The Governor of Karnataka promulgates the Karnataka Industries (Facilitation) (Amendment) Ordinance, 2020


The Governor of Karnataka promulgates the Karnataka Industries (Facilitation) (Amendment) Ordinance, 2020, by a notification dated 2nd July, 2020. This Ordinance amends the Karnataka Industries (Facilitation) Act, 2002.

The Ordinance provides for the following changes:

  1. The term ‘Applicable Acts’ has been enlarged to include a series of twelve additional Acts, related rules and the policies of the Karnataka State Small scale Industries Development Corporation.
  2. The functions of the Nodal Agency have also been enlarged to include the issuance of acknowledgement certificates to the applicant, when combined application forms are received from the manufacturing industries or enterprises. These certificates are issued after the approval of the investment committees such as the State High-Level Clearance Committee, State Level Single Window Clearance Committee or District Level Single Window Clearance Committee, in the prescribed form has been received. Regard must also be had to the purpose for which the land is being acquired or permission for which it is applied.
  3. Furthermore, the Ordinance clarifies that this acknowledgement certificate shall be deemed to be the clearance for setting up or establishing an Industry, granted or issued by the respective departments for an initial period of three years or till the date of commencement of commercial operations, whichever is earlier, from the date of its acknowledgement.
  4. The ordinance also provides for the procedure for self-certification by permitting combined application forms to be furnished with relevant fees and self-certification. If the applicant does not opt to furnish self-certification, then he will have to take all the necessary approvals before setting up or establishing the industry.
  5. The ordinance also amends the provisions relating to inspection to be carried out when warranted and in a manner as may be provided by guidelines. These inspections will be carried out by officers of the respective departments in consultation with the nodal agency and upon approval of the Head of the department concerned
  6. The ordinance also amplifies the penalty provisions by prescribing penal action against the erring manufacturing industry or enterprise and department officers. The manufacturing industries or enterprises who fail to comply with the conditions of the undertaking or the self-certification, or who violate any clauses of the Act or its rules will be punishable with a fine up to Rs. 1 lakh for first-time convictions or up to Rs. 2 lakhs for any subsequent offences. Additionally, penal action may be initiated under other departmental laws as applicable.

Where a departmental officer fails to provide service or approval in a timely manner, during the period of deemed clearance, he will also be subject to penal action under the Sakaala Services Act, 2011

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