LexThe Bihar Industrial Area Development Authority Act, - 1974
Jharkhand · state statute
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The Bihar Industrial Area Development Authority
Act, - 1974
AN ACT TO PROVIDE FOR PLANNED DEVELOPMENT OF INDUSTRIAL
AREAS AND PROMOTION OF INDUSTRIES AND MATTERS APPERTINENT
THERETO
Be it enacted by the Legislature of the State of Bihar in the twenty fifth ear
of the Republic of India as follows :-
CHAPTER I
Short Title, Extent and Commencement:-
1. This Act may be called the Bihar Industrial Area Development Authority Act,
1974.
2. It extends to the whole of the State of Bihar.
Definitions
In this Act, unless the context otherwise requires:
(a) “amenity” includes roads water-supply, street lighting, drainage, sewerage, school,
housing, hospital and recreation facilities and such other convenience and facility
as the State Government may, by n otification in the Official Gaze tte, specify to
bean amenity for the propose of this Act;
(b) “building” includes any structure of c reation of part of structure or creation which
is intended to be used for residential, industrial, commercial, or other purposes,
whether in actual use or not;
(c) “development” with its grammatical variations means the carrying out of building,
engineering or any other operations in, on, over or under land or the making of any
material change in any building or land including the provision of accommodation
for carrying on industrial activities with or without accommodation for residential
purposes or other activities and with all proper facilities for public works,
recreation, amenity and other basic requirements for establishments of industries
and includes re-redevelopment:
(d) the word “industry” would have the same meaning as has been assigned to it under
section 2, clause (3) of the Bihar State Aid to Industries Act. 1956.
(e) “development area” means any area declared to be a development area under
section 4.
(f) “industrial area”means an area for which an Authority is constituted under section 3
(g) “regulation” means a regulation made under this Act by the Authority constituted
under Section 3.
(h) “rule” means a rule made under this Act by the State Government.
(i) “prescribed” means prescribed in the rule f ramed by the State Government under
this Act.
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CHAPTER II
Industrial area development authority-aims and objects
3. (1) The State Government may at any time after commencement of this Act,
constitute by notification, an Authority for any area or areas for development
and promotion of industry (herein-after in this Act referred to as the Authority).
Explanation- The State Government may set up one or more Authori ties or
one Authority for one o r more areas in the State under this Act. Such an
Authority will be known as “(name of the area) Industrial Area Development
Authority”
(2) The Authority sha ll be a body corporated by the n ame aforesaid having
perpetual succession and a common seal with powers to acquire, hold and
dispose of properties, both movable and immovable, and to contract and
shall by the said name sued and be sued.
(3) (I) Any such Authority shall consist of a Chairman, a Managing
Director and five other Directors who shall be appointed by the State
Government and who shall hold their office, on terms and conditions to
be prescribed in this behalf, at the pleasure of the State Government.
(II) The Chairman of the Authority shall be a Government servant not below
the rank of a Commissioner or any other person who may be nominated by
the Government.
(III) The State Government may, if it is found to be expedient, appoint
the same person as Chairman and Managing Director of the Authority.
(4) The Managing Director shall be a whole – time officer and the Chief
Executive of the Authority and shall perform, among others, the
following duties under the general guidance of the Chairman:
(a) he shall receive all the moneys on behalf of the Authority and issue
receipt and maintain proper account for the same.
(b) he shall draw money from the fund of the Authority for
disbursement of salaries, allowances and meeting the expenses of the
Authority;
(c) he shall authenticate any order of the Authority;
(d) he shall perform any order, duty that may be assigned to him by the
Authority or the State Governemnt from time to time.
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4. Declaration of areas as development area.- (1) The State Government may by
a notification in the official Gazette declare any area adjacent to an area a
"development area" for the purposes of this Act after taking into
consideration any objection that may be raised in the manner prescribed in
the rules;
Provided that no objections need be invited for any area already declared as
"controlled area" under sub-section (1) of Section 3 of the Bihar Restriction
of uses of Land Act, 1948.
(2) After an area has been notified as development area under sub -section
(1) of Section 4 of this Act, no person or company or business house or
anybody (including a department of the State Government) shall undertake
or carry out any construction, modification or demolition of any structure or
building within such development area without the prior approval of the
Authority in accordance with the procedure laid down in the rules prescribed.
(3) Unless otherwise sti pulated in the Rules, the procedure regarding
application for permission to build, excavate or lay out any means of access,
and grant and refusal of such permission shal be according to the provisions
of the Bihar Restriction of Uses of Land Act. 1948 in this behalf.
5. Establishment. - The Authority shall have its own establishment for which it
shall frame Regulations with prior approval of the State Government.
CHAPTER III
Powers and Duties of the Authority
6. General duties and powers of the Authority. - (1) Subject to the provisions of
this Act. the Authority shall be responsible or the planned development of the
Industrial Areas (including preparation of the Master Plan of the area) and
promotion of industries in the area and other amenities incidental thereto.
(2) The Authority shall be responsible for planning, development and
maintenance of the Industrial Area and amenties thereto and allotment of
land, execution of lease, and cancellation of such allotment or lease,
realization of fees, rent, charges and matters connected thereto.
2. (a) In case necessary effective steps are not taken within the fixed period
to establish the industry, the authority shall in such condition, cancel the
allotment of allotted plot/shed and also forfeit the amount deposited in th is
connection. The authority shall, before cancelling the allotment allow one
monthtime to the allottee to put up his case. the allottee on being dissatisfied
with the order of the Authority may file an appeal to the State Governemnt
within one month and the State Government shall, after due consideration
dispose it of within two months from the date of receipt of the appeal.
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(b)The authority shall, after cancellation of allotment of the pl ot/shed take
possession of the said plot/shed.
(3) The State Government may from time to time entrust the authority with
any other work that is connected with planned development, maint enance of
the Industrial Area and its amenities and matters connected there to.
(4) The Authority shall have the powers of the Commissioners of
Municipality as specified in Section 196, 197, 198, 199, 200, 201 and 202
the Bihar and Orissa Municipal Act, 1922, for purposes of removal
encroachment on roads, house gullies any land in the development area and
properties of the Authority.
(5) The State Government, may be notification in the Official Gazette vest
the Authority or the Chairman or the Managing Director with power under
any other Act for planning, development and maintenance of civil amenities
like housing and schools and vacation of encroachment, etc. th at are
exercisable by any local authority or statutory body or State agency under
any law for the time being in force in this regard.
(6)where, i n the opinion of the Authority, as a consequence of an y
development having been executed by the Authority in any development
area the value of any property in that area which has been benefited by the
development has increased, the Authority may, with the prior approval of the
State Government, levy upon the owners of the property or any person
having interest therein a betterment charge in respect of the increase in value
of the property resulting from the execution of the development:
Provided that no betterment charge shall be levied in respect of land
owned by the State or Central Government.
(7) Such betterment charge shall be an amount in respect of an y property
situated in a development a rea, equal to one -third of the amount by which
the value of the property on the completion of the execution of the
development scheme, estimated as if the property were clear of building
exceeds the value of the property prior to such execution estimate d in like
manner :
(8) The Authority may, in addition to the grants loans, advances subsidies
that may by received from the State Government; also borrow from any
source, with the prior approval of the State Government.
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7. Financial Powers
(1) The Authority shall have and maintain its own fund to which shall be
credited;
(a) All moneys received by the Authority from the State Government by way
of grants, loans advances or otherwise;
(b) All fees, rents, charges, lev ies and fines received by the Authority under
this Act,
(c) All moneys received by the Authority from disposal of its movable and
immovable assets;
(d) All moneys received by the Authority by way of loan from financial and
other institutions and debentures floated for the executio n of a scheme or
schemes of the Authority duly approved by the State Government.
(2) Unless the State Government otherwise directs, all moneys received by
the Authority shall be credited to its fund which shall be kept with the State
Bank of India and/or one or more of the Nationalized Banks and drawn a s
and when required by the Authority.
8. Budget:-
(1) The Authority shall prepare a budget every year in respect of the
financial year next ensuring, showing the estimated receipts and
expenditures of the Authority and shall forward to the State government
such number o f copies thereof as may be prescribed by Rules and the State
Government may issue any directive as may be considered expenditure for
the purpose of this Act.
(2) The Authority shall maintain proper account and other relevant records
and prepare an annual statement of accounts including a balance sheet.
(3) The accounts of the Authority shall be subject to audit annually by the
Accountant General, Bihar and a ny expenditure incurred by him in
connection with such audit will by payable the Authority to the Accountant
General, Bihar. The Accountant General shall have the privileges and
authority in connection with audit of the accounts of the Authority as he i s
entitled to in connection with audit of the Government accounts.
(4) The accounts of the Authority as certified by Accountant General, Bihar,
or any other person appointed by him in this behalf together with the audit
report shall be forwarded every year to the State Government along with an
annual report.
CHAPTER IV
9. Miscellaneous provision
(1) The State Government may acquire any land required for the purpose of
the Authority, which shall be deemed to be “Public purpose” under the land
Acquisition Act, 1894.
(2) The State Government may, by a deed of lease, transfer, on terms and
conditions as may be decided by the State Government, to the Authority any
developed or undeveloped land vested in the State of Bihar for the purpose of
development or use in accordance with the provision of this
Act.
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(3) If any land so placed at the disposal of the Authority under sub-section (2) is
required at any time by the State Government, the Authority shall restore it to the
State Government.
10. Every Director and every officer and employee of the Authority Shall be
deemed to be a public servant within the meaning of Section -21 of the
Indian Penal Code.
11. Any money due to the Authority on account of fees, rent or charges, or
disposal of l and, building or other properties, moveable and immovable, or
by way of rents and profits, may be recovered by the Authority as arrears of
land revenue under the Bihar Public Demands Recovery Act, 1914.
12. (1) Any person who violates any order of the Authority in respect of removal
of any structure or encroachment or uses any land or building in
contravention of any regulation framed by the Authority in this behalf shall
be punishable with fine which may ext end up to Rs. 10,000/ - or simple
imprisonment for a term which may extend to six months or both and in case
of continuing offence with further fine which may extent to Rs. 100/ - for
every day after conviction.
(2) All fines realized in connection with prosecution under this Act shall be
paid to the Authority.
(3) No Court below the rank of a Magistrate of the First Class shall try any
offence under this Act.
13. Save as aforesaid, the provisions of this Act and Rules and Regulations
made thereunder shall have effect not withstanding anything inconsistent
therewith contained in any other law in force in the State.
14. The State Government may, by notification in the Official Gazette, make
rules to carry out the purposes of this Act and in particular provide for:
(a) removal of encroachments on lands belonging to the Authority;
(b) removal of unauthorized structures;
(c) demolition of buildings which may interfere with the planning or which
may have been erected in contravention of the Regul ations of the
Authority;
(d) the submission of reports and returns by the Authority to the State
Government on matters relating to the duties, power responsibilities of
the Authority;
(e) the issue of directions by the State Government laying down broad
principles for the fulfillment of aims and objects of the Act.
15. The Authority may, with the prior approval of the State Government, by a
Resolution published in the Official Gazette, make Regulations to carry out
the purposes of this Act.
16. No suit, prosecution or other legal proceeding shall lie against any person for
any action which is in good faith done or intended to be done under this Act
or any rule regulations made thereunder.
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17. When the State Government is satisfied that the purpose f or which the
Authority was established under this Act has been substantially achieved so
as to render the continuance of the Authority unnecessary, the Government
may, by notification in the Official Gazette declare that the Authority shall
be dissolve d with effect from such date as may be specified in the
notification and the Authority shall be deemed to be dissolved accordingly
from the said date and all the properties, funds and dues realizable by the
Authority along with its liabilities shall devolve upon the State Government.
18. Repeal and savings – (1) The Bihar Industrial Area Development Authority
Ordinance 1974 (Bihar Ordinance No. 80, 1974) is hereby repealed.
(2) Not withstanding such repeal , anything done or any action taken in
exercise of any power confered by or under the s aid Ordinance shall be
deemed to have been done or taken in the exercise of power conferred by or
under the Act as if this Act were in force on the day of which such thing was
done or action was taken.
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8
BIHAR INDUSTRIAL AREA DEVELOPMENT AUTHORITY
(AMENDMENT) ACT, 1991
A ACT TO AMEND THE BIHAR INDUSTRIAL AREA
DEVELOPMENT AUTHORITY ACT, 1974
Be it enacted by the legislature of the State of Bihar in the forty second year
of the Republic of India as follows:-
Short title and commencement –
(1) This Act may be called the Bihar Industrial Area Development Authority
(Amendment) Act, 1991.
(2) It shall come into force with retrospective effect.
Amendment of section– 6 of Bihar Act 16 of 1974:- In the Bihar Industrial Area
Development Act, 1974 (Bihar Act 16, 1974), after sub -section (2) of section 6
following new sub-sections shall be added, namely:-
(2-a) In case necessary effective steps are not taken within the fixed pe riod
to establish the industry, the authority shall in such condition, cancel the allotment
of allotted plot/shed and also forfeit the amount deposited in this connection. The
authority shall, before cancelling the allotment, allow one month time to the
allottee to put up his case. The allottee on being dissatisfied with the order of the
authority may file an appeal to the State Government within one month and the
State government shall, after due consideration, dispose it off within two months
from the date of receipt of the appeal.
(2-b) The authority shall, after cancellation of allotment of the plot/shed,
take possession of said plot/shed.”
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