The Puducherry Micro, Small and Medium Enterprises (Exemption from Approvals to Commence Business) Act, 2024

1. (1) This Act may be called “The Puducherry Micro, Small and Medium Enterprises (Exemption from Approvals to Commence Business) Act, 2024”.
2. (2) It shall extend to the whole of the Union territory of Puducherry.
3. (3) It shall come into force at once.

Definitions In this Act, unless the context otherwise requires,–

1. (a) “Acknowledgment Certificate” means, the acknowledgment Certificate issued under section 5;
2. (b) “Approval” means, any permission, no objection, clearance, approval, registration, licence, etc., required under any other Law prevailing in connection with the establishment or operation of an enterprise in the Union territory of Puducherry;
3. (c) “Competent Authority” means, Head of any Department or Agency of the Government or Local Authority, Statutory Body, Government owned Corporation, Municipality, Commune Panchayat, Planning Authorities, or any other Authority or Agency constituted or established by or under any other Law prevailing or under the administrative control of the Government of Puducherry which is entrusted with the powers or responsibilities to grant or issue approval for establishment or operation of an enterprise in the Union Territory;
4. (d) “Puducherry Industrial Guidance Bureau (PIGB)” means, the Puducherry Industrial Guidance Bureau as notified by the Government;
5. (e) “Enterprise” means, a Micro, Small or Medium Enterprise;
6. (f) “Government” means, the Administrator appointed by the President under Article 239 of the Constitution;
7. (g) “Micro, Small or Medium Enterprise” means, a Micro, Small or Medium Enterprises, as defined in the Micro, Small and Medium Enterprises Development Act, 2006;
8. (h) “Nodal Agency” means, the Nodal Agency referred to in section 3;
   • (i) “Prescribed” means, prescribed by the rules made under this Act;
9. (j) “UT” means, the Union territory of Puducherry;
10. (k) “Undertaking” means, a letter to be taken from an Enterprise in the prescribed format that the Enterprise shall ensure appropriate labour welfare measures, adequate fire safety and environmental measures as required by Law. Definitions

Subject to superintendence, direction and control of the Government, the Puducherry Industrial Guidance Bureau

1. (PIGB) shall be the Nodal Agency for the purposes of this Act. Nodal Agency

1. (1) Subject to the superintendence, direction and control of the Government, the powers and functions of the Nodal Agency shall be as follows:–
   • (a) To assist and facilitate establishment of Enterprises in the Union Territory; and
   • (b) To maintain the records of declaration of intent received and Acknowledgment Certificate issued under this Act.
2. (2) 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.

Filing of Declaration

1. (1) Any person who intends to start an Enterprise may furnish to the Nodal Agency, a declaration of intent to start an Enterprise in such form and in such manner as may be prescribed. Explanation.—Any person who has applied to the Competent Authority to obtain all or any of the approvals as referred to in clause
   • (b) of section 2 before the commencement of this Act may also opt to furnish declaration of intent to start an Enterprise under this sub-section.
2. (2) On receipt of a declaration of intent, the Nodal Agency shall, forthwith, issue an Acknowledgment Certificate, in the prescribed Form to the person who furnished the declaration under sub-section (1).

Effect of the Acknowledgment Certificate

1. (1) An Acknowledgment Certificate issued under section 5 shall for all purposes, have effect as if, it is an approval as referred to in clause
   • (b) of section 2, for a period of three years from the date of its issuance and before the expiry of the said period of three years, the Enterprise shall have to obtain required approval as referred to in clause
   • (b) of section 2. Provided that the Enterprise shall apply for necessary permission under the respective Laws within a period of three years from the date of issuance of Acknowledgment Certificate: Provided further, that such Acknowledgment Certificate shall not entitle a person to use a land in deviation to the land use specified in the master plan wherever such plan is in force.
2. (2) During the period of three years as 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
   • (b) of section 2: Provided that the Competent Authority shall be empowered to undertake an inspection during the said period of three years in cases where, the Enterprise has applied for necessary permission under the respective Laws within a period of three years from the date of issuance of Acknowledgment Certificate.

Exemption 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, as the case may be, any such Authority shall, subject to the provisions of such Central Act, exercise such powers to grant such exemption to an Enterprise established in the Union territory of Puducherry for at least a period of three years from the date of issue of the Acknowledgment Certificate issued under sub-section

1. (2) of section 5. Exemption

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

Act to over ride other Laws

1. (1) The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other Law, for the time being in force.
2. (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:–
   • (i) The Puducherry Town and Country Planning Act, 1969.
   • (ii) The Puducherry Building Bye-Laws and Zoning Regulations, 2012.
   • (iii) The Puducherry Ground Water (Control and Regulation) Act, 2002.
   • (iv) The Puducherry Municipalities Act, 1973.
   • (v) The Puducherry Village and Commune Panchayats Act, 1973.

Subject to the provisions of section 7, 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. (1) The Government may, after previous publication by notification in the Official Gazette, make rules to carry out the purposes of this Act.
2. (2) Every rule made or notification issued under this Act, shall as soon as may be after it is made be laid before the Legislative Assembly, Puducherry, while it is in session for a total period of fourteen days, which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session in which it is so laid, or the session immediately following, the Legislative Assembly makes any modification in the rule or notification or decide that any rule or notification should not be made or issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be, so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.
3. (3) Any rescission or modification so made by the Legislative Assembly of Puducherry shall be published in the Official Gazette and shall thereupon take effect.

1. (1) If, any difficulty arises, in giving effect to the provisions of this Act, the Government may, by order published in the Official Gazette make such provisions not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for removing the difficulty. Provided that no such order under this section shall be made after the expiry of a period of two years from the date of commencement of this Act.
2. (2) Every order made under sub-section
3. (1) of this section shall, as soon as it is made, be placed on the Table of the Legislative Assembly of Puducherry.