23. Borrowing powers of Board.—The Board may, with the previous approval of the Central
Government or in accordance with the terms of any general or special authority given to it by the Central
Government, borrow money from any source as it may deem fit for discharging all or any of its functions
under this Act.
24. Grants and loans by Central Government.—The Central Government may, after due
appropriation made by Parliament by law in this behalf, pay to the National Dairy Development Board by
way of grants or loans such sums of money as the Central Government may think fit for being utilised for
the purposes of this Act.
25. Grants, donations, etc.—The National Dairy Development Board may receive gifts, grants,
donations or benefactions from Government or any other source in or outside India and the same shall be
used by the Board for exercising its functions and discharging its responsibilities under this Act.
(2) The National Dairy Development Board shall not receive any gifts, grants, donations or
benefactions from a foreign government or any other source outside India except with the previous
approval of the Central Government.
26. National Dairy Development Board Fund.—(1) The National Dairy Development Board shall
maintain a Fund to be called the National Dairy Development Board Fund to which shall be credited—
(a) all sums of money vested in the National Dairy Development Board under Chapter II;
(b) all sums of money that may be provided by Government;
13
(c) all fees and other charges received by the National Dairy Development Board;
(d) all sums of money generated from gift commodities by the National Dairy Development
Board or received by it by way of grants, donations, benefactions, bequests or transfers; and
(e) all sums of money received by the National Dairy Development Board in any other manner or
from any other source.
(2) All sums of money credited to the said Fund shall, subject to the regulations, if any, made in this
behalf, be deposited with the State Bank of India or any other nationalised bank.
Explanation.—In sub-section “nationalised bank” means a corresponding new bank as defined in the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and the Banking
Companies (Acquisition and Transfer of Undertakings) Act, 1980 (44 of 1980).
(3) The said Fund shall be applied towards meeting the administrative and other expenses of the
National Dairy Development Board, including expenses incurred in the exercise of the powers and the
discharge of its functions and responsibilities under section 16 or in relation to any of the activities
referred to therein or for anything relatable thereto.
27. Preparation of accounts and balance-sheet.—(1) The balance-sheet and accounts of the
National Dairy Development Board shall be prepared in such form and in such manner as may be
prescribed.
(2) The Board shall cause the books and accounts of the National Dairy Development Board to be
closed and balanced as on the 31st day of March each year or such other date as the Board may, with the
concurrence of the Central Government, decide.
28. Audit.—(1) The accounts of the National Dairy Development Board shall be audited by auditors
duly qualified to act as auditors of companies under the Companies Act, and the appointment of auditors
and remuneration payable to them shall be subject to the approval of the Central Government.
(2) Every auditor in the performance of his duties shall have at all reasonable times access to books,
accounts and other documents of the National Dairy Development Board.
(3) The auditors shall submit their report to the Board which shall forward a copy of their report to
the Central Government.
29. Reports to be laid before Parliament.—The Central Government shall cause the report of the
auditors under section 28 to be laid before both the Houses of Parliament as soon as may be after such
report is received by the Central Government.
30. Power to call for repayment before agreed period.—Notwithstanding anything contained in
any agreement to the contrary, the Board may, by notice in writing, require any person to which the
National Dairy Development Board or the society or the dissolved company has granted any loan or
advance, to discharge forthwith in full, its liabilities to the Board,—
(a) if it appears to the Board that any false or misleading information in any material particular
was given in the application for the loan or advance; or
(b) if the person has failed to comply with the terms of its contract in the matter of the loan or
advance; or
(c) if there is a reasonable apprehension that the person is unable to pay his debts or that
proceedings for liquidation may be commenced in respect thereof; or
(d) if the property pledged, mortgaged, hypothecated or assigned as security for the loan or
advance is not insured and kept insured by the person to the satisfaction of the Board (or depreciates
in value to such an extent that, in the opinion of the Board, further security to the satisfaction of the
Board should be given and such security is not given after demand); or
(e) if, without due permission, any machinery, plant or other equipment (whether forming part of
security or not) is removed from the concerned premises without being replaced; or
14
(f) if it appears to the Board that any condition in the loan agreement relating to the supply of
goods or implementation of the project is being substantially violated; or
(g) if, for any other reason, the Board considers it necessary so to do for protecting the interests of
the National Dairy Development Board.
31. Special provisions for enforcement of claims by National Dairy Development
Board.—(1) Where any person, in breach of any agreement, makes any default in the repayment of any
loan or advance or any instalment thereof (or in meeting its obligations in relation to the guarantee given
by the National Dairy Development Board) or otherwise fails to comply with the terms of agreement with
the Board or where the Board requires any person to make immediate repayment of any loan or advance
under section 30 and the person fails to make such repayment, then, without prejudice to the provisions of
section 69 of the Transfer of Property Act, 1882 (4 of 1882), any officer of the National Dairy
Development Board, generally or specially authorised by the Board in this behalf, may apply to the court
for one or more of the following reliefs, namely:—
(a) for an order for the sale of the property pledged, mortgaged, hypothecated or assigned to the
National Dairy Development Board as security for the loan or advance; or
(b) for transferring the management of any organisation to the National Dairy Development
Board; or
(c) for an ad interim injunction where there is apprehension that the machinery or other
equipment is being removed from the premises of the organisation without due permission.
(2) The procedure for making an application under sub-section (1) and for the disposal thereof shall
be such as may be prescribed.