REGISTERED No. D. 221

The Gazette of India

EXTRAORDINARY

PART II—Section 2

PUBLISHED BY AUTHORITY

No. 44]

NEW DELHI, FRIDAY, SEPTEMBER 4,1970/BHADRA 13, 1892

Separate paging is given to this Part in order that it may be filed

as a separate compilation.

LOK SABHA

The following Bill was introduced in Lok Sabha on the 4th Septem-

ber, 1970: —

BILL No. 95 OF 1970

A Bill to provide for the establishment of a corporation, for the purpose

of acquiring, distributing and selling milk and milk products in the

Union territory of Delhi and other areas and for matters connected

therewith or incidental thereto.

BE it enacted by Parliament in the Twenty-first Year of the Republic

of India as follows: —

CHAPTER I

PRELIMINARY

1. (1) This Act may be called the Delhi Milk Supply Corporation Act,

1970.

(2) It extends to the Union territory of Delhi and to the territories of

the States of Gujarat, Haryana, Rajasthan and Uttar Pradesh and such

other territories as the Central Government may, by notification in the

Official Gazette, specify in this behalf and different notifications may be

made in respect of different territories.

(3) It shall come into force on such date as the Central Government

may, by notification in the Official Gazette, appoint.

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

(a) "Corporation" means the

Delhi Milk Supply Corporation

(855)

Short

title, ex-

tent and

com-

mence-

ment.

Defini-

tions

856

THE GAZETTE OF INDIA EXTRAORDINARY

[PABT II

(b) "Delhi Milk Scheme" means the scheme made by the ad hot

Milk Board constituted by the Resolution of the Government of Indif

in the Ministry of Food and Agriculture, No. 27-74/56-LS., dated the

17th August, 1956 (published at page 283, Part I, Section 1 of the

Gazette of India of the 25th August, 1956) for ensuring an adequate

supply of milk and milk products of good quality at a reasonable

price;

assigned to them in or under the Prevention of Food Adulteratior

Act, 1954;

(d) "prescribed" means prescribed by rules made

under this

Act;

(e) "scheduled bank" means a bank for the time being included

in the Second Schedule to the Reserve Bank of India Act, 1934;

(f) "year" means the financial year.

CHAPTER II

DELHI MILK SUPPLY CORPORATION

3. (1) With effect from such date as the Central Government may, by

notification in the Official Gazette specify in this behalf, there shall be

established, lor the purposes of this Act, a Corporation to be known as the

Delhi Milk Supply Corporation.

(2) The Corporation aforesaid shall be a body corporate, having

perpetual succession and a common seal with power, subject to the pro-

visions of this Act, to acquire, hold and dispose of property and to con-

tract, and may by its name sue and be sued.

4. (1) The head office of the Corporation shall be at New Delhi or at

such other place as the Central Government may, by notification in the

Official Gazette, specify.

(2) The Corporation may establish offices or agencies at other places

*n or outside the Union territory o:f Delhi.

5. (7) The original capital of the Corporation shall be such sum,

not exceeding seven crorea of rupees, as the Central Government may

determine and such capital shall stand allotted to, and vested in, the

Central Government.

(2) All non-recurring expenditure incurred by the Central Govern-

ment for, or in connection with, the Delhi Milk Scheme up to the date

of establishment of the Corporation, and declared to be the capital ex-

penditure by that Government, shall be treated as a part of the paid-up

capital provided by the Central Government to the Corporation.

(3) The Central Government may provide, by way of loan, any

further capital that may be required by the Corporation for the carry-

ing on of the business of the Corporation or for any purpose connected

therewith on iuch terms and conditions as the Central Government

may determine.

Establish-

ment of

Delhi Milk

Supply

Corpora-

tion.

Head

office,

offices and

agencies.

Capital ol

Corpora-

tion.

37 of 1954,

2 of 1934.

SEC. 2]

THE GAZETTE OF INDIA EXTEAORDlNAltY

&$7

6. (I) The Corporation may, for the purpose

carrying

out ito

functions under this Act, take advances against stocks of milk or milk

products held by it or borrow money from—

(a) any scheduled bank; or

(b) any other bank or banking institution approved by the Cen-

tral Government in this behalf.

(2) The Central Government may guarantee the advances taken or

monies borrowed by the Corporation under sub-section

(7) as to The

repayment of principal and the payment of interest thereon and other

incidental charges.

7. (1) All assets owned or acquired by the Central Government for

the purposes of the Delhi Milk Scheme before the establishment of the

Corporation shall, on such establishment, vest in the Corporation.

(2) For the purposes of sub-section (1), assets acquired by the Cen-

tral Government for the purposes of the Delhi Milk Scheme shall

deemed to include rights, powers, authorities and privileges and all pro-

perty, movable and immovable, cash balances, reserve funds, investments

and all other rights and interests arising out of such property as were

immediately before the establishment of the Corporation in the owner-

whip, possession, power or control of the Central Government for the

purpose of the Delhi Milk Scheme, and all books of account, registers,

records and all other documents of whatever nature relating thereto and

shall also be deemed to include all borrowings, liabilities and obligations

of whatever kind then subsisting of the Central Government in relation

to the Delhi Milk Scheme.

(3) If any question arises as to whether any assets

were

owned,

possessed, held or controlled by the Central Government for the purposes

of the Delhi Milk Scheme, or whether any right, obligation or liability

was acquired or incurred by the Central Government for the purposes ot

the Delhi Milk Scheme, the same shall be decided by the Central Gov-

ernment.

8. If, on the date of establishment of the Corporation, any suit, appeal

or other proceeding of whatever nature, is pending by or against the

Central Government for, or in connection with, the Delhi Milk Scheme,

the same shall not abate, be discontinued or be in any way prejudicially

affected by reason of the transfer of the assets of the Delhi Milk Scheme

to the Corporation and the Corporation shall, in every such suit, appeal or

proceeding, become substituted in place of the Central Government and

after such substitution the suit, appeal or other proceeding may be con-

tinued, prosecuted or enforced by or against the Corporation.

CHAPTER III

DUTIES AND TOWERS OF THE CORPORATION

9. (1) Subject to the rules, if any, made by the Central Government

in this behalf, it shall be the primary duty of the Corporation to carry on

all or any of the following business, namely, acquisition, supply or sale

of milk and milk products and storage, movement, transport or distri-

bution of milk or milk products.

Power of

Corpora-

tion to

borrow

money.

Vesting of

proper-

ties in

Corpora-

tion.

Substitu-

tion of

Corpora-

tion In

suits or

proceed-

ings.

Business

of Corpo-

ration,

858

THE GAZETTE OF INDIA EXTRAORDINARY

[PABX II

(2) In particular, and without prejudice to the generality

the

turegoing powers, the Corporation shall have power to—

(a) ensure an adequate supply ul good milk and milk products

at a reasonable price;

(£>) promote and encouiage, by such means as it may think fit,

the production or supply, or both, oi milk and milk products;

milk products sold or supplied by it conforms to the standards of

purity laid down by or under any law for the time being in force;

(d) fix

the prices at which milk or milk

products

may

purchased or sold by it and its blanches or agencies;

{e) fix commissions, salaries or other remuneration payable to

the persons employed by it;

(f) acquire milk or milk products from such sources as it may

think fit;

(g) enter into and perform all such contracts as are calculated

to further the efficient performance of its obligations under this Act;

(h) set up, or assist in the setting up of, any industry for pro-

cessing milk or foi the manufacture of any milk product;

(i) perform any functions as agent or contractor in relation to

any milk or milk product sold or distributed by any other person;

(j) provide tor the Irunspnri, storage and preservation of milk

acquired by it from the different collecting centres;

(Jc) sanction, without prior reference to the Central Govern-

ment, capital expenditure ot a sum not exceeding fifteen lakhs of

rupees;

(I) discharge such other Junctions as may be prescribed or as

are supplemental, incidental or consequential to any of the functions

conferred on it by or under this Act.

CHAPTER IV

MANAGEMENT

Id- (1) The general superintendence, direction and management of

the affairs and business ot the Corporation shall ve.st in a Board of Direc-

tors, which ma . exercise all such powers and do all such acts and things

as may be e^eicised or done by the Corporation under this Act.

(2) In discharging its Lunrifau^.s, the Board of Directors 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 bv the Central Government.

11. (1) The Board of Directors of the Corporation (hereinafter refer-

red to as the "Board") shall consist of the following, namely: —

(a) a Chairman;

(b) two members to represent the Ministry of the Central Gov-

ernment dealing with Agriculture;

Central Government dealing with—

(i) co-operation, and

Manage-

ment of

affairs and

business

of Cor- -

poratkm.

Board of

Directors.

SKC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

859

(h) finance;

(d) four members to represent respectively the Delhi Adminis-

tration, Lhu Government of the State of Haryana, the Government oi

the State of Rajasthan and the Government of the State of

Uttar

Pradesh;

(e) Chairman, National Dairy Development Board;

(f) Animal Husbandry

Commissioner

to the Government of

India m the Department of Agriculture;

((/) Joint Commissioner (Dairy Development) to the Govern-

ment of India in the Department, of Agriculture;

(h) one Managing Director.

(2) All the memhirs ol the Board shall be appointed by the Centra]

Government.

(3) The Managing Director shall—

(a) exercise such powei.-> and peilorm such duties as the Board

may entrust or delegate to him; and

(h) receive such salary and allowances and be

governed

-such t. tms and conditions as the Board may, with the approval of

the Central Government, determine:

Provided that the first Managing Director shall receive such salary

and allowances as the Central Government mav fix.

12. The members oL' xhe Board, other than the Managing Director, shall

be entitled to receive by wo\ ot remuneration or tees, such sums as may

he prescribed:

Provided that no official member shall be entitled

to receive

any

remuneration other than any allowance admissible to him under the rules

regulating hi? conditions of service.

13- The term of office oi, tmd 1he manner of lilling casual

vacancies

among, the members of the Board shall be such as may be prescribed.

14. (1) The Central Government may, if it is of opinion that

it is

expedient in the interests of the Corporation so to do, after consultation

with the Corporation, remove ibe Managing Director from office

after

giving

him

reasonable

opportunity of showing cause against the

proposed removal.

(2) A member of the Board 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 vacnten" his office.

15. (]) The Board may constitute an

Executive

Committee

which

shall consist of —

(a) the Chairman of the Board, who shall be the Chahman of the

Executive Committee;

(t>) the Managing Director: and

Members

of Board

to receive

) emune-

ration,

etc.

Term of

office, etc.,

of Board

of Direc-

tors.

Removal

and resig-

nation of

Directors.

Executive

Commit-

tee.

860

THE GAZETTE OF INDIA EXTRAORDINARY

[PAHT II

(2) Subject to the general control, direction and superintendence of

the Board, the Executive Committee shall be competent to deal with any

matter within the competence of the Corporation.

16. A member of the Board, who has any direct or indirect pecuniary

interest in any matter coming up for consideration at a meeting of the

Board, shall, as soon as possible after relevant 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 the meeting of

the

Board and the member shall not take any part in any deliberation

decision of the Board or committee with respect to that matter.

17. (I) The Board 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 members

thereof

present and voting, and, in the event of an equality of votes, the Chair-

man, or in his absence the person presiding, shall have and exercise a

second or casting vote.

18. No act or proceeding of the Board or any committee thereof shall

be invalid merely by reason of the existence of any vacancy in, or any

defect in the constitution of, the Board or such committee.

CHAPTER V

FINANCE, ACCOUNTS AND AUDIT

19. (1) The Corporation shall have its own funds and all receipts of

the Corporation shall be credited thereto and all payments of the Cor-

poration shall be made therefrom.

(2) Such funds shall be applied for meeting all administrative ex-

penses of the Corporation and for carrying out the purposes of this Act.

•

20. The Corporation shall cause its books to be closed and balanced

on the 31st day of March of each year.

21. (1) After the closure of accounts each year, the Corporation shall

appoint, with the previous approval of the Central Government, an audi-

tor for the audit of the said accounts.

(2) The auditor appointed by the Corporation shall be a person who

is qualified to act as an auditor of a company under section 226 of the

Companies Act, 1956, and shall receive such remuneration as the Corpora-

tion may, in consultation with the Central Government, fix.

(3) The auditor shall be supplied with a copy of the annual balance-

sheet and the profit and loss account of the Corporation and a list of all

books kent bv the Corporation, and it shall be the duty of the auditor to

Vacancies

etc., not

to invali-

date pro-

ceedings

of Board

or com-

mittees.

Funds of

Corpora-

tion.

Closure oj

accounts.

Appoint-

ment of

auditor.

1 of 1056,

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

861

examine the balance-sheet and the profit and loss, account

with the

accounts and vouchers relating tnereto, and in tne performance

ol his

duties, the auditor—

(a) shall have, at all reasonable times, access to

the

books

accounts and other documents ol uie Corporation;

(b) may, at the expense of the Corporation, employ accountant!

or other persons to assist him in investigating such accounts; and

(c) may, in relation to such accounts, examine the

Managing

Director or any officer or employee 01 the Corporation.

(4; Trie auditor oi the Corporation shall make a report to the Cor-

poration upon the. annual balance-sheet and tne profit and loss accounts

and in every such report shall state—

(a) whether or not, in his opmion, the balance-sheet is a full anc

fair balance-sheet containing all the necessary particulars and is pro-

perly drawn up so as to exhibit a true and fair view of the affairs oJ

the Corporation, and in case he had called for any explanation 01

information, whether it has been given and whether it is satisfactory

(b) whether or not the transactions of the Corporation, whicr.

have come to his notice, have been within the powers of the Corpora-

tion;

and

agencies of the Corporation have been found adequate for the purpose

of his audit;

(d) whether or not the profit and loss account shows a

tru«

balance of profit and loss for the period covered by such account; and

(e) any other matter which he considers should be brought tc

the notice of the Corporation.

(5) The report of the auditor shall be verified, signed and transmitted

to the Corporation in such manner as may be prescribed.

22. After making provision for bad and doubtful debts, depreciation

in assets, contributions to staff and superannuation funds and all othei

matters for which provision is necessary under any law, or which are

usually provided for by companies under the Companies Act, 1956, the

Corporation shall transfer the balance of its profits to a reserve fund to

be established by the Corporation.

CHAPTER VI

TRANSFER OF EMPLOYEES TO THE CORPORATION

23. (I) On the establishment of the Corporation, it shall be lawful for

the Central Government to transfer, by order and with effect from such

date or dates as may be specified in the order, to the Corporation any

person employed by that Government for the purposes of the Delhi Milk

Scheme:

Provided that no order under this sub-section shall be made in relation

to any person employed by the Central Government for the purposes of

the Delhi Milk Scheme, who has, in respect of the proposal of the Cen-

tral Government to transfer him to the Corporation, intimated, within

such time as may be specified in this behalf by that Government,

his

intention of not becoming an employee of the Corporation.

l o U 950.

Surplus

profits.

Special

provisions

for trans-

fer of

employees

to Corpo-

ration.

862

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

(2) An officer or other employee transferred by an order made under

sub-section (1) shall, on and from the date of transfer, cease to be an

employee of the Central Government and become an

officer

or other

employee oi' the Corporation with such designation as the Corporation

may determine and shall, subject to the provisions of sub-sections (3),

(4) and (5), be governed by the regulations made by the Corporation

under this Act as respects remuneration and other conditions of service

including pension, leave and provident fund, and shall continue to be an

officer or other employee of the Corporation unless and until his employ-

ment is duly terminated by the Corporation,

(3) Every officer or other employee transferred by an order made

under sub-section (1) shall, within six months from the date of transfer,

exercise his option in writing to be governed,—

(a) by the scale of pay applicable to the post held by him under

the Central Government immediately before the date of transfer or

by the scale of pay applicable to the post under the Corporation

to which he is transferred,

(b) by the leave, provident fund, retirement or other terminal

benefits admissible to officers or other employees of the Central

Government in accordance with the rules and orders of the Central

Government as amended from time to time or the leave, provident

fund or other terminal benefits admissible to the officers or other

employees of the Corporation under the regulations made by the

Corporation under this Act,

and such option, once exercised, shall be final:

Provided that the option exercised by an officer or other employee

under clause (a) shall be applicable only in respect of the post to which

such officer or employee is transferred to the Corporation and in the event

of his appointment to a higher post under the Corporation, he shall be

eligible only for the scale of pay applicable to such higher post:

Provided further that it immediately before the date of his transfer

any such officer or other employee is officiating in a higher post under the

Central Government either in a leave vacancy or in any other vacancy

of a specified duration, his pay, on transfer, shall be protected for the

unexpired period of such vacancy and thereafter he shall be entitled to

draw, at his option, pay in the scale of pay applicable to the post under

the Central Government to which he would have reverted or to the scale

of pay applicable to the post under the Corporation to which he is trans-

ferred:

Provided also that when an officer or other employee serving in the

Department of the Ministry of the Central Government dealing with the

Delhi Milk Scheme is promoted to officiate in a higher post in that De-

partment subsequent to the transfer to the Corporation of any other officer

or employee senior to him in that Department before such transfer, the

officer or other employee who is promoted to officiate in such higher

post shall, on transfer to the Corporation, be entitled only to the scale of

pay applicable to the post he would have held but for such promotion

or the scale of pay applicable to the post under the Corporation to which

he is transferred, whichever he may opt.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

863

(4) No officer or other employee transferred by an order made undei

sub-section (1),—

(a) shall be dismissed or removed by an authority subordinate to

that competent to make a similar or equivalent appointment under

the Corporation as may be specified in the regulations made by the

Corporation under this Act;

(b) shall be dismissed or removed or reduced in rank except

tunity of making a representation on the penalty proposed, but only

him and given a reasonable opportunity of being heard in respect of

those charges and where it is proposed, after such inquiry, to impose

on him any such penalty, until he has been given a reasonable oppor-

tunity of making a representation on the penalty proposed, but only

on the basis of the evidence adduced during such inquiry:

Provided that this clause shall not apply,—

(i) where an officer or other employee is dismissed or re-

moved or reduced in rank on the ground of conduct which has

led to his conviction on a criminal charge; or

(ii) where the authority empowered to dismiss or remove

an officer or other employee or to reduce him in rank is satisfied

that for some reason, to be recorded by that authority in writing,

it is not reasonably practicable to hold such inquiry; or

(in) to an officer or other employee who, after transfer to

the Corporation, is appointed to a higher post under the Corpora-

tion in response to an open advertisement and in competition

with outsiders.

(5) If, in respect of any such officer or other employee as aforesaid,

a question arises whether it is reasonably practicable to hold such inquiry

as is referred to in sub-section (4), the decision thereon of the authority-

empowered to dismiss or remove him or to reduce him in rank shall be

final.

(6) Nothing contained in sub-section (1) shall apply to the members

of the Central Secretariat Service or any other Service or to persons on

deputation to the Department referred to in that sub-section or to any of

its attached or subordinate offices from any Ministry of the Central Gov-

ernment or from any State Government or from any organisation-

CHAPTER VII

MISCELLANEOUS

24. Any reference to the Delhi Milk Scheme in any law, other than R

this Act, or in any contract or other instrument, shall be construed, on^ei

the establishment of the Corporation, as a reference to the Corporation.

25. Every Chairman, member of the Board, member of the Executive s

Committee, auditor, officer or other employee of the Corporation shall, D

before entering upon his duties, make a declaration of fidelity and secrecy ti<

in the form set out in the Schedule.

fl<

26. (1) Every member of the Board shall be indemnified by the Cor- *^l

poration against all losses and expenses incurred by him in, or in relation nj

to, the discharge of his duties except such as have been caused by his

own wilful act or default.

Refer-

ence to

Delhi

Milk

Scheme

Declara-

tion of

fidelity

and

secrecy.

Indem-

nity.

864

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

(2) A member of the Board shall not be responsible for any action

taken or anything done by any other member of the Board or by any

officer or other employee of the Corporation or for any loss or expense

resulting to the Corporation from the insufficiency or deficiency of the

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 in relation there-

to.

27. No suit or other legal proceeding shall lie against the Corporation

or any member of the Board thereof or any member of the Executive

Committee, or any officer or other employee of the Corporation or any

other person authorised by the Corporation 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 under or in

pursuance of this Act.

M. (1) Whoever, without the consent in writing of the Corporation,

uses its name in any prospectus or advertisement, shall be punishable

with imprisonment for a term which may extend to six months, OT 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 be-

half by the Corporation.

29. For the purposes of the Income-tax Act, 1961, or any other enact-

' ment for the time being in force relating to income-tax, super-tax or any

other tax on income, profits or gains, the Corporation shall be deemed

to be an Indian company and a company in which public are substantially

interested and shall be liable to tax accordingly on its income, profits and

gains.

JO. No provision of law relating to the winding up of companies or

corporations shall apply to the Corporation and it shall not be placed in

liquidation save by order of the Central Government and in such manner

as that Government may direct.

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

Gazette, make rules to carry out the provisions of this Act.

(2) In particular, and without prejudice to the generality of the fore-

going powers, such rules may provide for—

(a) the purchase, sale, storage, transportation or distribution o:

milk or milk products by the Corporation;

(b) the term of office of the members of the Board and the man

ner of filling vacancies among th e members of the Board;

other than the Managing Director, shall be entitled to receive iron

the Corporation;

(d) the manner of verification and signature of the report of th<

auditor and the manner of transmission of such report to the Corpo

ration; and

(e) such other matters as may be, or are required to be, prescrib

«4.

Protec-

tion of

action

taken in

good

faith.

Offences.

provision

relating to

income-

tax, etc.

Winding

up of

Corpora-

tion.

Power to

make

rules.

43 of 19Q1.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

865

(3) Every rule made by the Central Government under this Act shall

be laid as soon as may be after it is made, before each House of Parlia-

ment 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 fol-

lowing, 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.

32. (1) The Corporation may, with the previous sanction of the Cen-

tral Government, by notification in the Official Gazette, make regula-

tions not inconsistent with the provisions of this Act and the rules made

thereunder, to provide for all matters for which provision is necessary

or expedient for the purpose of giving effect to the provisions of this Act.

(2) In particular, and without prejudice to the generality of the fore-

going powers, such regulations may provide for—

(a) the method of appointment, the conditions of service and

the scales of pay of the officers and other employees of the Corpora-

tion;

(b) the duties and conduct of officers and employees of the

Corporation;

ed to the Managing Director;

(d) the times and paces at which meetings of the Board o'r the

Executive Committee thereof shall be held and the procedure to be

followed thereat;

(e) the fees and allowances payable to the members of the Exe-

cutive Committee;

(/) generally, the efficient conduct of the affairs of the Corpora-

tion.

(3) The Central Government may, by

notification

the

Official

Gazette, rescind any regulation which it has sanctioned and thereupon

such regulation shall cease to have effect.

(4) Any regulation which may be made by the Corporation under this

Act may be made by the Central Government within three months from

the establishment of the Corporation and any regulation so made may,

subject to the provisions of sub-section (3), be altered or rescinded by

the Corporation in the exercise of its powers under this Act.

33. (I) The 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.

(2) The Central Government shall, as soon as may be after the receipt

of such report, cause such report and the audit report received by Jt to be

laid before both Houses of Parliament,

Power to

make

regula-

tions.

Annual

Report

866

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

THE SCHEDULE

(See section 25)

DECLARATION OF FIDELITY AND SECRECY

, do hereby declare that I will faithfully, truly and to the

best of my skill and ability execute and perform the duties required of

me as Chairman, member of the Board, member of the Executive Com-

mittee, auditor, officer or other employee (as the case may be) of the

Delhi Milk Supply Corporation and which properly relate to the office

or position in the said Delhi Milk Supply Corporation held by me.

I further declare that I will not communicate or allow to be communi-

cated to any person not legally entitled thereto any information relating

to the affairs of the Delhi Milk Supply Corporation or to the affairs of

any person having any dealing with the Delhi Milk Supply Corporation;

nor will I allow any such person to inspect or have access to any books or

documents belonging to or in the possession of the Delhi Milk Supply

Corporation and relating to the business of any person

having any

dealing with the Delhi Milk Supply Corporation.

SEC. 2]

THE GAZETTE OF INDIA EXTRAORDINARY

867

STATEMENT OF OBJECTS AND REASONS

The Delhi Milk Scheme which was hitherto being run on a depart-

mental basis by the Ministry of Food, Agriculture, Community Develop-

ment and Co-operation (Department of Agriculture) has been operat-

ing at a loss, since its inception. It need not be gainsaid that it is an

unenviable plight for a commercial organisation like the Delhi Milk

Scheme. With a view to meeting this situation and to impart a degree of

flexibility in its operation, it has been decided to convert the Delhi Milk

Scheme into a Statutory Corporation. The Bill seeks to give effect

the said decision.

The paid-up capital of the Corporation shall be an amount not exceed-

ing rupees seven crores as the Central Government may determine. This

amount will be equal to the value of the assets on the date of conversion

of Delhi Milk Scheme into Statutory Corporation (estimated to be Rs. 3.60

crores as on 1st of April, 1970). All non-recurring capital expenditure

incurred by the Central Government for Delhi Milk Scheme shall be

treated as a part of the paid-up capital provided by the Central Govern-

ment to the proposed Corporation.

The entire paid-up capital of the

Corporation shall be held by the President of India. In addition, Central

Government may also advance loan to the Corporation from time to time

as working capital.

The functions of the Corporation will be mainly to ensure adequate

supply of good milk and milk products, conforming to the standards of

purity laid down under any law, for the time being in force, at a reason-

able price. The Corporation has also been empowered to borrow money

from a scheduled bank or any other banking institution approved by the

Central Government. Repayment of the money borrowed by the Cor-

poration will be guaranteed by the Central Government.

NEW DELHI;

The 10th August, 1970.

ANNASAHIB P. SHINDE.

PRESIDENT'S RECOMMENDATION UNDER ARTICLES 117 AND 274

OF THE CONSTITUTION OF INDIA

[Copy of letter No. 3-2|70-LD.I, dated the 22nd August, 1970 from Shri

Annasahib P. Shinde, Minister of State in the Ministry of Food, Agri-

culture, Community Development and Co-operation to the

Secretary,

Lok Sabha.]

The President having been informed of the subject matter of the Bill

to provide for the establishment of a corporation, for the purpose of

acquiring, distributing and selling milk and milk products in the Union

Territory of Delhi and other areas and for matters connected therewith

or incidental thereto, recommends under Article 117(1) and (3) of the

Constitution of India read with Article 274(1) thereof, the introduction

of the Delhi Milk Supply Corporation Bill, 1970, in the Lok Sabha and

also the consideration of the Bill by the Lok Sabhe.

868

THE GAZETTE OF INDIA EXTRAORDINARY

[PART II

STATEMENT OF OBJECTS AND REASONS

The initial paid-up capital of the Delhi Milk Supply Corporation shall

be an amount not exceeding Rs. 7 crores as the Central Government may

determine [Clause 5(1) of the Bill]. This amount will be equal to the

value of the assets on the date of conversion of Delhi Milk Scheme into

a Statutory Corporation (estimated as Rs. 3.60 crores as on 1st of April,

1970). In addition, the Central Government may provide such further

capital as may be required by the Corporation for carrying on the busi-

ness of the Corporation or for any purpose connected therewith on such

terms and conditions as the Central Government may determine [Clause

5(3) of the Bill]. The Central Government may also advance loan to

the Corporation from time to time as working capital.

2. All assets and non-recurring expenditure of capital nature incurred

by the Central Government for or in connection with the Delhi Milk

Scheme up to the actual date of the establishment of the Corporation

shall be treated as a part of the paid-up capital provided by the Central

Government to the Corporation [Clause 5(2) and Clauses 7(1) and 7(2)

of the Bill].

3- The Central Government may also guarantee the advances taken or

monies borrowed by the Corporation from any scheduled bank or any

other bank or banking institutions approved by the Central Government

as to the repayment of the principal and the payment of the interest

thereon and other incidental charges [Clause 6(2) of the Bill]. The ulti-

mate liability arising out of such a guarantee is not expected to exceed

Rs. 8 crores.

4. Inasmuch as the Corporation is to take over completely the assets

and liabilities of the Delhi Milk Scheme and consequently that of the

liability on this account will accrue to the Central Government (Clause 7

of the Bill), Similarly, pay and allowances of the staff and pensionary

and provident fund liability will also be borne by the Corporation, except

in the case of those employees who do not opt to serve the Corporation

in terms of the provisions contained in Chapter VI of the draft Bill. On

the assumption that 90 per cent of the staff would opt to come under the

Corporation, the liability of the Central Government in respect of the

remaining 10 per cent of the staff will not exceed Rs. 50 lakhs being the

capitalised value of the liability on account of pension and

provident

fund spread over 15 years plus Rs. 10 lakhs per annum on account of pay

and allowances of the remaining staff.

SEC. 2J

THE GAZETTE OF INDIA EXTRAORDINARY

860

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 31 of the Bill empowers the Central Government to make rules

to give effect to the provisions of the Act. The matters in respect of

which ruch rules may be made relate to the purchase, sale, storage, trans-

portation or distribution of milk or milk products by the Corporation

and also the term of offl.ce of the members of the Board and the remu-

neration and fees to be paid to them, etc.

Clause 32 of the Bill empowers the Corporation to make, with the

previous sanction of the Central Government, regulations, not inconsis-

tent with the provisions of the Act and the rules made thereunder. The

power of making regulations is confined to the appointment of officers

and employees of the Corporation, their duties and functions and also

the duties and functions which may be entrusted or delegated to the

Mariaging Director, regulation of the meetings of the Board of the Exe-

cutive Committee and the fees and allowances payable to the members

of the Executive Committee.

All these relate to matters of detail or procedure and as such the dele-

gation of legislative power is of a normal character.

Secretary.

PRINTED BY T1IE GENERAL MANAGER, GOVERNMENT OF INDIA l'RESS, MINTO ROAD,

NEW DELHI AND PUBLISHED BY THE MANAGER OF PUBLICATIONS, DELHI. 1970