The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981
Parliament enacted the Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981, Act Number 31 of 1981, dated 15 September 1981, to transfer the company’s undertakings to the Central Government and secure continued cement production and distribution. Deemed effective from 23 June 1981, the Act was amended by the Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Amendment Act, 2006 and the Jan Vishwas (Amendment of Provisions) Act, 2026.
What the law does
The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981 transferred the company’s undertakings, together with its rights, title and interests in them, to the Central Government from 23 June 1981. Parliament enacted the law after the company had entered winding-up proceedings and its undertakings had stopped functioning, with the stated purpose of continuing the manufacture, production and distribution of portland cement.
Property and assets covered
The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981 covers all assets and rights forming part of the company’s undertakings immediately before 23 June 1981. These include:
- Land, buildings, workshops, stores, machinery and equipment.
- Leasehold interests, privileges, powers and authorities.
- Cash, investments, reserve funds and book debts.
- Books of account, registers and other related documents.
- Property and interests located within or outside India.
Covered property vested free from trusts, mortgages, charges, liens and other encumbrances. Court attachments, injunctions, decrees or orders restricting use of that property were treated as withdrawn.
Transfer to the Cement Corporation of India
The Central Government could direct that the acquired undertakings vest in the Cement Corporation of India, subject to stated terms and conditions. The text records vesting through Government of India, Ministry of Industry (Department of Industrial Development), notification number S.O. 502(E), dated 23 June 1981.
After vesting, the Cement Corporation of India became the owner and obtained management and control of the undertakings. Its powers include disposing of undertaking assets where considered necessary because of legal or financial considerations.
Who may be affected
The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981 may affect a buyer, owner, lender or claimant dealing with land or another asset that belonged to the company’s undertakings immediately before 23 June 1981.
- A mortgage, charge, lien or other interest cannot be enforced against vested property.
- A person holding such an interest may claim payment from the acquisition amounts through the Commissioner of Payments.
- Liabilities relating to periods before 23 June 1981 remain liabilities of Dalmia Dadri Cement Limited, not the Central Government or the Cement Corporation of India.
- Existing licences connected with the undertakings continue according to their terms.
- Pending property proceedings may continue by or against the Central Government or the Cement Corporation of India, as applicable.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Does this law apply generally to private land in Tamil Nadu?
It applies specifically to property and rights forming part of the undertakings of Dalmia Dadri Cement Limited immediately before 23 June 1981. The covered property may be within or outside India.
Can an old mortgage or charge be enforced against land acquired under this law?
No. Mortgages, charges, liens and other interests were discharged from the vested property, although the holder may claim payment through the Commissioner of Payments according to their rights.
Did the Central Government take responsibility for the company’s earlier debts?
No. Liabilities relating to periods before 23 June 1981 remained liabilities of Dalmia Dadri Cement Limited and were not enforceable against the Central Government or the Cement Corporation of India.
What happened to court cases involving the acquired property?
Pending suits, appeals and other proceedings did not end because of the transfer. They could continue by or against the Central Government or, after vesting, the Cement Corporation of India.
