Indian Sugar December 1953

In view of the large financial liability and inability of the factories to meet the cost entirely we feel that the only way to encourage shifting of factories is for the Government of India and the State Governments concerned to agree to contribute 50% of the cost. [...] The Government of India's policy leading to the import of sugar during the last year was criticised in the House of the People as also in the Council of States while discussing the supplementary demands for import of sugar. [...] Justice Mahajan with whom other judges concurred rejected the contention of the Attorney Genral that the effect of the Ordinance was that the Goverment took under its superintendence the affairs of the Company without in any way disturbing its title in the property and held that the impugned statute had ovestepped the limits of legitimate social control legislation and had infringed the [...] The combined effect of the provisions of Setions 3 4 and 12 was that the Central Government bcame vested with the possession and control of the prperty of the company and the normal function of the Company under its Articles and the Indian Companies. [...] Throughout this period the prfit margin of the industry was fixed in the controlled rates at the pre-war level regardless of the increase in taxation rates and the decrease in the virtual value of the rupee.