Vidhi Codex

section 16

Preparation and sanction of Schemes

The Maharashtra State Enterprises (Restructuring and other Special Provisions) Act, 2000
General200018 sections
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Statutory text
  1. (1) Where report is made under sub-section
  2. (2) of section 15 in relation to any Referred Enterprise and such Enterprise fails to revive itself as per the guidelines, within the time frame laid down by the Board, the Board shall, on such terms and conditions as may be determined by the Board, direct the Assisting Agency or any other agency appointed by the Board in this behalf to prepare, as expeditiously as possible and ordinarily within a period of ninety days from the date of such order, a scheme with respect to such Referred Enterprise providing for any one or more of the following measures, namely:—
    • (a) the financial reconstruction of the Referred Enterprise without Government giving financial assistance in any form whatsoever ;
    • (b) the disinvestment of a part or whole of the Government share-holding or stake in any form in the Referred Enterprise to any person, private or public sector organization ;
    • (c) the amalgamation of the Referred Enterprise with any other entity, hereafter referred to as "transferee entity" ;
    • (d) the closure of operations or activities of a part or whole of the Referred Enterprise ;
    • (e) the sale of a part or whole of assets of the Referred Enterprise ; and
    • (f) such other preventive, ameliorative, incidental, consequential, supplemental and remedial measures as may be appropriate : Provided that, the rationalisation, if any, of the managerial, personnel, supervisory staff and workmen shall be done in accordance with law.
  3. (2) The Scheme prepared by the Assisting Agency shall be examined by the Board and a copy of the draft scheme with modification, if any, made by the board shall be sent to the Government, the Referred Enterprise, the Assisting Agency, the recognized employees unions or officers associations and, in the case of amalgamation, also to the transferee entity concerned. (3)
    • (a) The Board may consider the suggestions, if any, received from the persons to whom or entities to which, a copy of the draft scheme has been sent under sub-section
  4. (2) and make such modifications, if any, in the draft scheme as found suitable and necessary and shall then finalise the scheme.
    • (b) The Board shall thereafter forward such final scheme approved by it to the Government and the Referred Enterprise concerned. It shall thereupon be incumbent for the State Government to direct the Referred Enterprise concerned to take all necessary steps for implementation of the said scheme, subject to and in consonance with all the relevant laws for the time being in force.
  5. (4) The Board may, on behalf

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