Sections 74 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 74 of the Occupational Safety, Health and Working Conditions Code, 2020 (the OSH Code) requires an employer to hold a licence before using any place as an industrial premises for the purposes of Part V (beedi and cigar workers). It sets the application, the matters the authority considers, five year validity, renewal and cancellation. Section 75 gives a right of appeal.
No employer may use or allow the use of premises as an industrial premises without a valid licence under section 119, or otherwise than on its terms (74(1)). The application states the maximum number of employees at any time of the day and carries a plan (74(3)). A licence is valid for five years and renewable (74(5)); renewal is applied for at least thirty days before expiry, and the licence continues until the renewal or rejection (74(6)). A refusal must be in writing with reasons (74(9)). Anyone aggrieved by a refusal, cancellation or suspension can appeal (75).
At a glance
| Sub-section | Content |
|---|---|
| 74(1) | Valid licence under section 119 needed to use premises as industrial premises; use only per licence terms |
| 74(2) | Application in the form and with fees prescribed by the State Government |
| 74(3) | Application states maximum number of employees at any time of the day; accompanied by a plan |
| 74(4) | Authority considers five matters in granting or refusing |
| 74(5) | Licence valid for five years, renewable |
| 74(6) | Renewal application at least thirty days before expiry; licence deemed to continue until renewal or rejection |
| 74(7) | Authority may cancel or suspend after hearing for misrepresentation, fraud, contravention or breach of terms |
| 74(8) | State Government may issue general directions in writing |
| 74(9) | Terms and conditions may be imposed; refusal by written order with reasons |
| 75 | Appeal to the appellate authority under section 119(6); order may confirm, modify or reverse |
Which premises
Section 2(1) defines industrial premises as any place or premises (not being a private dwelling house), including its precincts, in which any industry, trade, business, occupation or manufacturing is ordinarily carried on, with or without power, and includes an attached godown. The licence in section 74 is for the purposes of Part V, and the matters the authority weighs refer to manufacture of beedi or cigar. Private dwellings and family work are dealt with in sections 76–78.
Section 74: applying and deciding
Who applies. "Any person who intends to use or allows to use" the premises applies to the authority under section 119(1); see our article on section 119 for the common licence. The form and fees are prescribed by the State Government, so the State's rules govern.
What goes in. The application specifies the maximum number of employees proposed to be employed at any time of the day and is accompanied by a plan of the place prepared in the prescribed manner.
What the authority weighs (74(4)).
- suitability of the place for the manufacture of beedi or cigar or both;
- the applicant's previous experience, or employed experienced person, or agreement with an experienced person for the licence period;
- financial resources, including capacity to meet demands under welfare of labour laws;
- whether the application is bona fide or in benami of another person;
- welfare of labour in the locality, public interest and other prescribed matters.
The overall grant or renewal also depends on the authority being satisfied that the Part and rules are complied with (first proviso to 74(6)).
Validity, renewal, cancellation
- Validity: five years, and may be renewed (74(5)).
- Renewal: apply at least thirty days before expiry, with prescribed fees. If you have applied, the licence continues despite expiry until the renewal or rejection (74(6)). The authority renews or refuses within the period the State Government prescribes, having regard to the 74(4) matters.
- Cancellation or suspension: after giving an opportunity of being heard, where the licence was obtained by misrepresentation or fraud, or the licence holder contravened or failed to comply with the Part, rules or licence terms (74(7)).
- Directions: the State Government may issue general directions in writing to the authority on grant or renewal (74(8)).
- Refusal: if the authority refuses to grant or renew, it does so by an order communicated to the applicant, giving written reasons (74(9)). It may grant or renew on terms and conditions it determines.
The renewal rule protects a licensee who files on time; one who files late loses that protection, because the deemed continuation depends on an application having been made.
If you operate beedi or cigar premises and want your licence expiry, headcount and plan checked against a renewal calendar, our labour law compliance team can help.
Section 75: appeal
Any person aggrieved by the decision of the authority under section 119(1) refusing to grant or renew, or cancelling or suspending a licence under this Part may appeal within such time and on payment of such fees as prescribed to the appellate authority under section 119(6). That authority may by order confirm, modify or reverse the decision. The time limit for this Part is left to the rules, unlike the 30 days in section 52 for contractor licences; see sections 51–52.
Central Rules, 2026
The Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026) apply where the Central Government is the appropriate Government. For this licence, the Code itself gives the State Government the powers to prescribe forms, fees, plans, renewal period and appeal details, so the State's rules are the ones to check. The Central Rules deal with beedi and cigar premises in Rules 33 to 35 on cleanliness, ventilation and dust; see Rules 33–35.
Practical points
- Diarise expiry minus 30 days as the last day to apply for renewal.
- Keep the plan and headcount aligned: the maximum employees at any time of the day is in the licence application.
- Record the application with proof of filing, because deemed continuation depends on it.
- Keep the 74(4) matters evidenced: experience, finances and bona fides.
- Respond to hearing notices before any cancellation or suspension.
- If refused, use the written reasons to decide on appeal under section 75 and check the State's time limit.
Example. A beedi manufacturer's five year licence expires on 30 June. It files the renewal application on 15 May and pays the State fee, so the licence continues after 30 June until the authority decides. The authority refuses, giving reasons in writing, and the manufacturer appeals to the appellate authority within the period the State rules prescribe.
Need help with an industrial premises licence?
Licence renewals fail on dates and on missing records. Our labour law compliance team can prepare the renewal file, check the headcount and plan against the licence and advise if a refusal or cancellation notice arrives.
Key takeaways
- Beedi and cigar industrial premises need a valid licence under section 119 (74(1)).
- Licence lasts five years; renewal application at least thirty days before expiry keeps it alive until decided (74(5)–(6)).
- Refusal must be in writing with reasons; cancellation or suspension follows a hearing (74(7), (9)).
- Appeal lies under section 75; forms, fees and time come from State rules.
Read next
- Sections 76–78: wetting of beedi leaves, private dwellings and prohibited employment
- Section 119: common licence for factory, contractor and industrial premises
- Sections 71–73: exemption, rescue and decision on whether a working is a mine
- Factory licence renewal: process and validity
Disclaimer: Based on the Occupational Safety, Health and Working Conditions Code, 2020 (as enacted) and, where noted, the Occupational Safety, Health and Working Conditions (Central) Rules, 2026 (G.S.R. 345(E), 8 May 2026), as on 30 September 2026. The Code is in force from 21 November 2025; some provisions may be notified later, and State Governments make their own rules for establishments where the State is the appropriate Government. Verify the current position before acting.