Provision for Capital Formation Fund

The Maharashtra Raw Cotton (Procurement, Processing and Marketing) Act, 1971

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Chapter VI PRICE FLUCTUATION FUND

Statutory text

(1) For providing margin money or equity base for generation of additional requirement of funds for the proper and continuous operation of the scheme which are to be borrowed, from time to time, from the credit institutions, a separate account is hereby established to be called the Capital Formation Fund (hereinafter in this Chapter referred to as "the Fund").
(2) The State Government shall, under appropriation duly made in this behalf contribute and pay, from time to time, into the Fund an aggregate sum of not less than Rs. 25 crores, on or before the 31st March 1985, including any contributions already made by it for the purposes of this Fund before the commencement of the Maharashtra Raw Cotton (Procurement, Processing and Marketing) (Retrospective Extension of Duration and Amendment) Act, 1981.
(3) Notwithstanding anyting contained in this Act or any other law for the time being in force, the market committee or the authorised co-operative society or person making deductions under section 27 shall, while making payment to any tenderer, also deduct a sum equal to such per cent, (not exceeding three per cent.) of the guaranteed price, as the State Government may, from time to time, specify by notification in the Official Gazette, fifty per cent, of which as the contribution of the growers to the Fund and the remaining fifty per cent, as their contribution for the developement of industrial co-operatives based on cotton and shall pay the sum so deducted and collected into the Fund in such manner and within such time as the State Government may, by general or special order, direct. 4[Explanation.—In this sub-section, the expression "industrial co-operatives based on cotton" would also mean and include, "industrial co-operatives based on cotton stalk, that is, a stem of cotton plant or any other part of a cotton plant".].
(4) Any agent appointed by the State Government under section 42 shall contribute and pay into the Fund every year a sum of not less than such per cent, (not exceeding three per cent.) of the agency charges payable to him as the State Government may, by general or special order, direct.
(5) The Fund shall be used for the purposes for which it is established including the purpose referred to in the proviso to sub-section
(2) of section 33 and operated by such agency as may be authorised by the State Government.
(6) Separate accounts shall be maintained of the different sources from which contributions or other income is received, and the amount standing to the credit of the Fund at the time of expiration of this Act shall, as far as possible, be distributed in proportion to their contributions amongst the State Government, the tenderers and the agent, in such manner and subject to such deductions (if any) as the State Government may, by general or special order, determine.
(7) All other matters connected with the Fund, including the manner in which the Fund shall be maintained, operated and expended or utilised, shall be regulated by rules made in this behalf.]

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