Section 16 in The (Bihar State) Aid to Industries Act, 1956
16. Disposal of profits when conditions on which State aid is given are not fulfilled.
- No recipient of State aid shall pay any dividend, or distribute or take any profits, in excess of such percentage rate upon the amount of the capital of the industry as the Government may, from time to time fix, until the conditions on which the State aid has been granted are fulfilled.The balance on the profits, after necessary amounts have been set aside for obsolescence or depreciation of machinery and buildings and for the payment of interest on debentures of loans, shall be carried to a reserve found to be utilized in such manner as the State Government may approve.
