(1) The Government may, by notification in the Gazette, frame a Scheme to be called the “Kerala Ration Dealers' Welfare Fund Scheme” for the establishment of a Fund under this Act for the welfare of the ration dealers in the State and there shall be established, as soon as may be after the framing of the Scheme, a Fund by name the “Kerala Ration Dealers’ Welfare Fund” in accordance with the provisions of this Act and the Scheme.
(2) There shall be credited to the Fund,-
(a) the contributions specified in section 6;
(b) the amount, if any, borrowed under section 16;
(c) grants, loans or advances from the Government of India or any State Government or any institution;
(d) any donation or remittance from whatever source;
(e) any amount raised by the Managing Committee from other sources to augment the resources of the Fund;
(f) fee, if any, levied under this Act or the Scheme; and
(g) any other amount which, under the provisions of the Scheme, shall be credited to the Fund.
(3) The fund shall vest in, and be administered by, the Managing Committee.
(4) The Fund may be utilised for all or any of the following purposes namely:-
(a) for payment of-
(i) the mount specified in the Second Scheduled;
(ii) financial assistance to a member who suffers from permanent disablement or infirmity;
(iii) compensation to a member for the loss suffered by him. In his ration business due to natural calamity or fire;
(iv) loans or advances to a member for the improvement of his ration business;
(b) to provide for medical expenses to the members and the members of their families, subject to such limits and conditions, as may be specified in the Scheme.
(c) to provide financial assistance in the form of scholarships to the children of the members, for such courses of study as may be specified in the Scheme;
(d) to institute annual awards to the children of members who are academically more excellent;
(e) for pension scheme, if any; and
(f) for any other purpose specified in the Scheme.
(5) Subject to the provisions of this Act, the Scheme framed under subsection (1) may provide for all or any of the matters specified in sub-section (4) and in the First Schedule.
(6) The Scheme shall be laid, as soon as may be after it is framed, before the Legislative Assembly while it is in session for a total period of fourteen days which may be comprised in one session or in two successive sessions, and if, before the expiry of the session in which it is so laid or the session immediately following, the Legislative Assembly makes any modification in the Scheme, the Scheme shall, thereafter have effect only in such modified form; so, however, that any such modification shall be without prejudice to the validity of anything previously done under the Scheme.