The Centre has proposed amendments to the Warehousing Development and Regulation Act (WDRA), 2007 to make registration of godowns compulsory and to sharply raise the penalty for various offences, says a senior Food Ministry official.
In the amendment bill, the government has also proposed simplified registration process, accepting negotiable receipts only in electronic form, more powers to regulator Warehousing Development and Regulatory Authority (WDRA) to investigate, take enforcement action, impose monetary penalty and adjudication.
That apart, the government has proposed doing away with up to three year imprisonment for various offences but suggested significant increase in penalty from the current Rs 1 lakh for various offences, the official added.
According to the official, the Food Ministry has already sought inter-ministerial comments on the proposed changes to the act and will soon seek cabinet approval.
Thereafter, the amendment bill is likely to be placed in the monsoon session of Parliament.
Since the registration is optional, the number of warehouses registered with WDRA is very low.