The KERALA INDUSTRIAL INFRASTRUCTURE DEVELOPMENT ACT, 1993

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THE KERALA INDUSTRIAL INFRASTRUCTURE DEVELOPMENT ACT, 1993
(Act 3 of 1993)
CONTENTS
Preamble.
Sections:
CHAPTER I
PRELIMINARY
1. Short title and Commencement.
2. Definitions.
CHAPTER II
DECLARA TION OF INDUSTRIAL AREA
3. Declaration of industrial area.
CHAPTER III
ESTABLISHMENT AND CONSTITUTION OF THE CORPORATION
4. Establishment and incorporation.
5. Constitution of the Corporation.
6. Appointment and term of Office of Managing Director and conditions of service of 
    nominated Directors.
7. Meetings of the Corporation.
8. Appointment of officers and employees.
CHAPTER IV
FUNCTIONS AND POWERS OF THE CORPORATION
9. Functions.
10. Powers of the Corporation.
11. Direction by Government.
CHAPTER V
FINANCE, ACCOUNTS AND AUDIT
12. Application of the assets of the Corporation.
13. Funds of the Corporation.
14 Grants, Subventions, loans and advances to Corporation.
15. Power of Corporation to borrow.
16. Deposits.
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17. Reserves and other funds.
18. Expenditure from funds.
19. Budget and programme of work.
20. Accounts and audit.
CHAPTER VI
EVICTION FROM CORPORA TION PREMISES
21. Definitions.
22. Power to evict persons from Corporation Premises.
23. Appeal.
24. Applicability of the Kerala Buildings (Lease and Rent Control) Act, 1965 (2 of  
1965).
CHAPTER VII
ACQUISITION AND DISPOSAL OF LAND
25. Compulsory acquisition of land for Corporation.
26. Transfer of Government lands.
CHAPTER VIII
SUPPLEMENTARY AND MISCELLANEOUS PROVISIONS
27. Power of the Corporation in case of default by owners of lands.
28. Order of demolition of building.
29. Power to stop building operations.
30. Penalty for construction or use of land and buildings contrary to terms of holding.
31. Power to lay gas pipelines etc.
32. Power of entry.
33. Overriding powers of Government to issue direction to local authorities.
34. Liability of lessee to pay taxes etc.
35. Recovery of sums due to Corporation as arrears of land revenue.
36. Service of notice etc.
37. Public notices.
38. Furnishing of returns etc.
39. Withdrawal of area or estate or part thereof.
40. Default in performance of duty.
41. Dissolution of Corporation.
42. Authority for prosecution.
43. Compounding of offences.
44. Offences by Companies.
45. Penalty for obstruction of entry etc.
46. Penalty for obstructing persons from performing duty under contract.
47. Penalty for removing marks etc.
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48. Penalty for obstructing exercise of powers under Chapter VI.
48A. Power of Officers to impose fine.
49. Powers to make rules.
50. Power to make regulations.
51. Protection of action taken in good faith.
52. Notice of suit against Corporation.
53. Removal of difficulties.
54. Repeal and Saving.
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ACT 3 OF 1993
THE KERALA INDUSTRIAL INFRASTRUCTURE DEVELOPMENT ACT, 1993*
AN
ACT
An Act to provide for the establishment of Industrial areas and for the organisation of
Industrial Growth Centres in the State of Kerala and for setting up infrastructure
facilities for industries and for that purpose to constitute an Industrial Infrastructure
Development Corporation and for matters connected therewith.
Preamble.—WHEREAS it is expedient to provide for the establishment of Industrial
areas and for the organisation of Industrial Growth Centres in the State of Kerala and for
setting up infrastructure facilities for industries and for that purpose to constitute an Industrial
Infrastructure Development Corporation and for matters connected therewith.
BE it enacted in the Forty-fourth Year of the Republic of India as follows:—
CHAPTER I
PRELIMINARY
1.  Short title and commencement .—(1) This Act may be called the Kerala Industrial
Infrastructure Development Act, 1993.
(2) It shall be deemed to have come into force on the 1st day of November, 1992.
2. Definitions.— In this Act, unless the context otherwise requires,—
(a) “Amenity” includes road, supply of water or electricity, street lighting, drainage,
sewerage and such other convenience as the Government may, by notification in the Gazette,
specify to be an amenity for the purposes of this Act;
(b) “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;
(c) “Collector”  means  the  Collector  of the district  concerned, and includes  any
officer authorised by the Government to perform the functions of a Collector under this Act;
(d)  “Corporation”  means  the  Kerala  Industrial  Infrastructure  Development
Corporation established under section 4 of the Act;
(e)  “Development”  with  its  grammatical  variations,  means  the  carrying  out  of
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, but does not
include mining operations, and the term “to develop” shall be construed accordingly;
* Received  the assent of the Governor on the 26 th day of February, 1993 and published in the Kerala Gazette
Extraordinary No 215 dated 27th February. 1993.
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(f) “Government” means the Government of Kerala;
(g)  “Industrial  Area”  means  any  area  declared  to  be  an  industrial  area  by  the
Government, by notification in the Gazette, which is to be developed and where industries
are to be accommodated and includes an industrial estate and any area containing mineral
deposits;
(h)  “Industrial  estate”  means  any  site  selected  by  the  Government,  where  the
Corporation builds factories and other buildings and makes them available for any industries
or class of industries;
(i)  “Member”  means  a  member  of  the  Corporation  specified  in  section  5  and
includes the Chairman;
(j) “Premises” means any land, building or part of any building and includes:
(i) the gardens, grounds and outhouses, if any, appertaining to such building or
part of the building; and
(ii) any fittings affixed to such buildings or part of a building for the more
beneficial enjoyment thereof;
(k) “Prescribed” means prescribed by rules made under this Act;
(l) “Regulation” means the regulation made under this Act;
(m) “State” means the State of Kerala;
(n)  the  expression  “land”  and  the  expression  “person  interested”  will  have  the
meaning  respectively  assigned  to  them  in  section  3  of  the  Land  Acquisition  Act,  1894
(Central Act 1 of 1894).
CHAPTER II
DECLARA TION OF INDUSTRIAL AREA
3.  Declaration of industrial area .— (1) The Government may, by notification in the
Gazette, declare any area in the State to be an industrial area for the purpose of this Act.
(2) Every such notification shall define the limits of the area to which it relates.
(3) The Government may, at any time, by notification in the Gazette 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 CORPORATION
4. Establishment and incorporation.—(1) For the purposes of securing and assisting in
the rapid and orderly establishment and organisation of industries in industrial areas and
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industrial  estates  in  the  State  and  for  the  purpose  of  establishing  growth  centres  and
infrastructure  facilities  in  connection  with  the  establishment  and  organisation  of  such
industries, there shall be established by the Government, by notification in the Gazette, a
Corporation by the name the Kerala Industrial Infrastructure Development Corporation.
(2) The Corporation shall be a body corporate with perpetual succession and a
common seal and shall, by the said name, sue and be sued and shall be competent to acquire,
hold and dispose of property both movable and immovable and to enter into contracts and to
do all things necessary and expedient for the purposes of this Act.
5.  Constitution of the Corporation .— (1) The Corporation shall consist of not more
than 15 members, namely:—
(i) Chief Secretary to Government .. Chairman
(ii) The Secretary to Government, Industries
      Department .. Director
(iii) Secretary to Government, Finance
       Department .. Director
(iv) Chairman, Kerala State Electricity Board .. Director
(v) Director of Industries and Commerce of the State .. Director
(vi) Managing Director, Kerala State Industrial Development
        Corporation Ltd.                                                      .. Director
(vii) Managing Director, Kerala Financial Corporation    .. Director
(viii) Chief Town Planner, Town Planning Department     .. Director
(ix) Chairman, Kerala State Pollution Control Board               .. Director
(x) Managing Director of the Corporation
      appointed under section 6                                                    .. Director
(xi) Labour Commissioner      .. Director
(2) The remaining Directors, shall be representatives of financing institutions and
professional bodies nominated by the Government for such term as may be prescribed.
6. Appointment and term of Office of Managing Director and conditions of service of
nominated Directors.— (1) The Managing Director of the Corporation shall be appointed by
the Government and shall have such qualifications as may be prescribed.
(2) The Managing Director of the Corporation shall hold office for such  term as the
Government may specify in this behalf.
(3) The Directors shall be entitled to draw such allowances as may be prescribed for
the purpose of attending the meetings of the Corporation or of any committee thereof or in
doing or for performing such work or functions of the Corporation which may be specifically
entrusted to them by the Corporation or by any committee thereof, as may be prescribed.
7. Meetings of the Corporation.— The Corporation 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.
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8. Appointment of officers and employees .— (1) The Corporation may appoint with the
approval  of  the  Government  such  number  of  Officers  and  employees  as  it  considers
necessary, to assist the Corporation in the discharge of its functions and duties under this Act
and the Managing Director appointed under section 6 shall be the Chief Executive of the
Corporation.
(2) The Officers and employees appointed under sub-section (1) shall be under the
administrative control of the Managing Director and he shall be the disciplinary authority to
impose any punishment as may be prescribed on such officers and employees.
(3) The  method  of appointment,  salary  and  allowances  and other  conditions  of
service of the officers and the employees appointed under sub-section (1) shall be such as
may be specified with the approval of the Government by the Corporation.
CHAPTER IV
FUNCTIONS AND POWERS OF THE CORPORATION
9. Functions.— The functions of the Corporation shall be—
(i) generally to promote and assist in the rapid and orderly establishment, growth
and development of industries in the state and
(ii) in particular and without prejudice to the generality of clause (i),
(a) to develop industrial areas selected by the Government for the purpose for
which it was selected and make them available for the undertakings to establish themselves;
(b) to establish, maintain, develop and manage industrial estates at places selected
by the Government;
(c) to identify appropriate industrial sites, acquire them and tie up the required
infrastructure facilities, like power, water, roads, communications, drainage and pollution
abatement  systems,  industrial  sheds  for  small  scale  units  and  wherever  required,  social
infrastructure like industrial housing and common amenity buildings for banks, post offices,
hospitals, fire stations and the like;
(d)  to  co-ordinate  with  other  government  departments  or  agencies  to  ensure
provision of good quality infrastructure facilities, within the shortest possible time;
(e) to allot the developed plots or sheds to entrepreneurs on terms and conditions
as may be determined by the Corporation;
(f) to upgrade the facilities of the existing industrial estates or industrial areas
transferred to the Corporation;
(g) to undertake schemes for providing the industrial units with such structures
and facilities as may be necessary for their orderly establishment, growth and development;
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(h) to procure land on behalf of medium or large scale industries outside the
industrial estates or industrial development areas by purchase, lease or exchange from any
person;
(i) to act as a single point contact for clearance required from different agencies
or departments;
(j) to promote, organise, sponsor or undertake schemes or works either by itself
or  jointly  with  other  corporate  bodies  or  institutions  or  with  the  Government  or  local
authorities or on an agency basis in furtherance of the purposes for which the Corporation is
established and all matters connected therewith;
(k) such other functions as are necessary in furtherance of the objects of the
Corporation.
10. Powers of the Corporation .—Subject to the provisions of this Act, the Corporation
shall have powers,—
(a)  to  acquire  and  hold  such  property  both  movable  and  immovable  as  the
Corporation may deem necessary for carrying out 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 Corporation;
(b) to purchase by agreement or to 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 and common facilities in industrial
estates and in industrial areas and construct and maintain or cause to be maintained, works,
buildings, amenities and common facilities therefor;
(d) to make available buildings on hire or sale to industrialists or persons intending
to start industrial undertakings;
(e)  to  construct  buildings  for  the  housing  of  the  employees  of  such  industrial
undertakings;
(f) to identify and develop potential growth centres;
(g) to provide social infrastructure like housing and common amenity buildings near
the industrial area;
(h) to allot factory sheds or such buildings or parts of buildings including residential
tenements to settle persons in the industrial estates established or industrial areas developed
by the Corporation;
(i) to modify or revise or cancel such allotments, including the right and power to
evict the allottees concerned for breach of any of the terms and conditions of their allotment;
(j) to recover all sums payable to the Corporation;
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(k) to evict any entrepreneur or person and resume the land, shed or building allotted
to him in the event of his not adhering to the terms and conditions under which the allotment
was made;
(l) to seek exemptions from the operation of any of the provisions of the laws for the
time being in force;
(m) to establish subsidiary companies  as may be required to develop industrial
infrastructure and subscribe to their share capital;
(n) such other powers as are necessary or incidental to the attainment of the objects
of the Corporation.
11.  Direction by Government .—The Government may from time to time issue to the
Corporation such general or special directions of policy as they deem necessary or expedient
for the purpose of carrying out the objects of this Act and the Corporation shall be bound to
follow and act upon such directions.
CHAPTER V
FINANCE, ACCOUNTS AND AUDIT
12. Application of the assets of the Corporation .—All property, funds and other assets
vested in the Corporation shall be held and applied by it, subject to the provisions of and for
the purposes of this Act.
13. Funds of the Corporation .—(1) The Corporation shall have and maintain its own
funds, to which shall be credited—
(a) all moneys received by the Corporation from the Government by way of
grant, subventions, loans, advances or otherwise;
(b) all fees, costs and charges received by the Corporation under this Act;
(c) all moneys received by the Corporation from the disposal of lands, buildings
and other properties, movable or immovable and from other transactions;
(d) all moneys received by the Corporation by way of rents and profits or in any
other manner or from any other source.
(2) The Corporation may keep in Government treasuries or with the State Bank of
India or any other bank approved by the Government in this behalf such sum of money out of
its fund as may be prescribed and any money in excess of the said sum shall be invested in
such manner as may be approved by the Government.
(3) Such account shall be operated upon by such officers of the Corporation as may
be specified in the regulations.
14. Grants, subventions, loans and advances to Corporation .— The Government may
make such grants, subventions, loans and advances to the Corporation as they may deem
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necessary for the performance of the functions of the Corporation under this Act and all
grants, subventions, loans and advances made shall be on such terms and conditions as the
Government may determine.
15.  Power of Corporation to borrow .— (1) The Corporation may, subject to such
conditions as may be prescribed in this behalf, borrow money required for carrying out the
purposes  of  this  Act  from  the  public  or  otherwise  or  from  any  Corporation  owned  or
controlled by the Central or State Governments or from any other financial institutions.
(2) All moneys borrowed under sub-section (1) may, if required, be guaranteed by
the Government as to the repayment of principal and the payment of interest at such rates and
on such conditions as the Government may determine at the time the moneys are borrowed.
Explanation.— The expression “to borrow money” with all its grammatical variations
and cognate expressions includes acceptance of deposits not being deposits accepted under
section 16, from the public for a specified period and payment of interest thereon to the
depositors at specified rates.
16. Deposits.— The Corporation may accept deposits on such condition as it deems fit
from persons, authorities or institutions to whom allotment or sale of land, buildings or sheds
is made or is likely to be made in furtherance of the object of this Act.
17. Reserves and other funds. — (1) The Corporation shall make provision for such
reserve and other specially denominated funds in such manner and to such extent as the
Government may, from time to time, direct.
(2) The management of the funds referred to in sub-section (1), the sums transferred
from time to time to the credit thereof and the application of money comprised therein, shall
be as determined by the Corporation.
(3) The funds referred to in sub-section (1) shall not, without the previous approval
of the Government, be utilised for any purpose other than that for which it was constituted.
18.  Expenditure from funds .— (1) The Corporation shall have the authority to spend
such sums as it thinks fit for the purposes of this Act from out of the funds of the Corporation
referred to in section 13.
(2) Without prejudice to the generality of the powers conferred by sub-section (1),
the Corporation may contribute such sums as it thinks fit towards expenditure incurred or to
be incurred by any local authority or statutory/public undertaking in the performance, 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 for the acquisition of land.
(3)  No  expenditure  other  than  capital  expenditure  shall  be  incurred  by  the
Corporation out of moneys borrowed or received by way of deposits.
19. Budget and programme of work .— (1) The Corporation shall, by such date in each
year as may be prescribed, prepare and submit to the Government for approval an annual
financial statement in such form and with details, as may be prescribed and the programme of
work for the succeeding financial year.
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(2) The annual financial statement shall show the estimated receipts and expenditure
during the succeeding financial year.
(3) The Corporation shall with the approval of the Government be competent to
make variations in the programme of work:
Provided  that  all  such  variations  and  reappropriations,  if  any,  out  of  the
sanctioned budget shall be brought to the notice of the Government by a supplementary
financial statement.
(4) A copy each of the annual financial statement and the programme of work and
the supplementary financial statement, if any, shall, on submission to the Government, be
placed as soon as may be, before the Legislative Assembly.
20. Accounts and audit .— (1) The Corporation shall maintain books of accounts and
other registers in relation to its business and transactions in such form and in such manner, as
may be prescribed.
(2) The accounts of the Corporation shall be audited by the Comptroller and Auditor
General of India.
(3) As soon as the accounts of the Corporation are audited, the Corporation shall
send a copy thereof together with the copy of the audit report to the Government.
(4) The Government shall cause the audited accounts of the Corporation together
with the audit report to be laid before the Legislative Assembly.
CHAPTER VI
EVICTION FROM CORPORA TION PREMISES
21. Definitions.— In this chapter—
(a)  “competent authority” means the Managing Director of the Corporation and
includes such other officer of the Corporation as the Government may, by notification in the
Gazette, authorise to perform the functions of a competent authority under this chapter for
such area as may be specified in the notification;
(b)  “Corporation  premises”  means  any  premises  belonging  to  or  vested  in  the
Corporation or taken on lease by the Corporation or entrusted to the Corporation under the
Act for management and use for the purposes of this Act;
(c) “premises” means any land, building or part of a building and includes a hut,
shed or other structure or part thereof.
22. Power to evict persons from Corporation Premises.—(1) If the competent authority
is satisfied—
(a) that the person authorised to occupy any Corporation premises has-
(i) not paid the rent lawfully due from him in respect of such premises for
period of more than two months; or
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(ii) sub-let, without the permission of the Corporation, the whole or any part of
such premises; or
(iii) otherwise acted in contravention of any of the terms, express or implied,
under which he is authorised to occupy such premises; or
(b) that any person is in unauthorised occupation of the Corporation premises;
the  competent  authority  may,  notwithstanding  anything  contained  in  the  Kerala  Public
Buildings (Eviction of Unauthorised Occupants) Act, 1968 (25 of 1968), by notice served by
registered post, or by affixing a copy of it on the outer door of the building or some other
conspicuous part of such premises, or in such other manner as may be prescribed, order that
the person authorised to occupy as well as any other person who is in occupation of the
whole or any part of the premises shall vacate  them within one month of the date of the
service of the notice.
(2) Before an order under sub-section (1) is made against any person the competent
authority shall inform the person, by notice in writing and served in the manner provided for
service of notice under sub-section (1), of the grounds on which the proposed order is to be
made and give him a reasonable opportunity to offer an explanation and to produce evidence,
if any, and to show cause within a period to be specified in such notice why such an order
should not be made.
(3) The  competent  authority  may,  on  application,  grant  extension  of the  period
specified in such notice on such terms as to payments and recovery of the amount claimed in
the notice as he deems fit.
(4) Any written statement put in by such persons and the documents produced in
pursuance of the notice shall be filed before the competent authority and such persons shall
be entitled to appear before him either in person or by pleader.
(5) If any person refuses or fails to comply with an order made under sub-section
(1), the competent authority may evict that person from and take possession of, the premises
and may for that purpose use such force as may be necessary.
(6) If any person who has been ordered to vacate any premises under sub-clause (i)
or (ii) of clause (a) of sub-section (1), within one month of the date of service of the notice or
such longer time as the competent authority may allow, pays to the Corporation the rent in
arrears  or  carries  out  or  otherwise  comply  with  the  terms  contravened  by  him  to  the
satisfaction of the competent authority, as the case may be, the competent authority shall, in
lieu of evicting such persons under sub-section (5), cancel its order made under sub-section
(1), and thereupon such persons shall hold the premises on the same terms on which he held
them immediately before such notice was served on him.
Explanation.— For  the  purpose  of  this  section,  the  expression  “unauthorised
occupation”  in  relation  to  any  person  authorised  to  occupy  any  Corporation  premises,
includes the continuance of occupation by him or by any person claiming through or under
him of the premises after the authority under which he was allowed to occupy the premises
has been duly determined.
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1[(7) If the competent authority has taken possession of the premises under sub-
section (5) and the person has failed to make any outstanding payment to the Corporation, the
competent authority shall issue a notice calling upon him to make the payment and in case
the person fails to do so within the time allowed by the competent authority, the Kerala
Industrial  Infrastructure  Development  Corporation  shall  take  such  action  as  deemed
necessary on the assets of the industrial unit including transfer of undertaking along with the
assets to another willing purchaser after conducting a valuation of assets by an independent
approved valuer and sell the assets for realisation of the dues to the Corporation.
Note 1:— For the purpose of this sub-section, the expression “industrial unit” means
any industrial unit established by an entrepreneur or allottee under an agreement with the
Corporation in the land owned by the Corporation.
Note 2:— For the purpose of this sub-section, the expression “undertaking” means any
building, plant and machinery or any other assets of the industrial unit established by an
entrepreneur or allottee under an agreement with the Corporation in the land owned by the
Corporation.]
23. Appeal.—  (1) Any person aggrieved by an order of the competent authority under
section 22 may, within one month from the date of service of the notice of such order, prefer
an appeal to the Government:
Provided that the Government may entertain the appeal after the expiry of the said
period of one month, if they are satisfied that the appellant was prevented by sufficient cause
from filing the appeal in time.
(2) On receipt of an appeal under sub-section (1), the Government may after calling
for report from the competent authority and after making such further enquiry, if any, as may
be necessary, pass such orders as they think fit, and the order of the Government shall be
final.
(3) On such appeal being preferred, the Government may stay the execution of the
order of the competent authority for such period and on such conditions as they think fit.
24. Applicability of the Kerala Buildings (Lease and Rent Control) Act, 1965 (2 of
1965).—  The Kerala Buildings (Lease and Rent Control) Act, 1965 (2 of 1965) shall not
apply to any premises belonging to or vested in the Corporation under this Act.
CHAPTER VII
ACQUISITION AND DISPOSAL OF LAND
25.  Compulsory  acquisition  of  land  for  Corporation.— (1)  Whenever  any  land  is
required by the Corporation for any purpose in furtherance of the objects of the Act and the
Corporation is unable to procure it by agreement, the Government may, upon an application
made  by the  Corporation  in  that  behalf,  order  proceedings  to  be taken  under the  Land
Acquisition Act, 1894 (Central Act 1 of 1894) for acquiring the same on behalf of the
Corporation as if such lands were needed for a public purpose within the meaning of the said
Act.
1 Inserted by Act 4 of 2025 (w.e.f. 19.04.2025).
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(2) The amount of compensation awarded and all other charges incurred in the
acquisition of any such land shall be paid by the Corporation and thereupon the land shall
vest in the Corporation.
26. Transfer of Government lands.—  (1) For the furtherance of the objects of this Act,
the Government may, upon conditions as may be agreed upon, place at the disposal of the
Corporation any land vested in the Government.
(2) Where any such land has been developed by or under the control and supervision
of  the  Corporation,  it  shall  be  dealt  with  by  the  Corporation  in  accordance  with  the
regulations made and the directions given by the Government in this behalf.
(3) If any land placed at the disposal of the Corporation under sub-section (1) is
required at any time thereafter by the Government, they shall have power to resume the land
and the Corporation shall thereupon surrender the land to Government.
CHAPTER VIII
SUPPLEMENTARY AND MISCELLANEOUS PROVISIONS
27.  Power of the Corporation in case of default by owners of lands .— (1) If the
Corporation after inquiry, or upon a report from any of its officers or other information in its
possession, is satisfied that the owner of any land in an industrial area has failed to provide
any amenity in relation to the land which in the opinion of the Corporation ought to be
provided or to carry out any development of the land for which permission has been obtained
under this Act the Corporation may, after giving the owner a reasonable opportunity of being
heard, serve on the owner 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 such development is not carried out
within the time specified in the notice, the Corporation may itself provide the amenity or
carry out the development or have it provided or carried out through such agency as it deems
fit:
Provided that before taking action under this sub-section, the Corporation shall afford
reasonable opportunity to the owner of the land to show cause why such action should not be
taken.
(3) All  expenses incurred  by  the  Corporation  or  the  agency  employed  by it  in
providing the amenity or carrying out the development together with interest, at such rate as
the Government may by order fix, from the date when a demand for the expenses is made
from the owner until payment, shall be recoverable by the Corporation from the owner.
(4) An owner aggrieved by a notice issued to him under sub-section (1), may within
a period of sixty days from the date of receipt of such notice, file an appeal to such authority
as may be authorised in this behalf by the Government and he shall dispose of such appeal in
such manner as may be prescribed.
(5) A decision on such appeal shall be final and conclusive.
28.  Order of demolition of building .— (1) Where the erection of any building in an
industrial estate or industrial area has been commenced, or being carried on, or has been
completed, or any existing building is altered, in contravention of the terms on which such
building or the land on which it stands is held or granted under this Act any officer of the
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Corporation empowered by it in this behalf may, in addition to any prosecution that may be
instituted under this Act make an order directing that such erection shall be demolished by
the owner thereof within such period not exceeding two months as may be specified in the
order and on the failure of the owner to comply with the order, the officer may himself cause
the erection to be demolished and the expense of such demolition shall be recoverable by the
Corporation from the owner:
Provided that no such order shall be made unless the owner has been given a reasonable
opportunity to show cause why such an order should not be made.
(2) Any person aggrieved by an order under sub-section (1) may appeal against that
order within thirty days from the date thereof to a Committee of the Corporation set up for
the purpose by regulations made in this behalf. Such Committee may after hearing the parties
to the appeal either allow or dismiss the appeal or reverse or vary any part of the order.
(3) The decision of the Committee on such appeal shall be final.
29. Power to stop building operations .— (1) Where the erection of any building in an
industrial estate or industrial area, has been commenced, or is being carried on, or has been
completed or any existing building is altered in contravention of the terms on which such
building or the land on which it stands is held or granted under this Act, any officer of the
Corporation  empowered in  this behalf  may,  in addition to  any prosecution  that  may be
instituted under this Act, make an order requiring the building operations in relation to such
erection to be discontinued on and from the date of service of the order:
Provided that before passing an order under this sub-section, the person against whom
such order is passed shall be given an opportunity of being heard.
(2) Where such building operations are not discontinued in pursuance of the order
under sub-section (1), the Corporation or the officer empowered may require the assistance of
any police officer to remove the person by whom the erection of the building has been
commenced and all his assistants and workmen from the place of the building, within such
time as may be specified  in the order, and such police officer shall comply with the order
accordingly.
30. Penalty for construction or use of land and buildings contrary to terms of holding .
(1) Any person who, whether at his own instance or at the instance of any other person,
undertakes or carries out construction of or alterations to, any building in an industrial estate
or industrial area contrary to the terms under which he holds such building or land under this
Act 2[shall be liable to a fine, which shall not be less than ten thousand rupees but may extend
to fifty thousand rupees, subject to such conditions as may be prescribed].
(2) Any person who, uses any land or building in an industrial estate or industrial
area 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, 3[shall be liable to a
fine, which shall not be less than ten thousand rupees but may extend to fifty thousand
rupees, subject to such conditions as may be prescribed].
31. Power to lay gas pipelines etc.— (1) (a) For the purpose of —
(i) carrying gas, water or electricity within any area taken up for development
under paragraph (a) of clause (ii) of section 9 (hereinafter referred to as “the said area” ); or
2 Substituted by Act 4 of 2025 (w.e.f. 19.04.2025).
3 Substituted by Act 4 of 2025 (w.e.f. 19.04.2025).
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(ii) constructing any sewers or drains necessary for carrying off workings and
waste liquids of an industrial process through the said area,
the Corporation may after giving reasonable notice to the owner or occupier, of any building
or land in  the said  area, lay  down, place,  maintain, alter, remove,  or repair, any pipes,
pipelines, conduits, supply or service line, posts or other appliances or apparatus in, on,
under, over, along or across any land in the said area.
(b) For the purpose of—
(i) carrying gas, water or electricity from a source of supply to an industrial
estate, centre or industrial area, such sources of supply being in an area outside such estate,
centre or area (hereinafter referred to as “outside area”) ; or
(ii) constructing any sewers of drains necessary for carrying off working
and waste liquids of an industrial process to or through an outside area,
any person empowered in this behalf by the Government, by notification in the Gazette
(hereinafter referred to as “the authorised person”) may after giving reasonable notice to the
owner or occupier of any building or land in the outside area, lay down, place, maintain, alter,
remove  or  repair  any  pipes,  pipelines,  conduits,  supply  or  service  lines,  posts  or  other
appliances or apparatus in, on, under, over, along or across any land in the outside area.
(2) The Corporation or, as the case may be, the authorised person, may at any time
enter upon any land in any such area and in such event the provisions of section 32 shall
mutatis mutandis apply.
(3) Compensation to all persons interested for extinguishment or modification of rights
in   property , any damage sustained by them in consequence of the exercise of the such
powers as aforesaid, shall be paid by the Corporation irrespective of whether the area is the
said area or the outside area;
Provided that the amount of compensation in lump sum or in the form of annul rent,
according as the circumstances of the case may require, shall be fixed and, where necessary,
apportioned by the Collector in accordance with the provisions of the Land Acquisition Act,
1894 (Central Act I of 1894).
(4) Nothing herein shall authorise or  empower the Corporation  or the authorised
person to lay down or place any pipe or other works into, through or against any building or
in any land not dedicated to public use without the consent of the owners and occupiers
thereof, except that the Corporation or such person may at any time enter upon and lay or
place any new pipe in place of an existing pipe in any land wherein any pipe has been already
lawfully laid down or placed in pursuance of this Act and may repair or alter any pipe so laid
down:
Provided  that  nothing  in  this  sub-section  shall  be  construed  to  mean  that  the
Corporation or other person is forbidden from having the said land acquired at any time by
the Government in the normal course.
(5) (a) Where the owner or the occupier of any building or land does not reply in
writing to the Corporation or the authorised person within  a period of fifteen days from the
date on which the consent referred to in sub-section (4) is sought, or refuses to give such
consent to lay down or place any pipe or other works into, through or against such building,
the Corporation or the authorised person shall forthwith make a report in writing of the fact to
the Collector.
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(b) On receipt of the report, if the Collector, after making an inquiry and after
giving  the  owner  and  the  occupier  of  such  building  or  land,  as  the  case may  be,  an
opportunity of stating his objection to give such consent, is satisfied that for ensuring the full
and efficient development of the industrial estate, or as the case may be, industrial area it is
necessary to permit the Corporation or the authorised person to lay down or place any pipe or
other works into, through or against the building or in the land as contemplated by the
Corporation or the authorised person, the Collector shall notwithstanding anything contained
in sub-section (4), by an order in writing grant the permission to the Corporation or the
authorised person.
(c) When such permission is granted, it shall be lawful for the Corporation or the
authorised person to lay down or place any pipeline or other works into, through or against
such building or in such land as if the necessary consent under sub-section (4) has been
given.
32. Power of entry.— Any officer of the Government, any member or any person either
generally or specially authorised by the Corporation 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 or taking
levels of such land or buildings;
(b) examining works under construction and ascertaining the course of sewers and
drains;
(c) digging or boring into the sub-soil;
(d) setting out boundaries and intended lines of work;
(e) marking such levels, boundaries and lines, placing marks and cutting trenches;
(f) doing any other thing necessary for the efficient implementation of this Act:
Provided that—
(i) 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;
(ii) sufficient opportunity shall in every instance be given to enable women, if
any, to withdraw from such land or building;
(iii)  due  regard  shall  always  be  had,  so  far  as  may  be  compatible  with  the
exigencies of the purpose for which the entry is made, to the social and religious usages of
the occupants of the land or building entered.
33. Overriding powers of Government to issue direction to local authorities .— If the
Government is satisfied on a recommendation made in this behalf by the Corporation, that
the setting up of an industrial area or industrial undertaking within an industrial area or
outside is impeded by a local authority’s refusal to grant or by such authority’s insistence on
any amenity, the government may direct the local authority to grant the said amenity on such
conditions as they consider fit and thereupon the amenity shall be granted:
18
Provided that the charge to be paid for granting or continuing such amenity to the
local authority concerned shall not be less than the cost to the local authority or licensee
concerned for providing such amenity:
Provided further that no such direction shall be made by the Government unless
the local authority is given a reasonable opportunity to show cause why any such direction
should not be made.
34. Liability of lessee to pay taxes etc .— Where any land is leased by the Corporation,
the lessee shall pay to the Corporation before such dates as may be prescribed, an amount
equal to the land revenue, rent, cesses, rates and other taxes, if any, payable in respect of such
land, which would have been payable by the Corporation, had the land not been leased.
35.  Recovery of sums due to Corporation as arrears of land revenue .— All sums
payable by any person to the Corporation or recoverable by it by or under 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 public revenue due on land under the
provisions of the Revenue Recovery Act for the time being in force, on the application of the
Corporation.
36.  Service  of  notice etc .— The procedure for service of notice and production of
documents etc., shall, as far as possible, be governed by the provisions of the Code of Civil
Procedure, 1908 (Central Act 5 of 1908).
37. Public notices.— Every public notice given under this Act or any rule or regulation
made thereunder shall be in writing over the signature of the officer concerned and shall be
widely  made  known  in  the  locality  to  be  affected  thereby,  affixing  copies  thereof  in
conspicuous public places, within the said locality, or by publishing the same by beat of drum
or by advertisement in a newspaper having wide circulation in the locality, or by any two or
more of these means, and by other means as the officer may think fit.
38.  Furnishing of returns etc .—(1) The Corporation shall furnish to the Government
such returns, statistics, reports, accounts and other information with respect to its conduct of
affairs,  properties  or  activities  or  in  regard  to  any  proposed  work  or  scheme  as  the
Government may from time to time require.
(2) The Corporation shall in addition to the audit report referred to in section 20
furnish to the Government an annual report on its working, as soon as may be after the end of
each financial year in such form and with details, as may be prescribed, and a copy of the
annual report shall be placed before the Legislative Assembly as soon as may be after it is
received by the Government.
39. Withdrawal of area or estate or part thereof .— Where the Government is satisfied
that in respect of any particular industrial estate, industrial area or any part thereof, the
purposes for which the Corporation was established under this Act have been substantially
achieved so as to render the continued existence of such estate, centre or area or part thereof
under the Corporation unnecessary, the Government may, by notification in the Gazette,
declare that such industrial estate, or industrial area or part thereof, has been removed from
the jurisdiction of the Corporation. Thereupon, the Government may, after Consulting the
Corporation, pass such or

Excerpt shown. Open the full act in Lexace.

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