Warehousing Development and Regulatory Authority notifies the procedure for furnishing Security Deposit for registration of warehouses
In a recent notification dated 6th July, 2017, the Warehousing Development and Regulatory Authority (“Authority”) has notified the procedure for furnishing Security Deposit for registering warehouses with the Authority.
Key takeaways of the notification:
- Timeline for furnishing Security Deposit:The applicant is required to submit the Security Deposit to the Authority within 21 working days after issue of a communication by the Authority. Failure to submit security deposit within the stipulated timeline will lead to automatic rejection of registration application. The Authority, however, can relax the timeline under special circumstances.
- Manner of submitting Security Deposit: The applicant is required to submit the Security Deposit as per “The First Schedule” (provided in this notification). The Authority will issue the certificate of registration only if the applicant submits the deposit amount as per the said format. 3.
- Maintenanceof Security Deposit: The warehouseman is required to maintain a Security Deposit during the period of registration of the warehouse. The value / amount of the Security Deposit shall be as per the calculation provided in this notification.
- Updation and quarterly submission of Security Deposit:The Security Deposit is required to be updated at the end of each quarter and submitted to the Authority, duly acknowledged.
- 5.Refundof Security Deposit: The Authority may refund the Security Deposit under the following circumstances:
- when an application for renewal of registration of the warehouse has been rejected
- when awarehouseman surrenders his certificate of registration, and the Authority accepts such surrender; or,
- the certificate of registration of a warehouse is cancelled.