3. Requirement of registration for warehouses issuing negotiable warehouse receipts.—(1) No
person shall commence or carry on the warehousing business unless he has obtained a registration
certificate in respect of the concerned warehouse or warehouses granted by the Authority under this Act:
Provided that a person carrying on the warehousing business immediately before the commencement
of this Act shall be allowed to carry on such business, in case he has made an application for registration
within thirty days from the date of such commencement:
Provided further that no such registration shall be required for warehouses which do not propose to
issue negotiable warehouse receipt.
Explanation.—For the removal of doubts, it is hereby clarified that a warehouse registered under this
Act shall also be eligible to issue non-negotiable warehouse receipts.
(2) Notwithstanding anything contained in sub-section (1), the Authority may, subject to such
regulations and guidelines issued by it, authorise any person registered under section 5 as an accreditation
agency to issue certificate of accreditation to any person for carrying on the business of warehousing
issuing negotiable warehouse receipts.
4. Registration of warehouses.—(1) Any person desirous of commencing or carrying on the
business of maintaining a warehouse issuing negotiable warehouse receipts may make an application to
the Authority for registration in respect of one or more warehouses owned or occupied by him.
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(2) Every application for registration under sub-section (1) shall be in such form and manner and shall
be accompanied by such fees as may be prescribed.
(3) The Authority may, after such enquiry and subject to such terms and conditions as it thinks fit,
grant a certificate of registration of the warehouse in the prescribed form and bearing a registration
number to the applicant authorising him to carry on the business of maintaining a warehouse or
warehouses and to issue negotiable warehouse receipts.
(4) The Authority may not grant a certificate of registration under this section unless it is satisfied that
the warehouse in respect of which the application has been made has adequate facilities and safeguards
required to warehouse the goods of the nature specified in the application and the applicant satisfies the
financial, managerial and other eligibility criteria and competence as may be prescribed:
Provided that no certificate of registration shall be refused to any applicant under this section unless
the applicant has been given an opportunity of being heard.
5. Registration of accreditation agencies.—(1) The Authority shall, from time to time, determine
the number of accreditation agencies as it may authorise to issue certificate of accreditation to warehouses
issuing negotiable warehouse receipts.
(2) Any person fulfilling the qualifications and other requirements as may be prescribed and desirous
of functioning as an accreditation agency under this Act may make an application to the Authority
seeking its registration as such under this Act.
(3) Every application under sub-section (2) shall be in such form and manner and shall be
accompanied by such fees and security deposit as may be prescribed.
(4) The form in which and the terms and conditions subject to which a certificate of registration as an
accreditation agency may be issued under this section shall be such as may be prescribed.