience it has been decided that the two bodi es should function independently under separate 
enactments. A Bill has already been introduced fo r establishing a separate National Co-operative 
Development Corporation in place of the existing Board. The present Bill seeks to provide for the 
establishment of a Central Warehousing Corporation and for each State, a State Warehousing 
Corporation. 
 
 Under this Bill, the Central Warehousing Co rporation will continue to perform same 
functions as the existing Corporation. The Central Government will be a share holder to the extent of 
forty percent of the shares of the shares of the Corporation in place of National Co-operative 
Development Board, while the other shareholders of  the existing Corporation will become the other 
shareholders of the new Corporation. The new Corporation will also maintain the Warehousing 
Fund. The existing State Warehousing Corporations  shall be deemed to be the Warehousing 
Corporations established for the respective States under the new law. 
 
 Amending Act 34 of 1963 - Section 3 (2) of  the Warehousing Corporations Act, 1962 
provided that the head office of the Central Warehousing Corporation shall be situated at New Delhi. 
Government consider that they should be in a pos ition to locate the head office at any place which 
might be convenient and suitable. This would be in  consonance with the Scheme of the Government 
of India for the dispersal of offices from Delhi.  The Bill seeks to amend section 3(2) of the Act 
suitably so that the proposal might be implemente d, if necessary." - Gaz.  of Ind... 13-6-1963, Pt. II, 
S.2 Ext., p.476". 
 
 Amending Act 42 of 1976 - The Warehousing Cor poration Act, 1962, was enacted to provide 
for the incorporation and regulation of Corporati ons for the purpose of warehousing of agricultural 
produce and certain other commodities and for matters connected therewith. Under the scheme of the 
Act, the Central Warehousing Corporation and State Warehousing Corporations, have been entrusted 
with the tasks of building of and providing scien tific storage facilities in different parts of the 
country. With the growing activities of the Centra l and State Warehousing Corporations in providing 
scientific storage facilities, some difficulties have  been experienced, which are now proposed to be 
removed. This has become particularly necessary in the context of creation of additional 
warehousing capacities during the Fifth Plan period. The authorised share capital of the Central 
Warehousing Corporation and of some of the Stat e Warehousing Corporations has been fully paid 
up. Provision is therefore being made to empower the Central Government to increase the share 
capital of the Warehousing Corporations. At pres ent a Warehousing Corporation can borrow money 
only from the Reserve Bank or St ate Bank, among the various financial institutions. The need for a 
Warehousing Corporation seeking fi nances from additional non-budgetary resources has  also been 
felt. Provision is therefore being made to enable  a Warehousing Corporation to borrow money also 
from nationalised banks or such other financia l institutions as may be approved by the Central 
Government. Similarly, provision is being made to enable a Warehousing Corporation to deposit 
money in any nationalised bank in the same manner as in the Reserve Bank or State Bank. There is 
no provision in the Act for meeting from the Ware housing Fund, the expenditure incurred in relation 
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to the administration of that Fund and this is be ing met from the General Fund. It is proposed to 
provide that expenditure incurred on the administ ration of the Warehousing Fund and on the training 
of personnel and publicity and propaganda for the pr omotion of warehousing scheme in relation to 
agricultural produce and notified commodities sh all be met out of the Warehousing Fund. In 
pursuance of Government decision on the recommendations of Administrative Reforms Commission 
provision is also being made for submission by the Warehousing Corporation of such returns, 
statistics, accounts and other information with resp ect to its property and activities as Government 
may require. Opportunity is also being taken to  amend the rule laying formula to bring it in 
conformity with the recommendation of the Committee on Subordinate Legislation. 
 
2. The Bill seeks to achieve the above objects. 
 
COGNATE ACTS AND PROVISIONS 
 
(1) National Co-operative Development Corpor ation Act, 26 of 1962 (2) Customs Act 52 of 
1952, S.9 and Ch.IX, (3) Warehousing Corporations (Supplementary) Act 20 of 1965. 
 
ACT NOW AFFECTED BY SUBSEQUENT LEGISLATION 
 
 - Amended by Acts 34 of 1963, 42 of 1976. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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[THE] WAREHOUSING CORPORATIONS ACT, 1962 
(ACT 58 OF 1962) 
(19 December, 1962) 
 An Act to provide for the incorporation and regulation of Corporations for the purpose of 
warehousing of agricultural produce and certain other commodities and for matters connected 
therewith. 
 
 BE it enacted by Parliament in the Thirteenth year of the Republic of India as follows: 
(a) For Objects and Reasons, see Gaz. of Ind., 3-9-1962, Pt.II, S.2, Ext., P.766. 
 
CHAPTER I 
PRELIMINARY 
 
1. Short title, extent and commencement -  
(1)  This Act may be called THE WAREHOUSING CORPORATIONS ACT, 1962. 
(2) It extends to the whole of India except the State of Jammu and Kashmir. 
(3) It shall come into force on such date as the Central Government may, by notification 
in the official Gazette, appoint. 
 (a) The date appointed is 18-3-1963- See Gaz.  of Ind. 18-3-1963, Pt. II, S.3(1), Ext. P. 155. 
 The Act has been extended to an enforced  on 1-1-1984 in Sikkim - See S.O.529 (E) of 1983 
and G.S.R. 926(E) of 1983. 
(4) In exercise of the power s conferred by sub section 2 of section 1 of the Warehousing 
Corporations (Amendment) Act 2001 (23 of 2001), th e Central Government hereby appoint the first 
day of November, 2001 as the date on which said Act shall come into force (GSR 804(E) dtd 29 Oct. 
2001 (File No.6-60/97-SG) No.545 dtd 29 Oct. 2001) 
 
2. Definitions - In this Act, unless the context otherwise requires:- 
(a) "agricultural produce" means any of the following classes of commodities, namely:- 
(i) foodstuffs, including edible oil-seeds; 
(ii) cattle fodder, including oil-cakes and other concentrates; 
(iii) raw cotton, whether ginned or unginned, and cotton seed; 
(iv) raw jute; and 
(v) vegetable oils; 
(b) "appropriate Government" means in relation to the Central  Warehousing Corporation, the 
Central Government, and in relation to a State Warehousing  Corporation, the State 
Government; 
 
(c) "Central Warehousing Corporation" means th e Central Warehousing Corporation established 
under section 3; 
(d) "Co-operative Society" means a society registered or deemed to be registered under the Co 
operative Societies Act, 1912, or under any other law with respect to co-operative societies for the 
time being in force in any State which is engage d in the processing, marketing, storage, export or 
import of agricultural produce or any notified commodity or in insurance business and includes a co-
operative land mortgage bank: 
 
(dd) "Nationalised Bank" means  a corresponding ne w bank specified in the First Schedule to the 
Banking Companies (Acquisition and Transfer of undertakings) Act, 1970; 
(e) "notified commodity" means any commodity (other than agricultural produce) which the 
Central Government may, by notification in the offi cial 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; 
 
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(f) "Prescribed" means prescribed by rules made under this Act. 
(g) "recognised association" means an associati on which is for the time being recognised by the 
Central Government under Section 6 of the Forward Contracts (Regulation) Act 1962; 
(h) "Reserve Bank" means the Reserve Bank of India constituted under the Reserve Bank of 
India Act, 1934. 
(i) "Scheduled Bank" means a bank for the time being included in the Second Schedule to the 
Reserve Bank of India Act, 1934 (and includes a nationalised bank); 
(j) "State Bank" means the State Bank of Indi a constituted under the State Bank of India Act, 
1955; 
(k) "State Warehousing Corporation" means Warehousing Corporation for a State established or 
deemed to be established under this Act; and 
(l) "Warehousing Corporation" means a Warehous ing Corporation for a State established or 
deemed to be established under this Act; and  
(m) "year" means the financial year. 
 (a) Inserted by the Warehousing Corpora tions (Amendment) Act, 1976 (42 of 1976), 
S.2(24-3-1976). 
 (b) (1) Iron and Steel (Metal), (2) Iron and St eel structurals, (3) Insecticides, fungicides 
and weedcides, (4) Rubber, (5) Portland Cement, (6) Coir fibre and coir products, (7) 
Textiles, (8) Paper and pulp including paper products and (9) Leather, leather goods and 
pickers are so notified by G.S.R. 1039 published in Gaz. of India, 1963, Pt. II, S.3(1), P.1202; 
Tobacco, Iac and wool are so notified under G.S.R. 1714, published in Gaz. of Ind., 1965, Pt. 
II, S.3(i), P.1876; Tea chests, panels and ba ttons are notified by G.S.R. 990, published in 
Gaz. of Ind., 1966, Pt. II, S.3(i), P.1124; Mutt on tallow, soda ash and washing soda so 
declared under G.S.R. 173 published in Gaz. of Ind. 1968, Pt.II, S.3(i), p.100; Polythene 
Granules and sheets so notified by G.S.R. 1967, published in Gaz. of Ind., 1970, Pt.II. S.3(i), 
P.4430. 
ii) For modified application of this section in  certain States, see the Warehousing Corporations 
(Supplementary) Act, 1965 (20 of 1965), S.2 ( 20.11.1965). The text of this Act is printed 
after this Act in this volume. 
 
CHAPTER -II 
THE CENTRAL WAREHOUSING CORPORATION 
 
3. The Central Warehousing Corporation  
(1) With effect from such date as the Central Government may be notification in the official 
Gazette, specify in this behalf, the Central Govern ment shall establish a Corporation by the name of 
the Central Warehousing Corporation which shall be a body corporate having perpetual succession 
and a common seal with power to acquire; hold and dispose of property and to contract, and may, by 
the said name, sue and be sued. 
(2) The head office of the Central Warehousing Cor poration shall be at New Delhi ( or at such 
other place as the Central Government may, by notification in the official Gazette specify). 
(a) The Corporation was established on 18-3-1963- See G.S.R. 464 published in Gaz. of Ind., 
1963, Pt. IIS.3(i), Ext. P. 156. 
(b) Inserted by the Warehousing Corporati ons (Amendment) Act, 1963 (34 of 1963), S.2 
(22.9.1963). 
 
4. Share Capital and shareholders-  
(1) The authorised share capital of the Central Warehousing Corporation shall be Two crores of 
rupees divided into two hundred thousand shares of  the face value of one thousand rupees each; any 
shares remaining to be issued may be issued, with  the sanction of the Central Government from time 
to time, as and when the Central Warehousing Corporation may deem fit; 
 
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           (Provided that the Central Government  may, from time to time, by order notified in the official 
Gazette, increase the authorised sh are capital of the Central Warehousing Corporation to such extent  
and in such manner as the Government may determine). 
 
           (2) (The Central Government shall, after due appropriation made by Parliament by law for the  
purpose) subscribe for forty percent of the share capital issued at any time and the remaining sixty 
percent of the share capital may be subscribed for,  within such period and in such proportion as may 
be specified by Central Government, by the following institutions namely:- 
 (a) The State Bank 
 (b) Other scheduled banks 
 (c) Co-operative Societies; 
 (d) Insurance Companies, investment trusts and other financial institutions; 
 (e) Recognised associations and companies dealing in agricultural produce or any notified 
commodity. 
            (3) If any portion of the sixty percent of the share capital referred to in subsection (2) remains 
unallotted, it may be subscribed for by the Cent ral Government and the State Bank in such 
proportion as may be agreed upon between them and in default of such agreement, as may be 
determined by the Central Government. 
 
            (4) The shares of the Central Warehousing Corporation shall not be transferable except to the Central 
Government (the State Bank or any other schedul ed Bank), any insurance company, any investment 
trust or other financial institution or any co-ope rative society or any recognised associations or 
company dealing in agricultural produce or any notified commodity, in accordance with the 
regulations made by the Central Warehousing Corporation under this Act. 
 
(a) Inserted by the Warehousing Corporations  (Amendment) Act, 1976(42 of 1976), S.3 (24-
3-1976). 
(b) Substituted for the words "The Central Government shall", ibid. 
(c) Substituted for the words "The State Bank, any scheduled bank", ibid. 
5.    Shares to be guaranteed by Central Government and to be trust or approved securities:- 
(1) The shares of the Central Warehousing Co rporation shall be guaranteed by the Central 
Government as to the repayment of the principal,  and the payment of the annual dividend at such 
minimum rate as may be fixed by the Central Gove rnment, by notification published in the official 
Gazette, at the time of the issue of the shares. 
 
(2) Notwithstanding anything contained in the Act me ntioned in this subsection, the shares of the 
Central Warehousing Corporation shall be deemed to be included among the securities enumerated 
in section 20 of the Indian Trusts Act, 1882, and al so to be approved securities for the purpose of the 
Insurance Act, 1938 and the Banking Companies Act, 1949. 
 
6. Management of Central Warehousing Corporation :-  
(1) The general superintendence and management  of the affairs and business of the Central 
Warehousing Corporation shall vest in a board of di rectors who, with the assi stance of an Executive 
Committee and a managing director, may exercise all the powers and discharge all the functions 
which may be exercised or discharged by the Central Warehousing Corporation under this Act. 
(2) The board of directors shall act on business prin ciples having regard to public interest and shall 
be guided by such instructions on questions of policy as may be given to them by the Central 
Government. 
(3) If any doubt arises as to whether a question is or is not a question of policy, the decision of the 
Central Government shall be final. 
 
 
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7. Directors -  
(1) The board of directors referred to in section 6 shall consist of the following, namely:- 
(a) Six directors to be nominated by the Central Government. 
(b) one director to be nominated by the Na tional Co-operative Development Corporation 
established under the National Co-operative Development Act 1962. 
(c) one director to be nominated by the State Bank; 
(d) one director to be elected by other scheduled banks; 
(e) one director to be elected by co-operative societies; 
(f) one director to be elected by insurance companies, investment trusts and other 
financial institutions recognised associations and companies dealing in agricultural produce 
or notified commodities; 
(g) a managing director, appointed by the Cent ral Government in consultation with the 
directors referred to in clauses (a) to (f); 
 
Provided that the three directors to be elected under clauses (d), (e) and (f) may, for the first 
constitution of the board of directors, be nominated by the Central Government in such manner as to 
give representation to each class of institutions (w hether they have become shareholders of the 
Corporation or not) referred to in those clauses, but a director so nominated shall hold office only 
until he is replaced by a director el ected as provided in that clause, and the director so elected shall 
hold office only for so long as the director replaced would have held office had he not been replaced. 
(2)  The directors referred to in clauses (d), (e) and (f) of sub-section (1) shall be elected in the 
prescribed manner. 
(3)  If, within the period prescribed in this beha lf, or within such further period as the Central 
Government may allow, the institutions referred to in clause (d) or clause (e) or clause (f) of 
subsection (1) fail to elect a director, the Centra l Government may nominate a director to fill the 
vacancy. 
(4)  The board of directors shall have a Chairm an and a Vice-Chairman who shall be appointed 
by the Central Government from among the directors. 
(5)  The managing director shall 
(a)  exercise  such powers and perform such  duties as the board of directors  or the 
Central Warehousing Corporation may entrust or delegate to him; and 
(b)  receive such salary and allowances as the Central Warehousing Corporation may, 
with the approval of the Central Government, fix. 
(6)  The directors of the Central Warehousing Cor poration other than the managing director shall 
be entitled to receive by way of remuneration such  sums as the Central Warehousing Corporation 
may, with the approval of the Central Government, fix. 
 Provided that no official director shall be en titled to receive any remuneration other than the 
allowances, if any, admissible to him under the rules regulating his conditions of service. 
 
(7) The term of office of, and the manner of f illing casual vacancies among the directors shall be 
such as may be prescribed. 
 
8. Disqualification for office of director of the Central Warehousing Corporation. 
A person shall be disqualified for being chosen as, and for being, a director of the Central 
Warehousing Corporation. 
(i) if he is found to be a lunatic or becomes of unsound mind, or 
(ii) if he is, or at any time has been, adj udicated insolvent or has suspended payment of 
his debts or has compounded with the creditors; or 
(iii) if he is or has been convicted of a ny offence involving moral turpitude and sentenced 
in respect thereof to imprisonment for not less than six months unless period of five years has 
elapsed form the date of expiry of the sentence; or 
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(iv) if he has been removed or dismisse d from  the service of Government or a 
Corporation owned and controlled by the Government; or 
(v) except in the case of the managing director, if  he is a salaried official of the Central 
Warehousing Corporation or any State Warehousing Corporation; or 
(vi) if he is personally interested in any s ubsisting contract made with, or in any work 
being done for the Central Warehousing Corporation ex cept as a shareholder (other than a director) 
in any public company as defined in the Companies Act, 1956; 
 
 Provided that where any such person is a shar eholder, he shall disclose to the Central 
Warehousing Corporation the nature and extent of shares held by him in such company. 
 
9. Removal of directors from office:-   
(1) The Central Government may at any time in consultation with the Central Warehousing 
Corporation remove the managing director from office after giving him a reasonable opportunity of 
showing cause against the proposed removal. 
(2) The board of directors may remove from office any director who - 
(a) is or has become subject to any of the disqualifications mentioned in section 8; or 
(b) is absent without leave of the board of  directors for more than three consecutive 
meetings of the board without cause sufficient in the opinion of the board to exonerate his absence. 
 
10. Appointment of officers, etc. and their conditions of service -  
(1) The Central Warehousing Corporation may appoi nt such officers and other employees as it 
considers necessary for the efficient performance of the functions. 
 
(2) Every person employed by the Central Ware housing Corporation under this Act shall be 
subject to such conditions of services and sh all be entitled to such remuneration as may be 
determined by regulations made by the Corporation under this Act. 
 
11. Functions of Central Warehousing Corporation -  Subject to the provisions of this Act, the 
Central Warehousing Corporation may - 
(a) acquire and build godowns and warehouses at  such suitable places in India or abroad 
as it thinks fit; 
 [Notification No.GSR 807(E), File No.6-60/97-SG dtd 1.11.2001 (No.545, 29 Oct. 2001)] 
(b) run warehouses for the storage of agricultural produce, seeds, manures, fertilizers, 
agricultural implements and notified commodities o ffered by individuals co-operative societies and 
other institutions; 
(c) arrange facilities  for the transport of ag ricultural produce, seeds, manures, fertilizers, 
agricultural implements and notified commodities to and from warehouses; 
(d) subscribe to the share capital of State Warehousing Corporation; 
(e) act as agent of the Government for the purposes of the purchase, sale, storage and 
distribution of agricultural produce, seeds, manures , fertilizers, agricultural implements and notified 
commodities; 
"(ea) enter into with the previous approval of  the Central Government Joint Ventures with 
any Corporation established by or under any Centra l Act or any State Act or with any company 
formed and registered under the Companies Act 1956 including foreign company or through its 
subsidiary company, for carrying out the purpose of this Act. 
Explanation:  For the purpose of this clause, the e xpression "Foreign Company" shall have the 
meaning assigned to it under clause (23A) of Section 2 of the Income Tax 1961; 
 (eb) establish subsidiary companies; and 
[Notification No.GSR 807(E), File No.6-60/97-SG dtd 1.11.2001 (No.545, 29 Oct. 2001)] 
 
(f) carry out such other functions as may be prescribed. 
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12. Executive Committee -   
(1) There shall be an Executive Committee of the Central Warehousing Corporation which shall 
consist of - 
(a) the Chairman and the Vice Chairman of the board of directors; 
(b) the managing director; and 
(c) two other directors chosen by the Corporation in the prescribed manner. 
(2) The Chairman and the Vice-Chairman of the boa rd of directors shall be the Chairman and the 
Vice-Chairman, respectively of the Executive Committee. 
 
(3) Subject to the general control, direction and superintendence of the board of directors, the 
Executive Committee shall be competent to deal w ith any matter within the competence of the 
Central Warehousing Corporation. 
 
13. Meetings of the Corporation -  
(1) The annual general meeting of the Central Wa rehousing Corporation (hereinafter referred to 
as the annual general meeting) shall be held every year either at its head office, or at any other office 
of the Corporation within six months of the cl ose of the financial year, and any other general 
meeting may be convened by the board of directors at any other time. 
 
(2) The shareholders present at the annual genera l meeting shall be entitled to discuss the annual 
accounts, the report of the board of directors on the working of the Corporation during the year under 
report, as well as the auditor's report on the annual balance sheet and accounts; 
(3) The board of directors of the Central Ware housing Corporation shall on the requisition of the 
one-third of the number of shareholders of th e Corporation, call a special meetings of the 
Corporation. 
(4) The requisition for a special meeting under s ub-section (3) shall state the object of the 
meeting, and shall be signed by the requisitioni sts and deposited at the head office of the 
Corporation, and may consist of several documen ts in like form each signed by one or more 
requisitionists. 
(5) If the board of directors of the Central Warehousing Corporation do not proceed within 
twenty one days from the date of the requisition being so deposited to cause the special meeting to be 
called, the requisitionists, or a majority of them ma y, themselves call the meeting, but in either case, 
the meeting so called shall be held within thr ee months from the date  of the deposit of the 
requisition. 
(6) The Central Warehousing Corporation shall observe such rules of procedure in regard to the 
transaction of business at its meetings (includi ng the quorum at meetings) as may be provided by 
regulations made by the Central Warehousing Corporation under this Act. 
 
14. Grants and Loans by the Central Government -  
(1) The Central Government may after due appr opriation made by Parliament by law in this 
behalf, pay to the Central Warehousing Corporation for the purposes of either fund maintained by the 
Corporation - 
 
(a) by way of grants, such of money as the Central Government may consider necessary; and  
(b) by way of loans, such sums of money on such terms and conditions as the Central 
Government may determine. 
 
(2) When making a payment under sub-section (1),  the Central Government shall specify the 
fund for the purposes of which the payment is made. 
 
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15. Corporation to maintain two funds  - The Central Warehousing Corporation shall maintain 
two separate funds namely : 
(a) the Central Warehousing Fund (hereinafter referred to as the Warehousing Fund; and  
(b) the General Fund. 
16. Warehousing Fund -  
(1) To the Warehousing Fund shall be credited - 
(a) all moneys and other securities transferred to the Central Warehousing Corporation 
under clause (c) of sub-section (2) of section 43. 
(b) such grants and loans as the Central G overnment may make for the purposes of the 
Warehousing Fund, and  
(c) such sums of money as may, from time to  time, be realised out of the loans made 
from the Warehousing Fund or from interest on loan s or dividends on investments made from that 
fund. 
(2) The Warehousing Fund shall be applied - 
(a) for advancing loans to State Governments on such terms and conditions as the Central 
Warehousing Corporation may deem fit for the purpos e of enabling them to subscribe to the share 
capital of State Warehousing Corporations. 
(b) for advancing loans and granting subsidie s to State Warehousing Corporations or to 
State Governments on such terms and conditions as  the Central Warehousing Corporation may deem 
fit for the purpose of promoting the Warehousing and storage of agricultural produce and notified 
commodities, otherwise than through co-operative societies. 
(c) for meeting the expenses incurred in relation to the training of personnel, or publicity 
and propaganda, for the purpose of promoting ware housing and storage of agricultural produce and 
notified commodities; 
(d) for meeting the expenses, including the sa lary, allowances and other remuneration of 
the officers and other employees, incurred in relation to the administration of the Warehousing Fund. 
(a) Inserted by the Warehousing Corporations (Amendment) Act, 1976 (42 of 1976), S.4 (24-3-
1976) 
17. General Fund  
(1)  To the General Fund shall be credited - 
(a) all sums received by the Central Warehousi ng Corporation other than those referred to 
in sub-section (1) of section 16; and 
(b) such grants and loans as the Central G overnment may make for the purposes of the 
General Fund. 
(2) The General Fund shall be applied - 
(a) for meeting the salary, allowances and other remuneration of the officers and other 
employees of the Central Warehousing Corporation; 
(b) for meeting the other administrative expenses of the Corporation; and 
(c) for carrying out the purposes of this Act. 
 [Provided that the General Fund shall not be a pplied for meeting the  expenses referred to in 
clause (c) or clause (b) of sub-section (2) of section 16] 
(a) Inserted by the Warehousing Corporations (Amendment) Act, 1976 (42 of 1976), S.5 (24-3-
1976). 
 
CHAPTER III 
STATE WAREHOUSING CORPORATIONS 
 
18. State Warehousing Corporations -  
(1) The State Government may by notification in th e official Gazette and with the approval of the 
Central Warehousing Corporation establish a Wa rehousing Corporation for the State under such 
name as may be specified in the notification. 
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(2) A State Warehousing Corporation estab lished under sub-section (1) shall be a body 
corporate by the name notified under that sub- section, having perpetual succession and a common 
seal with power to acquire, hold and dispose of property and to contract, and may, by the said name, 
sue and be sued. 
(3) The head office of a State Warehousing Corpora tion shall be at such place within the State as 
may be notified in the official Gazette. 
(4) Notwithstanding anything contained in sub-secti on (1), (2) and (3), it shall not be necessary 
for the State Government to establish a Corporati on under sub section (1) where, under clause (g) of 
sub-section (2) of section 43, a Corporation is deemed to be established for the State under this Act. 
 
19. Share Capital and shareholders  -  
(1) The authorised capital of a State Warehousi ng Corporation shall be such sum not exceeding 
Two crores of rupees as may be prescribed, divi ded into shares of the face value of one hundred 
rupees each, of which such number as may be determined by the Corporation in consultation with the 
State Government shall be issued in the first inst ance and the remaining shares may be issued, from 
time to time, as and when the Corporation may deem fit after consultation with the Central 
Warehousing Corporation and with the sanction of the State Government. 
 
 a [Provided that in respect of any State Warehousing Corporation, the Central Government 
may, after consultation with the State Government concerned, from time to time and by order 
notified in the official Gazette, increase the maxi mum limit of the authorised capital aforesaid to 
such extent and in such manner as the Central Government may determine] 
(2) Of the share capital issued in the first instance and of any subsequent issue of such capital, 
the Central Warehousing Corporation shall in any case where the State Government has subscribed 
for fifty percent of such capital subscribe for the remaining fifty percent of the capital. 
(a) inserted by the Warehousing Corporations (Amendment) Act, 1976 (42 of 1976), S.6 (24-3-
1976) 
 
20. Management of a State Warehousing Corporation -   
(1) The general superintendence and manageme nt of the affairs of a State Warehousing 
Corporation shall vest in a board of directors which shall consist of the following, namely:- 
(a) five directors nominated by the Central Warehousing Corporation, of whom one shall 
be nominated in consultation with the State Bank and one at least shall be a non official; 
(b) five directors nominated by the State Government; and 
(c) a managing director, appointed by the State Government in consultation with the 
directors referred to in clauses (a) and (b) and under intimation to the Central Warehousing 
Corporation.  
 
(2) The Chairman of the board of directors sh all be appointed by the State Government from 
among the directors of the State Warehousing Corporation under intimation to the Central 
Warehousing Corporation. 
(3) The managing director shall - 
(a) exercise such powers and perform such du ties as the board of directors or the State 
Warehousing Corporation may entrust or delegate to him, and 
(b) receive such salary and allowances as the State Warehousing Corporation, may in 
consultation with the Central Warehousing Corporati on and with the previous approval of the State 
Government, fix. 
(4) The board of directors shall act on business pr inciples having regard to public interest and 
shall be guided by such instructions on questions of policy as may be given to them by the State 
Government or the Central Warehousing Corporation. 
         13
(5) If any doubt arises as to whether a question is  or is not a question of policy, or if the State 
Government and the Central Warehousing Corporati on give conflicting instructions, the matter shall 
be referred to the Central Government whose decision thereon shall be final. 
(6) The directors of a State Warehousing Corpora tion, other than the managing director, shall be 
entitled to receive by way of remuneration such sums as may be prescribed. 
 
 Provided that no official director shall be en titled to receive any remuneration other than any 
allowance admissible to him under the rules regulating his conditions of service. 
(7) The term of office of, and the manner of filling casual vacancies among directors shall be 
such as may be prescribed. 
 
21. Disqualification for office of director of the Corporation - A person shall be disqualified 
from being chosen as, and for being, a director of a State Warehousing Corporation - 
(i) if he is found to be a lunatic or becomes of unsound mind; or 
(ii) if he is, or at any time has been, adj udicated insolvent or has suspended payment of 
his debts or has compounded with his creditors; or 
(iii) if he is or has been convicted of a ny offence involving moral turpitude and sentenced 
in respect thereof to imprisonment for not less th an six months, unless a period of five years has 
elapsed from the date of expiry of the sentence; or 
(iv) if he has been removed or dismissed fr om service of Government or a Corporation 
owned and controlled by the Government; or 
(v) except in the case of the managing director, if he is a salaried official of a State 
Warehousing Corporation; or 
[Notification No.GSR 807(E), File No.6-60/97-SG dtd 1.11.2001 (No.545, 29 Oct. 2001)] 
 
(vi) if he is personally interested in a subsis ting contract made with, or in any work being 
done for, the State Warehousing Corporation except as  a shareholder (other than a director) in any 
public company as defined in the Companies Act, 1956; 
 Provided that where any such person is a shar eholder, he shall disclose to the Warehousing 
Corporation the nature and extent of the shares held by him in such company. 
 
22. Removal of directors from office - 
 (1) The State Government may, at any time under intimation to the Central Warehousing 
Corporation, remove the managing director from office after giving him a reasonable opportunity of 
showing cause against the proposed removal. 
[Notification No.GSR 807(E), File No.6-60/97-SG dtd 1.11.2001 (No.545, 29 Oct. 2001)] 
 
(2) The board of directors may remove from office any director who - 
(a)      is or has become subject to any of the disqualifications mentioned in section 21; or 
(b) is absent without leave of the board of  directors for more than three consecutive 
meetings of the board without cause sufficient, in the opinion of the board to exonerate his absence. 
 
23. Appointment of officers, etc. and their conditions of service  
(1) A State Warehousing Corporation may appoint su ch officers and other employees as it considers 
necessary for the efficient performance of its functions; 
(2) Every person employed by a State Warehousing Corporation under this Act shall be subject 
to such conditions of service and shall be entitled to such remuneration as may be determined by 
regulations made by the Corporation under this Act. 
 
 
 
 
         14
24. Functions of the State Warehousing Corporation  - Subject to the provisions of this Act 
a State Warehousing Corporation may - 
(a) acquire and build godowns and warehouses at such places within the State as it may 
after consultation with  Central Warehousing Corporation, determine; 
[Notification No.GSR 807(E), File No.6-60/97-SG dtd 1.11.2001 (No.545, 29 Oct. 2001)] 
 
(b) run warehouses in the State for the stor age of agricultural produce, seeds, manures, 
fertilizers, agricultural implements and notified commodities; 
(c) arrange facilities for the transport of agri cultural produce, seeds, manures, fertilizers, 
agricultural implements and notified commodities to and from warehouses; 
(d) act  as an agent of the Central Warehousing Corporation or of the Government for the 
purposes of the purchase, sale, storage and dist ribution of agricultural produce, seeds, manures, 
fertilizers, agricultural implements and notified commodities;  
(da) enter into, with the previous approval of  the State Government, Joint Ventures with 
the Central Warehousing Corporation; and 
[Notification No.GSR 807(E), File No.6-60/97-SG dtd 1.11.2001 (No.545, 29 Oct. 2001)] 
 
(e) carry out such other functions as may be prescribed 
 
25. Executive Committee -  
(1) There shall be an Executive Committee of a State Warehousing Corporation which shall 
consist of - 
(a) the Chairman of the board of directors; 
(b) the managing director ; and 
(c) three other directors chosen in the prescribed manner of whom one shall be a director 
referred to in clause (a) of sub-section (1) of section 20. 
(2) The Chairman of the board of directors shall be the Chairman of Executive Committee. 
(3) Subject to any general or special directions as  the board of directors  may, from time to time, 
give, the Executive Committee shall be competent to deal with any matter within the competence of 
the State Warehousing Corporation. 
 
CHAPTER IV 
FINANCE, ACCOUNTS AND AUDIT 
 
26. Submission of programme of activities and financial estimates -  
(1)       Every Warehousing Corporation shall prepare before the commencement of each year a 
statement or 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) sh all, not later than three months before the 
commencement of each year, be submitted for approval. 
(a)  in the case of the Central Warehousing Corporation, to the Central Government; 
(b) in the case of a State Warehousing Corpora tion, to the Central Warehousing Corporation and 
the State Government. 
 
(3) The Statement and the financial estimate of  a Warehousing Corporation referred to in sub-
section (1) may, with the approval of the Central Government in the case of the Central Warehousing 
Corporation, or with the approval of the Central Warehousing Corporation and the State Government 
in the case of a State Warehousing Corporation, be revised by the Warehousing Corporation. 
 
         15
27. Borrowing powers of  Warehousing Corporation -  (1) A Warehousing Corporation 
may, in consultation with the Reserve Bank and w ith the previous approval of the appropriate 
Government, issue and sell bonds and debentures carrying interest for the purposes of raising funds; 
 
 Provided that the total amount of bonds and de bentures issued and outstanding and if the 
other borrowings of the Corporation shall not at any time exceed ten times the amount of the paid-up 
share capital and the reserve fund of the Corporation. 
 
(2) A Warehousing Corporation may, for the purpose of carrying out its functions under this Act, 
borrow money- 
(i) from the Reserve Bank, or 
(ii) from the State bank, for such periods fo r which, and upon any of the securities against 
which, it is authorised to advance and lend moneys , under the provisions of (the State bank of India 
Act, 1955), or 
(iii) from any nationalised bank, or 
(iv) from such insurance company, investment trust or other financial institution as may 
be approved by the Central Government in this behalf. 
(3) Subject to the provision to sub-section (i),  the Central Warehousing Corporation may borrow 
money from the Central Government and a Stat e Warehousing Corporation may borrow money from 
the State Government and the Central Warehousing Corporation on such securities and on such terms 
and conditions as may be agreed upon between the borrowing corporation and the lender, in each 
case. 
 
(4) The bonds and debentures of a Warehous ing Corporation may be guaranteed by the 
appropriate Government as to the repayment of princi pal and the payment of interest at such rate as 
may be fixed by the appropriate Government on the recommendation of the board of directors of the 
Corporation at the time the bonds or debentures are issued. 
(a) Substituted for the words "the State Bank of India Act, 1955" by the Warehousing 
Corporations (Amendment) Act, 1976 (42 of 1976), S.7 (24-3-1976). 
(b) Inserted, ibid. 
28. Deposit account - All moneys belonging to a Warehousing Corporation shall be 
deposited in the Reserve Bank or the State Bank (or any nationalised bank) or subject to any rules 
made under this Act, in (any other scheduled bank) or co-operative bank. 
(a) Inserted by the Warehousing Corporati ons (Amendment) Act, 1976 (42 or 1976 S.8 
(24-3-1976). 
(b) Substituted for the words "any scheduled bank", ibid. 
29. Investment of funds - A Warehousing Corporation may invest its funds in the 
securities of the Central or any State Government or in such other manner as may be prescribed by 
the appropriate Government. 
30. Disposal of profits -  
(1) Every Warehousing Corporation shall establish a reserve fund out of its annual net profits. 
(2) After making provision for bad and doubtful de bts, depreciation on assets and all other 
matters which are usually provided for by companies registered and incorporated under the 
Companies Act, 1956, a Warehousing Corporation ma y, out of its net annual profits declare a 
dividend. 
  
 Provided that for so long as the reserve fund is less than the paid-up share capital of the 
Central Warehousing Corporation and until there has been repair to the Central Government such 
sum, if any, as that Government may have paid  under a guarantee given in pursuance of sub-section 
(1) of section 5 or sub-section(4) of section 27, the rate of such dividend, in the case of the Central 
Warehousing Corporation shall not exceed the rate guaranteed by the Central Government u

Excerpt shown. Open the full act in Lexace.

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