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REGISTERED NO. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 1

PUBLISHED BY AUTHORITY

No, 40] NEW DELHI, FRIDAY, DECEMBER 11, 1964/AGRAHAYANA 20, 1886

Separate paging is given to this Part in order that it may be filed as a separate compilation

MINISTRY OF LAW (Legislative Department) New Delhi, the 11th December, 1964/Agrahayana 20, 1886 (Saka) The following Act of Parliament received the assent of the Pre- sident on the 10th December, 1964, and is hereby published for gene- ral information: —

THE FOOD CORPORATIONS ACT, 1964 No. 37 OF 1964

[10th December, 1964]

An act to provide for the establishment of Food Corporations for the purpose of trading in foodgrains and other foodstuffs and for matters connected therewith and incidental thereto.

BE it enacted by Parliament in the Fifteenth Year of the Republic of India as follows: —

CHAPTER I

PRELIMINARY

1. (7) This Act may be called the Food Corporations Act, 1964.

(2) It extends to the whole of India except the State of Jammu and Kashmir.

Short title, extent and com- mence- ment.

(3) It shall come into force on such date as the Central Govern- ment may, by notification in the Official Gazette, appoint

2. In this Act, unless the context otherwise requires,—

Defini- tions.

(a) "Corporation" means the Food Corporation of India established under section 3;

(369)

689 G of I. Ex—1.

(b) "Food Corporation" means the Food Corporation of India established under section 3 or a State Food Corporation established under section 17;

(c) "prescribed" means prescribed by rules made under this Act;

2 of 1934.

(d) "scheduled bank" means a bank for the time being in- cluded in the Second Schedule to the Reserve Bank of India Act, 1934;

(e) "State Food Corporation" means a State Food Corpo- ration established under section 17;

(/) "year" means the financial year.

CHAPTER II

THE FOOD CORPORATION OF INDIA

3. (1) With effect from such date as the Central Government may, by notification in the Official Gazette, specify in this behalf, the Central Government shall establish for the purposes of this Act a Corporation known as the Food Corporation of India.

Establish- ment of Food Cor. poration of India.

(2) The Corporation shall be a body corporate with the name aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property and to contract, and may, by that name, sue find be sued.

Offices and agencies.

4- (7) The head office of the Corporation shall be at Madras or at such other place as the Central Government may, by notification In the Official Gazette, specify.

(2) The Corporation may, with the previous approval of the Central Government, establish offices or agencies at other places in or nutside India.

Capital of Cor- poration.

5. (1) The original capital of the Corporation shall be such sum not exceeding one hundred crores of rupees as the Central Govern- ment may fix.

(2) The Central Government may from time to time increase the capital of the Corporation to such extent and in such manner as that Government may determine.

(3) Such capital may be provided by the Central Government from time to time after due appropriation made by Parliament by law for the purpose and subject to such terms and conditions as may be determined by that Government.

Manage- ment.

6, (/) The general superintendence, direction and management of the affairs and business of the Corporation shall vest in a board of directors which may exercise all such power? and do all such

acts and things as may be exercised or done by the Corporation under this Act.

(2) The board of directors, in discharging its functions, shall act on business principles having regard to the interests of the producer and consumer and shall be guided by such instructions on questions of policy as may be given to it 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 thereon shall be final.

7, (1) The board of directors of the Corporation shall consist of Board of directors.

the following, namely: —

(a) a Chairman;

(b) three directors to represent respectively the Ministries of the Central Government dealing with—

(i) food,

(il) finance, and

(Hi) co-operation;

(c) the managing director of the Central Warehousing Corporation established under section 3 of the Warehousing Corporations Act, 1962, ex officio;

58 of 1962.

(d) a managing director; (e) six other directors,

(2) All the directors of the Corporation other than the director referred to in clause (c) of sub-section (7) shall be appointed by the Central Government.

(3) The managing director shall—

(a) exercise such powers and perform such duties as the board of directors may entrust or delegate to him; and

(fa) receive such salary and allowances as the board of directors may, with the approval of the Central Government, fix:

Provided that the first managing director shall receive such salary and allowances as the Central Government may fix.

(4.) The term of office of, and the manner 01 filling casual vacan- cies among, the directors of the Corporation, other than the director referred to in clause (c) of cub section (1), and the other terms and conditions of appointment of the directors of the Corporation - shall, subject to the provisions of sub-section (3), be such as may be prescribed.

8. A person shall be disqualified for being appointed as, and for being, a director of the Corporation—

Disqua- lification tor office of direc- tor.

(a) if he is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with his creditors; or

(o) If he is of unsound mind and stands so declared by a competent court; or

(c) if he is or has been convicted of any offence which in the opinion of the Central Government involves moral turpi- tude; or

(d) if he has been [removed or dismissed from the service of the Government or a corporation owned or controlled by the Government; or

(e) except in the case of the Chairman or the managing director, if he is a salaried official of the Food Corporation of India or a State Food Corporation.

Removal and resig- nation of directors.

9. (1) The Central Government may, at any time, after consulta- tion with the 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 any director from office 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 from more than three consecutive meetings thereof without cause sufficient, in the opinion of the board, to exonerate his absence.

(3) A director of the Corporation may resign his office by giving notice thereof in writing to the Central Government and on such resignation being accepted, he shall be deemed to have vacated his office.

Meetings. 10. (1) The board of directors of the Corporation shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Corporation under this Act.

(2) The Chairman of the board or, if for any reason he is unable to attend any meeting, any other director elected by the directors present at the meeting, shall preside at the meeting.

(3) All questions which come up before any meeting of the board shall be decided by a majority of the votes of the directors present and voting, and, in the event of an equality of votes, the Chairman, or in his absence, the person presiding, shall have and exercise a second or casting vote.

Advisory Commit- tees.

11. (1) The CenLral Government may, in consultation with the Corporation, by notification in the Official Gazette, constitute one or more Advisory Committees consisting of such persons and on such terms and conditions as may be prescribed.

(2) It shall be the duty of any such Advisory Committee to advise the Central Government or the Corporation in regard to any matter connected with the purposes of this Act in respect of which its advice is sought by the Central Government, or, as the case may be, by the Corporation.

(3) The expenses in relation to the Advisory Committees shall

be met by the Corporation.

12. (I) The Central Government shall, after consultation with the Corporation, appoint a person to be the Secretary of the Corpo- ration.

Officers and other em- ployees of Corpora- tion.

(2) Subject to such rules as may be made by the Central Gov- ernment 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 conditions of service and the scales of pay of the officers and other employees of the Corporation shall—;

(a) as respects the Secretary, be such as may be pres-

cribed;

(b) as respects the other officers and employees, be such as may be determined by regulations made by the Corporation under this Act.

Functions of Corpora- tion, 13. (I) Subject to the provisions of th:s Act, it shall be the pri- mary duty of the Corporation to undertake the purchase, storage, movement, transport, distribution and sale of foodgrains and other foodstuffs.

(2) Subject as aforesaid, the Corporation may also, with the pre-

vious approval of the Central Government,-—

(a) promote by such means as it thinks fit the production

of foodgrains and other foodstuffs; ,

(b) set up, or assist in the setting up of, rice mills, flour mills and other undertakings for the processing of foodgrains and other foodstuffs; and

(c) discharge such other functions as may be prescribed or as arc supplemental, incidental or consequential to any of the functions conferred on it under this Act.

14. (1) The board of directors of the Corporation may constitute an Executive Committee which shall consist of—

(a) the Chairman of the board;

(b) the managing director; and

Executive Commit- tee and other commit- tees.

(c) three other directors, of whom one shall be a non- official.

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

(3) Subject to the general control, direction end superintend- ence of the board of directors, the Executive Committee shall be competent to deal with any matter within the competence of the Corporation.

(4) The board of directors may constitute such other commit- tees, whether consisting wholly of directors or wholly of other per- sons or partly of directors and partly of other persons as it thinks fit, for such purposes as it may decide-

(5) A committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the Corporation under this Act.

(6) The members of a committee (other than the directors of the board) shall be paid by the Corporation such fees and allowances as may be fixed by it by regulations made under this Act for attend- ing the meetings of the committee and for attending to any other work of the Corporation.

15. A member of the beard oE directors of the Corporation or a Member cri board ot commit- tee thereof not to vote in certain cases.

committee thereof who has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the board of directors or committee thereof, shall, as soon as possible after rele- vant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and the disclosure shall be recorded in the minutes of tho board or the committee, as the case may be, and the member shall not take any part in any deliberation or deci- sion of the board or committee with respect to that matter.

CHAPTER III

BOARDS OF MANAGEMENT

i Boards of [ Manage- L ment, their 16. (1) The Central Government may, on a request received in this behalf from the Slate Government or Governments concerned or otherwise, by notification in the Official Gazette, establish a Board of Management for a State or two or more contiguous States, if no State Food Corporation is functioning in such State or States.

' constitu- tion and functions.

(2) The head office of the Board of Management shall be at such place as the Central Government may, by notification In the Official Gazette, specify.

(3) The Board of Management shall consist of—

(a) a Chairman to he appointed by the board of directors of the Food Corporation of India;

(b) the senior-most executive officer of the said Corporation

employed at the head office of the Board of Management; and

(c) not more than ten other members to be appointed by

the board of directors of the said Corporation.

(4) The members of a Board of Management referred to in clauses (a) and (c) of sub-section (3) shall hold office for a term of two years and shall be eligible for re-appointment and the other terms and conditions of their appointment shall be such as may be pres- cribedJ

(5) The Board of Management shall advise the Corporation on such matters as may be generally or specifically referred to it and shell perform such other functions as the Corporation may dele- gate to it.

(6) The provisions of sections 20, 21 and 25 shall, so far as may- be, apply in relation to the members of a Board of Management as they apply in relation to the members of the board of directors of a State Food Corporation:

Provided that the reference to the General Manager in clause (e)

of section 20 shall be construed as a reference to the officer nf the Corporation referred to in clause (b) of sub-section (3).

(7) The Food Corporation of Tndia may, after consultation with a Board of Management, appoint such staff as it considers necessary to enable that Board to perform its functions under this Act.

(S) The Board of Management may, by order in writing, autho- rise any one or more of its members to exercise and perform, sub- ject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions as it may think fit.

(9) The Board of Management shall follow such procedure as may be provided by regulations made by the Food Corporation of India under this Act.

• !

(10) Where a Board of Management has been established—

(i) for a State, or

(ii) for two or more States,

then such Board shall stand dissolved—

(a) in the case referred to in clause (/), on the establish- ment of a Food Corporation for that State, and

(b) in the case referred to in clause (ii), on the establish- ment of such Corporation for any one or more of such States.

(11) Where a Board of Management stands dissolved under clause (b) of sub-section (70), the Central Government may estab- lish D new Board of Management for the State or States for which no Food Corporation has been established.

(72) The expenses of the Board of Management in the discharge of its functions under this Act p-ball be met by the Food Corpora- tion of IndiaJ

CHAPTER IV

STATE FOOD CORPORATIONS

17. (1) The Central Government mey, by notification in the Official Gazette and after consultation with the Government of a State, establish a Fond Corporation for that State under such neme as may be specified in the notification.¹

Establish- ment of State Food Corpora- tion.

Capital of State Food Cor- poration.

(2) The Central Government may, after such consultation, from time to time increase the capital of the State Food Corporation to such extent and in such manner as that Government may determine.

(3) Such capital shall be provided—

(a) by the Central Government after due appropriation

made by Parliament by law for the purpose, and

(b) by the Food Corporation of India,

in such proportion and subject to such terms and conditions as may be determined by the Central Government.

Manage- ment of State Food Cor- poration.

19. (7) The general superintendence, direction and management of the affairs and business of a State Food Corporation shall vest in a board of directors which shall consist of a Chairman, a General Manager and not more than ten other members, all of whom shall be appointed by the Food Corporation of India after consultation with the Central Government end the State Government.

(2) The General Manager shall—

(a) exercise such powers and perform such duties as the

board of directors may entrust or delegate to him; and

{b) receive such salary and allowances and he governed by such terms and conditions of service as the board of direc- tors may, in consultation with the Food Corporation of India, fix.¹

;

(3) The board of directors, in discharging its functions, shall act on business principles having regard to the interests of the producer and consumer and shall be guided by such instructions on questions of policy as may be given to it by the Food Corporation of India.

(4) If any doubt arises as to whether a question is or is not a question of policy, the matter shall be referred to the Central Gov- ernment whose decision thereon shall be final.

(5) The members of the board of directors, other than the General Manager, shall be entitled to receive by way of remunera- tion or fees such sums as may be prescribed:

Provided that no official member shall be entitled to receive any remuneration other than any allowances admissible to him under the rules regulating his conditions of service.

(6) The term of office of, end the manner of filling casual vacan- oies among, the members of the board of director^ shall be such as may be presorfbed.

889 G of I Ex.—2.

20. A person shall be disqualified for being appointed a", and for being, a member of the board of directors of a State Food Cor- poration—

(a) if he is, or at any time has been, adjudicated insolvent or has suspended payment of his debts or has compounded with hia creditors; or

Disquali- fication for office of member of board of direc- tora,

(b) if he Is of unsound mind and stands so declared by a competent court; or

(c) if he is or has been convicted of any offence which in the opinion of the Central Government Involves moral turpi- tude; or

-

(d) if he has been removed or dismissed from the service of the Government or a corporation owned or controlled by the

; '

{ Government; or

(e) except in the case of the Chairman or the General Manager, if he is a salaried official of the Food Corporation of India or a State Food Corporation.

21. (7) Ttie Food Corporation of India may, at any time, after consultation with the State Food Corporation, remove the General Manager from office after giving him a reasonable opportunity of showing cause against the proposed removal.

Removal and re- signation of mem. bersoi board of directors, (2) The board of directors of a State Food Corporation may re- move from office any member of that board who—

(a) is or has become subject to any of the disqualifications mentioned in section 20, or

(b) is absent without leave of the board of directors from more than three consecutive meetings thereof without cause sufficient, In the opinion of the board, to exonerate his absence.

(3) A member of such board may resign his office by giving notice thereof in writing to the Food Corporation of India and on such resignation being accepted, he shall be deemed to have vacated his office.

Meeting!, 22. (/) The board of directors of a State Food Corporation shall meet at such times and places and shall observe such rules of proce- dure in regard to the transaction of business at its meetings (in- cluding the quorum at meetings) as may be provided by regulations made by that Corporation under this Act.

(2) The Chairman of the board of directors or, if for any rea2on he is unable to attend any meeting, any other member of the board elected by the members of the board present at the meeting, shall preside at the meeting.

(3) All questions which come up before any meeting of the board of directors shall be decided by a majority of the vote* of the members present and voting, and, in the event of an equality of votes, the Chairman or in his absence, the person presiding shall have and exercise a second or casting vote.

23. (I) A State Food Corporation may appoint such officers and other employees as it considers necessary for the efficient perform- ance of its functions.

Appoint- ment of officers, etc., and their condi- tions of aervice.

(2) Every person employed by a State Food 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 that Corporation under this Act.

24. (7) The board of directors of a State Food Corporation may constitute an Executive Committee which shall consist of—

(a) the Chairman of the board of directors;

(b) the General Manager; and

Execu- tive Com- mittee and othtr commits tees.

(c) three other members of the board of directors, of whom one shall be a non-official.

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

(3) Subject to the general control, direction and superintendence of the board of directors, the Executive Committee shall be com- petent to deal with any matter within the competence of the State Food Corporation.

(4) The board of directors may constitute such other committees, whether consisting wholly of members of the board or wholly of other persons or partly of such members and partly of other persons as it thinks fit, for such purposes as it may decide.

(b) A committee constituted under this section shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including the quorum at meetings) as may be provided by regulations made by the State Food Corporation under this Act.

(6) The members of a committee (other than the directors of the board) shall be paid by the State Food Corporation such fees and allowances as may be fixed by it by regulations made under this Act, for attending the meeting of the committee and for attending to any other work of that Corporation.

25. A member of the board of directors of a State Food Corpora- Member of board or com- mittee thereof not to vote in certain easeo.

tion or a committee thereof who has any direct or Indirect pecuniary interest In any matter coming up for consideration at a meeting of the board of directors or committee thereof, shall, as soon as possi- ble after relevant circumstances have come to his knowledge, dis- close the nature of his interest at such meeting and the disclosure shall be recorded In the minutes of the board or the committee, as the case may be, and the member shall not take any part in any deliberation or decision of the board or the committee with respect to that matter.

CHAPTER V

FINANCE; ACCOUNTS AND AUDIT

26. (2) A Food Corporation shall, before the commencement of each year, prepare a statement of programme of its activities during the forthcoming year aa well as a financial estimate in respect thereof.

(2) The statement prepared under sub-section (1) shall, not leas than three months before the commencement of each year, be sub- mitted for approval—

, i

Submis- sion of pro. gramme of activities and finan- cial esti- mates.

(a) in the case of the Food Corporation of India, to thft

Central Government;

j

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

Corporation of India.

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

27. (1) A Food Corporation may, for the purpose of carrying out its functions under this Act, take advances against stocks of food- grains or other foodstuffs held by it, or borrow money—

Borrow- ing powers of Food Corpora* Hon.

(i) from any scheduled bank, or (ii) from any other bank or financial institution approved

by the Central Government in this behalf.

(2) The Central Government may guarantee the loans and advances taken by a Food Corporation under sub-section (I) as to the repayment of principal and the payment of interest thereon and other incidental charges.

28. A Food Corporation may lend or advance money to any per- •on engaged In the production of foodgrains upon the security of foodgrains or such other security as may be prescribed, for any pur- pose connected with such production.

Lending by Food Corpora- tion on security of food- grains.

29. (1) A Food Corporation may enter into agreement with any grower of foodcrops for the purchase of foodgrains after the har- vest of such crops and any such agreement may provide thet any sum payable by the Corporation to the grower under such agree- ment shall be payable to any scheduled bant or other financing agency nominated by the grower in this behalf to such extent as may be specified in the agreement.

Power to enter Into agree- ment for purchase of food, grains after harvest (2) The scheduled bank or other financing agency referred to In sub-section (1) may, on the basis of any agreement referred to In that sub-section, lend money to a grower of foodcrops who has entered into such agreement.

30. A Food Corporation may, upon such terms and conditions as it may think fit, guarantee any loan referred to in sub-section (2) of section 29, and also any other loan raised by a grower of foodcrops, which is re-payable within a period not exceeding five years.

Guaran- tee by Food Corpora- tion.

31. (I) A Food Corporation shall have its own fund and all re- ceipts of the Corporation shall be credited thereto and all payments of the Corporation shall be met therefrom.

Funds of Food Corpora- tion.

(2) Such fund shall be applied for meeting all administrative expenses of the Food Corporation and for carrying out the purposes of this Act.

32. A Food Corporation may invest Its funds in the securities of the Central Government or any State Government or in such other manner as may be prescribed.

Invest- ment of funds.

33. (1) A Food Corporation shall establish a reserve fund to which shall be credited every year such portion of its annual net \ profits as that Corporation thinks fit.

Alloca- tion of surplus profits.

(2) After making provision for such reserve fund and for bad and doubtful debts, depreciation in assets and all other matter*

1 of 1856.

which are usually provided for by companies registered and incor- porated under t he Companies Act, 1956, t he balance of ita annual net profits shall be paid—

¹ (a) In the case of the Food Corporation of India, to th" Central Government, and

I

(ib) in the case of a State Food Corporation, to the Central Government and the Food Corporation of India in the same pro- portion as the capital provided by them.

Accounts and audit.

34. (1) A Food Corporation shall maintain.proper accounts and other relevant records and prepare an annual statement of accounts including the profit and loss account and the balance sheet in such form as may be prescribed.

(2) The accounts of a Food Corporation shall be audited by auditors duly qualified to act as auditors of companies under section 226 of the Companies Act, 1&56.

l of 1958.

(3) The auditors shall be appointed annually by the Food Cor- poration from among a list of auditors approved by the Central Government on the advice of the Comptroller and Auditor-General of India. , ,

(4) The auditors shall be supplied with a copy of the annual balance sheet and the profit and loss account of the Food Corporation and it shall be their duty to examine them together with the accounts and vouchers relating thereto, and they shall have a list delivered to them of all books kept by the Corporation and shall at all reason- able times have access to the books, accounts and other documents of the Corporation and may require from any officer of the Corpora- tion such information and explanations as the auditors may think necessary for the performance of their duties as auditors.

(5) The auditors shall send a copy of their report together with an audited copy of the accounts to the Food. Corporation concerned and to the Central Government and, where the accounts relate to a State Food Corporation, also to the Food Corporation of India.

35L (1) A Food Corporation shall, as soon as possible after the end of each year, submit to the Central Government an annual report on the working and affairs of the Corporation.

Annual report on the work- ing of Food Corpora- tion!.

(2) The Central Government shall, as soon as may be after the receipt of such report, cause such report and the audit report received under section 34 to be laid before both Houses of parliament,

CHAPTER VI

MISCELLANEOUS

38. (I) No act or proceeding of a Food Corporation ttr a com- mittee thereof or a Board of Management shall be invalid by reason only of the existence of any vacancy in, or any defect in the constitution of, the board of directors of the Food Corporation or such committee or Board of Management.

Vacancies, etc., not to invali- date acts or pro- ceedings of Food Corpora- tion, etc. (2) No act done by any person acting in good faith as a member of a board of directors of a Food Corporation or of a Board of Management shall be deemed to be invalid by reason only of his disqualification for being appointed as, or for being, a member of such board of directors or Board of Management.

Delega-

tion.

37. A Food Corporation may, by general or special order In writing, delegate to the Chairman or any other member of the board of directors or the Secretary or other officer of the Corporation, subject to such conditions and limitations, if any, as may be specified in the order, such of its powers and functions under this Act as it may deem necessary.

Declara- tion of fidelity and secrecy.

38. Every director, member of an Advisory Committee or other committee, auditor, officer or other employee of a Food Corporation and every member of a Board of Management and its staff shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form set out in the Schedule.

Indem- nity of direc- tors.

39. (I) Every member of the board of directors of a Food Cor- poration and of a Board of Management shall be indemnified by the Corporation against all losses and expenses incurred by him In the discharge of his duties except such as are caused by his own wilful act or default.

(2) A member of the board of director* of a Food Corporation or a Board of Management shall not be responsible for any other member or for any officer or other employee of the Corporation or Board of Management or for any loss or expense resulting to the Corporation from the insufficiency or deficiency of value of, or title to, any property or security acquired or taken on behalf of the Corporation in good faith, or by the Insolvency or wrongful act of any person under obligation to the Corporation or by anything done in good faith, In the execution of the duties of his office or la rftlstlon thereto.

Protec- tion of action taken under this Act.

40. No suit or other legal proceeding shall He against a Food Corporation or any member of the board of directors thereof or any officer or other employee thereof or any member of a Board of Management or its staff or any other person authorised by a Food Corporation or a Board of Management to discharge any functions under this Act for any loss or damage caused or likely to be caused by anything which/ Is in good faith done or intended to be done In pursuance of this Act.

Offences. 41. (1) Whoever, without the consent in writing of a Food Corpo- ration, uses its name in any prospectus or advertisement, si all be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

(2) No court shall take cognizance of any offence under sub- section (1) except on a complaint in writing by an officer authorised in this behalf by the Food Corporation concerned.

43 of 1061 Provision relating to income- tax, super- tax, etc.

42. For the purposes of the Income-tax Act, 1961, or any other enactment for the time being in force relating to income-tax, super- tax or any other tax on Income, profits or gains, a Food Corporation shall be deemed to be a company within the meaning of the Income- tax Act, 1961, and shall be liable to tax accordingly on its income, profits and gains.

43. No provision of law relating to the winding up of companies or corporations shall apply to a Food Corporation and it shall not be placed In liquidation save by order of the Central Government 4nd in such manner as that Government may direct.

Winding up of Food Corpora- tion.

44. (1) The Central Government may, by notification in the

Official Gazette, make rules to carry out the purposes of this Act. Power to make rules.

(2) Without prejudice to the generality of the foregoing power,

such rules may provide for—

(a) the term of office of, and the manner of filling casual vacancies among, and the other terms and conditions of appoint- ment of, the directors of the Corporation;

(b) the composition of Advisory Committees and the terms

and conditions of service of members thereof;

(c) the additional functions which the Corporation may

perform;

(d) the remuneration or fees payable to the members of the board of directors of a State Food Corporation and the term of office of, and the manner of filling casual vacancies among, such members;

(e) the securities (other than foodgrains) upon which a Food Corporation may lend or advance money;

(f) the manner in which a Food Corporation may invest its funds;

(g) the form of the annual statement of accounts and the balance sheet to be prepared by a Food Corporation;

(h) any other matter which has to be or may be prescribed-

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

Power of Food Corpora- tion to- make regula- tions.

45. (1) A Food Corporation may, with the previous sanction of the Central Government, by notification in the Official' Gazette, make regulations not inconsistent with this Act and the rules made thereunder, to provide for all matters for which provision is neces- sary or expedient for the purpose of giving effect to the provisions of this Act.

(2) Without prejudice to the generality of the foregoing power, such regulations may provide for—

(a) the methods of appointment, the conditions of service and the scales of pay of the officers and employees of a Food Cor- poration, other than the Secretary of the Food Corporation of India;

(b) the duties and conduct of officers and employees of a Food Corporation, other than the Secretary aforesaid;

(c) the functions and duties which may be entrusted or delegated to the managing director or, as the case may be, the General Manager, of a Food Corporation;

(d) the times and places at which meetings of a Food Cor- poration or any committee thereof shall be held and the proce- dure to be followed thereat;

6S9 G of I Ex—8.

(e) the fees and allowances payable to the members of a committee under sub-section (6) of section 14 or sub-section (6) of section 24;

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

(3) The Central Government may, by notification in the Official Gazette, rescind any regulation which it has sanctioned and there- upon such regulation shall cease to have effect.

(4) Any regulation which may be made by the Food Corporation of India under this Act may be made by the Central Government within three months from the establishment of that Corporation and any regulation which may be made by a State Food Corpora- tion under this Act may be made by the Food Corporation of India within three months from the establishment of such State Food Corporation; and any regulation so made may be altered or rescind- ed by the Food Corporation concerned in the exercise of its powers under this Act.

THE SCHEDULE

(See section 38)

DECLARATION OF FIDELITY AND SECRECY

I,

, declare that I will faith- fully, truly and to the best of my judgment, skill and ability execute and perform the duties which are required of me as director, member of committee, officer, employee or auditor (as the case may be) of the Food Corporation of India

i__ _. or as member of the Board of Management Food Corporation

at _ under the Food Corporation of India and which properly relate to the office or position in or in relation to that Corporation held by me.

I further declare that I will not communicate or allow to be communicated to any person not legally entitled thereto any infor- mation relating to the affairs of the said Corporation or to the

affairs of any person having any dealing with the said Corporation nor will I allow any person not legally entitled as aforesaid to inspect or have access to any books or documents belonging to, or in the possession of, the said Corporation and relating to the business of the said Corporation or the business of any person having any dealing with the said Corporation

(Signature)

Signed before me.

R. C. S. SARKAR,

Secy, to the Govt, of India.

PRINTEJI IN INDIA BY THE GENERAL MANAGER, GOVERNMENT OF INDIA PRESS, MINTO I/IWYD, NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS, DELHI, 1 9 64