Chapter VI ACQUISITION AND DISPOSAL OF LAND

1. (1) Whenever any land is required by the Corporation for any purpose in furtherance of the objects of this 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 land Acquisition Act, 1894 for acquiring the same on behalf of the Corporation as if such lands were needed for a public purpose within the meaning of that Act.
2. (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.

1. (1) For the furtherance of the objects of this Act, the State Government may, upon such conditions as may be agreed upon between the Government and the Corporation, place at the disposal of the Corporation any land vested in the State Government.
2. (2) After any such land had 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 under this Act and the directions given by the State Government in that behalf.

1. (1) Subject to any directions given by the State Government the corporation may dispose of:-
   • (a) any land acquired by the State Government and transferred to it, without undertaking or carrying out any development thereon; or
   • (b) any such land after undertaking or carrying out such development as it thinks fit, to such person in such manner and subject to such terms and conditions, as it considers expedient for securing the purposes of this Act.
2. (2) The powers of the Corporation with respect to the disposal of land under sub-section
3. (1) shall be so exercised, as to secure, so far as practicable, that—
   • (a) where the Corporation proposes to dispose of by sale any such land which is surplus to its requirement, the corporation shall offer the land in the first instance to the persons from whom it was acquired, if they desire to purchase it, subject to such requirements as to its development and use as the Corporation may think fit.
   • (b) persons who are residing or carrying on business or other activities on any such land shall, if they desire to obtain accommodation on land belonging to the Corporation and are willing to comply with any requirements of the Corporation as to its development and use have an opportunity to obtain thereon accommodation suitable to their reasonable requirements on terms settled with due regard to the price at which any such land has been acquired from them.
4. (3) Nothing in this Act shall be construed as enabling the Corporation to dispose of land by way of gift, but subject as aforesaid, reference in this Act, to the disposal of land, shall be construed as reference to the disposal thereof in any manner whether by way of sale, mortgage, exchange or lease or by the creation of any easement, right or privilege or otherwise.

1. (1) With a view to ascertaining whether any plot allotted in an industrial area developed by the Corporation has been utilised for industrial purposes or not, the Board shall carry out six-monthly review as to how much unutilised area of each plot is capable of subdivision and whether the unutilised area can be utilised for any other purpose under this Act after subdivision, and shall issue notice to the plot holders in the industrial area calling upon them to furnish to it relevant information in the prescribed form and when so called upon each plot holders shall be bound to furnish true and correct information required within one month from the date of receipt of such notice by him.
2. (2) For the purpose of enabling the Board to determine whether there is any unutilised portion of any plot in the industrial area and whether such portion is capable of subdivision so as to make it useful for any other purpose under this Act after subdivision, it shall be lawful for any officer of the Corporation, either generally or specially authorised by the Board 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 utilised portion of the plots; and
   • (iii) to do all other acts necessary for the purposes aforesaid.
3. (3) If the Board is satisfied that any plot holder has not utilised the maximum part of his plot suitable for construction or buildings for a period of three years or more from the date on which possession of the plot was delivered to him by the Board and the utilised portion is capable of subdivision so as to make it useful for any other purpose under this Act, the Board may, notwithstanding anything contained in any contract or in any law for the time being in force, issue to the plot holder and all other persons interested in the plot notice to show cause why such unutilised portion should not be acquired for the purpose of being utilised for any other purpose under this Act. The Board shall also cause public notice to be given in the manner laid down in section 46.
4. (4) When any such notice is issued, the Board 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 person interested in the plot, to appear and object to such resumption on the ground that the unutilised 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 utilising such portion.
5. (5) If after giving a reasonable opportunity of being heard, the Board is satisfied that the holder of the plot has failed to utilise or is not likely to utilise the unutilised portion for industrial purposes within a reasonable period, and such unutilised portion can be used for any other purpose under this Act, the Board 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 or for promoting rapid growth and development of industries under this Act, on such unutilised portion, resume the unutilised portion of the land by giving a notice to the holder of the plot. On and from the date of such notice the unutilised portion of land specified in the notice shall vest absolutely in the Corporation, free from all encumbrances.
6. (6) Where any land is vested in the Corporation under the last preceding sub-section the Board may, by notice in writing, order any person who may be in possession of the land to surrender or deliver possession thereof to the Board or any person duly authorised by it in this behalf within thirty days of the service of the notice.
7. (7) If any person refuses or fails to comply with an order made under the last preceding sub-section, the Board may take possession of the land, and may for the purpose use such force as may be necessary.
8. (8) Where any land is resumed by the Board under this section the Corporation shall pay on such resumption an amount not exceeding 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 resumed, with interest thereon at six per cent per annum from the date of payment of the premium, and where the land is held on lease the amount to be awarded shall not exceed the amount equal to three times the net average yearly proportionate rent payable by the plot holder to the Corporation in respect of the land so resumed.

1. (1) If the Corporation, after holding a local enquiry, or upon 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 serve upon the owner a notice requiring him to provide the amenity or carry out the development within a reasonable time to be specified in the notice.
2. (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 may itself provide the amenity or carry out the development or have it provided or carried out through such agency as it deems fit: Provided that, before taking any action under this sub-section, the Corporation shall afford reasonable opportunity to the owner of the land to show cause as to why such action should not be taken.
3. (3) All expenses incurred by the Corporation or the agency employed by it in providing the amenity or carrying out the development together with interest, at such rate as the State Government may by order, fix from the date on which a demand for the expenses is made until payment shall be recoverable by the Corporation from the owner.

1. (1) Where the erection of any building in an industrial estate 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 by it in this behalf may, in addition to any prosecution that may be instituted under this Act, make an order requiring that such erection be demolished by the owner thereof within such time 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 expenses of such demolition shall be recoverable by the Corporation from the owner: Provided that, no such order shall be made unless the owner has been given a reasonable opportunity to show cause why the order should not be made.
2. (2) Any person, aggrieved by an order made under sub-section
3. (1) may prefer an appeal against that order within fifteen days from the date thereof to the Executive Committee of the Corporation. Such Committee may after hearing the parties to the appeal either allow or dismiss the appeal or reverse or vary any part of the order.
4. (3) The decision of the Committee on the appeal and subject only to such decision, the order made by the officer under sub-section
5. (1) shall be final.

1. (1) Where the erection of any building in an industrial estate or industrial area has been commenced, or is being carried on or any existing building is altered, in con- trayention 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 in 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. (2) Where such building operations are not discontinued in pursuance of the requi- sition under sub-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 assistants and workmen from the place of the building within such time as may be specified in the requisition and such police officer shall comply with the requisition accordingly.
3. (3) After the requisition under sub-section
4. (2) has been complied with, the Cor- poration or the officer empowered as aforesaid may depute by a written order a police officer or an officer or employee of the Corporation to watch the place in order to ensure that the erection of the building is not continued.
5. (4) Any person failing to comply with an order made under subsection
6. (1) shall on conviction, be punishable with fine which may extend to two hundred rupees for every day during which such non-compliance continues after the service of the order.
7. (5) No compensation shall be claimable by any person for any damage or loss which he may sustain in consequence of any order made under this section.

1. (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 indu- strial estate or industrial area contrary to the terms under which he holds such building or land under this Act, shall, on conviction, be punishable 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 two hundred rupees for every day during which such offence con- tinues after conviction for the first commission of the offence.
2. (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 convic- tion, be punishable with fine which may extend to five thousand rupees.

1. (1) Within any area taken up for development under paragraph
   • (b) of clause
     • (ii) of section 14, and for the purposes of
   • (a) carrying gas, water or electricity from a source of supply to, or
   • (b) constructing any sewer or drains necessary for carrying off the workings and waste liquids of an industrial process through any intervening area the Board or any person empowered in this behalf by the State Government by notification, (hereinafter in this section referred to as "the authorised person") may 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 such areas.
2. (2) The Board or the authorised person may at any time enter upon any land in any such area and in such event, the provisions of section 40 shall, mutatis mutandis, apply.
3. (3) While exercising the power conferred by sub-section (1), the Board or the authorised person shall cause as little damage as possible to property and compensation for any damage sustained by them in consequence of the exercise of such power as aforesaid shall be paid to all persons interested by the Corporation or in the case of the authorised person, by the State Government.
4. (4) Nothing herein shall authorise or empower the Corporation or the authorised person to lay down or place any pipe or other works into, through or against any building or in any land not dedicated to public use without the consent of the owners and occupiers thereof, except that the Corporation or such person may at any time enter upon and lay or place any new pipe in the place of an existing pipe in any land wherein any pipe has been already lawfully laid down or placed in pursuance of this Act, and may repair or alter any pipe so laid down : Provided that, nothing in the aforesaid provision shall be construed to mean that the Corporation or other person is forbidden from having the said land acquired at any time by the State Government in the normal course.

Any Officer of the State Government, any Director of the Board, and any person either generally or specially authorised by the Board in this behalf, may enter into or upon any land or building with or without assistance or workmen for the purpose of—

1. (a) making any inspection, survey, measurement, valuation or enquiry or taking levels of such land or building ;
2. (b) examining works under construction and ascertaining the course of sewers and drains;
3. (c) digging or boring into the sub-soil;
4. (d) setting out boundaries and intended lines of work;
5. (e) marking such levels, boundaries and lines by placing marks and cutting trenches;
6. (f) doing any other thing necessary for the efficient administration of this Act: Provided that—
   • (i) no such entry shall be made except between the hours of sunrise and sunset and without giving reasonable notice to the occupier, or if there be no occupier, to the owner of the land or building ;
   • (ii) sufficient opportunity shall in every instance be given to enable women, if any, to withdraw from such land or building ; and
   • (iii) due regard shall always be had, so far as may be compatible with the exigencies of the purpose for which the entry is made, to the social and religious usages of the occupants of the land or building entered.

The State Government may, by notification, nominate any officer of the Corporation to be a controller 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 established or to be established in industrial estates or industrial areas entrusted to or developed by the Corporation and no such nomination shall be called into question merely on the ground that such officer is not an officer of the State Government.

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 Board or otherwise, that the setting up of an industrial undertaking, whether 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 amenity on such conditions as the State Government may consider fit, and thereupon the amenity shall be granted: Provided that the charge to be paid for granting or continuing such amenity to the local authority concerned shall not be less than the cost incurred by the local authority or licensee concerned for providing such amenity:

Restriction of lease permission in adjoining areas If any person or Company applies to the Collector or any other competent authority for lease of Government land or for permission to convert agricultural land into non-agricultural use for setting up of an industrial undertaking or for locating a brick kiln, quarry or for any other use which may be detrimental to the orderly growth of an industrial area or industrial estate and if such Government land or agricultural land is situated within a radius of five kilometres of the outer boundary of the said industrial area or estate, the Collector or the competent authority shall not grant such lease or permission without prior consultation with the Board: Provided that where the Collector or the competent authority overrides the objection of the Board, he will give reasons therefore in writing to the Board; whereupon the Board may appeal to the prescribed authority: Provided further that no action shall be taken on the order of the Collector or the competent authority till such appeal is disposed of: Provided also that the provisions of this section shall not apply to any village industry, cottage industry or tiny sector industry. Explanation—For the purpose of this section—

1. (i) the expressions "village industry" and "cottage industry" shall have the same meaning as assigned to them under the Orissa State-aid to Industries Act, 1978;
2. (ii) "tiny sector industry" shall mean such industry as may be declared by the State Government, from time to time, to be a tiny sector industry.

1. (1) There shall be an Executive committee which shall consist of—
   • (a) the Chairman of the Board of Directors;
   • (b) the Managing Director of the Corporation; and
   • (c) three other members elected by the Board from among the Directors of whom at least one shall be a Director nominated under Clause
     • (xii) of Sub-section
2. (2) of Section 4.
3. (2) The Chairman of the Board shall preside over the meetings of the Committee and the business of the Committee shall be conducted in such manner as may be provided in the Regulations made under this Act.
4. (3) The committee shall render all such assistance to the Board as it may require from time to time, and shall perform such other functions as are assigned to it by or under this Act.

1. (1) All notices, orders and other documents required by this Act or any rules or regulation made thereunder 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, if 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 on, and is either—
     • (i) sent by registered post;
     • (ii) left at the said place of business;
   • (c) where the person to be served is a statutory public body or a corporation or society or other body, if the document is addressed to the secretary, treasurer or other chief executive officer of that body, corporation or society at its principal office, and is either—
     • (i) sent by registered post; or
     • (ii) left at that office;
   • (d) in any other case, if the document is addressed to the person to be served and—
     • (i) is given or tendered to him; or
     • (ii) if such person cannot be found, is affixed on some conspicuous part of his last known place of residence or business or is given or tendered to some adult member of his family or is affixed on some conspicuous part of the land or building to which it relates; or
   • (e) is sent by registered post to that person.
2. (2) Any document which is required or authorised to be served on the owner or occupier of any land or building whose name is not known, may be addressed to "the owner" or "the occupier," as the case may be, of that land or building (naming that land or building) without further name or description, and shall be deemed to be duly served—
   • (a) if the document so addressed is sent or delivered in accordance with Clause
   • (d) of sub-section (1); or
   • (b) if the document so addressed or a copy thereof so addressed, is given or tendered to some person on the land or building who appears to be occupying the same or, where there is no such person on the land or building to whom it can be delivered, is affixed to some conspicuous part of the land or building.
3. (3) Where a document is served on the firm in accordance with this section the document shall be deemed to be served on each partner.
4. (4) For the purpose of enabling any document to be served on the owner of any property, the occupier, if any of the property may be required by notice in writing by the State Government or the Corporation, as the case may be, to state the name and address of the owner thereof.

Every public notice given under this Act, or any rule or regulation made thereunder shall be in writing over the signature of the officer concerned and shall be duly 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 those means, and by any other means that the officer may think fit.

Where any notice, order or other document issued or made under this Act or any rule or regulation made thereunder, 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. (1) The Board shall furnish to the State Government returns, statistics, reports, accounts and other information with such 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. (2) The Board shall, in addition to the audit report referred to in Section 27, furnish to the State Government an annual report of its working as soon as may be after the end of each financial year in such form and with such details 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.

The State Government may by notification and subject to such terms and conditions as may be specified therein, place any industrial area or industrial estate established prior to the date of commencement of this Act under the management and control of the Corporation, and thereupon, the provisions of this Act shall apply to such industrial area and industrial estate, as if, the industrial area were declared and the industrial estate were established under this Act.

Where the State Government is satisfied that with respect to any particular industrial estate or industrial area, or any part thereof, the purpose for which the Corporation was established under this Act has been substantially achieved so as to render the continued existence of such estate or area or part thereof under the Corporation unnecessary, the State Government may, by notification, declare that such industrial estate or industrial area or part thereof has been removed from the jurisdiction of the Corporation.

Default in performance of duty

1. (1) If the State Government is satisfied that the Board has made a default in performing of 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 Board accordingly.
2. (2) If in the opinion of the State Government the Board 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 to supersede and reconstitute the Board.
3. (3) After the supersession of the Board and until it is constituted in the manner, laid down in Chapter II, the powers, duties and functions of the Corporation under this Act shall be carried on by the State Government or by such officer or officers or body of officers as the State Government may appoint for this purpose from time to time.
4. (4) All property vested in the Corporation shall, during the period of supersession, vest in the State Government.

1. (1) Where the State Government is satisfied that the purposes for which the Corporation was established under this Act have been substantially achieved so as to render the continued existence of the Corporation in the opinion of the State Government unnecessary, it may, by notification, declare that the Corporation shall be dissolved with effect from such day as may be specified in the notification, and the Corporation shall be deemed to be dissolved accordingly.
2. (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.
   • (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 any property belonging to, 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 Board or some persons authorised by the Board by general or special order in this behalf.

1. (1) The Board or any person authorised by the Board by general or special order in this behalf may, either before or after the institution of the proceedings, compound any offence punishable by or under this Act.
2. (2) Where an offence has been compounded, the offender, if in custody, shall be discharged and no further proceedings shall be taken against him in respect of the offence so compounded.

1. (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, 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.

Penalty for obstruction — Any person who obstructs the entry of a person authorised under section 34 or section 40 to enter into or upon any land or building or molests such person after such entry or obstructs the lawful exercise by him of any power conferred by or under this Act shall, on conviction, be punishable with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.

Recovery of dues

Power to make rules

1. (1) The State Government may, by notification, make rules to carry out the purposes of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
   • (a) the allowances and fees to be paid to the nominated Directors under sub-section
3. (3) of section 6;
   • (b) the conditions of appointment and service of the Managing Director under clause
   • (a) of sub-section
4. (3) of section 12;
   • (c) the rates at which, and the persons on whom, development cost, fees or service charges may be levied under section 17;
   • (d) the form of the annual financial statement and the programme of work under section 26;
   • (e) the form of, and the manner of, maintaining the accounts of the Corporation under section 27;
   • (f) any other matter which is to be or may be prescribed under this Act.
5. (3) All rules made under this Act shall, as soon as may be after they are made, be laid before the State Legislature for a total period of fourteen days which may be comprised in one or more sessions and if during the said period the State Legislature makes modifications, if any, therein, the rules shall thereafter have effect only in such modified form, so, however, that such modification shall be without prejudice to the validity of anything previously done under the rules.

1. (1) The Corporation may, with the previous approval of the State Government, make regulations consistent with this Act, and the Rules made thereunder, to carry out the purpose of this Act, and without prejudice to the generality of this power, such regulations may provide for—
   • (a) the time and place of meetings of the Board and the procedure to be followed in regard to the transaction of business at such meetings;
   • (b) the conditions of appointment and service and the scales of pay of Officers and servants of the Corporation, other than the Managing Director;
   • (c) deployment of funds of the Corporation and the officers of the Corporation who may operate its accounts;
   • (d) the terms under which the Corporation may dispose of lands, buildings and amenities;
   • (e) the additional terms and conditions subject to which lands and buildings in industrial estates and industrial areas may be held or used;
   • (f) the conduct of business of the Executive Committee;
   • (g) any other matter which is to be or may be provided by regulations.
2. (2) All regulations made under this Act shall, as soon as may be, after they are made, be laid before the State Legislature for a total period of fourteen days which may be comprised in one or more sessions and if during the said period the State Legislature makes modifications, if any, therein, the regulations shall thereafter have effect only in such modified form, so, however that such modification shall be without prejudice to the validity of anything previously done under the regulations.

No suit, prosecution or other legal proceeding 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.

The Directors of the Board and the, officers and servants of the Corporation shall, when acting or 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.

The provision 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 expedient for the removal of the doubt or difficulty and the order of the State Government, in such cases, shall be final: Provided that, no such order shall be made or direction shall be given after the expiration of a period of two years from the date of commencement of this Act.