INDIA IMAGE Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) This petition is filed seeking setting aside the communication letter dtd. 7/8/2003 issued by General Manager, District Industries Centre, Jaipur (hereinafter referred to as "General Manager") directing deposit of the subsidy amount of Rs.10,83,400.00 (wrongly typed as Rs.10,03,400.00 in Annexure 7). The recovery notice in the Land Revenue Act is also under challenge.

(2.) The brief facts are that the petitioner set up an unit of small scale industry for manufacturing of Readymade Garments. The unit was registered with District Industry Centre, Jaipur. The unit was set up initially in Keshav Path, C Scheme, Jaipur. Later on, petitioner purchased a plot in Sitapura Industrial Area, Jaipur and set up a factory. On 19/1/1997, the petitioner made an application for subsidy provided by the State Government under the State Capital Subsidy Scheme for New Industries 1990 (hereinafter referred to as 'Scheme'). The petitioner was sanctioned an amount of Rs.10,83,400.00 in the meeting of the District Level Committee held on 29/9/1997 and the subsidy was disbursed. The petitioner received letter dtd. 11/3/1999 from General Manager stating that as per the Auditors the subsidy was wrongly paid to the petitioner and same should be refunded along with interest. The objection of the audit was that subsidy could have been granted only to existing factory whereas the petitioner has shifted the factory from C Scheme to Sitapura Industrial Area. The petitioner responded stating that the old machinery was having worth of Rs.80,000.00 was shifted to the new factory premises and petitioner had invested Rs.52,00,000.00in the new machinery. The case set up was that the Note (i) of Clause (iv)(c) (3) of the Scheme was not applicable in the facts of the present case.

(3.) After almost three years, the communication letter dtd. 7/8/2003 was addressed to the petitioner directing that as per the Auditors the subsidy amount is recoverable and the amount be deposited within three months and on failure to do so, the recovery proceedings shall be initiated under the Land Revenue Act. Notice dtd. 25/4/2005 for recovery under land revenue was issued, hence the present petition.