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The KARNATAKA SPECIAL INVESTMENT REGION ACT, 2022

Karnataka · state statute
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KARNATAKA ACT NO 05 OF 2023 
 
THE KARNATAKA SPECIAL INVESTMENT REGION ACT, 2022 
 
Arrangement of Section 
Sections: 
 
1. Short title and commencement 
2. Definitions 
3. Declaration of Special Investment Region 
4. Special Investment Region to be out of jurisdiction of the local 
authority 
5. Establishment of the Apex Authority 
6. Powers and functions of Apex Authority 
7. Appointment of Executive Committee and other committees 
8. Constitution of Regional development authority 
9. Headquarters of Regional development authority 
10. Appointment of members in Regional development authority 
11. Term of office and conditions of service of members 
12. Meeting of the Regional development authority and transaction of 
business 
13. Constitution of committees 
14. Acts and proceedings of the Regional development authority and 
committees presumed to be valid 
15. Powers and functions of the Regional Development Authority 
16. No erection, etc. by any person or entity without permission of 
Regional development authority 
17. Application of the Karnataka Town and Country Planning Act 1961 
18. Setting up of units and amenities in the Special Investment Region  
19. Units and amenities of the Special Economic Zone in the Special 
Investment Region to be governed under the relevant Act 
20. Project development agency 
21. Transfer of possession of assets to the Government company for 
infrastructure development 
22. Award of projects to a developer 
23. Integrated development of a large area in the Special Investment 
Region 
24. Allocation of premises in the Special Investment Region 
25. Resumption of the possession of premises including the residential 
tenements on breach of terms or conditions of lease or holding 
without authority 
26. Redressal of grievances and settlement of disputes 
27. Dispute Settlement Mechanism 
 
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28. Control, regulation and development 
29. Special Investment Region to be an Industrial Township 
30. Funds of the Regional development authority 
31. Accounts and audit 
32. Annual report 
33. Act to override other State laws 
34. Land deemed to be for public purpose 
35. Members, officers and employees to be public servants 
36. Protection of action taken in good faith 
37. Power to make rules 
38. Power of Government to give directions 
39. Power to make regulations 
40. Power of State Government to remove difficulties 
 
 
STATEMENT OF OBJECTS AND REASONS 
Act 05 of 2023:- It is considered necessary to establish, operate, regulate 
and manage the large or Mega or Super Mega size investment regions and 
Industrial Areas or clusters in the State of Karnataka and to retain 
Karnataka’s position as a global manufacturing hub, specially enabling 
economic activit y, supported by world class infrastructure, premium civic 
amenities, centers of excellence and proactive policy framework and for 
setting up an organizational structure with that purpose and for the matters 
connected therewith or incidental thereto. 
 Hence, the Bill 
[L.A. Bill No.32 of 2022, File No. SAMVYASHAE  30 SHASANA 2022]  
[Entry 24 of List II and 36, 37 of list III of the Seventh Schedule to the Constitution 
of India]   
[Published in Karna taka Gazette Extra -ordinary No.18  in part -IVA 
dated:12.01.2023] 
  
 
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KARNATAKA ACT NO 05 OF 2023 
(First published in the Karnataka Gazette Extra-ordinary on the 12th day of January, 2023) 
 
THE KARNATAKA SPECIAL INVESTMENT REGION ACT, 2022 
 (Received the assent of the Governor on the 11th day of January, 2023) 
 
An Act to establish, operate, regulate and manage the large or Mega or 
Super Mega size Investment Regions and Industrial Areas or clusters in the 
State of Karnataka and to retain position of Karnataka as a global 
manufacturing hub, specially enabling econo mic activity, supported by  
world class infrastructure, premium civic amenities, centres of excellence 
and proactive policy framework and for setting up an organizational 
structure with that purpose and for the matters connected therewith or 
incidental thereto, for the purposes hereinafter appearing; 
 Be it enacted by the Karnataka State Legislature in the seventy third 
year of the Republic of India, as follows:- 
 
CHAPTER - I 
PRELIMINARY 
1. Short title and commencement. - (1) This Act may be called the 
Karnataka Special Investment Region Act, 2022.   
(2)  It shall come into force on such date as the State Government 
may, by 1[notification]1, in the official Gazette appoint.  
1. This Act has come into force w.e.f. 03.03.2023 by Notification No: CI/66/SPI/2021 Dates: 03.03.2023.(See the 
text notification at the end of the Act). 
2. Definitions.- In this Act, unless the context otherwise requires,-  
(a) “Amenities” means basic and essential services including but not 
limited to road, bridge, by -pass and underpas s, drainage, water supply, 
collection-treatment-discharge and disposal of industrial, institutional and 
township waste, health, education, transport, disaster management, parks, 
green areas, gas pipeline, entertainment, hospitality, recreation, industrial 
parks, townships, institutional areas and other facilities of conveniences as 
the Apex Authority may specify; 
(b) “Apex Authority” means the Special Investment Region Apex 
Authority constituted under section 5;    
(c) “Award of project” means awarding, allocating,  assigning, 
transferring and leasing a project or work for execution, operation, 
management or maintenance under this Act;   
(d) “Concession agreement” shall have the same meaning as assigned 
to it in the Public Private Partnership Projects;   
(e) “Developer” mean s a person or entity with whom a concession 
agreement is entered into or a project has been awarded and such other 
agreement is entered into for furtherance of the objectives of this Act;   
  
(f) “Economic activity” means the activity and service including but  
not limited to industrial, manufacturing, commercial, financial, processing, 
 
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packaging, logistics, transport, tourism, hospitality, health, housing, 
entertainment, research and development, education and training, 
information and communication, management  and consultancy, corporate 
offices and the activities and services connected therewith or incidental 
thereto and other economic activities as the Apex Authority may specify;  
(g) “Government” means the Government of Karnataka;  
(h) “Government agency” means a Cor poration or a body owned or 
controlled by the State Government or an authority established by or under 
any law of the State and includes a local authority and a Government 
Company formed under the Companies Act, 2013 (Central Act 18 of 2013);   
(i) “Industrial Area” shall have the same meaning as assigned to it in 
the Karnataka Industrial Areas Development Act, 1966 (Karnataka Act 18 of 
1966) and having an area of not less than five sq. kilometers;  
(j) “Infrastructure project” means any project or facility, utilit y, 
amenity or service which is required for desirable, smooth, productive and 
efficient functioning of the Special Investment Region and includes such 
project within the Special Investment Region, connecting the Special 
Investment Region or required for it; 
(k) “Investment Region” means an area of more than ten square 
kilometres, which need not be contiguous and having or proposed for 
predominantly economic activity; 
(l) “Local Authority” means and includes a village panchayat declared 
under clause 21 of section 2 of  the Karnataka Gram swaraj and Panchayat 
Raj Act 1993 (Karnataka Act 14 of 1993),  a municipal council or a 
municipal corporation and areas under Bruhat Bengaluru Mahanagara 
Palike, a Planning Authority or an Urban Development Authority excluding 
industrial area or the Investment Region;   
(m) “Occupier” means a person who is in the legal possession of a site 
or building in the Special Investment Region and includes his successor, 
transferee and assignee;   
(n) “Person” means and includes an individual, an entity, a company, 
firm, organization, association, society, establishment, institution including 
Government agency, carrying on business or economic activity in the Special 
Investment Region or entrusted with any work  under the provisions of this 
Act;   
(o) “Prescribed” means prescribed by rules made by the State 
Government under section 37 of this Act; 
(p) “Regional development authority” means the Regional development 
authority constituted under section 8;   
(q) “Regulations” means the regulations of the Apex Authority made 
under section 39; 
(r) “Special Investment Region”  means an Investment Region or an 
industrial area declared under section 3; 
(s) “Unit” means a unit set up by a person for the purpose of carrying 
on any economic activ ity in Special Investment Region and includes an 
existing unit whether established before or after the commencement of this 
Act; and 
 
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(t) “User charges”  mean the charges levied by the Regional 
development authority, a developer or any other entity authorized fo r that 
purpose under this Act. 
 
CHAPTER – II 
DECLARATION OF SPECIAL INVESTMENT REGION 
 3. Declaration of Special Investment Region. - (1) The State 
Government may, by notification in the official Gazette, declare an existing 
or proposed investment region or  industrial area to be a Special Investment 
Region and determine the geographical area of the Special Investment 
Region for carrying out the purposes of this Act.   
(2) An investment region or industrial area declared as a Special 
Investment Region may be known with the name of its location or its 
predominant economic activity. 
(3) Every notification issued under sub -section (1) shall be laid before 
the State Legislature, as soon as may be possible, after it is issued.   
 
 4. Special Investment  Region to be out of jurisdiction of the 
local authority.- (1) A Special Investment Region declared under this Act,  
shall cease to be under the jurisdiction of a local authority to the extent it  
relates to the provisions made under this Act. 
(2) While prepar ing the development plan for the Special Investment 
Region, the Regional development authority shall take into account the 
development plan if any, prepared by the respective local authority for the 
concerned village site area (gramtana) of the village pan chayat, municipal 
area, municipal corporation, Bruhat Bengaluru Mahanagara Palike area, 
Planning Authority, Metropolitan Planning Committee or BMRDA  and the 
adjacent area thereof: 
Provided that, the Government may declare the adjacent area of a 
village panchayat, municipality, municipal corporation or Bruhat Bengaluru 
Mahanagara Palike, from time to time. 
 
CHAPTER - III 
ESTABLISHMENT OF THE APEX AUTHORITY 
5. Establishment of the Apex Authority. - The Karnataka Industrial 
Area Development Board (KIADB), established under section 5 of the 
Karnataka Industrial Areas Development Act, 1966 (Karnataka Act 18 of 
1966), shall be the Special Investment Region Apex Authority, hereinafter 
called Apex Authority, for the purposes of this Act. 
 
 
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6. Powers and functions of Apex Authority.- (1) The Apex Authority 
shall exercise all powers conferred on it and discharge all functions assigned 
to it for any Special Investment Region declared under the provisions of this 
Act.   
(2) Without prejudice to the generality of foregoing  powers, the powers 
and functions of the Apex Authority shall also include the following, 
namely:-   
(i) to make regulations to give effect to the provisions of this Act;   
(ii) to make regulations for development, operation, regulation and 
management of the Special Investment Regions within the State and 
for development of infrastructure within the Special Investment 
Region;   
(iii) to approve, with or without modification, the plan fo r use of land in 
the Special Investment Region or its peripheral area on receipt of the 
proposal from Regional development authority;   
(iv) to approve, with or without modification, the development plan, the 
town planning scheme and the general development reg ulations 
prepared and proposed by the Regional development authority;   
(v) subject to delegation to Regional Development Authority or any 
Government agency, to grant permission and approval for any 
economic activity, amenity or infrastructure project to be es tablished 
in the Special Investment Region, including integrated development 
in a large area in the Special Investment Region; 
(vi) to  approve  with  or  without  modification,  the  agreements  to  be 
entered  into  by  the  Regional  development  authority  or  by  a 
Government Agency, or the developer of infrastructure projects; 
(vii) to ascertain and fix the rates and approve, with or without 
modification, the user charges proposed by the Regional 
development authority, a Government agency or a developer of 
infrastructure project;  
(viii) to propose, with recommendations, to the State Government for 
making such provisions with respect to proper development, 
operation, regulation and management of the Special Investment 
Region;   
(ix) to monitor the development of the Special Investment Region and 
issue necessary instructions to the agencies involved; and  
(x) to exercise such other powers and perform such other functions that 
may be required for development, operation, regulation and 
management of the Special Investment Region and  as entrusted to it 
by the State Government. 
   
7. Appointment of Executive Committee and other committees.-  
(1) The Apex Authority may appoint an Executive Committee and such 
other committees and sub -committees consisting of such number of 
members for effici ent performance and exercise of its powers conferred 
under this Act, as may be specified by regulations. 
 
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(2) The Apex Authority may, instead of appointing an Executive 
Committee under sub -section (1), designate the executive of the Karnataka 
Industrial Area De velopment Board to be the Executive Committee of the 
Apex Authority for the purposes of this Act: 
Provided that, the core functions of the Apex Authority such as 
approval and modification of development plan, town planning scheme and 
the general development regulations shall not be delegated to any committee 
of the Apex Authority.   
CHAPTER - IV 
CONSTITUTION OF REGIONAL DEVELOPMENT AUTHORITY 
 
8.  Constitution of Regional development authority. - (1) The State 
Government may, by notification, constitute a Regional development 
authority for the Special Investment Region area declared under section 3. 
(2) Every Regional development authority constituted under sub - 
section (1), shall be a body corporate and shall have perpetual succession 
and a common seal, with power to acquire, hold and dispose off movable 
and immovable property and to contract, and by th e said name, to sue and 
be sued. 
(3) Notwithstanding anything contained in section 10 and 11, the 
State Government may, instead of constituting a Regional development 
authority for a Special Investment Region or an industrial area, designate a 
Government agency or a Government company as the Regional development 
authority and empower it to exercise all the powers and perform all the 
functions as specified under section 15.  
 
9. Headquarters of Regional development authority. - The 
headquarters of the Regional de velopment authority shall be at such place 
as the State Government may, by notification, specify.   
 
10. Appointment of members in Regional development authority.- 
The Regional development authority shall consist of the following members, 
namely:-   
(i) the Chairman - to be appointed by the State Government; 
(ii) the Chief Executive Officer - to be appointed by the State 
Government;   
(iii) the General Manager - to be appointed by the State Government;   
(iv) two officials of the State Government - to be nominated by the Sta te 
Government as ex-officio member and one of them shall be a Group 
A Officer of the Town Planning, nominated by the Director, Town and 
Country Planning Department;    
(v) an officer to be nominated by the Apex Authority;   
(vi) a person having experience in administration to be nominated by the 
State Government;   
(vii) a person having experience in land acquisition and dealing with post 
land acquisition issues nominated by the State Government; 
 
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(viii) two non -officials who possess experience in area development and 
regional planning to be nominated by the State Government;   
(ix) two ex -officials of the Central Government or Pollution Control 
Board, who have experience in dealing with Environmental aspects, 
nominated by the State Government;   
(x) two representatives from the industry o r service or business sector 
to be nominated by the State Government; and  
(xi) a Member-Secretary, who shall be an officer of the Government to be 
appointed by the State Government, shall be the Chief Executive 
Officer of the Regional development authority.    
 
 11. Term of office and conditions of service of members. -  (1) 
The term of office and conditions of service, qualification and disqualification 
of the Chairperson, the Chief Executive Officer and non official members of 
Regional development authority shall be such, as may be prescribed. 
(2) The appointment, remuneration, allowances and conditions of 
services of the officers and employees of the Regional development authority 
shall be such, as may be specified by regulations.   
 
12. Meeting of the Regional development authority and 
transaction of business.- The Regional development authority shall meet at 
such time and at such place as the Chairperson may determine:  
 Provided that, the procedure with regard to transaction of business of 
its meetings, and quorum of such meeting shall be, as may be specified by 
regulations by the Apex Authority  in consultation with  the State 
Government.  
  
13. Constitution of committees .- The Regional development 
authority may constitute an Executive Committee and such other 
committees consisting of such number of its members for performance of its 
functions as may be specified by regulations: 
Provided that, the core functions of the Reg ional development 
authority such as preparation of the development plan, town planning 
scheme and the general development regulations shall not be delegated to 
any committee of the Regional development authority.   
 
14.  Acts and proceedings of the Regiona l development authority 
and committees presumed to be valid. - No act or proceedings of the 
Regional development authority and any of its committees shall be invalid or 
vitiated merely by reason of,- 
(a) a vacancy therein or any defect in the constitution thereof; or   
(b) an irregularity in its procedure not affecting the merit of the case.   
 
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CHAPTER – V 
POWERS AND FUNCTIONS OF THE REGIONAL DEVELOPMENT 
AUTHORITY 
 
15. Powers and functions of the Regional Development 
Authority.- (1) The Regional development authority shall secure planned 
development of the Special Investment Region and shall take steps for its 
effective regulation and efficient management so as to bring and enhance 
general welfare, convenience, productivity and excellence.   
(2) Without prejudice to the generality of foregoing provisions, the 
Regional development authority shall undertake the management and 
planning of land resource and infrastructure of the Special Investment 
Region. 
(3) The Regional development authority  shall, in particular, exercise 
the following powers and perform the following functions, namely:- 
 
(i) to classify and earmark the area of the Special Investment Region for 
various purposes and usages including economic activities, 
amenities and community services as it deems fit;   
(ii) to prepare the development plan for whole or part of the area of the 
Special Investment Region;   
(iii) to undertake preparation and execution of town planning scheme for 
whole or part of the Special Investment Region;    
(iv) to regulate the  development of the periphery area of the Special 
Investment Region;    
(v) to acquire, hold and manage immoveable property as it may deem 
necessary subject to general or specific directions of the State 
Government in this regard;   
(vi) to acquire land in the Spec ial Investment Region, by sale, lease, 
grant, allocation, donation, town planning scheme, consent 
agreement or through proceedings under the Karnataka Industrial 
Areas Development Act, 1966  (Karnataka Act 18 of 1966) for the 
purposes of this Act;   
(vii) to sale, lease, transfer or dispose off any land or building belonging 
to it, subject to the regulations made by the Apex Authority;   
(viii) to carry out surveys in the Special Investment Region for the 
preparation of development plans and town planning schemes; 
(ix) to prepare, issue and implement the directions, the standards and 
the norms for building structures, infrastructure development and 
other construction activities in the Special Investment Region; 
(x) to enter into contracts, agreements or concession agreements with  
any person, entity, developer or organization as it may deem 
necessary for performing its functions;   
(xi) to execute, co -ordinate and supervise works in connection with 
infrastructure or provision of other services and amenities in the 
Special Investment Region;   
 
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(xii) to provide for disaster management and mitigation in the Special 
Investment Region;   
(xiii) to levy and collect such fee, development charges or user charges as 
may be ascertained and fixed by the Apex Authority under clause 
(vii) of sub-section (2) of section 6; 
(xiv) to remove encroachments and constructions not duly authorized or 
made in violation of the regulations, directions and norms laid down 
by the Regional development authority;   
(xv) to make arrangements for observance and promotion of safety, 
order, heal th and environmental safeguards within the Special 
Investment Region;   
(xvi) to guide, assist and co-ordinate with other authorities functioning in 
the Special Investment Region, in matters pertaining to planning and 
use of land and development of the Special Investment Region;   
(xvii) to control the development activities in accordance with the 
development plan and to bring aesthetics, efficiency and economy in 
the process of development;   
(xviii) to ensure and make provision for sufficient civic amenities and 
services incl uding hospitals and medical services, schools, fire 
services, public parks, markets and shopping places, playgrounds, 
entertainment areas and disposal of waste and provision of drainage;   
(xix) to make sustainable arrangements for providing and maintaining the 
highest standards in civic amenities and services particularly for 
cleanliness, aesthetics, health and hygiene;    
(xx) to make enquiry, inspection, examination or measurement of any 
land and building in any part of the Special Investment Region; and 
(xxi) to exercise such other powers and discharge such other functions as 
may be prescribed by the rules or regulations. 
 
(4) (a) Notwithstanding anything contained in the relevant Acts, rules 
or any existing instructions of the State Government, the Regional 
development authority may frame its own general development regulations 
and the same shall prevail for developments in the Special Investment 
Region;     
(b) Every person, unit or developer or any other stakeh older in the 
Special  Investment Region shall be required to get the plans of the building 
approved by the Regional development authority, before commencing any 
construction and shall obtain the approval of the Regional development 
authority, which are nec essary and incidental thereto, after the completion 
and before use of such  premises; and    
(c) For  the  purpose  of  this  section  and  with  any  other  
requirement  for  proper  planning,  management  and  development  of  the  
Special  Investment  Regio n,  the  Regional  development  authority  may  
issue  such  direction  or  instruction as it may consider necessary to any 
person, unit, entity, developer or any other stakeholder in the Special 
Investment Region and the person, unit, entity, developer or  the 
stakeholder, as the case may be, shall be bound by such  directions.   
 
 
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 16. No erection, etc. by any person or entity without 
permission of Regional development authority. - (1) No person or entity 
shall erect or occupy any building or structure in the Special Investment 
Region in contravention of any building norms made by the Regional 
development authority.   
(2) Notwithstanding anything contained in any other law, for the time 
being in force, no person or entity shall erect or occupy any building or 
structure within the Special Investment Region, except with the previous 
permission of the Regional development authority.    
(3) A person desiring to undertake building operations or er ection or 
occupation of any building or structure in the Special Investment Region 
referred to in sub -section (2), shall seek prior permission of the Regional 
Development Authority in such manner, as may be specified in regulations. 
 
(4) The Regional developme nt authority may, after making such 
inquiry as it deems necessary, grant permission on such conditions, as it 
may be specified in regulations or refuse to grant such permission.  
(5) (a) Any person aggrieved by the decision of the Regional 
development authorit y under sub -section (4) may, within thirty days from 
the date of decision, may prefer an appeal before the Dispute Resolution 
Forum constituted under section 26, in such manner as may be specified by 
regulations;   
(b) The Dispute Resolution Forum, after heari ng the Regional 
development authority and the aggrieved person and considering all relevant 
facts, may accept or reject the appeal filed under sub -section (5) or modify 
the decision taken by the Regional development authority;   
(c) In  case  of  rejection  of   appeal  or  modification  of  the  decision  
of  Regional development authority under clause (b), the aggrieved person  
may prefer second appeal to the Dispute Settlement Mechanism set up 
under section 27, within thirty days from the date of decision of  the Dispute 
Resolution Forum in the manner specified by regulations; and   
(d) The Dispute Settlement Mechanism, after hearing the Regional 
development authority and the aggrieved person, may accept or reject the 
appeal. The decision taken by the Dispute Sett lement Mechanism shall be 
final and binding on the parties. 
 
(6) In case, any person does anything contrary to the decision given 
under  sub-section (4) or (5), the Regional development authority shall have 
power to pull down, demolish or remove any erection m ade contrary to such 
decision and recover the cost of such pulling down, demolition or removal 
from the person concerned.  
  
17. Application of the Karnataka Town and Country Planning Act 
1961.- (1) The provisions of the Karnataka Town and Country Planning  Act 
1961 (Karnataka Act 11 of 1963), shall mutatis mutandis, apply with 
respect to the development plans and to the town planning schemes made 
under this Act. 
 
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(2)  The powers exercised by the State Government for sanctioning of 
development plans and town planning schemes under the Karnataka Town 
and Country Planning Act, 1961 (Karnataka Act 11 of 1963) shall be 
exercised by the Apex Authority.   
(3)  The Regional development authority shall be the Planning 
Authority for the area comprising of the Special I nvestment Region for the 
purposes of the Karnataka Town and Country Planning Act, 1961 
(Karnataka Act 11 of 1963), as so applied to this Act.   
 
CHAPTER – VI 
PROCEDURE FOR SETTING UP OF UNITS AND AMENITIES IN THE 
SPECIAL INVESTMENT REGION 
18. Setting up of  units and amenities in the Special Investment 
Region.- (1) The Apex Authority shall be the single point of contact for 
starting any economic activity or setting up a unit, amenity or infrastructure 
in the Special Investment Region.   
(2) Any person who intends to start an economic activity or set up a 
unit, amenity or infrastructure project in the Special Investment Region or 
who intends to undertake integrated development as under the provisions of 
section 23, shall make a proposal in that regard to the Apex Authority or the 
agency specified by it, in such form containing such particulars and in such 
manner and along with such fee, as may be specified by regulations, by the 
Apex Authority. 
(3) The Apex Authority or the agency specified by it, on receipt of a  
proposal made under sub -section (2), shall examine the same and approve 
with or without modification or disapprove the proposal and shall 
communicate its decision to the concerned person and the Regional 
development authority, as early as possible. 
(4) The Regional development authority, on receipt of communication 
of approval from the Apex Authority or the agency specified by it, shall offer 
the concerned part of the land, premises, facilities or amenities to the 
concerned unit or person.  
(5) The Apex Auth ority or the agency specified by it may offer the 
package, scheme or incentives for an economic activity, amenity or 
infrastructure in the Special Investment Region as per existing policy or 
direction of the State Government.   
 
19.  Units and amenities of  the Special Economic Zone in the 
Special Investment Region to be governed under the relevant Act. - (1) 
Notwithstanding anything contained in this Act or the rules or regulations 
made there under, units and amenities set up in a Special Economic Zone 
and f alling under the Special Investment Region shall continue to be 
governed by the Special Economic Zone Act, 2005 (Central Act 28 of 2005) 
and shall avail the benefits under the concerned policy.  
(2) The Developer of the Special Economic Zone shall take into 
account the development plan prepared by the Regional development 
 
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authority while finalizing the infrastructure within and adjacent to the 
Special Economic Zone and its peripheral area declared under the Special 
Economic Zone Act, 2005 (Central Act 28 of 2005). 
 
CHAPTER - VII 
DEVELOPMENT AND EXECUTION OF INFRASTUCTURE 
PROJECTS 
20. Project development agency.- (1) The State Government may set 
up or designate a Government agency, including a Government company, 
formed under the Companies Act, 2013 (Central Act 18 of 2013) as the 
project development agency and assign it the powers and functions relating 
to project development of a Special Investment Region, including those 
specified in sub-section (5).   
(2) The State Government may form or designate a nodal Governme nt 
company or agency out of the project development agencies and companies 
mentioned in sub -section (1), to act as the project development agency for 
projects relating to all the Special Investment Regions in the State. 
(3) The nodal Government company or agen cy shall carry out its 
functions under general or specific directions of the Apex Authority and 
shall assist the Apex Authority and the State Government in undertaking 
project related task. 
(4) The nodal Government company  or agency shall act in close co -
ordination with the Apex Authority and shall give all support and guidance 
to the Regional development authorities and other agencies, developers and 
entities involved in the task of development of projects relating to the Special 
Investment Regions. 
(5) The functions of the nodal Government company or agency shall 
include the following, namely:- 
(i) conceiving and detailing of the projects;   
(ii) assessing the techno-commercial and economic feasibility;   
(iii) financial structuring of projects;   
(iv) environmental issues and solutions;   
(v) implementing the projects or awarding them to other developers or 
entities in a transparent manner;  
(vi) global marketing of the projects in the Special Investment Region 
and connected with the Special Investment Regions;  
(vii) raising finances from the market including financial and multilateral 
institutions;   
(viii) promoting and bringing in private sector participation in projects 
within or connected with the Special Investment Region in a 
transparent manner;   
(ix) entering into contracts and agreement with other entities for any of 
the purposes assigned to it; and  
(x) taking or suggesting any other steps for effective implementation, 
marketing and management of the projects connected with the 
Special Investment Region. 
 
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(6) Any other en tity proposing to undertake the development of 
infrastructure projects in the Special Investment Region or connected 
thereto, shall make the proposal in that regard to the Apex Authority.   
21. Transfer of possession of assets to the Government company 
for infrastructure development. - (1) The Regional development authority 
may transfer the possession of its assets, including the land granted by the 
State Government, its agencies or  local authority, as the case may be, to a 
Government company for developmen t of infrastructure and amenities in 
the Special Investment Region, with the approval of Apex Authority.   
(2) Public assets, including land and rights thereon shall be given 
possession or conferred to a private entity for a project as per agreement or 
as the case may be, for the purpose of development of infrastructure and 
amenities in the Special Investment Region as per the concession agreement 
approved under Public Private Partnership guidelines. 
 
22.  Award of projects to a developer.- (1) The Regional development 
authority may enter into agreement with a developer for carrying out any 
project or work in the Special Investment Region:   
Provided that, in case of infrastructure projects, the process of 
selection of a developer shall be as stipulated in the prevailing Public Private 
Partnership Policy for Infrastructure Projects for the State of Karnataka, in a 
transparent manner. 
(2) Without prejudice to the generality of the foregoing provisions, the 
Regional development authority may enter i nto a joint venture agreement 
with another Government company or another developer or entity to form a  
special purpose entity for developing or managing a particular project in the  
Special Investment Region, with prior approval of the Apex Authority: 
Provided that, while entrusting the project to a developer or a private 
entity, it shall be done in a transparent manner.   
 
23.  Integrated development of a large area in the Special 
Investment Region.- A person or an entity, having under his possession, 
the minimum contiguous area in the Special Investment Region as specified 
by the Apex Authority, from time to time and intending to undertake 
integrated development of the said area with economic activity and 
amenities, may apply to the Apex Authority or the agency specified by it, as 
per the procedure under section 18: 
Provided that, such development shall be subject to the development 
plan, the general development regulations and such other conditions as the 
Apex Authority or the agency specified by it, may deem fit. 
 
CHAPTER - VIII 
ALLOCATION OF PREMISES, EVICTION AND RECOVERY OF DUES 
24. Allocation of premises in the Special Investment Region. - (1) 
Subject  to any general or specific directions of the State Government or the 
Apex Authority, the Regional development authority shall be the primary 
 
15 
 
agency for allocating and handing over the premises, land and amenities to 
the units, amenities and in frastructure projects being set up in the Special 
Investment Region.   
(2) The Regional development authority shall offer the land, premises 
and amenities within the Special Investment Region to the concerned unit or 
person on such terms and conditions and after levying such charges as may 
be specified by regulations or as directed by the Apex Authority or the 
agency specified by it. 
(3) The Regional development authority shall make provisions and 
take steps for recovery of dues, rent and charges from the occupa nts of 
premises and amenities in the Special Investment Region. 
(4) The pending dues, if any, on proposal and certification in this 
regard by the Regional development authority, shall be recovered or 
collected as an arrear of land revenue. 
(5) The Regional development authority, in consultation with the Apex 
Authority, may make provisions by regulations for eviction of the occupants 
from any premises in the Special Investment Region for violation of any 
guidelines or regulations issued under this Act or non -compliance of the 
provisions of this Act. 
 
25. Resumption of the possession of premises including the 
residential tenements on breach of terms or conditions of lease or 
holding without authority. - (1) Where the Regional Development Authority 
is of the opinion, t hat an allottee of any premises or part thereof or 
residential tenement in an Special Investment Region has violated any of the 
terms or conditions of allotment or holds it without any authority, issue 
notice to such allottee and Banks or Financial Institu tions, in whose favour 
the Regional Development Authority has permitted the mortgage or 
leasehold rights of the premises, or residential tenement specifying the 
breaches of the terms and conditions of the allotment calling upon the 
allottee to remedy such breaches within the time, stipulated in the notice.  
(2) If the allottee fails to remedy the breaches within the time so 
stipulated, the Regional Development Authority shall serve a notice upon the 
allottee under intimation to such Bank or Financial Instit ution to show 
cause within thirty days from the date of service of notice, why the 
possession of the premises or part thereof or residential tenement should 
not be resumed.  
(3) After considering the cause, if any, shown by the allottee and after 
giving hi m an opportunity of being heard, the Regional Development 
Authority may pass such orders, as it deems fit.  
(4) Where the Regional Development Authority passes an order under 
sub-section (3), for resuming possession of the premises or part thereof 
including residential tenement in the industrial area, it may, by notice in 
writing, order any allottee to surrender and deliver possession thereof to the 
Board or any person duly authorized in this behalf, within the date specified 
in the notice. 
 
16 
 
(5) If any allot tee refuses to surrender or deliver the possession of the 
premises or part thereof including residential tenement within the time 
specified in the notice, the Regional Development Authority or any officer 
authorized by it in this behalf may resume the possession of the premises or 
part thereof including residential tenement free from all encumbrances and 
for that purpose may use force, as may be necessary. 
 
CHAPTER - IX 
REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES 
26. Redressal of grievances and settl ement of disputes. - Without 
prejudice to the jurisdiction of any court of law and to the provisions of the 
Arbitration and Conciliation Act, 1996 (Central Act 26 of 1996) an internal 
Dispute Settlement Mechanism for the purposes of this Act shall be as 
follows, namely:-   
(i) the Regional development authority shall set up a Grievances 
Redressal Committee comprising of such number of its members 
and officers as may be decided by it to redress the grievances and 
resolve the dispute originating from any stakeholder in the Special 
Investment Region.   
(ii) any person aggrieved by the decision of the Grie vances Redressal 
Committee may appeal to the Dispute Resolution Forum set up by 
the Apex Authority, comprising of such number of members and 
officers as may be decided by it.   
(iii) for the purpose of deciding the dispute, the Grievances Redressal 
Committee and  the Dispute Resolution Forum shall frame the 
guidelines, including the time frame in this regard and follow the 
principles of natural justice while dealing with the grievances.   
 
27. Dispute Settlement Mechanism. - (1) The State Government 
may, by notification, form a Dispute Settlement Mechanism consisting of 
such number of member as may be specified by it, to deal with the disputes 
against the Regional development authority or those arising in any manner 
in the Spe cial Investment Region and brought before it or those which   
could not be resolved or settled by the Grievances Redressal Committee and  
Dispute Resolution Forum.   
(2) The qualification, tenure of office and other terms and conditions of 
the Chairperson and members of the Dispute Settlement Mechanism shall 
be such, as may be prescribed. 
(3) For the purpose of deciding the dispute, the Dispute Settlement 
Mechanism shall frame the guidelines, including the time frame in this 
regard and follow the principles of natu ral justice while dealing with the 
dispute. 
(4) The order passed by the Dispute Settlement Mechanism shall be 
final.   
 
17 
 
 
CHAPTER - X 
CONTROL, REGULATION AND DEVELOPMENT IN THE SPECIAL 
INVESTMENT REGION 
28. Control, regulation and development. - (1) The State 
Government may, by notification, declare the whole or any part of the 
Special Investment Region to be controlled area for the purposes of this Act.   
(2) No land within the controlled area shall, except with the 
permission of the Regional development authority , be used for purposes 
other than those for which it was used on the date of notification under sub-
section (1). 
(3) Notwithstanding anything contained in any relevant law, no local 
authority or the Government agency shall grant any permission for any 
development work or sanction any project including those referred to in sub-
section (2) unless the Regional development authority has given specific 
approval for the same. 
 
(4) No person shall erect any building or make or extend any 
excavation or lay out any means of  access to a road, in the controlled area, 
save with the previous permission of the Regional development authority 
and in accordance with the development plan and guidelines or regulations 
formulated by the Regional development authority or the Apex Authority. 
(5) Any person desiring to obtain permission referred to in sub -section 
(4), shall make an application in writing to the Regional development 
authority in such form and containing such information as may be specified 
by the Regional development authority. 
(6) The Regional development authority may, after making due 
enquiry, grant such permission, subject to such conditions as it deems fit or 
may refuse to grant the same. 
(7) Any person aggrieved by the decision of the Regional development 
authority under sub-section (6) may, within thirty days from the date of the 
decision of the Regional development authority, prefer an appeal against 
such decision to the Dispute Resolution Forum of the Apex Authority. 
(8) No person shall be entitled to claim compensation for any inju ry, 
loss or damage caused or alleged to have been caused by the control on the 
developments under this Act. 
(9) The Regional development authority may order any person who has  
committed a breach of the provisions of this section to stop or to restore to 
its original state or to bring into conformity with the conditions imposed, as 
the case may be, within the stipulated time period, any building or land in 
respect of which a contravention has been committed. 
(10)  If such person fails to do so as directed under sub -section (9), the 
Regional development authority may itself take measures to give effect to the 
order and the cost of such measures shall be recovered from such person as 
an arrear of land revenue. 
(11)  Nothing in this section shall apply to,-   
 
18 
 
(a) any building fo r the purposes of residence or building subservient 
to agriculture in the village site area (gramtana) of a village 
panchayat, municipal area and municipal corporation area and 
Bruhat Bengaluru Mahanagara Palike area;    
(b) the erection of a building or a wal l enclosing a crematorium, 
graveyard, place of worship or samadhi on land which is, at the 
time of the notification under the sub -section (1), was traditionally 
occupied by or was used for the said purposes;   
(c) normal excavations (including wells) made in the ordinary course of 
agriculture;   
(d) the construction of an un -metalled road intended to give access to 
land solely for agricultural purposes; and 
(e) construction or extension in an agricultural land, of a dwelling 
house for personal use or for storage of agr icultural assets of the 
owner, as per permissible norms specified by the State 
Government, from time to time, under the relevant Acts or rules.    
 
CHAPTER – XI 
SPECIAL INVESTMENT REGION TO BE AN INDUSTRIAL 
TOWNSHIP 
 
29. Special In

Excerpt shown. Open the full act in Lexace.

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