ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 11.06.2025
BIS can be enforced through QCO only on Scheduled Industry under the IDR Act, 1951
The Industries (Development and Regulation) Act, 1951 (IDRA) is a cornerstone in the legal and regulatory architecture of industrial policy in India. Enacted on 8th October 1951, the Act was passed under Entry 52 of the Union List of the Constitution of India, which empowers the Central Government to regulate industries declared by Parliament to be under its control in public interest.
The IDRA laid the legislative foundation for Indiaβs planned economic growth in the post-independence era. It served as the backbone of industrial licensing, control, and regulation, commonly referred to as the βLicense Raj.β
Even though economic liberalization in 1991 significantly relaxed licensing controls, the Act continues to apply in critical sectors such as defence, hazardous chemicals, and atomic energy, and was last substantively amended in 2016.
Objectives of the Act
The key objectives of the IDRA, 1951 include:
- Government intervention in mismanaged or non-performing industrial units
- Regulation and development of scheduled industries in accordance with national policy
- Equitable distribution of resources and balanced regional development
- Control over production, quality, pricing, and distribution of essential industrial goods
- Preventing monopolistic and unfair trade practices
This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Source: IDRA Act, 1951 & BIS Act, 2016 (DPIIT/BIS)
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