The KARNATAKA INDUSTRIAL AREAS DEVELOPMENT ACT, 1966

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THE KARNATAKA INDUSTRIAL AREAS DEVELOPMENT ACT, 1966
ARRANGEMENT OF SECTIONS
Statement of Object and Reasons
Sections:
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.
2. Definitions.
CHAPTER II
INDUSTRIAL AREAS
3. Declaration of industrial areas.
4. Alteration of industrial area.
CHAPTER III
ESTABLISHMENT AND CONSTITUTION OF THE BOARD
5. Establishment and Incorporation.
6. Constitution.
7. Term of office and conditions of service of members.
8. Meetings of the Board.
9. Omitted.
10. Omitted.
11. Employees of the Board.
12. Savings of validity of proceedings.
CHAPTER IV
FUNCTIONS AND POWERS OF THE BOARD
13. Functions.
14. General powers of the Board.
15. Authentication of orders and documents of the Board.
16. Omitted.
17. Directions by State Government.
CHAPTER V
FINANCE, ACCOUNTS AND AUDIT
18. Application of Board's assets.
19. Board's fund.
20. Power of the Board to borrow.
21. Deposits.
22. Budget and programme of work.
23. Expenditure from funds.
24. Accounts and Audit.

CHAPTER VI
APPLICATION OF THE KARNATAKA PUBLIC PREMISES (EVICTION OF UNAUTHORISED
OCCUPANTS) ACT, 1974, AND NON-APPLICATION OF THE KARNATAKA RENT CONTROL ACT,
1961, TO BOARD PREMISES

25. Application of Karnataka Act 32 of 1974 to Board premises.
26. Non-application of Karnataka Act 22 of 1961 to Board premises

CHAPTER VII
ACQUISITION AND DISPOSAL OF LAND
27. Application.
28. Acquisition of land.
29. Compensation.
30. Application of Central Act 1 of 1894.
31. Delegation of powers by the State Government.

CHAPTER VIII
SUPPLEMENTARY AND MISCELLANEOUS PROVISIONS
32. Government Lands.
33. Powers of the Board in case of certain defaults by owner of land in industrial
area.
34. Penalty for construction or use of land and building contrary to terms of
holding.
34A. Demolition or alteration of unauthorised construction or alteration.
35. Powers of entry.
36. Recovery of sums due to the Board as arrears of land revenue.
37. Withdrawal of area or estate or part thereof.
38. Authority for prosecution.
39. Penalty for obstruction.
40. Power to make rules.
41. Power to make Regulations.
42. Rules and regulations to be laid before State Legislature.
43. Exemption of stamp duty and fees.
44. Offences by companies.
45. Protection of action taken in good faith.
46. Employees of Board to be public servants.
47. Effect of provisions inconsistent with other laws.
48. Power to remove doubts and difficulties.

STATEMENTS OF OBJECTS AND REASONS

Act 18 of 1966.- It is considered necessary to make provision for the orderly
establishment and development of Industries in suitable areas in the State. To achieve
this object, it is proposed to specify suitable areas for Industrial Development and
establish a Boar d to develop such areas and make available lands therein for
establishment of Industries.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV- 2A No. 57 dated 26-
3-1966 at page 20.)

Amending Act 27 of 1978. - The Karnataka I ndustrial Areas Development Act,
1966 (Karnataka Act No. 18 of 1966), was enacted for the establishment of industrial
areas in the State and generally to promote the establishment and orderly
development of industries therein.
According to section 34 pena l action could be taken against any person who
constructs or alters or uses any building in an industrial area or industrial estate
contrary to the terms under which he holds such building or land. There is, however,
no provision in the Act to demolish or alter the unauthorised structures for the
purpose of enforcing the building regulations made under the Act, it is considered
necessary to empower the Board to demolish unauthorised constructions and to direct
the holders to construct or alter buildings in accordance with the regulations and
conditions laid down in this behalf and if they fail to do so to get it done at their cost.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV - 2-A No. 950 dated
14-6-1978 at page 5.)

III

Amending Act 19 of 1987. - It is proposed to provide for constitution of Board
on broader basis by including the different authorities connected with industrial
development in the State so that there can be better co -ordination and effective
implementation of various programmes taken up by the Board.
Opportunity is also taken to make certain consequential amendments.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2-A No. 77, dated
30-1-1987 at page 4.)

Amending Act 12 of 1992.- Karnataka State Financial Corporation is playing a
pivotal role in promotion of industries in the State and is also financing the Karnataka
Industrial Areas Development Board. Therefore it is felt necessary to make managing
Director of the Karnata ka State Financial Corporation also as one of the members of
the Karnataka Industrial Areas Development Board, in order to have better co -
ordination.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2-A No. 143, dated
12-3-1992 at page 348.)

Amending Act 11 of 1997. - After the liberalisation of economic and industrial
policies in the year 1991 increased emphasis has been given for Private Sector
investment not only in the Industrial Sector but also in the Infrastructural S ectors. As
such, a number of proposals, both from indigenous and foreign companies have been
received for considerable investments in infrastructural areas like establishment of
power subjects, express highways, ports, airports, townships, industrial works etc.
These projects need considerable extent of land for implementation.
Therefore, it is considered necessary to amend the Karnataka Industrial Areas
Development Act. 1966 to enable the Board to acquire and for providing industrial
Infrastructural facil ities. Accordingly, it is proposed to incorporate the definition of
industrial Infrastructural facilities.
Since, it is not possible to declare any area as a notified area under the
Constitution 73rd Amendment Act, section 16 has been omitted. Certain
consequential amendments are also made.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV -2-A No. 224, dated
19-2-1997 at page 11.)

Amending Act 19 of 2000.- It is considered necessary to provide for a provision,
otherwise t han section 25, enabling of the Board to specify resumption of the
possession of the premises in case of breach of any of the terms of lease or contract or
unauthorised occupation by lease, without having recourse to the provisions of the
Public Premises ( Eviction of Un -authorised Occupation) Act, 1974 or by filing a civil
suit for possession.
Hence the Bill.
(Obtained from L.A. Bill No.1 of 2000.)

VII

Amending Act 20 of 2022 It is considered necessary to amend the Karnataka
Industrial Areas Development Act, 1966 (Karnataka Act 18 of 1966) to provide for
application of the provisions of the Right to fair compensation and transparency in
Land Acquisition, rehabilitation and resettlement Act, 2013 (Cent ral Act 30 of 2013)
with respect to land acquisition.
Hence, the Bill.

[L.A. Bill No. 08 of 2022, File No. SAMVYASHAE 8 SHASANA 2022]
[Entry 18, 24 and 32 of List II of the Seventh Schedule to the Constitution of India]
[Published in Karnataka Gazette Extra-ordinary No.217 in part-IVA dated: 05.04.2022]

VIII
Amendment Act 61 of 2025 :- It is considered necessary to amend the
following Acts for decriminalising and rationalising offences and to further
enhance trust-based governance for ease of living and doing business, namely:-
1. the Bangalore Water Supply and Sewerage) Act, 1964 (Karnataka Act
36 of 1964);
2. the Karnataka Urban Development Authorities Act, 1987 (Karnataka
Act 34 of 1987);
3. the Karnataka Agricultural produce marketing (Regulation a nd
Development) Act, 1966 (Karnataka Act 27 of 1966);
4. In the Karnataka Warehouse Act, 1961 (Karnataka Act 11 of 1962);
5. the Karnataka Tourism Trade (Facilitation and Regulation) Act, 2015
(Karnataka Act 21 of 2015);
6. the Karnataka Industrial Areas Development Act, 1966 (Karnataka Act
18 of 1966);
7. the Karnataka Gram Swaraj and Panchayatharaj Act, 1993 (Karnataka
Act 14 of 1993);

8. the Karnataka Lifts, Escalators and Passenger Conveyors Act, 2012
(Karnataka Act 9 of 2013);
9. the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964);
10. the Karnataka Municipal Corporations Act, 1976 (Karnataka Act 14
of 1977);
11. the Karnataka Town and Country Planning Act, 1961 (Karnataka Act
11 of 1963) ;and
12. the Karnataka Industries (Facilitation) Act, 2002 (Karnataka Act 45 of
200
Hence, the Bill.

[L.A. Bill No. 59 of 2025, File No. SAMVYASHAE 65 SHASANA 2025]
[Entries 5, 6, 28, 32 of List II and entry 20 of List III of the Seventh Schedule to
the Constitution of India]
[Published in Karnata ka Gazette Extra -ordinary No.577 in part -IVA
dated:12.09.2025]

1[KARNATAKA]1 ACT NO.18 OF 1966
(First published in the 1[Karnataka]1 Gazette on the Twenty-sixth day of May 1966)

THE 1[KARNATAKA]1 INDUSTRIAL AREAS DEVELOPMENT ACT, 1966.
(Received the assent of the President on the Fourteenth day of May , 1966.)
(As Amended by Acts 27 of 1978, 19 of 1987, 12 of 1992, 11 of 1997,19 of 2000, 20 of 2022 and 61 of
2025)

An Act to make special provisions for securing the establishment of
industrial areas in the 1[State of Karnataka] 1 and generally to promote the
establishment and orderly development of industries therein, and for that
purpose to establish an Industrial Areas Development Board and for purposes
connected with the matters aforesaid.
WHEREAS it is expedient to make special provisions for securing the
establishment of industrial areas in the 1[State of Karnataka]1 and generally to
promote the establishment and the orderly development of industries in such
industrial areas, and for that purpose to establish an Industrial Areas
Development Board and for purposes connected with the matters aforesaid;
BE it enacted by the 1[Karnataka]1 State Legislature in the Seventeeth
Year of the Republic of India as follows:-
1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973

CHAPTER I
PRELIMINARY
1. Short title, extent and commencement.- (1) This Act may be called the
1[Karnataka]1 Industrial Areas Development Act, 1966.
1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
(2) It extends to the whole of the 1[State of Karnataka]1.
1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
(3) This Act except Chapter VII shall come into force at once; Chapter
VII shall come into force in such area and from su ch 1[date]1 as the State
Government may, from time to time, by notification, specify in this behalf.
1. see the notification at the end of the Act

2. Definitions.- In this Act, unless the context otherwise requires,-
(1) “amenity” includes road, supply of water or electricity, street lighting,
drainage, sewerage, conservancy, and such other convenience, as the State
Government may, by notification specify to be an amenity for the purposes of
this Act;
(2) ‘‘Board’’ means the Industrial Areas Development Board establi shed
under this Act;

(3) ‘‘building’’ means any structure or erection or part of a structure or
erection, which is intended to be used for residential, industrial, commercial or
other purposes, whether in actual use or not;
(4) ‘‘Deputy Commissioner’’ means the D eputy Commissioner of the
district concerned, and includes any officer specially appointed by the State
Government to perform the functions of a Deputy Commissioner under this
Act;
(5) “development” with its grammatical variations means the carrying out
of levelling, digging, building, engineering, quarrying or other operations in, on,
over or under land, or the making of any material change in any building or
land, and includes re -development; and “to develop” shall be construed
accordingly;
(6) “industrial area” means any area declared to be an industrial area by
the State Government by notification which is to be developed and where
industries are to be accommodated 1[and industrial infrastructural facilities
and amenities are to be provided]1 and includes, an industrial estate;
(7) “industrial estate” means any site selected by the State Government
where factories and other buildings are built for use by any industries or class
of industries;
1[(7a) "industrial infrastructural facilities'' means facilities which
contribute to the development of industries established in industrial area such
as research and development, communication, transport, Banking, Marketing,
Technology parks and Townships for the purpose of establishing trade and
tourism centres; and any othe r facility as the State Government may by
notification specify to be an industrial infrastructural facility for the purposes
of this Act.]1
1. Sub-section (7a) inserted by Act 11 of 1997 w.e.f. 18.8.1997
(8) “notification” means a notification published in the official Gazette’
(9) “premises” means any land or building or part of a building and
includes,-
(i) the garden, grounds and out-houses, if any, appertaining to such
building or part of a building ; and
(ii) any fittings affixed to such building or part of a building for the more
beneficial enjoyment thereof;
(10) “prescribed” means prescribed by rules made under this Act;
(11) the expression "land” and the expression “person interested” shall
have the meanings respectively assigned to them in section 3 of the Land
Acquisition Act, 1894 (Central Act 1 of 1894).

CHAPTER II
INDUSTRIAL AREAS
3. Declaration of industrial areas .- The State Government may, by
notification, declare any area in the State to be an industrial area for the
purposes of this Act.
(2)Every such notificati on shall define the limits of the area to which it
relates.

4. Alteration of industrial area.- The State Government may at any time,
by notification, exclude from any industrial area, any area, or include therein
any additional area, as may be specified in such notification.

CHAPTER III
ESTABLISHMENT AND CONSTITUTION OF THE BOARD
5. Establishment and incorporation. - For the purposes of securing the
establishment of industrial areas in the 1[State of Karnataka]1 and generally for
promoting the rapid and ord erly establishment and development of industries
2[and for providing industrial infrastructual facilities and amenity] 2 in
industrial areas in the 1[State of Karnataka] 1, there shall be established by the
State Government by notification a Board by the nam e of the 1[Karnataka
Industrial Areas Development Board]1.
1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
2. Inserted by Act 11 of 1997 w.e.f. 18.8.1997

2) The said Board shall be a body corporate with perpetual succession and
a comm on seal, and may sue and be sued in its corporate name, and shall
subject to the provisions of this Act and the rules made thereunder be
competent to acquire, hold and dispose of property, both movable and
immovable, and to contract and do all things necessary for the purposes of this
Act.

6. Constitution.- The Board shall consist of the following members,
namely:-
(a) the Secretary to the 1[Government of Karnataka]1, Commerce and
Industries Department who shall ex-officio be the Chairman of the Board;
1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
(b) the Secretary to the 1[Government of Karnataka]1, Finance Department;
1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
1[(c)the Secretary to Government, Housing an d Urban Development
Department;

(ca) the Commissioner for Industrial Development and Director of
Industries and Commerce;
(cb) the Chairman and Managing Director, Karnataka State Industrial
Investment and Development Corporation Limited;
(cc) the Chairman, Karnataka State Pollution Control Board;
(cd) the Director of Town Planning;
(ce) the Managing Director, Karnataka State Small Industries
Development Corporation Limited ;]1
1. Substituted by Act 19 of 1987 w.e.f. 4.5.1987
1 [(cf) the Managing Director, Karnataka State Financial Corporation.]1
1. Inserted by Act 12 of 1992 w.e.f. 24.4.1992
(d) the Executive Member of the Board; and
1[(e) two nominees of the Industrial Development Bank of India.]1
1. Substituted by Act 19 of 1987 w.e.f. 4.5.1987

7. Term of office and conditions of service of members.-1[(1) xxx]1
1. Omitted by Act 19 of 1987 w.e.f. 4.5.1987
(2) The members of the Board shall be entitled to draw such compensatory
allowance as may be prescribed, for the purpose of meeting the personal
expenditure incurred in attending the meetings of the Board or any Committee
thereof or when appointed in connection with the work undertaken by or for
the Board.

8. Meetings of the Board. - (1) The Board shall meet at such times and
places and shall observe such rules of procedure in regard to the transaction of
its business as may be provided by regulations made under this Act.
1 [9. xxx
10. xxx]1
1. Sections 9 & 10 omitted by Act 19 of 1987 w.e.f. 4.5.1987

11. Employees of the Board.- (1) The State Government shall appoint an
officer of the State Government as the Executive Member of the Board who
shall be the Chief Executive Officer of the Board. His terms and conditions of
office shall be such as may be determined by the State Government.
(2) The Board may appoint such employ ees subordinate to the
Executive Member, as it considers necessary for the efficient performance of its
duties and functions. The terms and conditions of service of the said employees
shall be such as may be determined by regulations made under this Act.

12. Savings of validity of proceedings.- No act done or proceedings
taken under this Act shall be questioned merely on the ground,-
(a) of any vacancy or defect in the constitution of the Board or of any
committee thereof; or
(b) of any defect or irregularity in such act or proceeding not affecting the
merits of the case.

CHAPTER IV
FUNCTIONS AND POWERS OF THE BOARD
13. Functions.- The functions of the Board shall be,-
(i) generally to promote and assist in the rapid and orderly establishment,
growth and development of industries 1[and to provide industrial
infrastructural facilities and amenity]1 in industrial areas, and
1. Inserted by Act 11 of 1997 w.e.f. 18.8.1997
(ii) in particular, and without prejudice to the generality of clause (i), to,-
(a) develop industrial areas declared by the State Government and make
them available for undertakings to establish themselves;
(b) establish, maintain, develop, and manage industrial estates within
industrial areas;
(c) undertake such schemes or programmes of works, either jointly with
other c orporate bodies or institutions, or with the Government or local or
statutory authorities, or on an agency basis, as it considers necessary or
desirable, for the furtherance of the purposes for which the Board is
established and for all purposes connected therewith.

14. General powers of the Board. - Subject to the provisions of the Act,
the Board shall have power,-
(a) to acquire and hold such property, both movable and immovable as the
Board may deem necessary for the performance of any of its activities and to
lease, sell, exchange or otherwise transfer any property held by it on such
conditions as may be deemed proper by the Board;
(b) to purchase by agreement or take on lease or under any form of
tenancy any land, to erect such buildings and to execute such other works as
may be necessary for the purpose of carrying out its duties and functions;
(c) to provide or cause to be provided amenities 1[,industrial
infrastructural facilities] 1 and common facilities in industrial areas and
construct and maintain or cause to be maintained works and buildings
therefor;
1. Inserted by Act 11 of 1997 w.e.f. 18.8.1997

(d) to make available buildings on lease or sale or lease-cum-sale to
industrialists or persons intending to start industrial undertakings;
(e) to construct buildings for the housing of the employees of industries;
(f) (i) to allot to suitable persons 1[premises or parts thereof] 1 including
residential tenements in the industrial areas established or developed by the
Board;
1. Substituted by Act 19 of 2000 w.e.f. 25.5. 2000
(ii) to modify or rescind such allotments, including the right and power to
evict the allottees concerned on breach of any of the terms or conditions of
their allotment;
1[(iii) to resume possession of premises or part thereof including
residential tenements in the in dustrial area, or industrial estate in the manner
provided in section 34B.]1
1. Inserted by Act 19 of 2000 w.e.f. 25.5.2000
(g) to delegate any of its powers generally or specially to the Executive
Member;
(h) to enter into and perform all such contracts as it may consider
necessary or expedient for carrying out any of its functions; and
(i) to do such other things and perform such acts as it may think
necessary or expedient for the proper conduct of its functions, and the carrying
into effect the purposes of this Act.

15. Authentication of orders and documents of the Board. - All
permissions, orders, decisions, notices and other documents of the Board shall
be authenticated by the signature of the Executive Member or any employee
authorised by the Board in this behalf.
1[16. xxx]1
1. Section 16 omitted by Act 11 of 1997 w.e.f. 18.8.1997

17. Directions by State Government. - The State Government may issue
to the Board such directions of a general nature as it may think necessary or
expedient for the purpose of carrying out th e purposes of this Act, and the
Board shall be bound to follow and act upon such directions.

CHAPTER V
FINANCE, ACCOUNTS AND AUDIT
18. Application of Board’s assets. - All property, fund and other assets
vesting in the Board shall be held and applied by i t, subject to provisions and
for the purposes of this Act.

19. Board’s fund.- The Board shall have and maintain its own fund, to
which shall be credited,-
(a) all moneys received by the Board from the State Government by way of
grants, loans, advances or otherwise;
(b) all fees, costs, deposits and charges received by the Board under this
Act;
(c) all moneys received by the Board from the disposal of lands, buildings
and other properties movable and immovable, and from other transactions;
(d) all moneys received by the Bo ard by way of rents or in any other
manner or from any other source.

20. Power of the Board to borrow. - The Board may, subject to such
conditions as may be prescribed, borrow money in the open market or
otherwise with a view to providing itself with adequate resources.

21. Deposits.- The Board may accept deposits on such conditions as it
deems fit from persons, institutions or authorities, to whom allotment or lease
or sale of lands, buildings or sheds is made or is likely to be made in
furtherance of the objects of this Act.

22. Budget and programme of work.- (1) The Board shall, by the last day
of January each year prepare and submit to the State Government for approval
an annual financial statement and programme of work for the succeeding
financial year.
(2) The annual financial statement shall show the estimated receipts and
expenditure during the succeeding financial year in such form and detail as
may be prescribed.
(3) If the approval of the State Government to the annual financial
statement and the programme of work has not been received before the last
day of March, the Board may proceed as if the annual financial statement and
the programme of work have been approved.
(4) The Board shall be competent to make variations in the programme of
work and re -appropriations in the budget in the course of the year provided

that all such variations and re -appropriations out of the approved budget are
submitted for approval to the State Government.
(5) The State Government may by an order extend the last date prescribed
in sub-section (1) for the submission of the annual financial statement and the
programme of work.

23. Expenditure from funds .- (1) The Board shall have the authority to
spend such sums as it thinks fit for the purposes authorised under this Act
from out of the Board’s fund.
(2) Without prejudice to the generality of the power conferred by sub -
section (1), the Board may contribute such sums as it thinks fit towards
expenditure incurred or to be incurred by any local authority or statutory
pubic undertaking in the perform ance, in relation to any of its industrial
estates or industrial areas, of any of the statutory functions of such authority
or undertaking, including expenditure incurred in the acquisition of land.

24. Accounts and Audit.- (1) The Board shall maintain books of account
and other books in relation to its business and transactions in such form, and
in such manner, as may be prescribed.
(2) The accounts of the Board shall be audited by an Auditor appointed by
the State Government.
(3) As soon as the accounts of the Board are audited, the Board shall send
to the State Government,-
(a) a copy of the audited accounts, and
(b) an annual report of the working of the Board for the financial year
concerned giving an account of the activities of the Board and such other
particulars as may be prescribed, and
(c) a report of the Auditor on the audited accounts of the Board.
(4) The State Government shall cause the audited accounts of the Board
together with the audit report thereon, and the annual report forwarded to it
under sub-section (3) to be laid before each House of the State Legislature as
soon as may be after their receipt by the State Government.

CHAPTER VI

APPLICATION OF THE 1[KARNATAKA PUBLIC PREMISES (EVICTION OF
UNAUTHORISED OCCUPANTS) ACT, 1974] 1 AND NON -APPLICATION OF
THE 2[KARNATAKA]2 RENT CONTROL ACT, 1961, TO BOARD PREMISES

25. Application of 1[Karnataka Act 32 of 1974] 1 to Board premises.-(1)
The State Government, may by notification provide from such date as may be
specified in such notification that the 1[Karnataka Public Premises (Eviction of
Unauthorised Occupants) Act, 1974] 1 shall apply to premises belonging to,
vesting in, or leased by, the Board as that Act applies in relation to public
premises, but subject to the provisions of sub-section (2).
1. Substituted by Act 19 of 1987 w.e.f. 4.5.1987
2. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
(2) On a notification being issued under sub -section (1), the aforesaid Act
and the rules made thereunder shall apply to the premises of the Board with
the following modifications, that is to say:-
(a) the State Government may appoint any officer whether under the
Government or the Board, as it thinks fit, to be the competent officer for the
purposes of the aforesaid Act;
(b) reference to "public premises" in that Act and those rules shall be
deemed to be references to premises of the Board, and references to "the State
Government" in sections 6, 7, 8,1[14, 15, 16 and 17]1 of that Act shall be
deemed to be references to the Board.
26. Non-application of 1[Karnataka]1 Act 22 of 1961 to Board
premises.- The 1[Karnataka]1 Rent Control Act, 1961,-
1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973
(a) shall not apply to any premises belonging to or vesting in the Board
under or for the purposes of this Act;
(b) shall not apply as against the Board to any tenancies or like
relationship created by the Board in respect of any such premises;
(c) but shall apply to any premises let to the Board.

CHAPTER VII
ACQUISITION AND DISPOSAL OF LAND
27. Application.- The provisions of this Chapter shall apply to such areas
from such dates as have been notified by the State Government under sub -
section (3) of section 1.

28. Acquisition of land. - (1) If at any time, in the opinion of the State
Government, any land is required for the purpose of development by the Board,
or for any other purpose in furtherance of the objects of this Act, the State
Government may by notification, give notice of its intention to acquire such
land.
(2) On publication of a notification under sub -section (1), the St ate
Government shall serve notice upon the owner or where the owner is not the
occupier, on the occupier of the land and on all such persons known or

believed to be interested therein to show cause, within thirty days from the
date of service of the notice, why the land should not be acquired.
(3) After considering the cause, if any, shown by the owner of the land and
by any other person interested therein, and after giving such owner and person
an opportunity of being heard, the State Government may pass such orders as
it deems fit.
(4) After orders are passed under sub -section (3), where the State
Government is satisfied that any land should be acquired for the purpose
specified in the notification issued under sub-section (1), a declaration shall, by
notification in the official Gazette, be made to that effect.
(5) On the publication in the official Gazette of the declaration under sub-
section (4), the land shall vest absolutely in the State Government free from all
encumbrances.
(6) Where any land is vested in the State Government under sub -section
(5), the State Government may, by notice in writing, order any person who may
be in possession of the land to surrender or deliver possession thereof to the
State Government or any person duly authorised by it in this behalf w ithin
thirty days of the service of the notice.
(7) If any person refuses or fails to comply with an order made under sub -
section (5), the State Government or any officer authorised by the State
Government in this behalf may take possession of the land and may for that
purpose use such force as may be necessary.
(8) Where the land has been acquired for the Board, the State
Government, after it has taken possession of the land, may transfer the land to
the Board for the purpose for which the land has been acquired.

29. Compensation.- (1) Where any land is acquired by the State
Government under this Chapter, the State Government shall pay for such
acquisition compensation in accordance with the provisions of this Act.
(2) Where the amount of compensation has been determi ned by
agreement between the State Government and the person to be compensated, it
shall be paid in accordance with such agreement.
(3) Where no such agreement can be reached, the State Government shall
refer the case to the Deputy Commissioner for determinat ion of the amount of
compensation to be paid for such acquisition as also the person or persons to
whom such compensation shall be paid.
(4) On receipt of a reference under sub -section (3), the Deputy
Commissioner shall serve notice on the owner or occupier o f such land and on
all persons known or believed to be interested herein to appear before him and
state their respective interests in the said land.

1[30. Application of Central Act 30 of 2013. - The sections 23, 23A, 26,
27, 28, 29, 30, 64, 65, 69, 72, 73 , 74, 75, 76, 77, 78, 79, 80, 96 and schedule-1
of the Right to fair compensation and transparency in Land Acquisition,
rehabilitation and resettlement Act, 2013 (Central Act 30 of 2013) shall for that
purpose be deemed to form part of this Act in the same manner as if they were
re-enacted in the body thereof in respect of lands acquired under this
Chapter.]1
1. Substituted by Act 20 of 2022 w.e.f. 05.04.2022.

31. Delegation of powers by the State Government. - The State
Government may if it thinks fit delegate any of its powers under this Chapter to
any of its officers, by rules made in this behalf.

CHAPTER VIII
SUPPLEMENTARY AND MISCELLANEOUS PROVISIONS

32. Government Lands.- (1) For the furtherance of the objects of this Act,
the State Government may, upon such conditions as may be agreed upon
between the State Government and the Board, place at the disposal of the
Board any lands vested in the State Government.
(2) After any such land has been developed by, or under the control and
supervision of the Board, it shal l be dealt by the Board in accordance with the
regulations made and directions given by the State Government in this behalf.
(3) If any land placed at the disposal of the Board under sub -section (1), is
required at any time thereafter by the State Government, the Board shall
replace it at the disposal of the State Government upon such terms and
conditions as may be mutually agreed upon.

33. Powers of the Board in case of certain defaults by owner of land in
industrial area.- (1) If the Board after holding a local enquiry is satisfied that
the owner or lessee of any land in an industrial area has failed to provide any
amenity in relation to such land which in the opinion of the Board ought to be
provided or to carry out any development of the land for which permiss ion has
been obtained under this Act, the Board may serve upon the owner or lessee a
notice requiring him to provide the amenity or carry out the development
within such time as may be specified in the notice.
(2) If any such amenity is not provided or any su ch development is not
carried out within the time specified in the notice, then the Board may itself
provide the amenity or carry out the development or have it provided or carried

out through such agency and at the expense of the owner or lessee of the la nd
as it deems fit:
Provided that before taking any action under this sub -section, the Board
shall afford a reasonable opportunity to the owner or lessee of the land to show
cause as to why such action should not be taken.

34. Penalty for construction or us e of land and buildings contrary to
terms of holding.- (1) Any person who undertakes or carries out construction
of or alterations to any building in an industrial area or industrial estate
contrary to the terms under which he holds such building or land u nder this
Act shall, on conviction, be punished with fine which may extend to five
thousand rupees.
(2) Any person who uses any land or building in an industrial area or
industrial estate contrary to the terms under which he holds such land or
building under this Act or in contravention of the provisions of any regulations
made in this behalf shall, on conviction, be punished with fine which may
extend to three thousand rupees.

1[34A. Demolition or alteration of unauthorised construction or
alteration.- (1) If any person constructs or alters any building or commences
or carries on such construction or alteration in contravention of the Act or
rules made thereunder or of any regulation or condition subject to which
permission has been given for such constructio n or alteration, the Executive
Member may, whether or not the offender be prosecuted under this Act, by
notice,-
(a) require the offender to show sufficient cause by a written statement
signed by him and sent to the Executive Member on or before such date as may
be specified in the notice why such construction or alteration should not be
demolished or altered ; or
(b) require the offender to appear before the Executive Member either
personally or by a duly authorised agent on such date and at such time and
place as may be specified in the notice and show cause as aforesaid.
(2) If any person on whom such notice is served fails to show sufficient
cause to the satisfaction of the Executive Member why the construction or
alteration should not be so demolished or altered, the Executive Member may
pass an order directing such demolition or alteration by such period not
exceeding two months as may be specified in the order.
(3) If the person against whom an order for demolition or alteration is
made under sub -section (2) fails t o comply with the said order, the Executive

Member may cause such demolition or alteration to be made and may order
that the expenses incurred therefor shall be recovereble from the person
concerned as arrears of land revenue.
(4) No order to recover the expe nses incurred for demolition or alteration
as arrears of land revenue shall be passed under sub -section (3) unless the
person concerned is required by notice to show cause why the expenses should
not be so recovered and is given an opportunity of being heard.
(5) Any person aggrieved by an order under sub -section (2) may within
thirty days of the said order appeal to the Board, which, after hearing the
parties to the appeal may either allow or dismiss the appeal or vary any part of
the said order.
(6) Any person aggrieved by the order passed under sub -section (3), may
institute a suit within three months of the said order, as regards the quantum
of the amount ordered to be recovered as expenses. The time required for
obtaining the copy of the order shall be excluded while computing the said
period of three months.
(7) No Court shall entertain such suit unless the plaintiff has produced a
receipt for having paid or deposited the entire amount to be recovered
according to the order passed under sub-section (3). Subject to the result of the
suit the order passed under sub-section (3) shall be final.
(8) A copy of the order under sub -section (3) or a copy of the judgement
or both, as the case may be, shall be forwarded to the Deputy Commissioner
having jurisdiction, who shall the reupon proceed to recover the amount from
the person concerned as if it were an arrears of land revenue.]1
1. Section 34A inserted by Act 27 of 1978 w.e.f. 18.10.1978

1[34B. Resumption of the possession of premises including the
residential tenements on br each of terms and conditions of lease or
holding without authority. - (1) Where the Board is of the opinion that an
allottee of any premises or part thereof or residential tenement in an industrial
area or industrial estate has violated any of the terms or conditions of
allotment or holds it without any authority it may, without prejudice to section
25 give notice to such allottee and Banks or Financial Institutions, in whose
favour the Board has permitted the mortgage or leasehold rights of the
premises, or residential tenement specifying the breaches of the terms
andconditions of the allotment calling upon the allottee to remedy such
breaches within a time stipulated in the notice.
(2) If the allottee fails to remedy the breaches within the time so
stipulated, the Board shall serve a notice upon the allottee under intimation to
such Bank or Financial Institutions 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 him an opportunity of being heard, the Board may pass such orders, as
it deems fit.
(4) Where the Board passes an order under sub -section (3), for resuming
possession of the premises or part thereof or 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 authorised in this
behalf within the date specified in the notice.
(5) If any allottee refuses to surrender or deliver the possession of the
premises or part thereof or residential tenement within the time specified in the
notice, the Board or any officer authorised by it in this behalf may resume the
possession of the premises or part thereof or residential tenement free from all
encumbrances and for that purpose may use force as may be necessary".]1
1. Section 34B inserted by Act 19 of 2000 w.e.f. 25.5.2000

35. Powers of entry.- Any officer of the State Government, any member of
the Board and any person either generally or specially authorised by the Board
in this behalf, may enter into or upon any land or building with or without
assistants or workmen for the purpose of,-
(a) making any inspection, survey, measurement, valuation or enquiry;
(b) inspecting and measuring works under construction, and
(c) doing any other things necessary for the efficient administration of
this Act:
Provided that no such entry shall be made except between the hours of
sunrise and sunset and without giving reasonable notice to the occupier, or if
there be no occupier, to the owner of the land or building.

36. Recovery of sums due to the Board as arrears of land revenue. - All
sums payable by any person to the Board or recoverable by it by or und er this
Act and all charges or expenses incurred in connection therewith shall, without
prejudice to any other mode of recovery, be recoverable, as an arrear of land
revenue on the application of the Board.

37. Withdrawal of area or estate or part thereof. - Where the State
Government is satisfied that in respect of any industrial area or any part
thereof, the purpose for which the Board was established under this Act has
been substantially achieved so as to render the continued existence of such
area or part thereof under the Board unnecessary, the State Government may,

by notification, declare that such industrial area, or part thereof, has been
removed from the jurisdiction of the Board. The State Government may also
make such other incidental arrangements f or the administration of such area
or part thereof as the circumstances necessitate.

38. Authority for prosecution. - Unless otherwise expressly provided, no
court shall take cognizance of any offence relating to property belonging to, or
vested by or under this Act in the Board, punishable under this Act, except on
the complaint of, or upon information received from, the Board or some person
authorised by the Board by general or special order in this behalf.

39. Penalty for obstruction. - Any person who obstruct s the entry of a
person authorised under section 35 to enter into or upon any land or building
or molests such person after such entry or who obstructs the lawful exercise by
him of any power conferred by or under this Act shall, on conviction, be
punished 1[with penalty which may extend to ten thousand rupees]1

1. Substituted by Act 61 of 2025 w.e.f. ………………

40. Power to make rules. - (1) The State Government, after previous
publication, may, by notification, make rules to carry out the purposes of this
Act.
(2) In particular and without prejudice to the generality of the foregoing
powers, such rules may provide for all or any of the following matters, namely:-
(a) the compensatory allowance of members of the Board under section
7;
(b) the conditions subject to which th e Board may borrow under section
20;
(c) the form and manner of preparing the annual financial statement and
the annual programme of work under section 22;
(d) the manner and form of maintaining accounts and the form and
manner of annual report under section 24;
(e) the delegation of powers of Government under section 31;
(f) the fees which may be charged by the Board;
(g) any other matter which has to be or may be prescribed by rules.

41. Power to make regulations. - (1) The Board, may, with the previous
approval of the Sta te Government, by notification make regulations consistent
with this Act and the rules made thereunder, to carry out the purposes of this
Act.

(2) In particular and without prejudice to the generality of the foregoing
power, such regulations may provide for,-
(a) the time and place of meeting of the Board and the procedure to be
followed in regard to the transaction of business at such meetings
under section 8;
(b) the terms and conditions under which the Board may dispose of land:
(c) any other matter which has to be, or may be, provided by regulations.

42. Rules and regulations to be laid before State Legislature. - Every
rule and every regulation made under this Act, shall be laid as soon as may be
after it is made,

Excerpt shown. Open the full act in Lexace.

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