The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981 was enacted on September 15, 1981 and came into effect on June 23, 1981. The Dalmia Dadri Cement Limited which is situated in the State of Haryana in Charkhi Dadri was operating in a substandard condition. The Company was issued license to have a production of 2.39 lakhs in a year which is working under the supervision of the Central Government. In 1975, the Company had to face financial instability which led to the mismanagement of the Company and thereafter it was sealed down due to less productivity. Even though the manufacture restarted in 1985 with the assistance of Central as well as the State Government and also various financial organizations, the Company could not function properly. The Company failed to exercise the activities under the terms of Industries (Development and Regulation) Act. In addition, negative opinion was given by the Investigating Committee with regard to the operation of the Company. In the year 1980, the administration of the factory was shut down and after that the Company was unable to carry out the function.

Due to the closure of the Company, there arose cement deficit in the locality and many people lost their job due to termination. Hence, the Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Act, 1981 was enacted for acquiring and assigning the establishments under the Dalmia Dadri Cement Limited to attain the perfect administration of the establishments to sub-serve the rights of the society by guaranteeing the regular production and allocation of the cement that are necessary to the national economic development.

The Act states that from the date of commencement of the enactment, the establishments under the Factory and all the rights, reference, supremacy and the entire interest therein shall be assigned to and held under the Government of India. The entire benefits of the Company including the account details and cash balances, records etc added with charges and obligations shall be held under the Central Government. The land, buildings and other assets thus assigned shall be freed from all kinds of liabilities and court proceedings. The license issued to the Company with respect to the establishment shall also be consigned to the Government of India during any period prior to enforced day and the Cement Corporation working under the Government shall act in place of the license in the same way that the license was issued to the Corporation. The said Corporation shall continue its activities under such license for the remaining term of license. Where any court proceedings are pending, such proceedings shall not be stopped and continue against the Government of India.

Besides, all the obligations of the Company with regard to the term previous to the effected date shall be implemented against the Company itself and the Government of India shall not be responsible for such liabilities. But if it is specifically stated that the Corporation shall be liable, then the statement shall be enforced. The Central Government is given the supremacy to issue direction that the establishments under the guidance of the Company and all the interests of such Company that are consigned to the Central Government shall be held under the Corporation by publicizing in the Gazette or on a prior or subsequent date. The Corporation shall be considered to be the owner in connection with the establishments and the privileges including the responsibilities of the Government of India shall also hold under the Corporation.

Under the repealing and saving clause, the Act states that the present enactment annuls The Dalmia Dadri Cement Limited (Acquisition and Transfer of Undertakings) Ordinance, 1981 and without considering such cancellation, the functions carried out and the decisions taken as per the terms of the Ordinance shall be believed to be performed as per the similar terms of the present legislation.