New Delhi: The Ministry of Commerce and Industry, through the Department for Promotion of Industry and Internal Trade (DPIIT), has notified the Industries (Development and Regulation) Manner of Holding Inquiry and Appeal Rules, 2024.
These rules aim to establish a structured mechanism for addressing contraventions under the Industries (Development and Regulation) Act, 1951, by introducing detailed provisions for inquiries, penalties, and appeals.
Key Highlights
- Structure and Enforcement:
The rules empower adjudicating officers, such as District Magistrates or Additional District Magistrates, to oversee investigations into violations under Section 24 of the Act. Complaints can be filed, either electronically or via registered/speed post. The officers will issue show-cause notices, hold hearings, and allow the submission of evidence.
- Time-Bound Investigations:
Inquiries must be completed within six months of issuing notices. Adjudicating officers are tasked with recording clear reasons for imposing penalties, which must be communicated in writing to all parties involved.
- Appeals Process:
Aggrieved parties can appeal decisions to an appellate authority within 30 days of receiving an order. The appeal process ensures transparency, with the appellate authority required to resolve cases within 60 days. Appeals can be filed in person, electronically, or through postal services.
- Penalties and Compliance:
All penalties collected will be deposited into the Consolidated Fund of India. The rules also allow adjudicating and appellate authorities to extend deadlines in exceptional cases, ensuring flexibility while maintaining accountability.
The draft rules were initially published on 9 September 2024, inviting public feedback within 30 days. The government reviewed the objections and suggestions before finalizing the notification, ensuring a participatory approach to policy development.
The newly notified rules mark a significant step toward regulatory efficiency in India’s industrial sector. By clearly defining the roles of adjudicating officers and appellate authorities, the framework aims to reduce delays, ensure compliance, and foster a transparent and fair adjudication process. This development aligns with the government’s broader agenda of promoting ease of doing business and enhancing industrial governance in India.
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