The Industries (Development and Regulation) Act, 1951

The Industries (Development and Regulation) Act, 1951, is a foundational law for the development and regulation of scheduled industries in India, ensuring balanced industrial growth.

Ministry of Commerce and Industry

The Industries (Development and Regulation) Act, 1951, is a significant Indian law that provides a framework for the development and regulation of scheduled industries. The Act empowers the Central Government to control and regulate specific industries, establishes development councils, and mandates licensing for new and existing industrial undertakings. It also details the powers of the Central Government to investigate, direct, and control industrial activities.

Act Background and Ministry Under Which This Act Is:
The Industries (Development and Regulation) Act, 1951, was enacted to empower the Central Government to regulate and develop certain key industries. This act aims to ensure balanced industrial growth and the efficient utilization of resources. Though the act does not specify a ministry, it is generally administered by the Ministry of Commerce and Industry in India.

Enactment Date, Number of Chapters, Number of Sections:
The Act was enacted on October 31, 1951. It has four main chapters and 32 sections, along with three schedules. These sections address definitions, the establishment of advisory and development councils, licensing of industrial undertakings, and the powers of the Central Government.

Act Governed By:
The Act is governed by its own provisions, which outline the legal framework for the regulation and development of scheduled industries. It specifies the powers of the Central Government, and the functions of the Central Advisory Council and Development Councils. The Act also lays down the rules for licensing, investigation, and control of industrial undertakings.

On Whom it is Applicable:
The Act applies to the whole of India and is primarily applicable to all industrial undertakings related to the industries listed in the First Schedule. It covers all owners, manufacturers, and other entities involved in the scheduled industries, as well as the Central and State Governments.

Penalties/Punishments:
The Act prescribes penalties for non-compliance with its provisions. These include:

  • Penalties for contravening the provisions of the act or rules.

  • Penalties for non compliance of directions issued by the government.

  • Penalties for failure to obtain a license or for operating without registration.

  • Penalties for tampering with records or providing false information.

Important Pointers:

  • Scheduled Industries: The Act lists industries that are subject to regulation in the First Schedule.

  • Licensing: It mandates licensing for new industrial undertakings and for producing new articles.

  • Registration: It requires existing industrial undertakings to be registered.

  • Development Councils: The Act provides for the establishment of Development Councils for specific industries.

  • Advisory Council: It establishes the Central Advisory Council to advise the Government on industrial matters.

  • Investigation Powers: The Central Government has the power to investigate industrial undertakings.

  • Control of Undertakings: It empowers the Central Government to assume direct management or control of industrial undertakings in certain cases.

  • Cess: The Act allows for the imposition of cess on scheduled industries.

  • Directions: The Central Government is empowered to issue directions to Development Councils.

  • Rules: It empowers the Central Government to make rules to implement the provisions of the Act.

Act Copy:

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