The Kerala Micro Small and Medium Enterprises Facilitation Act 2019

’ GOVERNMENT OF KERALA ; : Law (Legislation-C) Department NOTIFICATION No. 21498/Leg.C3/2019/Law. Dated, Thiruvananthapuram, 7th December, 2019 21° Vrischikam, 1195 16th Agrahayana, 1941. In pursuance of clause (3) of Article 348 of the Constitution of India, the Governor of | Kerala is pleased to authorise the publication in the Gazette of the following translation in English ! language of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 (16 of 2019). By order of the Governor, | i ARAVINTHA BABU, P.K., Law Secretary. ssa a] This is a digitally signed Galette. Bg Authenticity may be Verified through https://compose kerala.gov.in/ f . Ei]

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(Translation in English of “2019-081 MUVIAD-62I0}B]S-DSOMO QAAUTVOID

N0AIMEBRUD MVNA SH@ ERE" published under the authority of the Governor] | ACT 16 OF 2019 THE KERALA i SMALL AND MEDIUM ENTERPRISES FACILITATION ACT, 2019 : An Act to providy for exemption from certain approvals and inspections required for the establishment and operation of micro small and medium enterprises in the State and matters i therewith and incidental thereto.

Preambiq—WHEREAS, it is expedient to give effect to exemption from certain approvals and inspections required for establishment and operation of micro small and medium enterprises in the State and ee connected therewith and incidental thereto;

BEit ee in the Seventieth Year of the Republic of India, as follows: —

(1) This Act may be called the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019. (2) It shall come into force at once.

In this Act: unless the context otherwise requires,- (a) "Acknowledgement Certificate" means the Acknowledgement Certificate issued under sub-section (3) of section 5; (b) "Appellate Authority" means the Appellate Authority constituted under sub-section (1) of section 12; (c) "approval" means licenses, permissions, approvals, clearances, registration, consents, no objection certificate and the like, required under any State law in connection with the establishment or operation of micro small and medium enterprise in the State; (d) "competent Authority" means any department or agency of the Government, statutory body, Corporation owned by State, Local Self Government Institutions, Urban Development Authorities, or any other Authority or Agency constituted or established by or under any State law or under the administrative control of the Government, which is entrusted with the powers or responsibilities to grant or issue approval for establishment or operation of enterprises in the State; (e) "District Board" means the District Board constituted under section 4 of the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 2000); (f) "enterprise" means micro small or medium enterprises; (g) "Government" means the Government of Kerala; (h) "micro, small or medium enterprises" means the micro, small or medium enterprises, as defined in the Micro Small and Medium Enterprises Development Act, 2006 (Central Act 27 of 2006); (i) "nodal agency" means nodal agency referred to in section 3; (j) "notification" means a notification published in the Official Gazette of the Government of Kerala; (k) "prescribed" means prescribed by rules made under this Act; (l) "State" means the State of Kerala; (m) "State Board" means the State Board constituted under section 3 of the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 2000).

The District Board constituted under section 4 of the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, shall be the nodal agency for the purpose of this Act.

Subject to the superintendence, direction and control of the Government, the powers and functions of the nodal agency shall be as follows, namely:- (a) to assist and facilitate the establishment of enterprises in the State; (b) to maintain the record of self certification and Acknowledgement Certificate received under sub-section (3) of section 5; (c) the Government may, assign such other powers and functions to the nodal Agency as it may deem fit for giving effect to the provisions of this Act.

(1) An acknowledgment certificate issued under section 5 shall, for all purposes, have effect as if it is an approval as defined in clause (c) of section 2, for a period of three years from the date of its issuance and after the expiry of the said period of three years, such enterprise shall have to obtain required approvals as defined in clause (c) of section 2, within six months from the date of such expiry: Provided that the acknowledgement certificate shall not entitle a person to use a land contrary to the provisions contained in the Kerala Conservation of Paddy Land and Wetland Act, 2008 (28 of 2008) and it shall also not entitle a person to use the land in deviation to the land use specified in the master plan notified under the Kerala Town and Country Planning Act, 2016 (9 of 2016), wherever such plan is in force. (2) during the period of three years specified in sub-section (1), no competent authority shall undertake any inspection for the purpose of, or in connection with, any approval as defined in clause (c) of section 2.

Where the Government or any authority under it is empowered to exempt any enterprise from any approval or inspection or any provisions relating thereto under any Central Act, the Government or any such authority, as the case may be, shall, subject to the provisions of such Central Act, exercise such powers to grant such exemption to an enterprise established in the State for a period of three years from the date of issue of the acknowledgement certificate under section 5.

(1) If the nodal agency finds, that any enterprise, contravened the conditions or undertaking in the self certification given to the nodal agency such enterprise shall be punishable with fine for an amount not exceeding Rs. 5,00,000 after considering submission, if any, submitted by such enterprise. (2) Where an offence under this Act is committed by an enterprise, the enterprise as well as every person in charge of, and responsible to, the enterprise for the conduct of its business at the time of commission of the offence, shall be deemed to be guilty of the offence and liable to be punished under this section. (3) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or that commission of the offence is attributable to any neglect on the part of proprietor, managing partner, any director, manager, secretary or any other officer, such proprietor, managing partner, director, manager, or any other officer shall also be deemed to be guilty of that offence and shall be liable to be punished under this section. Explanation:-For the purpose of this section,- (a) enterprise means any body corporate and includes a firm or other association of individuals; and (b) director in relation to a firm, means a partner in the firm.

No suit, prosecution or other legal proceedings shall lie against the Government or nodal agency or Competent Authority or Appellate Authority or any employee of the Government, for anything which, in good faith, is done or intended to be done under this Act or any rules made thereunder.

(1) The provisions of this Act shall have overriding effect, notwithstanding anything inconsistent therewith contained in any other law, for the time being in force. (2) In particular and without prejudice to the generality of the foregoing provisions of this Act, such provisions shall have effect notwithstanding anything inconsistent therewith contained in the following enactments and the provisions of these enactments shall be read as amended in conformity with the provisions of this Act, namely:- 1. The Kerala Panchayat Raj Act, 1994 (13 of 1994) 2. The Kerala Municipality Act, 1994 (20 of 1994) 3. The Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960) 4. The Kerala Lift and Escalators Act, 2013 (18 of 2013) 5. Travancore - Cochin Public Health Act, 1955 (XVI of 1955) 6. Madras Public Health Act, 1939 (3 of 1939)

Subject to the provisions of section 10, nothing in this Act shall be construed as exempting any enterprise from the application of the provisions of any law for the time being in force, or any regulatory measures and standards prescribed thereunder, except to the extent expressly provided in this Act.

(1) The Appellate Authority under this Act shall be the State Board constituted under section 3 of the Kerala Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 2000), who shall exercise the powers of the Appellate Authority under this Act; (2) Any person aggrieved by the decision of the nodal agency may, within thirty days from the date of such decision, file an appeal before the Appellate Authority, in such manner as may be prescribed. (3) The Appellate Authority after receipt of appeal may call for additional details or documents as it may considered necessary and on production of such details or documents and after giving an opportunity of being heard to the aggrieved person and the nodal agency, the Appellate Authority shall dispose of such appeal within a period of thirty days from the date of filing of such appeal and the decision of the Appellate Authority on such appeal shall be final. (4) Notwithstanding anything contained in any other law for the time being in force, the Appellate Authority may, either suo-motu or on a reference, examine any order passed by the nodal agency and pass appropriate orders as it deems fit, and such orders shall be final.