UTTAM POLYPACKS PVT LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) This writ petition is directed against the decision of the State Level Screening Committee dated 27.6.96, whereby the claim of the petitioner for grant of subsidy under the State Capital Investment Subsidy Scheme For Industries, 1990 ("the Scheme" hereinafter), as an unit set up by Non Resident Indians (NRIs) stands rejected.

(2.) The Scheme was introduced by the State Government with a view to accelerate the pace of industrial development in the State of Rajasthan. The rates at which new and eligible industrial unit set up in the areas specified to which the Scheme was made applicable were set out in clause 5 of the Scheme. As per item (v) of the Sub-clause (b) of the clause 5 of the Scheme, an eligible industrial unit set up by NRIs was made entitled for subsidy @ 20% of the eligible fixed capital investment as specified under the sub-clause (c) of the clause 4 of the Scheme or Rs. 35.00 lacs, whichever is less. By way of Explanation attached to clause 5, it was clarified that a unit set up by NRIs would mean an industrial unit in which NRIs have at least 40% equity brought in foreign exchange of the total equity of the industrial unit and that the equity brought in by NRIs in foreign exchange will not be transferable before a period of 5 years. The aforesaid clause relating to the eligibility of the industrial unit set up by the NRIs and the quantum of subsidy admissible under the Scheme has been amended time to time.

(3.) The amendments introduced in the Scheme which are germane to the controversy involved may be beneficially referred.