 bill no 95 of 1170 tile delhl milk supply corporation bill, 1970 arrangement of clauses chapter i preliminary clauses1 short title, extent and commencement 2 definitions  chapter ii delhi milk supply corporation3 establishment of delhi mil~ supply corporation 4 head office, offices and agencies 5 capital of corporation 6 power of corporation to borrow money 7 vesting of properties in corporation 8 substitution of corporation in suits or proceedings  chapter iii duties and powers of the corpora'ilon9 business of corporation  chapter iv management10 management of affairs and business of corporation 11 board of directors 12 members of board to receive remuneration, etc 13 term of office, etc, of bl)ard of directors 14 removal and resignation of directors 15 executive committee 16 members <jf board not to vote in certain cases 17 meetings 18 vacancies, etc, not to invalidate proceedings of board or committees  chapter v finance, accounts and auditclauses 19 funds of corporation 20 closure of accounts 2l appointment of auditor 22 surplus profits  chapter vi transfer of employees to me corporation23 special provisions for transfer of employees to corporation  chapter vii miscellaneous24 reference to delhi milk ~heme 2s' declaration of fidelity and secrecy 26 indemnity 27 protection <tfaction taken in good faith 28 offences 29 provision relating to in~9me-tax, etc 30 winding up of corporation 3l power to make rules 32 power to make regulations 33 annual report the schedule  billto provide jew the establishment cyf a eorpcwati07i: tor the purpowe' ttf acquiring, distributitlb and selling mijlk and milk products in the untort territory 01 delhi and other c11"tas and' few mtitte-;, cotinetted tf\ere'with (h mcide9ttdlfhe'teto be it enacted by parliament in the twenty·first year of the repubue of fn'tiia tis fonows:- chapter i preliminaby, 1 (1) this act may be called the delhi milk supply ctwpi'll'atfoft ad, short 1970 title, exientand (2) it extends to the union terr:tory of delhi and to the territories of comthe state3 of gufarat, haryana, rajal!ltita!! al'ld utta¥ pr~h and such mence_ 6th~ territories as the central govetrtment ~ by' ~tmc&tiorr in· ti'ie ment 10 metal oa'zefte, specify ift this betlalf: aiftd' cdlfei-ait ~b!i!t ~ m made' ift r~t of different territories: (3) it shall come into force on such date as the c'entral c;"ovemment may, by notification in the official gazette, appoint 2: in this act, unless the context otllerwise requires,-deftdi-(or ''€ei'pgi!8tiol1'' meam the: established under section 3; delhi mtui &apply coi'99r~ tionl (b) "delhi milk scheme" means the scheme made by the ad hoc milk board constituted by the resolution of the government of india in the ministry of food· and agriculture, no 27-74156-ls, dated the 17th august, 1956 (published at page 283, part i, section 1 of the gazette of india of tl:le 25th august, 1956) for ensuring an adequate s supply of milk and milk products of good quality at a reasonable price; (c) "milk" and "milk products" have the meanings respectively assigned to them in or under the prevention of food adulteration 37 of 1954 act, 1954; 10 (d) "prescribed" means prescribed by rules made under this act; (e) "scheduled ban~" means a bank for the time being included in the second schedule to the reserve bank of india act, 1934; 2 of 1934 (1) "year" means the financial year is  chapter ii delm milk supply corporation3 (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, for the purposes of this act, a corporation to be known as the 20 delhi milk supply corporation establishmentol delhi milk supply corporaoffices and tion (2) the corporation aforesaid shall be a body corporate, 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 its name sue and be sued 25 head office, alencies 4 (1) the head office <1f the corporation shall be at new delhi or at such other place as the central government may, by notificat~on in the official gazette, specify (2) the corporation may establish offices or agencies at other places in or outside the union territory of delhi 30 ----  capital of' corporation 5 (1) the original capital of the corporation shall be such sum, ~ exceeding seven crores of rupees, as the central government may determine and such capital shall stand allotted to, and vested in, the central government (2) au non-recurring expenditure incurred by the central govern- 35 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 expenditure 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 40 further capital that may be required by the cor:poration for the carrying od of the business of the corporation or for any purpose connected therewith oil lueh terms and conditious as the ceatr81 g01'ernment may determine 8 (1) the corporation may, for the purpose of carrying· out ita functions under thls act, take advances agamst stocks of milk or milk products held by it or borrow money from-power of coliporation to borrow money (a) any sch(;duled bank; or 5 (0) any other bank oj' banking institution approved by the cen· tral liovernment in tills behalf (2) the central government may guarantee the advances taken or mouies borrowed by the corpora'tion under sub-section (1) as tu the repayment of princ:lpal and the payment of interest thereon and other 10 incidental c:harges 7 (1) all asse~s owned 01' acquired by the central government for vestinlof the purposes of the delhi mdk scheme before the establishment of the proper-corporation shall, on such establishment, vest in the corporation ties in corpora-(2) for the purposes of sub-section (1), assets acquired by the cen- tion j5 tral gove~nt for the purposes of the delhi milk scheme ihali be deemed to include rights, powers, authorities and privileges add au property, 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-20 ship, possession, power or control of the central government for the purpose of the delhi milk scheme, and all books of account, registers, rec:ords 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 2s to the delhi milk sc:heme  (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 of 30 the delhi milk scheme, the same shall be decided by the central government substitution of· corporation in suits or proceedings 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, 3s the same shall not abate, be discontinued or be in any way prejudicially affected by reason of the transfer of the assets oi 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-40 tinued, prosecuted or enforced by or against the corporation  chapter iii duties and powers of the corporation9 (1) subject to the rules, if any made by the central government business in this behalf, it shall be the primary duty of the corporation to carry on of corpo-4s all or any of the following business, namely, acquisition, supply or sale ration, of milk and milk products and storage, movement, transport or distribution of milk or milk products , (j), in particular, and without prejudice to the generality of the foregamg powers, the corporation shall have power t~ (4) ensure an adequate supply of good milk and milk products at a reasonable price; (b) promote and encourage, by such means as it may think fit, s the proci1lction or supply, or both, of milk and milk preduet&; (c) ensure, by such means as it may think fit, that the milk or ,milk products sold or supplied by it conforms to the standards of ~ty laid down by or under any law for the time being in force; (d) fix the prices at which milk or milk products :may be 10 purchased or sold by it and its branches or agencies; (e) fix commissions, salaries' or other remuneration payable to the persons employed by it; i (f) acquire milk or milk products from such sources as it may tjrlnk it; (9) enter into and perfonn, all such contracts as are calculated 'to further the efficient performance of its obligations under tfiis act; (h) set up, or assist in the setting up of, any industry for processing milk or for the manufacture of any milk product; (ij perfoj:m any functiollj as agent or contractor in relatiod 0 ao any milk or milk prodlact sold or distributed by any other pet:son~ (j) provide fot the transport, storage and preservation of milk aoquired by it from the different collecting centres; (k) sanction, without prior reference to the central goverhment, capital expenditure of a sum not exceeding fffteen lakhs of zs npees; (1) discharge such other funetions as may be prebcribed at' as ate supp~ental, incidental or consequential to any of the functions co~ed on it by or under this' act  chapter iv management10 (1) the general superintendence, ~ection and management of the aftaiq and buliness of the corporation shall vest in a board of direetors, which may exercise all such powers and do all such acts and things manallmenta! aftaira and business of corporation board of directors as may be exercised or done by the corporation under this act 3s (2) in discharging its functions, the board of directors shall aet on business principles having regard to the interests of the producer and eomumer and sbal be guided by such instructions on questions of policy as may be given to it by the central government, 11 (l) the board of directors of the corporation (hereinafter refer- 40 red to as the "board") shall consist of the following, namely:-(4) a chairman; (b) twa members to represent the ministry of the central government dealing with agriculture; (c) two members to represent respectively the ministries of the 4s central government dealing' with-(i) co-operation, and (ii) finance; (d) four members to represent respectively the delhi administration, the government <1f the state of haryana, the government of the state of rajasthan and the government of the state of uttar pradesh; (e) chairman, national dairy development board; (f) annual husbandry commissioner to the government of 'india in the department of agriculture; 10 (g) j<rlnt commissioner (dairy development) to the government of india in the department of agriculture; (h) one managing director (2) all the members of the board shall ba appointed by the central goverrunent (3) the managing director shall-is (a) exercise such powers and perform such duties as the board may entrust or delegate to him; and (b) receive such salary and allowances and be governed by 8utth terms and -conditions as the board may, witlithe approfll1 of the central government, determine: 20 provided that the f\rst managing director shall receive such salary and allowances as the central government may fix  - 12 the members of the board, other than the managing director, shall j4emberi be entitled to receive, by way of remuneration or fees, such sums as may ~ ~ve be prescribed: remune-2s provided that no official member shall be entitled to receive any ration, remuneration other than any allowanc~ admissible to him under the rules etc regulating his conditions of service 13 the term of office of, and the manner of filling casual vacancies term of among, the members of the board shall be such as may be pres('rfbed oftlce~ • ot board oidinc:-tora removal and resig_ nationot director  30 16 (1) the central government may, if it is of opinion that it is expedient in the interests of the corporation so to do, after consu~tation with the corporation, remove the managing director from of!\ceafter giving him a reasonable opportunity of shwing cause against the proposed removal 3s (z) a member of the 'board may resign hib office by giving notice thereof in writing to the central government and on auch resignatien 1;>eing accepted, he shall be deemed to have vacated his office '15 (1) the board may constitute an executivecommltteeyrhich shall consist of -executive committee (a) the chairman of the board, who shall be the chairman of the executive committee; (b) the m~naging director; and (c) three other members of the board (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 members of board not to vote in certain cases 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 s 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 or decision of the board or committee with respect to that matter 10 meetings 17 (1) the board shall meet at such times and places and shall observe such rules of procedure in regard tq' 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 is attend any meeting, any o1:her 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- 20 man, or in his absence the perwn 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, <yr any defect in the constitution of, the board or such committee 2s vacancies, etc, not toinvalidateproceedings of board oreammitteee  chapter v finance, accounts and auditfundeof corporation 19 (1) the corporatic'n shall have its own funds and all receip~ of the corp<yration shall be credited thereto and all payments of the corporation shall be made therefrom 30 (2) such funds shall be applied for meeting all administrative expenses of the corporation and for carrying out the purposes of thls ad closure of accounts 20 the corporatiq'n shall cause its books to be closed and balance'd on the 31st day of march of each year appointmentol auditor %1 (1) after the closure of accounts each year, the corporation shall 35 appoint, with the previous approval of the central g<yvernment, an auditor 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- 40 1 of 1966 tion may, in consultation with the central government, fix (3) the auditnr shall be supplied with a copy of the annual balancesheet and the profit and loss account of the corporation and a list of all books kept by the corporation, and it shall be the duty of the auditor to eixamine the balance-sheet and the profit and loss account with th' acoouilts' and vouchers relating thereto, add in the performance of his duties, the auditor-' (a) shall have, at all reasonable times, access to the books, ,accounts and other documents 01 the corpora~ion; s ~b) may, at the expense of the corporation, employ accountants or other 'persons to assist him in illvestigating such account; and ' (c) may, in relation to such accounts, examine the managing director or any officer o't employee of the corporation (4) the auditor of the corporation shall make a report to the cor-10 pora,tiop, ~pon the annual balance-sheet and the profit and loss accqifts ancji~n el/~ry ,such report shall state-,  \    (a) whether or ,not, in his opal'1iqn, ule b~lance-lih~etis ~ full al:lq fair oalance-sheet containing all the necesliary particulars and is pro-, ,pedy cuawn up so as to exhibit a true and fair view of t~e affairs of is tolle co'rporation, adq in case he had called ~9r ajly explanaijad or imfqrmation, whether it has been glven and whether it ~ qti,bfa(ltory; (b) whether or not the transactions of the corporation, which have come to his notice, have been wunm the powers of the corporation;' ' (c) whether or not the returns received from the offices and agencies of the corporation have been found adequate fur tnepufpose of his audit;  , ; (d) whether or not the profit and loss account shows a' true  balance of profit and loss for the period covered by such account; and 2s (e) any other matter which he conslders should be brought io , the nauceof the corporation , ~ i i , {,   l '     ' (5) the report of the auditor ~hall be verified, signed and tr~twd to the cor~ration in 'such manner as may be presci;ibef,i'· " " ' 10£1958 22 after malting provision for dad ana doubtful debts, ,depredation in assets, contributions to staff and superannuation funds and all other 30 ~attei'$ 1o~ which provision is ilecessary under any law,' or which' are " lls~~t 'provided ,for 'by companies under the companies act, '1~6, ~ c0rp0tat'ion 'shall ttan~erthe bahmce <:if its profits to a reserve fund to be established by the cor,p'oration '  35 chapter vi trans~ of employees '1'0 the corporation23 (1) on the establishment of the corporation, it shall be law1ul fbr 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 40 person employed by that government for the purposes of the delhi j4ilk scheme: special porvisions for transfer of employees to corporation 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-4s ,tral government to transfer him ,to the corporation, intimated, within such time as ,m,ay be specified in this behalf by that g<1venunent, his intention of not becoming an empluyee of the cofp9ration ,(2) ,an officer or ether employee transferred by an order made undet 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 of the corporation with such designation as the corporation may determine anti shall, subject to the provisions of sub-sections (3), s (4) and (5), be governed bi the regulations made by the corporation under tqis 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 employment is duly terminated by the corporation 10 (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 und~r  the central government immediately before the date of transfer or is , '' by the scale of pay applicable to the post under the corporation to which he is transferred, (lj) 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 ql'ders of the central 20 government as amended from time to time or the leave, provident fund or other terminal benefits admissible to the ofticers or other empl9yees of the corporation under the regulations made by the corporation under this act, and s~ch option, once exercised, shall be final: 25 provided that the option exercised by an officer or other employee under clause (a) shall be applicable only in respect q'f 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: 30 provided further that if 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 3s draw, at his "ption, 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 applicsble to the post under the corporation to which he is trans· ferred: provided also that when an officer or other employee serving in the 40 department of the ministry of the central government dealing with the delhi milk scheme is promoted to officiate in a higher post in that department 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 45 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  ·ot the scale of pay applicable to the post under the corporation to which he is transferred, whichever he may opt (4) no officer or other employee transferred by an order made under sub-section (1),-(a) shall be dismissed or removed by an authority subordinate to· that competent to make a similar or equivalent appointment under s the corpo'l'ation 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 after an inquiry in which he has been informed of the charge against him and given a reasonable opportunity of being heard in respect of 10 those charges and where it is proposed, after such inquiry, to impose on him any such penalty, until he has been given a reasonable opportunity 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,-is (i) where an officer or other employee is dismissed or removed or reduced in rank on the ground of conduct which haa 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 20 that for some reason, to be recorded by that authority in writing, it is not reasonably practicable to hold such inquiry; or l (iii) to an officer or other employee who, after transfer to the corporation, is appointed to a higher post under the corporation in response to an open advertisement and in competition 25 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 30 final ,1'1 (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 tqany of its attached or subordinate offices from any ministry of the central gov-35 ernment or from any state government or from any organisation  chapter' vii miscellaneous24 any reference to the delhi milk scheme in any law, other than this act, or in any contract or other instrument, shall be construed, on 40 the establishment of the corporation, as a reference to the corporation , 25 evei:y chairman, member of the board, member of the executive committee, auditor, officer or other employee of the corporation shan, before entering upon his duties, make a declaration of ftdelity and secrecy in the form set out in the schedule indemnity reference to delhi milk scheme declaration ot fideuty and ecrecy 45 26 (1) every member of the board shall be indemnifted by the corporation against all losses and expenses incurred by him in, or in relafion to, the discharge of his duties except such as have been caused by hill own· wilful act or default (z) a member of the board shall not be responsible for any aetion taken or anything done by any other member of the boartl or by any ofbcer or qiher 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 sof the corporation in good faith, or bv the insolvency or wrongful' act of any person under obligation to the corporation or by ~nything done in good faith, in the execution of the duties of his office or in relation thereto protection of ction taken in ,ood faiu 27 no suit or other legal proceeding shal1lie against the corporation 10 or any member of the board thereof or any member of the executive committee, or any officer or other i!ffiployee of the corporation at any other person authorised by the corporation to discharge any functions, under this act, for any loss or damare caused or likely to be caused by anything which is in good faith done or intended to be done under or in 15 p111'suance of this act offence •• 'i' , 28 (1) whoever, witho1slt the consent in writing of the corporation, uses its name in any prospectus or advertisement, shall be punishable w'lth imprisonment for a term which fuay extend to six morlths, ot with tine' w'hich may extend to one 'thousand rupees, or with both 20 provision relating to incometax, etc (2) no coutt shall take cognizance of any offence ~nder s:ub-section (1) except on a complaint in writing by an officer authorised in this behatf by the corporation , i" d for the purposes of the income-t~ act, 1961, or any other enactment for the time being in force relating to income::tax, super-tax or any 25 other tax on income, profits or gains, the corporation shall be deemed to be an indian company and a company in which public are substantililly interested and shall be liable to tax accordingly on its income' profits and gains " winding up of corporation 30 no provision of law '!"~lating to the winding up of companies w 30 corporations shall apply to the corporation and it shall not be placed in liqnidatioh save by order of the central government and in such manner as that government may direct ' 31 0), the central government may, by notiflcaticm in the 'official gazette, make rules to carry out the provisions of this act 3s power to make rules (2) in particular, and without prejudice, to the generality of the foregoing powers, such rules may provide for-:-(a) the purchase, sale stora~e, transportation or distributi0p of milk or milk products by the corporation;   , (b) the ~~i'm of office of the tnembers of the board and the illan-,4q her of filling vacancies among the members of the board; " {c) the remuneration or fees which the members of the board other;;than the mimaging director, shall be entitled to receive fr~ the corporation:  , ' (d) the manner of verification and signature of the report o'f the 4s u~r and the manner of transmission of 'such report to t)le corp' 0-;:rabon; and  edt ,( e), '8ueh other matters as'in&y be, or are !~q\1h'ed to b~~ p~e~rjb~ (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 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 5 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 10 shall' be without prejudice to the validity of anything previously done under that rule' power to make regulations 32~ (1) th~ corporation may, with the previous sanction of the central government, by notification it) the official gazette, make regulations not inconsistent wi,th thfj prpvisions of this act and the rules made is thereunder, to provide for all matters for which provision is necessary or expedi,~t for the purpose of giving effect to the provisions of this act (2) in particular, and without prejudice to the generality of the foregoing powers, such regillations may provide for-(a) the method of appointment, the conditions of service and 20 the scajesof p4y ot the officers and other employees of the corporation· ", , , (b) the dutiesqnd cond~t of officers and employees of the corporation; (c) the functions and duties which may be entrusted or delegat-2s ed to the managing director; (d) the times and places at which meetin~s of the board or 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-30 cutive committee; (b) generally, the efficient co'nduct of the affairs of the corporation (3) the central government may, by ,notification in the official gazette, rescind any regulation which it has sanctioned and thereupon 3s 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 anv regulation so made may, subject to the provisions of sub-section (3), be altered or rescinded by 40 the corporation in the exercise of its powers under this act 33 (1) the corporation shall, as soon ~s possible after the end of each annual year, submit to the central government an annual report on the working report and affairs of the corporation (2) the central government shall  s soon as may be after the receipt 4s of such report, cause such report and t"e audit report re~elved by it to be laid before both houses qf parliament  declaration of fidelity and secrecyi, ,do hereby declare that i will faithfully, truly and to the best of my skill and ability execute and perform the duties required of s me as chairman, member of the board, member of the executive committee, 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- 10 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 is corporation and relating to the business of any person having any dealing with the delhi milk supply corporation ' the delhi milk scheme which was hitherto being run on a depari  mental basis by the ministry of food, agriculture, community development and co-operation (department of agriculture) has been operating 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 flexibhity in its operation, it has been decided to convert the delhi milk: scheme into a statutory corporation the bill seeks to give effect to the said decision the paid-up capital of the corporation shall be an amount not exceeding 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 360 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 government 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 reasonable 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 3-2170-ldi, dated the 22nd august, 197(} from shri annasahib p shinde, minister of state in the ministry of food, agriculture, 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 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 ~he iriitial paid-up capital of the· delhi milk supply 9~rpora~ion ~ha11 be an amount not exceeding rs 7 crores as the central government m",y determine [clause 5(1) of the bill] this a:~o~nt will be equal to the value of the assets on the date<;>f conversion of delhi milk scheme into a statutory corporation (estimated,as,rs 3~o cror~s,,,,s 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 business of the corporation or for any purpose connected therewith on such terms and conditions as the central governillent may determine [clause 5 (3) of the bill] the central govemment 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 es~blishment of the corporation shall be treated as a part of the paid-up capital provi~d by the central government to the corporation [clause 5(2) and clauses 7 (1) ands(2) of the bul] 3 the central government may alro guarantee the advances taken or monies borrowed by the corporation ·frbm· any scheduled bank or any other bank or banking institutions appraved by the central government as to the repayment of the principal and the· payment'of the interelit 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 consequeht1y that 6f the central government on the date of its conversion into corporation, ned 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 stflft would opt ~o come under the corporation, the liability qf the centr~l ·government in r:espect of the remaining 10 per cent of the staff will not ex~eed rs 50 lakhsbeing; 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 a bill to provide for the establishment of a corporation, for the purpl)se of acquiring, distributing and selling milk and milk products in the union territory of delhi and other areas and for the ~tters connected therewith or incidental thereto - (shri annashib p shinde, minister oj stale in t~ ministry of food, agricllltj4r€ community development t6ic co-operazilj1l ) 