The Gujarat Industrial Development Act, 1962

1.

1. (1) This Act may be called the Gujarat Industrial Development Act, 1962.
2. (2) It extends to the whole of the State of Gujarat.
3. (3) It shall come into force at once.

2. In this Act, unless the context otherwise requires,

1. (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;
2. (b) "building" means any structure or erection, or part of a structure or erection, which is intended to be used for residential, industrial, commercial or other purposes, whether in actual use or not;
3. (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;
4. (d) "Corporation" means the Gujarat Industrial Development Corporation established under section 3;
5. (e) "development" with its grammatical variations, means the carrying out of building, engineering, quarrying or other operations in, on, over or under land, or the making of any material change in any building or land, and includes re-development, but does not include mining operations; and "to develop" shall be construed accordingly;
6. (f) "engineering operations" include the formation or laying out of means of access to a road or the laying out of means of water supply;
7. (g) "industrial area" means any area declared to be an industrial area by the State Government by notification in the Official Gazette, which is to be developed and where industries are to be accommodated;
8. (h) "industrial estate" means any site selected by the State Government, where the Corporation builds factories and other buildings and makes them available for any industries or class of industries;
   • (i) "means of access" includes a road or any means of access, whether private or public, for vehicles or for pedestrians;
9. (j) "premises" means any land or building or part of a building and includes,
   • (i) the garden, grounds and out-houses, if any, appertaining to such building or part of a building; and
   • (ii) any fittings affixed to such building or part of a building for the more beneficial enjoyment thereof;
10. (k) "prescribed" means prescribed by rules made under this Act;
11. (l) "regulation" means regulation made under section 54;
12. (m) "relevant land acquisition law" means,
    • (i) in the Bombay area and the Kutch area of the State of Gujarat, the Land Acquisition Act, 1894 as in force in those areas;
    • (ii) in the Saurashtra area of the State of Gujarat, the Land Acquisition Act, 1894 as applied to that area; and
    • (iii) the Gujarat Land Acquisition (Industrial Areas) Act, 1961;
13. (n) the expression "land" and the expression "person interested" shall have the meanings respectively assigned to them in the relevant land acquisition law.

3.

1. (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 Gujarat, there shall be established by the State Government by notification in the Official Gazette, a Corporation by the name of the Gujarat Industrial Development Corporation.
2. (2) The Corporation 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.

4.

1. (1) The Corporation shall consist of the following seven members, that is to say,
   • (a) two official members nominated by the State Government, of whom one shall be the Financial Adviser to the Corporation;
   • (b) one member nominated by the State Electricity Board constituted under the Electricity (Supply) Act, 1948;
   • (c) one member nominated by the Gujarat Housing Board constituted under the Gujarat Housing Board Act, 1961;
   • (d) two members 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 interests of persons engaged or employed therein; and
   • (e) the Chief Executive Officer of the Corporation, ex-officio, who shall also be the Secretary of the Corporation.
2. (2) The State Government shall appoint one of the members of the Corporation to be Chairman of the Corporation and may appoint one of the other members as Vice-Chairman.

5. A person shall be disqualified for being nominated as a member of the Corporation, if he,

1. (a) is an employee of the Corporation, not being the Chief Executive Officer thereof, or
2. (b) is of unsound mind and stands so declared, by a competent court, or
3. (c) is an undischarged insolvent.

6.

1. (1) The Chairman, Vice-Chairman (if any) and members of the Corporation nominated under clauses
   • (a) to
   • (d) of sub-section
2. (1) of section 4, shall hold office for a period upto the end of two years from the date of their nomination as members.
3. (2) The members of the Corporation nominated under clause
   • (a) or
   • (e) of sub-section
4. (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 any member for extra or special services required to be rendered by him.
5. (3) The members of the Corporation nominated under clause (b),
   • (c) or
   • (d) of sub-section
6. (1) of section 4 shall be entitled to draw such honorarium or compensatory allowance for the purpose of meeting the personal expenditure in attending the meetings of the Corporation or of any Committee thereunder or appointed in connection with the work undertaken by or for the Corporation, as may be prescribed.
7. (4) Any person nominated as a member shall, unless disqualified, be eligible for renomination.

7.

1. (1) The Corporation shall meet at such times and places, and shall subject to the provisions of sub-section
2. (2) observe such rules of procedure in regard to the transactions of its business as may be provided by regulations.
3. (2) A member, 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 Corporation, shall at the earliest possible opportunity disclose the nature of his interest to the Corporation and shall not be present at any meeting of the Corporation when the contract, loan, arrangement or proposal is discussed, unless his presence is required by the other members for the purpose of eliciting information, and shall not vote thereon : Provided that, a member shall not be deemed to be concerned or interested as aforesaid by reason only of his being a share-holder of a company concerned in any such contract, loan, arrangement or proposal.

8.

1. (1) If a member --
   • (a) becomes subject to any of the disqualifications mentioned in section 5, or
   • (b) tenders his resignation in writing to, and such resignation is accepted by, the State Government, or
   • (c) is absent without the Corporation's permission from three consecutive meetings of the Corporation, or from all meetings of the Corporation for three consecutive months, or
   • (d) is convicted of an offence involving moral turpitude, he shall cease to be a member of the Corporation.
2. (2) The State Government may by order suspend from office for such period as it thinks fit, or remove from office any member of the Corporation, who in its opinion --
   • (a) has refused to act, or
   • (b) has become incapable of acting, or
   • (c) has so abused his position as member as to render his continuance on the Corporation detrimental to the interest thereof or of the general public, or
   • (d) is otherwise unfit to continue as a member.

9. Any vacancy of a member of the Corporation shall be filled as early as practicable, and in like manner as if the nomination were being made initially:

Proceedings presumed to be good and valid 11. No disqualification of, or defect in the appointment of any person acting as the Chairman or Vice-Chairman or a member of the Corporation, shall vitiate any act or proceeding of the Corporation, if such act or proceeding is otherwise in accordance with the provisions of this Act.

12.

1. (1) The State Government shall appoint a Chief Executive Officer, and a Cheif Accounts Officer of the Corporation.
2. (2) The Corporation may appoint such other officers and servants, subordinate to the officers mentioned sub-section (1), as it considers necessary for the efficient performance of its duties and functions.
3. (3) The conditions of appointment and service of the officers and servants and their scales of pay shall,
   • (a) as regards the Cheif Executive Officer and the Chief Accounts Officer, be such as may be prescribed, and
   • (b) as regards the other officers servants, be such as may be determined by regulations.

13. The functions of the Corporation shall be,

1. (i) generally to promote and assist in the rapid and orderly establishment, growth and development of industries in the State of Gujarat and
2. (ii) in particular and without prejudice to the generality of clause
3. (i) to,

1. (a) establish and manage industrial estates at place selected by the State Government ;
2. (b) develop industrial area selected by the State Government for the purpose and make them available for undertakings to establish themselves ;
3. (c) develop land on its own account or for the State Government for the purpose of facilitating the location of industries thereon ;
4. (d) assist financially by loans industries to move their factories into such estates or areas;
5. (e) undertake schemes or works, either jointly with other corporate bodies or institutions, or with Government or local authorities, or on an agency basis, in furtherance of the purposes for which the Corporation is established and all matters connected therewith.

14. Subject to the provisions of this Act the Corporation shall have power,

1. (a) to acquire and hold such property, both movable and immovable as the Corporation may deem necessary for the performance of any of its activities, and to lease, sell, exchange or otherwise transfer any property held by it on such conditions as may be deemed proper by the Corporation;
2. (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 duties and functions;
3. (c) to provide or cause to be provided amenities and common facilities in industrial estates and industrial areas and construct and maintain or cause to be maintained works and buildings therefor;
4. (d) to make available buildings on hire or sale to industrialists or persons intending to start industrial undertakings;
5. (e) to construct buildings for the housing of the employees of such industries; (f)
   • (i) to allot factory sheds or such buildings or parts of buildings, including residential tenements to suitable persons in the industrial estates established or the industrial areas developed by the Corporation;
   • (ii) to modify or rescind such allotments, including the right and power to evict the allottees concerned on breach of any of the terms or conditions of their allotment;
6. (g) to constitute committees from amongst its members to perform any of its functions ;
7. (h) to constitute advisory committees to advise the Corporation ;
   • (i) to engage suitable consultants or persons having special knowledge or skill to assist the Corporation in the performance of its functions ;
8. (j) subject to the previous permission of the State Government, to delegate any of its powers generally or specially to any of its committees or officers and to permit them to re-delegate specific powers to their subordinates ;
9. (k) to enter into and perform all such contracts as it may consider necessary or expedient for carrying out any of its functions; and
10. (l) to do such other things and perform such acts as it may think necessary or expedient for the proper conduct of its business and the carrying in to effect the purposes of this Act.

15. All permissions, orders, decisions, notices and other documents of the Corporation shall be authenticated by the signature of the Chief Executive Officer of the Corporation or any other Officer authorised by the Corporation in this behalf.

1. (1) The Corporation may, subject to such conditions as may be prescribed in this behalf, borrow money in the open market or otherwise with a view to providing itself with adequate resources.
2. (2) All moneys borrowed under sub-section
3. (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.

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. (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. (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. (3) None of the funds referred to in sub-section
4. (1) shall be utilised for any purpose other than that for which it was constituted, without the previous approval of the State Government.