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Section 6: Powers and functions of Member-Secretary of Board

Micro, Small and Medium Enterprises Development Act, 2006 • Official Statutory Text & Practice Guide

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Legal Commentary & Landmark Judgments: Section 6

Section 6 prescribes the substantive functions and statutory duties of the National Board, empowering it to examine structural factors, review sectoral policies, and recommend strategic frameworks for enhancing MSME competitiveness.

  • Comprehensive Sectoral Review: Examination of financial, infrastructural, fiscal, and regulatory factors affecting the promotion, development, and viability of MSMEs across India.
  • Policy Recommendation to Central Government: Formal advisory role regarding credit availability, ease of doing business, technological advancement, and cluster infrastructure.
  • Fund Oversight & Utilization Advice: Formulating guidelines and advising the Central Government on the strategic utilization of the National Small Enterprises Fund and allied promotional funds created under Section 12.
Key Landmark Precedents:
  • Indian Aluminium Co. v. Kerala State Electricity Board (1975) 2 SCC 814: Established that statutory advisory boards act as expert recommendatory bodies whose findings carry substantial weight in judicial review of regulatory and pricing policies.
  • Federation of Indian Mineral Industries v. Union of India (2017) 16 SCC 186: Affirmed that where a statute assigns specific developmental and monitoring functions to a statutory authority, executive action departing arbitrarily from such statutory guidance is vulnerable to challenge under Article 14.
Courtroom Practice & Strategic Litigation Guidance:

Rely on the Board's published reports and recommendations under Section 6 when arguing before High Courts against sudden withdrawal of fiscal exemptions, delayed payment compliances, or restrictive tender criteria imposed by public sector undertakings.

Section 5 All 32 Sections of MSMED Act Section 7