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Labour NOC

Settlement of Labour Dues Before Transfer of Industrial Property In Maharashtra

Industrialists have been experiencing lot of difficulties in obtaining Labour Commissioner NOC while transfer of their industrial assets. In order to ensure that the labour dues are settled and also to ensure that the industrial land and assets do not lie idle, the Government of Maharashtra has issued various directives from time to time.

Government Resolution (GR) Dt. 30 Oct, 2007

Labour dues should be settled and Labour Commissioner NOC should be obtained before transfer of Industrial Land.

Click here to view Government Resolution (GR) Dt. 30 Oct, 2007

Government Resolution (GR) Dt. 12 Jan, 2009

If there are cases of settlement of labour dues pending  in any of the courts in India and the owner of the property wishes to transfer the property, the owner must mutually settle the matter with Labourers / Union and thereafter obtain the Labour Commissioner NOC before transfer of industrial property.

Click here to view Government Resolution (GR) Dt. 12 Jan, 2009

Government Resolution (GR) Dt. 18 May, 2016

Freehold Industrial Land

If the company / factory outside MIDC area is closed for more than 7 years and to restart industrial activity  on the same and if the labour dues are pending with the company, as per the directives of the Labour Commissioner, the plot holder and the buyer has to give an ‘Undertaking-cum Indemnity Bond’ on Rs. 300/- Stamp Paper duly notarized

The plot can also be transferred to the new buyer for industrial activity. Government Resolution (GR) dated 30 Oct, 2007 and 12 Jan, 2009 will not be applicable in such cases.

However if the company / factory outside MIDC area is closed for less than 7 years, then ‘Labour Commissioner NOC’ is compulsory before transfer of plot in term of Government Resolution (GR) dated 30 Oct, 2007 and 12 Jan, 2009.

MIDC Industrial Land

At the time of transfer of Plot / Shed / Gala of MIDC Industrial Areas, if the labour dues are pending in any of the courts, then the plot holder and the buyer (if available) have to give a joint ‘Undertaking-cum Indemnity Bond’ on Rs. 300/- Stamp Paper duly notarised that they will clear the labour dues within 3 years to the Labour Commissioner with a copy to MIDC (Format with circular). The MIDC will transfer such plot for industrial use only.

However if it comes to the notice of the Labour Department that they use the land for other purpose than industrial and also fail to settle the labour dues within stipulated time, in such event  the Labour Commissioner has been given directives to cancel such transfer.

The Government Resolution (GR) dated 30 Oct, 2007 and 12 Jan, 2009 will not be applicable for sale / transfer/ redevelopment of land for industrial use in MIDC.

The MIDC vide Circular No. C52073 dated 08 Aug, 2016 has also reproduced the contents of the above said Government Resolution (GR) dated 18 May, 2016

Click here to view Government Resolution (GR) Dt. 18 May, 2016 for Marathi Version

Click here to view Government Resolution (GR) Dt. 18 May, 2016 for English Version

Click here to view MIDC Circular No. C52073 Dt. 08 Aug, 2016

ASCC will be happy to help you in settlement of Labour Dues for any Industrial Property in Maharashtra. Do email us on services@ascconline.com.

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