The Handlooms (Reservation Of Articles For Production) Act, 1985

The Act requires an Advisory Committee to make recommendations for the protection and development of the handloom industry, and from time to time any textile article or class of articles can be reserved for exclusive production by handlooms. 

The Act enables the Advisory Committee to make recommendations regarding the level of employment likely to be generated by the production of handloom articles; the protection of the interests of persons engaged in the handloom industry; and the need for continued maintenance of the industry.

The Act prohibits the production of articles (from the date of reservation) exclusively reserved for handlooms and authorises a government officer to seize the textile articles if it is believed that a powerloom has produced them in contravention of the law. 

The Act allows search and seizure in accordance with the Code of Criminal Procedure 1973.

The Act punishes whosoever produces any article in contravention of the law with an imprisonment or fine. 

Where an offence under this Act has been committed by a company, every person who was at the time responsible for the business of the company, as well as the company, shall be held guilty of the offence and liable to prosecution. 

If the central government is satisfied that it is not possible for the handloom industry to meet the demand for any article outside India, or any such article is required to be produced for purpose of research or for the development of markets, it may, by an order published in the Official Gazette, exempt such article and permit production by any powerloom solely for export or research. 

By an order from the Ministry of Textiles (dated September 3, 2008) a sub-section in the Act reserves 11 class of articles for exclusive production by handlooms. The order includes composition details and range to be reserved under handloom for various items including the saree, dhoti, towel and gamcha, angavastram, lungi, bedsheets, durries and phanek.