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The Kerala MSME facilitation Act 2019(Amendment Act 32 of 2021)

Kerala · state statute
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© 
(3&3(b (TU(G)D( 
Government of Kerala 
2021 
Regn.No. KERBIL/20 12/45073 
dated 05-09-2012 with RN! 
Reg No. KL/TV(N)/634/202 1-2023 
Cth)(O Wfl) 0 
KERALA GAZETTE 
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EXTRAORDINARY 
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PUBLISHED BY AUTHORITY 
b2CJb)OThnJD0, 	 2021 mmomcb 15 
CU9i'o10 	 (OI - 	 . IJo 	 15th November 2021 
1197 m0i3o 30 	 mnho 	 3367 Vol. X 
	
Thiruvananthapuram, 	 30th Thutam 1197 
Monday 	 1943 D(TUfl&3o 24 
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S 	 11 
GOVERNMENT 0FKERALA: 
Law (Legislation-C) Department. . 
NOTIFICATION 
No. 13524/Leg. C3/2020/Law. 
	
	 Dated, Thiriivananthapzirain, 14th Novembei 2021 
29th Thu/am, 1197 
23rd Karthika, 1943. 
In pursuance of clause (3) of Article 348 of the Constitution of India, the Governor of 
Kerala is pleased to authorize the publication in the Gazette of the following translation in 
English language of the Kerala Micro Small and Medium Erterprises Facilitation 
(Amendment) Act, 2021. (32 of 2021) 	 • • 	 • 
By order of the Governor, 
V. HARINAIR, 
Law Secretary 
• 
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• 	 S. 
12 
I 
[Translation in English of '2021 6ieJ aamgl 0-0jC6&M-G) i  ci&1s SYTho 
mpi(roovmoojmnuñ 	 W3X (@w1) 	 published under the 
authority of the Governor] 
ACT 32 OF2021 
THE KERALA MICRO SMALL AND MEDIUM ENTERPRISES FACILITATION 
(AMENDMENT) ACT, 2021 
An Act to amend the Kei ala Micto Small and Medium, Enteipi isec Facilitation Act 20/9 
Prea,nb/e.—WHEREAs, it is expedient to amend the Kerala Micro Small and Medium 
Enterprises Facilitation Act, 2019 (16 of 2019) for the purposes hereinatth appearing; 
BE it enacted in the Seventy-second Year of the RepubliL of India as follows - 
I Shoit title and commencement - (I) This Act may be called the Kerala Micro Small 
and Medium Enterprises Facilitation (Amendment) Act, 2021. 
(2) It shall be deemed to have come into forcen the 51h day o October, 2020. 
2 Amendment of long title —In the long title of the Kerala Micro 1  Small and Medium 
Enterprises Facilitation Act 2019 (16 of 2019) (hereinafter ieferred to a the principal Act), 
after the words "micro small and medium enterprises", the words 'and to grant approval to 
other enterprises in a time bound manner shall be inserted 
3 Amendment ofpi eainble —In the preamble of the principal Act, after the words "micro 
small and medium enterprises"; the words "and to grant approval to other enterprises in a time 
bound manner' shall be inserted 
4 Amendment of section 1 —In sub-section (1) of section 1 of the principal Act, after the 
words • "Micro Small and Medium Enterprises", the words "and Other Enterprises" shall be 
inserted. 
'1 
5. Amendment of section 2—In the principal Act, in section 2 ç— 
in clause (c), after the words "micro small and medium enterprises" the words 
and other enterprises" shall be inserted, 
after clause (c) the following clauses shall be inserted, nanely - 
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13 
"(ca) "Bureau" means 'Investment Facilitation Bureau' contituted under 
section 6A; 
. 	 (cb) "checklist" means listof documents, as may be prescribed, to be furnished 
by other enterprises along with.composite application;";. 
(iii) after clause(j), the following clause shall be inserted, namely:—. 
"(ja) "other enterprise" means anenterprise as defined in clause (da) of section 
2 of the Kerala Industrial Single Window Clearance Boards and Industrial Township Area 
Development Act, 1999(5 of 2000) and shall not include the Micro Small and Medium 
Enterprises;". 	 : 
6. Insertion of new sections 6.4, 6B, 6C and 6D.—ln the principal Act, after section 6, the 
following sections shall be inserted, namely:— 
"6A. constitution of Investment FOcilitalion Bureau.—( 1) For the purpose of 
disposal of applications for.the issue of various approvals required under the State enactments 
for setting up other enterprises in the, °Siàte in a tirrie bound manner, the Government may, by 
notification; constitute a Bureau to be called 'Investment Facilitation Bureau' consistingof the 
following members, namely:— 
(a) • Secretary: in charge of Investment Promotion in the Industries 
Department; 	 • 	 • 	 •. 
(b) Director General, Fire and Rescue Services; 
Managing Director, Kerala State Industrial Development Corporation; 
Chief Town Planner; • • 
S 	 • • 
	 ( e) Labour Commissioner; 	 • 	 • 
(0 Director, Factories and Boilers Department; 	 • 
• 	 • 	 • 	 (g) Chief Electrical Inspector; 	 • 
(h) Additional Director, Health Services, 
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(.i) DirectOr, Urbaii Affairs Directorate; 
(j) Director, Panchayat Directorate; 
(k) Industries andComrnerce Director; 
(1) Secietaiy or Director of the Department as may e nominated by the 
Chairman of the Bureau, ashe deems fit.". 
The Bureau shall be a body corporate by the name aforesaid having 
perpetual succession and common seal. 
Secretary in charge of Investment promotion in the Depirtment of Industries 
shall be the Chairman, and the Managing Director of the Kerala State Industrial Deve1opmnt 
Corporation shall - be the Convenor and Chief Executive Officer of the Bueau. 
Bureau shall meet at such time and place as fixed b the Chairman, for 
performing the functions of the Bureau under the Act and shall follow such rules of procedure 
as may be prescribed in regard to its transaction of business. 
6B. Pou'ers and functions of Bureau.—(1) Notwithstanding at ything contained in 
any other law for the tirne.being in force, without prejudice to the powers cenferred on the State 
Board and District Board constituted under the Kerala Industrial Single Window Clearance 
Boards and Industrial Township Area Development Act, 1999 (5 of 2000), any person who• 
intends to set up other enterprises, shall submit a composite application to the Chief Executive 
Officer through online portal fr the issuance of approval as required under State enactrnents 
for setting up such enterprises in such form along with such fees and such declaration, as may 
be prescribed 
(2) The Bureau shall after complying the procedure prescribd in this behalf and 
within seven working clays after the receipt of a composite application whih is complete in all 
respect, take a decision as,— 	 • 
• 	 (a) to issue approval on such conditions, as itmay think fit; or. 
(b) to call for more details of documents, it deemed necessary for taking 
action on the application 
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15 
. 
	
	 (3) The decision of the Bureau shall be informed to the applicant and to the 
competent authority concerned, by the Chief Executive Officer and the said decision shall be 
deemed to be given by the competent authority concerned and such decision shall be binding 
on the authorities. 
4 	 (4) An approval once granted shall have effect for a period of five years from 
the date of its issuance and within one year from the date of such approval, every 'other 
enterprise' shall submit a certificate in, such form as may be prescribed, to the Chief Executive 
Officer to the effect that, all the provisions of the Act and rules concerned are complied with 
and in such cases where the renewal of approval is requited, an applieation for renewal of such 
approval shall be submitted to the Chief Executive Officer through onJine along with required 
documents, before three months from the date on which such approval shall cease to operate, 
and thereupon it shall be renewed in such manner, as may be prescribed. 
During the period of one year as specified in sub-section (4),. competent 
authority shall not undertake any inspection for the purpose of, or in connection with any 
approval as defined in clause (c) of section (2): 
Provided that a competent authority may undertake inspection to verify that, the 
provisions of the Act and rules as specified in the certificate submitted to the Chief Executive 
Officer are complied with. 
If the, other enterprise fails to comply with the provisions of the Act and 
rules and also to submit a certificate to the effect that the provisions of Act and rules are 
complied within one year as specified under sub-section (4), the Bureau may, on request of the 
applicant and on sufficient reasons, grant a reasonable time not exceeding one year for 
compliance, taking into account the nature of the other enterprise and reasons for 
non-compliance. If the other enterprise fails to comply with the provisions of Acts and rules 
even after such extended period, the Bureau may  revoke the approval,, after giving notice to the 
applicant and after considering the submission if any, from the applicant. 
The application to be submitted to the Bureau and procedures to be followed 
by the Bureau for the issuance of the approval shall be, in such manner as may be prescribed. 
The appr6valshall not entitle a persontouse any land contrary to the 
provisions contained in the Kerala Conservation of Paddy Land and Wetland Act, 2008 
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16 
(28 of . 2008) and rules made thereunder and it shall not entitle a person to use the land in 
deviation to the land use specified in the Master Plan notified under he Kerala Town and 
Country Planning Act, 2016(9 of 2016). 	 0 
(9) Approval once granted by the Bureau may be 'used as a valid document for 
any purpose includirg aVailing of financial assistance from a Bank or other financial institution. 
6C. Application jbr the grant of Approva/.—(1) Any person who intends to set up 
other enterpiise other than those included as Red Category' by the State Pollution Contiol 
Board may submit a composite application in such form as may be prescribed, through.'online 
portal along with supporting. documents and check list and such fees and declaration, as may 
be prescribed to the Chief Executive Officer 'of the Bureau. 
The convenor of the State Board constituted under he Kerala Industrial 
Single Window Clearance Boards and Industrial Township Area Development Act, 1999 (5 of 
2000) shall act as the Chief Executive Officer of the Bureau, to co-ordinate the activities of 
the Bureau and to scrutinize .the applications received from the eiiterpries under section 6C 
and for the performance of such functions that may be assigned to himky the Bureau, from 
time to time The officers and staff of the Kerala Investment Promotion and Facilitation Cell 
functioning under the Kerala State IndUstral Development Corporation shall' provide all 
necessary assistance,to him.  
Explanation - The Kerala Investment Promotion and Facilitation Cell' means the Cell 
constituted as per G.O (Ms.) No. 100/2017/md. 'dated 12th October, 2017. 
,The Chief Executive Officer shall, diséharge the following powers and 
functions in addition to the general powers conferred 'under sub-section ~(2) , namely:— 
to act as a single point contact for 'other enterprises' that require approval 
from the Bureau;  
(b) to assist the applicants for completing the composite applications; 
to scrutinize the applications with the help of check ?ist and to Verify the 
documents submitted along with the application; 	 . 	 ,'• 	 - 
after completing the scrutiny of the applications,— 
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accept applications complete in all respects;. 
require additional information regarding the incomplete application in 
accordance with the provisions of the Act and rules made thereunder; 
(e) to keep the minutes of the meeting of the Bureau; 
(0 to inform the decision of the Bureau to the applicant and the competent 
authorities concerned. 
6D. Power of the Bureau to revoke the approva/.—Notwithstanding anything 
contained in this Act, if the competent authority concerned, has found that the other enterprise 
has violated any provisions of the Act or rules and the details furnished in the application for 
the grant of approval is false, the competent authority concerned may recommend to the Bureau 
for revocation of the approval and thereupon Bureau may revoke the approval after giving a 
notice to such enterprise and after considering the submission if any, from the enterprise and 
j• impose on such enterprise a penalty as referred in section 8.". 	 . 
7. Amendment of section 12.—In the principal Act, in section 12,-'— 
in sub-section (2), for the words "nodal agency" the words "nodal agency or 
Bureau" shall be substituted; 
in sub-section (3), for the words "nodal agency" the words "nodal agency or 
Bureau" shall be substituted; 
in sub-section (4), for the words "nodal agency" the words "nodal agency or 
Bureau, as the case may be," shall be substituted. 
- 	 8. Repeal and saving.—(l)The Kerala Micro Small and Medium Enterprises Facilitation 
(Amendment) Ordinance, 2021 (136 of 2021) is hereby repealed. 
4 	 •• 
(2) Notwithstanding such repeal, anything done or deemed to have been done or any 
action taken or deemed to have been taken under the principal Act as amended by the said 
- 	 Ordinance shall be deemed to have been done or taken under the principal Act as amended by 
.thisAct. 	 . 
PUBLISHED BY THE SUPERINTENDENT OF GOVERNMENT PRESSES 
AT THE GOVERNMENT CENTRAL PRESS, THIRUVANANTHAPURAM, 202 	 DigtaUy signed by Salirn A 
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• 	 Dateo21 .11.1507:55:01 +05:30 
5/3254/202) 

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