Maharashtra State Enterprises (Restructuring and Other Special Provisions) Act, 2000
No: 33 Dated: Aug, 16 2001
THE MAHARASHTRA STATE ENTERPRISES (RESTRUCTURING OTHER SPECIAL PROVISIONS) ACT, 2000
ACT No. XXXIII OF 2001
An Act to make special provisions in the public interest for constitution of the Maharashtra Board for Restructuring of State Enterprises with power to determine and recommend timely measures to be taken by the Government of Maharashtra for restructuring, amalgamation, merger, closure, etc., and for determining for recommending measures for disinvestment of the equity capital of the Government in such Enterprises and for matters connected therewith and incidental thereto.
WHEREAS the Directive Principles of State Policy contained in Part IV of the Constitution, which are the guiding principles to be followed in the governance of every State, embody the concept of a Welfare State, and whereas the Supreme Court of India has, in several of its judgements, held that the said principles supplement the fundamental rights in achieving a Welfare State;
AND WHERAS Maharashtra is a welfare State and also an industrially and commercially advanced State;
AND WHEREAS as a welfare State it has âlways been the endeavour of the Government of Maharashtra that all assets and resources of the State are so utilized as to bring the maximum réturñs for the welfare and prosperity of the people of the entire State;
AND WHEREAS it has also been the endeavour of the Government to ensure that there is overall balanced social and economic development and progress of the whole State and the wealth and prosperity of the State are shared equitably by the people of the State;
AND WHEREAS it has been noticed by the Government that in spite of several measures taken in the past for this purpose, the operational and financial viability of serval State Enterprises, established over the years fot assisting the achievement of the objectives of the welfare State, has deteriorated progressively, thereby not only straining the resources of the State but also adversely affecting the objectives of these State Enterprises;
AND WHEREAS the State Government being concerned to - ensure that these State Enterprises which have been set up for the development of infrastructure in the State and for facilitating the availability of goods and services to promote social and economic development in the State, continue to play an effective role and remain financially viable;
AND WHEREAS therefore, necessity had arisen of immediate intervention by the Government by way of making available the services of an expert body to provide mandatory advice and assistance to the Government as well as to such State Enterprises with a view to enabling the later to observe strict financial discipline and revive or to reorganize and restructure themselves to become financially viable and operationally sound;
AND WHEREAS for the jurposes aforesaid, it was considered. expedient to - make special provisions;
AND WHEREAS both houses of the State Legislature were not in session;
AND WHEREAS the Governor of Maharashtra was satisfied that circumstances existed which rendered it necessary for him to take immediate action to make a law for the purposes aforesaid; and, therefore, promulgated the Maharashtra State Enterprises (Restructuring and Other Special Provisions) Mah. Ordinance, 2000, on the 18th November2000;
AND WHEREAS, it is expedient to replace the said of 2000 Ordinance by "an Act of the State Legislature;
It is hereby enacted in the Fifty-first Year of the Republic of India as follows :-
1. Short title, extent, commencement:- (1) This Act may be called the Maharashtra State Enterprises (Restructuring and Other Special Provisions) Act, 2000.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall be deemed to have come into force on the 18th November 2000.
2. Definitions:- (1) In this Act, unless the context otherwise requires,--
(a) "Assisting Agency" means any State Enterprise, Private Sectoi Agency or any other person or body of persons appointed br the Board as its agency to assist in an inquiry or -preparation of a scheme, as may be speeified by general or special order by the Board;
(b) "Board" means the "Maharashtta Board fôr Restructuring of State Enterprises" established under section 3 of this Act;
(c) "Chairperson" means the Chairperson of the Board;
(d) "Department" means any Department of the Government of Maharashtra;
(e) "Government" means the Government of Maharashtra;
(e) "High Court " means the High Court of Bombay;
(g) "Management" means the Board of Directors, Governing Body, Managing Committee or the Board or Authority of any State Enterprise, responsible for the management of the affairs of the said Enterprise;
(h) "Member" means a member of the Board and includes the Chairperson thereof;
(i) "Number of Days" would be all days as per the calendar and include all holidays;
(j) "prescribed" means prescribed by rules made under this Act;
(k) "Reserve Bank" means the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act: 1934;
(l) " Referred Enterprise" means any State Enterprise in respect of which a reference has been made by the Government to the Board and shall remain as such Referred Enterprise till completion of the sanctioned scheme to the satisfaction of the Board or until discharged by the Board;
(m) " Recognized Labour Union or Offiders Association" means any union or association of the employees or officers of the State Enterprise which is recognized under the provisions of the relevant Acts;
(n) "Schedule", means a Schedule appended to this Act;
(o) "Scheduled Bank" means a bank for the time being included in the Second Schedule to the Reserve Bank of India Act, 1934;
(p) "State" means the State of Maharashtra;
(q) "State Enterprise" means any entity, including any subsidiary entity or such an entity, whether or not incorporated under the Companies Act, 1956 or registered under the Societies Registration Act, 1860, the Maharashtra Co-operative Societies Act, 1960 or the Bombay Public Trusts Act, 1950 or an Enterprise formed under any State - enactment or any other law for the time being in force, in which the Government holds 50 per cent, or more as paidup equity or preference capital or has substantial financial interest and which is included in Schedule I of this Act.
(2) Words and expressions used but not defined in this Act shall have the meaning, if any assigned to them in the Companies Act, 1956, the Industries (Development and Regulation) Act, 1951, the Maharashtra Co-Operative Societies Act, 1960, the Bombay Public Trusts Act, 1950 and such other State Acts and Statutes under which the Government has incorporated various State Enterprises as listed in Schedule I of this Act.
(3) Any reference in this Act to any other enactment or any provision thereof shall, in relation to an area in which such enactment or such provision is not in force, be construed as a reference to the corresponding law or the relevant provision of the corresponding law, if any, in force in that area.