National Dairy Development Board Act,1987

Act No : 37

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Section : FORMATION OF COMPANIES WITH PREVIOUS APPROVAL OF CENTRAL GOVERNMENT

SECTION 43: FORMATION OF COMPANIES WITH PREVIOUS APPROVAL OF CENTRAL GOVERNMENT

(1) Where the Board considers it necessary so to do, for the implementation of any of its objectives, it may, subject to the previous approval of the Central Government, form one or more companies either by itself or in conjunction with any of its subsidiaries or with any other undertaking.

(2) Where any company has been formed in pursuance of sub-section (1),-

(a) in the case of a company formed by the Board by itself or along with its subsidiaries, it may contribute such capital, transfer such of its assets or render such assistance, as may be required, so as to enable the company so formed to function; and

(b) in any other case, it may contribute capital, transfer assets or render assistance in such manner and to such extent as the Board may deem fit subject to specific previous approval of the Central Government in that regard.

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Comments

Joseph Purathur wrote on 04 February 2016

Section 43 of NDDB Act (37 of 1987) has been misinterpreted by NDDB, after Dr Kurien left NDDB in 1998, to create companies dealing with milk and milk products for commercial purposes, as against 'development' purposes which was paramount in consideration for creation of NDDB as an institution of national importance. If it was for selling milk, obviously, NDDB would not have been bestowed with a tag of 'national importance'. Its preamble and more so section 16 (1) (b) refers to the emphasis on 'cooperative strategy' for dairy development -- not the corporate route. The Ministry of Law had given its view on more or less same lines which forced NDDB to close down/merge some of the grand daughter companies it had created under the MDFVL. Even the MDFVL strictly speaking is a violation of the spirit of NDDB Act. It needs to be investigated and corrective steps taken in the interest of millions of small and marginal cooperative dairy farmers who do not get any significant help from NDDB due to its vested interest in its own dairy business (rather than developmental work).

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