1Short title and Commencement
1.       This Act may be called the State Agricultural Credit Corporations Act, 1968. 2.       It shall come into force on such date as the Central Gove...
2Definitions
In this Act, unless the context otherwise requires,-...
3Establishment of State Agricultural Credit Corporations
Ins. by Act 5 of 1970, s. 20 (w.e.f. 19-7-1969).Ins. by Act 40 of 1980, s. 20 (w.e.f. 15-4-1980). 169. An Agricultural Credit Corporation under such name as ...
4Head Office and other Offices
The Corporation shall establish its head office at such place in the State or Union territory a  the appropriate Government may, after consultation ...
5Share Capital and Share - Holders
The authorised capital of each Corporation shall be such sum as the appropriate Government may initially fix but it shall, in no case, be less than ...
6Restrictions on Transfer of Shares
Save as otherwise provided in the second proviso to sub-section (5) of section 5, the shares of the Corporation shall not be transferable....
7Management
The general superintendence, direction and management of the affairs and business of the Corporation shall vest in a Board of directors who may exercise all t...
8Corporation to be Guided by Directions of Central Government
In the discharge of its functions, the Corporation shall be guided by such directions in matters of policy involving public interest as the Central Government...
9Constitution of Board
The Board of directors of the Corporation shall consist of the following, namely:-one directors to be nominated by the Central Government who shall be the Cha...
10Managing Director
 The managing director shall- be a whole-time officer of the Corporation; perform such duties as the Board may, by regulations or otherwise, assign to him;ho...
11Term of Office of Directors other than Managing Director
 A nominated director, other than the managing director, shall hold office during the pleasure of the authority nominating him and the period of such office, ...
12Disqualifications
No person shall be a director, who,-except in the case of the managing director, is a salaried official of the Corporation, oris, or at any time has been, adj...
13Vacation of Seats of Directors
If a director,- becomes subject to any disqualification specified in section 12, oris absent without leave of the Board for more than three consecutive meetin...
14Executive Committee and other Committees of the Corporation
The Board may constitute and Executive Committee consisting of the Chairman of the Board, who shall be the Chairman thereof, the managing director and two oth...
15Meetings of Board and Committees
The Board or the Executive Committee or any other committee shall meet at such times and places and shall observe such rules of procedure in regard to the tra...
16Directors of Board or Members of a Committee not to Vote in Certain Cases
Every director or member of a committee who has any direct or indirect pecuniary or other interest in any matter coming up for consideration at a meeting of t...
17Defects in Appointments not to Invalidate Acts, etc
No act or proceeding of the Board or of any of its committees shall be questioned or be invalid on the ground merely of the existence of any vacancy in, or an...
18Fees and Allowances of Directors and Members of Committees
Every director and every member of a committee shall be paid such fees and allowances as the Board may, by regulations, determine, for attending the meetings ...
19Business which the Corporation may Transact
Subject to the provisions of this Act, the Corporation may transact the following kinds of business, namely:-the granting of loans and advances, repayable wit...
20Borrowing by the Corporation
Subject to the provisions of this Act, the Corporation may, for the purposes of carrying out its functions under this Act,-re-discount with or sell to the Re...
21Deposits with the Corporation
The Corporation may, with the prior approval of the Reserve Bank, accept deposits from the appropriate Government, a local authority or any other person wheth...
22Limits on Borrowings and Deposits
The aggregate of the amounts borrowed and deposits accepted by the Corporation and outstanding shall not at any time exceed ten times the amount of the paid-u...
23Corporation to maintain two Funds
The Corporation shall establish two separate funds, namely:-Agricultural Credit (Stabilization) Fund (hereinafter referred to as the Stabilization Fund), and...
24Stabilization Fund
To the Stabilization Fund shall be credited such sum, not being less than ten and not more than fifteen per cent. as the Corporation may deem fit from out of ...
25Reserve Fund
To the Reserve Fund shall be credited such sums not being more than fifteen per cent. as the Corporation may deem fit out of its net annual profits before dec...
26Payment of Dividend
After making provision for bad and doubtful debts, depreciation of assets and all other matters which are usually provided for by bankers, and after crediting...
27Investment of Surplus Funds
All moneys belonging to the Corporation which may not, for the time being be required by it shall be-deposited with the Reserve Bank or with any agency of the...
28Recovery of Moneys due to the Corporation
Where any amount is due to the Corporation in respect of loans or advances or other financial accommodation granted by it to any person, the Corporation or an...
29Acquisition or Transfer by the Corporation of Business
Subject to the provisions of any law relating to co-operative societies for the time being in force, the Corporation may-acquire the whole or any part of the...
30General Meetings
A general meeting (in this Act referred to as an annual general meeting) of the Corporation shall be held at the Head Office of the Corporation with...
31Accounts
The balance-sheet and accounts including the profit and loss account of the Corporation shall be prepared and maintained in such form and manner as ...
32Audit
The accounts of the Corporation shall be audited by an auditor duly qualified to act as auditor under sub-section (1)of section 226 of the Companies...
33Returns
The Corporation shall furnish, from time to time, to the appropriate Government and to the Reserve Bank such returns as the appropriate Government o...
34Certain provisions of the Banking Regulation Act, 1949, to apply to the Corporation
The provisions of sections 8, 9, 20, 20A, 21, 23, 24, 26, 34A, 35 [excluding sub-section (4)], 35A, clause (a) of sub-section (1) of section 36, and sections ...
35Certain provisions of the Reserve Bank of India Act, 1934
The provisions of sections 18.and 42 of the Reserve Bank of India Act, 1934, shall apply to or in relation to the Corporation as they apply to or in relation...
36Reserve Bank of India Act, 1934 and Banking Regulation Act, 1949
Save as otherwise provided in this Act, nothing contained in the Reserve Bank of India Act, 1934 (2 of 1934), and the Banking Regulation Act, 1949 (10 of 1949...
37The Bankers Books Evidence Act, 1891 to Apply
The Bankers Books Evidence Act 1891 (18 of 1891), shall apply to or in relation to the Corporation as it applies to or in relation to a bank as defined in sec...
38Corporation to be Deemed to be a Co - Operative Society
For the purposes of the Income-tax Act, 1961 (43 of 1961), or any other enactment for the time being in force relating to any tax on income, profits or gains ...
39Court, Tribunal, etc., not to Require Production of Report
Notwithstanding anything contained in the Indian Evidence Act, 1872 (1 of 1872), or any other law for the time being in force, no Court, Tribunal or other aut...
40Declaration of Fidelity and Secrecy
Every director, member of a committee, auditor, officer or other employee of the Corporation shall, before entering upon his duties, make a declaration of fid...
41Indemnity of Director
Every director shall be indemnified by the Corporation against all losses and expenses incurred by him in the discharge of his duties except such as...
42Protection of Action taken in Good Faith
No suit or other legal proceeding shall lie against the Corporation or the Central or State Government or the Reserve Bank or any director or officer of the C...
43Liquidation of the Corporation
No provision of law relating to the winding up of companies or corporations shall apply to the Corporation and the Corporation shall not be placed i...
44Reserve Bank to Submit Report
The Reserve Bank shall, on the expiry of a period of three years, from the date of establishment of the Agricultural Credit Corporation in a State or Union te...
45Staff of the Corporation and Delegation of Powers
Corporation may appoint such officers, advisers and employees as it considers necessary for the efficient performance of its function and determine, by re...
46Powers of the Central Government to make Rules
The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act. In particular, and without pre...
47Power of the Board to make Regulations
The Board 1*[after consultation with the Reserve Bank, may, by notification in the Official Gazette"] make regulations not inconsistent with the provis...
48Amendment of Act 10 of 1963
In clause (f) of section 2 of the Agricultural Refinance Corporation Act, 1963, after sub-clause the following sub-clause shall be inserted, namely:- a...
Have a Legal Issue?
Get connected to the Best Lawyers and Chartered Accountants Near You!