29TH MARCH, 1985
An Act to provide for reservation of certain articles for exclusive production by handlooms and for matters connected therewith.

Be it enacted by Parliament in the Thirty-sixth Year of the Republic of India as follows :-

1. Short title, extent and commence-ment.
(1) This Act may be called the Handlooms (Reservation of Articles for Production) Act, 1985
(2) It extends to the whole of India.
(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

2. Definitions
In this Act, unless the context otherwise requires, -
  a. "Advisory Committee" means the Advisory Committee constituted under section 4
(b)" handloom" means any loom,other than powerloom;
(c)" manufacturer" includes the producer and processor and the expression "manufacture"shall be construed accordingly ;
(d)" powerloom" means a loom which is worked by power as defined in clause (g) of section 2 of the Factories Act, 1948 ;

(e)"processor" means a person engaged in any ancillary process subsequent to the production of cloth, such as dyeing, bleaching, mercerising, calendering, embroidering, printing, raising, cloth embossing or any other finishing process, but does not include a producer, and the expression "process" shall be construed accordingly ;

(f)."producer" means a person engaged in the production of cloth on any loom, other than handloom, and shall include a person who owns, works or operates on, a loom for the production of cloth, and the expression "produce" shall be construed accordingly.

3. 63 of 1948.
(1) Notwithstanding anything contained in the Industries (Development and Regulation) Act, 1951, the Central Government may, if it is satisfied, after considering the recommendations made to it by the Advisory Committee, that is necessary so to do for the protection and development of the handloom industry, by order published in the Official Gazette, direct, from time to time, that any article or class or articles shall, on and from such date as may be specified in the order (hereinafter referred to as the date of reservation), be reserved for exclusive production by handlooms.
(2) Every order published under sub-section (1) shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however that any such modification or annulment shall be without prejudice to the validity of anything previously done under that order.

4. Power to specify articles for exclusive production by handlooms.
(1) The Central Government shall, with a view to determining the nature of any article or class of articles that may be reserved for exclusive production by handlooms constitute an Advisory Committee consisting of such persons as have, in the opinion of that Government, the necessary expertise to give advice on the matter.

(2) The Advisory Committee shall, after considering the following matters, communicate its recommendations to the Central Government, namely :-
a. the article or class of articles which is being produced by handlooms for mass consumption;
b. the article or class of articles which is being produced traditionally by handlooms;
c.the level of employment likely to be generated by the production of the article or class of articles referred to in clause (a) or clause (b) exclusively by handlooms;
d.the protection of interests of persons engaged in the handloom industry and the need for the continued maintenance of the industry; and
e.such other matters as the Advisory Committee may think fit.

5. 65 of 1951
Wherean order has been made under section 3 reserving any article or class of articles for exclusive production by handlooms, such article or class of articles shall not, on and from the date of reservation, be produced by any loom, other than handloom :

Provided that any person who, immediately before the date of reservation of any article or class of articles, was engaged in the production of such article or class or articles in any loom, other than handloom may continue to be so engaged till the expiry of three months from the date of such reservation.

6. Constitution of Advisory Committee.
(1) The Central Government may, by order, require any manufacturer to furnish, for the purposes of this Act, -
a. such information in his possession with respect to any manufacturing activity or business carried on by him or by any other person to any officer or authority specified by it in such form and within such period as may be specified by that Government in the order;
b. such samples of any articles manufactured by him or by any other person for inspection by such officer or authority, at such places and within such period as may be specified by it in the order.

(2)Where any order has been issued to any manufacturer under sub-section (1) , he shall comply with such order.

7. Power to enter and inspect.
Any officer authorised by the Central Government (hereinafter referred to as the authorised officer) may enter, at all reasonable times, any place or premises of any manufacturer in which any textile articles are stored, kept or exposed for sale and may require the production for inspection of any books of account, registers, records or other documents kept therein and ask for such information relating to the manufacture, storage or keeping for sale of any such articles or to any powerlooms that may be found in such place as he may think fit for the purposes of carrying into effect the provisions of this Act.

8. Prohibition of production of articles exclusively reserved for handlooms.
(1) If the authorised officer has any reason to believe that, -
a. any article or class of articles specified in any order made under section 3 is being produced in any place in contravention of such order; or
b. any article or class or articles produced in contravention of such order are secreted in any place; or
c. any article or class or articles is liable to forfeiture under this Act,
he may enter into and search such place or premises for such article, or class of articles or any powerloom which in the opinion of the authorised officer may have been used for the production of such article or class of articles.

(2) Where, as a result of any search made under sub-section (1), any article or class of articles or any powerloom has been found and the authorised officer has reason to believe that such article or class of articles has been produced, or such powerloom has been used for the production of any article or class of articles, in contravention of any order made under section 3, he may seize such article, class of articles or powerloom, together with the package, covering or receptacle, if any, in which such article or class of articles is found :

Provided that where it is not practicable to seize any article or powerloom, the authorised officer may serve on the owner of the article or the powerloom, as the case may be, an order that he shall not remove, part with, or otherwise deal with, the article or powerloom except with the previous permission of such authorised officer.

(3) Where any article or powerloom is seized under sub-section (2) and no prosecution has been launched within six months of such seizure, it shall be returned to the person from whose possession it was seized.

(4) The authorised officer may also seize any documents or things which, in his opinion, will be useful for, or relevant to, any proceeding under this Act.

(5) The person from whose custody any documents are seized under sub-section (4) shall be entitled to make copies thereof or take extracts therefrom in the presence of the authorised officer.

(6) If any person legally entitled to the documents or things seized under sub-section (4) objects, for any reason, to the retention by the authorised officer of the documents or things, he may make an application to the Central Government stating therein the reasons for such objection and requesting for the return of the documents or things.

(7) On receipt of an application under sub-section (6), the Central Government may, after giving the applicant an opportunity of being heard, pass such order as it may think fit.

9. Search and seizure to be made in accordance with the Code of Criminal Procedure, 1973
The provisions of the Code of Criminal Procedure, 1973, relating to searches and seizures shall, so far as may be, apply to every search or seizure made under this Act.

10. Penalty for contravention of orders made under section 3
Whoever produces any article or class of articles in contravention of an order made under section 3, -
a. Shall be punishable with imprisonment for a term which may extend to six months or with fine which may extend to five thousand rupees per loom by which the said article or class of articles is produced, or with both, and in the case of a continuing contravention, with an additional fine which may extend to five hundred rupees per loom for every day during which such contravention continues after conviction for the first such contravention; and
b. the article or class of articles in respect of which the order has been contravened or any powerloom by the use of which such order is contravened, including any package, covering or receptacle in which the article or class of articles is found, shall be forfeited to the Central Government :

Provided that if the court is of opinion that it is not necessary to direct forfeiture in respect of any of the articles, powerloom or any package, covering or receptacle, it may, for reasons to be recorded, refrain from doing so.

11. Power to call for information or to furnish samples.
If any person, -
a. when required by any order made under section 6 to furnish any information or sample, makes any statement or furnishes any information which is false in any material particular and which he knows, or has reasonable cause to believe, to be false or does not believe it to be true, or fails to furnish such sample or damages or destroys any article from which such sample was required; or
b. When required by the authorised officer under section 7 to produce any books of account, registers, records or other documents, fails to produce, or damages or destroys any such books, registers or other documents,
He shall be punishable with imprisonment for a term which may extend to three months, or with fine which may extend to five thousand rupees or with both.

12. False statement
Any person who attempts to contravene or abets the contravention of any order made under section 3 shall be deemed to have contravened that order.

13. Offences by companies
(1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :

Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

2. Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of any director, manager, secretary or other officer of the company, such direction, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

Explanation : For the purposes of this section, -
a. "company" means any body corporate and includes a cooperative society registered or deemed to be registered under any law for the time being in force, a firm or other association of individuals; and
b. "director", in relation to a firm, means a partner in the firm.

14. Offences to be cognizable.
Notwithstanding anything contained in the Code of Criminal Procedure, 1973, every offence punishable under this Act shall be cognizable.

15. Attempt and Abetment
The Central Government may be order direct that the powers exercisable by it under any provision of this Act other than the power to make orders under section 3 or under section 18 or to make rules under section 19, shall in relation to such matters and subject to such conditions if any, as may be specified in the direction by exercisable also be -
a. such officer or authority subordinate to the Central Government; or
b. Such State Government or such officer or authority subordinate to a State Government, as may be specified in the direction.

16. Power of Central Government to give directions.
The Central Government may give such directions as it may consider necessary to a State Government as to the carrying into execution of the provisions of this Act.

17. Protection of action taken in good faith.
No suit, prosecution or other legal proceeding shall lie against the Central Government, State Government or any officer or employee of the Central Government or of any State Government or any authorised officer for anything which is in good faith done or intended to be done under this Act or an order made under section 3. 

18. Power to exempt.
(1) If the Central Government is satisfied that the demand for any article or class or articles reserved by an order under section 3 outside India is such that it is not possible for the handloom industry to meet such demand or any such article or class or articles is required to be produced for purposes of research or for the development or markets for such article or class of articles or of the handloom industry generally, it is necessary or expedient so to do, it may, by order published in the Official Gazette, exempt such article or class of articles from the operation of such order, and permit such article or class of articles to be produced by any powerloom solely for the purposes of export or for research by such institutions as may be specified in the order.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the order or both Houses agree that the order should not be made, the order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to that validity of anything previously done under the order.

19. Power to delegate.
(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.

(2) Every rule made under this Act shall be laid, as soon as may be after it is made, before each House of Parliament, while it is in session, for a total priod of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule.


Ministry of Textiles
Office of the Development commissioner for Handlooms
(Enforcement Wing)
Subordinate Legislation under
The Handlooms (Reservation of Articles for Production )Act, 1985
(22^nd of 1985)
G.S.R. 505 (E) dated 10/3/86 - In exercise of the powers conferred by Sub-section (3) of Section 1 of the Handlooms (Reservation of Articles for Production) Act, 1985 (22 of the 1985), the Central Government hereby appoints the 31^st day of March, 1986 as the date on which the said Act shall come into force.
The Handlooms ( Reservation of Articles for Production ) Rules, 1986.
 1* G.S.R. 506 (E) dated 10/3/1986 - In exercise of the powers conferred by Sub-section (1) of Section 19 of the Handlooms (Reservation of Articles for Production) Act, 1985 (22 of 1985), the Central Government hereby makes the following rules, namely :-

1. Short title and commencement - (1) These rules may be called the Handlooms (Reservation of Articles for Production) Rules, 1986.
(2) They shall come into force on and from the 31^st day of March, 1986.

2. Definitions - In these rules, unless the context otherwise requires,
a. "Act" means the Handlooms (Reservation of Articles for Production) Act, 1985 (22 of 1985) ;
b. "authorised Officer" means any officer sub-ordinate to the Central Government or to the State Government or to any Authority, as may be authorised by the Central Government under Section 7 of the Act;
c. "sample" means a sample of any cloth taken under the provisions of the Act or under these rules.

3. Establishment and constitution of Advisory Committee - (1) The Advisory Committee to be constituted under sub-section (1) of section 4 of the Act shall consist of a Chairman and such other members, not exceeding thirty, as may be nominated by the Central Government.
(2) The Advisory Committee shall normally have a tenure of three years :
Provided that if the Central Government is of opinion that it is necessary or expedient so to do, it may reconstitute the Advisory Committee earlier than the aforesaid period of three years.
1 Published in the Gazette of India, Extraordinary, 1986, Part II, Section 3(i), SL. No. 133.
(3) A casual vacancy occurring in the offices of the Chairman or members of the Advisory Committee by resignation or otherwise shall be filled by a fresh nomination and the persons nominated to fill the vacancy shall hold office only for the remainder of the term for which the Chairman or, as the case may be, the members whose place he takes, was nominated.

(4) The Chairman of the Advisory Committee shall preside at its meetings ;
Provided that where the Chairman is unable to attend any meeting of the Advisory Committee, he shall nominate one of the members of the Advisory Committee to preside over the meeting.

(5) The Advisory Committee may meet at such places and at such times as may be determined by the Chairman ;
Provided that the Advisory Committee shall meet at least once a year to review the list of reserved articles.
4. Procedure to be followed by Authorised Officer - (1) Where an authorised officer seizes any article or class or articles under sub-section (2) of section 8 of the Act, he shall take a sample of the seized cloth and divide it into three parts measuring not less than half metre each which shall be sealed carefully in separate containers and the signature or thumb impression of the persons from whom the samples has been taken, shall be fixed on each container along with the mark and seal of the authorised officer.
(2) The authorised officer shall hand over one part of the sample so taken to the person concerned and secure from him proper acknowledgement for the same by way or signature or thumb impression :
Provided that where such persons refuses to sign or put his thumb impression, the authorised office may prepare a seizure memorandum and record therein that the person concerned has refused to sign or put his thumb impression
Provided further that the seizure memorandum shall be sent to the person concerned through registered post at his known address and such despatch through registered post shall be taken as a proof of the person concerned having received the seizure memorandum within a period of seven days of the said despatch.
(3) (a) The authorised officer shall send the second part of the sample to a testing laboratory set up by the Central Government or the State Government or to institutions recognised by the Central Government or State Government as may be duly notified, from time to time, by the Central Government or, as the case may be, by the State government for a particular area of zone in this behalf :
Provided that where such laboratory or institution has not been so notified, the sample may be sent for being tested to a public analyst authorised in this behalf for a particular area or zone by the Central Government or, as the case may be, by the State Government.
(b) The testing laboratory or institution or public analyst aforesaid shall perform the necessary tests either by chemical analysis or by any other method, as deemed fit, to determine whether the sample sent by the authorised officer was made on handlooms or powerlooms and report the findings to the authorised officer.
(4) Subject to the provisions of sub-section (3) of section 8 of the Act, the authorised officer shall retain the third part of the sample and keep it in safe custody for such period as he may deem necessary.
(5) The authorised officer shall seize the powerloom used for production of articles in violation of orders issued under section 3 of the Act in the presence of the owner or, as the case may be, the operator of the Powerloom and the fact of seizing the powerloom along with the acknowledgement of the owner or of the operator by way of his signature or thumb impression shall be intimated to the producer in writing and a copy thereof shall be affixed at some conspicuous place in the premises where the powerloom is installed :
Provided that where it is not practicable to seize the said powerloom, the authorised officer may follow the procedure specified in the proviso to sub-section (2) of Section 8 of the Act.
(6) Subject to the provisions of sub-section (3) of Sec. 8, the authorised officer shall keep the seized goods in safe custody for such period as he may deem necessary.
(7) The authorised officer, after search and seizure, shall also report the matter to the officer in charge of the local police station having jurisdiction to investigate the case.
(8) Whenever the authorised officer apprehends any resistance or trouble from any person, he may take assistance from the local police station for carrying out his duties to search and seizure.
(9) The provisions of this rule shall be in addition to and not in derogation of the provisions of the Code of Criminal Procedure 1973, (2 of 1974), relating to searches and seizures.
5. Disposal of forfeited articles - The articles or class of articles forfeited to the Central Government under section 10 of the Act shall be sold only through the following channels of sales, namely :-
a. Cooperative outlets :
b. Fair price shops affiliated to National Cooperative Consumers Federation :
c. Fair price shops opened by the Central Government or State Government or Handicrafts and Handloom Corporations or Apex Emporia :

Provided that the powerlooms forfeited to the Central Government may be transferred or handed over to powerloom service centre set up by the Central Government or the State Government on depreciated cost to be determined by the Central Government from time to time.




Ministry of Textiles
(Office of the Development Commissioner for Handlooms)
(Enforcement Wing)

Subordinate Legislation Under the Handlooms (Reservation of Article for Production) Act, 1985

NOTIFICATION
G.S.R. 340 (E) 18.4.2000 In exercise of the powers conferred by sub section (1) of Section 19 of the Handlooms (Reservation of Articles for Production) Act, 1985 (22 of 1985), the Central Government hereby makes the following amendments in the Handlooms (Reservation of Articles for Production) Rules, 1986, namely :-

1. Short tile and commencement :-
a. These rules may be called the Handlooms (Reservation of Articles for Production) (Amendment) Rules, 2000.
b. They shall come into force on the date of their publication in the official Gazette.
2. In the Handlooms (Reservation of Articles for Production ) Rules, 1986, -
  i. in rule 1, in sub-rule (2), for the words "on and from" , the words "on" shall be substituted ;
  ii. in rule 2, for claused (b), the following clause shall be substituted, namely :-
    "(b) authorised officer means any officer subordinate to the Central Government or to the State Government not below the rank of Assistant Director, or by whatever name called or to any authority as may be authorised by the Central Government under Section 15 of the Act,"
  iii.in rule 3, in sub rule (2), the word "normally" shall be omitted;
iv. in rule 4, in sub rule (3), in clause (b), at the end, the following words shall be added, namely :-
    "within a period of two months";
v. in rule 4, in sub rule (7), the following sub-rule shall be substituted, namely :-
    "(7) (a) The authorised officer, after search and seizure, shall as soon as possible report the matter to the officer in-charge of the local police station having jurisdiction to investigate the case.
    (b) The authorised officer shall also report the matter to the Central Government or the State Government as the case may be explaining the action taken by him.";
vi. in rule 5, in the proviso, for the words "provided that", the following shall be substituted, namely :-
"provided that the authorised officer shall hold a meeting of the Evaluation Committee comprising of representatives of the aforesaid agencies for evaluation and disposal of the forfeited goods through them :provided further that."