The Gujarat Micro, small and Medium Enterprises (Facilitation of Establishment and operation) Act, 2019.

Extra No.27 c{il{g qc{t%q,il €,? lt. t,oool_
@be Guiurnt @ffiIrnr ent Gutette
EXTRAORDIIVARY
PUBLISHED BY AUTHORITY
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PART IV
Acts of Gujarat Legisrature and ordinances promurgated and Regurations
made by the Governor.
The following Act o.f the Gujarat Lrgislature, having been assented to bythe Governor on the r6th December, zo-tq i, rr"*uy p-"irished for generalinformation.
iffi'ffi,:"Jl;.ff 
'
GUJARAT ACT NO. 26 OF 2019.
(First published, after having received the assent of the Governor, inthe "Gujarat Government Gazette'i on the tz* o"".-u"r, z0rg).
AN ACT
to provide for exemption from certain approvals and inspections for
establishment and operation of the micro, small and medium enterprises in the
State of Gujarat and matters connected therewith or incidental thereto.
It is hereby enacted in the Seventieth Year of the Republic of India as
follows:-
1. (l) This Act may be called the Gujarat Micro, small and
Medium Enterprises (Facilitation of Establishment and operation) Act,
Short title,
extent and
commencement.2019"
IY-Ex-27 27-1
27-2 GUJARAT GOVERNMENT GAZETTE , EX. 17-12.2019 I PART IV
(2) It extends to the whole of the State of Gujarat.
(3) It shall be deemed to have come into force on the 24ft october,
20t9"
Definitions' 2- In this Act, unless the context otherwise requires:-
(a) 'Acknowledgement Certificate,, means the
acknowledgement certificate issued under section 5;
(b) "approval" means any permissioq no-objectio4 clearance,
consent, approval, registration, license and the like, required
under any State Law in connection with the establishment or
operation of an enterprise in the State of Gujarat;
(c) "competent Authority,, means any department or agency of the
Government or local authority, statutory body, State owned
corporation, panchayati Raj Institution, Municipality, Urban
Development Authorities, urban Improvement Trusts or any
other authority or agency constituted or established by or under
any State Law or under administrative control of the
Government, which is entrusted with the powers or
responsibilities to grant or issue approval for establishment or
operation of an enterprise in the State;
(d) "District Level Facilitation committee (DLFC),,means the
District Level Facilitation committee constituted under section
(e)
(D
(e)
5 of the Gujarat Single window Clearances Act,2017;
"enterprise" means a micro, small or medium enterprise;
"Government" means the Government of Gujarat;
"micro, small or medium enterprise,, means the Micro, Small or
Medium Enterprises, as {efined in the Micro, Small and
Medium Enterprises Development Act, 2006;
(h) "nodal agency" means the nodal agency referred to in
section 3;
Guj. 29 of
2017.
27 of2006.
PART IV ] GUJARAT GOVERNMEMT GAZETTE, EX. 17.12-2OIg 27-3
"prescribed" means prescribed by rules made under this Act:
"State" means the State of Gujarat;
"Single Window Facilitation Committee (SWFC),, means the
Single window Facilitation committee constituted under section
6 of the Gujarat single window clearances Act,2017;
"undertaking" means a letter to be taken from enterprise under a
prescribed format to incrude that the enterprise shalr ensure
appropriate labour werfare measures, adequate fire safety and
environmental measures as required by the law.
(i)
(')
(k)
Guj.29 of
2017.
(l)
3' (l) subject to superintendence, direction and control of the
Government, the Investor Facilitation Agency (IFA) constituted under
section 8 of the Gujarat Single window clearances Act, 2lr|shall be the
State level Nodal Agency for the purposes of this Act.
(2) subject to superintendence, direction and control of the Government and
the District Level Facilitation commiffee, the District Industries centre (DIC)
shall be the District level Nodal Agency for the purposes of this Act.
4- (1) Subject to the superintendence, direction and control of the
Government, the powers and functions of the nodal agencies srrall be as
follows:-
(a) to assist and facilitate establishment of enterprises in the
State: and
(b) to maintain the records of declaration of intent received and
Acknowledgement certificate issued under this Act.
(2) The Government may assign such other powers and functions to the nodal
agencies as it may deem fit for glving effect to the provisions ofthis Act.
Nodal
Agency.
Guj.29 of
2017.
Powers
and
functions
of nodal
agencies.
27-4 GUJARAT GOVERNMENT GAZETTE, EX. I7-12-2OI| I PART IV
Filing of 5' (1) Any person who intends to start an enterprise may fumish to theDeclaration' State level 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 crause
(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) on receipt of a declaration of intent, the state level nodal agency shall,
forthwith, issue an Acknowledgment certificate, in the prescribed form to the
person who fumished the declaration under sub_section (l).
6' (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 after
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 within six months
from the date of such expiry:
Provided that the enterprise may apply for necessary permission under
the respective laws within a period of three years from the date of issuance of
acknowledgment certifi cate :
Provided further that such Acknowledgement 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:
Provided also that the Acknowledgement Certificate shall not entitle a
person to use the land falling in restricted category as specified in clause (b) of
section 658 of the Gujarat Land Revenue Code, 1g79:
Provided also that any agricultural land on which a person
start an enterprise shall be deemed to be a non-agricultural land
provisions of section 65B of the Gujarat Land Revenue code. rg79:
Bom. V of
1879.
wishes to
under the
Bom. V of
t879.
Effect of the
Acknowledgment
Certificate.
PART IV ] GUJARAT GOVERNMENIT GAZETTE, EX. I7-12-2OI( 27-5
Provided however that the relaxation shall
enterprise from the provisions of_
(i) section 73AAof the Gujarat Land Revenue Code, lg79;
(ii) sections 43 and 6344 of the Gujarat Tenancy and Agriculturar
Lands Act,l94g;
(iii) sections 57 and g9A of the Gujarat Tenancy and Agricultural
Lands (Vidarbha Region and Kutch Area) Act, l95g;
(iv) section 55 of the saurashtra Gharkhed, Tenancy settrement and
Agricultural Lands Ordinance, 1949.
(2) During the period of three years as specified in sub-section (r), nocompetent authority shall undertake any inspection for the pu{pose of or in
connection with, any approval as defined in clause (b) of section 2:
Provided that the competent authority shail 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.
7" where the Government or any authority under it is empowered to
exempt any enterprises 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 sha[, subject to the provisions of such central Act, exercise
such powers to grant such exemption to an enterprise established in the state
for at least a period of three years from the date of issue of the
acknowledgement certificate issued turder sub-section (2) of section 5.
8' No suit prosecution or other legal proceedings shall lie against the
Government or Nodal Agency or competent Authority or any emproyee of the
Govemment, 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.
not be given to the
Bom. V
of 1879.
Bom. LXVII
of 1948.
Bom. XCIX
of 1958.
Sau. Ord. XLI
of 1949.
Exemption.
Frotection
of action
taken in
good faith.
GUJARAT GOVERNMENT GAZETTE, EX. I7-T2-2OI| I PART rv
"*.1j: 
g' (l) The provisions of this Act shal have effect, norwithstanding
lj}..: lrtnins 
inconsistent therewith contained in any other state raw, for thetime being in force.
(2) rn particular and without prejudice to the generality of the foregoingprovisions of this Act, such provisions shall have effect notwithstanding
anything inconsistent therewith contained in the following enactments and theprovisions of these enactments shall be read as amended in conformity with
Bom. v of 1829. the provisions of this Act, namelv:_
(a) the Gujarat Land Revenue Code, lg79;
(b) the Gujarat Tenancy and Agricultural Lands Act, r94g;
(c) the Gujarat provinciar Municipal corporations Act, 1949;
(d) the Saurashtra Gharkhed, Tenancy Settlement and
Agricultural Lands Ordinance 1949;
(e) the Gujarat Tenancy and Agricultural Lands (vidarbha
Region and Kutch Area) Act, l95g;
(0 the Gujarat Municipalities Act, 1963;
(g) the Gujarat Town planning and Urban Development Act.
1976;
(h) the Gujarat panchayats Act, 1993.
savings. l0' 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.
27-6
Saur. Ord. XLI
of 1949.
B,om. XCIX
ort 1958.
Guj.34 oft964.
Presiident's
Act27 of1976.
Guj. 18 of 1993.
Bom. LXVI
of 1948.
Bom. LIX
of 1949.
Power
to make
rules.
11' (1) The state Government may, by notification in the officiar
Gazette, make rules for carrying out the pu{poses of this Act.
Q) All rules made under this Act shall be subject to the condition of
previous publication.
PART IV J GUJARAT GOVERNMEMT GAZETTE, EX. I7-T2-2OI| 27-7
(3) All rules made under this Act shall be laid for not less than thirty daysbefore the State Legislature as soon as may be after they are made and shall besubject to rescission by the state Legislature or to such modifications as theState Legislature may make during the session in which they are so laid orsession immediately following.
(a) Any rescission or modification so made by the State Legislature shall bepubrished in the officiar Gazette,and shall thereupon take effect.
12" (l) If any difficulty arises in giving effect to the provisions of thisAct' the Govern order published in the ofiicial Gazette,-;; :""J""J".such provisions ent with the provisions of this Act, as may difficutties.
appear to it to for removing the diffrculty:
Provided that no such order under this section shalr be made afterthe expiry of a period of two years from the commencement of this Act.
(2) Every order made under sub-section (l) shall be laid, as soon as maybe, after it is made before the State Legislature.
13" (1) The Gujarat Micro, Small and Medium Enterprises (Facilitation Repeat andGuj. Orrd. I
of 
"t019- 
of Establishment and operation) ordinan ce,20L9 is hereby repealed. savings.
@ Notwithstanding such repeal, anything done or any action taken under
the said ordinance, shall be deemed to have been done or taken under this Act.
GovERNIIGNT Crvrner pnrss, GenoHrvncen.

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