The Ganesh Flour Mills Company Limited is a public limited company incorporated in 1891. The Company was not being managed in a manner befitting its size and position. This led to gross mismanagement and grave financial irregularities in its working. As a result, the Ganesh Flour Mills Company limited remained closed. The management of the Ganesh Flour. Mills Company Limited was, therefore, taken over on the 3rd November, 1972, under section 18AA of the Industries (Development and Regulation) Act, 1951.
2. Certain units of the aforesaid company, namely:-
(i) The Delhi Vanaspati factory, Delhi;
(ii) (ii) The Hindustan Breakfast food Manufacturing factory, New Delhi, including the Ganesh Electrical factory, New Delhi, which is interlinked with it by reason of its location, common services and infrastructure;
(iii) (iii) the Kanpur Vanaspati factory, Kanpur; and
(iv) (iv) The Solvent Extraction plant, Bombay- (hereinafter referred to as the Ganesh Flour Mills) being managed by the Central Government under section 18AA of the Industrial (Development and Regulation) Act, 1951, have been refining crude rapeseed oil imported from abroad for supply to the public distribution system all over the country. It has also been producing wholesome vanaspati for sale at reasonable prices in the open market. The Ganesh Flour Mills has, thus, been playing an important role in the supply of commodities essential to the needs of the common man. It is intended further to extend the role of the Ganesh Flour Mills by means of expansion of its production capacity and diversification of its production function as a part of the nucleus of the instrumentalities under the public sector so as to provide Government a commanding role in the regulation of the edible oil. Certain schemes for this purpose are under preparation.
3. The Ganesh Flour Mills Company Limited had a negative network at the time of its take-over in November, 1972, and on its own it was not in a position to raise the necessary funds and provide the managerial inputs to bring it back to running condition. Under the management of the Government, financial loan was provided by the Industrial Reconstruction Corporation of India Besides this, considerable managerial and technical inputs have been provided to bring the Ganesh Flour Mills to its current healthy situation. In order to enable it to play the role envisaged for it under Government's policy for regulating the edible oil economy, it is necessary to make further investments for modernisation of its machinary and diversification of its activities, it was fell that further investments for such purposes should be preceded by some arrangement which ensures continuity of management of the Ganesh Flour Mills under the Central Government. The Ganesh Flour Mills Company Limited (Acquisition and Transfer of undertakings) Ordinance, 1984 was accordingly promulgated on the 28th January, 1984.
4. The Bill seeks to replace the aforesaid Ordinance. -Gaz. of Ind., 28-2-1984, Pt. II, S. 2, Ext., p. 13 (No. 5).
An Act provides for the acquisition and transfer of the right, title and interest of certain undertaking of the Ganesh Flour Mills Company Limited with a view to sustaining and strengthening the nucleus of public owned or controlled units required for ensuring supply of wholesome vanaspati and refined edible oils, nutritious foods and other consumer commodities to the public at reasonable prices and thereby to give effect to the policy of the State towards securing the principles specified in clauses (b) and (c) of article 39 of the Constitution. WHEREAS the Ganesh Flour Mills Company Limited has through the Ganesh Flour Mills been engaged mainly in the manufacture and production of certain commodities, namely, vanaspati, refined edible oils, various types of nutritious foods and other consumer commodities which are essential to the needs of the community; AND WHEREAS the management of the Ganesh Flour Mills was taken over bythe Central Government under the Industries (Development and Regulation) Act 1951; AND WHEREAS it is necessary to acquire the undertakings of the Ganesh Flour Mills Company Limited in relation to the Ganesh Flour Mills for sustaining and strengthering the nucleus of public owned or controlled units required for ensuring supply of wholesome vanaspati, refined edible oils, various types of nutritious foods and other consumer commodities to the pubic at reasonable prices; AND WHEREAS such acquisition is for giving effect to the policy of the State towards securing the principles specified in clauses (b) and (c) of article 39 of the Constitution;
BE it enacted by Parliament in the Thirty-fifth Year of the Republic of India as follows :-
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