THE HANDLOOMS (RESERVATION OF ARTICLES FOR PRODUCTION) ACT, 1985 

______ 

ARRANGEMENT OF SECTIONS 
_________ 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 
3.  Power to specify articles for exclusive production by handlooms. 
4.  Constitution of Advisory Committee. 
5.  Prohibition of production of articles exclusively reserved for handlooms. 
6.  Power to call for information or to furnish samples. 
7.  Power to enter and impact. 
8.  Power to search and seize. 
9.  Search and seizure to be made in accordance with the Code of Criminal Procedure,1973. 
10.  Penalty for contravention of orders made under section 3. 
11.  False statement. 
12.  Attempts and abetment. 
13.  Offences by companies. 
14.  Offences to be cognizable. 
15.  Power to delegate. 
16.  Power of Central Government to give directions. 
17.  Protection of action taken in good faith. 
18.  Power to exempt. 
19.  Power to make rules. 

1 

 
 
 
 
THE HANDLOOMS (RESERVATION OF ARTICLES FOR PRODUCTION) ACT, 1985 

ACT NO. 22 OF 1985 

[29th March, 1985.] 

An Act to provide for reservation of certain articles for exclusive production by handlooms and 

for matters connected therewith. 

BE it enacted by Parliament in the Thirty-sixth Year of the Republic of India as follows:— 

1. Short title, extent and commencement.—(1) This Act may be called the Handlooms (Reservation 

of Articles for Production) Act, 1985. 

(2) It extends to the whole of India. 

(3)  It  shall  come  into  force  on  such  date1  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “Advisory Committee” means the Advisory Committee constituted under section 4; 

(b) “handloom” means any loom, other than power loom; 

(c) “manufacturer” includes the producer and processor, and the expression “manufacture” shall 

be construed accordingly; 

(d) “power loom” means a loom which is worked by power as defined in clause (g) of section 2 

of the Factories Act, 1948 (63 of 1948); 

(e) “processor” means a person engaged in any ancillary process subsequent to the production of 
cloth,  such  as  dyeing,  bleaching,  mercerising,  calendering,  embroidering,  printing,  raising,  cloth 
embossing  or  any  other  finishing  process,  but  does  not  include  a  producer,  and  the  expression 
“process” shall be construed accordingly; 

(f)  “producer”  means  a  person  engaged  in  the  production  of  cloth  on  any  loom,  other  than 
handloom, and shall include a person who owns, works or operates on, a loom for the production of 
cloth, and the expression “produce” shall be construed accordingly. 

3.  Power  to  specify  articles  for  exclusive  production  by  handlooms.—(1)  Notwithstanding 
anything contained in the Industries (Development and Regulation) Act, 1951 (65 of 1951),  the Central 
Government  may,  if  it  is  satisfied,  after  considering  the  recommendations  made  to  it  by  the  Advisory 
Committee, that it is necessary so to do for the protection and development of the handloom industry, by 
order published in the Official Gazette, direct, from time to time, that any article or class of articles shall, 
on and from such date as may be specified in the order (hereinafter referred to as the date of reservation), 
be reserved for exclusive production by handlooms. 

(2)  Every  order  published  under  sub-section  (1)  shall  be  laid,  as  soon  as  may  be  after  it  is  made, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification  in  the  order  or  both  Houses  agree  that  the  order  should  not  be  made,  the  order  shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that order. 

1.  31st  March,  1986,  vide  notification  No.  G.S.R  505(E),  dated 10th  March,  1986,  see  Gazette  of  India,  Extraordinary,  Part  II,         

sec. 3(i). 

2 

 
                                                           
4.  Constitution  of  Advisory  Committee.—(1)  The  Central  Government  shall,  with  a  view  to 
determining the nature of any article or class of articles that may be reserved for exclusive production by 
handlooms, constitute an Advisory Committee consisting of such persons as have, in the opinion of that 
Government, the necessary expertise to give advice on the matter. 

(2)  The  Advisory  Committee  shall,  after  considering  the  following  matters,  communicate  its 

recommendations to the Central Government, namely:— 

(a) the article or class of articles which is being produced by handlooms for mass consumption; 

(b) the article or class of articles which is being produced traditionally by handlooms; 

(c)  the  level  of  employment  likely  to  be  generated  by  the  production  of  the  article  or  class  of 

articles referred to in clause (a) or clause (b) exclusively by handlooms; 

(d) the protection of interests of persons engaged in the handloom industry and the need for the 

continued maintenance of the industry; and 

(e) such other matters as the Advisory Committee may think fit. 

5. Prohibition of production of articles exclusively reserved for handlooms.—Where an order has 
been  made  under  section  3  reserving  any  article  or  class  of  articles  for  exclusive  production  by 
handlooms, such article or class of articles shall not, on and from the date of reservation, be produced by 
any loom, other than handloom: 

Provided that any person who, immediately before the date of reservation of any article or class of 
articles,  was  engaged  in  the  production  of  such  article  or  class  of  articles  in  any  loom,  other  than 
handloom may continue to be so engaged till the expiry of three months from the date of such reservation. 

6.  Power  to  call  for  information  or  to  furnish  samples.—(1)  The  Central  Government  may,  by 

order, require any manufacturer to furnish, for the purposes of this Act,— 

(a)  such  information  in  his  possession  with  respect  to  any  manufacturing  activity  or  business 
carried on by him or by any other person to any officer or authority specified by it in such form and 
within such period as may be specified by that Government in the order; 

(b) such samples of  any articles manufactured by him or by any other person for inspection by 
such officer or authority, at such places and within such period as may be specified by it in the order. 

(2) Where any order has been issued to any manufacturer under sub-section (1), he shall comply with 

such order. 

7.  Power  to  enter  and  impact.—Any  officer  authorised  by  the  Central  Government  (hereinafter 
referred  to  as  the  authorised  officer)  may  enter,  at  all  reasonable  times,  any  place  or  premises  of  any 
manufacturer  in  which  any  textile  articles  are  stored,  kept  or  exposed  for  sale  and  may  require  the 
production for inspection of any books of account, registers, records or other documents kept therein and 
ask for such information relating to the manufacture, storage or keeping for sale of any such articles or to 
any power looms that may be found in such place as he may think fit for the purposes of carrying into 
effect the provisions of this Act. 

8. Power to search and seize.—(1) If the authorised officer has any reason to believe that,— 

(a) any article or class of articles specified in any order made under section 3 is being produced in 

any place in contravention of such order; or 

(b)  any  article  or  class  of  articles  produced  in  contravention  of  such  order  are  secreted  in  any 

place; or 

(c) any article or class of articles is liable to forfeiture under this Act, 

he may enter into and search such place or premises for such article, or class of articles or any powerloom 
which in the opinion of the authorised officer may have been used for the production of such article or 
class of articles. 

3 

 
(2) Where, as a result of any search made under sub-section (1), any article or class of articles or any 
power loom has been found and the authorised officer has reason to believe that such article or class of 
articles has been produced, or such power loom has been used for the production of any article or class of 
articles, in contravention of any order made under section 3, he may seize such article, class of articles or 
power loom, together with the package, covering or receptacle, if any, in which such article or class of 
articles is found: 

Provided that where it is not practicable to seize any article or power loom, the authorised officer may 
serve on the owner of the article or the power loom, as the case may be, an order that he shall not remove, 
part with, or otherwise deal with, the article or power loom except with the previous permission of such 
authorised officer. 

(3)  Where  any  article  or  power  loom  is  seized  under  sub-section  (2)  and  no  prosecution  has  been 
launched within six months of such seizure, it shall be returned to the person from whose possession it 
was seized. 

(4)  The  authorised  officer  may  also  seize  any  documents  or  things  which,  in  his  opinion,  will  be 

useful for, or relevant to, any proceeding under this Act. 

 (5) The person from whose custody any documents are seized under sub-section (4) shall be entitled 

to make copies thereof or takes extracts therefrom in the presence of the authorised officer. 

(6) If any person legally entitled to the documents or things seized under sub-section (4) objects, for 
any  reason,  to  the  retention  by  the  authorised  officer  of  the  documents  or  things,  he  may  make  an 
application to the Central Government stating therein the reasons for such objection and requesting for the 
return of the documents or things. 

(7) On receipt of an application under sub-section (6), the Central Government may, after giving the 

applicant an opportunity of being heard, pass such order as it may think fit. 

9. Search and seizure to be made in accordance with the Code of Criminal Procedure,1973.—
The  provisions  of the  Code  of  Criminal  Procedure,  1973  (2  of  1974),  relating  to  searches  and  seizures 
shall, so far as may be, apply to every search or seizure made under this Act. 

10. Penalty for contravention of orders made under section 3.—Whoever produces any article or 

class of articles in contravention of an order made under section 3,— 

(a) shall be punishable with imprisonment for a term which may extend to six months or with fine 
which may extend to five thousand rupees per loom by which the said article or class of articles is 
produced, or with both, and in the case of a continuing contravention, with an additional fine which 
may extend to five hundred rupees per loom for every day during which such contravention continues 
after conviction for the first such contravention; and 

(b) the article or class of articles in respect of which the order has been contravened or any power 
loom by the use of which such order is contravened, including any package, covering or receptacle in 
which the article or class of articles is found, shall be forfeited to the Central Government: 

Provided that if the court is of opinion that it is not necessary to direct forfeiture in respect of any 
of the articles, power loom or any package, covering or receptacle, it may, for reasons to be recorded, 
refrain from doing so. 

11. False statement.—If any person,— 

(a) when required by any order made under section 6 to furnish any information or sample, makes 
any  statement  or  furnishes  any  information  which  is  false  in  any  material  particular  and  which  he 
knows,  or  has  reasonable  cause  to  believe,  to  be  false  or  does  not  believe  it  to  be  true,  or  fails  to 
furnish such sample or damages or destroys any article from which such sample was required; or 

(b)  when  required  by  the  authorised  officer  under  section  7  to  produce  any  books  of  account, 
registers,  records  or  other  documents,  fails  to  produce,  or  damages  or  destroys  any  such  books, 
registers or other documents, 

4 

 
he  shall  be  punishable  with  imprisonment  for  a  term  which  may  extend  to  three  months,  or  with  fine 
which may extend to five thousand rupees, or with both. 

12. Attempts and abetment.—Any person who attempts to contravene or abets the contravention of 

any order made under section 3 shall be deemed to have contravened that order. 

13.  Offences  by  companies.—(1)  Where  an  offence  under  this  Act  has  been  committed  by  a 
company, every person who at the time the offence was committed was in charge of, and was responsible 
to, the company for the conduct of the business of the company, as well as the company, shall be deemed 
to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided  that  nothing  contained  in  this  sub-section  shall  render  any  such  person  liable  to  any 
punishment provided in this Act, if he proves that the offence was committed without his knowledge or 
that he had exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been 
committed  by  a  company  and  it  is  proved  that  the  offence  has  been  committed  with  the  consent  or 
connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other 
officer  of  the  company,  such  director,  manager,  secretary  or  other  officer  shall  also  be  deemed  to  be 
guilty of that offence and shall be liable to be proceeded against and punished accordingly. 

Explanation.—For the purposes of this section,— 

(a)  “company”  means  any  body  corporate  and  includes  a  cooperative  society  registered  or 
deemed  to  be  registered  under  any  law  for  the  time  being  in  force,  a  firm  or  other  association  of 
individuals; and 

(b) “director”, in relation to a firm, means a partner in the firm. 

14.  Offences  to  be  cognizable.—Notwithstanding  anything  contained  in  the  Code  of  Criminal 

Procedure, 1973 (2 of 1974), every offence punishable under this Act shall be cognizable. 

15. Power to delegate.—The Central Government may, by order, direct that the powers exercisable 
by it under any provision of this Act, other than the power to make orders under section 3 or under section 
18 or to make rules under section 19, shall in relation to such matters and subject to such conditions, if 
any, as may be specified in the direction, be exercisable also by— 

(a) such officer or authority subordinate to the Central Government; or 

(b) such State Government or such officer or authority subordinate to a State Government, 

as may be specified in the direction. 

16.  Power  of  Central  Government  to  give  directions.—The  Central  Government  may  give  such 
directions  as  it  may  consider  necessary  to  a  State  Government  as  to  the  carrying  into  execution  of  the 
provisions of this Act. 

17. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie  against  the  Central  Government,  State  Government  or  any  officer  or  employee  of  the  Central 
Government  or  of  any  State  Government  or  any  authorised  officer  for  anything  which  is  in  good  faith 
done or intended to be done under this Act or an order made under section 3. 

18. Power to exempt.—(1) If the Central Government is satisfied that the demand for any article or 
class of articles reserved by an order under section 3 outside India is such that it is not possible for the 
handloom industry to meet such demand or any such article or class of articles is required to be produced 
for purposes of research or for the development of markets for such article or class of articles or of the 
handloom  industry  generally,  it  is  necessary  or  expedient  so  to  do,  it  may,  by  order  published  in  the 
Official Gazette, exempt such article or class of articles from the operation of such order, and permit such 
article  or  class  of  articles  to  be  produced  by  any  power  loom  solely  for  the  purposes  of  export  or  for 
research by such institutions as may be specified in the order. 

5 

 
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each 
House of Parliament, while it is in session, for a total period of thirty days which may be comprised in 
one session or in two or more successive sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the order or both Houses agree that the order should not be made, the order shall thereafter have effect 
only in such modified form or be of no effect, as the case may be; so, however, that any such modification 
or annulment shall be without prejudice to the validity of anything previously done under that order. 

19. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules for carrying out the purposes of this Act. 

(2)  Every  rule  made  under  this  Act  shall  be  laid,  as  soon  as  may  be  after  it  is  made,  before  each 
House of Parliament, while it is in session, for  a total period of thirty days which may be comprised in 
one session or in two or more successive  sessions, and if, before the expiry of the session immediately 
following the session or the successive sessions aforesaid, both Houses agree in making any modification 
in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so, however, that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

6 

 
