REGISTERED No. D. 221
The Gazette of India
EXTRAORDINARY
PART II—Section 2
PUBLISHED BY AUTHORITY
No. 53] NEW DELHI, FRIDAY, NOVEMBER 21, 1969 KARTIKA 30, 1891
Separate paging is given to this Part in order that it may be filed
as a separate compilation.
LOK SABHA
The following Bills were introduced in Lok Sabha on the 21&t Novem-
ber, 1969.—
BILL NO 81 OF 1969
A Bill to provide for the creation of trust corporations and for matters
connected therewith.
BE it enacted by Parliament in the Twentieth Year of the Republic
of India as follows: —
1 (i) This Act may be called the Indian Trusteeship Act, 1969.
(2) It shall extend to the whole of India,
(3) It shall come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint.
Short title, extent and com- mence- ment.
2 In this Act, unless the context otherwise requires,—
(a) "business' means and includes industries, plantations ) banks ,
Defini- tions.
trade, transport or any other activity carried on for profit;
1 of 1956
(b) "company" means any public or private limited company registered under the companies Act, 1956, and having a subscribed capital of more than a million rupees;
(917)
918 THE GAZETTE OF INDIA EXTRAORDINARY [PART II(c) "panchayat" means the organ of management of a trust
corporation constituted in the manner provided in this Act;
(d) "trust corporation" means any company the owners whereof? have declared themselves to be its trustees in the manner prescribed in this Act.
3. The provisions of this Act shall have effect notwithstanding any- thing to the contrary contained in any law for the time being In force.
Provision) to have effect notwith- standing any law In force.
4. A company may, by a resolution passed by a majority of share- holders present and voting at its general meeting declare itself to be • trust corporation.
Formation Of a trust corpora- tion.
Registrar to be informed.
J>. Immediately after the passing of the resolution referred to in sec- tion 4, the managing agent or the manager or the secretary of the com- pany shall notify the same to the Registrar of Joint Stock Companies in whose jurisdiction the head office of the company is situated.
6. The Registrar, on receiving such notice, shall direct the managing agent, the manager or the secretary, as the case may be, to carry on thu •day to day business of the company as an interim managing trustee.
Manage- ment during interim period.
Panchayat ol fourteen.
7. The Registrar shall, as soon as possible, arrange to take stock of the assets and liabilities of the company and shall constitute a Pancha<- yat of trustees consisting of not more than sixteen members, in th* following manner to supervise, control and direct the managing trustee: —
(a) not more than five trustees to be nominated by the share-
holders of the company at its general meeting;
(b) not mote than five trustees to be elected by the trade union of the employees of the company, of whom at least one shall be from the managerial staff, one from the jobbers and the rest from any section of the employees;
(c) five trustees, to be nominated by the Registrar of Joint Stock Companies, as experts, one each from the Planning Commis- sion, Ministry of Industrial Development, Internal Trade and Corm- pany Affairs, Department of Company Law Administration, Depart- ment of Labour of the State Government concesned and a nominee of the Municipal Committee or Corporation of tk" locality in whick the head office of the company is situated;
(d) the interim managing trustee shall be an cx-oflcio member
of the Panchayat.
&ic. 2] THE GAZETTE OF INDIA EXTRAORDINARY 919Right of
workers
to vote.
8. Every worker who has been in the employment of the company for .not less than six months shall have the right to vote in the election of -the trustees.
9. No representative of workers shall be included in the Panchayat unless he belongs to a united trade union which makes an active demand for responsible participation in the management of the trust corporation.
Qualifica-
tion of
workers
to be
elected as
trustees.
Functions
of the
Pan-
chayat.
10. The Panchayat shall decide all major questions relating to the management of the business of the trust corporation and, in particular, frame rules for the efficient management of the corporation, approve its annual production plans and annual accounts, construction and develop- ment programme, purchases, sales, loans, credits, wages, salaries, bonus to employees and interest, if any, to shareholders.
Profits
to be
credited
to the
Govern-
ment.
11. The net profits of the trust corporation, after due provision being made for depreciation and provident funds, shall be credited to the income-tax folio of the Ministry of Finance, Government of India, for being allocated to the different States according to the recommendations of the Finance Commission.
Wages of
employees.
12. The employees of the trust corporation shall not demand any ris" in wages which is not commensurate with the earnings of an average villager or the uniform scales of wages determined by the Ministry oi Labour, Employment and Rehabilitation of the Government of India.
Payment of bonus.
13. The Panchayat may sanction payment of general bonus or indi- vidual merit bonus for surpassing the annual production targets fixed lor the corporation.
Works Com- mittees.
14. Works Committee of employees shall be formed in every depart- ment of the trust corporation and they shall be entrusted with the jot of explaining the decisions of the Panchayat to the employees, main- tenance of the discipline and execution of welfare schemes of the trust corporation.
Managing trustee.
15. The managing agent, the manager or the secretary of the com- pany which has declared itself to be a trust corporation, shall become the ex-officio managing trustee of the corporation.
16. If the managing agents are a company or a firm, such company or firm may nominate the first managing trustee of the trust corpora- tion.
Managing trustee to be nominat- ed in certain cases.
17. The first managing trustee shall continue in office for five years or till he attains the age of sixty years, whichever is longer.
Term of
office of
managing
trustee.
920 THE GAZETTE OF INDIA EXTRAORDINARY [PART II18. The managing trustee shall be liable to be removed from office
by the Panchayat for a criminal breach of trust.
Removal of managing, trustee.
19. (1) The remuneration of the first managing trustee shall be fixed
by a contract between him and the Panchayat.
Remunera- tion of managing trustee.
(2) In caise of dispute regarding the remuneration of the first manag- ing trustee, the Registrar of Joint Stock Companies shall fix the same after taking into consideration the standard of life to which the first managing trustee is accustomed.
20. The first managing trustee may recommend a successor to his
office but the final appointment shall be made by the Panchayat.
Successor at managing trustee.
Salaries. 21. The salaries of subsequent managing trustees and other supervi-
sory or technical staff shall be fixed by the Panchayat.
22. The Panchayat shall elect a Chairman from among its members who shall summon its meetings from time to time and shall preside over the same.
Chairman of the Panchayat of trus- tees.
23. The Panchayat shall supervise the work of the managing trustee, examine his reports and give him instructions in regard to the day to day administration as also the policies and programme of the corporation.
Panchayat to act through the manning trustee.
24. All employees of the trust corporation shall be subject to the
authority of the managing trustee in performing their duties.
Control over em- ployees.
25. The managing trustee shall be empowered to impose disciplinary
penalties on defaulting employees.
Powers of the managing trustee,
Audit.
26. The accounts of the trust corporation shall be audited by the
Comptroller and Auditor-General of India.
Scrutiny of accounts
27. Statements of income and expenditure, balance sheets and state- ments of assets and liabilities shall be placed before a joint annual general meeting of all employees of the trust corporation and all share- holders of the company.
28. The Registrar of Joint Stock Companies on being satisfied on the basis of auditor's report that the affairs of a trust corporation are being conducted in a manner harmful to the interests of the community, may recommend to the Central Government to take over the assets of the corporation and dispose them of in any manner It deems fit.
Govern- ment to acquire trust corpora- tions in certain cases.
Ssc. i] THE GAZETTE OF INDIA EXTRAORDINARY 92I29. The co ordination oi the industrial or commercial activities of the truvt corporation with the national plans for economic development shall be the responsibility of the representative of the Planning Commission on the Panchayat, whose decisions in this regard shall be final.
Co-ordi- nation with national plans.
Acquired undertak- ings.
65 of 1951-
30. Any industry or undertaking whose management has been taken over by the Government under the Industrie^ (Development and Regu- lation) Act, 1951, and entrusted to the Registrar of Joint Stock Com- panies, may be treated as a trust corporation for the purposes of this Act.
New trust corpora- tions.
31. New trust corporations may be floated ab initio by an individual entrepreneur investing fifty per rent of the subscribed capital, provided that the Central or the State Government concerned agrees to contribute the other half; ho, however, that the total equity capital does not exceed twenty lakh rupees.
Applica- tion of rules.
32. A trubt corporation formed under section 31 shall be subject to the same rules as are applicable to any other trust corporation formed under this Act.
33. The terms agreed to between the managing trustee of a corpora- tion formed under section 31 and the Government in respect of remune- ration shall be valid during the active lifetime of the original managing trustee.
Managing trustee of a new corpora- tion.
34. (1) The Central Government may, by notification in the Official
Gazette, make rules for carrying out the purposes of this Act:
Power to make rules.
Provided that the rules made hereunder shall not make any discrimi- nation between companies owned or managed by Indian and foreign nationals.
(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one -ession or in two successive sessions, and if before the expiry of the session in which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
<)22 THE GAZETTE OF INDIA EXTRAORDINARY [PART HSTATEMENT OF OBJECTS AND REASONS
Mahatma Gandhi had once said that when India became free, all the capitalists would be given an opportunity of becoming statutory trustees. The Bill seeks to provide such an opportunity to the owners of large companies and proposes necessary provisions for the democratic manage- ment of the resultant trust corporations in accordance with the principles of trusteeship formulated by Gandhiji. The provisions of the Bill are intended to usher peacefully an era of a socialist society. As the Planning Commission has observed in the Second Five Year Plan, a socialist society is built up not solely on monetary incentives but on ideas of service to society. It is necessary, therefore, that the worker should be made to feel that he is helping to build a socialist State. The provisions of the Bill are expected to promote increased productivity by giving the workers a sense of full and intelligent participation in the processes of production, purchases, sales and investments of the enterprise. This Bill is not a com- pulsory but a permissive measure enabling the present owners of large companies to transform their existing titles based on absolute rights into trust ownership. Enactment of this legislation during the Gandhi Cen- tenary year will be a fitting memorial to the Father of the Nation.
NEW DELHI; GEORGE FERNANDES.
The 18th February, 1969.
RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA
[Copy of letter No. 7|16|69-C.L.V, dated the 8th August, 1969 from Shri Fakhruddin Ali Ahmed, Minister of Industrial Development, Inter- nal Trade and Company Affairs to the Secretary, Lok Sabha.]
The Chief Justice of India (Shri M. Hidayatullah) discharging the functions of the President, having been informed of the subject matter of the Bill to provide for the creation of trust corporations and for matters connected therewith, has recommended, under article 117(1) of the •Constitution of India, the introduction of the said Bill in the Lok Sabha.
SKC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 925FINANCIAL MEMORANDUM
Clause 31 of the Bill enables public or co-operative institutions to participate in the floating of new trust corporation. The Central or State Governments may, if they choose, invest their funds in such new trust corporations. This would involve recurring expenditure from out of the Consolidated Fund of India Which may amount to about Rs. twenty lakhs per year,
No non-recurrkig expenditure is likely to be involved.
y24 THE GAZETTE OF INDIA EXTRAORDINABY [PART HMEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 3i ut fho Bill confers on the Central Government power to make- rules to cany out The purpnoos ui tho Eill when enacted. Genera" ly, rtifbe ruiti u Jl rtL.lo to u'.riu;^ j^ . c m. "au i^ 'CL itL-e Th.; rlele^tion of lpgislative power is, therefore, of a normal character.
Sic. 2] THE GAZETTE OF INDIA EXTRAORDINARYB I LL N O. 84 OF 1969
A Bill further to amend the Constitution of InSa.
BE it enacted by Parliament in the Twentieth Year of the Republic of India as follows: —
1. This Act may be called the Constitution (Amendment) Act, 1969. Short title
2. In article 217 of thw Constitution, in clause (7), fox the words
"sixty-two years", the words "sixty-five years" shall be substituted.
Amend- ment of article 217.
3. In article 220 of the Constitution,—
Amend- ment of article 220 (a) for the words "except the Supreme Court and the other High Courts", the following words and proviso shall be substituted, namely: —
"or accept any post or employment under the Central or State Governments or any local or other authority or any public or private sector undertaking;
60 of 1902
Provided that nothing herein contained shall prevent the Central or State Government to appoint such person as chairman or a member of a commission under the Commissions of Inquiry Act, 1952."; and
(b) the Explanation shall be omitted.
926 TH£ GAZETTE OF INDIA EXTRAORDINARY [PARI IISTATEMENT OF OBJECTS AND REASONS
The Working of article 217 of the Constitution since the inauguration of the Constitution has revealed that the Judges of the High Courts are retired at a premature age and the benefit of their maturity is not avail- able since they are retired at the age of 62( years. In other countries where there is a provision with regard to retirement of Judges, the age of retirement is not below 65 years. The Law Commission in its 14th Report has also recommended that the age of retirement of the High Court Judges should be raised from 62 years to 65 years.
The present situation wherein retired Chief Justices and other Judges of the High Courts are allowed to practise in the Supreme Court and the High Courts where they have not held the post of a Judge is very odious. It has resulted in tampering with judicial independence and also checked the healthy growth of the Bar in the Supreme Court.
The Law Commission in its 14th Report (Paragraphs 49, 50 and 51, page 87) has also recommended that retired Chief Justices and Judges of the High Courts should not be allowed to practise either in the Supreme Court or in the High Courts.
The Law Commission has also recommended barring of employment
of retired Judges of the High Courts.
The present Bill seeks to give effect to the above recommendations
of the Law Commission.
NEW DELHI; M. NARAYANA REDDY.
The 22nd May, 1969.
RECOMMENDATION UNDER ARTICLE 117 OF THE CONSTITUTION OF INDIA
[Copy of letter No. 20|6|69-Judl.IIL, dated the 16th August, 1969 from Shri Vidya Charan Shukla, Minister of State in the Ministry of Home Affairs to the Secretary, Lok Sabha.]
The President having been informed of the subject matter of the above Bill recommends the introduction and consideration of the Bill in the Lok Sabha under article 117 of the Constitution of India.
tifcC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 927FINANCIAL MEMORANDUM
The Bill provides for the increase in the age of limit from 62 to 65 year, for the retirement of High Court Judges. This does not involve any extra expenditure inasmuch as judges have to be appointed to vacan- cies on the same terms and conditions on which the retiring judges function. However, it may involve a little increase in the quantum of pension on account oi prolonged or extended service by three more years. It is not possible to estimate the exact amount as a result of the proposed amendment as it depends on the number of judges attaining the present retirement age in a particular year. In any case the estimated extra expenditure may not exceed rupees one lakh a year. It would not involve any non-recurring expenditure,
928 SEC. 2] THE GAZETTE OF INDIA EXTRAORDINABY [PART II—A Bill further to amend the State Bank of India Act, 1955.
BE it enacted by Parliament in the Twentieth Year of the Republic
of India as follows: —
1. This Act may be called the State Bank of India (Amendment) Act, Short title,
1969.
23 of 19W. 2. In section 19 of the State Bank of India Act, 1955 (hereinafter Amend- ment of section 10.
referred to as the principal Act), in sub-section (I), after clause (f), the following new clause shall be added, namely:—
"(g) two directors representing recognised organisations of
employees including supervisory staff.".
3. In section 21 of the principal Act, in sub-section (1), after
clause (e), the following new clause shall be added, namely: —
Amend- ment of section 21-
"(/) two members representing recognised organisations of
employees including supervisory staff.".
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 929Amend- ment of section 22
4 In section 22 of the principal Act, in clause (d) of sub-section (1), after the words "technical adviser", the words "or any employee repre- senting recognised organisation of employees including supervisory staff", shall be added.
5. In section 50 of the principal Act, in sub-section (2), after clause ("), the following new sub-clauses shall be added, namely:—
Amend-
ment of
section 90.
" (v) the conditions subject to which the State Bank may appoint officers, advisers and other employees and fix their remune- ration and terms and conditions of service;
(u>) the establishment of Joint Consultative Councils at all levels consisting of representatives of management and recognised trade unions of employees including supervisory staff.".
930 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT IISTATEMENT OF OBJECTS AND REASONS
Modern thinking is in favour of giving real and effective voice to the employees including supervisory staff in giving direction to and making the policies of the organisation to which they belong and thus create in their minds a sense of joint responsibility and thereby ensure better and happier relationship between the management on the one side and employees including the officials on the other side. It follows that the supervisory staff and other employees should also have some voice in matters relating to service conditions. Most of these privileges have been extended to the staff and employees in the Banks which have recently been nationalised by Statute.
The amendments proposed in the Bill to sections 19, 21, 22, and 50 of the State Bank of India Act, 1955 are intended to achieve the above objects.
NEW DELHI; TENNETI VISWANATHAM.
The 28th July, 1969.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 931BILL NO. 101 OF 1969
A BUI to amend the Maternity Benefit Act, 1961.
BE it enacted by Parliament in the Twentieth Year of the Republic of
India as follows:—
1. This Act may be called the Maternity Benefit (Amendment) Act,
1969.
Short title.
03 of 1961 2. In section 2 of the Maternity Benefit Act, 1961 (hereinafter referred
to as the principal Act), in the proviso to sub-section (1)—
Amend- ment of section 2.
(a) the words "with the approval of the Central Government, after giving not less than two months' notice of its intention of so doing," shall be omitted;
(b) the words "or any of" shall be omitted.
3. In section 3 of the principal Act,—
Amend- ment of section 8.
(a) In clause (j), the words "but does not include any mis- carriage, the causing of which is punishable under the Indian Penal Code" shall be omitted.
43 of 1800.
932 THE GAZETTE OF INDIA EXTRAORDINARY LPART II(b) for clause (n), the following clause shall be substituted,
namely:—
'(n) "wages" means all remuneration paid or payable in cash
to a woman and includes—
(i) such cash allowances (including dearness allowance,
overtime earnings and house rent allowance) as a woman is
for the time being entitled to;
(it) any bonus including incentive bonus;
(in) the money value of the concessional supply of food-
grains and other articles;
(iv) any deduction or payment made on account of fines;
and
(v) cash value of any other fringe benefit which a woman
is for the time being entitled to/.
4. In section 4 of the principal Act, in sub-section (4), in clause (a), for the words "one month" the words "two months" shall be substituted.
Amend-
ment of
section
4.
5. In section 5 of the principal Act,—
(a) in the Explanation to sub-section (1), for the words "one
rupee", the words "two rupees" shall be substituted;
Amend-
ment of
section
S.
(b) in sub-section (2), and in the proviso thereto, for the words
"one hundred and sixty days", the words "one hundred days" shall
be substituted;
(c) in the Explanation to sub-section (2), for the words "laid
off during", the words "laid off and the days on which she was ill
during" shall be substituted;
(d) for sub-section (3), the following sub-section shall be sub-
stituted, namely: —
"(3) The maximum period for which any woman shall be
entitled to maternity benefit shall be fifteen weeks, that is to
say, nine weeks upto and including the day of her delivery and
six weeks immediately following that day:
Provided that where a woman dies before the delivery, the
maternity benefit shall be payable for the entire period of six
weeks:
Provided further that where a woman, having been delivered
of a child, dies during her delivery or during the period of six
weeks immediately following the date of her delivery, leaving
behind in either case a child, the employer shall be liable for
the maternity benefit for the entire period of six weeks
immediately following the date of her delivery.
Explanation.— For the purpose of granting the benefit for
more than six weeks prior to the expected date of delivery, the
difference between the actual date of delivery and the expected
date of delivery shall be taken into account. This, however,
shall not apply to a delivery prior to the expected date.".
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINABY 9336. In section 6 of the principal Act, in sub-section (6), for th" wordi "such period as may be specified in the order", the words "three days" shall be substituted.
Am"nd- caemt of section e.
7. In section 8 of the principal Act, for the words "twenty-flv"
rupees", the words "fifty rupees" shall be substituted.
Amend- ment of section 8.
8. In section 10 of the principal Act, for the words "one month", the
words "two months" shall be substituted.
Amend' ment of section 10.
9. In section 12 of the principal Act, sub-section (2) shall be omitted Amend- ment of section 12
Amend- ment of section 21.
10. In section 21 of the principal Act, for the words "three months, or with fine which may extend to five hundred rupees", the words "one year, or with fine which may extend to two thousand rupees" shall be substituted.
Amend- ment of •ection 22.
11. In section 22 of the principal Act, for the words "three months, or with fine which may extend to five hundred rupees", the words "one year, or with fine which may extend to two thousand rupees" shall be substituted.
Amend- ment of section ?3.
12. In section 23 of the principal Act, in sub-section (1), the words "and no such prosecution shall be instituted except by, or with the previous sanction of, the Inspector" shall be omitted.
934 T HE GAZETTE OF INDIA EXTRAORDINARY [PART IISTATEMENT OF OBJECTS AND REASONS
The provisions of the existing Maternity Benefit Act, 1961 are far from adequate to meet the i equirementa of a female worker. The quan- tum of benefit granted under tho law does not provide proper relief to a woman prior to and after the delivery. The Act is invariably violated for want of stringent measures against the offending employers.
The amendment of the Act is long overdue and it is necessary to make drastic changes to make it more favourable to the women workers. This Bill seeks to make some improvements in view of the experience of the implementation of the Act during the last 8 years.
The existing legislation does not take into account the earnings of a worker such as overtime allowance, profit sharing bonus etc., as earn- ings of a woman worker for the purpose of calculating the maternity benefit. This deprives her of her rightful earnings. This Bill seeks to grant justice to her in this regard. The minimum benefit of one rupee per day is extremely below the requirement and the Bill proposes to double it keeping in vi^w the rising costs.
The existing Act provider, that a pregnant woman should not be given work of an arduous nature involving long hours of standing, one month preceding the period of six weeks before the date of her expected deli- very. This period, however, needs revision and it is proposed to increase it to two months in view of protection of the foetus.
At present only a woman who has worked for one hundred and sixty days during the twelve monihs immediately preceding the date of her expected delivery is entitled for a benefit from the employer. This condition is depriving a large number of women workers from maternity benefit. In view of a large number of women workers being treated as casual workers it is necessary to bring down this limit. This Bill seeks to bring down this limit to one hundred rlnvs of work only.
The present machinery to grant relief to a pregnant woman in case of dispute regarding maternity benefit is dilatory since the Act leaves the time limit for such payment at the discretion of the Inspector. Sincp a woman needs assistance immediately, Ihn payment of such benefit should not be delayed for more thnn 3 days. This Bill seeks to protect women workers, by specifying the p^act time limit for the Inspectors to enforce implementation of the le^al provisions.
The existing provision of medical bonus of 1wentv-flve rupees is paltry. The prices have gone up substantially since the enactment an--1 hence it is proposed to increase the medical bonus to fifty rupees.
It is also necessary to increase the punishment drastically for non- implementation of the Act, At present the maximum punishment the employer is getting is only three months' imprisonment or a fine of
BEC 2] THE GAZETTE OF INDIA EXTRAORDINARY 935Ks. 500 or bolh. Thus provision does not act as a check against its non- implementation. This Bill seeks to increase the punishment to one year and a fine of Rs. 2 thousand. Without such stringent measures it is not possible to enforce the implementation of the legal provisions.
Such improvements in the present Act have been repeatedly demand- ed by Ih • trade union movement throughout the country. However, the Act has not been amended so far. Iience the Bill seeks to do away with the injustice done to the women workers who have been deprived of a human treatment during their piegnancy and after delivery.
NEW DELHI;
SUSEELA GOPALAN
The 1th August, 1969.
936 THE GAZETTE OF INDIA EXTRAORDINARY [PART itFINANCIAL MEMORANDUM
Clauses 3, 5 and 7 of the Bill, if enacted, are likely to involve addi- tional expenditure from the Consolidated Fund of India on account of enhanced payment of maternity benefit as also due to larger number of women workers who will be eligible to avail of the benefit. This im- poses a financial liability on employers including the Central Govern- ment. It is estimated that a recurring expenditure to the tune of rupees aeven lakhs per year will be involved from the Consolidated Fund of India.
No non-recurring expenditure will be involved from the Consolidated
Fund of India.
SEC. 2] T&E GAZETTE OF INDIA EXTRAORDINARY 937BILL NO. 85 OF 1969
A Bill to amend the Orphanages and other Charitable Homes (Supervision
and Control) Act, I960.
BE it enacted by Parliament in the Twentieth Year of the Republic of
India as follows: —
Short title.
1. This Act may be called the Orphanages and other Charitable Homes
(Supervision end Control) Amendment Act, 196&.
10 of 1960
2. After section 21 of the Orphanages and other Charitable Homes (Supervision and Control) Act, 1960, the following new section shall be
Insertion of new- section 21A. Record of religion at the child.
"21A. (1) It shall be the duty of the manager to correctly enter in the records the religion of every child admitted to the recognised home and the entry so made shall not be changed until the child com- pletes the age of eighteen years and thereafter requests for e change in the said entry.
(2) The manager shall, immediately after an entry regarding the change "f religion has been made, send a written report thereof to tha Board giving the detailed particulars of the change."
938 THE GAZETTE OF INDIA EXTRAORDINARY [PART HSTATEMENT OF OBJECTS AND REASONS
The Orphanages and other Charitable Homes (Supervision and Con- trol) Act, 1960 was enacted in order to provide for the supervision and control of orphanages, homes for neglected women or children and other like institutions. It is imperative that such neglected children should be given a cloak of protection end they should be looked after in such a way so that they may become good citizens and thus be an asset to the Nation. In order to maintain the sanctity of the religion of each child admitted to a recognised home, it is necessary to maintain a complete record of reli- gion to which the child belongs. This entry should not be allowed to be changed in eny manner whatsoever so long as the child remains a minor. The object of the proposed amendment Is to maintain the complete sanc- tity of the religion of each child.
Hence the Bill.
NEW DELHI; OM PRAKASH TYAGI.
The Qth August, 1969.
tec. 2] THE GAZETTE OF INDIA EXTRAORDINARY 939BILL NO. 82 OF 1969
A Bill further to amend the Working Journalists (Conditions of Services)
and Miscellaneous Provisions Act, 1955.
BE it enacted by Parliament in the Twentieth Year of the Republic
of India as follows:—
1. (2) This Act may be called the Working Journalists (Conditions
of Service) and Miscellaneous Provisions (Amendment) Act, 1969.
Short title and com- mence- ment( (2) It shall be deemed to have come into force on the 12th day of
July, 1969,
940 THE GAZETTE OF INDIA EXTRAORDINARY [PART II2. In section 2 of the Working Journalists (Conditions of Service) and Miscellaneous Provisions Act, 1955, in clause (f),—
45 of 1955.
Amend- ment of section 2.
(o) the word "principal" shall be omitted; and
(b) after the words "news-photographer", the words "part-time feature writer, part-time reporter, part-time correspondent, part- time cartoonist, part-time news photographer and such other person who sends reports, cartoons, photographs, features, etc. and is appointed for the purpose from places m urban and rural areas ' shall be inserted.
&!c. 2j THE GAZETTE OP INDIA EXTRAORDINARY 941STATEMENT OF OBJECTS AND REASONS
The object of the Bill is to broaden the definition of working jour- nalists as given in section 2(f) of the Working Journalists (Conditions ot Service) and Miscellaneous Provisions Act, 1955 so as to include work- ing journalists who work on a part-time and full-time basis in the rural and small urban areas.
It has been found that the recommendations of the Wage board so far as the working journalists are concerned have not covered the part- time correspondents and all those correspondents who send news from the rural areas and small towns to different News Agencies and News- papers since it has been interpreted under the present definition of the working journalists that "principal avocation" of such journalists is not Journalism. This has deprived thousands of part-time and full-time jour- nalists who send reports to the various News Agencies and Newspapers irom different parts of India of the various benefits.
The Bill seeks to achieve the above objects.
NEW DHJEH; SAMARENDRA KUNDU.
The 13th August, 1969.
942 THE GAZETTE OF INDIA EXTRAORDINARY [PART tiBILL NO. 91 OF 1969
A Bill farther to amend the Industries (Development and Regulation) Act, 1951.
BE it enacted by Parliament In the Twentieth Year of the Republic
of India as follows: —
1. (I) This Act may be called the Industries (Development and
Regulation) Amendment Act, 1969.
(2) It shall be deemed to have come into force on the 12th day of Short title and com- menco- ment.
July, 1969.
60 of 1981.
Amend- ment of section 11,
2. In section 11 of the Industries (Development and Regulation) Act, 1951, after nub-section (2), the following sub-sections shall be added, namely: —
"(3) The application for establishing a new industrial under- taking shall be referred by the Government to a Committee to be known as the Licensing Committee.
(4) The Licensing Committee shall consist of a Chairman who shall be a sitting Judge of the Supreme Court or a High Court and four other Members, three of whom shall be appointed by the Gov-
SEC. 2] THE GAZETTE OP INDIA EXTRAORDINARY 943eminent on the recommendation of the Central Advisory Council and the Development Council and who shall be experts on industrial planning, economics and industrial engineering and the fourth Mem- ber shall be nominated by the Planning Commission.
(5) The Licensing Committee shall be nominated for a period of two years.
(6) The Government shall issue licences on the recommendation of the Licensing Committee.
(7) The Licensing Committee while recommending the issue of licences for industries shall also see that concentration of industries in the hands of individuals or a particular group does not take place and new entrepreneurs and technological talents get due consideration.
(8) The Central Government and the applicants for issue of licences may adduce evidence and submit documents that may be necessary to arrive at a quick decision for issue of licences by the Licensing Com- mittee.
(9) The Licensing Committee shall have all the powers as provided 0 of190& in the Code of Civil Procedure, 1908 for the summoning of witnesses, production of documents and of inspection.
(10) The Licensing Committee shall decide abom the dispersal of industries and it shall recommend the location of industrial undertak- ings to the Government keeping in view—
(i) the interest of the backward States;
(ii) the necessity to remove regional imbalance;
(iii) the availability of raw material, water, electricity and transport; and
(iv) that industries are not located where industrial growth has been concentrated.
(11) The Licensing Committee shall recommend, as far as possible, uniform distribution of the products of such industries, such as electric pumps, tractors, fertilisers etc. which help in the regeneration of econo- mic growth."
3. The rules framed under the Industries (Development and Regula- tion) Act, 1951 shall be modified so as to suit the purposes of this Act.
Rules framed to be modified
944 T HE GAZETTE OF INDIA EXTRAORDINARY [PART IISTATEMENT OF OBJECTS AND REASONS
In recent past the Licensing system of the Government of India has come in for severe criticism in the Press, Parliament, as well as, in the public for showing favours to certain business houses. It has also been pointed out that it has led to concentration of industries in certain par- ticular group of business houses, which is against the declared objectives of Industrial Policy Resolution and of the Constitution.
Under rule 10 of the Registration and Licensing of Industrial Under- takings Rules, 1952, the Licensing Committee consists of officers from the Ministries | Departments of Commerce. Industrial Development, Finance, Steel and Heavy Engineering, Mines and Metals and the Planning Commission etc. The Chairman of such committee is also an officer of the Department of Industrial Development. It has been al- leged that since the Licensing Committee is purely controlled by officers appointed by the Government, it has tended to show favours to certain group or business sometime on its own and sometime at the behest of the Government. Since the Licensing Committee's deliberations take place away from the public gaze it has left a lot of room for unfair treatment. It has failed to take stock of the need of the priority indus- tries in the country and being party dominated has lost the national perspective of industrial development in the country.
By this Bill it is proposed to entrust the work of the Licensing Com- mittee to a body of experts headed by a Judge, which shall take stock of the socio-economic situation and recommend to the Government the licensing of industrial establishments.
NEW DELHI; SAMARENDRA KUNDU.
The 13th August, 1969,
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 945FINANCIAL MEMORANDUM
The Bill envisages formation of a body which will be known as Licensing Committee presided over by a Supreme Court or a High Court judge and shall consist of four other members. The Committee Is likely to transact its business in an open Court room and will also have in camera meetings. It is expected that total sittings of the Licen- sing Committee will not exceed three months a year. It will also have a Secretary and a small secretariat. Therefore the following recurring and non-recurring expenditure is estimated :
Rs. 6,000 1. Judge's allowance (besides his salary)
Rs. 500 p.m.
Allowance of the members at Rs. 2,500
Rs. 30,000 2.
p.m. for 3 months.
Rs. 18,000 Salary for one full-time Secretary at
3.
Rs. 1,500 p.m.
Rs. 18,000 4. Five assistants at Rs. 300 p.m.
Rs. 10,000 Travelling Allowance
Rs. 10,000 Miscellaneous
5. 6.
Rs. 92,000
946 THE GAZETTE OF INDIA EXTRAORDINARY [PART EtHILL JNO. 00 OF lytW.
A Bill further to amend the Child Marriage Restraint Act, 1929.
BE it enacted by Parliament in the Twentieth Year of the Republic of
India as follows:—
1. (1) This Act may be called the Child Marriage Restraint (Amend-
ment) Act, 1969.
Short title and com- mence- ment.
(2) It shall come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint.
19 of 1929.
Amend- ment of section 2, 2. In section 2 of the Child Marriage Restraint Act, 1929 (hereinafter referred to as the principal Act), for clause (a), the following clause shall be substituted, namely:—
*(a) "child" means a person, whether a male or female, who is
under eighteen years of age;'
Amend- ment of section 3, 3. In section 3 of the principal Act, for the words "simple imprison- ment which may extend to fifteen days, or with fine which may extend to one thousand rupees, or with both", the words "imprisonment of either description for a term which may extend to one year, and with fine which may extend to one thousand rupees" shall be substituted,
&c, £] THE GAZETTE OP INDIA EXTRAORDINARY 94?Amend- ment of section 4.
4. In section 4 of the principal Act, for the words "simple imprisonment which may extend to three months and shall also be liable to fine", the words "imprisonment of either description for a term which may extend to one year, and with fine which may extend to one thousand rupees" shall be substituted.
Amend- ment of section 5.
5. In section 5 of the principal Act, for the words "simple imprisonment which may extend to three months and shall also be liable to fine", the words "imprisonment of either description for a term which may extend to one year, and with fine which may extend to one thousand rupees" shall be substituted.
Amend- ment of section 6.
6. In section 6 of the principal Act, in sub-section (1), for the words "simple imprisonment which may extend to three months and shall also be liable to fine", the words "imprisonment of either description for a term which may extend to two years, and with fine which may extend to one thousand rupees" shall be substituted.
7. After section 8 of the principal Act, the following section shall be
inserted, namely:—
Insertion of new section 8A
5 of 1898.
"8A. Offences under sections 3, 4, 5 and 6 of this Act shall be cognizable and shall be tried in accordance with the provisions of the Code of Criminal Procedure, 1898."
Offences under sec- tions 3 to 6 to be cog- nizable.
8. Section 10 of the principal Act shall be omitted.
Omission of section 10.
948 T l iE GAZETTE OF INDIA EXTRAORDINARY [PAH* 11STATEMENT OF OBJECTS AND REASONS
The object of enacting the Child Marriage Restraint Act, 1929 was to restrain the performance of child marriages. Experience has shown that this enactment has not had its desired effect. The main cause for not achieving its object has been that the infringement of its provisions was not declared a cognizable offence nor was the punishment provided there- for deterrent. Thus in order to stop the performance of child marriages, it is necessary to effect certain amendments in the Act and to provide deterrent punishment for offences arising thereunder. It is proposed to make the said offences cognizable. Moreover, no justifiable cause exists for prescribing two different age limits in the definition of the word 'child' in the present Act. The proposed amendments are necessary so that the aims and objects of the main Act are not frustrated.
Hence this Bill. OM PRAKASH TYAOL
NEW DELHI;
The 26th August, 1969.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 949BILL NO. 92 OF 1969
A Bill further to amend the State Bank of India Act, 1955.
BE it enacted by Parliament In the Twentieth Year ojf the Republic of India as follows: —
1. (1) This Act may be called the State Bank of India (Amendment) Act, 1969.
(2) It shall come into force at once.
Short
title and
com-
mence-
ment.
2. In section 17 of the State Bank of India Act, 1955, hereinafter re- 13 of 1030
ferred to as the principal Act), after sub-section (2), the following sub- section shall be added, namely: —
Amend-
ment of
section 17.
" (3) The Central Board shall include representatives of the deposi- tors of the State Bank of India, employees thereof, farmers, workers and artisans, to be elected in such manner as may be specified in the regulations framed under Section 50."
3. In section 19 of the principal Act, in sub-section (I),—
(i) in clause (d), for the word "six", the word "four" shall be sub-
Amend-
ment of
section 19
stituted;
950 THE GAZETTE OF INDIA EXTRAORDINARY [PART II(ii) after clause (f), the following new clause shall be added,
namely:—
" (5) one director each to be elected by the depositors of the Bank, employees thereof, farmers and artisans in such manner as may be prescribed in the regulations framed under section 50."
4. In section 21 of the principal Act, in sub-section (1),—
(i) in clause (c), for the word "six", the word "two" shall be
Amend- ment of section 21.
substituted;
(ii) after clause (e), the following new clause shall be added,
namely: —
"(f) one member each to be elected by the depositors of the bank, employees thereof, farmers and artisans, from that region."
5. After section 43 of the principal Act, the following new sections
shall be inserted, namely: —
Insertion of new sections 43A and 43B.
58 of 196a "43A. Notwithstanding anything contained in any law for the time being in force, including section 36AD of the Banking Laws (Amendment) Act, 1968, the employees of the State Bank of India shall have the right to carry on their legitimate trade Union activities in accordance with the Constitution.
Right of emplo- yees to carry on trade Union activities.
43B. The employees of the State Bank of India below the rank of the officers responsible for policy making shall have the right to become members of political parties of their choice.
Right of emplo- yees to become members of politi- cal par- ties.
Sic. 2] THE GAZETTE OF INDIA EXTRAORDINARY 95]STATEMENT OF OBJECTS AND REASONS
When Lok Sabha was discussing the Banking Companies (Acquisition and Transfer of Undertakings) Bill 1969, the Government felt compelled to accept my amendment to the effect that there should be representation, among others, for bank employees, artisans, farmers and depositors on the Boards of Directors of the nationalised banks.
The State Bank of India is the first nationalised bank in the country. It became a public undertaking as far back as 1955 when the Imperial Bank was nationalised under an Act of Parliament.
When 14 other banks in the public sector are now to have representa- tives from among the bank employees, farmers and depositors, it would be highly anomalous to let the State Bank of India, the first and premier nationalised banking institution, to carry on its affairs without the benefit of participation by those very elements which are vitally concerned with the progress of the banking system in this country.
This Bill seeks to bring the State Bank of India on par with the 14 other recently nationalised banking concerns.
The Bill also seeks to exempt the State Bank employees from the reactionary provision of section 36AD of the Banking Laws (Amend- ment) Act, 1968, and to restore to the employees of this foremost nationalised banking institution their trade union rights conferred by our Constitution.
NBW DELHI; MADHU LIMAYE.
The 16th September, 1969.
952 THE GAZETTE OF INDIA EXTRAORDINARY [PART IIMEMORANDUM REGARDING DELEGATED LEGISLATION
•Clauses 2 and 3 *>f the Bill empower the Central Government to make regulations to prcwide for the election of representatives of depositors etc. to the Central Board. The delegation of legislative power Is of a normal character. Such power already vests in the Central Government under section 50 of the parent Act.
SKC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 953BILL NO. 90 OF 1969
A Bill further to amend the Companies Act, 1956.
BE it enacted by Parliament in the Twentieth Year of the Republic of
India &A follows: —
1. (1) This Act may be called the Companies (Amendment) Act, 1969.
(2) It shall come into force on such date as the Central Government
may, by notification in the Official Gazette, appoint.
Short title and com- mence- ment.
l of 1996.
2. In section 252 of the Companies Act, 1956 (hereinafter referred to as the principal Act), after sub-section (3), the following sub-section shall be inserted, namely: —
Amend- ment of section 252.
"(4) At least one-third of the directors shall be elected by the employees of the company, provided that there shall be at least one
954 T HE GAZETTE OF INDIA EXTRAORDINARY [PART IIrepresentative so elected on the Board of every public company in such manner as may be prescribed by the Central Government by notification in the Official Gazette."
3. After section 255 of the principal Act, the following new section
shall be inserted, namely: —
Insertion of new section 2B5A.
Election of direc- tors to be by ballot.
"255A. The election of directors other than those to be elected by the employees of the public company under section 255 shall be held by ballot and by distributive vote, that is to say, every shareholder at this meeting shall be entitled to cast as many votes as there are directors to be elected by the shareholders at the annual general meeting of the company so as to secure representation for minority opinion among the general body of the shareholders."
4. In section 275 of the principal Act, for the words "twenty compa-
nies", the words "ten companies" shall be substituted.
Amend- ment Of section 275.
Sic. 2] THE GAZETTE OF INDIA EXTRAORDINARY 955STATEMENT OF OBJECTS AND REASONS
During the discussion on the Banking Companies (Acquisition and Transfer of Undertakings) Bill, 1969, I moved an amendment seeking to provide representation, among others, to bank employees, on the Board of Directors of the 14 nationalised banks. The amendment secured enthu- siastic support in Parliament and was ultimately accepted by the Govern- ment. Similarly, in a discussion on the Calling Attention Notice on the Bennett Coleman Company, which publishes the Times of India Group of newspapers, I made a suggestion that although this was a public limit- ed company in the private sector, its Board should contain representatives of the working journalists end other employees of the Company. The Minister of State described the suggestion as excellent and promised to consider it.
The principle of workers' participation in management must be applied not only to public sector undertakings but should also be introduced (in public limited companies) in the private sector as well. Participation by the elected representatives of the employees in the top management of the companies will not only ect as a check on the malpractices that are rampant but will also enable the workers to put across their point of view at the highest level, and acquire an intimate knowledge of the work- ing of the company, including its financial condition, without which neither will there be a sense of responsibility among the workers nor will they be able to make a useful and constructive contribution to the increas- ing of company's efficiency and productivity per man hour of labour.
This Bill makes a beginning in this regard.
The Bill also provides for representation of minority opinion on the Boards of Directors of the Company by changing the system of voting at the election of these directors. This principle, too, has been widely ac- claimed in progressive business circles, end its enactment into law Is now overdue.
The Bill further seeks to reduce concentration of economic and indus- trial power in the hands of a few persons by reducing the number of directorships which any single individual can hold from 20 to 10.
Altogether these three amendments will help further to democratise the structure of company management end also reduce concentration of money power in the hands of a few persons.
NEW DELHI; MADHU LIMAYE.
The 16th September, 1969.
956 THE GAZETTE OF INDIA EXTRAORDINARY [PAST IIMEMORANDUM REGARDING DELEGATED LEGISLATION
The Bill provides for the framing of rules under section 252 of the Companies Act, 1956, With regard to representation of the employees of the company.
The delegation of legislative power is, therafore, of a normal character.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 957BiLji Np. 89 OF 1909
A Bill further to amend the L,ije Insurance Corporation Act, 1956,
BE it enacted by Parliament in the Twentieth Year of the Republic
of India as follows: —
1. (1) This Act may be called the Life Insurance Corporation (Am-
endment) Act, 1969.
Short title and com- mence- ment.
(2) It shall come into force at once.
31 Qf 1959,
2. In section 19 of the Life Insurance Corporation Act, 1956 (herein-
after referred to as the principal Act) —
Amend- ment of section 19.
(1) in sub-section (1), for the words "five of its members", the follow-
ing words shall be substituted, namely: —
"seven members, five of whom shall be members of the Corpora- tion and one each shall be elected by its employees and policy- holders as may be specified in the Rules",
958 THE GAZETTE OF INDIA EXTRAORDINARY [PART II(2) In sub-section (2), for the words "of whom not less than three shall be members of the Corporation" the following words shall be sub- stituted, namely: —
"of whom two shall be members of the Corporation and one each shall be elected by the employees and policy-holders of the Cor- poration".
3. In section 23 of the principal Act, after sub-section (2), the follow-
ing sub-sections shall be added, namely: —
Amend- ment of section 23.
"(3) No employee of the Corporation shall be suspended, dis- charged, dismissed or otherwise proceeded against, without holding a proper enquiry and without the employee proceeded against being given an opportunity to explain his conduct;
(4) The employees of the Corporation below the rank of policy makers shall have the right to become members of political parties of their choice."
4. In section 29 of the principal Act, after the words "by the Central
Government" the following words shall be added, namely: —
Amend- ment of section 29.
"and Parliament may proceed to discuss these Reports at least once every two years, and further that the suggestions made dur- ing the course of these discussions, shall be forwarded by the Government to the Corporation for its consideration and action."
5. After section 37 of the principal Act, the following new section shall
be inserted, namely:—
Insertion of sec- tion S7A.
Disputes relating to age of policy- holders.
"37A. All disputes relating to the age of any policy-holder shall be decided expeditiously and the age accepted by the Corpora- tion shall be communicated to the policy holder concerned within at least six months from the payment by him of the first instalment of the premium on his policy and the same shell be binding on the Corporation In the settlement of alj claims arising out of the policy concerned/'
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 959STATEMENT OF OBJECTS AND REASONS
During the discussion on the Banking Companies (Acquisition and Transfer of Undertakings) Bill, 1969 in the Lok Sabha, the working class movement secured a significant victory inasmuch as the Government was forced to accept my amendment relating to the representation of workers on the Boards of Directors of the nationalised banks.
The Life Insurance Corporation is also a nationalised undertaking, and has in addition, the monopoly in so far as the life insurance business is concerned. Although the policy-holders and the employees of the Cor- poration are the two elements which are vitally concerned with the prog- ress and development of the Corporation, under the existing Act there ia no provision at all for the association of the representatives of these ele- ments with the management of this premier insurance concern.
This Bill seeks to bring management of the Life Insurance Corpora- tion in harmony with the modern principle of workers' association with and participation in management.
The Bill also seeks to do away by an express provision of the Act certain reactionary provisions in the rules which provide for summary disciplinary action against the employees of the Corporation. These actions patently violate the principles of natural justice and should have no place in the regulations of a forward-looking public undertaking.
This Bill provides that Reports of the Life Insurance Corporation should not only be laid before the Parliament, but Parliament should at least hold a bienniel discussion on these reports.
There have been serious complaints about the claims arising out of the Insurance policies due to the uncertainty about the actual age of the policy-holder. It is the duty of the Corporation to ascertain the correct age and in case there is a certain uncertainty about it, to quickly decide what the actual age is, and to communicate it to the policy-holder con- cerned. This is to obviate harassment of policy-holders and unnecessary correspondence and litigation arising out of the claims of the policy- holders or their heirs.
NEW DELHI; MADHU LIMAYE.
The 16th September, 1969.
960 THE GAZETTE OF INDIA EXTRAORDINARY [PART nMEMORANDUM REGARDING DELEGATED LEGISLATION
The Bill provides for the framing of rules under section 19 of the Life Insurance Corporation Act, 1956 concerning the election of members of the Corporation.
The delegation of legislative power is, therefore, of a normal character.
SKC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 961BILL NO. 100 OP 1969
A Bill to amend the Salaries and Allowances of Ministers Act, 1952
BE It enacted by Parliament in the Twentieth Year of the Republic of
India as follows: —
1. (1) This Act may be called the Salaries and Allowances of Minis-
ters (Amendment) Act, 1969.
(2) It shall come into force from the first day of April, 1970.
Short title and com- mence- ment.
2. In section 3 of the Salaries and Allowances of Ministers Act, 1952 58 of 1962.
(hereinafter referred to as the principal Act),—
Amend- ment Of section 3.
(i) for the words "two thousand two hundred and fifty", the
words "one thousand five hundred" shall be substituted; and
(ii) for the words "one thousand seven hundred and fifty", the
words "one thousand two hundred and fifty" shall be substituted.
3. (1) In section 4 of the principal Act,—
Amend- ment of section 4.
(i) for the words "without payment of rent", the words "on pay- ment of rent and maintenance, electricity and water charges" shall be substituted;
962 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT n(tt) the words "and no charge shall fall on the Minister personally
In respect of the maintenance of such residence" shall be omitted.
(2) Explanation to section 4 shall be omitted.
4 Section 5 of the principal Act shall be omitted.
Omission of section 5.
Amend- ment of •ection 6.
5. In section 6 of the principal Act, in part (a) of sub-Section (1), for the words "members of his family and for the transport of his and his fami- ly's effects", the words "spouse and for the transport of his and the spouce's effects" shall be substituted.
6. The Central Government may, by notification in the Official Gazette, make rules under section 11 of the principal Act for Implementation of the provisions contained in sections 3 and 5 of this Act,
Framing of rules under section 11.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 963STATEMENT OF OBJECTS AND REASONS
The object of the Bill Is to amend the Salaries and Allowances of Minis- ters Act" 1952 with a view to satisfy public opinion and effect economy in the expenditure of the Government.
NEW DELHI; YASHWANT SINGH KUSHWAH The 3rd October, 1969.
964 THE GAZETTE OF INDIA EXTRAORDINARY [PART IIMEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 6 of the Bill empowers the Central Government for framing of rules for implementation of the provisions contained in clauses 3 and 5 of the Bill. The delegation of power is of a normal character. Moreover the power to make rules already exists under section 11 of the principal Act,
&c. i] TllE GAZETTE OF INDIA EXTRAORDINARY 963.DILL no. "* OF iaoy
A Bill further to amend the Constitution of India.
BE it enacted by Parliament in the Twentieth Year of the Republic
of India as follows: —
1. (1) This Act may be called the Constitution (Amendment) Act
1969.
(2) It shall come into force at once.
Short title and com- mence- ment.
2. In article 15 of the Constitution,—
(a) in clause (1), the word "caste," shall be omitted;
Amend- ment of articl* 15.
(b) in clause (2), the word "caste," shall be omitted; and
(c) in clause (4), for the words "Scheduled Castes", the words
"Scheduled Classes" shall be substituted.
966 THE GAZETTE OF INDIA EXTRAORDINARY [PAHT II3. In article 16 of the Constitution, in clause (2), the word "caste,"
shall be omitted.
Amend- ment of article 16.
4, For article 17 of the Constitution, the following article shall be
substituted, namely,—
Substitu- tion of article 17.
'17. Caste and "Untouchabihty" are abolished and their practice in any form is forbidden. The enforcement of any disability aris- ing out of caste or "Untouchability" shall be an offence punishable In accordance with law.'
Abolition of Caste and Un- touch- ability.
5. In article 23 of the Constitution, in clause (2), the words "caste or"
shall be omitted.
Amend- ment of article 23.
6. In article 29 of the Constitution, in clause (2), the word "caste,"
shall be omitted.
Amend- ment of article 29.
7. In article 46 of the Constitution, for the words "Scheduled Castes",
the words "Scheduled Classes" shall be substituted.
Amend- ment of article 46.
8. In article 164 of the Constitution, in proviso to clause (1), for the words "Scheduled Castes", the words "Scheduled Classes" shall be substi- tuted.
Amend- ment of article 164.
9. In article 330 of the Constitution, for the words "Scheduled Castes" wherever they occur, the words "Scheduled Classes" shall be sub- stituted.
Amend- ment of article 330.
10. In article 332 of the Constitution, for the words "Scheduled Castes" wherever they occur, the words "Scheduled Classes" shall be substituted.
Amend- ment of article 332.
11. In article 334 of the Constitution, in clause (a), for the words "Scheduled Castes", the words "Scheduled Classes" shall be substituted.
Amend- ment of article 334.
12. In article 335 of the Constitution, for the words "Scheduled
Castes", the words "Scheduled Classes" shall be substituted.
13. In article 338 of the Constitution, for the words "Scheduled Castes" wherever they occur, the words "Scheduled Classes" shall be substituted.
Amend- ment of article 330. Amend- ment of article 338.
14. In article 341 of the Constitution,—
(a) for the words "castes" wherever it occurs, the word "classes"
shall be substituted;
Amend- ment of article 341.
(b) for the words "Scheduled Castes" wherever they occur, the
words "Scheduled Classes" shall be substituted; and
(c) for the word "caste", the word "class" shall be substituted.
15. In article 366 of the Constitution, in clause (24), for the words "Scheduled Castes" and "castes" wherever they occur, the words "Sche- duled Classes" and "classes" shall be substituted respectively.
Amend- ment of article 3M.
SBC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 967STATEMENT OP OBJECTS AND REASONS
Caste is anti-social, anti-democratic and anti-national. The statutory recognition to castes provided in various articles of the Constitution is against the very letter and spirit of the Constitution. The Constitution makers visualised the establishment of a casteless society and the leaders have also been proclaiming that there has to be such a society in the country. This objective can never be realised unless caste as an institu- tion is derecognised by deleting it from the .Constitution.
Certain safeguards are provided in the Constitution for Scheduled Castes as they are the weakest section of the Society. Those safeguards will have to continue as long as they are required and the Scheduled Castes may be re-designated aa Scheduled Classes to enable them to take advantage of these safeguards.
Untouchabillty already stands abolished In the Constitution, but it being only an offshoot or a concomitant of the caste system has not been and cannot be actually abolished unless and until caste Is also abolished.
Hence tfali Bin.
N"w DKLHI;
The 10th October, 1969. 3. M. SIDDAYYA.
968 THE GAZETTE OF INDIA EXTRAORDINARY [PART IIBILL N O. 88 OF 1969
A Bill farther to amend the Constitution of India
BE it enacted by Parliament in the Twentieth Year of the Republic
of India as follows:—
1. This Act may be called the Constitution (Amendment) Act, I960. Short
title.
2. After article 24 of the Constitution, the following new article shall
be inserted: —
Insertion of new article 24A.
Right of labourers to stride, "24A. Labourers in the industrial and agricultural sectors shall have the right to strike if their grievances are not removed by mutual discussions with the employers."
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 569STATEMENT OF OBJECTS AND REASONS
The full flowering of democracy is retarded if the workers, be they in the industrial or in the agricultural sectors and be they in the private or In the public sectors, are denied the right to strike if their economic or other grievances in their working process are not removed by mutual discussion with the employers. This right to strike needs to be enshrined explicitly in the Constitution of a democratic set-up.
The full flowering of democracy is another name of socialism, accept- ed by our people and Parliament as the realizable goal for social progress.
Hence the Bill for making the Constitution compatible with that ideal.
NEW DELHI;
SHIVA CHANPRA JHA.
77" 13th October, I960.
970 THE GAZETTE OF INDIA EXTRAORDINARY [PART IIBILL NO. 99 or 1969
A Bill to restrict the conversion of religion of minors.
Be it enacted by Parliament in the Twentieth Year of the Republic
of India as follows:—
1. (1) This Act may be called the Prevention of Conversion Act, 1069.
(2) It shall extend to the whole of India.
(3) It shall come into force on such date as the Central Government Short title, extent and Com- mence- ment. may, by notification in the Official Gazette, appoint.
2. In this Act, unless the context otherwise require!*—
Defini- tions
(a) "follower" means a person who has faith In any religion and
follows it;
(b) "major" means a person who has attained the age of 21 yean;
(c) "religion" means any religion prevalent in India which is
followed by any citizen of India.
SET 2] THE GAZETTE OF INDIA EXTRAORDINARY 9713. The religion of every minor Indian citizen shall be one which is followed by his parents and it shall be recorded accordingly.
Religion of a minor.
4. (I) No minor shall have the right to change his religion.
(2) If a minor of his own accord or under any Influence or allure-
No right
to change
religion.
ment changes his parental religion or declares that he has already changed his religion, such an act shall be treated as illegal.
5. Any person who converts a minor person or attempts to convert him or assists in his conversion or exerts pressure for his conversion or gives any allurement for his conversion or gives any suggestion for his conversion, shall commit an offence punishable with rigorous imprison- ment for a term which may extend to five years or with fine which may extend to ten thousand rupees or with both.
Conver- sion of minor by a person to be a punish- able offence.
6. Any major person who wants to change his religion shall have to obtain the permission of the District Magistrate of his area by submitting an affidavit, as in the Schedule, before the said District Magistrate.
Right of a
major to
change
his reli-
gion.
1. (1) The Central Government shall have power to make rules to carry out the purposes of this Act.
Power
to make
rules.
(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days, which may be comprised in one session or in two successive sessions, and if, before the expiry of the session In which it is so laid or the session immediately follow- ing, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modiiication or annulment shall be without prejudice to the validity of anything previously done under that rule.
gf2 THE GAZETTE OF INDIA EXTRAORDINARY [PART itSCHEDULE
(See section 6)
AFFIDAVIT
I s|o of years of age, resident
of
declare that so far I have been
following
(.name of religion). But now I
am wilfully, without any pressure or allurement, changing my religion
and am embracing
(name of religion).
Signature of applicant.
Signatures of witnesses along with full name and address.
(1) .
(2)
(3) —
( 4) __ , —
&3C. £] T±IE GAZETTE OF INDIA EXTRAORDINARY 973STATEMENT OF OBJECTS AND REASONS
The purpose of this Bill is to check the conversion of religion of mthor'boys and girls. In every corner of India many persons and orga- nisations are engaged in converting minor persons. Conversion of a minor in a state of ignorance, through allurement or pressure or in any other way, is improper, unjustified and undesirable. The present situa- tion in the country has created serious problems. It is, therefore, essen- tial to check this inhuman act.
Hence the Bill.
NEW DELHI; YA3HWANT SINGH KUSHWAH.
The 15th October, 1969.
974 THE GAZETTE OF INDIA EXTRAORDltfAfttf t?AHT ttMEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 7 of the Bill empowers the Central Government to make rules to carry out the purposes of the Act. The rule making power relates to administrative procedure only and is of a normal character.
SEC. 2] THE GAZETTE OF INDIA EXTBAOKDINABY 97sBILL NO. 93 OF 1969
A Bill to provide for the formation of an Authority for the purpose of
setting up an atomic plant in Bihar and for matters connected therewith.
BE it enacted by Parliament in the Twentieth Year of the Republic
of India as follows: —
1. (1) This Act may be called the Bihar Atomic Authority Act, 1969
(2) It shall come into force at once.
2. There shall he set up an Authority to be known as the Bihar Atomic
Authority which shall consist of the following twenty-one Members —
(a) eighteen competent scientists, nine to be nominated by the
Bihar Government and nine by the Central Government;
Short title and com- mence- ment. Setting up of Bihar Atomic Autho- rity, (b) the Prime Minister of India ex-o^icio;
(c) the Chief Minister of Bihar ex-officio or in his absence the
Governor of Bihar;
(d) one member to be nominated by the Central Government in consultation with the Bihar Government who shall be the Director of the Authority.
976 THE GAZETTE OF INDIA EXTRAORDINARY \PARI II'\. Except the Prime Minister of India and the Chief Minister, or the Governor of Bihar, as the case may be, the members of the Authority shall be paid suitable monthly salaries.
Emolu- ments of mem- bers of the Autho. rity.
Functions of the Autho- rity.
4. The function of the Authority shall be to set up an atomic plant near Jaduguda in Hazaribagh district of Bihar, or at any other place in Bihar, as the members of the Authority may decide, with a view to carry on further nuclear research.
5. The decisions of the Authority shall be arrived at by a majority of the members present and voting but in case of equality of votes the Chairman of the meeting shall h#ve a casting vote.
Mode of decision "f th" Autho-
S'li. 2] THE GAZETTE OF INDIA EXTRAORDINARY 977STATEMENT OF OBJECTS AND REASONS
The State of Bihar is the richest area in India and one of the richest areas in the world in nuclear raw materials. The Jaduguda area in Hazaribagh district is the richest uranium reservoir in the world. But despite this, it is a great injustice done to Bihar if it is deprived of Its birth right to have an atomic plant of its own.
Hence the Bill for establishing an organisation, called the Bihar Atomic Authority, which will proceed with the steps for setting up an atomic plant in Bihar and for carrying out further intensive unclear researches.
NEW DELHI; SHIVA CHANDRA JHA.
The 18th October, 1969.
978 THE GAZETTE OF INDIA EXTRAORDINARY [PART IIFINANCIAL MEMORANDUM
Clause 2 of the Bill seeks to set up the Bihar Atomic Authority and clause 3 provides for payment of salaries to the members of the Authority. Clause 4 of the Bill seeks to set up an atomic plant with a view to carry out nuclear research. It is estimated that a sum of Rs. 10 crores will be required from the Consolidated Fund of India to set up the authority and the atomic plant. A sum of about Rs. 2 crores per year will b£ required for meeting the recurring expenditure,
£&, 2J THE GAZETTE OF INDIA EXTRAORDINARY 979BILL N O. 95 OF 1969
A Bill to regulate legislation having retrospective effect
BE it enacted by Parliament in the Twentieth Year of the Republic
of India as follows: —
1. (1) This Act may be called the Retrospective Legislation (Regu-
lation) Act, 1969.
(2) It shall extend to the whole di India.
Short title and conii itidrice- ttiettt.
(3) It shall ddnle into force at once.
i. No la"w having a retrospective oi retroactive effect, enacted by Parliament, shall be valid Unless the mernbers voting in its favour in edCh Etouse of Parliament constitute fifty per cent, of the total men'bp./ • •hip of that House.
ftegulSi tioil of retfoS- pective legisla* tloft.
980 THE GAZ1S1T.E Ol" INDLA EXTRAORDINARY I PART itSTATEMENT OF OBJECTS AND REASONS
It has been generally acknowledged that legislation having retros- pective or retroactive effect is bad, though the Constitution has not pro- mbited it altogether except in legislation imposing penalties.
But experience has shown that even in other cases, where citizens proceed and enter into transactions, Government have often been resort- ing to legislation with retrospective effect, depriving citizens of the rights earned in a lawful way. The Government are doing this in many cases on the plea that they would otherwise be put to financial loss. This plea has no basis. Government's remedy lies in amending the law in a suitable manner, but not in resorting to retrospective legislation to vali- date action taken under the invalidated law without caring for citizens' rights or the adverse financial effects it is likely to have on them.
It is conceded that there may be an extraordinary occasion when Government might have set right a mistake. In such cases, power may be given to Government to pass retrospective legislation; but the power must be hedged in by a proper safeguard, which itself does not become another point of legal controversy. The object can be achieved by pres- cribing the strength of the vote necessaiy to pass legislation with retros- pective effect. Such a requirement will not prevent the passing of legis- lation with retrospective effect, but will prevent any hasty legislation, which seeks to nullify citizens' lights or judgments of Courts. The liii. intends to give effect to this object.
TENNETI VISWANATHAM.
NEW DELHI;
The 18th October, 1969.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARY 981BILL NO. 96 OF 1969
A Bill to provide jor a ceiling on urban property.
BE it enacted by Parliament in the Twentieth Year of the Republic of India as follows: —
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Ceiling on Urban Property Act, Short
1969. title
and
com-
(2) It shall come into force on such date as the Central Government mence-
may, by notification in the Official Gazette, appoint. ment.
982 THE GAZETTE OF INDIA EXTRAORDINARY [PART II
2. In this Act, unless the context otherwise requires,—
Defini- tions.
(a) "annual letting value" means the bonaflde letting value of
41 Of 1961.
a property as defined in the Income Tax Act, 1961;
(b) "appointed day" means the date notified by the Central Government in the Official Gazette as the day on which this Act shall come into force;
(c) "business premises" means premises used for purposes of carrying on business, but shall not include any property held for letting out or for sale, or for any manner of dealing in property;
43 of 1961.
(d) "person" means an individual, a Hindu undivided family, a registered or an unregistered partnership firm, a public or private limited liability company, or an association of persons, as defined in the Income-Tax Act, 1961.
(e) "urban areas" means an area notified as being the area of a Town Committee, Municipality, City Corporation or a Contonment Board, under any law for the time being in force in any State of the Union of India or in any Union territory;
(f) "urban property" means all residential buildings, flats, busi- ness premises, godowns, garages, offices, shops, house sites and shop sites, developed or undeveloped, and vacant land within the limits of a duly constituted Municipality, Town Committee, Contonment Board, or a City Corporation of any city or town in the territory of the Union of India, with a population exceeding 50,000 as per the last census;
1 of 1950.
(g) "Urban Property Corporation" means a Corporation consti- tuted under this Act by the Central Government and incorporated under the Companies Act, 1956, in which the Central Government shall hold not less than 51 per cent of the equity capital.
CHAPTER II
URBAN PROPERTY CORPORATION
1 of 1956.
Forma- tion of Urban Property- Corpora- tions.
3. There shall immediately be constituted for every urban area in India with a population exceeding 50,000 an Urban Property Corporation with liability limited by shares and Incorporated under the Companies Act, 1956, with the object of acquiring, holding, developing, building, constructing, demolishing, reconstructing, altering, selling and renting urban property i.e., residential houses, buildings, flats, business premises, godowns, garages, offices, shops, vacant lands and vacant sites developed or undeveloped in the urban area.
4. (1) The Urban Property Corporation shall build residential houses, buildings, flats, business premises, offices, shops, etc., from time to time and sell or lease them to prospective purchasers or lessees under such terms and conditions as may be determined from time to time.
Func- tions of Urban Property Corpora- tions.
(2) The Urban Property Corporation shall acquire, develop and offer for sale or lease from time to time residential and commercial sites under such terms and conditions as may be determined from time to time.
SEC. i] THE GAZETTE OF INDIA EXTRAORDINARY 9835. (2) The Central Government shall subscribe to and hold, from the date of incorporation of such an Urban Property Corporation, not less than 51 per cent of the equity shares in each of such Corporations.
Capital of the Corpora- tions.
(2) The Central Government may, by rules made under this Act, ofEer for subscription to State Governments, Town Committees, Municipalities, City Corporations, Contonment Boards, the Unit Trust of India, the State Bank of India and other nationalised Banks, Co-operative Central Banks, Land Mortgage Banks and/or individuals, shares in the balance of the equity capital of each of such Urban Property Corporations.
(3) The Urban Property Corporation, may with the approval of the Central Government obtain loans, float and issue redeemable preference shares and debentures, for furthering the objects of the Corporation.
6. (1) The Central Government may, by rules made under +his Act, determine the mode and manner of the management of such Urban Pro- perty Corporations and for constituting the respective Boards of Manage- ment of such Corporations.
Manage- ment of the Corpora, tlons.
(2) The Central Government may issue directions to the Urban Pro- perty Corporations on the policy and/or the administration of the Cor- poration.
CHAPTER III
CEILING ON URBAN PROPERTY
7. As from the appointed day, all urban property in every urban* area in India owned or held by any person shall cease to be the property of the owner and shall vest in the respective Urban Property Corpora- tion except—
Vesting of Urban property in the Corpo. rations.
Exemp- tions.
(a) either one residential house or flat in any urban area in India used solely for the residential purposes of the person who owns such house or flat, or
one vacant house site developed or undeveloped in one urban area;
(b) urban property owned and used for business purposes, or for the residence of the employees of the business of any person;
(c) urban property owned by the Central Government, State Government, Town Committees, Municipalities, City Corporations, Cantonment Boards, Limited Liability Companies (Public or Pri- vate), recognised public charitable trusts and religious, medical, educational and charitable institutions;
(d) a farmhouse or residential house adjacent to an agricultural farm or livestock farm and being part thereof where such house or building or a part thereof falls within the limits of an urban area;
(e) land normally used as agricultural land even though situated in an urban area, provided, however, that where such land ceases to be used for agricultural purposes at a later date such land shall from such date vest in the concerned Urban Property Corporation.
984 THE GAZETTE OF INDIA EXTRAORDINARY [PART II(2) In addition to the property exempted under sub-section (I), the following property shall also be exempted from being vested in an Urban Property Corporation where—
(a) the total market value of all other urban property owned by a person, wherever situated m India, does not exceed rupees three lakhs on the appointed day, or
(b) the total annual letting value of all other urban property, wherever situated in India, owned by a person does not exceed rupees sixteen thousand on the appointed day, and
(c) where the value of all such urban property owned by a person exceeds rupees three lakhs or where the annual letting value of all such property owned by a person exceeds rupees sixteen thousand, only property in excess of rupees three lakhs in value or rupees sixteen thousand annual letting value shall cease to be the person's property and vest in the Urban Property Corporation.
8. On the death of a person owning urban property under clause (a) Disposal of proporty of a person in the event of his death.
of sub-section 1 of section 7, occurring after the commencement of this Act, the successors to the estate of the deceased individually or severally shall have the option to retain the said property of the deceased for their own personal residence, use and occupation, provided they do not own urban property under clause (a) of sub-section (1) of section 7 unless they are willing to sell the property they already own under that clause and retain the said property of the deceased.
Prohibi- tion of renting urban property.
9. An urban property or any part thereof, exempt under clause (a) of sub-section (1) of section 7 shall not be rented out without the prior approval and permission of the Urban Property Corporation of the urban area wherein such property is located, except where the owner happens to be,—
(a) a widow or a person physically incapacitated from engaging
In remunerative employment,
(b) a minor,
(c) a person employed in the Armed Forces of the Union of
India,
(d) a person who Is an employee of the State or Central Gov-
ernment,
(e) a person who Is for the time being employed or has his usual place of residence or business outside the urban area where he owns residential urban property,
(f) a person who is more than sixty years of age or a person who has no other known source of Income or livelihood either agri- cultural or non-asricultural.
10. When a person holding urban property exempt under clauses (a)
and (b) of sub-section (1) or under sub-section (2) of section 7 offers to sell such property to the Urban Property Corporation of the urban area where the property Is located, the said Urban Property Corporation shall be bound to purchase the said property.
Corpo- rationa bound to pur- chase the property offered.
SEC, 2] THE GAZETTE OF INDIA EXTRAORDINARY 98511. No person retaining urban property under clauses (a) and (b) Sale of property- retained under section 7.
of sub-section (I) or under sub-section (2) of section 7 shall sell such urban property to any one except to a person who does not hold any urban property under clauses (a) and (b) of sub-section (1) of section 7 or to the Urban Property Corporation of the Urban area in which such property is situated.
12. (1) For the purpose of purchase by the Urban Property Corpora- tion under section 10 or section 11, payment of the price shall be in cash and not by bonds.
(2) The value for the purposes of such purchase shall be—
Mode of pay- ment of price of the property.
(a) determined by mutual agreement, or
(b) the valuation adopted in the latest completed wealth-tax assessment of the seller immediately preceding the year of sale, or
(c) the value as determined by an approved valuer in the case
of a seller who is not a wealth-tax assessee.
13. Where an urban area is extended by notification under the appro- priate law, the urban property in such extended area subject to the provisions of sub-sections (1) and (2) of section 7 above shall vest in the concerned Urban Property Corporation on the date on which such extension of area becomes effective under the relevant law.
Property In extended urban area to vest in the Cor- porations.
14. Where a new urban area is created by notification under an appro- priate law, an Urban Property Corporation for the newly created urban area shall also be simultaneously constituted under this Act and on the day the new urban area comes into existence, all urban property in such newly created urban area shall subject to provisions of sub-sections (1) and (2) of section 7 vest in
Property in new urban area to vest in new Cor. poration.
CHAPTER IV
COMPENSATION FOR ACQUISITION OF PROPERTY
15. (1) There shall be paid for all urban property vesting in any urban
Property Corporation under this Act for compensation;
Compen- sation and th$ mode of its deter- mination.
(2) The quantum of such compensation shall be determined by rules made under this Act but in no case shall such compensation be less than the market value, provided, however, where there is doubt or dispute about the market value the compensation determined shall not be less than sixteen times the annual letting value or less than the value adopted by the Wealth-Tax Officer for the latest completed wealth tax assess- ment immediately preceding the appointed day.
16. (1) The compensation shall be paid in cash or by way of nego- tiable and marketable bonds redeemable not later than 20 years after the appointed day carrying an interest of 5& per cent per annum or both cash and bonds in such proportion as may be determined under the rules made under this Act.
Mode and time for payment of compen- sation.
(2) The compensation payable for property vesting in the Urban Property Corporations consequent to sections 13 and 14 of this Act, shall be determined and paid within twelve months from the date of such Testing of the property in the respective Urban Property Corporations,
986 THE GAZETTE OF INDIA EXTRAORDINARY [PART IIprovided where such compensation is paid in Bonds such Bonds shall he negotiable and remarkable and redeemable not later than twelve years from the date of vesting of the property in the Urban Property Corpora- tion and will carry on interest not lower than 5J per cent per annum,
State, ments o* property to be filed to facilitate payment of compen- sation
17. (1) Within thirty days from the commencement of this Act or where urban property comes to be vested in the Urban Property Corporation in consequence of sections 13 and 14, within thirty days of such vesting, every person shall file with the Urban Property Corporation of the urban area in which such person owns or holds urban property, a statement of all urban property owned or held by him in any urban area in India, giving full particulars of area, approximate market value, annual letting value of buildings and such other details as may be determined by rules made under this Act to facilitate early payment of compensation.
(2) The compensation payable under this Act shall be determined and paid within twelve months from the appointed date, where state- ments have been filed under section 17 (1) and where there ha? been delay in flllng of such statements, within twelve months from the date of the filing of such statements.
CHAPTER V
MISCELLANEOUS
Penalty lor con- cealing urban property.
18. (1) Where the ownership of urban property is deliberately con- cealed under "Benami holding" and an attempt is made to avoid coming under the operation of this Act, such property, when discovered and malafide proved shall stand vested in the concerned Urban Property Cor- poration and no compensation shall be payable for such urban property.
43 of 1961.
(2) Where the spouse or the minor children of any person holding urban property also hold urban property, and where for purposes of Income-tax assessment under the Income Tax Act, 1961, they are, prior to the commencement of this Act, being separately assessed, the respec- tive urban property of each such person shall be treated as that per- son's own property and shall not be aggregated for purposes of this Act.
19. The Urban Property Corporation shall pay annually for twenty years from the appointed day or the date of vesting of urban property in them, into a separate fund maintained with the Reserve Bank of India called the "Urban Property Bonds Redemption Fund" a sum of not less than 5 per cent of the face value of the bonds given as compensation for the urban property vesting in the particular Urban Property Corporation.
Creation of urban Property Bonds Redemp- tion Fund.
20. (I) The Central Government may, by notification in the Official
Gazette, make rules for carrying out the purposes of this Act.
Power to make rules.
(2) Every rule made under this section shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two successive sessions, and if before the expiry of the session In which it is so laid or the session immediately following, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.
987 SKC. 2] THE GAZETTE OF INDIA EXTRAORDINARYSTATEMENT OF OBJECTS AND REASONS
To discourage speculation in land and buildings and | or the creation or absorption of unaccountable or tax-evaded money and further to enable planned and scientific development of urban areas it is considered necessary to limit urban property holdings and take over the rest by payment of compensation.
Hence the Bill.
NEW DELHI.
SHARDA MUKERJEE.
988 THE GAZETTE OF INDIA EXTRAORDINARY [PABT IIFINANCIAL MEMORANDUM
Clause 5(1) of the Bill provides for the Central Government holding 51 per cent equity capital in each of the Urban Property Corporation. Under clause 3, 765 such corporations would have to be constituted. It 1B not possible at this stage to indicate the precise amount of investment required but it is estimated that a provision of Rs. 200 crores from the Consolidated Fund of India would be necessary to constitute and register all these Corporations.
2. Clauses 15 and 16 provide that compensation shall be paid for all
urban property vesting in the Urban Property Corporation on the basis of market value. The compensation is payable in the form of cash or marketable Central Government securities to be issued at par. Com- pensation will be payable with reference to actual value. The value of these properties has to be ascertained after an investigation and scrutiny and it is not possible to indicate the precise amount of the compensation which will be payable by the Central Government but it is roughly esti- mated that such compensation payable may be about Rs. 1000 crores. This amount may have to be paid by the Central Government over a period of two or three years, but it is not possible to indicate at this stage the exact quantum of compensation that may have to be disbursed in the current or the following financial year.
3. As regards recurring expenditure this will arise out of interest on Government securities paid for compensation. The rate of interest specified in the Bill is 5.50 per cent for a maturity of twenty years. On this basis the amount of interest liability every year will be Rs. 55 crores.
SEC. 2] THE GAZETTE OF INDIA EXTRAORDINARYMEMORANDUM REGARDING DELEGATED LEGISLATION
Clause 20 of the Bill empowers the Central Government to make rules for carrying out the purposes of the Act. The matters In respect of which such rules may be made, inter-alia, relate to offering of equity capital in the Urban Property Corporations for subscription, determining the mode and manner of their management, constitution of the Boards of manage- ment, issue of direction on policy and administration and determining the quantum of compensation and mode of its payment as also the propor- tion of cash and bonds as well as the forn\ manner and details of state- ments to be filed by persons.
The delegation of power is of a normal character.
S. L. SHAKDHER,
Secretary.
CORRIGENDA
In the Gazette of India Extraordinary, Part II—Section 2: —
1. No. 35, dated the 29th July, 1969: —
(i) Page 611, marginal heading to clause 1, for 'Short title and com- men—Commencement' read 'Short title and commencement.';
(U) Page 630, line 19 from top, for Vrinciple' read 'principles'; and
(iii) Page 644, line 5 from bottom, after "having* insert "been*.
2. No. 36, dated the 26th July, 1969: —
(i) Page 649, after liOK SABHA' insert The following Bills were in- troduced in Lok Sabha on the 20th July, 1869:—';
(U) Page 657, line 11 from bottom, for 'express' read 'expensej"; and
(111) Page 684 (Indicated wrongly as 884), line 8 from top, for 'continguity* read 'contiguity'.
5. No. 39, dated the 4th August, 1969:—
(1) Page 786, marginal heading to clause 92, for 'Shortage' read 'Storage'.
(ii) Page 790, line IS from bottom, for 'substantial' read 'substantially*;
and
(iii) Page 795, line 17 from bottom, for 'exlcable' read 'excisable'.
4. No. 40, dated the 22nd August, 1969:—
Page 844, delete rKz/,' appearing after the last line of clause 6.
6. No. 48, dated the 26th August, 1969:—
Page 868, marginal heading to clause 2, after for' insert t he year'.
PRmXICI) BY THE OHKERAL MANAOKR, OOVOtRMMHT OT INDIA PRESS, MINTO ROAD, NEW DBXJH AND PUBLISHED BY THE MANAGE! OF PUBLICATIONS, MLHI, 1970