Acquisition of unutilized surplus lands in industrial areas and allotment to other industries

(1) With a view to ascertaining whether any industrial area, industrial estate or flatted factories complex developed by the Corporation originally or any other Government agency in the past or non-conforming clusters having industrial concentration notified by the Government for redevelopment has been fully utilized for industrial purposes or not, the Government may direct the Corporation to submit to it a six-monthly report containing the following information in respect of such area, namely- (a) the total number of plots or flats and the area of each plot or flat in the industrial area, industrial estate or flatted factories complex, as the case may be; (b) the number of plots or flats allotted to the plot or flat holders and the number of plots or flats, as the case may be, still in possession of the Corporation; (c) the date on which possession of each plot or flat was delivered to the plot or flat holder, the period for which the plot or flat is allotted and the premium or rent paid or payable by the plot or flat holder; (d) unutilized buildable area in each plot, having due regard to the building regulations of the Corporation or the local authority concerned within whose jurisdiction the industrial area or industrial estate is situated; (e) how much unutilized area of each plot is capable of sub-division and whether the unutilized area can be utilized for accommodating another industry, after sub-division; (f) the period for which the area of any plot (whether whole or part) remained unutilized from the date of delivery of possession to the plot holder and the reasons therefor as stated by the plot holder. (2) Upon receipt of such directions, the Corporation shall issue notices to the plot holder, in the industrial area or industrial estate calling upon them to furnish to it the information in the prescribed form and when so called upon each plot holder shall be bound to furnish true and correct information required within one month from the date of receipt of such notice by him/her. (3) For the purpose of enabling the Corporation to determine whether there is any unutilized portion of any plot in the industrial area or estate and whether such portion is capable of sub-division so as to make it useful for accommodating any other industry after sub-division, it shall be lawful for any officer of the corporation either generally or specially authorized by it in this behalf, and for his servants and workmen, at all reasonable hours - (i) to enter upon and survey the plot; (ii) to set out the boundaries of the unutilized portion of the plots; and (iii) to do all other acts necessary for the purposes aforesaid. (4) if upon the report submitted by the Corporation, the Government is satisfied that any plot holder has not utilized the maximum buildable area of his plot for a period of seven years or the period fixed by the Government from time to time from the date on which possession of the plot was delivered to him by the Corporation and the unutilized portion is capable of sub-division so as to make it useful for accommodating any other industry, the Government may, notwithstanding anything contained in any contract or in any law for the time being in force before the expiry of such period from the date of receipt of such report as may be prescribed, issue to the plot holder and all other persons interested in the plot notices to show cause why such unutilized portion should not be acquired for the purpose of being (5) utilized for accommodating another industry. The Government shall also cause public notices to be given in the manner laid down in section 24. When any such notice is issued, the Government shall give a reasonable opportunity of being heard to the plot holder and other persons interested in the plot and it shall be open to the plot holder or any other persons interested in the plot to appear and object to such acquisition on the ground that the unutilized portion is required by the plot holder himself for the purpose of immediate expansion of his own industry and that he has already taken effective steps for utilizing such portion. Explanation.- For the purposes of this sub-section, the expression "effective steps" shall mean the following steps, namely :- (i) the plot holder has prepared the necessary project report in respect of the proposed expansion of his industry indicating the requirements of such expansion; and (ii) (a) the plot holder has obtained, whenever necessary, letter of intent or industrial licence or has got acknowledgement of Industrial Entrepreneurial Memorandum from the Government of India as required under the Industrial (Development and Regulation) Act, 1951 (LXV OF 1951); or (b) the plot holder has completed the negotiations with financial institutions for raising the required finance and sixty percent or more of the capital requirements for such expansion have been subscribed in the case of the company which has to go in for public issue where applicable; or (c) the plot holder has placed a firm order for purchase of at least fifty percent of the plant and machinery required for the purpose of expansion. (6) If after giving a reasonable opportunity of being heard, the Government is satisfied that the holder of the plot has failed to utilize or is not likely to utilize the unutilized portion for industrial purposes within a reasonable period, and such unutilized portion can be used for accommodating another industry, the Government may, notwithstanding anything contained in any contract or in any law for the time being in force for the purpose of enabling the Corporation to properly discharge its functions of promoting rapid growth and development of industries by accommodating another industry on such unutilized portion, acquire the land of such portion by publishing in the official Gazette, a notice specifying the purpose for which the land is required, and stating therein, that the Government had decided to acquire the land in pursuance of this section. When such a notice is published in the official Gazette, the land shall, on and from the date of such publication, vest absolutely in the Government, free from all encumbrances. (7) Where any land is vested in the Government under the last preceding sub-section, the Government may, by notice in writing, order any person who may be in possession of the land to surrender or deliver possession thereof to the Government or any person duly authorized by it in this behalf within thirty days of the service of the notice. (8) If any person refuses or fails to comply with an order made under the last preceding sub-section, the Government may take possession of the land, and may for that purpose use such force as may be necessary. (9) Where any land is acquired by the Government under this section, the Government shall pay for such acquisition an amount, which shall as far as possible, be determined in accordance with the provisions of the Land Acquisition Act, 1894 (1 of 1894): Provided that the amount to be awarded and paid shall not in the case of a premium lease exceeds the proportionate amount of premium paid by the plot holder or his predecessor-in-title claiming under the Corporation in respect of the land so acquired, with interest thereon at six percent per annum from the date of payment of the premium, and where the lease is a rental lease, the amount to be awarded shall not exceed an amount equal to five times the net average yearly proportionate rent payable by the plot holder to the Corporation in respect of the land so acquired.