The Industries (Deveelopment and Regulations) Act, 1952

The Industries (Deveelopment and Regulations) Act, 1952

This Act was enacted on 8^th May. 1952 and is applicable to whole of India. The Act is aimed at monitoring regulating and developing the industrial activities in the country. The industrial units covered under the provisions of this Act also include the manufacturing units of pharmaceutical machinery, medical and surgical appliances, drugs and pharmaceuticals, cosmetics and soap perfumery and toiletary items, diagnostic kits and related fields.

The salient features of this Act are :

1. Central Advisory Council (CAC)

It is constituted by the Central Government and comprises of Chairman and nominated members, not more than thirty. It advises Central Government on matters arising out of implementation of the provisions ofthis Act. Central Advisory Council is an advisory and policy making body assisting Central Government and state Governments and Union Territories on the technical, as well as, professional matters pertaining to the Act. The members of central Advisory Council include

1. Representatives of manufacturers

2. Representatives of employees in such manufacturing units

3. Representatives of consumers of the products manufactured by such units.

4. Others including subject experts, government officials, etc.

2. Development Council (DC)

It is also constituted by the Central Government comprising Chairman and members drawn from categories of manufacturers, employees, consumers, experts and government officials. There is one Development Council for the scheduled type of industry. The term of office of Development Council, procedure to be followed for meetings, filling up of vacancies and other operational matters are as per the instructions of Central Government. Development Council is accountable to the Central Government for its performance and it is charged with following responsibilities:

·           Survey for production in a particular sector,

·           Planning the strategies for production,

·           Deciding optimum and minimum production of commodities,

·           Developing service structure and planning for economic viability,

·           Scrutinising carefully the market production and regulating the price line,

·           Planning strategy for making available to manufacturers raw materials required for production.

Development Council is a corporate body. It can sue or be sued. It has to submit annual report to Central Government which is tabled in the Parliament. The Central Government may levy a duty on manufacturers and make available such funds for various activities of Development Council. The Development Council is also required to encourage research and development in the specific areas of priority by way of making financial assistance available for such research efforts.

3. Regulation of Schedule Industries

The registration of all industries is required to be completed within 6 months of enactment of the Act. No industrial unit can exist without registration or licence after this deadline. No starting of units in private sector is permitted without licence. New licence for new articles to be manufactured is required to be obtained. The State Government may start a unit without licence after obtaining the permission of the Central Government. The Central Government through this Act is fully empowered to make rules and frame guidelines on the advice of Central Advisory Council. The Central Government may investigate for fall in volume of production, regulation of production, deviation of price line, and irregularities in distribution, and in public interest issue the guidelines to the industrial units to be complied with within stipulated time. If the Industrial unit ignores the notice issued by Central Government and does not comply with stipulated conditions, the Central Government may authorize person/persons to take over management of the unit partly or wholly initially, for 5 years and thereafter 2 years extension is possible 6 times (Total take over - 5 + 2 x 6 = 17 years). The investigation team appointed by Central Government has powers of civil court which works according to section 21 of Code of Criminal Procedure, 1898. The investigation team records, witnesses, interrogates the persons concerned and submits the report to the Central Government.

Powers of Inspection Officer

The Central Government identifies an officer and authorizes him to ensure the accomplishment of the task of implementing the provisions of this Act. The officer may enter the industrial premises and carry out the scrutiny of all relevant records, conduct enquiry with persons working in industrial units and report back to Central Government. The Central Government may delegate these powers in consultation with State Government to the officers of State Government.

Penalties

1. For false or misleading statement or information, imprisonment is possible for three months or fine upto Rs. two thousand or both.

2. If person fails to comply with the instructions of Central Government, starts a unit without license or works in contravention with provisions of the Act, the penalty is imprisonment upto six months or fine upto Rs. five thousand or both for first conviction and for subsequent conviction, in addition to initial penalty, a fine of Rs. five hundred every day.