.In any case in which an application for a State aid has been made under this Chapter, the applicant and, at any time during the continuance of the State Aid, the grantee shall be bound -
(a) to comply with any general or special order of the State Government relative to the inspection of the premises, buildings, machinery a stock-in-hand of the industry;
(b) to permit the inspection of all account relative to the industry;
(c) to furnish full returns of all products, manufactured or sold both as regards 10 description and quantity;
(d) to maintain such special accounts and to furnish such statement as the State Government may, from time to time, require; and
(e) to submit the accounts of the industry to such audit as the State Government may prescribe;
Provided that before requiring any grantee to comply with any of the requirements of this section, reasonable notice shall be given to him.
18. If at any time the outstanding balance of the loan granted under this Act is found to exceed the percentage fixed under section 15, the State Government may either recover much of such balance as is in excess of such percentage or accept such additional or collateral security as it may deem sufficient.
Power of State Government to so adjust security during currency of loans.
19. Notwithstanding anything contained in any other provisions of this Act, in the case of an industry to which State aid has been given in any form, if the grantee-
(a) fails to comply with any order under clause
(a) of section 17;
(b) does not permit or obstructs the inspection of the accounts of the industry;
(c) makes default in respect of any of the particulars specified in clauses (c), (d) and (e) of section 17;
(d) disposes of any profits in contravention of section 24;
(e) contravenes any rule framed under section 30;
or
(f) commits any breach of any condition laid down for the grant of the State aid; or If on inspection of the accounts, returns and statements or audit report of such industry, the State Government is of opinion that the State aid should be withdrawn, the State Government may, after considering any representation the grantee 11 may make within such time as the State Government may allow in this behalf, make an order directing-
(i) that the balance of any loan outstanding shall be recoverable forthwith;
(ii) that the guarantee given in pursuance of clause (b) of section 9 shall cease from the date of such order;
(iii) that the full value of the land, if any, given under clause (g) of section 9 shall be payable forthwith and that on failure to make such payment the State Government shall be entitled to re-enter and take possession of the land;
(iv) that the full value of any other State aid given under clause (g) or (h) of section 9 and enjoyed till the date of order shall be payable forthwith and the grant of such State aid beyond such date shall be discontinued,
(v) that an amount equal in value to the subsidy given under clause (i) of section 9 shall be repayable forthwith;
Provided that the State Government may, in lieu of any action as aforesaid, accept from such grantee such sum of money as it may deem fit.
20. (1) Every loan granted under this Chapter shall be made repayable by instalments within such period from the date of the actual advance of the loan, or when the loan is advanced instalments, from the date of actual payment of the last instalment, and shall bear interest at such rate and be payable in such manner as may be fixed by the order granting the loan.
(2) The period fixed as aforesaid shall not exceed twenty years unless the State Government, by general or special order, extends the same.
Repayment of loans.
12
(3) Notwithstanding anything contained in subsection (1), where any sum is received by the State Government from the Khadi and Village Industries Commission constituted under the Khadi and Village Industries Commission Act, 1956 (No, 61 of 1956), or any other body corporate for the purpose of granting interest free loan to small scale industries, any loan granted by the State Government out of such sum shall not bear any interest.
21. The provisions of sections 15, 16 and 18 in respect of loans shall, subject to any rules made under this Act, apply so far as may be to the guarantee of debentures issued to the public, a cash credit and an overdraft or fixed advance with a bank.
Guaranteeing of cash credits etc., with banks.
22. The condition of the guarantee of a minimum return on the whole or part of the capital of any industry shall be that an amount equal to the sum paid or part thereof as may be determined by the State Government shall be repaid to the State Government at the close of such term of years as may be fixed by the State Government in this behalf, if within that term the industry be shown to the satisfaction of the State Government to be paying interest or a dividend upon the capital invested in such industry in excess of such rate as the State Government may determine.
Guarantee of a minimum return on capital.
23. (1) No subsidy for the conduct or research shall exceed forty percent of the cost thereof and no subsidy for any other purpose shall exceed fifty per cent of the cost thereof.
(2) The condition of a grant of subsidy for the purchase of machinery shall ordinarily be that an amount equal in value thereto, as may be determined at the time of making the grant, shall be repaid to the State Government at the close of such term of years as may be fixed by the State Government in this behalf, if within that Subsidies.
13 term the industry be shown to the satisfaction of the State Government to be paying interest or a dividend upon the capital invested in such industry in excess of such rate as the State Government may determine.
(3) The condition of a grant of subsidy for the conduct of research or grant, on favourable terms, of land, raw material, fuel, water or any other property or right of the State Government or the grant, on favourable terms, of the services of experts the value thereof, as may be determined, at the time of making the grant or concession, shall be repaid to the State Government at the close of such term of years as may be fixed by the State Government in this behalf, if within that time the industry be shown to the satisfaction of the State Government to be paying interest or a dividend upon the capital invested in such industry in excess of such rate as the State Government may determine.
(4) Without prejudice to the provisions of subsection (3), the condition of a grant of a subsidy for the conduct of a research may further be that the State Government shall have a share not exceeding twenty-five percent in the patent rights arising out of such research.
(5) State aid granted to any industry shall be discontinued if the industry be shown to the satisfaction of the State Government to be paying interest or a dividend upon the capital invested in such industry in excess of such rate as the State Government may determine.
24. (1) Until the conditions on which the aid has been granted are fulfilled the profits of the industry in respect of which aid has been granted shall, if taken or distributed, be taken on distributed only after interest due on debentures and loans has been paid and a reasonable amount has been set aside for depreciation or obsolescence of plant and Disposal of profits of when conditions of State aid not fulfilled.
14 buildings and further reasonable amount has been carried to reserve fund to be utilized in such manner as the State Government may approve.
(2) No recipient of State aid shall pay any dividend or distribute or take any profit in excess of such percentage rate upon the amount of the capital of the industry as the State Government may, from time to time fix, until the conditions on which State aid has been granted are fulfilled;
Provided that the State Government may relax the provisions of this section in the case of any industry aided by the grant, on favourable terms, of land, raw material, fuel, water, or any other property or right of the State Government or the grant, free charge or an favourable terms of the service of experts or persons in the service of the State Government or by the payment of subsidy for the conduct of search.
25. Notwithstanding anything contained in this chapter, if in any case the amount or value of the State aid given there under amount to or exceeds five lakhs of rupees, or the face value of the shares held by the State exceeds 25 per cent of the authorised share capital, the State Government shall, and in any other case may, by the appointment of Government Directors or otherwise take power to ensure such control over the conduct of the industry as shall suffice in its opinion to safeguard its interest.
Government control of industry aided.
26. (1) If any Director, Managing Agent, Manager, secretary or other office of any company or other body corporate to which State aid has been given, commits a breach of any order passed or rule made under this Act subject to which such State aid has been given or of any provision of this Act or any condition notified under section 14, he shall be liable to a fine which may extend to one thousand rupees.
Penalty for breach 15
(2) No court shall take cognizance of any offence punishable under sub-section(1) except on a compliant in writing by the Director.
(3) Any contract made on behalf of a company or other body corporate in contravention of any condition subject to which State aid has been given to it shall as against such company or such body corporate be void;
but nothing herein contained shall prejudice the right of any person affected by such contract to claim by due process of law, any relief to which he may be entitled against the person entering into such contract.
27. (1) All moneys recoverable under this Chapter including any interest chargeable thereon and costs, if any, incurred, if not paid when they are due may be recovered by the Collector on a requisition from the Director, from the person aided and his surety, if any, as if they were arrears of land revenue.
(2) When any sum due as aforesaid is paid to the Director by the surety or is recovered from his or out of his property by the Director, the Director shall, on the application of the surety, so far as possible, recover the sum from the person aided and pay it to the surety.
Recovery of moneys due under this Chapter.
28. (1) Save as otherwise may be prescribed nothing in sub-section (2) of section 12 and sections 16 and 17 shall apply to small scale industries.
(2) The State Government may, by order, direct that all or any of the powers conferred on it by or under this Act or rules made there under shall, in relation to small scale industries, be exercisable by any officer or authority subordinate to it and when any powers are so delegated, they shall be exercised subject to such directions as the State Government may issue from time to time .
Special provision for small scale industries 16
(3) Not withstanding anything contained in any law for the time being in force, the powers referred to in subsection (2) may also be delegated by the State Government in the same manner and to the same extent as is specified therein to the M.P. Financial Corporation or a Co-operative Credit Society registered under any law relating to co-operative Societies in force in any region of the State and when any powers are so delegated, they shall be exercised subject to such directions as the State .Government may issue from time to time
CHAPTER IV SUPPLEMENTAL
29. (1) The decision of the State Government as to whether the conditions laid, down in or under any or the provisions of this Act have been satisfied shall be final, and no suit shall be brought in any Civil Court to set aside or modify any other made there under.
2) No prosecution, suit or other proceedings shall lie against any servant of the Government or other authority vested with powers under this Act for anything in goods faith done or intended to be done there under.
Finality of decision of State Government and bar of suits and proceedings in Civil and Criminal Courts.
30. (1) The State Government may, after previous publication, make rules consistent with this Act for carrying out of all or any of its purposes.
(2) In particular and without prejudice to the generality of the foregoing power, the State Government may make rules regulating or determining all or any of the following matters, namely :-
(a) the manner of election of the members of the Committee referred to in clause Power to make rules 17
(c) of sub-section (1) section 4, and the conduct of proceedings of the Committee including the manner in which notice of a meeting shall be given, the fixing of a quorum and the due record of proceedings;
(b) the fixing of the period of the guarantee of a minimum return under section 9;
(c) regulating the conditions subject to which company shall be formed under section 11;
(d) the manner of making application for State aid under sub- section (1) of section 12, and the manner of publishing the notice under sub-section
(3) of the said section;
(e) the manner of ascertaining the net value of the assets of an industry and the percentage of such value which may be granted as a loan under section 15;
(f) the nature of the security to be taken and the condition under which State aid may be given under section 16;
(g) the inspection under section 17 of the premises, building, machinery and stock-in-hand and the mode of keeping and auditing the account and of furnishing returns of any industry in respect of which State aid has been given;
(h) the guaranteeing by the State Government debentures issued to the public and of cash credits, overdrafts or fixed advances with banks under section 21 and the recognition of banks for this purpose;
(i) the fixing of the period for the repayment of loans under section 20 and the conditions and date of repayment of sums paid under the 18 guarantee of a minimum return under section 22 and of subsidies and grants under section 23;
(j) the application under section 24 of profits in the cases in which the conditions of which State aid has been given have not been fulfilled.
(k) the appointment and functions of Government directors under section 25 and the prescribing of other methods of control of industries to which State aid has been given;
(l) the conditions under which and the security on which loan may be granted or guarantees of debentures or of a cash credit, overdraft or fixed advance with a bank given to the industries specified in section 28.
(m) the recovery of any sum payable under this Act.
31. No State aid shall be given by the State Government to any industry save in accordance with the provisions of this Act.
Provided that nothing in this Act shall apply to the power of the state Government to - a) Start or conduct an industry for experimental purposes or with a view to stimulate industrial development or start or conduct an industry either as a State monopoly or a State managed unit;
b) assist an industry by agreement to purchase on business terms the whole or a portion of the product of the same;
c) assist an industry in connection with industrial education or training of apprentices;
d) assist an industry by giving free of charge or on favourable terms the service of Government experts or other persons in the service of the State Government to advise, No Sate aid to be given save in accordance with the provisions of Act.
19 start or supervise any industry for a period not exceeding one year
(e) acquire land for a company under the provisions of the Land Acquisition Act, 1894 (1 of 1894);
(g) assist a company formed for the purpose of supplying electricity, gas, water or any other service likely to prove useful to the general public.
(h) assist any small-scale industry started or proposed to be started for the benefit of bona fide craftsmen hereditary artisans, the educated unemployed or destitute and helpless persons.
31.A Notwithstanding anything contained in his Act, where contained in this act, where the State Government is of opinion that it is necessary or expedient in public interest so to do, it may, by order, specifying reasons thereof grant State Aid to any industry in such forms, and in such manner, to such extent and subject to such conditions as may be specified in the order".
Grant of State Aid in order cases
32. (1) The Central Provinces state Aid to Industries Act, 1933 (XII of 1933), and the Madhya Bharat state Aid to Industries Act, Samvat 2009 (Act No. 12 of 1952), are hereby repealed.
(2) Notwithstanding the repeal of the acts specified in sub- section (1), such repeal shall not affect-
(i) the previous operation of the acts so repealed or anything duly done or suffered there under; or
(ii) any right, privilege, obligation or liability acquired accrued or incurred under the Acts so repealed; or
(iii) any penalty, forfeiture or punishment incurred accrued of any offence committed against the Acts so repealed;
or 20
(iv) any investigation, legal proceeding or remedy in respect of any such right, privilege, obligation, liability, penalty, forfeiture or punishment as aforesaid;
and any such investigation, legal proceeding or remedy may be instituted, continued and enforced and any such penalty, forfeiture and punishment may be imposed as if this Act had not been passed.
(3) Subject to the provision of sub-section (23) anything done or any action taken (including any appointment or delegation made, notification, order, instruction or direction issued, rule, regulation, form, bye-law or scheme framed) under the Acts so repealed shall be deemed to have been done or taken under the corresponding provision of this Act and shall continue to be in force accordingly, unless and until superseded by anything done or any action taken under this Act.