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Section 18A -The Industries (Development And Regulation) Act, 1951

The Industries (Development And Regulation) Act, 1951


18A. Power of Central Government to assume management or control of an industrial undertaking in certain cases


(1) If the Central Government is of opinion that-


(a) An industrial undertaking to which directions have been issued in pursuance of section 16 ha failed to comply with such directions, or


(b) An industrial undertaking in respect of which an investigation has been made under section 15 (whether or not any directions have been issued to the undertaking in pursuance of section 16), is being managed in a manner highly detrimental to the scheduled industry concerned or to pubic interest.


The Central Government may, by notified order, authorize any person or body of persons to take over the management or to exercise in respect of the whole or any part of the undertaking such functions of control as may be specified in the order.


(2) Any notified order issued under sub-section (1) shall have effect for such period not exceeding five years as may be specified.


1[Provided that if the Central Government. is of opinion that it is expedient it] the public interest that any such notified order should continue to have effect after the expiry of the period the period of five years aforesaid, it may from time to time issue directions for such continuance for such period, not exceeding two years at a time, as may be specified in the direction, so however that the total period of such continuance (after the expiry of the total period of such continuance (after the expiry of the said period of five years) does not exceed 2(twelve years); and where any such direction is issued, a copy thereof shall be laid, as soon as may be, before both Houses of Parliament).




The Power to authorize a body of persons under this section to take over the management of an industrial undertaking, which is a company includes also a power to appoint an individual, firm or company to be the managing agent of the industrial undertaking on such terms and conditions as the Central Government may thinks fit.




1. Substituted for former proviso by the Industries (Development and Regulation) Amendment Act, 1965 (6 of 1965), section 2 (29-3-10965).


2. Substituted by the Industries Development and Regulation) Amendment Act, 1974 (32 of 1974), S. 2 (29-6-974).



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The Industries (Development And Regulation) Act, 1951


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