( 1 ) THE petitioners sugar mill was establishedin 1933. A substantial expansion of its capacity was allowed bythe Government under the Industries (Development and Regulation) Act, in 1965. The cane crushing capacity under the saidexpansion Scheme was increased from 2,000 tonnes to 2250tonnes of sugar cane per day. On 16-2-1973 the Governmentof India issued a Notification under Section 29- (B) of the saidact and inter-alia, exempted the sugar industry from. applicationof Section 10, 11,11-A and Section 13 of the Act as well asthe Rules framed under the Act. Broadly speaking, the exemption was applicable for setting up new industry and expansionof the existing industry. The exemption could be granted wherethe investment did not exceed Rs. one crore. The said newliberalised Scheme envisaged that the undertaking should merelyregister itself with the Government, without requirement of alicence and other conditions laid down by the said Sections ofthe Act. On 6/12/1975 the Directorate of Sugar andvanaspati, Ministry of Agriculture and Irrigation issued anincentive Scheme for new facrories and for expansion programmes by established undertakings. All sugar factories wereinforme