The Kerala Micro Small and Medium Enterprises Facilitation Act 2019(16 of 2019)

No. 21498/Leg.C3/2019/Law. 
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GOVERNMENTOFKERALA 
Law (Legislation-c) Department 
NOTIFICATION 
Dated, Thiruvananthapuram, 7th December, 20 I 9 
2P' Vrischikam. 1195 
I 6th Agrahayana, I 94 I. 
In pursuance of clause (3) of Article 348 of the Constitution of India, the Governor of 
Kerala is pleased to authorise the publication in the Gazette of the following translation in English 
language of the Kerala Micro Small and Medium Enterprises Facilitation Act, 2019 (16 of2019) . 
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This is a digitally signed .Gazette. 
Authenticity may b~ _Y:¢tjfied: through https://compose.kerala.gov.in/ 
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By order of the Governor, 
ARAVINTHA BABU, P. K., 
Eaw Secretary. 
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· · [Translation in English of "[email protected] cru1dM1121-@~0Aca1s-~samnmo OJjOJCTU3<ID 
<TUD3nJffi6ID1uO CTU~(f)Qll2l3c96>cOO ~d<J'' published under the authority of the Governor.] 
ACT 16 OF 2019 
THE KERALA MilCRO SMALL AND MEDIUM ENTERPRISES FACILITATION ACT, 2019 
An Act .. to ;rovij for exemption from certain approvals and inspections required for the 
establish,ent and operation of micro small and medium enterprises in the State and 
matters connected therewith and incidental thereto. 
P ·· bl I w . . ·d. . ffi . fr . . • ream e,- HEREAS, it is expe tent to give e ect to exemption om certam approva s 
and inspections re!uired for establishment and operation of micro small and medium enterprises 
in the State and mdtters connected therewith and incidental thereto; 
BE it enactL in the Seventieth Year of the Republic of India, as follows:-
!. Short titll and commencement. ----(I) This Act may be called the Kerala Micro Small and 
Medium EnterprisJs Facilitation Act, 2019. 
I . (2) It shall come .. mto .for9e .at once. 
2. DefinitiLs.-In this Act: unless the context otherwise requires,-
( a) "Alknowledgement Certificate" means the Acknowledgement Certificate issued 
under sub-section (3) of section 5; 
(b) "Appellate Authority" means the Appellate Authority constituted under sub-section 
(1) of section 12; 
(c) "approval" means licenses, permissions, approvals, clearances, registration, 
consents, no objechon certificate and the like, required under any State law in connection with the 
establishment or operation of micro small and medium enterprise in the State; · 
( d) "~mpeteni Authority" means any department or agency of the Government, 
statutory body, O:orporation owned by State, Local Self Government Institutions, Urban 
Development AutHorities, or any other Authority or Agency constituted or established by or under 
any State law or uhder the administrative control of the Government, which is entrusted with the 
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verified through https://compose.kerala.gov.in/ 
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powers or responsibilities to grant or issue approvalJor establishment or operation of enterprises 
in the State; 
( e) "District Board" means the District Board constituted under section 4 of the Kerala 
Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 
1999 (5of2000); ' 
(f) "enterprise; ; riieans micro small or medium enterprises; 
(g) "Government" means the Government of Kerala; 
(h) "micro, small or medium enterprises" means the micro, small or medium 
enterprises, as defined in the Micro Small and Medium Enterprises Development Act,2006 
(Central Act 27 of 2006) 
(i) "nodali. ~gen~y; ' 111~ans nodal agency referred to in section 3; 
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(j) "notification" means a notification published in th.e Official Gazette of the 
Government of Kerala. 
(k) "prescribed" ~eans prescribed by rules made under this Act; 
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(1) "State" means the State of Kerala; 
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(m) "State Board" means the State Board constituted under section 3 of the Kerala 
Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 
1999 (5 of2000). 
3. Nodal Agency.- The District Board constituted under section 4 of the Kerala Industrial 
Single Window Cleafance Boards and Industrial Township Area Development Act, shall be the 
nodal agency for the purpose of this Act. 
4. Powers and functions of nodal Agency. -Subject to the superintendence, direction and 
control of the Goveflp,nent, • ~he powers and functions of the nodal agency shall be as follows, 
namely:-
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(a) to assist and facilitate the establishment of enterprises in the State; 
(b) to m~in~in the record of self certification and Acknowledgement Certificate 
received under sub-section (3) of section 5; 
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Authenticity may.lie_yt,i\fled 'through https ://compose .kerala.gov.in/ 
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( c) the overnment may, assign such other powers and functions to the. nodal Agency 
as it may deem fir for giving effect to the provisions of this Act. 
5. Filing of Se/f Certification.-{I) Any person who intends to start an enterprise other than 
those not includdd as 'Red Category' by the Kerala State Pollution Control Board may, furnish 
before the nodal rgency a Self Certification to start such an enterprise in such form and in such 
manner, as may tie prescribed. 
(2) If any person has filed any application before the competent authority to obtain all 
or any of the apnrovals as defined in clause ( c) of section 2, before the commencement of this 
Act, such person may also opt to furnish self certification of intend to start an enterprise under 
sub-section ( 1) ; 
(3) On receipt of a self certification completed in all respects, the nodal Agency shall, 
forthwith, issue ~n Acknowledgment Certificate, in the prescribed form, to the person who 
furnished the selfi certification under sub-section ( 1 ). 
6. Effect of the Acknowledgement Certificate.-{!) An acknowledgment certificate issued 
under section 5 sfuall, for all purposes, have effect as if it is an approval as defined in clause ( c) of 
section 2, for a p~riod of three years from the date of its issuance and after the expiry of the said 
period of three yJars, such enterprise shall have to obtain required approvals as defined in clause 
( c) of section 2, -lvithin six months from the date of such expiry: 
Provided that the acknowledgement certificate shall not entitle a person to use a land 
contrary to the prpvisions contained in the Kerala Conservation of Paddy Land and Wetland Act, 
2008 (28 of 2008~ and it shalLalso not entitle a person to use the land in deviation to the land use 
specified in the di.aster plan notified under the Kerala Town and Country Planning Act, 2016 (9 
of 2016), wherevbr such plan is in force. 
(2) during the period of three years specified in sub-section (I), no competent 
authority shall un~ertake any inspection for the purpose of, or in connection with, any approval as 
defined in clause ( c) of section 2. 
7. Grant 01Exemption.-Where the Government or any authority under it is empowered to 
exempt any ente1:i_prise from any approval or inspection or any provisions relating thereto under 
any ~~ntral Act, fhe Government or a~y such authority, as the case may be, .shall, subject to ~he 
prov1s1ons of such Central Act, exercise such powers to grant such exemption to an enterpnse 
established in thel State for a period of three years from the date of issue of the acknowledgement 
certificate under section 5. 
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Authenticity may b{veri!tbd through https://compose.kerala.gov.in/ 
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8, ' Offences 'i:md Penalties, 4 l) If the nodal agency finds , that any enterprise, contravened 
the conditions or undertaking in the' self certification · given to the nodal agency such enterprise 
shall be punishable with fine for an . amount not exceeding rupees five lakh after considering 
submission,. if any; submitted . by' such ·enterprise; 
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, . ·· (2}'Where an offence under this Act is cominitied by an enterprise, the enterprise ·as 
well as every person in charge of, and responsible to, the enterprise for· the conduct of its business 
at the time of commission of the offence, shall be deemed to be guilty of the offence and liable to 
be plinished under this . section: . . 
(3}Notwithstahdmg anything contained in sub-section (1), where an offence under this 
Act has been committed with the consent or connivance of, or that commission of the offence is 
attributable to any neglect on the part of proprietor, managing partner, any director, manager, 
secretary or any other officer, such proprietor, managing partner, director, manager , or any other 
officer shall also be deemed to be gtiilty of that offence and shall be liable to be punished under 
this section. 
Explanation:-For the purpose of this section,-
{a) t~l1terprise t:treans any 'body corpoi:a:te and i:ndt:rtles -a ·firm or other association -of 
individuals; and . 
(b) director in relation to a firm, means a partner in the firm. 
· 9. Protection of a9tion taken in good faith.-No suit, prosecution or other legal proceedings 
shall lie against the Government or nodal agency or Competent Authority or Appellate Authority 
or any employee ·of the Government, for anything which, in good faith, is done or intended to be 
done under this Act or any rules made thereunder . 
· 10. Overriding effect of this Act on other laws.---(1) The provisions of this Act shall have 
overriding effect, notwithstanding anything inconsistent therewi.th contained in· any other law, for 
the time being in force. 
{2) fu particular and without prejudice to the generality of the foregoing provisions of 
this Act, such · provisions shall have effect notwithstanding anything inconsistent therewith 
contained in· the followin g enactments and the provisions of these enactment s shall be read as 
amended in conformity with the provisions of this Act, namely:-
1. The Kerala Panchayat Raj Act, 1994 (13of1994) 
2. The Kerala Municipality Act, 1994 (20of 1994) 
3. The Kerala Shops and Commercial Establishments Act, 1960 (34 of 1960) 
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4. The Kerala Lift and Escalators Act, 2013 (18 of 2013) 
5. Ttavancore - Cochin Public Health Act, 1955 (XVI of 1955) 
6. Mkdras Public Health Act, 1939 (3 of 1939) 
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11. Savin)s. -Subject to the provisions of section 10, nothing in this Act shall be construed 
as exempting any ~nterprise from the application of the provisions of any law for the time being 
in force, or any rJgulatory measures and standards prescribed thereunder, except to the extent 
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expressly provided in this Act. 
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12. Appellate Authority and powers of the Appellate Authority.-(1) The Appellate 
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Authority under this Act shall be the State Board constituted under section 3 of the Kerala 
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Industrial Single Window Clearance Boards and Industrial Township Area Development Act, 
1999( 5 of 2000), irho shall exercise the powers of the Appellate Authority under this Act; 
(2) jy person aggrieved by the decision of the nodal agency may, within thirty days 
from the date of shch decision, file an appeal before the Appellate Authority, in such manner as 
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may be prescribed. 
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(3) TJe Appellate Authority after receipt of appeal may call for additional details or 
documents as it niay considered necessary and on production of such details or documents and 
after giving an oJportunity of being heard to the aggrieved person and the nodal agency, the 
Appellate Authority shall dispose of such appeal within a period of thirty days from the date of 
filing of such app~al and the decision of the Appellate Authority on such appeal shall be final. 
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( 4) Notwithstanding anything contained in any other law for the time being in force, 
the Appellate Autttority may, either suo-motu or on a reference, examine any order passed by the 
nodal agency and ~ass appropriate orders as it deems fit, and such orders shall be final. 
13. Powe~ to remove difficu/ties.--{1) If any difficulty arises in giving effect to the 
provisions of this Act, the Government may, by order published in the Gazette, make such 
provisions not inchnsistent with the provisions of this Act, as may appear to it, to be necessary 
and deemed fit, fot removing the difficulty: 
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Provided that no such order under this section shall be made after the expiry of a period of 
two years from thJ commencement of this Act. 
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Every order made under this section shall be laid, as soon as may be, after it is made, 
before the State L~gislature. 
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14. Power to make rules.-(1) The Government may, bya notification in the gazette, make 
rules either prospectively or retrospectively fot the purpose of carrying into effect the provisions 
of this Act; 
(2) Every role made under this Act shall be laid, as soon as may be after it is made, 
before the Legislative ~ssembly · while it is in session for a total period of fourteen days which 
may.be comprised in one session or in two successive sessions and if, before the expiry ofthe 
session in which it is so laid or the session immediately following, the LegislativeAssembly makes 
any modification in the rule or decides that the rule should not be made, the rule shall thereafter" 
have effect only in such modified form or be of no effect, as the case may be; so however, that any 
such modification-or annulment shall be without prejudice to the validity of anything previously 
done under that rule. 
PUBLISHED BY THE SUPERINTENDENT OF GOVERNMENT PRESS 
AT THE GOVERNMENT CENTRAL PRESS, THIRUV ANANTHAPURAM, 2019 
This is a digitally sigiled Gazette. 
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