TMI Blog1999 (1) TMI 531X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. industrial area means any area declared to be an industrial area by the State Government by notification in the Official Gazette, which is to be developed and where industries are to be accommodated. 4. On 29-9-1972, a notification was issued by the State Government under Section 2(g) of the Gujarat Industrial Development Act, 1962, declaring certain lands of Village Saij, Taluka Kalol, District Mehsana as Kalol Industrial Area. By a subsequent notification of 24-8-1978 issued by the State Government under Section 2(g), the survey numbers described in the earlier notification pertaining to Kalol Industrial Area were modified. 5. Under Section 16 of the Gujarat Industrial Development Act, 1962, which was in force at all material a times, it is provided as follows 16. Notwithstanding anything contained in the provisions for the time being the force relating to notified areas in the Gujarat Municipalities Act, 1963, the State Government may, by notification in the Official Gazette - (a) declare that the provisions relating to notified areas and any other provisions of that Acts shall extend to and be brought into force in any industrial area, and thereupon such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 990, a committee was appointed to submit a report as to whether it was in the interest of the local inhabitants to declare these areas as notified areas. The Committee submitted a report in August, 1991. After negotiations with different panchayats, it came to a conclusion that declaration of a notified area may not serve any purpose. Instead, a provision could be made for a lump sum contribution from industrial units in lieu of taxes levied by the panchayats in question. 9. With effect from 1-6-1993, the Constitution 73rd and 74th Amendment came into effect. As a result, Parts IX and IX-A were introduced in the Constitution. Part IX of the Constitution which dealt with the panchayats, provided under Article 243-B for constitution in every State of panchayats at the village, intermediate and district levels in accordance with the provisions of that part. Under Article 243-N, any provision of law relating to panchayats in force in a State immediately before the commencement of the 73rd Amendment, which is inconsistent with the provisions of this Part, shall continue to be in force until the expiration of one year from such commencement, whichever is earlier. Part IX-A which came ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e an industrial township area under the proviso to clause (1) to Article 243-Q of the Constitution of India. Thus, as a result of this amendment in the Gujarat Municipalities Act, an industrial area under the Gujarat Industrial Development Act, which is notified under Section 16 of the Gujarat Industrial Development Act, would become a notified area under the new Section 264-A of the Gujarat Municipalities Act and would mean an industrial township area under the proviso to clause (1) of Article 243-Q of the Constitution of India. 11. On 7-9-1993, the Government of Gujarat issued a notification under Section 16 of the Gujarat Industrial Development Act declaring Kalol Industrial Area as a notified area under Section 264-A of the Gujarat Municipalities Act. By another notification of the same date 7-9-1993, the Government of Gujarat excluded the notified area from Saij Gram Panchayat under Section 9(2) of the Gujarat Panchayats Act, 1961. 12. Earlier the State Government had also issued a government resolution dated 30-8-1993 whereby 1/3rd of the amount recovered as consolidated tax by a proposed notified area authority shall be used for the benefit of the Gram Panchayats. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... veloped by the Gujarat Industrial Development Corporation and they can hardly be looked upon as rural areas covered by Part IX of the Constitution. It is only such industrial areas which can be notified under Section 16 of the Gujarat Industrial Development Act, 1963. If by a notification issued under Section 16, these industrial areas are deemed to be notified areas under the Gujarat Municipalities Act and are equated with industrial townships under the proviso to clause (1) of Article 243-Q, the constitutional scheme is not violated. In fact, under Chapter 3 of the Gujarat Industrial Development Act, 1962, the Gujarat Industrial Development Corporation has been given power, inter alia, to develop land for the purpose of facilitating the location of industries and commercial centres. It has also been given the power to provide amenities and common facilities in such areas including provisions of roads, lighting, water supply, drainage facilities and so on. It may do this either jointly with the Government or local authorities or on an agency basis in furtherance of the purposes for which the Corporation is established. The industrial area thus has a separate provision for municipa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, in respect of any of these three types of areas set out in clause (1) of Article 243-Q, having regard to the size of the area, the municipal services being provided or proposed to be provided by an industrial establishment in that area, and such other factors as the Governor will deem fit to consider, he may, by public notification specify such area to be an industrial township. All these relevant factors would be in operation in an industrial area already notified many years back under an Industrial Development Corporation Act as in the present case. Therefore, there is no breach of Article 243-Q if such an area is, under the provisions of an Industrial Development Act, equated with an industrial township under Article 243-Q. 19. It was also contended that in order to be a notified area under the Gujarat Municipalities Act, a certain procedure is required to be followed. Therefore, unless this procedure is followed, an industrial area cannot become a notified area simply by issuing a notification under Section 16 of the Gujarat Industrial Development Act, 1962. This contention was earlier raised before the Gujarat High Court in the case of Naroda Nagar Panchayat v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the Taluka and District Panchayats were consulted through the District Development Officer. He had also asked for resolutions from the appellant-Panchayats, the Taluka Panchayats and the District Panchayats for being forwarded to the Development Commissioner. All these have been taken into account before issuing the notifications in question. The respondents have also pointed out that the Government has taken care to issue a resolution dated 30-8-1993 by which 1/3rd of the revenue recovered as consolidated tax by the notified area committee would be given for the benefit of the Gram Panchayats concerned, thus avoiding any financial prejudice to them. 22. It was also contended by the appellants that before any notification could be issued under Section 16 of the Gujarat Industrial Development Act, 1962, a hearing should have been given to the residents, because notifying an area under Section 16 of the said Act has civil consequences. If the residents had any objections, they should have been considered. Reliance was placed upon a decision of this Court in Baldev Singh v. State of H.P. ((1987) 2 SCC 510 1987 SCC (Cri) 519 AIR 1987 SC 1239). In that case, under the Hima ..... X X X X Extracts X X X X X X X X Extracts X X X X
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