IN THE HIGH COURT OF DELHI AT NEW DELHI
Prathiba M. Singh, J.
University Of Patanjali - Petitioner
Versus
Department For Promotion Of Industry And Internal Trade And Ors. - Respondents
W.P.(C) No.12703 Of 2021
Decided On : 24-01-2023
Central Capital Investment Incentive for Access to Credit – Definition of `Industrial unit – Petition has approached the Court challenging rejection of its application for consideration under Industrial Development Scheme for Himachal Praesh & as notified vide notification bearing F. SPS issued by Department for Promotion of Industry and Internal Trade –Held, Petitioner is accordingly permitted to approach Empowered Committee by way of a representation under scheme for clarification on question as to whether Petitioner would qualify as an industrial unit for consideration under scheme – Representation on behalf of Petitioner be filed within a period of 30 days from today – Empowered Committee shall take a decision within four months – It is made clear that this Court has not given a view on question as to whether Petitioner is covered in definition of Industrial Unit or not – All rights and remedies are left upon – Petition disposed of.
JUDGMENT :
[Prathiba M. Singh, J.]
1. This hearing has been done through hybrid mode.
2. The Petitioner in the present petition has approached the Court challenging the rejection of its application for consideration under the Industrial Development Scheme for Himachal Pradesh & Uttarakhand, 2017 as notified vide notification bearing F. No. 2(2)/2018-SPS dated 23.04.2018 issued by the Department for Promotion of Industry and Internal Trade (hereinafter ‘the Scheme’). According to the Petitioner, it is engaged in the education sector and has set up a University in Haridwar, Uttrakhand. The Petitioner claims that it fully satisfies the requirements of the said Scheme and is eligible for consideration under the above-mentioned scheme.
3. The case of the Petitioner is that when it filed an application for registration under the said scheme, it received a rejection in the following terms:-
4. In the present writ petition, the Petitioner prays that it be considered for receiving incentives, under the Scheme, including Central Capital Investment Incentive for Access to Credit (CCIIAC), to the extent of Rs. 5 crores under the Industrial Development Scheme for Himachal Pradesh & Uttarakhand, 2017.
5. Ld. Counsel for the Petitioner relies upon various definitions under the scheme and submits that the Petitioner satisfies the requirements under Clause 5F of the Scheme which merely requires significant capital expenditure and significant employment generation potential. According to the Petitioner, sufficient capital expenditure has been made and more than 135 persons have been given employment by the Petitioner.
6. Ld. Counsel appearing for the Respondents have pointed out firstly that the Petitioner has impleaded the wrong Ministry as the Respondent. It is his submission that the Ministry of Education would be the correct Respondent in this case.
7. On behalf of Respondent No. 3- Directorate of Industries, Dehradun, Uttarakhand is concerned, ld. Counsel for the said Respondent submits that insofar as the negative list of admissible activities are concerned, the Empowered Committee has been given the final discretion.
8. The Court has heard ld. Counsel for the parties. Vide order dated 12th November, 2021, the Court had directed the Petitioner to file certain documents to show how it would be covered by ambit of `industry’. The said order reads as:
4. Learned counsel for the petitioner prays for, and is granted, two weeks’ time to file additional documents in support of its plea that the petitioner/university would fall within the ambit of the term ‘industry’, and hence be covered by the IDS.”
9. Thereafter, vide order dated 21st March, 2022, the Court had prima facie expressed doubt on the eligibility of the Petitioner for registration under the Scheme. The said order reads as:
Educational institutions do not qualify as industrial units under the NEIDS 2017, as the scheme is intended for industrial development.
The court clarified that prior benefits under an earlier scheme do not bar claims for different incentives under a subsequent scheme, emphasizing the need for a pragmatic interpretation of the terms ....
The court established that clear definitions and justifications are essential in administrative decisions regarding subsidies under incentive schemes.
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