(1) The Director on an application made to him and subject to such conditions, restrictions and limitations as may be laid down by the Government, grant aid to any industry for all or any of the purposes specified in section 5 in accordance with such rules as may be made in this behalf:
Provided that the loan that may be granted by the Director to an industry shall not exceed rupees ten thousand:
Provided further that the Government shall have power to control and revise any act or proceeding of the Director.
(2) The decision of the Government or the Director to, grant or not to grant aid in any case under sub-section (1) shall not be called in question in any Court of law.
(3) Nothing in sections 3, 11 and 14 shall apply to any application for the grant of aid under sub-section (1) or to any case where aid is granted under that sub-section.
7. Application for aid and procedure to be followed form in certain cases –
(1) Every application for aid of an amount exceeding ten thousand rupees shall be made to the Director in the prescribed form.
(2) As soon as may be after an application is made to him under subsection (1), the Director shall make such enquiry as may be prescribed in regard to such application and shall place the application together with this report of inquiry before the Board. The Board shall consider the same and make such recommendations to the Government as it considers necessary and the Government may, after consideration of the report of the Director and the recommendation of the Board, grant aid to any industry.
8. Security to be obtained for loan - (1) No loan shall be granted under this Act, where the amount of the loan exceeds rupees two hundred, without obtaining,-
(a) security of immovable property owned by the applicant or two sureties therefor or of the plant and machinery of the indentity or of the immovable property as well as the plant and machinery as aforesaid to the extent of the aid granted, seventy five per cent of the market value of the immovable property or the plant and machinery or the immovable property as well as the plant and machinery, as the case may be, being taken as the value thereof for the said purpose; or
(b) security by way of mortgage or floating charge upon the whole of the assets of the industry subject to any encumbrance existing at the time when the loan is granted and by such collateral security, if any, as may be required by the Government:
Provided that where it is not possible to give security of the immovable property as aforesaid the loan may be granted on the personal security of two sureties on production of their solvency certificates.
(2) The Government may, if considered necessary, bind the applicant to invest such portion of the loan as determined by them on permanent improvement to the industry.
(3) Notwithstanding anything in sub-section (1), the Government may, in the case of any industrial co-operative society, grant loan which may extend to an amount equivalent to ten times the paid-up share capital of such Industrial Co-operative Society subject to such condition as may be prescribed.
9. Prohibition of transfer of property without permission of the sanctioning authority - (1) Where, before or after the commencement of this Act, any property has been taken as security towards any aid granted under this Act, then, notwithstanding anything to the contrary in any other law for the time being in force, or in the deed of transfer or other document relating to the property, such property shall not be transferred without the written permission of the Government or Director as the case may be, (thereafter in this section and section 10 referred to as the “sanctioning authority”).
(2) The sanctioning authority may, in its discretion, by order, permit the transfer or any such property, after satisfying itself that the property remaining, after such transfer, as security for the aid, is sufficient to secure the proper repayment of the outstanding loan due to the Government under this Act together with interest chargeable thereon and the costs, if any, incurred and that the transfer is in furtherance of the purposes for which the aid was granted and the assets resulting from the transfer are to be wholly utilised in furtherance of the said purposes.
Explanation - When granting permission under this sub-section, the sanctioning authority may impose such condition as it may deem fit to ensure that the assets resulting from the transfer are wholly utilised in furtherance of the purpose for which the aid was granted, but a contravention of any such condition imposed on the transfer or shall not invalidate the transfer.
(3) Where any such property is transferred without such permission the transfer shall be null and void.
10. Courts not to attach, sell, etc., without to permission of the sanctioning authority - (1) No property referred to in section 9 shall be liable to be attached, sold or made subject to a charge by any court, whether in execution of a decree or order or otherwise, unless the person seeking such relief from the Court has obtained the written permission of the sanctioning authority to do so and files such permission in Court.
(2) When granting the permission the sanctioning authority may impose such condition as it may deem fit to secure the proper repayment of the loan together with any interest chargeable thereon and costs, if any, incurred.
(3) Where any such property is attached or sold or a charge is created thereon by any Court without the permission of the sanctioning authority having been obtained and filed as aforesaid or where any condition imposed by the sanctioning authority when granting such permission is contravened, the attachment, sale or charge, as the case may be, shall be null and void.
11. Inspection and returns - Where a loan has been applied for under this Act, the applicant, and at any time during the currency of a loan that has been granted under it, the grantee, shall be bound,-
(a) to comply with any general or special order of the Government, relating to the inspection of the premises, building or plant or stock on hand of the industry;
(b) to submit the accounts of the industry to such audit as may be prescribed.
12. Director to exercise powers of Government under sections 8 and 11 in certain cases - The power exercisable by the Government under sub-section
(2) of section 8 and under section 11, may also be exercised by the Director in cases where aid is granted by him under section 6.
13. Control of business by Government is certain Cases - Where in any case, the amount of the loan given under this Act amounts to or exceeds one lakh of rupees, the Government shall, and in any other case may, by the appointment of Directors on their behalf or otherwise, take steps, to ensure such control and supervision over the conduct of the industry as shall suffice in their opinion to safeguard their interests, and to satisfy themselves that the loan is utilised for the purpose and the object for which it was granted.
14. Repayment of loans - Every loan granted under this Act shall bear interest from such date and at such rate as the Government may, in each case or class of cases, determine and shall be payable in installments within such period from the date of the actual advance of the loan, or where the loan is advanced in installments, from the date of payment of the last installment, as may be fixed by the order granting the loan:
Provided that the period so fixed shall not exceed ten years unless the Government, by general or special order, extend the loan period.
15. Training of Apprentices by recipient of aid - Every recipient of aid under this Act shall make such provision for the training of apprentices as the Government may, from time to time, prescribe.
16. Disposal of profits when condition of aid is not fulfilled - No recipient of aid to any industry, other than a cottage industry, shall pay any dividend or distribute or take any profits in excess of such rate of percentage upon the amount of the capital of the industry as the Government may, from time to time, fix until the conditions on which the aid has been granted are fulfilled.
The balance of the profits, after proper amounts have been set aside for depreciation or obsolescence of plant, machinery or buildings and for payment of interest on debentures or loans, shall be carried to a reserve fund to be utilised in such manner as the Government may approve.