GENUS OVERSEAS ELECTRONICS LTD Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) THE petitioner company is a private company registered under the provisions of the Companies Act, 1956. The Government of Rajasthan as also the Bureau of Industrial Promotion took a decision to give incentives to such industries who are interested in setting up a new industrial unit in Rajasthan and they were assured that a number of fiscal incentives would be made available for new industries such as capital investment subsidy, sales tax exemption/deferment, octroi exemption, subsidy on D.G. Set and testing equipment, etc.

(2.) THE petitioner company set up an electronic unit for manufacturing Hybrid Micro Circuits and SMT Board Assembly. The memorandum of understanding was also signed for manufacturing the aforesaid articles with RIICO on 12.3.1993. In MOU also, the petitioner company was assured to provide a facility upto the extent of Rs. 45 lacs which included the state subsidy as provided under the State Capital Investment Subsidy Scheme for New Industries, 1990.

(3.) THE petitioner company set up a plant of electronic unit in Sitapura Industrial Area, Jaipur. As per the project submitted by the petitioner company, the amount of Rs. IS lacs as subsidy in accordance with the Scheme was sanctioned. The petitioner also took a loan from the Bank of Baroda of a sum of Rs. 30 lacs for land site development, Rs. 75 lacs for building and Rs. 841 lacs for plant and machinery. The petitioner company upto 31st March, 1995 invested total Rs. 749.54 lacs, but the subsidy amount was not disbursed to the petitioner as assured by the respondents under the Subsidy Scheme of 1990.