Section 19 in The Warehousing (Development and Regulation) Registration of Warehouses Rules, 2017
19. Security deposit.
(1)The Authority, in consultation with all the stake holders, shall, by notification in the official Gazette, specify the amount and the manner of the security deposit to be furnished by the applicant or the warehouseman but the warehouseman shall not increase charges payable by the depositors within the period of validity of negotiable warehouse receipts issued to them.(2)An applicant shall submit and maintain a security deposit to be held by the Authority during the period of registration of the warehouse.(3)The warehouseman shall ensure that the amount of the security deposit furnished is in compliance with these rules at all times, or at such periodic intervals as the Authority may specify from time to time.(4)When an applicant or a warehouseman furnishes or updates the security deposit, the Authority shall issue an acknowledgment of receipt of such deposit.(5)The warehouseman may furnish, at his option, a joint security deposit for more than one warehouse.(6)The Authority shall maintain complete records regarding the security deposit provided by the applicant or the warehouseman.(7)The Authority may, at its discretion, adjust the security deposit already furnished by the warehouseman, against the amounts required to be furnished as security deposit in these rules.(8)The Authority may allow any entity created under an Act of Parliament or of State legislature to provide, instead of the security deposit, an indemnity bond of the amount required as security deposit.(9)If the Authority allows the submission of an indemnity bond, it shall specify the form of such indemnity bond.(10)An entity allowed by the Authority to submit an indemnity bond shall submit, along with its application for registration, a resolution from its board of directors authorizing the furnishing of such indemnity bond.(11)The Authority shall refund the security deposit in respect of a warehouse, if -(a)an application for renewal of registration of the warehouse has been rejected and if the Authority is satisfied that the warehouseman has discharged his obligations as per the requirements of these rules;(b)a warehouseman surrenders his certificate of registration, and the Authority accepts such surrender; or(c)the certificate of registration of a warehouse is canceled, and the Authority is satisfied that the warehouseman has discharged his obligations as per the requirements of these rules.
