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THE NORTH-EASTERN AREAS (REORGANIZATION) ACT, 1971

Title : THE NORTH-EASTERN AREAS (REORGANIZATION) ACT, 1971

Year : 1971



(1)The following bodies corporate constituted for the existing State of Assam, namely:-

(a) The State Electricity Board constituted under the Electricity (Supply) Act, 1948;and

(b) The State Warehousing Corporation established under the Warehousing Corporations Act, 1962,shall,on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day, subject to the provisions of this section and to such directions as may, from time to time, be issued by the Central Government.

(2)Any directions issued by the Central Government under sub-section (1)in respect of the Board or the Corporation may include a direction that the Act under which the Board or the Corporation was constituted shall,in its application to that Board or Corporation,have effect subject to such exceptions and modifications as the Central Government thinks fit.

(3)The Board or the Corporation referred to in sub-section(1)shall cease to function as from, and shall be deemed to be dissolved on, the expiry of a period of [thirty-eight months]1*from the appointed day or such earlier date as the Central Government may, by order, appoint; and upon such dissolution, its assets, rights and liabilities shall be apportioned between the successor States in such manner as may be agreed upon among them within one year of the dissolution of the Board or the Corporation, as the case may be, or if no agreement is reached, in such manner as the Central Government may, by order,determine.

(4)Nothing in the preceding provisions of this section shall be construed as preventing the Government of any of the successor States from constituting at any time on or after the appointed day, a State Electricity Board or a State Warehousing Corporation for that State under the provisions of the Act relating to such Board or Corporation;and if such a Board or a Corporation is so constitute din any of the successor States before the dissolution of the Board or the Corporation referred to in sub-section (1),-
           
(a) Provision may be made by order of the Central Government enabling the new Board or the new Corporation to take over from the existing Board or Corporation all or any of its undertakings, assets, rights and liabilities in that State,and

(b) Upon the dissolution of the existing Board or Corporation,-

(i)any assets, rights and liabilities which would otherwise have passed to that State by or under the provisions of sub-section (3)shall pass to the new Board or the new Corporation instead of to that State;

(ii) Any employees who would other wise have been transferred to or re-employed by that State under sub-section (3), read with clause (i)of sub-section(5),shall be transferred to or re-employed by the new Board or the new Corporation instead of to or by that State.

(5)An agreement entered into between the successor States under sub-section (3)and an order made by the Central Government under that sub-section or under clause (a) of sub-section(4) may provide for the transfer or re-employment of any employees of the Board or the Corporation referred to in sub-section (1),-

(i) To or by the successor States, in the case of an agreement under sub-section (3)or an order made under that sub-section;

(ii) To or by the new Board or the new Corporation constituted under sub-section(4), in the case of anorder made under clause (a) of that sub-section,and subject to the provisions of section 58, also for the terms and conditions of service applicable to such employees after such transfer or re-employment.

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1.Substituted for the words "three years" by the North Eastern Areas(Reorganisation) Amendment Act, 1975 (3of 1975),S. 2 (w.r.e.f. 19-1-1974).

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If it appears to the Central Government that the arrangement in regard to the generation or supply of electric power or the supply of water for any area or in regard to the execution of any project for such generation or supply has been or is likely to be modified to the disadvantage of that area by reason of the fact that it is, by virtue of the provisions of Part II, outside the State in which the power stations and other installations for the generation and supply of such power, or the catchment area, reservoirs and other works for the supply of water, as the case may be, are located, the Central Government may give such directions as it deems fit, to the State Government or other authority concerned for the maintenance, so far as practicable, of the previous arrangement.



(1) The Assam Slate Financial Corporation established under the State Financial Corporations Act, 1951 shall, on and from the appointed day, continue to function in those areas in respect of which it was functioning immediately before that day, subject to the provisions of this section and to such directions as may, fro in lime to time, be issued by the Central Government.

(2) Any directions issued by the Central Government under sub-section (1) in respect of the Corporation may include a direction that the said Act, in its application to the Corporation, shall have effect subject to such exceptions and modifications as may be specified in the direction.

(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Board of Directors of the Corporation may, with the previous, approval of the Central Government and shall, if so required by the Central Government, convene at any time after the appointed day a meeting for the consideration of a scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation, including proposals regarding the formation of new Corporations, and the transfer thereto of the assets, rights and liabilities of the existing Corporation, and if such a scheme is approved at a general meeting by a resolution passed by a majority of the shareholders present and voting, the scheme shall be submitted to the Central Government for its sanction.

(4) If the scheme is sanctioned by the Central Government either without modifications or with modifications which are approved at a general meeting, the Central Government shall certify the scheme, and upon such certification the scheme shall, notwithstanding anything to the contrary contained in any law for the time being in force, be binding on the Corporations affected by the scheme as well as the shareholders and creditors thereof.

(5) If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to such Judge of the common High Court as may be nominated in this behalf by the Chief Justice thereof, and the decision of the Judge in regard to the scheme shall be final and shall be binding on Corporations affected by the scheme as well as the shareholders and creditors thereof.

(6) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the State of Meghalaya from constituting, at any time after the appointed day and with the approval of the Central Government, a State Financial Corporation for that Slate under the State Financial Corporations Act, 1951.



(1) Save as otherwise expressly provided by the foregoing provisions of this Part, where any body corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Assam or any part thereof has, by virtue of the provisions of Part II, become an inter-State body corporate, then, the body corporate shall, on and from the appointed day, continue to function and operate in those areas in respect of which it was functioning and operating immediately before that day, subject to such directions as may from time to time be issued by the Central Government, until other provision is made by law in respect of the said body corporate.

(2) Any directions issued by the Central Government under sub-section (1) in respect of any such body corporate may include a direction that any law by which the said body corporate is governed shall, in its application to that body corporate, have effect, subject to such exceptions and modifications as may be specified in the direction.



(1) Notwithstanding anything contained in section 63 of the Motor Vehicles Act, 1939, a permit granted by the State or a Regional Transport Authority in the existing State of Assam shall, if such permit was, immediately before the appointed day, valid and effective in any area therein, be deemed to continue to be valid and effective in that area after that day subject to the provisions of that Act as for the time being in force in that area and it shall not be necessary for any such permit to be countersigned by any State or Regional Transport Authority for the purpose of validating it for use in such area:

Provided that the Central Government may, after consultation with the State Government or Governments concerned, add to, amend or vary the conditions attached to the permit by the authority by which the permit was granted.

(2) No tolls, entrance fees or other charges of a like nature shall be levied after the appointed day in respect of any transport vehicle for its operations in any of the successor States under any such permit, if such vehicle was immediately before that day exempt from the payment of any such tolls, entrance fees or other charges for its operations within the existing State of Assam:

Provided
that the Central Government may, after consultation with the State Government or Governments concerned, authorise the levy of any such tolls, entrance fees or other charges, as the case may be.



Where, on account of the reorganisation of the existing State of Assam under this Act, any body corporate constituted under a Central Act, State Act or Provincial Act, any co-operative society registered under any law relating to a co-operative societies or any commercial or industrial undertaking of that State is reconstituted or reorganised in any manner whatsoever or is amalgamated with any other body corporate, co-operative society or undertaking, or is dissolved, and in consequence of such reconstitution, reorganisation, amalgamation or dissolution, any workman employed by such body corporate or any such co-operative society or undertaking, is transferred to, or re-employed by, any other body corporate, or in any other co-operative society or undertaking, then, notwithstanding anything contained in section 25F, 25FF or 25FFF of the Industrial Disputes Act, 1947, such transfer or re-employment shall not entitle him to any compensation under that section:

Provided that-

(a) The terms and conditions of service applicable to the workman after such transfer or re-employment are not less favourable to the workman than those applicable to him immediately before the transfer or re-employment; and

(b) The employer in relation to the body corporate, the co-operative society or the undertaking where the workman transferred or re-employed is, by agreement or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation under section 25F, 25FF or 25FFF of the Industrial Disputes Act, 1947, on the basis that his service has been continuous and has not been interrupted by the transfer or re-employment.



Where the assets, rights and liabilities of any body corporate carrying on business are, under the provisions of this Part, transferred to any other bodies corporate which after the transfer carry on the same business, the losses or profits or gains sustained by the body corporate first mentioned which, but for such transfer, would have been allowed to be carried forward and set-off in accordance with the provisions of Chapter II of the Income-tax Act, 1961, shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the said Act as if the transferee body corporate had itself sustained such ' loss in a business carried on by it in the years in which these losses were sustained.



(1) The Government of the State of Assam or Meghalaya or, as the case may be, the Central Government in relation to the Union territory of Mizoram shall, in respect of the institutions specified in the Seventh Schedule located in that State or Union territory continue to provide facilities to any other Government aforesaid and the people of the States and Union territory aforesaid which shall not, in any respect, be less favourable to such Government and people than what were being provided to them before the appointed day, for such period and upon such terms and conditions (including those relating to any contributions to be made for the provision of such facilities) as may be agreed upon between the said Government before the expiry of a period of one year from the appointed day or, if no agreement is reached before such expiry, as may be fixed by order of the Central Government.

(2) The Central Government may at any time before the expiry of a period of one year from the appointed day by notification in the Official Gazette, specify in the Seventh Schedule any other institution existing on the appointed day in the said States and Union territory and on the issue of such notification, the said Schedule shall be deemed to be amended by the inclusion of the said institution therein.

Last updated on August, 2016

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