Section 40 of WDR Act : Section 40: Powers Of Central Government To Issue Directions

Explanation using Example

Imagine a scenario where the Central Government decides to promote agricultural exports by providing subsidies for warehousing agricultural products. Under Section 40 of The Warehousing (Development and Regulation) Act, 2007, the government directs the Warehousing Development and Regulatory Authority (WDRA) to implement a policy that prioritizes the allocation of warehouse space for exporters of agricultural products.

The Authority is bound by this direction on policy matters, but before the direction is finalized, the WDRA is given the opportunity to express its views on the practicality and implications of such a policy. After considering the WDRA's input, the government may issue a final directive. The decision on whether this matter is a policy issue lies with the Central Government and is considered final.