The Maharashtra Industrial Development Act, 1961.

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- 

Excerpt shown. Open the full act in Lexace.

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