The Ministry of Consumer Affairs, Food and Public Distribution on July 13, 2023, notified the Warehousing (Development and Regulation) Registration of Warehouses (Amendment) Rules, 2023 further to amend the Warehousing (Development and Regulation) Registration of Warehouses Rules, 2017.
The amendment is as follows: -
•In rule 18, the following sub-rules shall be inserted, namely: -
(6) The Authority may allow any entity to submit an indemnity bond specified in the form appended in the Ninth Schedule, executed by the concerned State Government and a resolution from its board of directors confirming the furnishing of such indemnity bond, along with its application for registration.
(7) The indemnity bond shall be of the value equal to the sum of negative net worth and the minimum net worth requirement for the warehouseman which shall be subject to review by the Authority.
(8) The validity of the indemnity bond shall be until six months after expiry, cancellation, rejection, or surrender of registration or until after satisfaction of every claim whichever is later.
(9) The Authority shall invoke the indemnity bond when such entity is unable to meet any penalty or fine imposed or is unable to discharge any of its obligations under the Act.
(10) The indemnity bond shall be discharged in respect of the warehouse if, - (a) an application for renewal of registration of the warehouse has been rejected and if the Authority is satisfied that the warehouseman has discharged his obligations as per the requirements of these rules.
•The Ninth Schedule has been added which gives the format of an indemnity bond.
These rules shall come into force on the date of their publication in the Official Gazette.
The detailed rules are attached in the document below.
[Notification No.G.S.R. 503(E).]
