The KARNATAKA INNOVATION AUTHORITY ACT, 2020

Karnataka · state statute

Open in Lexace · Ask the AI about this act

KARNATAKA ACT NO. 07 OF 2020

THE KARNATAKA INNOVATION AUTHORITY ACT, 2020

Arrangement of Sections

Sections:

1. Short title and commencement
2. Definitions
3. Karnataka Innovation Authority
4. Composition of the Authority
5. Meetings of the Authority
6. Vacancies, etc., not to invalidate proceedings of the Authority
7. Powers and functions of the Authority
8. Sub-committees of the Authority
9. Permission to establishing a Regulatory Sandbox
10. Applications for Establishing a Regulatory Sandbox
11. Suo Moto Establishment of a Regulatory Sandbox
12. Terms and Conditions for participants in the Regulatory Sandbox
13. Regulatory Sandbox to be established by Notification
14. Participation in the Regulatory Sandbox
15. Modification of Regulatory Sandbox
16. Expiry or Withdrawal of the Regulatory Sandbox
17. Appeals
18. Establishment of Technical Secretariat
19. Budget of the Authority
20. Funds of the Authority
21. Accounts and audits
22. Annual Report
23. Confidentiality of Information
24. Protection of action taken in good faith
25. Penalties
26. Bar of Jurisdiction on Civil Courts
27. Power to removal of difficulties
28. Act to override other laws
29. Power to make rules
30. Power to make regulations
31. Transitory provisions
32. Repeal and Savings

STATEMENT OF OBJECTS AND REASONS
Act 04 of 2020.-The Government of Karnataka witnesses development of innovative
products and services using descriptive technologies which usually do not fall within the
parameters of established regulatory regimes. These innovators are subject to legal
hardship and this curbs innovation to happen, while amendment to the law to address
regulatory challenges thrown by these new products and services using emerging
technologies takes time, a legal frame work to enable innovation, needs to be established in
interim. Therefore, “Karnataka Innovation Authority” is to be established to enable setting
up of “Regulatory Sandboxes” wherein such innovators are allowed a small window of
exemption for a prescribed period to carry out innovation and the State also gets to observe
such innovations and time to respond with further legislation and amendments, if required.

The Karnataka State is one of the Global Innovation Hubs. Several Foreign Countries
are having Global Alliance with Karnataka. Niti Ayog of Government of India has ranked
Karnataka as the top most Innovative State in the country. Bengaluru Tech Summit,
flagship event of the State Government, on Information Technology, Biotechnology,
Electronics, Animation and Startups, is scheduled from 18th to 20th November 2019 at
Bengaluru Palace. Government has received confirmations of participation from 20 foreign
countries. The setting up of Karnataka Innovation Authority is proposed to be announced
by Hon'ble Chief Minister during the inauguration of Bengaluru Tech Summit 2019 on 18th
November, 2019, to signal to the world that Karnataka is way ahead of others in promoting
and encouraging innovation and entrepreneurship. Hence there is a great need to sustain
this position in view of the competition from other States.

Since, the matter was urgent and both the houses of the State Legislature were not in
session, the Karnataka Innovation Authority Ordinance, 2019 (Karnataka ordinance 2 of
2019) was promulgated to achieve the above object.

Hence this Bill replaces the said Ordinance.
Hence the Bill.
[L.A. Bill No. 02 of 2020, File No. Samvyashae 06 Shasana 2020]
[Entry 32 of List II of the Seventh Schedule to the Constitution of India.]
[Published in the Karnataka Gazette Extra-ordinary No. 149 in part-IV dated: 27.04.2020]

KARNATAKA ACT NO. 07 OF 2020

(First Published in the Karnataka Extra-ordinary on the 27th day of April, 2020)

THE KARNATAKA INNOVATION AUTHORITY ACT, 2020

(Received the assent of the Governor on the 24th day of April, 2020)

An Act to provide for establishment of an authority to promote and regulate
Innovative Technologies in the State of Karnataka.
Whereas it is expedient to establish an authority to promote and regulate innovative
technologies in the State of Karnataka and for the matters connected therewith or
incidental thereto.
Be it enacted by the Karnataka State Legislature in the seventy first year of the
Republic of India, as follows:-
CHAPTER-I
PRELIMINARY
1. Short title and commencement.-(1) This Act may be called the Karnataka
Innovation Authority Act, 2020.
(2)It shall be deemed to have been come into force on the 5th day of December 2019.
2. Definitions.- In this Act, unless the context otherwise requires,-
(a) “Authority” means the Karnataka Innovation Authority constituted under
section 3;
(b) “Government” means the Government of Karnataka;
(c) “Law” means any law in force, enacted by the Karnataka State Legislature and
includes rules or regulations made there under;
(d) “Participant” means any person who has been granted approval for participation
in conduct of Innovation and to offer goods or services to the public within a
Regulatory Sandbox established under this Act;
(e) “Regulatory Sandbox” means the permission to conduct innovations within the
time allotted with such exemptions or modifications from any law, along with
conditions as may be prescribed under this Act, under which any participant may
conduct innovations and offer goods or services to the public;
(f) “Sandbox Operator” means any private agency or instrumentality of the
Government, designated by the Authority to oversee and operate, a Regulatory
Sandbox under this Act; and
(g) “Technical Secretariat” means the Technical Secretariat of the Authority.
CHAPTER-II
Authority and its Employees
3. Karnataka Innovation Authority.-(1) As soon as may be, after the
commencement of this Act, there shall be constituted by the Government an authority for
the purpose of this Act, to be called the Karnataka Innovation Authority.
(2) The authority shall be a body corporate by the name aforesaid, having perpetual
succession and a common seal with power to acquire, hold and dispose of property, both
moveable and immovable, and enter into contract, and shall by the said name sue and be
sued.
(3)The Headquarters of the Authority shall be at Bengaluru.

4. Composition of the Authority - The Authority shall consist of the following
members namely:-
(1) The Chief Minister -Chairman;
(2) The Minister in charge of the Department of Information
Technology, Biotechnology and Science and Technology.

- Vice-chairman
(3) Not more than five Ex-officio members as the
Government may nominate in the manner as may be
prescribed.

- Member
(4) The Additional Chief Secretary /Principal Secretary/
Secretary to Government, Department of Information
Technology, Biotechnology and Science and Technology,

- Member
(5) The Director, Department of Information
Technology, Biotechnology and Science and Technology.

- Member-Secretary

5. Meetings of the Authority.-(1)The Authority shall meet at such times and places
and as per the procedure with regard to transaction of business at its meetings by the
regulations.
(2) The Authority may invite such other persons as it deems fit to attend a meeting in
order to obtain their views or expertise on any item on the agenda for the meeting.
(3) The Chairman, or, in absence of the Chairman or under the direction of the
Chairman, theVice-Chairman shall preside over the meeting.
(4) All issues which come up before any meeting of the Authority, including decisions
as to the exercise of its powers and functions under this Act, shall be decided by consensus
among the members of the Authority.
(5) Not less than one thirdof the members of the Authority shall constitute the
quorum for a meeting.
(6) The Member-Secretary shall exercise such powers and perform such duties as
may be prescribed or as may, from time to time, be delegated to him by the Chairman.
6. Vacancies, etc., not to invalidate proceedings of the Authority.-No act or
proceedings of the Authority shall be invalid merely by reason of,-
(i) any vacancy in the Authority; or
(ii) any irregularity in the procedure of the Authority not affecting the merits of
the decision.
7. Powers and functions of the Authority.-The Authority shall have following
powers and functions, namely:-
(i) Notwithstanding anything contained in any law in force, the Authority may,-
(a) exempt any participant from compliance with any law for the purpose of
innovation within the Jurisdiction specified therein; or
(b) modify any law insofar as it applies to any participant, as it deems fit and
permit for the purpose of establishing a Regulatory Sandbox, in accordance with the
provisions of this Act.
5

(ii) The Authority shall have the power to,-
(a) designate any agency or instrumentality of the state as a Sandbox Operator
for a specified Regulatory Sandbox; and
(b) direct any Sandbox Operator for the purpose of this Act and such direction
shall be deemed to be a direction of the Government for the purpose of any law;
(c) based on its experience, recommend for amendment, if any, necessary to any
Acts, Rules or Regulations in force in the State to facilitate the promotion of
innovations in the State. The Government may consider the recommendations and
bring suitable amendment wherever necessary.
(iii) The Authority may hold public consultations with relevant stakeholders prior to,
during, or after establishing a Regulatory Sandbox, in such manner as may be
prescribed.
(iv) The Authority shall also have such powers and perform such functions which as
may be prescribed.
8. Sub-committees of the Authority.-(1)The Authority may for any specific purpose
constitute one or more sub- committees consisting of the Vice-chairman as Chairman and
such other members not exceeding five on each sub-committees.
(2) The Sub-committees shall exercise such of the power and perform such duties of
the Authority which are delegated to it by the Authority.
(3) Each Sub-committee shall meet atleast once in a month and shall observe such
procedures in regard to the transaction of business at its meeting as may be provided by
regulations.

CHAPTER-III
PROCEDURE TO ESTABLISH AND PARTICIPATE
IN A REGULATORY SANDBOX
9. Permission to establishing a Regulatory Sandbox.- The Authority may grant
permission to operate a Regulatory Sandbox, in accordance with the procedure under this
Chapter when, in its opinion, it is necessary to do so for the promotion of any innovation.
10.Applications for Establishing a Regulatory Sandbox.-(1)Any person seeking
permission to establish a Regulatory Sandbox may make an application in such manner
along with such fee as may be prescribed and shall indicate the need for regulatory
sandbox and the proposed sandbox operator.
(2)The Authority shall seek the inputs and recommendations of the Sandbox
Operator proposed in such application, on the feasibility and desirability of the proposed
Regulatory Sandbox.
(3) The Authority shall, within 60 days from the date of any application under this
section, either reject such application or permit to establish a Regulatory Sandbox.
(4) Where the Authority is of the opinion that it is feasible and desirable to permit the
establishment of the proposed Regulatory Sandbox, it shall,-
(a) make an order in writing, indicating the need for such Regulatory Sandbox,
with specific reference to the need to provide exemptions or modifications of
any law for promoting the innovation in question subject to such conditions
as it deem fit and the potential for such innovation to provide wider benefits to
society, and;
(b) permit to establish a Regulatory Sandbox by notification under Section 13.
6

(5) Where the Authority is of the opinion that it is not feasible or desirable to set up
the proposed Regulatory Sandbox as sought by the applicant, or such innovation does not
require the relaxation or exemption from any law for its promotion, it shall reject the
application through an order in writing.
(6) No order under sub-section (4) or sub-section (5) shall be issued by the Authority
without giving the applicant an opportunity of being heard, and also holding a public
consultation with concerned stakeholders in such manner as may be prescribed.
11. Suo Moto Establishment of a Regulatory Sandbox.-(1)Notwithstanding
anything contained in section 9, where the Authority is of the view that it is necessary to do
so, it may, on its own motion, establish a Regulatory Sandbox and designate a Sandbox
Operator, in accordance with the procedure under section 13.
(2) A decision to establish a Regulatory Sandbox under sub-section (1) shall be taken
in accordance with the following procedure, namely:-
(a) A notice shall be issued to the general public with the details of the
Regulatory Sandbox proposed to be set up and the proposed Sandbox
Operator, inviting submissions for inputs within a period of [thirty days] from
the date of the notice.
Explanation: The notice shall be deemed to be issued to the public, if such
notice is placed on the website of the Authority and is published in an English
newspaper and a Kannada newspaper having the highest circulation in the
State.
(b) The Authority shall, after the expiry of thirty days from the date of issue of the
notice under clause (a), hold a public consultation, in such manner as may be
prescribed, seeking inputs from stakeholders on the feasibility and desirability
of setting up the Regulatory Sandbox.
(c) The Authority shall seek the inputs and recommendations of the proposed
Sandbox Operator on the feasibility and desirability of the proposed
Regulatory Sandbox.
(3) Where the Authority is of the opinion that it is feasible and desirable to establish
the proposed Regulatory Sandbox, it shall,-
(a) make an order in writing, indicating the need for such Regulatory Sandbox,
with specific reference to the need to provide exemptions or modifications of
any law for promoting the innovation in question subject to such conditions
as it deem fit and the potential for such innovation to provide wider benefits to
society, and;

(b) establish a Regulatory Sandbox by notification under Section 13.

(4) Where the Authority is of the opinion that it is not feasible or desirable to set up
the proposed Regulatory Sandbox, or that such innovation does not require the relaxation
or exemption from any law for its promotion, it shall reject the application through an order
in writing.

12. Terms and Conditions for participants in the Regulatory Sandbox.-(1)Every
participant in the Regulatory Sandbox shall follow such terms and conditions as may be
prescribed.
(2) Such conditions may provide for all or any of the following, namely:-
(a) Time period and geographical area within which an innovation may be
conducted and goods or services may be offered to the prescribed customers:
7

Provided that, the time period of a Regulatory Sandbox shall not be more
than one year, subject to any extension made under Section 15, however for
recorded reasons it may be further extended for not more than one year.
(b) The eligibility and number of customers to whom goods or services may be
offered;
(c) The consumer protection and risk mitigation safeguards to be followed by
participants, including, but not limited to dispute and grievance redressal
conditions, mandatory disclosures of risks to customers, requirements for
obtaining consumer consent and adequate compensation arrangements in
case of defaults;
(d) Capital requirements of the participants;
(e) Data security and confidentiality requirements;
(f) Reporting requirements of the participants to the Sandbox Operator; and
(g) Any other terms or conditions as the Authority may deem fit.

(3) The Sandbox Operator shall be responsible for overseeing the compliance of the
participants within the terms and conditions of the Regulatory Sandbox.
13. Regulatory Sandbox to be established by Notification.-(1)Where the Authority
establishes a Regulatory Sandbox in exercise of its powers under Section 10 and 11, it shall
do so by notification in the Official Gazette, and such Regulatory Sandbox shall come into
effect from the date of such notification.
(2) Any notification made under sub-section (1) shall specify the provisions of laws
which are exempted or modified, as well as the terms and conditions to be followed by
participants in the Regulatory Sandbox, period of operation of the Regulatory Sandbox and
shall specify the Sandbox Operator.
(3) Any notification made under sub-section (1) shall have effect despite anything
inconsistent in any other law in force or any instrument under any such law.
(4) No notification made by the Authority under sub-section (1) shall have
retrospective effect.
(5) Any notification made under sub-section (1) shall cease to have effect after the
expiry of the period permitted or withdrawal of the Regulatory Sandbox under section 16.
(6) Every notification issued under this section shall be laid before each house of the
state legislature.
14. Participation in the Regulatory Sandbox.-(1)A Sandbox Operator shall, within
thirty days from the date of notification of a Regulatory Sandbox under section 13, call for
applications from any person desiring to participate in the Regulatory Sandbox.
(2) No person shall be eligible to make any application under sub-section (1) unless,-
(a) he carries on business or has a registered office or branch office in Karnataka;
and
(b) the goods or service sought to be tested in the Regulatory Sandbox are
proposed to be deployed in or operated in a larger scale, from Karnataka.
(3) The application shall be in such form and in such manner as may be prescribed,
and shall indicate the manner in which the proposed participant fulfils the conditions laid
down by the Authority to participate in the regulatory sandbox, as well as the criteria laid
down under sub-section (5).
(4) The Sandbox Operator, shall, within a period of thirty days from the receipt of
any application under this section either reject an application, or approve it. In approving
8

or rejecting any application for participation in the Regulatory Sandbox, it shall ensure the
proposed participant meets the following criteria that,-
(a) the goods or services are provided within the scope of the Regulatory
Sandbox;
(b) there are regulatory barriers in the form of any laws which restrict or prohibit
the deployment of the goods or services;
(c) the goods or services offered by such person is ready for testing in the market
and the proposed participant has a well-developed testing plan for
implementing the goods or services within the Regulatory Sandbox;
(d) there is a genuine innovation, significantly different from available offerings in
the same market, which utilizes a new technology or utilizes existing
technology in a novel manner;
(e) the goods or services deliver an identifiable benefit to consumers within
Karnataka;
(f) the deployment of the goods or services is in the larger public interest,
including, inter alia, the ability of the goods or services to generate
employment in Karnataka;
(g) the goods or services does not expose consumers to significant levels of risks
of harms, injuries or losses;
(h) the proposed participant has the ability to, and the goods or services is
capable of, deployment at a larger scale after the expiry of the period of
testing under the Regulatory Sandbox; and
(i) the goods or services are designed to be deployed or operated from and within
the Karnataka under the existing Regulatory Sandbox.
(5) The Sandbox Operator may, for the purpose of assessing the applications made
under this section,-
(a) consult the Authority; or
(b) request for any information from the proposed participant.
(6) Any order of approval or rejection of any application under sub-section (4) shall
be accompanied by reasons in writing and shall be published on the website of the
Authority and the Sandbox Operator.
(7) The Sandbox Operator, may, before approving any application, upon consultation
with the proposed participant, recommend further terms or conditions for participation of
the applicant in the Regulatory Sandbox, to be notified by the Authority under section 15.
(8) A participant may begin testing the approved goods or services in the Regulatory
Sandbox as soon as the order of approval of their participation has been made under this
section.
(9) No material changes to the goods or services offered by a participant in a
Regulatory Sandbox shall be made without obtaining the prior approval of the Sandbox
Operator in writing.
Note: For the purpose of this sub-section, material changes are any changes which
affect the criteria for evaluation of the goods or services under sub-section (4).
(10) The Sandbox Operator shall, upon consultation with each participant,
recommend the transition strategy to be followed by the participant to ensure the
protection of consumers and the compliance with laws in the event of the expiry or
withdrawal of the Regulatory Sandbox under section 16.
9

(11) Such information about the participants in the Regulatory Sandbox shall be
disclosed on the website of the Authority and the Sandbox Operator, as may be prescribed.
15. Modification of Regulatory Sandbox.-(1) The Authority may, by notification in
the Official Gazette, upon its own motion, or upon the recommendation of the Sandbox
Operator, modify any of the exemptions or modifications of law provided in the notification
made under section 13, in so far as it applies to any participant.
(2) The Authority may, upon the recommendation of the Sandbox Operator, by
notification in the Official Gazette, modify any of the terms and conditions imposed under
section 12, insofar as it applies to any participant.
(3)Authority may on application by the Sandbox operator, may modify the terms and
conditions of Sandbox permission to such extent and in such manner as it deems fit.
(4) Every notification issued under this section shall be laid before each house of the
State Legislature.
(5) Any modifications, made under sub-sections (1) and (2), shall not affect the
validity of anything previously done by any applicant or participant under this Act.
16. Expiry or Withdrawal of the Regulatory Sandbox.-(1) The Regulatory Sandbox
shall be discontinued upon the expiry of the time period prescribed under section 12,
subject to any modification of the time period made under section 15.
(2) The Sandbox Operator may revoke the approval of any participant in the
Regulatory Sandbox if such participant,-
(a) expresses his desire to discontinue his participation in the Regulatory
Sandbox, by sending a notice in writing to the Sandbox Operator, with
reasons for the same;
(b) fails to comply with the conditions prescribed by the Authority or the Sandbox
Operator;
(c) has submitted false, misleading or inaccurate information, or has concealed
or failed to disclose material facts;
(d) has, in the course of business, contravened any other provisions of law in
force which has not been expressly exempted or modified by the Authority;
and
(e) carries on its business in a manner detrimental to its consumers or the public
at large; or offers goods or services with a technical fault or vulnerability
which regularly causes failure of the goods or service or leads to high
incidences of fraud.
(3) Any order of revocation made under sub-section (2) shall be a reasoned order
made in writing and shall be binding.
(4) Every participant in the Regulatory Sandbox shall be liable to comply with all
applicable laws after the discontinuation of the Regulatory Sandbox.
(5) No order of revocation against a participant shall be issued by the Sandbox
Operator without giving the participant an opportunity of being heard.

17. Appeals.-(1)Any person aggrieved by the order of the sandbox operator may
appeal to the authority within 30 days from the date of such order.
(2) The authority may consider the appeal and dispose it after giving an opportunity
of being heard to the applicant and may make suitable orders in this regard and order of
the authority shall be final.

CHAPTER-IV
MISCELLANEOUS
18. Establishment of Technical Secretariat.-(1) The Authority shall be assisted by
a Technical Secretariat.
(2) The Technical Secretariat shall be set up by the State Government to provide
logistical, technical and research support for the implementation of the provisions of this
Act, and to oversee the Sandbox Operators and the Sandbox Participants.
(3) The Technical Secretariat shall perform such functions as may be prescribed.
(4) The Technical Secretariat shall be headed by the Member-Secretary of the
Authority and staffed by such persons as may be enlisted and their method of recruitment,
minimum qualification and conditions of service shall be such as may be prescribed.
(5) The salary and allowances of said staff shall be defrayed out of the fund of the
Authority.
19. Budget of the Authority.-(1) The Authority shall prepare every year, before such
date and in such form as may be prescribed, a budget estimate of its income & expenditure
for the financial year to commence on the first day of April and shall forward it to the
Government for sanction. The authority may also prepare supplementary budget estimates,
during the course of any financial year, if necessary.
(2) The Government shall approve the budget estimates and supplementary budget
estimates with or without modification.
(3) In cases of extreme urgency, the Members Secretary shall be competent to incur
expenditure not exceeding 5 lakhs of rupees in a financial year, notwithstanding the fact
that such expenditure has not been included in the annual or supplementary budget
estimates approved by the Government under sub-section(2).
(4) The Member Secretary shall also have power to re-appropriate funds from one
unit of expenditure to another unit, subject to a maximum of rupees one lakh at a time.
20. Funds of the Authority.-(1)There shall be a fund called as the Karnataka
Innovation Authority fund.
(2) There shall be credited to the said fund,-
(a) All grants, subventions, donations and gifts made by the Central Government,
State Government, any local authority or any body, whether incorporated or
not or any person;
(b) The amount borrowed by the authority; and
(c) All other sums received by or on behalf of the Authority from any sources
whatsoever.
(3) Except as otherwise directed by the Government all money credited to the fund
shall be invested in any Nationalized bank or in the State Government treasury.
(4) The administrative expenses of the Authority including the salaries, allowances
and pension if any, payable to the officers and employees of the Authority shall be defrayed
out of the fund of the Authority.
21. Accounts and audits.-(1)The Member Secretary or an officer not below the rank
of Deputy Secretary to Government designated by him shall cause maintenance of such
books of accounts and other registers as may be prescribed and shall prepare in the
prescribed manner an annual statement of accounts.
(2) The financial year of the authority shall commence on 1st April of each calendar
year and shall end on 31st March of the succeeding calendar year.
11

(3) The accounts of the Authority shall be audited annually by the Controller, State
Audit and Accounts Department. The Authority or the Government may order concurrent
and special audits also.
(4) The Auditor shall, for the purposes of the audit, have access to all the accounts
and other records of the Authority.
(5) As soon as may be after the receipt of the annual statement of accounts and the
report of the auditor, the Authority shall consider it in its meeting and send a copy of the
annual statement of accounts together with a copy of the report of the auditor to the
Government to lay it before both Houses of the State Legislature, along with its explanation
on the comments made by the auditor, if any, and a statement of action taken by the
Authority to remedy the irregularities or loopholes, if any, pointed out by the auditor.
22. Annual Report.-(1) The Authority shall, within three months from the end of
every calendar year, submit its annual report in such Form as may be prescribed to the
Government and same shall be published on the website of the Authority.
(2) The Government shall cause to be laid the Annual Report with compliance before
the each house of the State Legislature.
23. Confidentiality of Information.- Notwithstanding anything contained in this
Act, the Authority, or the Sandbox Operator, as the case may be, shall maintain the
confidentiality of such information disclosed by the Applicant or the Participant, including
commercial confidence, trade secrets or intellectual property, the disclosure of which would
harm the competitive position of any applicant or participant in the Regulatory Sandbox.
24. Protection of action taken in good faith.-No suit, prosecution or other legal
proceeding shall lie against any person for anything which is in good faith done or
purported to be done under this Act.
25. Penalties.-(1) Any Sandbox operator or any participant who violates any of the
conditions laid down by the Authority or the Sandbox operator shall in addition to
revocation of permission to operate or participate be liable for a fine which may extend to
rupees five lakhs or such amount to the extent of which a damage is caused to any public
in operating or participating in the regulatory sandbox. The Authority shall after summary
enquiry and after giving an opportunity to represent, impose fine on defaulting Sandbox
operator or participant and make good the loss incurred by the concerned public the
damage so caused.
(2) Any person aggrieved by the order of the Authority under sub-section(1) may
appeal to the concerned district judge having jurisdiction.
26. Bar of Jurisdiction on Civil Courts.- No Civil Court below the court of District
Judge shall have jurisdiction to settle, decide or deal with any question or to determine any
matter which is by or under this Act required to be settled, decided or dealt with or to be
determined under the provisions of section 17 and 25.
27. Power to removal of difficulties.-(1) If any difficulty arises in giving effect to the
provisions of this Act, the Government may by notification, make such provisions not
inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for
removing the difficulty:
Provided that, no such notification shall be issued after the expiry of two years from
the date of commencement of this Act.
(2) Every order issued under Sub-section (1) shall be laid before each house of the
State Legislature.
28. Act to override other laws.- The provisions of this Act and the orders issued or
made thereunder shall have effect notwithstanding anything to the contrary contained in
any other law for the time being in force.
12

29. Power to make rules.-(1) The Government may by notification, after previous
publication, make rules to carry out the purposes of this Act.

(2) Every rules or notifications made under this Act shall be laid as soon as may be
after it is made, before each house of the State Legislature while it is in session, for a total
period of 30 days which may be comprised in one session or in two or more successive
sessions and if before the expiry of the session immediately following the session or the
successive sessions aforesaid, both houses agree in making any modification in the rules or
notification or both houses agree that the rule or notification should not be made, the rule
or notification shall, from the date on which the modification or annulment is notified 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 rules or notification.
30. Power to make regulations.-The Authority may subject to the provisions of this
Act and the rules made under section 29 and with the previous sanction of the
Government, by notification make regulations to carry out the purposes of this Act.
31. Transitory provisions.- Any rule, notification or order made or issued under the
Karnataka Innovation Authority Ordinance, 2019 (Karnataka Ordinance No. 2 of 2019) or
otherwise providing for or relating to any of the matters for the furtherance of which this
Act is enacted, before the commencement of this Act and in force on the date of
commencement of this Act, to the extent they are not inconsistent with the provisions of
this Act, shall continue to be in force and effective as if they are made or issued under the
corresponding provisions of this Act unless and until superseded by anything done or any
action taken or any rule, notification or order, made under this Act.
32. Repeal and Savings.- (1) The Karnataka Innovation Authority Ordinance,
2019 (Karnataka Ordinance No. 2 of 2019) is hereby repealed.
(2) Notwithstanding such repeal anything done or any action taken under this
Ordinance shall be deemed to have been done or taken under this Act.

The above translation of ಕ῿ಾῇಟಕ ῿ಾ⁎ನῡΏಾ ಾῢ⁃΅ಾರ ಅ⁃⁄ಯಮ, 2020 (2020ರ ಕ῿ಾῇಟಕ
ಅඌඛಯಮ ๸ಒ౲: 07) be published in the official Gazette under clause (3) of Article 348
of the Constitution of India.

VAJUBHAI VALA
GOVERNOR OF KARNATAKA

By Order and in the name of
the Governor of Karnataka,

(K. DWARAKANATH BABU)
Secretary to Government
Department of Parliamentary Affairs
and Legislation.

‹ Prev All Karnataka acts Next ›