Industrial (Development and Regulations) Act, 1951
18A. Power of Central Government to assume management or control of an industrial undertaking in certain cases
(1) If the Central Government is of opinion that-
(a) an industrial undertaking to which directions have been issued in pursuance of section 16 has failed to comply with such directions, or
(b) an industrial undertaking in respect of which an investigation has been made under section 15 (whether or not any directions have been issued to the undertaking in pursuance of section 16), is being managed in a manner highly detrimental to the scheduled industry concerned or to public interest,
the Central Government may, by notified order, authorize any person or body of persons to take over the management of the whole or any part of the undertaking or to exercise in respect of the whole or any part of the undertaking such functions of control as may be specified in the order.
(2) Any notified order under sub-section (1) shall have effect for such period not exceeding five years as may be specified in the order:
PROVIDED that if the Central Government is of opinion that it is expedient in the public interest that any such notified order should continue to have effect after the expiry of the period of five years aforesaid, it may from time to time issue direction for such continuance for such period, not exceeding two years at a time, as may be specified in the direction, so however, that the total period of such continuance (after the expiry of the said period of five years) does not exceed twelve years, and where any such direction is issued, a copy thereof shall be laid, as soon as may be, before both Houses of Parliament.
Explanation: The power to authorize a body of persons under this section to take over the management of an industrial undertaking which is a company includes also a power to appoint any individual, firm or company to be the managing agent of the industrial undertaking on such terms and conditions as the Central Government may think fit.