The British India Corporation Limited (Acquisition of Shares) Act, 1981

Act No. 29 of 1981

[11th September, 1981.]

An Act to provide for the acquisition of certain shares of the British India Corporation Limited with a view to securing the proper management of the affairs of the Company and the continuity and development of the production of goods which are vital to the needs of the country and for matters connected therewith or incidental thereto.

WHERE AS Messrs. British India Corporation Limited, Kanpur, are engaged in the manufacture and production of pure and blended woollen fabrics which are vital to the needs of the general public;

AND WHEREAS as a result of an investigation made under section 15 of the Industries (Development and Regulation) Act, 1951 (65 of 1951), certain directions were issued to the Company under section 16 of that Act which, inter alia, included the modernisation of the plant and machinery of the undertakings of the Company;

AND WHEREAS for the purpose of carrying out the said directions, public financial institutions had advanced large sums of money to the Company;

AND WHEREAS the Central Government and certain public financial institutions have also invested considerable funds in the share capital of the Company;

AND WHERE AS the State Bank of India has advanced considerable sums to the Company and a part thereof has been guaranteed by the Central Government;

AND WHEREAS further investment of large sums of money is necessary for the maintenance and development of the production of the undertakings of the Company and for securing the proper management of the affairs of the Company;

AND WHEREAS acquisition by the Central Government of an effective control over the affairs of the Company is necessary to enable it to make the investments aforesaid;

BE it enabled by Parliament in the Thirty-second Year of the Republic of India as follows:-