Amendment status not verified — confirm the current text below against the official source.
Notwithstanding anything contained in any other provisions of this Act, in the case of an industry to which State aid has been given in any form, if the grantee- (a) fails to comply with any order under clause (a) of section 17; (b) does not permit or obstructs the inspection of the accounts of the industry. (c) makes default in respect of any of the particulars specified in clauses (c), (d) and (e) of section 17; (d) disposes of any profits in contravention of section 24; (e) contravenes any rule framed under section 30; or (f) commits any breach of any condition laid down for the grant of the State aid; or If on inspection of the accounts, returns and statements or audit report of such industry, the State Government is of opinion that the State aid should be withdrawn, the State Government may, after considering any representation the grantee may make within such time as the State Government may allow in this behalf, make an order directing- (i) that the balance of any loan outstanding shall be recoverable forthwith; (ii) that the guarantee given in pursuance of clause (b) of section 9 shall cease from the date of such order; (iii) that the full value of the land, if any, given under clause (g) of section 9 shall be payable forthwith and that on failure to make such payment the State Government shall be entitled to re-enter and take possession of the land; (iv) that the full value of any other State aid given under clause (g) or (h) of section 9 and enjoyed till the date of order shall be payable forthwith and the grant of such State aid beyond such date shall be discontinued, (v) that an amount equal in value to the subsidy given under clause (i) of section 9 shall be repayable forthwith; Provided that the State Government may, in lieu of any action as aforesaid, accept from such grantee such sum of money as it may deem fit. 20 (1) Every loan granted under this Chapter shall be made repayable by instalments within such period from the date of the actual advance of the loan, or when the loan is advanced instalments, from the date of actual payment of the last instalment, and shall bear interest at such rate and be payable in such manner as may be fixed by the order granting the loan. (2) The period fixed as aforesaid shall not exceed twenty years unless the State Government, by general or special order, extends the same. (3) Notwithstanding anything contained in sub-section (1), where any sum is received by the State Government from the Khadi and Village Industries Commission constituted under the Khadi and Village Industries Commission Act, 1956 (No, 61 of 1956), or any other body corporate for the purpose of granting interest free loan to small scale industries, any loan granted by the State Government out of such sum shall not bear any interest. Repayment of loans. 21 The provisions of sections 15, 16 and 18 in respect of loans shall, subject to any rules made under this Act, apply so far as may be to the guarantee of debentures issued to the public, a cash credit and an overdraft or fixed advance with a bank. Guaranteeing of cash credits etc,, with banks. 22 The condition of the guarantee of a minimum return on the whole or part of the capital of any industry shall be that an Guarantee of a minimum return on amount equal to the sum paid or part thereof as may be determined by the State Government shall be repaid to the State Government at the close of such term of years as may be fixed by the State Government in this behalf, if within that term the industry be shown to the satisfaction of the State Government to be paying interest or a dividend upon the capital invested in such industry in excess of such rate as the State Government may determine. capital. 23 (1) No subsidy for the conduct or research shall exceed forty percent of the cost thereof and no subsidy for any other purpose shall exceed fifty per cent of the cost thereof. (2) The condition of a grant of subsidy for the purchase of machinery shall ordinarily be that an amount equal in value thereto, as may be determined at the time of making the grant, shall be repaid to the State Government at the close of such term of years as may be fixed by the State Government in this behalf, if within that term the industry be shown to the satisfaction of the State Government to be paying interest or a dividend upon the capital invested in such industry in excess of such rate as the State Government may determine. (3) The condition of a grant of subsidy for the conduct of research or grant, on favourable terms, of land, raw material, fuel, water or any other property or right of the State Government or the grant, on favourable terms, of the services of experts the value thereof, as may be determined, at the time of making the grant or concession, shall be repaid to the State Government at the close of such term of years as may be fixed by the State Government in this behalf, if within that time the industry be shown to the satisfaction of the State Government to be paying interest or a dividend upon the capital invested in such industry in excess of such rate as the State Government may determine. (4) Without prejudice to the provisions of sub-section (3), the condition of a grant of a subsidy for the conduct of a research may further be that the State Government shall have a share not exceeding twenty-five percent in the patent rights arising out of such research. (5) State aid granted to any industry shall be discontinued if the industry be shown to the satisfaction of the State Government to be paying interest or a dividend upon the capital invested in such industry in excess of such rate as the State Government may determine. Subsidies. 24 (1) Until the conditions on which the aid has been granted are fulfilled the profits of the industry in respect of Disposal of profits of when conditions of which aid has been granted shall, if taken or distributed, be taken on distributed only after interest due on debentures and loans has been paid and a reasonable amount has been set aside for depreciation or obsolescence of plant and buildings and further reasonable amount has been carried to reserve fund to be utilized in such manner as the State Government may approve. (2) No recipient of State aid shall pay any dividend or distribute or take any profit in excess of such percentage rate upon the amount of the capital of the industry as the State Government may, from time to time fix, until the conditions on which State aid has been granted are fulfilled; Provided that the State Government may relax the provisions of this section in the case of any industry aided by the grant, on favourable terms, of land, raw material , fuel, water, or any other property or right of the State Government or the grant, free charge or an favourable terms of the service of experts or persons in the service of the State Government or by the payment of subsidy for the conduct of search. State aid not fulfilled. 25 Notwithstanding anything contained in this chapter, if in any case the amount or value of the State aid given there under amount to or exceeds five lakhs of rupees, or the face value of the shares held by the State exceeds 25 per cent of the authorised share capital, the State Government shall, and in any other case may, by the appointment of Government Directors or otherwise take power to ensure such control over the conduct of the industry as shall suffice in its opinion to safeguard its interest. Government control of industry aided.