The issuing authority of the registration certificate for a warehouse also has full rights to suspend, cancel or revoke either temporarily or permanently any registration if
The authority in any such condition issues a “show cause notice”. On further investigations by the authority the final decision is taken and worked upon accordingly.
If the procedure for registration of warehouse is not duly complied in accordance to the applicable provisions of Warehousing (Development & Regulation) Act, 2007or not fulfilling the warehouse legal requirements then there are penal provisions in the form of hefty monetary fines or imprisonment or both.
Further, Additional functions of the warehouse are to issue warehouse receipts and register under e-negotiable warehouse receipt (NWR) repository.
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.
A person who wants to carry on the business of warehousing may submit only one application for registration in respect of all the warehouses.
In case the applicant/ warehouseman is a Farmer Producer Organization or a Cooperative, the fee shall be 5,000 per warehouse.
The application of online warehouse registration in India can be submitted online vi https://wdra.gov.in/web/wdra/home
The insurance coverage requirement for getting warehouse License in India with respect to the goods deposited in the warehouse(s), must be against at least:
Fire safety equipment's arrangement for Warehouse Registration in India includes number & type of fire extinguishers, fire buckets, water arrangements, fire safety alarms and any other measures etc available in warehouse infrastructure.
The eligibility requirements of an applicant for granting warehouse license in India are as follows:
The requirements to get a warehouse registered are
The insurance should cover instances of riots and strikes, misappropriation, burglary, floods, fire and SFSP policy.
The warehouse registration is a simple step of procedure as prescribed by the authorities.
The authorities take a maximum time of months to grant the registration certificate for a ware house from the date of submission of application to the authority.
The fee structure of registration of a warehouse in India has been prescribed as
The minimum payable fee for any warehouse registration is 7500. Although there is a concession in the above prescription of fee if the owner is a farmer producer organization or a cooperative society, the fee for them is 5000 for a warehouse.
If a warehouse owner does not comply with the mandatory registration policy by the authority then he/she shall face hefty monetary penalties or in more sever default it may end up in imprisonment or both.
It has clearly been stated in the warehouse manual Chapter V by the government that “a person desirous of carrying business of a warehouse in more than one warehouse shall submit a separate application for registration in respect of each warehouse”. The registration certificate issued is warehouse specific and is non- transferable and non- sharable. Neither is the person who is a warehouseman under the Act is allowed to store his/ her own goods in the warehouse registered by the said person.
The Warehouse Register is a register of all your company's warehouses. In it you can create warehouses and locations in these warehouses. You can also link products to warehouses and locations. The actual stock updating is done during stocktaking and when performing warehouse related transactions.
The Warehousing Development and Regulatory Authority was established under the Warehousing (Development and Regulation) Act, 2007 and it consists of one Chairperson and two full time Members.
The mission of the WDRA is to ensure that the interests of the farmers are protected through the growth and development in the warehousing sector. The main objectives are to improve the fiduciary trust of depositors and banks, increase liquidity in rural areas, encourage scientific warehousing of goods, lower the cost of financing, promote shorter and efficient supply chains, enhance reward for grading and quality and ensure better price risk management.
The negotiable warehouse receipts issued by the WDRA will help the farmers to seek loans from banks against the NWRs to avoid distress sales of agricultural produce during the peak marketing season and to avoid the post harvest storage loss.
The Authority has notified 123 agricultural commodities including cereals, pulses, oil seeds, spices, rubber, tobacco, coffee etc for issuing negotiable warehouse receipts and also 26 horticultural commodities for cold storage.
1902 warehouses of 105.5 lakh MT capacity have been registered with WDRA since inception. Out of which 274 warehouses are of CWC, 194 of SWC, 1164 are Private Warehouses, 261 are PACS/FPO and 9 are Cold Storages. As of now, 745 warehouses having storage capacity of 62 lakh MT have valid registration.
To discourage distress sale by farmers and to encourage them to store their produce against warehouse receipts the benefit of interest subvention was made available to small and marginal farmers having Kissan Credit Cards for a period of six months @ 7% on negotiable warehouse receipts.
The following rules and regulations have been notified under the Warehousing (Development and Regulations) Act, 2007:-The following rules and regulations have been notified under the Warehousing (Development and Regulations) Act, 2007:-RULES
The Authority has launched electronic Negotiable Warehouse Receipt from 26th September 2018 and thereby migrating to IT based eNWR ecosystem, by licensing two Repositories namely, M/s CCRL (sponsored by CDSL) and M/s NeRL (sponsored by NCDEX). All the registered warehouses are on boarded to Repository System for issuing eNWR against the deposits. The depositor can use eNWR to get loans against underlying commodities from banks and lien will be marked by the repository.
As per section 34 (1) of the Warehousing (Development and Regulation) Act, 2007, WDRA may constitute a Warehousing Advisory Committee for the following are:-
Section 3 sub section (1) and (2) of the Warehousing (Development and Regulation) Act, 2007 provides that no person shall commence or carry on the business of warehousing issuing negotiable warehouse receipts unless he has obtained a registration certificate after fulfilling the prescribed norms in respect of the concerned warehouse or warehouses granted by the Authority under this Act.
Details of registration fee for different capacity of warehouses are as under:
|Unit of registration||Fee (non refundable)|
|Each warehouse with a capacity of 10,000 Ton or less||20,000|
|Each warehouse with a capacity of more than 10,000 Ton but less than or equal to 25,000 Ton||25,000|
|Each warehouse with a capacity of more than 25,000 Ton||30,000|
Where the applicant/ warehouseman is a Farmer Producer Organization or a Co-operative, the fee shall be 5,000 per warehouse.
Net worth requirement for different capacity of warehouses is as under:
|Net worth Requirement|
|Storage capacity (in tons)||Net worth (Rupees in crores)|
|Less than 1,000||0.1|
|1,001 – 3000||0.25|
|3,001 – 5,000||0.50|
|5,001 – 7000||1.00|
|7,001 – 10,000||2|
|10,001 – 15000||5|
|15,001 – 25,000||10|
|25,001 – 75,000||20|
|75,001 – 1,50,000||30|
|1,50,001 – 5,00,000||50|
|5,00,001 and above||100|
Where the applicant/ warehouseman is a Farmer Producer Organization or a Co-operative, the net worth should be positive.
Following financial concessions are provided to Cooperative Societies and FPOs to encourage them for registering their warehouses:
Following relaxations have been provided for registration of small capacity warehouses operated by PACS: