Ministry of Textiles
The British India Corporation Limited (Acquisition of Shares) Act, 1981, was enacted to facilitate the acquisition of certain shares of the British India Corporation Limited (BIC) by the Central Government. BIC, engaged in the manufacture of woolen fabrics, had received financial assistance from public institutions and the government for modernization but required further investment. The government, aiming to secure proper management and ensure the continued production of essential goods, acquired a controlling stake in the company through this Act. This Act falls under the Ministry of Textiles.
Enactment Date, Number of Chapters, Number of Sections:
The Act was enacted on September 11, 1981, and deemed effective from June 11, 1981. It consists of three chapters and 21 sections.
Act Governed By:
The Act’s implementation was overseen by the Central Government, which had the power to acquire the shares and appoint a Commissioner of Payments to manage the financial transactions related to the acquisition.
On Whom It Is Applicable:
The Act primarily applied to the British India Corporation Limited, its shareholders, and the Commissioner of Payments appointed under the Act.
Penalties/Punishments:
The Act prescribes penalties, including imprisonment and fines, for offenses such as making false claims for payment and obstructing the inspection process. It also addresses offenses committed by companies.
Important Pointers:
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Transfers specified shares of the British India Corporation Limited to the Central Government.
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Provides for the payment of amounts to shareholders based on the type and number of shares held.
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Appoints a Commissioner of Payments to disburse funds to shareholders and manage related financial matters.
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Empowers the Commissioner to inquire into disputes regarding the amount payable to shareholders.
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Allows for undisbursed or unclaimed amounts to be deposited into the general revenue account.
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Provides the Central Government with the power to make rules for the Act’s implementation.
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Repeals the corresponding ordinance and includes a saving clause for actions taken under the ordinance.