Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

CONTENTS
PREAMBLE

SECTIONS

CHAPTER I

PRELIMINARY

1. Short title, extent and commencement.

2. Definitions.

CHAPTER II

ESTABLISHMENT AND CONSTITUTION OF THE CORPORATION

3. Establishment and incorporation.

4. Constitution.
5. Disqualification for directorship.
6. Term of office and conditions of service of directors.
7. Meetings of Corporation.
8. Cessation of directorship
9. Vacancies how to be filled.
10. Temporary absence of directors.
11. Proceedings presumed to be good and valid.
12. Officers and servants of Corporation.

CHAPTER III

FUNCTIONS AND POWERS OF THE CORPORATION

13. Functions
14. General Powers of Corporation.
15. Authentication of orders and documents of Corporation.
16. Notification of any industrial area as notified area under Gujarat Municipalities
Act.
16.A. Director of Notified Areas.
17. Directions by the State Government.

CHAPTER IV.

FINANCE, ACCOUNTS AND AUDIT

18. Application of Corporation's assets.

19. Corporation's Fund.
20. Grants, subventions, loans and advances to Corporation.
21. Power of Corporation to borrow.

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

SECTIONS.

22. Deposits.
23. Reserve and other funds.
24. Expenditure from funds.
25. Budget and programme of work.
26. Accounts and audit.
27 . Concurrent and special audit of accounts.

CHAPTER V

[REPEALED] NON-APPLICATION OF
RENT CONTROL ACT TO CORPORATION PREMISES.

28. Definitions.
28A. [Repealed.]
28B. [Repealed.]
28C. [Repealed.)
28D. [Repealed.]
29. Non-application of Rent .Control Act to Corporation premises.
30. Compulsory acquisition of Land for Corporation.

CHAPTER VI

ACQUISITION AND DISPOSAL OF LAND

31. Compulsory acquisition of land for Corporation.

32. Amendment of section 17 of Land Acquisition Act for purposes of Act.
33. Government lands. -

CHAPTER VI A.

LEVY OF BETTERMENT CHARGE.

32A. Notice to owners, etc., in respect of levy of betterment charge.

32B. Inquiry and order regarding betterment charge.
32C. Quantum of betterment charge.
32D. Reference against order of the authorised officer,
32E. Finality of order fixing betterment charges and of decision on reference.
32F. Betterment charge to be first charge on land next to land revenue.
32G. Payment of betterment charge.

CHAPTER VII

SUPPLEMENTARY AND, MISCELLANEOUS PROVISIONS

33. Powers of Corporation: in case of 'certain defaults by owner of land in

industrial area.
34. Order of demolition of' building.

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

SECTIONS.

35. Power to stop building operations,

36. Penalty for construction or use of land and buildings contrary to terms of holding.
37. Power to lay pipe lines etc.
38. Power of entry.
39. Officers of the Corporation may be vested with other powers.
40. Overriding powers of Government to issue directions to local authorities.
40A. Liability of lessee to pay taxes, etc.
41. Recovery of sums due to Corporation as arrears of land revenue.
42. Service, of notices etc.
43. Public notices how to be made known.
44. Notices etc. to fix reasonable time.
44A. Quinquennial valuation of assets and liabilities Of the Corporation.
45. Furnishing of returns etc.
46. Withdrawal of area or estate or part thereof.
47. Default in performance of duty.
48. Dissolution of Corporation.
49. Authority for prosecution.
50. Compositions of offences by Corporation.
51. Offences by Companies.
52. Penalty for obstruction.
52A. Penalty for obstructing etc. persons performing duty under contract.
52B. Penalty for removing marks etc.
52C. Penalty for obstructing exercise of powers under Chapter V.
53. Power to make rules.
54. Power to make regulations.
55. Protection of action taken in good faith.
55A. Notice of suit against Corporation.
56. Directors, officers and staff of Corporation to be public servants.
57. Effect of provisions inconsistent with, other laws.
58. Power to remove doubts and difficulties.
59. Amendment of Schedule to Guj.1 of' 1960.
60. Repeal of Guj. Ord. No. IV of 1962.

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

GUJARAT ACT [Link] OF 19621

[THE GUJARAT INDUSTRIAL DEVELOPMENT ACT, 1962]

[9th August, 1962]

(First published, after having received the assent of the President in the "Gujarat"
Government Gazette" on the 9th August, 1962).

Amended by Guj. 14 of 1964.

Amended by Guj. 14 of 1968.
Amended by Guj. 11 of 1986.
Amended by Guj. 3 of 1994.
Amended by Guj. 5 of 2007.
Amended by Guj. 16 of 2007.
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[An Act to make special provision for securing the orderly establishment and organisation of industries in
industrial areas and industrial estates in the state of Gujarat and for the purpose of establishing
commercial centres in Connection with the establishment and organisation of such industries] and for that
purpose to establish an Industrial Development Corporation, and for purposes connected with the matters
aforesaid.

It is hereby enacted in the Thirteenth Year of the Republic of India, as follows:-

CHAPTER I

PRELIMINARY

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

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

(a) "amenity" includes road, supply of water or electricity, street lighting, drainage, sewerage, Definitions
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;

(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;

(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;

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[(ca) "commercial centre" in relation to any industrial area or industrial estate means any site selected by
the State Government where the Corporation builds shops and other buildings and makes them available for any
commercial activity,]

(d) "Corporation" means the Gujarat Industrial Development Corporation established under Section 3;

(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 constructed
accordingly;

(f) "engineering operations" include the formation of laying out of means of access to a road or the laying
out of means of access to a road or the laying out of water supply;

(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;

____________________________________________________________________________________

1. For Statement of Objects and Reasons See Gujarat Government Gazette,1962-. Part-V Pages 47, 48.
2. These words were substituted for the words An Act" to make special provision for securing the orderly establishment of industries in
Industrial areas and industrial estates in the State of Gujarat and to assist generally in the organisation thereof by Guj. 11 of 1986. S.2.
3. Clause (ca) was inserted by Guj.11 of 1986, S.3.

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(h) "Industrial Estate" means any site selected by the State Government, where the Corporation builds factories
and other buildings and makes them available for industries or class of industries;

(i) "means of access" includes a road for any means of access, whether private or public, for vehicles or
for pedestrians;

(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;

(k) "prescribed" means prescribed by rules, made under this Act;

(l) "regulation" means regulation made under section 54;

(m) "relevant land acquisition law" means-

(i) in the Bombay area of the Kutch area of the State of Gujarat, the Land Acquisition Act 1894 as in I of 1894.
force in those areas;

(ii) in the Saurashtra area of the State of Gujarat, the Land Acquisition Act, 1894 as applied to that I of 1894
area; and

(iii) the Gujarat Land Acquisition (Industrial Areas) Act 1961; Guj. XLVI of
1961

(n) the expression "land" and the expression "person interested" shall have the meanings respectively
assigned to them in the relevant land acquisition law.

CHAPTER II

ESTABLISHMENT AND CONSTITUTION OF THE CORPORATION

Establishment 3. (1) For the purpose of securing and assisting in the rapid and orderly establishment, and organisation
and of industries in industrial areas and industrial estates in the State of Gujarat 1[and for the purpose of establishing
incorporation.
commercial centres in connection with the establishment and organisation of such industries], 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) 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 purpose of this Act.

Constitution 4. (1) The Corporation shall consist of the following 2[twelve] 3[Directors], that is to say

(a) 4[Three] official 3[Directors], nominated by the State Government, of whom one shall be the
Financial Adviser to the Corporation;

(b) one 5[Director] nominated by the State Electricity Board Constituted under the Electricity (Supply) LVI of 1948.
Act, 1948;

(c) one 5[Director] nominated by the Gujarat Housing Board constituted under the Gujarat Housing Guj. XXV-
Board Act, 1961; III of 1961.

(d) 6[six] 3[Directors] 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 interest of persons engaged or employed therein ; and

_________________________________________________________________________
1. These words were inserted by Guj. 11 .of 1986, s. 4
2. This word. was substituted for the word "ten" by 'Guj. 14 of 1968, s .2 (i). Earlier the word, “seven” was substituted by the
word, “ten” by Guj.14 of 1964 S.2(i).
3. This word was substituted for the word "members" by Guj, 11. of 1986, s. S(1)
4. This word was substituted for the word "two" by Guj. 14 of 1964 S 2. (ii).
5. This word was substituted for the word "member" by Guj, 11 of 1986, s. S(1). G.
6. This word was substituted for the word "four" by Guj. 14..of 1968; s. 2 (ii). Earlier the word, “two” was substituted by the
word “four” by Guj. 14 of 1964 S.2 (iii).

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(e) the 1[Managing Director] of the Corporation , ex-officio, who shall also be the secretary of the
Corporation.

(2) The State Government shall appoint one of the 2[Directors] of the Corporation to be Chairman of the
Corporation and may appoint one of the other 2[Directors] as Vice-Chairman.
Disqualification
5. A person shall be disqualified for being nominated as a 3[Director] of the Corporation if he:- for
5
[Directorship]
(a) is an employee of the Corporation, not being the 4[Managing Director] thereof, or

(b) is of unsound mind and stands so declared, by a competent court, or

(c) is an undischarged insolvent.

6. (1) The Chairman, Vice-Chairman (if any) and 6[Directors] of the Corporation nominated under Term of Office
clauses (a) to (d) of sub-section (1) of the section 4, shall hold office for a period up to the end of two years from and
Conditions of
the date of their nomination as 6[Directors].
Services of
9[Directors]
(2) The 6[Directors] of the Corporation nominated under clause (a) or (e) of sub-section (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 7[Directors] for extra or special
services required to be rendered by him.

(3) The 6[Directors] of the Corporation nominated under clause (b), (c) or (d) of sub-section (1) of the
section 4 shall be entitled to draw such honorarium of compensatory allowances for the purpose of meeting the
personal expenditure in attending the meetings of the Corporation or 8[of any Committee thereof or in doing or
for performing any work connected with the functions of the Corporation which may be specially entrusted to
them by the Corporation or by any Committee thereof] as may be prescribed.

(4) Any person nominated as a 7[Director] shall, unless disqualified, be eligible for re-nomination.

7. (1) The Corporation shall meet at such times and places, and shall subject to the provisions of sub- Meetings of
section (2) observe such rules of procedure in regard to the transactions of its business as may be provided by Corporation
regulations.

(2) A 10[Director] who is directly or the indirectly concerned or interested in any contract, loan,
arrangement or proposal, entered into or proposed to be 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 11[Directors] for the purpose of eliciting
information, and shall not vote thereon:
Provided that, a 10[Director] 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) If a 12[Director] Cessation of

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[directorship]
(a) becomes subject to any of the disqualifications mentioned in section 5, or
______________________________________________________________________
1. These words were substituted for the words “Chief Executive Officer” by Guj. 11 of 1986, s. 5(3).
2. This word was substituted for the word “members” ibid s.4(1).
3. This word was substituted for the word “member” ibid., s.6(1).
4. These words were substituted for the words “Chief Executive Officer”, ibid., s.6(2).
5. This word was substituted for the word “membership”, ibid., s.6(3).
6. This word was substituted for the word “members” ibid., s.7(1).
7. This word was substituted for the word “members” ibid., s.7(2).
8. These words were substituted for the words “of any committee there under or appointed in connection with the
work undertaken by or for the Corporation”, ibid., s.7(3).
9. This word was substituted for the word “members” ibid s.7(4).
10. This word was substituted for the word “member” ibid s.8(1).
11. This word was substituted for the word “members” ibid s.8(2).
12. This word was substituted for the word “member” ibid s.9(1).
13. This word was substituted for the word “membership”, ibid s.9(2).

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(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 1[Director] of the
Corporation.

(2) The State Government may by order suspend from office for such period as it thinks fit, or remove
from office any 1[Director] 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 1[Director] 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 1[Director].

Vacancies
how to be 9. Any vacancy of a 2[Director] of the Corporation shall be filled as early as practicable, and in like
filled in manner as if the nomination were being made initially:

Provided that, during any such vacancy the continuing 3[Directors] may act as if no vacancy had occurred.

Temporary 10. (1) If the Chairman or any other 4[Director] of the Corporation is by reason of illness or otherwise
absence of rendered temporarily incapable of carrying out his duties, or is granted leave of absence by the State
6[
Directors] Government, or is otherwise unable to attend his duties in circumstances not involving the cessation of his
5
[directorship] under Section 8, the State Government may appoint another person to act in his place and carry
out duties and functions entrusted to him by or under this Act until such Chairman or 4[Director], as the case may
be, resumes his duties.

(2) If a Vice-Chairman has been appointed in the absence of the Chairman, the Vice-Chairman shall be
competent to carry out duties and functions of the Chairman.

Proceedings 11. No Disqualification of, or defect in the appointment of any person acting as the Chairman or Vice-
presumed to Chairman or a 7[Director] of the Corporation, shall vitiate any act or proceeding of the Corporation, if such act or
be good and proceeding is otherwise in accordance with the provisions of this Act.
valid

Officers 12.(1) The State Government shall appointment a 8{Managing Director], and a Chief Accounts Officer of
and the Corporation.
Servants of
Corporation
.
(2) The Corporation may appoint such other officers and servants, subordinate to the officers mentioned in
sub-section (1), as it considers necessary for the efficient performance of its duties and functions.

_________________________________________________________________________________________

1. This word was substituted for the word “member” by Guj.11 of 1986, s. 9(1).
2. This word was substituted for the word “member”, ibid., s. 10(1).
3. This word was substituted for the word “members”, ibid s. 10(2).
4. This word was substituted for the word “member”, ibid., s.11(1).
5. This word was substituted for the word “membership”, ibid., s.11(2).
6. This word was substituted for the word “member”, ibid., s. 11(3).
7. This word was substituted for the word “member”, ibid., s.12.
8. These words were substituted for the words “Chief Executive Officer”, ibid., s. 13.

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(3) The conditions of appointment and service of the officers and servants and their scales of pay shall-

(a) as regard the 1[Managing Director] and the Chief Accounts Officer, be such as may be prescribed,
and

(b) as regards the other officers, and servants, be such as may be determined by regulations.

CHAPTER III

FUNCTIIONS AND POWERS OF THE CORPORATION

13. The functions of the Corporation shall be-

Functions
(i) generally to promote and assist in the rapid and orderly establishment, growth and development of
Industries in the State of Gujarat, and

(ii) in particular and without prejudice to the generality of clause (i) to-

(a) establish and manage industrial estates at place selected by the State Government;

(b) develop industrial area selected by the State Government for the purpose and make them available
for undertakings to establish themselves;

(c) develop land on its own account or for the State Government for the purpose of facilitating the
location of industries 2[and commercial centres] thereon;

(d) assist financially by loans industries to move their factories into such estates or areas;

3
[(da) undertake schemes for providing industrial units and commercial establishments with such
structures and facilities as may be necessary for their orderly establishment, growth and development;]

(e) 4[promote, organise, sponsor or 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- General
powers of
Corporation.
(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;

(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;

(c) to provide or cause to be provided amenities and common facilities in 5[industrial estates,
commercial centres and industrial areas] and construct and maintain or cause to be maintained 6[works,
buildings, amenities and common facilities] therefore;

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[(cc) to levy and collect development charges on the land which is not vested in or under the Control of
the Corporation and which is benefited or likely to be benefited by the development or scheme or the work
undertaken by the Corporation]

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1. These words were substituted for the words, “Chief executive officer”, by Guj. 11 of 1986, s.13
2. These words were inserted ibid., s.14(1)
3. Clause (da) was inserted ibid., s.14(2).
4. These words were substituted for the words, “undertake scheme”, ibid., s.14(3).
5. These words were substituted for the words, “industrial estates and industrial areas”, ibid., s. 15(1)(a).
6. These words were substituted for the words, “works and buildings”, ibid., s.15(1)(b).
7. Clause (CC) was inserted by Guj. 5 of 2007, s. 2.

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(d) to make available buildings n hire or sale to industrialists or persons intending to start industrial
undertakings 1[or, commercial establishments or both the industrial undertakings and commercial
establishments;]

(e) to construct buildings for the housing of the employees if such industries; 2[or commercial
establishments];

(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:

3[(ia) to allot shops and other buildings to suitable persons in commercial centres established 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;

(g) to constitute committees from amongst its 4[Directors] to perform any of its functions;

(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;

(j) 5[* * * * * * * * *] [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;

(k) to enter into and perform all such contracts as it may consider necessary or expedient for carrying out
any of its functions; and;

(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.

Authenticatio 15. All permissions, orders, decisions, notices and other documents of the Corporation shall be authenticated by
n of orders the signature of the 6[Managing Director] of the Corporation or any other Officer authorised by the Corporation
and
documents of
in this behalf..
Corporation.
7
Notification [16. 8(1) Notwithstanding anything contained in the provisions for the time being in force relating to notified Guj.34
of any areas in the Gujarat Municipalities Act, 1963, the State Government may, by notification in the Official Gazette- of 1964
industrial
area as
notified area
under Gujarat (a) declare that the provisions relating to notified areas and any other provisions of that Act shall extend to
Municipalitie and be brought into force in any industrial area, and thereupon such area shall be deemed to be a notified area
s Act.
under that Act;

(b) appoint the Corporation or any officer or committee thereof 9(or a Committee constituting of such
persons (hereinafter referred to as “the Board of Management”) as the State Government may think fit] for the
purposes of the assessment and recovery of any taxes, when imposed under the provisions so extended and for
enforcing such provisions;

(c) provide that the provisions of any law relating to local authorities which is in force in that area shall
cease to apply, and thereupon such provisions shall cease to apply thereto;

__________________________________________________________________________
1. These words were inserted, by Guj. 11 of 1986, S.15(2).
2. These words were inserted, ibid., s.15(3)
3. Sub-clause (ia) was inserted, ibid., s.15(4).
4. This word was substituted for the word “members”, ibid., s.15(5).
5. The words “subject to the previous permission of the State Government” were deleted, ibid., s.16.
6. These words were substituted for the words “Chief Executive Officer”., s.16.
7. [New] section 16 was substituted for the original by Guj. 14 of 1968, s.3.
8. Renumbered as sub-section(1) by Guj. 16 of 2007 s.2.
9. These words and brackets were inserted ibid. s. 2(1)

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(d) make such other provision as is necessary for the purpose of the enforcement of the provisions so
extended to that area.]

2
[(2) The Constitution of the Board of Management, the qualifications, terms and conditions and the
manner of appointment of the members of the Board of Management and other persons and functions of the
Board of Management shall be such as may be provided.]

3
[16A: (1) For the purpose of uniformity and providing efficient management in the notified areas, the Director of
Corporation shall appoint an officer of the Corporation not below the rank of General Manager to be the Director Notified
Areas
of Notified Areas.

(2) The powers, functions and duties of the Director of Notified Areas shall be such as may be
prescribed.
(3) An officer or the committee of the Corporation or the Board of Management appointed under
clause (b) of sub-section (1) of section 16 shall exercise the powers under the superintendence, direction and
control of the Director of Notified Areas”]

17. The State Government may from time to time issue to the Corporation such general or special Directions
directions of policy as it thinks necessary or expedient for the purposes of carrying out the purposes of this Act by the State
Government.
and the Corporation shall be bound to follow and act upon such directions

CHAPTER IV

FINANCE, ACCOUNTS AND AUDIT

18. All property funds and other assets vesting in the Corporation shall be held and applied by it, Application of
Corporation’s
subject to the provisions of the purposes of this Act. assets.

19. (1) The Corporation shall have and maintain its own funds, to which shall be certified- Corporation’s
Fund.

(a) all moneys received by the Corporation from the State Government by way of grants,
subventions, loans, advances or otherwise;

(b) all fees, costs and charges received by the Corporation under this Act;

(c) all moneys received by the Corporation from the disposal of lands, buildings and other
properties, movable and immovable and other transactions;

(d) all moneys received by the Corporation by way of rents and profits or in any other manner or
from any other source.
(2) The Corporation may keep in current or deposit account with the State Bank of India or any other
Bank approved by the State Government in this behalf such sum of money out of its fund as may be prescribed
and any money in excess of the said sum shall be invested in such manner as may be approved by the State
Government.

(3) Such accounts shall be operated upon by such officers of the Corporation as may be authorised by
regulations.
20. The State Government may make such grants, subventions, loans and advances to the Corporation Grants,
as it may deem necessary for the performance of the functions of the Corporation under this Act and all grants, subventions,
subventions, loans and advances made shall be on such terms and conditions as the State Government may after loans and
advances to
consulting the Corporation determine. Corporation.

21. (1) The Corporation may, subject, to such conditions as may be prescribed in this behalf, borrow Power of
money in the open market or otherwise with a view to providing itself with adequate resources. corporation to
borrow.

(2) All moneys borrowed under sub-section (1) may be guaranteed by the State Government as to
the repayment of principal and payment of interest at such rates and such conditions as the State Government
may determine at the time the moneys are borrowed.

1[Explanation.- The expression "to borrow money" with all its grammatical variations and cognate expressions
includes, acceptance of deposits (not being deposits accepted under section 22) from the public for a specified
period and on payment of interest thereon to the depositors at specified rates]

22. The Corporation may accept deposits on such conditions as it deems fit from persons, authorities or Deposits
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.

23. (1) The Corporation shall make provision for such reserve and other specially denominated funds Reserve and
other funds.
and in such manner and to such extent as the State Government may, from time to time, direct.
___________________________________________________________________________
1. This explanation was inserted by Guj. 11 of 1986, s.17
2. This sub-section 16(2) was inserted by Guj. 16 of 2007. s.2(2)
3. This sub-section 16 A was inserted ibid. s.3

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 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(2) The management of the funds referred to in-sub-section (1),the sums to transferred from time to time
to the credit thereof and the application of money comprised therein, shall be determined by the Corporation.

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

Expenditure 24. (1) The Corporation shall have the authority to spend such sums as it thinks fit for the purposes
from funds. authorised under this Act from out of the general fund of the Corporation referred to in section 19 or from the
reserve and other funds referred to in section 23, as the case may be.

(2) Without prejudice to the generality of the power conferred by sub-section (1), the Corporation
may contribute such sums as it thinks fit towards expenditure incurred or to be incurred by any local authority or
statutory public undertaking in the performance, in relation to any of its industrial estates or industrial areas, of
any of the statutory functions of such authority or undertaking, including expenditure incurred in the acquisition
of land.

(3) No expenditure other than capital expenditure shall be incurred by the Corporation out of moneys
borrowed or received by way of deposits.

Budget and 25. (1) The Corporation shall, by such date in each year as may be prescribed, prepare and submit to
Programme State Government for approval an annual financial statement and the programme of work for the succeeding
of work. financial year.

(2) The annual financial statement shall show the estimated receipts and expenditure during the
succeeding financial year in such form and details as may be prescribed.

(3) With the approval of the State Government the Corporation shall be competent to make variations
in the programme of work in the course of the year:

Provided that all such variations and reappropriations out of the sanctioned budget are brought to the
notice of the State Government by a supplementary financial statement.

(4) A copy each of the annual financial statement and the programme of work and the supplementary
financial statement, if any, on submission to the State Government as soon as may be, shall be placed before the
State Legislature.

Accounts 26. (1) The Corporation shall maintain books of account and other books in relation to its business and
and audit.
transactions in such form and in such manner, as may be prescribed.

(2) The accounts of the Corporation shall be audited by an auditor appointed by the State
Government , in consultation with the Comptroller and Auditor General of India.

(3) As soon as the accounts of the Corporation are audited, the Corporation shall send a copy thereof
together with the copy of the report of the auditor thereon to the State Government.

(4) The State Government shall cause the accounts of the Corporation together with the audit report
thereon forwarded to it under sub-section (3) to be laid annually before the State Legislature.

Concurrent 27. (1) Notwithstanding anything contained in section 26, the State Government may order that
and special there shall be concurrent audit of the accounts of the Corporation by such person as it thinks fit. The State
audit of
Government may also direct a special audit to be made by such person as it thinks fit of the accounts of the
accounts.
Corporation relating to any particular transaction or class or series of transactions or to a particular period.
(2) The State Government may pass such orders on the reports of the special audit and the Corporation
shall be bound to comply with such order.

(3) The report on the special audit shall be laid before the State Legislature.

(4) When an order is made under sub-section (1), the Corporation shall present or cause to be presented
for audit such accounts and shall furnish to the person appointed under sub-section (1) such information as the
said person may require for the purpose of audit

11
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

CHAPTER V
1 2
. [***] NON-APPLICATION OF RENT CONTROL ACTS TO CORPORATION PREMISES]

3
[28. In this Chapter, Definitions

(a) "competent authority" means the 4[Managing Director] of the Corporation and includes such other of
the Corporation as the State Government may by notification in the Official Gazette authorise to perform the
functions of a competent authority under this chapter for a such area as may be specified in the notification;

(b) "corporation premises" means any premises belonging to or vesting in the Corporation or taken on
lease by the Corporation or entrusted to the Corporation under the Act for management and use for the purposes
of this Act;

(c) "premises" means land, building or part of a building and includes a hut, shed or other structure or part
thereof .

5
[28A. Power to evict certain persons from Corporation premises

28B. Power to recover rent or damages as arrears of land revenue.

28C. Appeal.

28D. Bar of jurisdiction of Civil Courts]. Repealed by Guj. 12 of 1973, S.19.

Bom. 29. The Bombay Rents, Hotel and Lodging House Rates, Control Act, 1947, or any other law Non-
LVII of corresponding there to for the time being in force in any part of the State- application of
1947. Rent Control
Acts to
(a) shall not apply to any premises belonging to or vesting in the Corporation under or for the Corporation
purposes of this Act; premises
(b) shall not apply as against the Corporation to any tenancies, or like relationship created by the
Corporation in respect of any such premises;

(c ) but shall apply to any premises let to the Corporation.

CHAPTER VI

ACQUISITION AND DISPOSAL OF LAND

30.(1) Wherever any land is required by the Corporation for any purpose in furtherance of the objects of Compulsory
the Act, but the Corporation is unable to acquire it by agreement, the State Government may, upon an acquisition of
land for
application of the Corporation in that behalf, order proceedings to be taken under the relevant land Corporation
acquisition law for acquiring the same o n behalf of the Corporation as if such lands were needed for a
public purpose within the meaning of the relevant land acquisition law.

(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. The new heading was substituted for the original by Guj. 14 of 1968. s.4
2. The words “POWER TO EVICT PERSONS FROM AND’ were expressly repealed by Guj.12 of 1973, s.19
3. These sections were substituted for the original section 28 by Guj.14 of 1968. s.5
4. These words were substituted for the words “Chief Executive Officer” by Guj.11 of 1986, s.18.
5. Section 28A to 28D have been repealed by Guj.12 of 1973 S.19.

12
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

Amendment 31. Where in pursuance of section 30 any proceedings are taken for acquiring any land for the
of section 17 Corporation, then in respect of such proceedings –
of land
acquisition
Act for (1) section 17 of the Land acquisition Act, 1894 as in force in the Bombay and Kutch areas of the State, 1 of 1984
purposes of and
Act.
(2) section 17 of the Land Acquisition Act, 1894 as applied to the Saurashtra area of the State,shall 1 of 1984
have effect as if the words “waste or arable” were deleted from sub-section (1) thereof.
Government
lands (32) (1) For the furtherance of the objects of this Act, the State Government may, upon such conditions
as may be agreed upon between it and the Corporation, place at the disposal of the corporation any lands vested
in the State Government.

(2) After any such land has 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, and directions
given by the State Government in this behalf.

(3) If any land placed at the disposal of the Corporation under sub-section (1) is required at any time
thereafter by the State Government, the Corporation shall replace it at the disposal of the State Government upon
such terms and conditions as the State Government may after consultation with the Corporation determine.

1
[CHAPTER VI-A

LEVY OF DEVELOPMENT CHARGES

Developm 32A. Where any land is developed or any scheme or work is undertaken by the Corporation under the
-ent
charges provisions of this Act, and any other land not vesting in or under the control of the Corporation is benefited or is
likely to be benefited by such development, scheme or the work, the Corporation may, by resolution, determine
the development charges and levy and collect the development charges on such land in such manner as may be
prescribed by regulations..

32B (1) Any person aggrieved by the order of the Corporation levying the development charges under
Appeal
section 32A, may prefer an appeal to the. State Government within such period, accompanied by such fees and
in such manner as may be prescribed.

(2) The State Government may, after giving an opportunity of being heard to the appellant and the
Corporation, pass such order thereon as it deems fit and proper.

(3) The decision of the State Government on such appeal shall be final.

Conditions 4.(1) Notwithstanding anything contained in the principal Act, any resolution passed by the
of levy & Corporation determining the rate of development charges and the development charges levied and collected or
collection of purported to have been, levied or collected on the land, other than the land not vested in or under the control of
development the Corporation which is benefited or likely to be benefited by the development, scheme or the work undertaken
charges
by the Corporation, shall be and shall be deemed always to have been validly passed and validly levied and
collected by the Corporation in accordance with law as if the provisions of the principal Act as amended by this
Act had been in force at all material times when such resolutions passed or such charges were levied, and
collected; and accordingly, -

(a) no suit, appeal or other proceedings shall be maintained or continued in any court or before any
authority against the Corporation for the refund of aforesaid development charges.

(b) no court or other authority shall enforce any decree or order directing the refund of the said
development charges,

(c) any resolution passed by the Corporation determining the development charges and the levy and
collection of the said development charges .shall have and shall be deemed to have effect for all the purposes and
recoveries of such development charges shall be made in accordance with the provisions of the principal Act as
amended by this Act.

(d) any amount paid as development charges or development expenses shall be deemed to have been
paid as development charges in accordance with the provisions of the principal Act as amended by this Act.

(2) For the removal of doubt, it is hereby declared that nothing in sub-section (1) shall be construed as
preventing any person;

(a) from questioning, in accordance with the provisions of the principal act as amended by this Act, the
levy and collection of aforesaid development charges, or
(b) from claiming, in accordance with the provisions the principal Act as amended by this Act, the
refund of such development charges paid by him in excess of the amount due from him.]
_________________________________________________________________________________________
1. Original Chapter VIA inserted by Guj.14 of 1968, s.6 subsequently it is substituted by Guj.05 of 2007. s.3

13
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

CHAPTER VII

SUPPLEMENTARY AND MISCELLANEOUS PROVISIONS

33. (1) If the Corporation after holding a local inquiry, or upon a report from any of its officers or other Powers of
information in its possession, is satisfied that the owner of any land in an industrial area has failed to provide any Corporation in
case of certain
amenity in relation to the land which in the opinion of the Corporation ought to be provided or to carry out any defaults by
development of the land for which permission has been obtained under this Act the Corporation may, after owner of land
giving the owner a reasonable opportunity of being heard, serve upon the owner a notice requiring him to in industrial
provide the amenity or carry out the development within such time as may be specified in the notice. area.

(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 action under this sub-section, the Corporation shall afford reasonable opportunity to
the owner of the land to show cause why such action should not be taken.

(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 when a demand for expenses is made form the owner until payment, shall be recoverable by the
Corporation from the owner.

(4) An owner aggrieved by a notice issued to him under sub-section (1) may within a period of sixty Bom.
days from the date on which the notice is served on him file an appeal to the President of the Gujarat Revenue XXXI of
1958
Tribunal notwithstanding anything contained in the Bombay Revenue Tribunal Act, 1957.

(5) In deciding an appeal under sub-section (4), the President of the Gujarat Revenue Tribunal shall
exercise all the powers which a court has and follow the same procedure which a court follows in deciding
appeals from a decree or order of an original court under the Code of Civil Procedure 1908.
V of
(6) A decision in such appeal shall be final and conclusive. 1908

Order of 34. (1) Where the erection of any building in 1[an industrial estate, commercial centre or] industrial area
demoliti has been commenced, or is being carried on, or has been completed, or any existing building is altered, in
on of contravention of the terms on which such building or the land on which it stands is held or granted under this
building.
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 directing that such erection shall be demolished by the owner thereof
within such period 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 the expenses of such
demotion 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) Any person aggrieved by an order under sub-section(1) may appeal against that order within thirty
days from the date thereof to a Committee of the Corporation set up for the purpose by regulations made in this
behalf. 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.

(3) The decision of the Committee on the appeal and subject only to such decision the order made by
the officer under sub-section (1) shall be final.

Power to 35. (1) Where the erection of any building in 2[an industrial estate, commercial centre or] industrial
stop area has been commenced, or is being carried on, or has been completed, or any existing building is altered, in
building contravention of the terms on which such building or the land on which such building or the land on which it
operation. 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 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) Where such building operations are not discontinued in pursuance of the requisition 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.

_______________________________________________________________________________________
1. These words were substituted for the words “an industrial estate or” by Guj. 11 of 1986, s. 19.
2. These words were substituted for the words “an industrial estate or”, ibid; s. 20.

14
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(3) After a requisition under sub-section (2) has been complied with the Corporation 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.

(4) Any person failing to comply with an order made under sub-section (1) shall, on conviction, be
punished with fine watch may extend to two hundred rupees for every day during which such non-compliance
continues after the service of the order.

(5) No compensation shall be claim able by any person for any damage or loss, which he may sustain in
consequence of any order made under this section.

(6) The cost of employing any police officer under this section shall initially be borne by the Corporation Penalty for
but it shall be recoverable from the person who failed to comply with an order made under sub-section (1). constructio
n or use of
land and
36. (1) Any person who whether at his own instance or at the insurance of any other person undertakes or buildings
carries construction of or alterations to any building in an industrial estate or industrial area contrary to the terms contrary to
terms of
under which he holds such building or land under this Act shall, on conviction, e punished with fine which may holding.
extend to five hundred rupees for every day during which such offence continues after conviction for the first
commission of the offence.

(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 conviction, be punished with fine which may extend to five thousand rupees.

1
[37.1. (1) (a) for the purposes of,

(i) carrying gas, water or electricity within any area taken up for development under paragraph, (b) of Power to
lay
clause (ii) section 13 (hereinafter referred to as “the said area”) ; or Pipelines
etc.
(ii) construction any sewers or drains necessary for carrying off workings and waste liquids of an industrial
process through the said area.

The Corporation may, after giving reasonable notice to the owner or occupier of any building or land in the
said area, 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 the said area.

(b) For the purpose of,-

(i) carrying gas, water or electricity from a source of supply to an industrial estate, commercial centre or
industrial area, such source of supply being in an area outside such estate, centre or area (hereinafter referred to as
“an outside area”); or

(ii) constructing any sewers or drains necessary for carrying off workings and waste liquids of an industrial
process to or through an outside area,

any person empowered in this behalf by the State Government by notification in the Official Gazette
(hereinafter referred to as “ the authorised person”), may after giving reasonable notice to the owner occupier of
any building or land in the outside area, 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 the outside area.]

________________________________________________________________________________________

1. This sub-section was substituted for the original by Guj. 11 of 1986, s.21 (i)

15
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(2) The Corporation or as the case may be, the authorized person may at any time enter upon any
land in any such area and in any such event the provisions of section 38 shall mutatis mutandis apply.

(3) While exercising the power conferred by sub-section (1), the Corporation or the authorized
person shall-

(i) Where the land affected is a street, bridge, sewer; drain or tunnel comply mutatis mutandis
with the relevant provisions of the Gas Companies Act, 1863, notwithstanding the fact that the Act is not in
force in the area or that the State Government has not issued a notification extending such provisions to such
land,

(ii) Cause as little damage as possible to property.

Compensation to all persons interested for extinguishment or modification of rights in properly Bom. V
and any damage sustained by them in consequence of the exercise pf such powers as aforesaid 1[shall be of 1863.
paid by the Corporation irrespective of whether the area is the said area or the outside area];

Provided that the amount of compensation in lump sum or in the form of annual rent according as
the circumstances of the case may require, shall be fixed and where necessary apportioned by the Collector
in accordance with the provisions of the relevant Land Acquisition Law.

(4) Nothing herein shall authorize or empower the Corporation or the authorized 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 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
normal course.

2
[(5)(a) Where the owner or the occupier of any building or land does not reply in writing to the
Corporation or the authorized person within a period of fifteen days from the date on which the consent
referred to in sub-section (4) is sought, or refuses to give such consent to laying down or placing any pipe
or other works into, through or against such building, the Corporation or the authorized person shall
forthwith make a report in writing of the fact to the Collector.

(b) On receipt of the report, if the Collector, after making any inquiry and after giving the owner
and the occupier of such building or land, as the case may be, an opportunity of stating his objection to give
such consent is satisfied that for ensuring the full and efficient development of the industrial estate,
commercial centres, or as the case may be, industrial area it is necessary to permit the Corporation or the
authorized person to lay down or place any pipe or the other works into, through or against the building or in
the land as contemplated by the Corporation or the authorized person, the Collector shall, notwithstanding
anything contained in sub-section (4) by an order in writing, grant the requisite permission to the
Corporation or the authorized person.

.
________________________________________________________________________
1. These words were substituted for the words “shall be paid, as the case may be, by the corporation, or, in the
case of the authorised person, by the State Government”, s.21. (i) by Guj. II of 1986.
2. This new sub-section was inserted, ibid; s.21 (iii).

16
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(c) When such permission is granted, it shall be lawful for the Corporation or the authorized
person to lay down or place any pipe or other works into, through or against such building or in such land,
as if the necessary consent under sub-section (4) has been given.]

38. Any officer of the State Government, any 1[Director] of the Corporation and any person either
generally or specially authorized by the Corporation in this behalf, may enter into or upon any land or
building with or without assistant or workmen for the purpose of-

(a) making any inspection, survey, measurement, valuation or inquiry or taking levels of such land Power of
or buildings ; entry.

(b) examining works under construction and ascertaining the course of sewers and drains ;

(c) digging or boring into the sub-soil;

(d) setting out boundaries and intended lines of work;

(e) marking such levels, boundaries and lines by placing marks and cutting trenches;

(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 building ;

(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 usage’s of the occupants of the land or building
entered.
Officers of
39. The State Government may, by notification in the Official Gazette, nominate any officer of the
Corporation
the Corporation to be a controller or licensing authority under any law for the time being in force relating to may be
the procurement or distribution of any commodity in respect of the industrial undertakings 2[or commercial vested with
establishments] established or to be established in 3[the industrial estates, commercial centres or] industrial other
areas entrusted to or developed by the Corporation and no such nomination shall be called in question powers.
merely on the ground that such officer is not an officer of the State Government.

40. Notwithstanding anything contained in any other law, or in any license or permit, if the State Over riding
powers of
Government is satisfied either on a recommendation made in this behalf by the Corporation or otherwise, Government
that the setting up of an industrial undertaking 4[or commercial establishment within an industrial area or to issue
outside] is impeded by a local authority’s refusal to grant, or by such authority’s insistence on conditions, directions to
which the State Government considers unreasonable for the grant of any amenity, the State Government local
authorities.
may direct the local authority to grant the said amenity on such conditions as it considers fit; and there upon
the amenity shall be granted ;

Provided that the charge to be paid for granting or continuing such amenity to the local authority concerned
is not less than the cost to the local authority or license for providing such amenity:

__________________________________________________________________

1. This word was substituted for the word “member” by Guj. II of 1968. s. 22.
2. These words were inserted ibid; s. 23(1).
3. These words were substituted for the words “the industrial estate or”, ibid; s. 23(2).
4. These words were substituted for the brackets and words “(whether within a industrial area or outside)”, ibid; s. 24.

17
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

Provided further that, no such direction shall be made by the State Government unless the local authority
shall have been given a reasonable opportunity to show cause why any such direction should not be made.

1
Liability of [40.A. Where any land is leased by the Corporation, the lessee shall pay to the Corporation before such
lessee to date or dates as may be prescribed, an amount equal to the land revenue, rent, cesses, rates, and other taxes, if
pay taxes any, payable in respect of such land, which would have been payable by the Corporation had the land not been
etc.
leased]

Recovery of 41. All sums payable by any person to the Corporation or recoverable by it by or under this Act and all
sums due to charges or expenses incurred in connection therewith shall, without prejudice to any other mode of recovery, be
Corporations
as arrears of recoverable as an arrears of land revenue on the application of the Corporation.
land
revenue.

Services of 42. (1) All notices, orders and other documents required by this Act, or any rule or regulation made
notices etc. thereunder to be served upon any person shall save as otherwise provided in this Act or such rule or regulation,
be deemed to be dully served-

(a) where the person to be served is a company the service is effected in accordance with the provisions I of
of section 51 of the Companies Act, 1956: 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 carried on, and is either-

(i) sent under a certificate of posting or by registered post, or

(ii) left at the said place of business;

(c) where the person to be served is a statutory public body or a Corporation or a society or other body,
if the document is addressed to the secretary, treasurer or other head officer of that body, Corporation or society
at its principal Office, and is either-

(i) sent under a certificate of posting or 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

(iii) is sent under a certificate of posting or by registered post to that person.

(2) Any document which is required or authorized to be served on the owner, or occupier of any land or
building may be addressed “the owner” or “the occupier” as the case may be, of that land or building (naming
that land or buildings) 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 or, where there is no person on the land or building to whom it can be delivered is affixed to
some conspicuous part of the land or building.

(3) Where a document is served on a firm in accordance with this section, the document shall be deemed
to be served on each partner.

____________________________________________________________________
1. Section 40A was inserted by Guj. 14 of 1968. s. 7.

18
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(4) For the purpose of enabling any document to be served on the owner of any property, the occupier
(if any) of the property maybe 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.

43. Every public notice given under this Act or any rule or regulation made thereunder shall be in Public notices
writing over the signature of the officer concerned and shall be widely made known in the locality to be how to be
affected thereby by affixing copies thereof in conspicuous public places, within the said locality, or by made known.
publishing the same by beat of drum or by advertisement in a local news paper, or by any two or more of these
means and by other means, as the officer may think fit.

44. Where any notice, order or other document issued or made under this Act or any rule or regulation Notices, etc to
made there under requires anything to be done for the doing of which no time is fixed in this Act or the rule or fix reasonable
regulation, the notice, order or other document shall specify a reasonable period of time for doing the same or time.
complying therewith.

1[
44.A . xxxxxxxxxx]

45. (1) The Corporation shall furnish to the State Government such returns statistics, reports, accounts Furnishing of
and other information with respect to its conduct of affairs, properties or activities or in regard to any returns etc.
proposed work or scheme as the State Government may form time to time require.

(2) The Corporation shall in addition to the audit report referred to in section 26 furnish to the State
Government an annual report on its working as soon as may be after the end of each financial year in such
form and detail as may be after the end of each financial year in such form and detail 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.

46. Where the State Government is satisfied that in respect of 2[any particular industrial estate, Withdrawal of
commercial centre or] industrial area, or any part thereof, the purpose for which the Corporation was area or estate
established under this Act has been substantially achieved so as to render the continued existence of 3[such or part thereof
estate, centre or] under the Corporation unnecessary the State Government may, by notification in the official
Gazette, declare that or 4[such industrial estate, commercial centre or] industrial area or part thereof has been
removed form the jurisdiction of the Corporation. Thereupon the State Government may after consulting the
Corporation pass such orders in respect of consequential financial arrangements with the Corporation and the
transfer or apportionment of any assets and liabilities of the Corporation as it may deem fit. The State
Government may also make such other incidental arrangements for the administration of 3[such estate, centre
or] area or part thereof as the State Government thinks fit.

47.(1) If the State Government after giving the Corporation an opportunity to render an explanation is Default in
satisfied that the Corporation has, made a default in performing any duty or obligation imposed or cast on it by performance
of duty.
or under this Act the State Government may fix a period for the performance of that duty or obligation and
give notice to the Corporation accordingly.

(2) If in the opinion of the State Government the Corporation 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, after
having given the Corporation to show cause against such order, by order supersede the Corporation and
thereafter reconstitute the Corporation, as it deems fit.

____________________________________________________________________
1. Section 44A was inserted by Guj. 14 of 1968 s.8. This section 44A was deleted by Guj. 3 of 1994 s.2
2. These words were substituted for the words “any particular industrial estate or” by Guj. 11 of 1968, s. 25(1)
3. These words were substituted for the words “such estate or”, ibid., s.25(2).
4. These words were substituted for the words “such industrial estate or”, ibid., s. 25(3).

19
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

(3) After the supersession of the Corporation and until it is continued 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, and the cost thereof shall be met from the funds of the Corporation.

(4) All property vested in the Corporation shall, during the period of supersession, vest in the State
Government.

Dissolution 48. (1) The State Government if satisfied that the purposes for which the Corporation was established
of under this Act has been substantially achieved so as to render its continuance unnecessary, it may by notification
Corporation in the Official Gazette declare that the Corporation shall be dissolved with effect from such date as may be
.
specified in the notification, and thereupon the Corporation shall stand dissolved accordingly.

(2) From the said date-

(a) all properties, funds and dues which are vested in, or realizable by, the Corporation shall vest in or be
realisable by State Government; and

(b) all liabilities which are enforceable against the Corporation shall be enforceable against the State
Government.

Authority 49. Unless otherwise expressly provided no court shall take cognizance of any offence relating to
for property belonging or vested by or under this Act in the Corporation punishable under this Act, except on the
prosecution complaint of, or upon information received from the Corporation or some person authorized by the Corporation
by general or special order in this behalf
Composition
of offences 50. (1) The Corporation or any person authorized by the Corporation by general or special order in this
by behalf may, either before or after the institution of the proceedings, compound any offence made punishable by
Corporation or under this Act.

(2) Where an offence is compounded, the offender if in custody shall be discharged and no further
proceedings shall be taken against him in respect of the offence compounded.

Offences 51. (1) Whenever an offence under this Act has been committed by company, every person who at the
by time the offence was committed was in charge of, or was responsible to the company for the conduct of the
Companie
s business of 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 o f such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been
committed by a company and it is proved that the offence has been committed with the consent or conniyance of,
or is attributed to any neglect on the part of any director, manager, secretary or other officer of the company,
such director, manager secretary or other officer shall also be deemed to be guilty of that offence and shall be
liable to be proceeded against and punished accordingly;

Explanation, ---For the purposes of this section—

(a) “company” means body corporate and includes a firm or other association of individuals; and

(b)“Director” in relation to a firm, means a partner in the firm.

20
 Gujarat Industrial Development Act, 1962 [1962: Guj: XXIII]

52. Any person who obstructs the entry of a person authorized under section 38 to enter into or upon Penalty for
any land or building or molests such person after such entry or who obstructs the lawful exercise by him of any obstruction.
power conferred by or under this Act shall, on conviction, be punished with imprisonment for a term which may
extend to six months or with fine which may extend to one thousand rupees, or with both.

.
1 Penalty for
[52A. If any person obstructs or molests any person with whom the Corporation has entered into a
obstructions etc.
contract in the performance or execution by such person of his duty or of any thing which he is empowered or ,persons
required to do under this Act he shall, on conviction, be punished with imprisonment for a term which may performing duty
extend to three months or with fine which may extend to five hundred rupees or with both. under contract.

. 52B. If any person removes any mark set up for the purpose of indicating any level, boundary line or Penalty for
direction necessary to the execution of works authorized under this Act he shall, on conviction, be punished with removing
imprisonment for a term which may extend to three months or with fine which may extend to five hundred marks etc.
rupees, or, with both.

52C. Any person who obstructs the lawful exercise of any power conferred by or under Chapter V shall, Penalty for
obstructing exercise
on conviction, be punished with fine, which may extend to one thousand rupees.] of powers under
Chapter V.

53.(1) The State Government, after consultation with the Corporation in regard to matters concerning it, Power to
may, by notification in the Official Gazette, make rules to carry out the purposes of this Act; make rules.

Provided that, consultation with the Corporation shall not be necessary on the first occasion of the
making of rules under this section, but the State Government shall take into consideration any suggestions which
the Corporation may make in relation to amendment of such rules after they are made.

(2) In particular and without prejudice to the generality of the foregoing power such rules may provide
for all matters expressly required or allowed by this Act to be prescribed by rules and fees which may be charged
by the Corporation..

(3) All rules made under this section shall be laid for not less than thirty days before the State Legislature
as soon as possible after they are made and shall be subject to rescission by the Legislature, or to such
modification as the Legislature may make, during the session in which they are so laid, or the session
immediately following.

(4) Any rescission or modification so made by the State Legislature shall be published in the Official
Gazette and shall thereupon take effect.

54.(1) The Corporation may, with the previous approval of the State Government make regulations Power to
consistent with this Act and the rules made thereunder, and to carry out the purposes of this Act. make
regulations.

(2) In particular and without prejudice to the generality of the foregoing power such regulations may
provide for all matters expressly required or allowed by this Act to be provided by regulations.

(3) All regulations made under this section shall be published in the Official Gazette and shall be laid
for not less than thirty days before the State Legislature, as soon as possible, after they are made, and shall be
subject to rescission by the Legislature, or to such modification as the Legislature may make, during the session
in which they are so laid, or the session immediately following.

(4) Any rescission or modification so made by the State Legislature shall be published in the Official
Gazette and shall thereupon take effect.

[Link] suit, prosecution or other legal proceedings shall lie against any person for anything which is in Protection of
good faith done or intended to be done under this Act or any rule or regulation made thereunder. action taken in
good faith.

_________________________________________________________________________
1. Sections 52A, 52B, & 52C were inserted by Guj. 14 of 1968, s.9.

21
 Gujarat Industrial Development Act, 1962 [1962: Guj:
XXIII]

1
Notice of [55A. (1) No person shall commerce any suit against the Corporation or against any officer or
suit servant of the Corporation or any person acting under the orders of the Corporation for anything done or
against
Corporatio
purporting to have been done in pursuance of this Act, without giving to the Corporation, Officer or servant
n. or person, as the case may be, two months previous notice in writing of the intended suit and of the cause
thereof, not after six months from the date of the act complained of.

(2) In the case of any such suit for damages if tender of sufficient amount shall have been made before the
action was brought, the plaintiff shall not recover more than the amounts so tendered and shall pay all costs
incurred by the defendant after such tender.]

3[Directors], 56. All 2[Directors], officers and servants of the Corporation shall, when acting purporting to act in XLV of
officers and pursuance of any of the provisions of this Act be deemed to be public servants within the meaning of 1960
staff of
Corporation section 21 of the Indian Penal Code.
to be public
servants.

Effect of
provisions
inconsistent with
57. The Provisions of this Act shall have effect notwithstanding anything inconsistent therewith
other laws. contained in any other law.

58. If any doubt or difficulty arises in giving effect to the provisions of this Act the State
Power to
remove Government may, by order, make provision or give such direction not inconsistent with the express
doubts and provisions of this Act as may appear to it to be necessary or expedient for the removal of the doubt or
difficulties difficulty, and the order of the State Government, in such cases, shall be final.

Amendment 59. In the Gujarat Legislative Assembly members (removal of Disqualification) Act, 1960, in the Guj. I of
of Schedule Schedule after entry 13 the following entry shall be interested namely: - 1960.
to Guj. I of
1960

13A. The Office of a member of the Gujarat Industrial Development Corporation nominated under Guj. XXIII
clause (b), (c) or (d) of sub-section (1) of section 4 of the Gujarat Industrial Development Act, 1962, by of 1962.
reason only of his holding such office”.

Repeal of 60. The Gujarat Industrial Development Ordinance, 1962 is hereby repealed and the provisions of Guj. Ord.
Guj. Ord. sections 7 and 25 of the Bombay General Clauses Act, 1904 shall apply to such repeal as if that Ordinance [Link] of
[Link] of were an enactment. 1962 Bom.
1962` I of 1904

____________________________________________________________________________________

1. Section 55A was inserted by Guj. 14 of 1968. s.10.

2. This word was substituted for the word “members” by Guj. 11 of 1986, s.26(1).
3. This word was substituted for the word “members”, ibid. , s.26(2).

22