GUJARAT INDUSTRIAL DEVELOPMENT ACT, 1962
(1) This Act may be called the Gujarat Industrial Development Act, 1962.
(2) It extends to the whole of the State of Gujarat.
(3) It shall come into force at once.
In this Act, unless the context otherwise requires,--
(a) "amenity" includes road, supply Of water or electricity, street lighting,drainage, sewerage, conservancy and such other convenience as the State Government may, by notification in the Official Gazette, specify to be an amenity for the purposes of this Act;
(b) "building" means any structure or erection, or part of a structure or erection, which is intended to be used for residential, industrial, commercial orotherpurposes, whether in actual use or not;
(c) "Collector" means the Collector of a district, and includes any officer specially appointed by the State Government to perform the functions of a Collector under this Act;
1 [(ca) "commercial centre" in relation to any industrial area or in
( 1) For the purposes of securing and assisting in the rapid and orderly establishment, and organisation of industries in industrial areas and industrial estates in the State of Gujarat1[and for the purpose of establishing commercial centres in connection with the establishment and organisation of such industries], there shall be established by the State Government by notification in the Official Gazette, a Corp oration by the name of the Gujarat Industrial Development Corp oration.
( 2 ) The Corp oration shall be a body corporate with perpetual succession and a common seal, and may sue and be sued in its corporate name, and shall be competent to acquire, hold and dispose of property, both movable and immovable, and to contract, and do all things necessary, for the purposes of this Act.
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(1) TheCorporation shall consist of the following 1 [twelve] 2 [Directors], that is to say--
(a)3 [Three] official 2 [Directors] nominated by the State Government, of whom one shall be the Financial Adviser to the Corporation ;
(b) one 4 [Director] nominated by the State Electricity Board constituted under the Electricity (Supply) Act, 1948 ;
(c) one 4 [Director] nominated by the Gujarat Housing Board constituted under the Gujarat Housing Board Act, 1961;
(d) 5 [six] 2 [Directors] nominated by the State Government, from amongst persons appearing to it either to be qualified by reason of experience of, and capability in, industry or trade or finance or to be suitable to represent the interest of persons engaged or employed therein ; and
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5 . Disqualification for1[directorship]
A person shall be disqualified for being nominated as a2[Director] of the Corp oration, if he--
(a) is an employee of the Corp oration, not being the3[Managing Director] thereof, or
(b) is of unsound mind and stands so declared, by a competent court, or
(c) is an undischarged insolvent.
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1 . This word was substituted for the word "member ship", Guj. 11. o f 1986 , 5 ( 6 ( 3 ).
2. This word was substituted for the word "members" Guj. 11. o f 1986 , s. 6 ( 1 ).
3. These words were substituted for the words "Chief
6 . Term of office and conditions of service of1[directors]
( 1 ) The Chairman, Vice-Chairman (if any) and2[Directors] of the Corp oration nominated under clauses (a) to (d) of sub -section ( 1 ) of section 4, shall hold office for a period upto the end of two years from the date of their nomination as2[Directors].
( 2 ) The1[Directors] of the Corp oration nominated under clause (a) or (e) of sub -section ( 1 ) of section 4 shall be entitled to draw such salary and allowances as may be prescribed. Such reasonable additional remuneration, as may be fixed by the State. Government, may be paid to any3[Director] for extra or special services required to be rendered by hi m.
( 3 ) The2[Directors] of the Corp oration nominated under clause (b), (c) or (d) of sub -section ( 1 ) of section 4 shall be
( 1 ) The Corp oration shall me et at such times and places, and shall subject to the provisions of sub -section ( 2 ) observe such rules of procedure in regard to the transactions of its business as may be provided by regulations.
( 2 ) A1[Director], who is directly or indirectly concerned or interested in any contract, loan, arrangement or proposal entered into or proposed to be entered into, by or on behalf of the Corp oration, shall at the earliest possible opportunity disclose the nature of hi s interest to the Corp oration, and shall not be present at any meeting of the Corp oration when the contract, loan, arrangement or proposal is discussed, unless his presence is required by the other2[Directors] for the purpose of eliciting information, and shall not vote thereon :
Provided that, a1[Director] shall not be deemed to be concerne
8 . Cessation of1[directorship]
( 1 ) If a2[Director]
(a) becomes subject to any of the disqualifications mentioned in section 5 , or
(b) tenders hi s resignation in writing to, and such resignation is accepted by, the State Government, or
(c) is absent without the Corp oration's permission from three consecutive meetings of the Corp oration, or from all meetings of the Corp oration for three consecutive months, or
(d) is convicted of an offence involving moral turpitude, he shall cease to be a2[Director] of the Corp oration.
( 2 ) The State Government may by order suspend from office for such period as it thinks fit, or remove from office any2[Director] of the
Any vacancy of a1[Director] of the Corp oration shall be filled as early as practicable, and in like manner as if the nomination were being made initially :
Provided that, during any such vacancy the continuing2[Directors] may act as if no vacancy had occurred.
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1. This word was substituted for the word "member", Guj. 11 of 1986, s. 10(1).
2. This word was substituted for the word "members", Guj. 11 of 1986 , s. 10 ( 2 )
10 . Temporary absence of1[directors]
( 1 ) If the Chairman or any other2[Director] of the Corp oration is by reason of illness or other wise rendered temporarily incapable of carrying out hi s duties, or is granted leave of absence by the State Government, or is other wise unable to attend to hi s duties in circumstances not involving the cessation of hi s3[directorship] under section 8 , the State Government may appoint another person to act in hi s place and carry out duties and functions entrusted to hi m by or under this Act until such Chairman or2[Director], as the case may be, resumes hi s duties.
( 2 ) If a Vice-Chairman has been appointed in the absence of the Chairman, the Vice-Chairman shall be competent to carry out the duties and functions of the Chairman.
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No disqualification of, or defect in the appointment of any person acting as the Chairman or Vice-Chairman or a1[Director] of the Corp oration, shall vitiate any act or proceeding of the Corp oration, if such act or proceeding is other wise in accordance with the provisions of this Act.
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1. This word was substituted for the word "member", Guj. 11 of 1986 , s. 12 .
( 1) The State Government shall appoint a1[Managing Director], and a Chief Accounts Officer of the Corp oration.
( 2) The Corp oration may appoint such other officers and servants, sub ordinate to the officers mentioned in sub -section ( 1 ), as it considers necessary for the efficient performance of its duties and functions,
( 3 ) The conditions of appointment and service of the officers and servants and their scales of pay shall--
(a) as regard the1[Managing Director] and the Chief Accounts Officer, be such as may be prescribed, and
(b) as regards the other officers, and servants, be such as may be determined by regulations
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1. This wor
The functions of the Corp oration shall be
(i) generally to promote and assist in the rapid and orderly establishment, growth and development of Industries in the State of Gujarat, and
(ii) in particular and without prejudice to the generality of clause i) to--
(a) establish and manage industrial estates at place selected by the State Government ;
(b) develop industrial area selected by the State Government for the purpose and make them available for undertakings to establish themselves;
(c) develop land on its own account of for the State Government for the purpose of facilitating the location of industries1[and commercial centres] thereon ;
(d) assist financi
Subject to the provisions of this Act the Corp oration shall have power--
(a) to acquire and hold such property, both movable and immovable as the Corp oration may deem necessary for the performance of any of its activities, and to lease, sell, exchange or other wise transfer any property held by it on such conditions as may be deemed proper by the Corp oration ;
(b) to purchase by agreement or to take on lease or under any form of tenancy any land, to erect such buildings and to execute such other works as may be necessary for the purpose of carrying out its duies and functions ;
(c) to provide or cause to be provided amenities and common facilities in1[industrial estates, commercial centres and industrial areas] and construct and maintain or cause to be maintained2[works, buildings, amenitie
All permissions, orders, decisions, notices and other documents of the Corp oration shall be authenticated by the signature of the1[Managing Director] of the Corp oration or any other Officer authorised by the Corp oration in this behalf.
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1. These words were substituted for the words "Chief Executive officer., s. 16 .
1[16. Notification of any industrial area as notified area under Gujarat Municipalities Act.
Notwithstanding anything contained in the provisions for the time being in force relating to notified areas in the Gujarat Municipalities Act, 1963 , the State Government may, by notification in the Official Gazette--
(a) declare that the provisions relating to notified areas and any other provisions of that Act shall extend to and be brought into force in any industrial area, and thereupon such area shall be deemed to be a notified area under that Act;
(b) appoint the Corp oration or any officer or committee thereof for the purposes of the assessment and recovery of any taxes, when imposed under the provisions so extended and for enforcing such provisions ;
The State Government may from time to time issue to the Corporation such general or special directions of policy as it thinks necessary or expedient for the purposes of carrying out the purposes of this Act and the Corporation shall be bound to follow and act upon such directions.
All property funds and other assets vesting in the Corporation shall be held and applied by it, subject to the provisions of and for the purposes of this Act.
(1) The Corporation shall have and maintain its own funds, to which shall be credited-
(a) all moneys received by the Corporation from the State Government by way of grants, subventions, loans, advances or otherwise ;
(b) all fees, costs and charges received by the Corporation under this Act;
(c) all moneys received by the Corporation from the disposal of lands, buildings and other properties, movable and immovable and other transactions;
(d) all money s received by the Corporation by way of rents and profits or in any other manner or from any other source.
(2) The Corporation may keep in current or deposit account with the State Bank of India or any other Bank approved by the State Government in this beh
The State Government may make such grants, subventions, loans and advances to the Corporation as it may deem necessary for the performance of the functions of the Corporation under this Act and all grants, subventions, loans and advances made shall be on such terms and conditions as the State Government may after consulting the Corporation determine.
( 1 ) The Corp oration may, subject, to such conditions as may be prescribed in this behalf, borrow money in the open market or other wise with a view to providing itself with adequate resources.
( 2 ) All moneys borrowed under sub -section ( 1 ) may be guaranteed by the State Government as to the repayment of principal and the payment of interest at such rates and such conditions as the State Government may determine at the time the moneys are borrowed.
1[Explanation.--The expression "to borrow money" with all its grammatical variations and cognate expressions includes, acceptance of deposits (not being deposits accepted under section 22 ) from the public for a specified period and on payment of interest thereon to the depositors at specified rates].
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The Corporation may accept deposits on such conditions as it deems fit from persons, authorities or institutions to whom allotment or sale of land, buildings or sheds is made or is likely to be made in furtherance of the objects of this Act.
(1) The Corporation shall make provision for such reserve and other specially denominated funds and in such manner and to such extent as the State Government may, from time to time, direct.
(2) The management of the funds referred to in sub-section (1), the sums to be transferred from time to time to the credit thereof and the application of money comprised therein, shall be determined by the Corporation.
(3) None of the funds referred to in sub-section (1) shall be utilised for any purpose other than that for which it was constituted, without the previous approval of the State Government.
(1) The Corporation shall have the authority to spend such sums as it thinks fit for the purposes authorised under this Act from out of the general fund of the Corporation referred to in section 19 or from the reserve and other funds referred to in section 23, as the case may be.
(2) Without prejudice to the generality of the power conferred by sub-section (1), the Corporation may contribute such sums as it thinks fit towards expenditure incurred or to be incurred by any local authority or statutory public undertaking in the performance, in relation to any of its industrial estates or industrial areas, of any of the statutory functions of such authority or undertaking, including expenditure incurred in the acquisition of land.
(3) No expenditure other than capital expenditure shall be incurred by the Corporation out of moneys borrowed or
(1) The Corporation shall, by such date in each year as may be prescribed, prepare and submit to the State Government for approval an annual financial statement and the programme of work for the succeeding financial year.
(2) The annual financial statement shall show the estimated receipts and expenditure during the succeeding financial year in such form and detail as may be prescribed.
(3) With the approval of the State Government the Corporation shall be competent to make variations in the programme of work in the course of the year :
Provided that all such variations and re-appropriations out of the sanctioned budget are brought to the notice of the State Government by a supplementary financial statement.
(4) A copy each of the annual financial s
(1) The Corporation shall maintain books of account and other books in relation to its business and transactions in such form and in such manner, as may be prescribed.
(2) The accounts of the Corporation shall be audited by an auditor appointed by the State Government, in consultation with the Comptroller and Auditor General of India.
(3) As soon as the accounts of the Corporation are audited, the Corporation shall send a copy thereof together with the copy of the report of the auditor thereon to the State Government.
(4) The State Government shall cause the accounts of the Corporation together with the audit report thereon forwarded to it under sub-section (3) to be laid annually before the State Legislature.
(1) Notwithstanding anything contained in section 26, the State Government may order that there shall be concurrent audit of the accounts of the Corporation by such person as it thinks fit. The State Government may also direct a special audit to be made by such person as it thinks fit of the accounts of the Corporation relating to any particular transaction or class or series of transactions or to a particular period.
(2) The State Government may pass such orders on the report of the special audit and the Corporation shall be bound to comply with such order.
(3) The report on the special audit shall be laid before the State Legislature.
(4) When an order is made under sub-section (1), the Corporation shall present or cause to be presented for audit such accounts and shall furnish to the person
1[REPEALED]2[***] NON-APPLICATION OF RENT CONTROL ACTS TO CORP ORATION PREMISES
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1. This new heading was substituted for the original by Guj. 14 of 1968 , s.. 4 .
2. The words "POWER TO EVICT PERSONS FROM AND" were expressly repealed by Guj. 12 of 1973 , s. 19 .
In thisChapter,1 --
(a) "competent authority" means the 2 [Managing Director] of the Corporation and includes suchotherofficer of the Corporation as the State Government may by notification in the Official Gazette authorise to perform the functions of a competent authority under this Chapter for such area as may be specified in the notification ;
(b) "corporation premises" means any premises belonging to or vesting in the Corporation or taken on lease by the Corporation or entrusted to the Corporation under the Act for management and use for the purposes of this Act;
(c) "premises"means any land, building or part of a building and includes a hut,shed orotherstructure of part thereof.
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Power to evict certain persons from Corporation premises.
Power to recover rent or damages as arrears of land revenue.
Appeal.
Bar of jurisdiction of Civil Courts.], Repealed by Guj. 12 of 1973, S.19.
The Bombay Rents, Hotel and Lodging House Rates, Control Act, 1947(Bom. LVII of 1947), or any other law corresponding there to for the time being in force in any part of the State--
(a) shall not apply to any premises belonging to or vesting in the Corporation under or for the purposes of this Act;
(b) shall not apply as against the Corporation to any tenancies, or like relationship created by the Corporation in respect of any such premises;
(c) but shall apply to any premises let to the Corporation.
(1) Whenever any land is required by the Corporation for any purpose in furtherance of the objects of the Act, but the Corporation is unable to acquire it by agreement, the State Government may, upon an application of the Corporation in that behalf, order proceedings to be taken under the relevant land acquisition law for acquiring the same on behalf of the Corporation as if such lands were needed for a public Purpose within the meaning of the relevant land acquisition law.
(2) The amount of compensation awarded and all other charges incurred in the acquisition of any such land shall be forthwith paid by the Corporation and thereupon the land shall vest in the Corporation.
Where in pursuance of section 30 any proceedings are taken for acquiring any land for the Corporation, then in respect of such proceedings--
(1) section 17 of the Land Acquisition Act, 1894 as in force in the Bombay and Kutch areas of the State, and
(2) section 17 of the Land Acquisition Act, 1894 as applied to the Saurashtra area of the State,
shall have effect as if the words "waste or arable" were deleted from sub-section (1) thereof.
(1) For the furtherance of the objects of this Act, the State Government may, upon such conditions as may be agreed upon between it and the Corporation, place at the disposal of the Corporation any lands vested in the State Government.
(2) After any such land has been developed by, or under the control and supervision of the Corporation, it shall be dealt with by the Corporation in accordance with the regulations made, and directions given by the State Government in this behalf.
(3) If any land placed at the disposal of the Corporation under sub-section (1) is required at any time thereafter by the State Government, the Corporation shall replace it at the disposal of the State Government upon such terms and conditions as the State Government may after consulation with the Corporation determine.
1[ CHAPTER VI-A
levy of betterment charge
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1 . Chapter VIA was inserted by Guj. 14 of 1968 , s. 6 .
Where any land is developed or any scheme or work is undertaken by the Corporation under the provisions of this Act, and any other land not vesting in or under the control, of the Corporation is benefited or is likely to be benefited by such development, scheme or work, an officer authorised by the State Government in this behalf (hereinafter referred to as "the authorised officer" ) shall give notice to the person known or believed to be the owner of or interested in, such land requring him to appear before him either personally or by an agent at a time and place therein mentioned (such time not being earlier than thirty days from the date of notice) to state his objections, if any, to the imposition and recovery of a betterment charge on such Land:
Provided that no such notice shall be given unless the State Government after consulting the Corporation and the Collector has declar
On the date fixed under section 32A or on such other date to which the inquiry may be adjourned, the authorised officer shall, after holding a formal inquiry in accordance with the provisions of Chapter XII of the Bombay Land Revenue Code, 1879(Bom.V of 1879) and after hearing the objections, if any, stated by the persons as required by notice under section 32A., make an order fixing the amount of the betterment charge leviable on the land. Such order shall also specify,
(a) the area of the land benefited by the development, scheme or work as the case may be,
(b) the increase in the value of such land on account of such development, scheme or work,
(c) the date from which the betterment charge shall be levialble.
The increase in value of any land on account of any development, scheme or work referred to in section 32A shall be the amount by which the value of the land on the date of the completion of the development, scheme or work, as the case may be is likely to exceed or has exceeded the value of the land as on the date on which the development, scheme of work was undertaken and the betterment charge shall be one half of such increase in value.
Explanation.--For the purposes of this section, the Corporation shall by notification in the Official Gazette, specify--
(a) the date on which the development, scheme or work was undertaken by it.
(b) the date on which the same was completed.
(1) Any person aggrieved by the order fixing the betterment charge may, by a written application to the authorised officer, require that the matter be referred, to the District judge within the limits of whose jurisdiction the land is situate.
(2) Any such application shall be made within six weeks from the date on which the order of the authorised officer referred to in sub-section (1) was communicated to such person and shall be in such form as may be prescribed.
(3) The provisions of sections 5, 12 and 14 of the Limitation Act, 1963 (XXXVI of 1963), shall apply to the computation of the time fixed for reference under sub-section (2).
(4) The authorised Officer shall make the reference, in such manner as may be prescribed.
The order fixing the betterment charge under section 32B, subject to a reference to the District Judge, under section 32D, and the decision of the District Judge on such reference shall be final.
From the date specified in the order fixing the betterment charge as the date from which such charge shall be leviable, or from such date as may be otherwise specified by the District Judge under section 32D as the date from which such charge shall be leviable, the betterment charge recoverable in respect of any land shall, subject to the prior payment of the land revenue, if any, due to the State Government thereon, be a first charge on the land in respect of which such betterment charge is leviable.
The betterment charge shall be payable to the Corporation on the date fixed by the Corporation :
Provided that the owner of the land in which such charge is imposed may execute an agreement in favour of the Corporation agreeing to pay the amount of such charge by annual installments together with interest at such rate and within such period as may be prescribed.]
(1) If the Corporation after holding a local inquiry, or upon a report from any of its officers or other information in its possession, is satisfied that the owner of any land in an industrial area has failed to provide any amenity in relation to the land which in the opinion of the Corporation ought to be provided or to carry out any development of the land for which permission has been obtained under this Act the Corporation may, after giving the owner a reasonable opportunity of being heard, serve upon the owner a notice requiring him to provide the amenity or carry out the development within such time as may be specified in the notice.
(2) If any such amenity is not provided or any such development is not carried out within the time specified in the notice, the Corporation or may itself provide the amenity or carry out the development or have it provided or carried out through
( 1 ) Where the erection of any building in1[an industrial estate, commercial centre or] industrial area has been commenced, or is being carried on, or has been completed, or any exisiting building is altered, in contravention of the terms on which such building or the land on which it stands is held or granted under this Act any Officer of the Corp oration empowered by it in this behalf may, in addition to any prosecution that may be instituted under this Act make an order directing that such erection shall be demolished by the owner thereof within such period not exceeding two months as may be specified in the order; and on the failure of the owner to comply with the order, the Officer may himself cause the erection to be demolished and the expenses of such demolition shall be recoverable by the Corp oration from the owner :
Provided that, no such order shall be made unless the o
(1) Where the erection of any building in 1 [an industrial estate, commercial centre or] industrial area has been commenced, or is being carried on, or has been completed, or any existing building is altered, in contravention of the terms on which such building or the land on which it stands is held or granted under this Act, any officer of the Corporation empowered in this behalf may, in addition to any prosecution that may be instituted under this Act, make an order requiring the building operations in relation to such erection to be discontinued on and from the date of the service of the order.
(2) Where such building operations are not discontinued in pursuance of the requisition undersub-section(1),the Corporation or the officer empowered as aforesaid may require any police officer to remove the person by whom the erection of the building has been commenced and all his assista
(1) Any person who whether at his own instance or at the instance of any other person undertakes or carries out construction of or alterations to any building in an industrial estate or industrial area contrary to the terms under which he holds such building or land under this Act shall, on conviction, be punished with fine which may extend to ten thousand rupees, and in the case of a continuing contravention, with a further fine which may extend to five hundred rupees for every day during which such offence continues after conviction for the first commission of the offence.
(2) Any person who uses any land or building in an industrial, estate or industrial area contrary to the terms under which he holds such land or building under this Act, or in contravention of the provisions of any regulations made in this behalf shall, on conviction, be punished with fine which may extend to f
1 [(1) (a) For the purpose of,--
(i) carrying gas, water or electricity within any area taken up for development under paragraph. (b) of clause (ii) section13 (hereinafter referred to as "the said area") ; or
(ii) constructing any sewers or drains necessary for carrying off workings and waste liquids of an industrial process through the said area,
the Corporation may, after giving reasonable notice to the owner or occupier of any building or land in the said area, lay down, place, maintain, alter, remove, or repair any pipes, pipelines, conduits, supply or service lines, posts or other appliances or apparatus in, on, under, over, along or across any land in the said area.
(b) For the purpose of,--
(i) car
Any officer of the State Government, any1[Director] of the Corp oration and any person either generally or specially authorised by the Corp oration in this behalf, may enter into or upon any land or building with or without assistant or workmen for the purpose of--
(a) making any inspection, survey, measurement, valuation or enquiry or taking levels of such land or buildings ;
(b) examining works under construction and ascertaining the course of sewers and drains ;
(c) digging or boring into the sub -soil ;
(d) setting out boundaries and intended lines of work ;
(e) marking such levels, boundaries and lines by placing marks and cutting trenches ;
(f) doing any
The State Government may, by notification in the Official Gazette, nominate any officer of the Corporation to be acontroller or licensing authority under any law for the time being in force relating to the procurement or distribution of any commodity in respect of the industrial undertakings 1 [or commercial establishments] established or to be established in 2 [the industrial estates, commercial centres or].industrial areas entrusted to or developed by the Corporation and no such nomination shall be called in questionmerely on the ground that such officer is not an officer of the State Government.
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1.These words were inserted Guj.II of 1986, s. 23(1)
2. These words were substituted for the words "the industrial estateor", Guj.II of 1986; s. 23(2).
Notwithstanding anything contained in any other law, or in any licence or permit, if the State Government is satisfied either on a recommendation made in this behalf by the Corporation or otherwise, that the setting up of an industrial undertaking 1 [or a commercial establishment within an industrial area or outside] is impeded by a local authority's refusal to grant, or by such authority's insistence on conditions, which the State Government considers unreasonable for the grant of any amenity, the State Government may direct the local authority to grant the said amenityon such conditions as it considers fit; and there upon the amenity shall be granted :
Provided that, the charge to be paid for granting or continuing such amenity to the local authority concerned is not less than the cost to the local authority or licensee concerned for providing such amenity :
1[ 40 A. Liability of lessee to pay taxes etc.
Where any land is leased by the Corp oration, the lessee shall, pay to the Corp oration before such date or dates as may be prescribed, an amount equal to the land revenue, rent, cesses, rates, and other taxes, if any, payable in respect of such land, which would have been payable by the Corp oration had the land not been leased.]
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1 . Section 40 A was inserted by Guj. 14 of 1968. s . 7 .
All sums payable by any person to the Corporation or recoverable by it by or under this Act and all charges or expenses incurred in connection therewith shall, without prejudice to any other mode of recovery, be recoverable as arrear of land revenue on the application of the Corporation.
(1) All notices, orders and other documents required by this Act, or any rule, or regulation made there under to be served upon any person shall save as otherwise provided in this Act or such rule or regulation, be deemed to be duly served-
(a) where the person to be served is a company, the service is effected in accordance with the provisions of section 51 of the Companies Act, 1956 ;
(b) where the person to be served is a firm, if the document is addressed to the firm at its principal place of business, identifying it by the name or style under which its business is carried on, and is either
(i) sent under a certificate of posting or by registered post, or
(ii) left at the said place of business ;
(c)
Every public notice given under this Act or any rule or regulation made there under shall be in writing over the signature of the officer concerned and shall be widely made known in the locality to be affected thereby by affixing copies thereof in conspicuous public places, within the said locality, or by publishing the same by beat of drum or by advertisement in a local newspaper, or by any two or more of these means, and by other means as the officer may think fit.
Where any notice, order or other document issued or made under this Act or any rule or regulation made there under requires anything to be done for the doing of which no time is fixed in this Act or the rule or regulation, the notice, order or other document shall specify a reasonable period of time for doing the same or complying therewith.
1[ 44A. Quinquennial valuation of assets and liabilities of the Corporation
The Corporation shall quinquennially have a valuation of its assets and liabilities made by a valuer appointed with the approval of the State Government:
Provided that it shall be open to the State Government to direct a valuation to be made at any time it may consider necessary.]
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1 . Section 44 A was inserted by Guj. 14 of 1968. s . 8 .
(1) The Corporation shall furnish to the State Government such returns, statistics, reports, accounts and other information with respect to its conduct of affairs, properties or activities or in regard to any proposed work or scheme as the State Government may from time to time require.
(2) The Corporation shall in addition to the audit report referred to in section 26 furnish to the State Government an annual report on its working as soon as may be after the end of each financial year in such form and detail as may be prescribed, and a copy of the annual report shall be placed before the State Legislature as soon as may be after it is received by the State Government.
Where the State Government is satisfied that in respect of 1 [any particular industrial estate, commercial centre or] industrial area, or any part thereof, the purpose for which the Corporation was established under this Act has been sub-stantially achieved so as to render the continued existence of 2 [such estate, centre or] area or part there of under the Corporation un necessary the State Government may, by notification in the Offcial Gazette, declare that or 3 [such industrial estate, commercial centre or] industrial area or part thereof has been removed from the jurisdiction of theCorporation. Thereupon the State Government may after consulting the Corporation pass such orders in respect of consequential financial arrangements with the Corporation, and the transfer or apportionment of any assets and liabilities of the Corporation as it may deem fit. The State Government may also make suchother incidental arrangements for
(1) If the State Government after giving the Corporation an opportunity to render an explanation is satisfied that the Corporation has made a default in performing any duty or obligation imposed or cast on it by or under this Act the State Government may fix a period for the performance of that duty or obligation and give notice to the Corporation accordingly.
(2) If in the opinion of the State Government the Corporation fails or neglects to perform such duty or obligation within the period so fixed for its performance, it shall be lawful for the State Government, after having given the Corporation to show cause against such order, by order supersede the Corporation and thereafter reconstitute the Corporation, as it deems fit.
(3) After the super session of the Corporation and until it is recontituted in the manner laid down in Chapter I
(1) The State Government if satisfied that the purposes for which the Corporation was established under this Act have been substantially achieved so as to render its continuance unnecessary, it may by notification in the Official Gazette declare that the Corporation shall be dissolved with effect from such date as may be specified in the notification, and thereupon the Corporation shall stand dissolved accordingly.
(2) From the said date--
(a) all properties, funds and dues which are vested in, or realisable by, the Corporation shall vest in, or be realisable by, the State Government; and
(b) all liabilities which are enforceable against the Corporation shall be enforceable against the State Government.
Unless otherwise expressly provided no Court shall take cognisance of any offence relating to property belonging or vested by or under this Act in the Corporation punishable under this Act, except on the complaint of, or upon information received from the Corporation or some person authorised by the Corporation by general or special order in this behalf.
(1) The Corporation or any person authorised by the Corporation by general or special order in this behalf may, either before or after the institution of the proceedings, compound any offence made punishable by or under this Act.
(2) Where an offence is compounded, the offender, if in custody shall be discharged and no further proceedings shall be taken against him in respect of the offence compounded.
(1) Whenever an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, or was responsible to the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :
Provided that, nothing contained in this sub-section shall render any such person liable to any punishment under this Act if he proves that the offence was committed without his knowledge and that he exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, o
Any person who obstructs the entry of a person authorised under section 38 to enter into or upon any land or building or molests such person after such entry or who obstructs the lawful exercise by him of any power conferred by or under this Act shall, on conviction, be punished with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
1[ 52 A. Penalty for obstructing etc. persons performing duty under contract
If any person obstructs or molests any person with whom the Corp oration has entered into a contract in the performance or execution by such person of hi s duty or of any thing which he is empowered or required to do under this Act he sh all, on conviction, be punished with imprisonment for a term which may extend to three months or with fine which may extend to five hundred rupees, or, with both.
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1. Sections 52A, 52B, 52C were inserted by guj. 14 of 1968, s. 9.
If any person removes any mark set up for the purpose of indicating any level, boundary line or direction necessary to the execution of works authorised under this Act, he shall, on conviction, be punished with imprisonment for a term which may extend to three months or with fine which may extend to five hundred rupees or with both.
Any person, who obstructs the lawful exercise of any power conferred by or under Chapter V shall, on conviction, be punished with fine which may extend to one thousand rupees.]
(1) The State Government, after consultation with the Corporation in regard to matters concerning it, may, by notification in the Official Gazette, make rules to carry out the purposes of this Act :
Provided that, consultation with the Corporation shall not be necessary on the first occasion of the making of rules under this section, but the State Government shall take into consideration any suggestions which the Corporation may make in relation to amendment of such rules after they are made.
(2) In particular and without prejudice to the generality of the foregoing power such rules .may provide for all matters expressly required or allowed by this Act to be prescribed by rules and fees which may be charged by the Corporation.
(3) All rules made under this section shall be laid for not less th
(1) The Corporation may, with the previous approval of the State Government make regulations consistent with this Act and the rules made thereunder, and to carry out the purposes of this Act.
(2) In particular and without prejudice to the generality of the foregoing power such regulations may provide for all matters expressly required or allowed by this Act to be provided by regulations.
(3) All regulations made under this section shall be published in the Official Gazette and shall be laid for not less than thirty days before the State Legislature as soon as possible after they are made, and shall be subject to rescission by the Legislature, or to such modification as the Legislature may make, during the session in which they are so laid, or the session immediately following.
(4) Any rescissi
No suit, prosecution or other legal proceedings shall lie against any person for anything which is in good faith done or intended to be done under this Act or any rule or regulation made thereunder.
Legal Comments
"Scope of GIDA Sec.16" - Section 16 enables a notification to declare an industrial area also as a notified area under the Gujarat Municipalities Act, thus creating a separate administrative unit (industrial township) and accommodating municipal services via the GIDC; this does not violate Parts IX and IXA of the Constitution but rather aligns with Article 243Q’s proviso to allow industrial townships - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248]
"Notified area mechanics" - A notified area under Sec.16 is created by a mandatory-like notification (not a procedural hearing), enabling the GIDC-developed industrial areas to be treated as notified areas; hearing is not a prerequisite for the Sec.16 notification itself - [NARODA NAGAR PANCHAYAT, AHMEDABAD VS STATE - 1976 0 Supreme(Guj) 80]
"Constitutional framework - Saij Gram" - The Supreme Court in Saij Gram Panchayat v. State of Gujarat held that GIDA operates in a separate sphere from Part IX(IXA) and that Sec.16 notifications can convert industrial areas into notified areas/industrial townships consistent with Article 243Q’s proviso; the notification excludes areas from Panchayats and aligns with municipal governance for urbanized zones - [RAKAM SINGH VS STATE OF U. P. - 2015 0 Supreme(All) 429], [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248], [Bharwad Virjibhai Gokulbhai VS Gujarat State Election Commission - 2012 0 Supreme(Guj) 379]
"Saij Gram – Section 16 interplay" - The Saij Gram decision clarifies that Section 16 notifications and the creation of industrial townships via Sec.16 are compatible with Part IX/IXA; the Governor has discretion to designate industrial townships by public notification considering area size and municipal services, avoiding dual governance conflicts - [U. P. STATE INDUSTRIAL DEVELOPMENT CORP. LTD. VS COMMISSIONER OF INCOME-TAX-II, KANPUR - 2016 0 Supreme(All) 1045], [Bharwad Virjibhai Gokulbhai VS Gujarat State Election Commission - 2012 0 Supreme(Guj) 379]
"Notified area as industrial township" - Once an industrial area is declared a notified area under Section 16 and Section 264A, it becomes an industrial township for purposes of local self-government, enabling municipal services to be supplied by the GIDC or associated bodies; the earlier Panchayat/Government framework may cease to apply to those specific areas - [RAJNIKANT AMBALAL AMIN, ADULT, OCC AGRICULTURIST VS STATE - 2000 0 Supreme(Guj) 64], [GAJRAJ VS STATE OF U. P. - 2011 0 Supreme(All) 2893]
"Dual regulation avoidance" - The rationale for Section 16 is to avoid dual control/administration by separating industrial estates from Panchayats; this justifies conversion of industrial areas into a separate administrative unit (industrial township) to streamline development and revenue capture for infrastructure - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248], [Gujarat Industrial Development Corporation VS Commissioner of Income-Tax, Gujarat, Ahmedabad - 1984 0 Supreme(Guj) 325]
"Conditional/Notwithstanding language" - Sec.16 begins with "notwithstanding anything contained in the provisions for the time being in force relating to notified areas in the Gujarat Municipalities Act, 1963", signaling a strong legislative override to align Industrial Development with municipal governance via notification; this supports the deemed-notified status under GMA - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248]
"Sec.16 vs. Sec.9(2) Panchayats" - Notifications under Sec.16 may exclude areas from Gram/Panchayats and simultaneously bring them under Municipalities Act governance; consultation under Sec.9(2) of Panchayats Act is treated as adequate or non-mandatory in different rulings, depending on the case, but validity is sustained when prior consultation and resolutions exist - [RAJNIKANT AMBALAL AMIN, ADULT, OCC AGRICULTURIST VS STATE - 2000 0 Supreme(Guj) 64], [CHHANI NAGAR PANCHAYAT VS STATE - 2000 0 Supreme(Guj) 63]
"GIDC as a State instrumentality" - The GIDC is a state-created corporation under GIDA; its acquisition, development, and land allocation framework are treated as public purpose activities; the Court has upheld acquisitions as consistent with public purposes funded via government arrangements with the GIDC - [Krishnakumar Mills Company LTD. VS State Of Gujarat - 1971 0 Supreme(SC) 126], [YOGENDRA JIKRUT MISHRA VS DISTRICT DEVELOPMENT OFFICER - 2004 0 Supreme(Guj) 11]
"Sec.16 and tax/finance implications" - Exemption/assessment issues arise when considering Sec.16-created areas; high courts have held that the GIDC’s industrial areas can be treated as notified areas for municipal/ tax purposes; the exemptions under tax statutes (e.g., 10(20A) of IT Act) depend on whether GIDC is an authority constituted for housing/planning/development; the Supreme Court in Gujarat Industrial Development Corporation v. CIT clarifies that “development” can encompass industrial development and related urban planning; thus Sec.16 areas may affect tax treatment depending on the interpretation of “development” - [Gujarat Industrial Development Corporation VS Commissioner of Income-Tax, Gujarat, Ahmedabad - 1984 0 Supreme(Guj) 325], [Gujarat Industrial Development Corporation VS Commissioner of Income-Tax, Gujarat, Ahmedabad - 1984 0 Supreme(Guj) 325], [Bharwad Virjibhai Gokulbhai VS Gujarat State Election Commission - 2012 0 Supreme(Guj) 379]
"Sec.16 – administrative unit creation" - The High Court has explained that creation of a separate administrative unit (industrial township) under Sec.16 is not constitutionally impermissible; the Governor’s notification under Article 243Q(1) proviso permits designation of an area as an industrial township to facilitate development and avoid dual administration - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248], [RAKAM SINGH VS STATE OF U. P. - 2015 0 Supreme(All) 429]
"Panchayat impact and 12-A/243-Q" - Section 12-A of some Acts (e.g., UP Act) illustrates similar exclusionary effects where an area designated as an industrial township is removed from Panchayat jurisdiction; Gujarat cases similarly treat industrial townships as distinct governance zones to ensure efficient development and service delivery - [DATTAJI CHIRANDAS VS STATE - 1998 0 Supreme(Guj) 187], [GAJRAJ VS STATE OF U. P. - 2011 0 Supreme(All) 2893]
"Section 16 – scope of 'industrial area'” - The term “industrial area” under GIDA is broad, covering industrial estates and townships; the Sec.16 power allows treating an industrial area as a notified area and extends some municipal provisions to the area; this is intended to support rapid industrial development with integrated municipal services - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248], [Nepra Resources Management Pvt. Ltd. VS State Of Gujarat - 2024 0 Supreme(Guj) 377]
"GID Act and Municipalities Act coexistence" - The interplay between GIDA and GMA is reconciled by recognizing that GIDA governs industrial development while GMA governs municipal services; when Sec.16 deems an area a notified area, municipal provisions apply to that area as per GMA, reducing friction between local governance regimes - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248], [Gujarat Industrial Development Corporation VS Commissioner of Income-Tax, Gujarat, Ahmedabad - 1984 0 Supreme(Guj) 325]
"Limitations on challenge to Sec.16" - Courts have permitted challenges to the process (e.g., consultation under Sec.9(2)) but have generally upheld the validity of Sec.16 notifications when the statutory framework and constitutional interpretations (Article 243Q, Saij Gram) support creation of industrial townships via notified areas - [RAJNIKANT AMBALAL AMIN, ADULT, OCC AGRICULTURIST VS STATE - 2000 0 Supreme(Guj) 64], [CHHANI NAGAR PANCHAYAT VS STATE - 2000 0 Supreme(Guj) 63]
"Industrial relocation and non-conforming zones" - Several Indian High Court decisions discuss redevelopment, non-conforming industrial zones, and master plan alignment; while not directly Section 55 of GIDA, these authorities provide context on how industrial areas interact with urban planning and redevelopment mandates, which can influence interpretation of industrial township status under Sec.16 - [Bhoomi Chattar Singh Rachhoya VS Union of India - 2019 0 Supreme(Del) 2472], [MGR INDUSTRIES ASSOCIATION VS STATE OF U. P. - 2017 2 Supreme 164]
"GIDC governance and dispute resolution" - Cases discuss GIDC governance, board composition, tenure of Chairman, and disputes over allotments; consistent with the Act’s aim to provide an autonomous but state-supervised development framework; the Supreme Court and High Courts have emphasized accountability and due process in decision-making affecting industrial plots - [NARODA NAGAR PANCHAYAT, AHMEDABAD VS STATE - 1976 0 Supreme(Guj) 80], [DATTAJI CHIRANDAS VS STATE - 1998 0 Supreme(Guj) 187]
"Sec.55 and protective provisions" - Section 55 of the GIDA provides protections for actions taken in good faith; Section 55A provides notice-related protections; these provisions ensure that acts undertaken under Sec.16 and related notifications are shielded from frivolous suits if in good faith and within statutory authority - (general reference to GIDA provisions)
"GST exemption status of notified areas" - In a related GST case, the Notified Area Authority, Vapi, created under GIDA, was not considered a local or governmental authority for GST exemption; this demonstrates the nuanced treatment of governance status of GIDA-created areas in tax law contexts - [Nepra Resources Management Pvt. Ltd. VS State Of Gujarat - 2024 0 Supreme(Guj) 377]
"Land acquisition framework" - Land acquisition for industrial town development under GIDA is upheld as public purpose; the arrangement often involves government funding arrangements and long-term loans to GIDC; the court treats acquisition as valid where consistent with the Act’s scheme - [Krishnakumar Mills Company LTD. VS State Of Gujarat - 1971 0 Supreme(SC) 126], [ASHOKKUMAR GORDHANBHAI VS STATE - 1968 0 Supreme(Guj) 81]
"Notified area mechanics – procedural cautions" - The core takeaway is that Sec.16 is a potent instrument to convert industrial areas into notified areas; however, governments should ensure proper consultation (where required) and alignment with constitutional provisions to withstand scrutiny - [RAJNIKANT AMBALAL AMIN, ADULT, OCC AGRICULTURIST VS STATE - 2000 0 Supreme(Guj) 64], [CHHANI NAGAR PANCHAYAT VS STATE - 2000 0 Supreme(Guj) 63]
"Residential/urban planning alignment" - Section 16 and 264A alignment with Article 243Q(1) proviso ensures that industrial townships can be managed under specialized governance, which supports urban planning and development in transition zones without undermining rural governance structures - [RAKAM SINGH VS STATE OF U. P. - 2015 0 Supreme(All) 429], [Bharwad Virjibhai Gokulbhai VS Gujarat State Election Commission - 2012 0 Supreme(Guj) 379]
"Judicial approach to industrial-township status" - The overarching judiciary stance is that there is no inherent constitutional violation in treating industrial areas as notified industrial townships under Sec.16; the policy is to accelerate industrial growth and provide integrated municipal services, not to erode constitutional governance structures - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248], [U. P. STATE INDUSTRIAL DEVELOPMENT CORP. LTD. VS COMMISSIONER OF INCOME-TAX-II, KANPUR - 2016 0 Supreme(All) 1045], [Bharwad Virjibhai Gokulbhai VS Gujarat State Election Commission - 2012 0 Supreme(Guj) 379]
"Impact on Gram Panchayats" - The conversion of areas from Gram Panchayats to notified industrial townships under Sec.16 can lead to loss of Panchayat jurisdiction over those areas; the Supreme Court recognized this as permissible where it serves industrial development objectives and avoids dual administration - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248], [RAKAM SINGH VS STATE OF U. P. - 2015 0 Supreme(All) 429]
"Key takeaway" - Section 16 of the GIDA is a constitutional-compatibility-forwarding provision enabling rapid industrial development by declaring industrial areas as notified areas under the Municipalities Act; it supports creation of industrial townships while preserving governance coherence through Part IX/IXA framework when properly applied and legally challenged only on procedural grounds - [Saij Gram Panchayat VS State Of Gujarat - 1999 1 Supreme 248], [RAKAM SINGH VS STATE OF U. P. - 2015 0 Supreme(All) 429], [RAJNIKANT AMBALAL AMIN, ADULT, OCC AGRICULTURIST VS STATE - 2000 0 Supreme(Guj) 64]
Note: The citations above reference the provided sources in square brackets, as requested. Where a requested detail was not clearly represented in the given sources, it has been omitted.
1[ 55A. Notice of suit against Corporation
( 1) No person shall commence any suit against the Corporation or against any officer or servant of the Corporation or any person acting under the orders of the Corporation for anything done or purporting to have been done in pursuance of this Act, without giving to the Corporation, officer or servant or person, as the case may be, two months' previous notice in writing of the intended suit and of 'the cause thereof, not after six months from the date of the act complained of.
( 2) In the case of any such suit for damages if tender of sufficient amount shall have been made before the action was brought, the plaintiff shall not recover more than the amounts so tendered and shall pay all costs incurred by the defendant after such tender.]
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56.1 [Directors], officers and staff of Corporation to be public servants
All2 [Directors], officers and servants of theCorporation shall, when acting purporting to act in pursuance of any of the provisions of this Act be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (XLV of 1960).
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1. This word was-sub-stituted for the word "members", Guj. 11 of 1986, s.26 (2).
2. This word was sub-stituted for the word "members " by Guj. 11 of 1986, s.26 (1).
The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law.
If any doubt or difficulty arises in giving effect to the provisions of this Act the State Government may, by order, make provision or give such direction not inconsistent with the express provisions of this Act as may appear to it to be necessary or expedient for the removal of the doubt or difficulty, and the order of the State Government, in. such cases, shall be final.
In the Gujarat Legislative Assembly members (Removal of Disqualifications) Act, 1960(Guj. I of 1960), in the Schedule after entry 13 the following entry shall be inserted namely :--
"13A. The office of a member of the Gujarat Industrial Development Corporation nominated under clause (b), (c) or (d) of sub-section (1) of section 4 of the Gujarat Industrial Development Act, 1962 (Guj. XXIII of 1962), by reason only of his holding such office".
The Gujarat Industrial Development Ordinance, 1962(Guj. Ord. No. IV of 1962) is hereby repealed and the provisions of sections 7 and 25 of the Bombay General Clauses Act, 1904(Bom. I of 1904) shall apply to such repeal as if that Ordinance were an enactment.
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