Maharashtra · Act 3 of 1962

The Maharashtra Industrial Development Act, 1961.

The Maharashtra Industrial Development Act, 1961.

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GOVERNMENT OF MAHARASHTRA 

LAW AND JUDICIARY DEPARTMENT 

MAHARASHTRA ACT No. III OF 
1962 

THE MAHARASHTRA INDUSTRIAL 
DEVELOPMENT ACT, 1961. 

( As modified up to the 12 th December 2012 ) 

PRINTED IN INDIA BY THE MANAGER, YERAVDA PRISON PRESS, PUNE 
AND PUBLISHED BY THE DIRECTOR, GOVERNMENT PRINTING, STATIONERY 

AND PUBLICATIONS, MAHARASHTRA STATE, MUMBAI-400 004 

2012 

[ Price : Rs. 1



O] 

THE MAHARASHTRA INDUSTRIAL DEVELOPMENT ACT, 1961 

CONTENTS 

PREAMBLE 

SECTIONS. 

CHAPTER L 

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 membership. 

6. Terms of office and conditions of service of members. 

7. Meetings of Corporation. 

8. Cessation of membership. 

9. Vacancies how to be filled. 

10. Temporary absence of members. 

11.  Proceedings presumed to be good and valid. 

12.  Officers and servants of the Corporation. 

13.  Corporation to absorb certain staff and to assume obligations of State 

Government in respect of matters to which this Act applies. 

CHAPTER IIL 

FuncTioNs AND POWERS OF THE CORPORATION 

14. Functions. 

15. General powers of the Corporation 

16. Authentication of orders and documents of Corporation 

17. Power to levy service charges. 

18. Directions by the State Government.



(ii) Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

SECTIONS. 

CHAPTER IV 

FINANCE, ACCOUNTS AND AUDIT. 

19. Application of Corporation’s assets. 

20. Corporation’s fund. 

21. Grants, subventions, loans and advances to the Corporation. 

22. Power of Corporation to borrow. 

23. Deposits 

24. Reserve and other funds 

25. Expenditure from funds. 

26. Budget and programme of work. 

27.  Accounts and audit. 

28.  Concurrent and special audit of accounts. 

CHAPTER V. 

APPLICATION OF GOVERNMENT PrEMISES (EvICTION) ACT, AND 

Non-AppricaTioN oF RENT CoNTROL AcTs To CORPORATION PREMISES. 

29.  Application of Bombay Government Premises (Eviction) Act, 1955 to 
Corporation premises. 

30. Non-application of Rent Control Acts to Corporation Premises. 

CHAPTER VI 

AcqQUuISITION AND DISPOSAL OF LAND. 

31. Application. 

32.  Compulsory acquisition. 

33.  Compensation. 

34. Appeal to Court. 

35. Dispute as to apportionment. 

36. Payment of compensation. 

37. Investment of amount deposited in the Court. 

38. Payment of interest. 

39. Disposal of land by the Corporation. 

40. (Deleted) 

41.  (Deleted) 

42.  Delegation of powers of the State Government.



1962 : Mah. III'] Maharashtra Industrial (iii) 
Development Act, 1961 

SECTIONS. 

CHAPTER VI-A. 

UNUTILISED SURPLUS LANDS IN INDUSTRIAL AREAS. 

42-A.  Acquisition of unutilised surplus lands in industrial areas and 

allotment to other industries 

CHAPTER VIL 

SUPPLEMENTARY AND MISCELLANEOUS PROVISIONS. 

43-1A. Government lands. 

43.  Powers of the Corporation in case of certain defaults by owner of 
land in industrial area. 

44. Order of demolition of building. 

45.  Power to stop building operations. 

46. Penalty for construction or use of land and buildings contrary to terms 
of holding. 

47. Power to lay pipe lines, etc. 

48. Powers of entry 

49. Officers of the Corporation may be vested with other powers. 

50. Overriding powers of Government to issue directions to local 

authorities. 

50-A.  Power to Collector to reject applications for conversion of use of land 
for industrial purpose in adjoining areas in certain cases. 

51.  Recovery of sums due to the Corporation as arrears of land revenue. 

52.  Service of notices, etc. 
53.  Public notices how to be made known 
54. Notices, etec., to fix reasonable time. 

55.  Furnishing of returns, etc. 

56. Withdrawal of area or estate or part thereof. 

57. Default in performance of duty. 

58. Dissolution of Corporation. 

59. Authority for prosecution. 

60. Compositions of offences by Corporation 

61.  Offences by companies. 

62. Penalty for obstruction 

63. Power to make rules. 

64. Power to make regulations. 

65. Protection of action taken in good faith. 

66. Members, officers and staff of Corporation to be public servants. 

67. Effect of provisions inconsistent with other laws 

68. Power to remove doubts and difficulties. 
69. Amendment of Schedule I to Bom. LII of 1956.



MAHARASHTRA ACT No. III OF 1962' 

[ THE MAHARASHTRA INDUSTRIAL DEVELOPMENT Act, 1961 ] 

[ This Act received assent of the President on the 28th February 1962; 

assent was first published in the Maharashtra Government Gazette, 

Extraordinary, Part IV, dated the 1st March 1962. ] 

Amended by Mah. 11 of 1967 

Amended by Mah. 32 of 1967. 

Amended by Mah. 45 of 1971. 

Amended by Mah. 18 of 1975 (15-9-1976)%. 
Amended by Mah. 25 of 1977 

Amended by Mah. 44 of 1981 #(29-7-1981)7. 
Amended by Mah. 57 of 1981 

Amended by Mah. 46 of 1997 (29-12-1997)7. 

An Act to make special provision for securing the orderly establishment 
in industrial areas and industrial estates of industries in the State 
of Maharashtra, and to assist generally in the organization thereof, 
and for that purpose to establish an Industrial Development 
Corporation, and for purposes connected with the matters aforesaid. 

‘WHEREAS, it is expedient to make special provision for securing the orderly 

establishment in industrial areas and industrial estates of industries in the 
State of Maharashtra, and to assist generally in the organisation thereof, and 

for that purpose to establish an Industrial Development Corporation, and for 

purposes connected with the matters aforesaid; It is hereby enacted in the 

Twelfth Year of the Republic of India as follows :— 

CHAPTER I 
PRELIMINARY. 

1. (I) This Act may be called the Maharashtra Industrial Development Act, 1961. 

(2) It extends to the whole of the State of Maharashtra. 

(3) This Act, except Chapter VI, shall come into force at once; Chapter VI 

shall take effect in such area, from such date as the State Government may, 

from time to time, by notification in the Official Gazette, appoint in that behalf. 

[ Provided that, if in the opinion of the State Government any area or any 
part thereof, where Chapter VI has been brought into force, is not required or is 
not likely to be required for the purpose of development as an industrial area, 
the State Government may, by like notification, direct that Chapter VI shall 
cease to be in force in that area or in any part thereof on such date as may be 
specified in the notification, except as respects things done or omitted to be 
done before such date : 

1. For Statement of Objects and Reasons, see Maharashtra Government Gazette, 1961, Part V, 
pages 435-436. 

2. These provisos were added by Mah. 18 of 1975, . 2. 
+ This indicates the date of commencement. 
* Maharashtra Ordinance No. X of 1981 was repealed by Mah. 44 of 1981, 5. 6. 

Short title, 
extent and 
commence- 
ment.



2 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

Provided further that, no notification shall be issued by the State Government 

under the first proviso after the expiry of such period from the date of bringing 
into force of Chapter VI as may be prescribed; and different periods may be 
prescribed for the area in which Chapter VI has been brought into force before 
the commencement of the Maharashtra Industrial Development (Amendment) 

Act, 1974 and for the areas in which that Chapter may be brought into force after )'zl;i‘n 
such commencement. ] o195, 

Definitions. 2, In this Act, unless the context otherwise requires,— 

(@) “amenity” includes road, supply of water or electricity, street lighting, 

drainage, sewerage, 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; 

(¢) “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; 

(d) “Corporation” means the Maharashtra 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, or over or under 

land, or the making of any material change in any building or land, and 

includes redevelopment, but does not include mining operations; and “to 
develop” shall be construed accordingly; 

() “engineering operations” include the formation or laying out of means 

of access to a road or the laying out of means 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; 

(h) “industrial estate” means any site selected by the State Government, 

where the Corporation builds factories and other buildings and makes them 
available for any industries or class of industries; 

(i) “means of access” includes a road or any means of access, whether private 

or public, for vehicles or for foot passengers; 

(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 fitting 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; 

(1) the expression “land” and the expression “person interested”, shall have 

the meanings respectively assigned to them in section 3 of the Land1 of 

Acquisition Act, 1894. 1894.



[1962 : Mah. IIT Maharashtra Industrial 3 
Development Act, 1961 

CHAPTER IL 

EsTaBLISHMENT AND  CONSTITUTION OF THE CORPORATION. 

3. (1) For the purposes of securing and assisting in the rapid and orderly Establish- 
establishment and organisation of industries in industrial areas and industrial ment and 

estates in the State of Maharashtra, there shall be established by the State incorpo- 

Government by notification in the Official Gazette, a Corporation by the name taton- 
of the Maharashtra Industrial Development Corporation. 

(2) The said 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 purposes of this Act. 

Mah. '[4. With effect from the date of commencement of the Maharashtra Industrial Constitu- 
XLIV Development (Amendment) Act, 1981, in place of the existing members, the tion. 
of18L Corporation shall consist of the following members, that is to say-- 

(@) the Minister for Industries, ex-officio, who shall also be the Chairman 

of the Corporation; 

(b) the Minister of State for Industries, ex-officio, who shall also be the 

Vice-Chairman of the Corporation; 

(c) two official members nominated by the State Government, of whom 
one shall be the Financial Adviser to the Corporation; 

LIV (d) the Chairman of the State Electricity Board constituted under the 
o8 Electricity (Supply) Act, 1948; 

(e) the Managing Director, State Industrial and Investment Corporation 
of Maharashtra Limited; 

(f) the Managing Director, Maharashtra State Financial Corporation; 

(g) one member nominated by the Maharashtra Housing and Area 
Mah.  Development Authority established under the Maharashtra Housing and Area 

XML Development Act, 1976; 

(h) six members nominated by the State Government, from amongst 
persons appearing to it to be qualified as having had experience of, and having 

shown capacity in, industry, trade or finance, or who are in the opinion of the 

State Government capable of representing the interest of persons engaged 

or employed therein; 

(i) the Chief Executive Officer of the Corporation, ex-officio, who shall also 
be the Secretary of the Corporation.] 

5. A person shall be disqualified for being nominated as a member of the Disqualifi- 
Corporation, if he— eation for 

member- 

(a) is an employee of the Corporation, not being the Chief Executive Officer, or ship. 

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

(c) is an undischarged insolvent. 

1. Section 4 was substituted for the original section by Mah. 44 of 1981, s. 4.



4 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

Term of 6. [ (1) (@) Every member of the Corporation nominated under clause (e) or () 
office and of section 4 shall hold office for a period of three years from the date of his 

o fcs‘:l‘g:z‘e‘"fi nomination, unless his termof office is terminated earlier by the State Government. 

members. (b) Where a vacancy of any such member occurs due to completion of his 
term of office or due to termination of his term of office earlier, the vacancy 
shall be filled in accordance with the provisions of section 9.]. 

(2) The members of the Corporation nominated under [ clause (¢c) or ()] 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 one or more of the members for extra or 
special services required to be rendered by him or them. 

(3) The members of the Corporation °[ holding office under “[ clause (d), (e), 
(), (g) or (k)] of section 4] shall be entitled to draw such honorarium or 
compensatory allowance for the purpose of meeting the personal expenditure 
in attending the meeting of the Corporation or of any Committee hereunder or 
appointed in connection with the work undertaken by or for the Corporation, as 
may be prescribed. 

(4) Any person nominated as member on one or more occasions shall, unless 
disqualified, be eligible for renomination. 

5[ (5) Where a person is nominated or becomes a member of the Corporation 
by virtue of holding any office, he shall, notwithstanding anything contained in 
this Act, cease to be a member of the Corporation as soon as he ceases to hold 
that office.] 

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

(2) A member, who is directly or indirectly concerned or interested in any 
contract, loan, arrangement or proposal 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 interests to the Corporation, and shall not be present 
at any meeting of the Corporation when any such contract, loan, arrangement 
or proposal is discussed, unless his presence is required by the other members 
for the purpose of eliciting information, but no member so required to be present 
shall vote on any such contract, loan, arrangement or proposal : 

Provided that, a member shall not be deemed to be concerned or interested 
as aforesaid by reason only of his being a shareholder of a company concerned 
in any such contract, loan, arrangement or proposal. 

Cessation 8. (1) If a member-- 

of member- (a) becomes subject to any of the disqualifications mentioned in section 5, or 
ship. 

? (b) tenders his resignation in writing to, and such resignation is accepted 
by, the State Government, or 

1. Sub-section (1) was substituted by Mah. 44 of 1981, s. 3 (a). 
2. These words, brackets and letters were substituted for the words, brackets and letters 

“clause (a) or (g) of sub-section (1)", ibid., s. 3 (b). 
3. This portion was substituted for the words, brackets and letters “nominated under 

clause (b). (c) or (d)” by Mah. 18 of 1975, s. 4 (c). 
4. These words, brackets and letters were substituted for the words, brackets and letters 

“clause (b), (¢), (d), (e) or (f), of sub-section (1)” by Mah. 44 of 1981, s. 3 (c). 
5. Sub-section (5) was added by Mah. 18 0f 1975, s. 4 (d). 



[1962 : Mah. IIT Maharashtra Industrial 5 
Development Act, 1961 

(c) is absent without the Corporation’s permission from the 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 member 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 member 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 member 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 member : 

Provided that, a member shall not be suspended or removed from office unless 

he has been given reasonable opportunity to show cause against the order. 

9. Any vacancy of a member of the Corporation shall be filled as early as Vacancies 

practicable, in like manner as if the appointment were being made originally : ‘f}“l’l‘;’d“’ be 

Provided that, during any such vacancy the continuing members may act as 

ifno vacancy had occurred. 

1[10. (1) In the absence of the Chairman, the Vice-Chairman shall be Temporary 

competent to carry out the duties and functions of the Chairman. ::::E: g 

(2) If the Vice-Chairman or any other member of the Corporation is by reason 
of illness or otherwise rendered temporarily incapable of carrying out his duties 
oris granted leave of absence by the State Government, or is otherwise unable to 
attend to his duties, in circumstances not involving the cessation of his 
membership, the State Government may appoint another person to act for him 
as the Vice-Chairman or other member, as the case may be, and to carry out his 
duties and functions by or under this Act. Such person shall vacate office on the 
date when the Vice-Chairman or other member, as the case may be, resumes his 
duties.] 

11. Nodisqualification of, or defect in the appointment of any person acting Proceeding 
as the Chairman or Vice-Chairman or a member of the Corporation, shall vitiate Presumed 

| bt o © be good 
any act or proceeding of the Corporation, if such act or proceeding is otherwise and valid. 

in accordance with the provisions of this Act. 

12. (1) The State Government shall appoint a Chief Executive Officer, ?[ one Officers and 
or more Deputy Chief Executive Officers ] and a Chief Accounts Officer of the Z‘:;V/an“ of 

Corporation 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. Section 10 was substituted for the original section by Mah. 44 of 1981, s. 4. 
2. These words were inserted by Mah. 18 of 1975, 5. 5 (a).



Corporation 
to absorb 

certain staf 

and to 
assume 

obligations 
of State 
Govern- 

ment in 
respect of 
matters to 

which this 
Act applies. 

6 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

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

(a) as regards the Chief Executive Officer, '[the Deputy Chief Executive 
Officer or Officers] 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 made under this Act. 

13. (1) The Corporation shall take over and employ such of the existing staff 
T serving for the purposes of the Board of Industrial Development constituted by 
Government Resolution in the Industries and Labour Department, No. IDL. 
2360/140755-IND-I, dated the 1st October 1960, as the State Government may 
direct, and every person so taken over and employed shall be subject to the 
provisions of this Act and the rules and regulations made thereunder : 

Provided-- 

(@) that, during the period of such employment all matters relating to the 
pay, leave, retirement, allowances, pensions, provident fund and other 
conditions of service of the members of the said staff shall be regulated by 
the Bombay Civil Services Rules or such other rules as may from time to 
time be made by the State Government; 

(b) that, any such member shall have a right of appeal to the State 

Government against any order of reduction, dismissal or removal from service, 

fine or any other punishment. 

(2) All permanent servants of the said staff taken over and employed by the 
Corporation under sub-section (1) shall have a lien on their posts in the service 
of the State Government, and the period of their service under the Corporation 
shall on their reversion to the service of the State Government, be counted for 
their increments, pension and other matters relating to their service 

(3) All obligations incurred, all contracts entered into and all matters and 

things engaged to be done, before the first constitution of the Corporation, by, 

with or for the State Government or the Board of Industrial Development 

aforesaid for any of the purposes of this Act, in respect of any schemes for the 

development of industrial estates or industrial areas entrusted to the 

Corporation, shall be deemed to have been incurred, entered into or engaged to 

be done by, with or for the Corporation; and accordingly all suits or other legal 

proceedings instituted or which might have been instituted by or against the 

State Government or the Board of Industrial Development, as the case may be, 

may be continued or instituted by or against the Corporation 

(4) All expenditure which the Board of Industrial Development may have 
incurred before the date of the coming into force of this Act in connection with 

any of the purposes of this Act shall be deemed to be a loan advanced to the 
Corporation under section 21 on that date, and all assets acquired by such 

expenditure shall vest in the Corporation : 

1. These words were inserted, by Mah. 18 of 1975, s. 5 (b). 



[1962 : Mah. IIT Maharashtra Industrial 7 
Development Act, 1961 

1[ Provided that, where any capital receipts have been recovered by the Board 

in the course of its dealings with such assets, the amount of such receipts shall 
be excluded from the amount to be treated as a loan to the Board under this 
sub-section. | 

CHAPTER IIL 

FuNCTIONS AND POWERS OF THE CORPORATION. 

14. 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 Maharashtra, and 

(ii) in particular, and without prejudice to the generality of clause (1), to-- 

(@) establish and manage industrial estates at places 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; 

2% * * e e e e e 

(d) undertake schemes or works, either jointly with other corporate bodies 

or institution, 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. 

15. Subject to the provisions of this Act, the Corporation shall have power— General 
powers of 

(@) to acquire and hold such property, both movable and immovable as the },he 
Corporation may deem necessary for the performance of any of its activities, Corporation. 

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 

industrial estate and industrial areas and construct and maintain or cause 
to be maintained works and buildings therefor; 

(d) to make available buildings on hire or sale to industrialists or persons 
intending to start industrial undertakings; 

(e) to construct buildings for the housing of the employees of such industries; 

(P (i) to allot factory sheds or such buildings or parts of buildings, including 
residential tenements to suitable persons in the industrial estates established 
or developed 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; 

1. This proviso was added by Mah. 18 of 1975, 5. 6. 
2. Clause (c) was deleted, ibid., s. 7. 



8 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

(g) to constitute advisory committee to advise the Corporation; 

(h) to engage suitable consultants or persons having special knowledge or 
skill to assist the Corporation in the performance of its functions ; 

(i) subject to the previous permission of the State Government, 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; 

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

(%) to do such other things and perform such acts as it may think necessary 
or expedient for the proper conduct of its functions, and the carrying into 

effect the purposes of this Act. 

Authentica-  16.  All permissions, orders, decisions, notices and other documents of the 
omeg‘";‘f({ Corporation shall be authenticated by the signature of the Chief Executive Officer 
documents of the Corporation or any other Officer authorised by the Corporation in this 

of Corb- hehalf, 
oration. 

levsogf;";g 7. Notwithstanding anything contained in any contract or in any law for 
“charges. the time being in force, it shall be lawful for the Corporation to levy fees or 

service charges to cover its expenses on maintenance of roads, drainage, water- 
supply and such other services and amenities as may be provided by it, including 
provision of street lighting, at such rates as may be prescribed, from time to 

time. Such fees or charges may be levied on the plot holders or other persons 

receiving benefit of the services or amenities. 

by the 18. The State Government may issue to the Corporation such general or 

State Gov- special directions as to policy as it may think necessary or expedient for the 

ernment. purpose of carrying out the purposes of this Act, and the Corporation shall be 
bound to follow and act upon such directions. 

Directions 

CHAPTER IV. 

FINANCE, ACCOUNTS AND AUDIT. 

‘:F‘ligl“‘;“)r: 19. All property, fund and other assets vesting in the Corporation shall be 
ton assets. held and applied by it, subject to the provisions and for the purposes of this Act. 

%“’mf';‘;‘;‘:is 20. (1) The Corporation shall have and maintain its own fund, to which 
" shall be credited-- 

(@) all monies received by the Corporation from the State Government by 
way of grants, subvention, loans, advances or otherwise; 

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

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

(d) all monies received by the Corporation by way of rents and profits or in 

any other manner or from any other source. 

1. Section 17 was substituted for the Original by Mah. 18 of 1975, s. 8.



[1962 : Mah. IIT Maharashtra Industrial 9 
Development Act, 1961 

(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 State Government. 

(3) Such accounts shall be operated upon by such officers of the Corporation 
as may be authorised by it by regulations made in this behalf. 

1[(4) Notwithstanding anything contained in sub-sections (2) and (3), the 
Corporation may keep on hand such sum as it thinks fit for its day to day 

transactions, subject to such limits and conditions as may be prescribed.] 

21. The State Government may, after due appropriation made by the State Grants, 
Legislature by law in this behalf, make such grants, subvention, loans and subventions, 
advances to the Corporation as it may deem necessary for the performance of :f\f‘;:e“sdm 
the functions of the Corporation under this Act; and all grants, subventions, the Corpo- 
loans and advances made shall be on such terms and conditions as the State ration. 
Government may after consulting the Corporation determine. 

2[22. °[ (1) Subject to such conditions as may be prescribed, the Corporation Power of 
may, for the purpose of providing itself with adequate resources, borrow money S)OE::::O“ 
in the open market by issue of guaranteed or unguaranteed bonds, debentures, : 
stocks or otherwise, or borrow money from any scheduled banks, or from such 
other banks or financial institutions as are approved, from time to time, by the 
State Government in this behalf] 

(2) The maximum amount which the Corporation may at any time have on 

loan under sub-section (1) shall be rupees seventy-five crores, unless the State 

Government with the approval of the State Legislative Assembly, by notification 

in the Official Gazette, fixes a higher maximum amount for this purpose.] 

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

24. (1) The Corporation shall make provision for such reserve and other Reserve 
specially denominated funds as the State Government may, from time to time, ?::lldg"he' 
direct. o 

(2) The management of the funds referred to in sub-section (1), the sums to 

be 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. 

1. Sub-section (4) was added, by Mah. 18 of 1975, s. 9. 

2. Section 22 was substituted for the Original by Mah. 18 of 1975, s. 10. 
3. Sub-section (1) was substituted by Mah. 57 of 1981, s. 2 with retrospective effect from the 1st 

April 1976. 



10 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

Expendi-  25. (1) The Corporation shall have the authority to spend such sums as it 
‘“ref::;': thinks fit for the purposes authorised under this Act from out of the general 

" fund of the Corporation referred to in section 20 or from the reserve and other 

funds referred to in section 24, 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 

Budget and  26. (1) The Corporation shall, by such date in each year as may be prescribed, 
programme prepare and submit to the State Government for approval an annual financial 

of work- statement and the programme of work for the succeeding financial year. 

(2) The annual financial statement shall show the estimated receipts and 

expenditure during the succeeding financial year in such form and detail as 
may be prescribed. 

(3) 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, shall be placed before 

each House of the State Legislature as soon as may be after their receipt by the 

State Government. 

Accounts 27, (1) The Corporation shall maintain books of account and other books in 
and audit. yojation to its business and transactions in such form, and in such manner, as 

may be prescribed. 

1[ (2) The accounts of the Corporation shall be audited by the auditor appointed LVI 
in accordance with the provisions of sub-section (3) of section 19 of the ‘1971 

Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) . 
Act, 1971 or by any other auditor appointed by the State Government.] 

(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 each House of the State Legislature. 

Concurrent 28, (1) Notwithstanding anything contained in the last preceding section, 

““da:gf:'z}. the State Government may order that there shall be concurrent audit of the 
accounts. accounts of the Corporation by such person as it thinks fit. The State Government 

may also direct a special audit to be made by such person as it thinks fit of the 

accounts of the Corporation relating to any particular transaction or class or 

series of transactions or to a particular period 

1. Sub-section (2) was substituted, by Mah. 57 of 1981, s. 3. 



Bom. 
1 of 

1956. 

Bom. 
LVIT 

of 

[1962 : Mah. IIT Maharashtra Industrial 11 
Development Act, 1961 

(2) 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. 

CHAPTER V. 

APPLICATION OF GOVERNMENT PREMISES (EVICTION) AcT, AND NON-APPLICATION OF 

RENT CONTROL AcTs T0 CORPORATION PREMISES. 

29. (1) The State Government may, by notification in the Official Gazette, 
provide from such date as is stated therein that the Bombay Government 

or leased by, the Corporation as that Act applies in relation to Government 
premises, but subject to the provisions of sub-section (2) 

(2) On anotification being issued under sub-section (1), the aforesaid Act and 

the rules made thereunder shall apply to premises of the Corporation with the 

following modifications, that is to say-- 

(@) the State Government shall appoint an officer who is holding or has 
held office whether under the Government or the Corporation, which in the 
opinion of the State Government is not lower in rank than that of a Deputy 
Collector or an Executive Engineer, to be the competent authority for the 
purposes of the aforesaid Act ?[ and one or more officers may be appointed as 
competent authorities for different areas or for the same area I; 

(b) references to “Government premises” in that Act and those rules shall 

be deemed to be references to premises of the Corporation, and references to 

“the State Government” in sections 4, 5, 6 and 9 shall be deemed to be 

references to the Corporation. 

30. The Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, Naw, 
see the Maharashtra Rent Contrale Act, 1999 (Mah. 18 of 200). any other law 

Application 
of Bombay 
Government 

" Premises (Eviction) Act, 1955, shall apply to premises belonging to, vesting in, pypises 

(Bviction 
Act, 1955 to 

Corporation 
premises. 

Non-appli- 
cation of 
Rents on 

1947. corresponding thereto for the time being in force in any part of the oyt 
State — 

(a) shall not apply to any premises belonging to or vesting in the Corporation 

under or for the purposes of this Act; 

(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 

1. The Short title ofhas Act, was amended as “ the Maharashtra Government premises (EVicton) 
Act” by Mah. 24 of 2012 Sch. Entry 59, w. e. of 1st May 1960. 

2. Thes words were insenrted by Mah. 18 of 1975. s. 11. 

Acts to 

Corporation 
premises.



12 Maharashitra Industrial [1962 : Mah. III 
Development Act, 1961 

CHAPTER VI.** 
AcquisiTioN AND DisposaL oF LanD. 

Application.  31. The provisions of this Chapter shall apply to such areas from such dates 
as have been notified by the State Government under sub-section (3) of section 1. 

Compulsory  32. (1) If, at any time in the opinion of the State Government, any land is 
acquisition. required for the purpose of development by the Corporation, or for any other 

purpose in furtherance of the objects of this Act, State Government may acquire 
such land by publishing in the Official Gazette anotice specifying the particular 
purpose for which such land is required, and stating therein that the State 
Government has decided to acquire the land in pursuance of this section. 

(2) Before publishing a notice under sub-section (1), the State Government 
shall by another notice call upon the owner of the land and any other person 
who in the opinion of the State Government may be interested therein, to show 
cause, within such time as may be specified in the notice, why the land should 
not be acquired. [ The State (govemment shall also cause public notice to be 
given in the manner laid down in section 53 and in the Official Gazette ] : 

1. Section 7 of Mah. 11 of 1967, reads as under :-- 

Right to *7- (1) In case in which the Collector has determined the amount of compensation to be paid for 
claim acquisition of any land under Chapter VI of the principal Act, before the 8th day of June 1967, 

difference notwithstanding that no appeal against such decision of the Collector is made under section 34 of 
in com- that Act or that, any such appeal has been made and disposed of, any person considering himself 

pensation aggrieved by such decision of the Collector or the decision of the Court in appeal may, within a 
and period of one year from the said date, apply to the Collector for a review of his case and to refix the 

validation »mount of compensation, and claim the difference (if any) between the amount of compensation 
of certain 4y determined by the Collector or the Court, as the case may be, and the amount which may 

A ons, be arrived at by following the provisions of sub-section (5) of section 33 of the principal Act as 
* amended by this Act. If any appeal against such decision of the Collector is pending before any 

Court on the said date, the Court may either itself determine the amount of compensation by 
following the provisions of sub-section (5) of the said section 33 as amended by this Act or remand 
the case to the Collector for review and refixing the amount accordingly. In either case, the party 
concerned shallbe entitled to claim the difference (ifany)as aforesaid. Every decision of the Collector 
on review under this section shall be subject to an appeal under section 34 of the principal Act. 

(2) No acquisition of land made or purporting to have been made under the said Chapter VI before 
the said date, and no action taken or thing done (including any notice issued or published, agreement 
reached, order made or decision given) in connection with such acquisition shall be deemed to be 
invalid or ever to have become invalid merely on the ground that the amount of compensation was not 
determinable under sub-section (5) of the said section 33 as amended by this Act. 

(3) Nothing in this section shall apply where the compensation has been determined by agreement 
under sub-section (2) of section 33 of the principal Act.”. 

2. Section 3 of Mah. 45 of 1971 reads as under - 

Acquisition  “3. No acquisition of land made, or purporting to have been made, under Chapter VI of the 
proceedings principal Act, or by consent or agreement between the parties, before the commencement of this ot invalid ’ e b 1 merely on Act, no acquisition proceedings taken under the said Chapter and pending at any stage at the 
the ground Commencement of this Act, and no action taken or thing done (including any notice issued, served 
of.non-pub- or published, agreement reached compromise recorded, order made or decision given) in connection 

lication in _ . e io . . A " the Offieiql With such acquisition or acquisition proceedings, shall be deemed to the invalid or ever to have 
Gazetie ofa become invalid merely on the ground that the notice (if any) issued in that ease under sub-section 
notice under (2) of section 32 of the principal Act at any time before the 8th day of June 1976 was not published 
Sestion 32 in the Oficial Gazette, but was served in the manner laid down in section 52 of that Act.”. 
before 8th 

June 1967, 
if served in 
accordance 

with section 
52. 

3. This portion was added by Mah. 11 of 1967, 5. 2 (a).



Bom. 
I of 
1959. 

Mah. 
Vof 

1962. 

[1962 : Mah. IIT Maharashtra Industrial 13 
Development Act, 1961 

‘[ Provided that, if the land proposed to be acquired falls within a Scheduled 
Area then the State Government shall before such acquisition consult,— 

(i) the Gram Sabha and the Panchayat concerned if the land is falling 
within the area of one Panchayat ; 

(ii) the concerned Gram Sabhas and the Panchayat Samitee if the land is 
falling within the area of more than one Panchayats in the Block concerned; 

(iii) the concerned Gram Sabhas and the Zilla Parishad if the land is 
falling within the area of more than one Block in the district concerned; 

such consultation shall be carried out in the manner as may be laid down by 
the State Government by issuing a general or special order in this behalf : 

Provided that the decision taken by the majority of the Gram Sabhas 
concerned by passing a resolution in above matters shall be binding on the 

concerned Panchayat Samitee or the Zilla Parishad as the case may be 

Explanation.—For the purposes of these provisos,— 

(i) the expressions “Gram Sabha” or “Panchayat” and “Scheduled Areas” 
shall have meanings, respectively, assigned to them in the Bombay Village 

Panchayats Act, 1958; 

(ii) the expressions “Panchayat Samitee” and “Zilla Parishad” shall have 
the meanings, respectively, assigned to them in the Maharashtra Zilla 
Parishads and Panchayat Samitis Act, 1961.] 

(3) After considering the cause, if any, shown by the owner of the land and by 
any other person interested therein and after giving such owner and person an 
opportunity of being heard, the State Government may pass such orders as it 
deems fit. 

(4) When a notice under sub-section (1) is published in the Official Gazette 
the land shall on and from the date of such publication vest absolutely in the 

State Government free from all encumbrances : 
[ Provided that if before actual possession of such land is taken by or on 

behalf of the State Government, it appears for the State Government that the 
land is no more required for the purposes of this Act, the State Government 

may, by like notice, withdraw the land from acquisition and on the publication 
of such notice in the Official Gazette, the land shall revest with retrospective 

effect in the person in whom it was vesting immediately before the publication 
of the notice under sub-section (1), subject to such encumbrances, if any, as 
may be subsisting at that time. The owner and other persons interested shall 
be entitled to compensation for the damage, if any, suffered by them in 
consequence of the acquisition proceedings as determined in accordance with 

the provisions of section 33. ] 

(5) Where any land is vested in the State Government under sub-section (4), 
the State Government may by notice in writing, order any person who may be 
in possession of the land to surrender or deliver possession thereof to the State 

Government or any person duly authorised by it in this behalf within thirty 
days of the service of the notice. 

1. This proviso was added by Mah. 46 of 1997, s. 11. 
2. The short title of this Act, was amended as } the Maharashtra village Panchey B Act” in Mas 

24 0f 2012, Sch. entry 74, w. e. f. 1st May 1960. 
3. This proviso was added by Mah. 18 of 1975, 5. 12 (a). 



Compensa- 
tion. 

14 Maharashitra Industrial [1962 : Mah. III 
Development Act, 1961 

(6) If any person refuses or fails to comply with an order made under sub- 
section (5), the State Government may take possession of the land, and may for 

that purpose use such force as may be necessary. 

1[(7) Where the land has been acquired for the Corporation or any local 
authority, the State Government shall, after it has taken possession thereof, by 

notification published in the Official Gazette, transfer the land to the Corporation 

or that local authority, as the case may be, for the purpose for which it was acquired, 

and the provisions of section 43-1A shall apply to any land so transferred.] 

33. (1) Where any land is acquired by the State Government under this 

Chapter, the State Government shall pay for such acquisition compensation 

the amount of which shall be determined in accordance with the provisions of 

this section 

(2) Where the amount of compensation has been determined by agreement 
between the State Government and the person to be compensated, it shall be 

determined in accordance with such agreement. 

(3) Where no such agreement can be reached, the State Government shall 
refer the case to Collector for determination of the amount of compensation to 
be paid for such acquisition as also the person or persons to whom such 
compensation shall be paid 

[ Provided that, no compensation exceeding such amount as the State 
Government may by general order specify, to be paid for such acquisition shall 
be determined by the Collector without the previous approval of the State 
Government or such officer as the State Government may appoint in this behalf. ] 

[ (3A) Notwithstanding anything contained in sub-section (3), if after the case 
is referred to the Collector under that sub-section but before he has finally 
determined the amount of compensation, such amount is determined by agreement 
between the State Government and the person to be compensated, the compensation 
shall be determined by the Collector in accordance with such agreement.] 

(4) Before finally determining the amount of compensation, the Collector shall 
give an opportunity to every person to be compensated to state his case as to 

the amount of compensation. 

[ (5) In determining the amount of compensation, the Collector shall be guided 

by the provisions contained in sections 23 and 24 and other relevant provisions 
1 of of the Land Acquisition Act, 1894, subject to the modifications that the references 

1894. in the said sections 23 and 24 to the date of the publication of the notification 
under section 4, sub-section (1), were references to the date °[ of the service or 
publication of the notice under sub-section (2) of section 32 of this Act in the 
manner for the time being laid down under this Act ], and the references to the 

time or date of the publication of the declaration under section 6 were references 

to the date of the publication of the notice under sub-section (1) of section 32 of 

this Act in the Official Gazette.] 

1. Sub-section (7) was substituted for the original, by Mah. 18 of 1975, s. 12 (b). 

2. This proviso was added by Mah. 32 of 1967, s (2). 
3. Sub-section (34) was inserted by Mah. 18 of 1975, s. 13. 
4. Sub-section (5) was deemed always to have been substituted by Mah. 11 of 1967. s. 3. 
5. These words were deemed always to have been substituted by Mah. 45 of 1971, s 2 (a). 



[1962 : Mah. IIT Maharashtra Industrial 15 
Development Act, 1961 

[ Explanation.--For the purposes of this sub-section the date of the service 
of anotice under sub-section (2) of section 32 of this Act shall before the 8th day 
of June 1967 mean the date on which the notice is served in the manner laid 
down in section 52 of this Act; and on and after the 8th day of June 1967 the 

date of the publication of a notice under the said sub-section (2) of section 32 
shall be the date on which the notice is published in the Official Gazette.] 

(6) For the purpose of determining the amount of compensation— 

(@) the Collector shall have power to require any person to deliver to him 

such returns and assessments as he considers necessary; 

(b) the Collector shall also have power to require any person known or 
believed to be interested in the land to deliver to him a statement containing, 
as far as may be practicable, the name of every other person having any 

interest in the land as co-owner, mortgagee, tenant, or otherwise, and the 
nature of such interest, and of the rents and profits (if any) received or 
receivable on account thereof for three years next proceeding the date of the 

statement. 

xLv  (7) Every person required to deliver a return, assessment or statement under 
of sub-section (6) shall be deemed to be legally bound to do so within the meaning 

1860- of section 175 and section 176 of the Indian Penal Code. 

(8) The Collector may hear expert witnesses if it be necessary to do so in any 
particular case. 

(9) The Collector or any officer authorised by himin this behalf shall be entitled 
to enter on and inspect any land which is subject to proceedings before him. 

(10) The Collector shall dispose of every case referred to him under sub- 
section (3) for determination of compensation as expeditiously as possible and 

in any case within such time as may be prescribed by rules. 

(11) The Collector shall determine the amount or cost incurred in any case 

disposed of by him under the section, and by what persons and in what 
proportions they are to be paid. 

[ (12) Where any case is referred to any Collector under sub-section (3), the 
State Government may, at any stage, by order in writing and for reasons to be 
recorded therein, transfer it to any other Collector, and upon such transfer, 

unless some special directions are given in the order, the Collector to whom the 
case is transferred may hear and dispose of the case from the stage at which it 

was transferred or the case may be heard and disposed of by him de novo.] 

Tof  34. ’[(1) Any person aggrieved by the decision of the Collector determining Appeal to 

18%4. the amount of compensation may, within sixty days from the date of such Court- 

decision, in so far as it affects him, by written application to the Collector require 
that the matter be referred by him for determination of the Court as defined in 

the Land Acquisition Act, 1894, in its application to the State of Maharashtra, 
and when any such application is made the provisions of Part III of the said Act 
shall mutatis mutandis apply to further proceedings in respect thereof.] 

1. This Explanation was deemed always to have been added on 8th June 1967, by Mah. 45 of 
1971, s. 2 (b). 

2.Sub-section (12) was added by Mah. 25 of 1977, s. 2. 
3. Sub-section (1) was substituted for the original by Mah. 18 of 1975, s. 14 (a. 



16 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

(2) The decision of the Court '[on such referencel, and subject only to such 
decision, the decision of the Collector determining the amount of the 
compensation, shall be final. 

Disputesas 35, When the amount of compensation has been settled under section 33, if 
:" "PP"‘L" any dispute arises as to the apportionment of the same or any part thereof, or 
onment: a5 to the persons to whom the same or any part thereof is payable, the Collector 

may refer such dispute for the decision of the Court. 

Paymentof  36. (1) Where the amount of compensation is determined by agreement, the 
compensa- Tyigtrict Government shall pay such amount to the person or persons entitled thereto. 

(2) Where the amount of compensation is determined by the Collector under 
provisions of section 33, the State Government shall tender payment of the 
compensation determined to the persons entitled thereto according to such 
determination and shall pay to them unless prevented by some one or more of 
the contingencies mention hed in sub-section (3) 

(3) If the persons entitled to compensation according to the decision of the 
Collector do not consent to receive it, or if there be no person competent to 
alienate the land or if there be any disputes as to the title to receive the 

compensation, the State Government shall deposit the amount of the 

compensation so determined in the Court : 

Provided that, any person admitted to be interested may received such 
payment under protest as to the sufficiency of the amount of compensation : 

Provided further that, nothing herein contained shall after the liability of any 
person, who may receive the whole or any part of any compensation determined 
under this Chapter, to pay the same to the person lawfully entitled thereto. 

Investnent 37, Where any amount of compensation has been deposited in Court under 
dz;:;‘xl"“; the last preceding section, the Court may either of its own motion or on the 

Court, appllcatlon made by or on behalf of any party interested or claiming to be interested 
in such amount, order the same to be invested in such Government or other 
securities approved by the State Government as it may think proper, and may 

direct the interest or other proceeds of any such investment to be accumulated 

and paid in such manner as will, in its opinion, give the parties interested therein 
the same benefit therefrom as they might have had from the land in respect 
whereof such amount has been deposited or as near thereto as may be. 

Paymentof 38, When the amount of such compensation is not paid or deposited on or 

interest. hefore taking possession of the land, the State Government shall pay the amount 

of compensation determined with interest thereon at the rate of four per cent 
per annum from the time of so taking possession until it shall have been so paid 
or deposited. 

hli‘spgs“:lf; 39. (1) Subject(to any di(‘ections given by the State Government under this 

Cm;m‘_ Act, the Corporation may dispose of— 

tion. (@) any land acquired by the State Government and transferred to it, 

without undertaking or carrying out any development thereon; or 

(b) any such land after undertaking or carrying out such development as it 
thinks fit, 

1. These words were substituted for the words “on such appeal” by Mah. 18 of 1977, s. 14 (b) 



[1962 : Mah. IIT Maharashtra Industrial 17 
Development Act, 1961 

to such persons in such manner and subject to such terms and conditions, as it 
considers expedient for securing the purposes of this Act. 

(2) The powers of the Corporation with respect to the disposal of land under 

sub-section (1) shall be so exercised as to secure, so far as practicable, that— 

(@) where the Corporation proposes to dispose of by sale any such land 
without any development having been undertaken or carried out thereon, 

the Corporation shall offer the land in the first instance to the persons from 
whom it was acquired, if they desire to purchase it, subject to such 

requirements as to its development and use as the Corporation may thinks 
fit to impose; 

(b) persons who are residing or carrying on business or other activities on 

any such land shall, if they desire to obtain accommodation on land belonging 
to the Corporation and are willing to comply with any requirements of the 

Corporation as to its development and use, have an opportunity to obtain 

thereon accommodation suitable to their reasonable requirements on terms 
settled with due regard to the price at which any such land has been acquired 

from them. 

(3) Nothing in this Act shall be construed as enabling the Corporation to 
dispose of land by way of gift, mortgage or charge, but subject as aforesaid 

reference in this Act to the disposal of land shall be construed as reference to 
the disposal thereof in any manner, by way of sale, exchange or lease or by the 

creation of any easement, right or privilege or otherwise. 

40. [ Government lands. | Deleted by Mah. 11 0f 1967, s. 4. 

41. [Right of land owner to compel Corporation to acquire his interest. | 
Deleted by Mah. 11 of 1967, s. 4. 

42. The State Government may if it thinks fit delegate any of its powers Delegation 
under this Chapter to any of its officers by rules made in this behalf. zfié)"s‘;’:t‘: of 

[ CHAPTER VI-A. Government. 

UNuTILISED SURPLUS LANDS IN INDUSTRIAL AREAS. 

42A. (1) With a view to ascertaining whether any industrial area developed Acquisition 

by the Corporation has been fully utilised for industrial purposes or not, the ;fl;fiz‘tfis 
State Government may direct the Corporation to submit to it a six-monthly in industrial 

L g o 7 aroasand 
report containing the following information in respect of such area, namely : e o 

(@) the total number of plots and the area of each plot in the industrial area; o'{:‘;ri . 

(b) the number of plots allotted to the plot holders and the number of plots eustres 
still in possession of the Corporation; 

(c) the date on which possession of each plot was delivered to the plot 

holder, the period for which the plot is allotted and the premium or rent paid 
or payable by the plot holder; 

(d) unutilised buildable area in each plot, having due regard to the building 
regulations of the Corporation or the local authority concerned within whose 

jurisdiction the industrial area is situated; 

1. Chapter VI-A was inserted by Mah. 18 of 1975, s. 15.



18 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

(e) how much unutilised area of each plot is capable of sub-division and 

whether the unutilised area can be utilised for accommodating another 

industry, after sub-division; 

(f) the period for which the area of any plot (whether whole or part) 
remained unutilised from the date of delivery of possession to the plot holder 

and the reasons therefor as stated by the plot holder. 

(2) Upon receipt of such directions, the Corporation shall issue notices to the 
plot holders in the industrial area calling upon them to furnish to it the 

information in the prescribed form and when so called upon each plot holder 
shall be bound to furnish true and correct information required within one month 

from the date of receipt of such notice by him. 

(3) For the purpose of enabling the Corporation to determine whether there 
is any unutilised portion of any plot in the industrial area and whether such 

portion is capable of sub-division so as to make it useful for accommodating any 
other industry after sub-division, it shall be lawful for any officer of the 

Corporation, either generally or specially authorised by it in this behalf, and for 

his servants and workmen, at all reasonable hours,— 

(i) toenter upon and survey the plot; 

(ii) to set out the boundaries of the unutilised portion of the plots; and 

(iii) to do all other acts necessary for the purposes aforesaid. 

(4) Ifupon the report submitted by the Corporation, the State Government is 
satisfied that any plot holder has not utilised the maximum buildable area of 
his plot for a period of five years or more from the date on which possession of 

the plot was delivered to him by the Corporation and the unutilised portion is 
capable of sub-division so as to make it useful for accommodating any other 

industry, the State Government may, notwithstanding anything contained in 
any contract or in any law for the time being in force before the expiry of such 
period from the date of receipt of such report as may be prescribed, issue to the 

plot holder and all other persons interested in the plot notices to show cause 
why such unutilised portion should not be acquired for the purpose of being 

utilised for accommodating another industry. The State Government shall also 
cause public notice to be given in the manner laid down is section 53 

(5) When any such notice is issued, the State Government shall give a 

reasonable opportunity of being heard to the plot holder and other persons 
interested in the plot and it shall be open to the plot holder or any other persons 

interested in the plot to appear and object to such acquisition on the ground 

that the unutilised portion is required by the plot holder himself for the purpose 
of immediate expansion of his own industry and that he has already taken 

effective steps for utilising such portion 

Explanation.—For the purposes of this sub-section, the expression “effective 
steps” shall mean the following steps, namely :-- 

(i) the plot holder has prepared the necessary project report in respect of 

the proposed expansion of his industry, indicating the requirements of such 
expansion; and



1951. 

[1962 : Mah. IIT Maharashtra Industrial 19 
Development Act, 1961 

(ii) (@) the plot holder has obtained whenever necessary letter of intent or 

industrial licence or registration from the Government of India as required 
under the Industries (Development and Regulation) Act, 1951; or 

(b) the plot holder has completed the negotiations with financial institutions 
for raising required finance and sixty per cent or more of the capital 

requirements for such expansion have been subscribed in the case of the 
company which has to go in for public issue where applicable; or 

(c) the plot holder has placed a firm order for purchase of at least 50 per 
cent or the plant and machinery required for the purpose of expansion. 

(6) If after giving a reasonable opportunity of being heard, the State 
Government is satisfied that the holder of the plot has failed to utilise or is not 

likely to utilise the unutilised portion for industrial purposes within a reasonable 
period, and such unutilised portion can be used for accommodating another 
industry, the State Government may, notwithstanding anything contained in 

any contract or in any law for the time being in force for the purpose of enabling 
the Corporation to properly discharge its functions of promoting rapid growth 

and development of industries by accommodating another industry on such 
unutilised portion, acquire the land of such portion by publishing in the Official 

Gazette anotice specifying the purpose for which the land is required, and stating 

therein, that the State Government had decided to acquire the land in pursuance 
of this section. When such a notice is published in the Official Gazette, the land 

shall, on and from the date of such publication, vest absolutely in the State 
Government, free from all encumbrances. 

(7) Where any land is vested in the State Government under the last preceding 

sub- section, the State Government may, by notice in writing, order any person 

who may be in possession of the land to surrender or deliver possession thereof 

to the State Government or any person duly authorised by it in this behalf 

within thirty days of the service of the notice. 

(8) If any person refuses or fails to comply with an order made under the last 
preceding sub-section, the State Government may take possession of the land, 
and may for that purpose use such force as may be necessary. 

(9) Where any land is acquired by the State Government under this section 
the State Government shall pay, for such acquisition an amount, which shall as 

far as possible be determined in accordance with the provisions of section 33, 

and the provisions of sections subsequent to section 33 in Chapter VI shall 
mutatis mutandis apply to further proceedings in respect of such amount : 

Provided that, the amount to be awarded and paid shall not in the case of a 
premium lease exceed the proportionate amount of premium paid by the plot 
holder or his predecessor-in-title claiming under the Corporation in respect of 

the land so acquired, with interest, thereon at six per cent per annum from the 

date of payment of the premium, and where the lease is a rental lease the amount 
to be awarded shall not exceed an amount equal to five times the net average 
yearly proportionate rent payable by the plot holder to the Corporation in respect 
of the land so acquired.]



20 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

CHAPTER VIL 

SUPPLEMENTARY AND MISCELLANEOUS PROVISIONS. 

1[43-1A. (1) For the furtherance of the objects of this Act, the State 
Government may [ by notification published in the Official Gazette,] upon such 
conditions as may be agreed upon between that Government 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 may be mutually agreed upon.] 

Powers of ~ 43. (1) If the Corporation after holding a local inquiry, or upon report from 
the any of its officers or other information in its possession, is satisfied that the 

C"‘g";“;:;“’;‘f owner of any land in an industrial area has failed to provide any amenity in 
certain Telation to the land which in the opinion of the Corporation ought to be provided 

defaults by or to carry out any development of the land for which permission has been 
and l"!f obtained under this Act, the Corporation may serve upon the owner a notice 

industrial requiring him to provide the amenity or carry out the development within such 
area. time as may be specified in the notice. 

(2) If any such amenity is not provided or any such development is not carried 
out within the time specified in the notice, then the Corporation may itself 
provide the amenity or carry out the development or have it provided or carried 
out through such agency as it deems fit : 

Provided that, before taking any action under this sub-section, the Corporation 
shall afford reasonable opportunity to the owner of the land to show cause as to 
why such action should not be taken. 

(3) 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 the expenses is made until payment, shall be recoverable by the 
Corporation from the owner. 

Orderof ~ 44. (1) Where the erection of any building in an industrial estate or industrial 
demolition area has been commenced, or is being carried on, or has been completed, or any 
of bulding. existing building is altered, in contravention of the terms on which such building 

or the land on which it stands is held or granted under this Act, any officer of 
the Corporation empowered by it in this behalf may, in addition to any 
prosecution that may be instituted under this Act, make an order 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 demolition shall be recoverable by the 
Corporation from the owner : 

1. Section 43-1A was inserted by Mah. 11 of 1967, s. 5. 
2. These words were inserted by Mah. 18 of 1975, s. 16. 

Govern- 
ment lands. 



[1962 : Mah. IIT Maharashtra Industrial 21 
Development Act, 1961 

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. 

45. (1) Where the erection of any building in an industrial estate or industrial Power to 
area has been commenced, or is being carried on, or has been completed, or any :‘L:’i*l’ in, 
existing building is altered, in contravention of the terms on which such building Opem,gm 
or the land on which it stands is held or granted under this Act, any officer of 
the Corporation empowered in this behalf may, in addition to any prosecution 
that may be instituted under 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. 

(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 which 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 claimable by any person for any damage or loss 
which he may sustain in consequence of any order made under this section. 

46. (1) Any person who whether at his own instance or at the instance of any Penalty for 

other person undertakes or carries out construction or alterations to any building construc- 
in an industrial estate or industrial area contrary to the terms under which he fi“?'];z; b} 
holds such building or land under this Act shall, on conviction, be punished pyldings 
with fine which may extend to ten thousand rupees, and in the case of a contrary to 

continuing contravention, with a further fine which may extend to five hundred terms of 
rupees for every day during which such offence continues after conviction for "*“"8" 
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



22 Maharashitra Industrial [1962 : Mah. III 
Development Act, 1961 

Powertolay  47. (I) (i) Within any area taken up for development under paragraph (b) of 
pipe ]"e‘“? clause (ii) of section 14, the Corporation, and 

) (ii) for the purposes of (@) carrying gas, water or electricity from a source 
of supply to, or () constructing any sewers or drains necessary for carrying 
off the workings and waste liquids of an industrial process through, any 
intervening area, any person empowered in this behalf by the State 
Government by notification in the Official Gazette (hereinafter in this section 
referred to as “the authorised person”), 

may lay down, place, maintain, alter, remove or repair any pipe, pipe lines, 
conduits, supply or service lines, posts or other appliances or apparatus in, on, 
under, over, along or across any land in such areas 

(2) The Corporation or the authorised person may at any time enter upon 
any land in any such area and in such event the provisions of section 48 shall 
mutatis mutandis apply. 

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

(i) where the land affected is a street, bridge, sewer, drain, or tunnel, comply Bom 
mutatis mutandis with the relevant provisions of the Gas Companies Act, 1322 
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. 

Full compensation to all persons interested for any damage sustained by them 
in consequence of the exercise of such power as aforesaid shall be paid, as the 
case may be, by the Corporation or, in the case of the authorised person, by the 
State Government. 

(4) Nothing herein shall authorise or empower the Corporation or the authorised 
person to lay down or place any pipe or other works into, through or against any 
building or in any land not dedicated to public use without the consent of the 
owners and occupiers thereof, except that the Corporation or such person may at 
any time enter upon and lay or place new pipe in the place of an existing pipe in 
any land wherein any pipe has been already lawfully laid down or placed in 
pursuance of this Act, and may repair or alter any pipe so laid down : 

Provided that, nothing in the aforesaid provision shall be construed to mean 
that the Corporation or other person is forbidden from having the said land 
acquired at any time by the State Government in the normal course. 

Powersof  48. Any officer of the State Government, any member of the Corporation, 
entry. and any person either generally or specially authorised by the Corporation in 

this behalf, may enter into or upon any land or building with or without assistants 
or workmen for the purpose of- 

(@) making any inspection, survey, measurement, valuation or enquiry or 
taking levels of such land or buildings; 

(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;



[1962 : Mah. IIT Maharashtra Industrial 23 
Development Act, 1961 

(f) doing any other thing necessary for the efficient administration of this Act : 

Provided that,— 

(i) no such entry shall be made except between the hours of sunrise and 
sunset and without giving reasonable notice to the occupier, or if there be no 
occupier, to the owner of the land or building ; 

(ii) sufficient opportunity shall in every instance be given to enable women 

(if any) to withdraw from such land or building ; 

(iii) due regard shall always be had, so far as may be compatible with the 

exigencies of the purpose for which the entry is made, to the social and 

religious usages of the occupants of the land or building entered. 

49. The State Government may, by notification in the Official Gazette, Officers of 
nominate any officer of the Corporation to be a controller or licensing authority the . 
under any law for the time being in force relating to the procurement or S;r\??;auon 
distribution of any commodity in respect of the industrial undertakings yested with 

established or to be established in the industrial estates or industrial areas other 
entrusted to or developed by the Corporation and no such nomination shall be Powers: 
called into question merely on the ground that such officer is not an officer of 
the State Government. 

50. Notwithstanding anything contained in any other law, or in any licence Overriding 
or permit, if the State Government is satisfied either on a recommendation powers of 
made in this behalf by the Corporation or otherwise, that the setting up of an &‘;::;mem 
industrial undertaking (whether within an industrial area or outside) is impeded directions to 
by a local authority’s refusal to grant, or by such authority’s insistence on local 

conditions which the State Government considers unreasonable for the grant “thorities. 
of, any amenity, the State Government may direct the local authority to grant 
the said amenity on such conditions as it may consider fit; and thereupon the 
amenity shall be granted : 

Provided that, the charge to be paid for granting or continuing such amenity 

to the local authority concerned is not less than the cost to the local authority or 
licensee concerned for providing such amenity : 

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. 

'[50A. Ifinrespectof any land held for the purpose of agriculture and situated Power to 
outside an industrial area but within a distance of 10 kilometers on all sides from Cllector to 
the outer boundary of that industrial area, any person applies for permission of aplications 

Mah. the Collector under the Maharashtra Land Revenue Code, 1966, for conversion of for 
o its use for the non-agricultural purpose of setting up an industrial undertaking conversion 

1966, thereon, other than a small scale industry, and the Corporation submits its i;f“‘(‘lsfm?f 
objection in writing to the Collector to such permission being granted, the Collector i, qctyial 
shall hold such inquiry as he deems fit. If after holding such inquiry, the Collector purpose in 
is satisfied that setting up of such industrial undertaking on that land is likely to adjoining 
hamper orderly development of the industrial area, it shall be lawful for the " 
Collector, notwithstanding anything contained in the said Code or any other law cases. 

1. Section 50A was inserted by Mah. 18 of 1975, s. 17. 



24 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

for the time being in force, to reject the application for conversion of use of the 
land for the non-agricultural purpose aforesaid. Where such application is rejected, 
the Collector shall state the reasons in writing of such rejection. 

Explanation.--For the purpose of this section “a small scale industry” means 

an industry, which has a capital investment in plant and machinery of not more 

than rupees ten lakhs, irrespective of the number of persons employed therein.] 

R’asf;’r‘:]zrfijef 51. All sums payable by any person to the Corporation or recoverable by it by 
to the or under this Act and all charges or expenses incurred in connection therewith 

Cg?::fi:‘?; shall, without prejudice to any other mode of recovery, be recoverable as an 
R :vfeh":‘;‘ arrear of land revenue on the application of the Corporation 

no%iecl;.vs‘cit?:f 52. (1) All notices, orders and other documents required by this Act or any rule 

" orregulation made thereunder to be served upon any person shall, save as otherwise 

provided in this Act or such rule or regulation, be deemed to be duly served— 

(@) where the person to be served is a company, the service is effected in I of 
accordance with the provisions of section 51 of the Companies Act, 1956; 976 

(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 authorised 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 building) 

without further name or description, and shall be deemed to be duly served— 

(a) if the document so addressed is sent or delivered in accordance with 
clause (d) of sub-section (1) ; or



[1962 : Mah. IIT Maharashtra Industrial 25 
Development Act, 1961 

(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 the firm in accordance with this section, 
the document shall be deemed to be served on each partner. 

(4) For the purpose of enabling any document to be served on the owner of 
any property, the occupier (if any) of the property may be required by notice in 

writing by the State Government or the Corporation, as the case may be, to 
state the name and address of the owner thereof. 

53. Every public notice given under this Act or any rule or regulation made Public 
thereunder shall be in writing over the signature of the officer concerned and “L:fizes hgw 
shall be widely made known in the locality to be affected thereby affixing copies know:.m © 
thereofin conspicuous public places, within the said locality, or by publishing the 

same by beat of drum or by advertisement in a local newspaper, or by any two or 
more of these means, and by any other means that the officer may think fit. 

54. Where any notice, order or other document issued or made under this Notices, 
Act or any rule or regulation made thereunder requires anything to be done for ¢ "°b‘l"" 
the doing of which no time is fixed in this Act or the rule or regulation, the ;fi?;?m © 

notice, order or other document shall specify a reasonable period of time for 
doing the same or complying therewith 

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

(2) The Corporation shall in addition to the audit report referred to in section 
27 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 
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. 

56. Where the State Government is satisfied that in respect of any particular Withdrawal 

industrial estate or industrial area, or any part thereof, the purpose for which the g;z:fizl?" 
Corporation was established under this Act has been substantially achieved so as jart thereof: 
to render the continued existence of such estate or area or part thereof under the 

Corporation unnecessary, the State Government may, by notification in the Official 
Gagzette, declare that such industrial estate or industrial area or part thereof has 
been removed from the jurisdiction of the Corporation. The State Government may 

also make such other incidental arrangements for the administration of such estate 
or area or part thereof as the circumstances necessitate. 

57. (1) If the State Government is satisfied that the Corporation has made Default in 

a default in performing of any duty or obligation imposed or cast on it by or P‘?g"{“‘”‘* 
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 to supersede and reconstitute the 

Corporation, as it deems fit.



26 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

(3) After the supersession of the Corporation and until it is reconstituted in 

the manner laid down in Chapter II, the powers, duties and functions of the 

Corporation under this Act shall be carried on by the State Government or by 
such officer or officers or body of officers as the State Government may appoint 
for this purpose from time to time. 

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

Dissolution 58, (1) Where the State Government is satisfied that the purposes for which 
of Cr::;‘;f‘ the Corporation was established under this Act have been substantially achieved 

s0 as to render the continued existence of the Corporation in the opinion of the 
State Government unnecessary, that Government may by notification in the 
Official Gazette declare that the Corporation shall be dissolved with effect from 

such date as may be specified in the notification, and the Corporation shall be 

deemed to be dissolved accordingly. 

(2) From the said date— 

(@) all properties, funds and dues which are, vested in, or realisable by, the 

Corporation shall vest in, or be realisable by, the State Government; 

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

enforceable against the State Government. 

Authority 59 Unless otherwise expressly provided, no Court shall take cognizance of 
pmmmn‘_ any offence relating to property belonging to, or vested by or under this Act, in 

the Corporation, punishable under this Act, except on the complaint of, or upon 

information received from, the Corporation or some person authorised by the 

Corporation by general or special order in this behalf. 

Composi- ~ 60. (1) The Corporation or any person authorised by the Corporation by 

offe ‘r‘lz(‘::l;’f general or special order in this behalf may, either before or after the institution of 
Co,wmfim)f the proceedings, compound any offence made punishable by or under this Act. 

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

of the offence compounded. 

Offencesby g1, (1) Whenever an offence under this Act has been committed by a 
COmPANES: mpany, every person who at the time the offence was committed was in charge 

of, or was responsible to the company for the conduct of, the 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 of 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 connivance of, or is attributable 

to any neglect on the part of, any director, manager, secretary, or other officer



[1962 : Mah. IIT Maharashtra Industrial 27 
Development Act, 1961 

of the company, such director, manager, secretary or other officer shall also be 
deemed to be guilty of the offence and shall be liable to be proceeded against 

and punished accordingly 

Explanation.—For the purposes of this section- 

(@) “company” means any 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. 

62.  Any person who obstructs the entry of a person authorised under section PSMILY, for 
48 to enter into or upon any land or building or molests such person after such °Pstuction: 
entry or who obstructs the lawful exercise by him of any 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. 

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

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 the 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 or any of the following matters, namely :— 

(@) under section 6, the salary and allowances and honorarium of members 

of the Corporation ; 

(b) under section 12, the conditions of appointment and service and the 

scales of pay of the Chief Executive Officer ![ the Deputy Chief Executive 

Officer or Officers ] and the Chief Accounts Officer of the Corporation ; 

(c) under section 20, the sums of money to be kept by the Corporation in 

current and deposit accounts ; 

(d) under section 22, the conditions subject to which the Corporation may 
borrow ; 

(e) under section 26, the date by which the annual financial statement and 
programme of work shall be submitted by the Corporation to the State 
Government and the form and manner of preparing such statement ; 

(f) under section 27, the manner of maintaining accounts ; 

() under section 33, the time within which the Collector shall dispose of 
cases referred to him under sub-section (3) ; 

(h) under section 42, the delegation of powers of Government under Chapter VI; 

(i) under section 55, the formof, and the details to be given in, the annual report; 

(j) the fees which may be charged by the Corporation ; 

(k) any other matter which has to be, or may be, prescribed by rules. 

1. These words were inserted by Mah. 57 of 1981, s. 4. 



28 Maharashtra Industrial [1962 : Mah. IIT 
Development Act, 1961 

(3) All rules made under this section shall be laid for not less than thirty days 
before each House of the State Legislature as soon as possible after they are 

made, and shall be subject to such modifications as the Legislature may make 
during the session in which they are so laid, or the session immediately following. 

Powerto  64. (1) The Corporation may, with the previous approval of the State 

make Government, make regulations consistent with this Act and the rules made 
regulations. thereunder, to carry out the purposes of this Act, and without prejudice to the 

generality of this power, such regulations may provide for :— 

(@) under section 7, the time and place of meetings of the Corporation and 
the procedure to be followed in regard to the transaction of business at such 

meetings ; 

(b) under section 12, the conditions of appointment and service and the 
scales of pay of officers and servants of the Corporation, other than the Chief 
Executive Officer ![ the Deputy Chief Executive Officer or Officers ] and the 

Chief Accounts Officer ; 

(c) under section 20, the officer of the Corporation who may operate its 
accounts ; 

(d) under section *[ 43-1 A], the manner in which Government lands shall 

be dealt with by the Corporation after development ; 

(e) under section 44, the committee of the Corporation to hear appeals 
under that section and the procedure to be followed by it ; 

(f) under section 46, the additional terms and conditions subject to which lands 
and buildings in industrial estates and industrial areas may be held or used ; 

(g) any other matter which has to be, or may be, provided by regulations. 

(2) All regulations made under this section shall be published in the Official 

Gagzette and shall be laid for not less than thirty days before each House of the 

State Legislature as soon as possible after they are made, and shall be subject 

to such modifications as the Legislature may make during the session in which 

they are so laid, or the session immediately following. 

P“f"egi"" 65. No suit, prosecution or other legal proceedings shall lie against any person 
“faken 1n for anything which is in good faith done or intended to be done under this Act or 

good faith. any rule or regulation made thereunder. 

é\!{efl'!)mi 66. All members, officers and servants of the Corporation shall, when acting XLy 

° 'cff{;é':;f or purporting to act in pursuance of any of the provisions of this Act, be deemed 

?Ogom'inlm to be public servants within the meaning of section 21 of the Indian Penal Code. 1860. 
o be public 

servants. 

pg\f‘;})fii 67. The provisions of this Act shall have effect notwithstanding anything 

inconsis- inconsistent therewith contained in any other law. 
tent with 

other laws. 

1. These words were inserted by Mah. 57 0f 1981, s. 5. 

2. Thiswas substituted forthe figures “40” by Mah. 11 of 1967, 5.6.



[1962 : Mah. IIT Maharashtra Industrial 29 
Development Act, 1961 

68. Ifany doubt or difficulty arises in giving effect to the provisions of this Power to 
Act, the State Government may, by order, make provision or give such direction doTl;Ls and 
not inconsistent with the express provisions of this Act, as may appear to it to difficulties. 

be necessary or expedient for the removal of the doubt or difficulty, and the 
order of the State Government, in such cases, shall be final. 

I‘jfi‘gf 69. In the Bombay Legislature Members (Removal of Disqualifications) Act, Amend- 
To56. 1956, in Schedule I, after entry 10, the following entry shall be inserted, namely :— gfi:fidfie I 

to Bom. LIT 
of 1956. 

*%10A. The office of a member of the Maharashtra Industrial Development 

Corporation nominated under *[clause (b), (c) or (d) of sub-section (1) of section 4] 
of the Maharashtra Industrial Development Act, 1961, by reason only of his Mah 10T of 

holding such office.”. 

* Entry 10A as amended by Mah. 44 of 1981, reads as under - 
Mah.  “10A. The office ofa member of the Maharashtra Industrial Development Corporation nominated 
11T of under clause (d), (), (f), () or (h) in section 4 of the Maharashtra Industrial Development Act, 1961 
1962. by reason only of his holding such office™. 

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Maharashtra
Enactment date
1962-03-01
Sections available
72

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1Short title, extent and commencement.→2Definitions.→3Establishment and incorporation.→4Constitution.→5Disqualification for membership.→6Terms of office and conditions of service of members.→7Meetings of Corporation.→8Cessation of membership.→9Vacancies how to be filled.→10Temporary absence of members.→11Proceedings presumed to be good and valid.→12Officers and servants of the Corporation.→13Corporation to absorb certain staff and to assume obligations of State Government in respect of matters to which this Act applies.→14Functions.→15General powers of the Corporation.→16Authentication of orders and documents of Corporation.→17Power to levy service charges.→18Directions by the State Government.→19Application of Corporation's assets.→20Corporation's fund.→21Grants, subventions, loans and advances to the Corporation.→22Power of Corporation to borrow.→23Deposits.→24Reserve and other funds.→25Expenditure from funds.→26Budget and programme of work.→27Accounts and audit.→28Concurrent and special audit of accounts.→29Application of Bombay Government Premises (Eviction) Act, 1955 to Corporation premises.→30Non-application of Rent Control Acts to Corporation Premises.→31Application.→32Compulsory acquisition.→33Compensation.→34Appeal to Court.→35Dispute as to apportionment.→36Payment of compensation.→37Investment of amount deposited in the Court.→38Payment of interest.→39Disposal of land by the Corporation.→40(Deleted)→41(Deleted)→42Delegation of powers of the State Government.→42AAcquisition of unutilised surplus lands in industrial areas and allotment to other industries→43-1AGovernment lands.→43Powers of the Corporation in case of certain defaults by owner of land in industrial area.→44Order of demolition of building.→45Power to stop building operations.→46Penalty for construction or use of land and buildings contrary to terms of holding.→47Power to lay pipe lines, etc.→48Powers of entry.→49Officers of the Corporation may be vested with other powers.→50Overriding powers of Government to issue directions to local authorities.→50APower to Collector to reject applications for conversion of use of land for industrial purpose in adjoining areas in certain cases.→51Recovery of sums due to the Corporation as arrears of land revenue.→52Service of notices, etc.→53Public notices how to be made known.→54Notices, etc., to fix reasonable time.→55Furnishing of returns, etc.→56Withdrawal of area or estate or part thereof.→57Default in performance of duty.→58Dissolution of Corporation.→59Authority for prosecution.→60Compositions of offences by Corporation.→61Offences by companies.→62Penalty for obstruction.→63Power to make rules.→64Power to make regulations.→65Protection of action taken in good faith.→66Members, officers and staff of Corporation to be public servants.→67Effect of provisions inconsistent with other laws.→68Power to remove doubts and difficulties.→69Amendment of Schedule I to Bom. LII of 1956.→
Source and version

India Code, Government of India. Text fetched 20 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.

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The Maharashtra Industrial Development Act, 1961. | NYAYA SIGNAL

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