Section 5 in Rice-Milling Industry (Regulation) Act, 1958
5. Grant of permits in respect of new or defunct rice mills.
(1)Any person or authority may make an application to the Central Government for the grant of a permit for the establishment of a new rice mill; and any owner of a defunct rice mill may make a like application for the grant of a permit for re- commencing rice- milling operation in such mill.(2)Every application under sub- section (1) shall be made in the prescribed form and shall contain the particulars regarding the location of the rice mill, the size and type thereof and such other particulars as may be prescribed.(3)If, on receipt of any such application for the grant of a permit, the Central Government is of opinion that it is necessary so to do for ensuring adequate supply of rice, it may, subject to the provisions of sub- section (4) and sub- section (5), grant the permit specifying therein the period within which the mill is to be established or, as the case may be, the mill is to re- commence is rice- milling operation and [such other conditions (including such conditions as to improvements to existing machinery, replacement of existing machinery and use of improved methods of rice- milling, as may be necessary to eliminate waste, obtain maximum production and improve quality) as it may think fit] [Substituted by Act 29 of 1968, section 4, for 'such other conditions as it may think fit' (w.e.f. 1-5-1970).] to impose, in accordance with the rules, if any, made in this behalf.(4)Before granting any permit under sub- section (3), the Central Government shall cause a full and complete investigation to be made in the prescribed manner in respect of the application and shall have due regard to-(a)the number of rice mills operating in the locality;(b)the availability of paddy in the locality;(c)the availability of power and water supply for the rice mill in respect of which a permit is applied for;(d)whether the rice mill in respect of which a permit is applied for will be of the huller type, sheller type or combined sheller- huller type;(e)whether the functioning of the rice mill in respect of which a permit is applied for would cause substantial unemployment in the locality;(f)such other particulars as may be prescribed.(5)[ (a) In granting a permit under this section (whether for the establishment of a new rice mill or for re- commencing rice- milling operation in a defunct rice mill), the Central Government shall give preference-(i)to a Government company or a corporation owned or controlled by the Government over every other applicant;(ii)to a farmers' co- operative society over every other applicant not being a Government company or a corporation owned or controlled by the Government, notwithstanding that such other applicant has applied for the grant of a permit for re- commencing rice- milling operation in a defunct rice mill.(b)Subject to the provisions of clause (a), in granting a permit under this section, the Central Government shall give preference to a defunct rice mill over a new rice mill. Explanation. - In this sub- section,-(i)"Co- operative society" means a society registered or deemed to be registered under the Co- operative Societies Act, 1912 (2 of 1912 ) or any other law relating to co- operative societies for the time being in force in any State and" farmers" co- operative society" means a co- operative society the members whereof include farmers and the voting rights in which are, according to its rules and bye- laws, restricted to the following classes of its members, namely:-(a)farmers,(b)State Governments,(c)primary agricultural credit societies as defined in clause (cii) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934 );(ii)"Government company" has the same meaning as in the Companies Act, 1956 (1 of 1956 ).](6)A permit granted under this section [shall be valid] [Substituted by Act 29 of 1968, for 'shall be effective' (w.e.f. 1-5-1970).] for the period specified therein or for such extended period as the Central Government may think fit to allow in any case:[Provided that if in a mill in respect of which a permit has been granted under sub- section (3) rice- milling operation is not carried on for a continuous period of one year at any time after the commencement of the Rice- Milling Industry (Regulation) Amendment Act, 1968 , then, such permit shall cease to be valid upon the expiry of the said period of one year and a fresh permit shall be necessary for re- commencing rice- milling operation in that mill.] [Added by section 4, Act 29 of 1968 (w.e.f. 1-5-1970).]
