Warehouse Registration

Warehouse Registration-An Introduction

According to the WDRA, 2007 and the Warehousing (Development & Regulation) Registration of Warehouse Rules, 2017, any person commencing or carrying on the warehousing business and also intending to issue Negotiable Warehouse Receipts (NWRs) has to mandatorily get the warehouse registered with the Warehousing Development & Regulatory Authority (WDRA) and also to comply with applicable warehouse legal requirements.

In the year 2007 the parliament of India enacted the Warehousing (development and Regulation) Act. It came into active effect throughout the county from 25th of October 2010. The Act was incorporated with the objective of providing development along with regularizing the warehouse sector. The WDRA or the Warehouse Development and Regulatory Authority comprised of 1 chairman and 2 full time members for the implementation of the Act.

As per the Act and the guidelines laid any individual interested in the warehousing business or intended in issuing Negotiable Warehouse Receipts (NWRs) have to comply with the legal requirements as prescribed and compulsorily obtain warehouse registration with the WDRA. Warehousing has been seeing to play a very important role in promoting financing and banking. The NWRs issued by registered warehouses help farmers to engage with banks for loans against the NWR which avoids any distress sale of produce. This is turn is also a beneficial entity for financial institutes, commodities exchanges, banks, insurance companies and trade. The Warehouse Manual defines all rules and regulations for accreditation of warehouse, registration of warehouses along with registration of accreditation agencies who work on the registration of warehouses.Warehouse registration under Warehousing Development and Regulatory Authority (WDRA) is mandatory for individuals instigating a warehouse business. Since its implementation that is on 1st November 2017, a portal for registration is available. Besides that, the portal encompasses the guidelines, rules and responsibilities, alignments in the same, and the instructions for registration.