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Warehousing (Development and Regulation) Act, 2007

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<p>The Government of India enacted the [http://wdra.nic.in/Warehouse_Act_2007_New.htm Warehousing  (Development and Regulation) Act, 2007] (WDR Act),  which came into force from the 25 October 2010. The Central Government  constituted [http://wdra.nic.in/default.htm Warehousing  Development and Regulatory Authority] (WDRA) on  the 26 October 2010 for implementation of the provisions of the Act.</p>
 
<p>The Government of India enacted the [http://wdra.nic.in/Warehouse_Act_2007_New.htm Warehousing  (Development and Regulation) Act, 2007] (WDR Act),  which came into force from the 25 October 2010. The Central Government  constituted [http://wdra.nic.in/default.htm Warehousing  Development and Regulatory Authority] (WDRA) on  the 26 October 2010 for implementation of the provisions of the Act.</p>
 
<p>&nbsp;</p>
 
<p>&nbsp;</p>
 
<p><strong>Objectives  of the WDR Act 2007 </strong></p>
 
<p><strong>Objectives  of the WDR Act 2007 </strong></p>
 +
 
<p>  The main objectives of the Warehousing (Development and  Regulation) Act, 2007 are to make provisions for the development and regulation  of warehouses, negotiability of warehouse receipts,  establishment of a [http://wdra.nic.in/ Warehousing  Development and Regulatory Authority] (WDRA) and  related matters. </p>
 
<p>  The main objectives of the Warehousing (Development and  Regulation) Act, 2007 are to make provisions for the development and regulation  of warehouses, negotiability of warehouse receipts,  establishment of a [http://wdra.nic.in/ Warehousing  Development and Regulatory Authority] (WDRA) and  related matters. </p>
 +
<p>&nbsp;</p>
 
<p><strong>Features of  Warehousing (Development and Regulation) Act, 2007</strong></p>
 
<p><strong>Features of  Warehousing (Development and Regulation) Act, 2007</strong></p>
 +
 
<ul>
 
<ul>
 
   <li><strong>Regulation  of warehousing business</strong></li>
 
   <li><strong>Regulation  of warehousing business</strong></li>
 
</ul>
 
</ul>
 
<p> No person shall commence or carry on  the business of warehousing for issuing negotiable warehouse receipts unless he  has obtained a registration certificate from the WDRA after fulfilling the  prescribed norms in respect of the concerned warehouse or warehouses.</p>
 
<p> No person shall commence or carry on  the business of warehousing for issuing negotiable warehouse receipts unless he  has obtained a registration certificate from the WDRA after fulfilling the  prescribed norms in respect of the concerned warehouse or warehouses.</p>
 +
 
<ul>
 
<ul>
 
   <li><strong>Accreditation  and Registration of warehouses</strong></li>
 
   <li><strong>Accreditation  and Registration of warehouses</strong></li>
 
</ul>
 
</ul>
 
<p>The WDRA regulates and registers the  warehouses in the country. Only a warehouse registered with WDRA can issue Negotiable  Warehouse Receipts  (NWRs). </p>
 
<p>The WDRA regulates and registers the  warehouses in the country. Only a warehouse registered with WDRA can issue Negotiable  Warehouse Receipts  (NWRs). </p>
 +
 
<p>WDRA follows a rigorous process of  scrutiny before registering a warehouse. The process involves accreditation  before registration with WDRA. WDR Act 2007 provides for appointment of  independent accredited agencies for accreditation of warehouses meeting norms  specified by WDRA. The warehouse should apply to an accreditation agency of its  choice for issuance of an accreditation certificate.  WDRA-approved accreditation agencies are  required to make annual visits to the registered warehouses to ensure continued  compliance with prescribed requirements.</p>
 
<p>WDRA follows a rigorous process of  scrutiny before registering a warehouse. The process involves accreditation  before registration with WDRA. WDR Act 2007 provides for appointment of  independent accredited agencies for accreditation of warehouses meeting norms  specified by WDRA. The warehouse should apply to an accreditation agency of its  choice for issuance of an accreditation certificate.  WDRA-approved accreditation agencies are  required to make annual visits to the registered warehouses to ensure continued  compliance with prescribed requirements.</p>
 +
 
<p>The WDRA has stipulated certain   specifications  for registration of warehouse. Some of them are as follows:</p>
 
<p>The WDRA has stipulated certain   specifications  for registration of warehouse. Some of them are as follows:</p>
 +
 
<ul>
 
<ul>
 
   <li>Warehouses need to be constructed as  per Bureau of Indian Standards (BIS) specifications. Accreditation agencies  have some discretion in relaxing the specifications without compromising  storage worthiness of the warehouses. </li>
 
   <li>Warehouses need to be constructed as  per Bureau of Indian Standards (BIS) specifications. Accreditation agencies  have some discretion in relaxing the specifications without compromising  storage worthiness of the warehouses. </li>
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   <li>Warehouses should have positive net  worth certified by a Chartered Accountant or creditworthiness certificate from  a scheduled bank for individual warehouse or for its organisation. </li>
 
   <li>Warehouses should have positive net  worth certified by a Chartered Accountant or creditworthiness certificate from  a scheduled bank for individual warehouse or for its organisation. </li>
 
</ul>
 
</ul>
 +
<br>
 +
 
<ul>
 
<ul>
 
   <li><strong>Special  Provisions for Registration of warehouses of Primary Agricultural Cooperative  Societies (PACSs)</strong></li>
 
   <li><strong>Special  Provisions for Registration of warehouses of Primary Agricultural Cooperative  Societies (PACSs)</strong></li>
 
</ul>
 
</ul>
 
<p> In order to help the farmers to avail  themselves the benefits under the interest subvention scheme, the WDRA has  simplified the process of registration of warehouses belonging to Primary  Agricultural Cooperative Societies in close proximity to the farmers.</p>
 
<p> In order to help the farmers to avail  themselves the benefits under the interest subvention scheme, the WDRA has  simplified the process of registration of warehouses belonging to Primary  Agricultural Cooperative Societies in close proximity to the farmers.</p>
 +
 
<ul>
 
<ul>
 
   <li><strong>Introduction  of NWR System in cold storages</strong> <strong></strong></li>
 
   <li><strong>Introduction  of NWR System in cold storages</strong> <strong></strong></li>
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</ul>
 
</ul>
 
<p>As per the Act, as on January 2016, WDRA  has notified 123 [http://wdra.nic.in/Agricultural_Commodities.pdf agricultural commodities] including cereals, pulses, oilseeds, vegetable oils, spices, edible nuts and  miscellaneous items like rubber, tobacco, tea, coffee, makhana etc. for issuing  NWRs. 26 [http://wdra.nic.in/Horticultural_commodities.pdf horticultural commodities],  such as Potato, Dehydrated Onion, Garlic, Ginger, Turmeric, Apples and Resins  etc. have also been notified for issuing NWRs by cold storages.</p>
 
<p>As per the Act, as on January 2016, WDRA  has notified 123 [http://wdra.nic.in/Agricultural_Commodities.pdf agricultural commodities] including cereals, pulses, oilseeds, vegetable oils, spices, edible nuts and  miscellaneous items like rubber, tobacco, tea, coffee, makhana etc. for issuing  NWRs. 26 [http://wdra.nic.in/Horticultural_commodities.pdf horticultural commodities],  such as Potato, Dehydrated Onion, Garlic, Ginger, Turmeric, Apples and Resins  etc. have also been notified for issuing NWRs by cold storages.</p>
 +
 
<ul>
 
<ul>
 
   <li><strong>Addressing  Concerns of Stakeholders </strong></li>
 
   <li><strong>Addressing  Concerns of Stakeholders </strong></li>
 +
 
 
</ul>
 
</ul>
 
<p>The Act makes the warehouseman  liable for loss of, or injury to, goods caused by his failure and also provides  for compensation to the depositor of the goods </p>
 
<p>The Act makes the warehouseman  liable for loss of, or injury to, goods caused by his failure and also provides  for compensation to the depositor of the goods </p>
 +
 
<p>The Act also provides for punishment  if the warehouseman knowingly issues a negotiable warehouse receipt without  taking the actual physical delivery of the goods or without reasonably  satisfying himself that the number, weight or grade of the goods corresponds to  the number, weight or grade specified in the warehouse receipt.</p>
 
<p>The Act also provides for punishment  if the warehouseman knowingly issues a negotiable warehouse receipt without  taking the actual physical delivery of the goods or without reasonably  satisfying himself that the number, weight or grade of the goods corresponds to  the number, weight or grade specified in the warehouse receipt.</p>
 
<p>&nbsp;</p>
 
<p>&nbsp;</p>
 +
 
<p><strong>Functioning of WDRA </strong></p>
 
<p><strong>Functioning of WDRA </strong></p>
 
<p>  Whenever any warehouse feels the need for issuing NWRs  either because of demand from its consumers or due to competition, it  approaches the WDRA for accreditation. The authority then sends a team of  inspectors who judge the warehouse on various parameters like, whether the  construction has been according to norms, does it have trained staff, is it  equipped with modern pest control and fumigation facilities, its net worth,  security, fire-fighting and goods weighing facilities. If the team is satisfied  with the conditions, then WDRA issues a booklet containing the NWRs. The  warehouse then issues these receipts to customers (farmers and people who have  stored their produce in the godowns) in place of the normal receipt. As these  receipts are recognised by the government, banks can easily grant loans against  them. The farmer gets an officially recognised receipt against which he can  take loan from bank for further farming activities or alternatively sell his  produce to a third person by endorsing the receipt, without even taking  physical possession. </p>
 
<p>  Whenever any warehouse feels the need for issuing NWRs  either because of demand from its consumers or due to competition, it  approaches the WDRA for accreditation. The authority then sends a team of  inspectors who judge the warehouse on various parameters like, whether the  construction has been according to norms, does it have trained staff, is it  equipped with modern pest control and fumigation facilities, its net worth,  security, fire-fighting and goods weighing facilities. If the team is satisfied  with the conditions, then WDRA issues a booklet containing the NWRs. The  warehouse then issues these receipts to customers (farmers and people who have  stored their produce in the godowns) in place of the normal receipt. As these  receipts are recognised by the government, banks can easily grant loans against  them. The farmer gets an officially recognised receipt against which he can  take loan from bank for further farming activities or alternatively sell his  produce to a third person by endorsing the receipt, without even taking  physical possession. </p>
 
  
  
  
 
==Also See==
 
==Also See==
*Negotiable Warehouse Receipts (NWRs)
+
*[http://www.arthapedia.in/index.php?title=Warehouse_Receipts#ref1 Warehouse Receipts]
*Warehousing  (Development and Regulation) Act, 2007
+
*[http://www.arthapedia.in/index.php?title=Negotiable_Warehouse_Receipts_(NWRs) Negotiable Warehouse Receipts (NWRs)]
 +
 
 +
 
 +
==References==
 +
*[http://wdra.nic.in/ http://wdra.nic.in/]
 +
 
  
 
==Contributed by==
 
==Contributed by==

Latest revision as of 07:47, 4 February 2016

The Government of India enacted the Warehousing (Development and Regulation) Act, 2007 (WDR Act), which came into force from the 25 October 2010. The Central Government constituted Warehousing Development and Regulatory Authority (WDRA) on the 26 October 2010 for implementation of the provisions of the Act.

 

Objectives of the WDR Act 2007

The main objectives of the Warehousing (Development and Regulation) Act, 2007 are to make provisions for the development and regulation of warehouses, negotiability of warehouse receipts, establishment of a Warehousing Development and Regulatory Authority (WDRA) and related matters.

 

Features of Warehousing (Development and Regulation) Act, 2007

 No person shall commence or carry on the business of warehousing for issuing negotiable warehouse receipts unless he has obtained a registration certificate from the WDRA after fulfilling the prescribed norms in respect of the concerned warehouse or warehouses.

The WDRA regulates and registers the warehouses in the country. Only a warehouse registered with WDRA can issue Negotiable Warehouse Receipts (NWRs).

WDRA follows a rigorous process of scrutiny before registering a warehouse. The process involves accreditation before registration with WDRA. WDR Act 2007 provides for appointment of independent accredited agencies for accreditation of warehouses meeting norms specified by WDRA. The warehouse should apply to an accreditation agency of its choice for issuance of an accreditation certificate.  WDRA-approved accreditation agencies are required to make annual visits to the registered warehouses to ensure continued compliance with prescribed requirements.

The WDRA has stipulated certain   specifications for registration of warehouse. Some of them are as follows:


 In order to help the farmers to avail themselves the benefits under the interest subvention scheme, the WDRA has simplified the process of registration of warehouses belonging to Primary Agricultural Cooperative Societies in close proximity to the farmers.

The WDRA in consultation with the National Horticulture Mission (NHM) and National Horticulture Board (NHB) has introduced negotiable warehouse receipt system in cold storages so that the growers/farmers producing horticultural produce may store these commodities in cold storages and may avail the benefits of loan against NWRs issued by the registered cold storages.

As per the Act, as on January 2016, WDRA has notified 123 agricultural commodities including cereals, pulses, oilseeds, vegetable oils, spices, edible nuts and miscellaneous items like rubber, tobacco, tea, coffee, makhana etc. for issuing NWRs. 26 horticultural commodities, such as Potato, Dehydrated Onion, Garlic, Ginger, Turmeric, Apples and Resins etc. have also been notified for issuing NWRs by cold storages.

The Act makes the warehouseman liable for loss of, or injury to, goods caused by his failure and also provides for compensation to the depositor of the goods

The Act also provides for punishment if the warehouseman knowingly issues a negotiable warehouse receipt without taking the actual physical delivery of the goods or without reasonably satisfying himself that the number, weight or grade of the goods corresponds to the number, weight or grade specified in the warehouse receipt.

 

Functioning of WDRA

Whenever any warehouse feels the need for issuing NWRs either because of demand from its consumers or due to competition, it approaches the WDRA for accreditation. The authority then sends a team of inspectors who judge the warehouse on various parameters like, whether the construction has been according to norms, does it have trained staff, is it equipped with modern pest control and fumigation facilities, its net worth, security, fire-fighting and goods weighing facilities. If the team is satisfied with the conditions, then WDRA issues a booklet containing the NWRs. The warehouse then issues these receipts to customers (farmers and people who have stored their produce in the godowns) in place of the normal receipt. As these receipts are recognised by the government, banks can easily grant loans against them. The farmer gets an officially recognised receipt against which he can take loan from bank for further farming activities or alternatively sell his produce to a third person by endorsing the receipt, without even taking physical possession.


Also See


References


Contributed by

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