KARNATAKA INDUSTRIAL AREAS DEVELOPMENT ACT, 1966
(1) This Act may be called the Karnataka Industrial Areas Development Act, 1966.
(2) It extends to the whole of the State of Karnataka.
(3) This Act except Chapter VII shall come into force at once: Chapter VII shall come into force in such area and from such date as the State Government may, from time to time, by notification, specify in this behalf.
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 established 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 Depu
(1) 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 notification shall define the limits of the area to which it relates.
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.
(2) The said Board shall be a body corporate with perpetual succession and a common 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.
The Board shall consist of the following members,namely:
(a) the Secretary to the Government of Karnataka, Commerce and Industries Department who shall ex officio be the Chairman of the Board;
(b) the Secretary to the Government of Karnataka, Finance 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 Boa
(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 of any Committee thereof or when appointed in connection with the work undertaken by or for 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.
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(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 employees 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.
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.
The functions of the Board shall be
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 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;
(d) to make available buildings on lease or sale or lease-cum-sale to industrialists or persons intending to start industrial undertakings;
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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.
Section 15 of the Karnataka Industrial Areas Development Act, 1966 (KIAD Act), pertains to the authentication of orders, decisions, notices, and other documents issued by the Board. It ensures the formal validity and legal enforceability of the Board's actions and communications related to industrial area development.
Section 15 mandates that all permissions, orders, decisions, notices, and other documents of the Board must be authenticated by the authorized officer or authority. This authentication process provides legal sanctity and official recognition to the documents, facilitating their use as valid proof in legal proceedings or administrative actions.
Section 15 applies broadly to all official acts, decisions, and communications of the Karnataka Industrial Areas Development Board (KIADB). It covers documents issued in connection with land acquisition, development approvals, resumption orders, and other administrative actions under the Act.
The section itself does not specify any punishment for non-compliance. However, failure to authenticate documents properly could lead to questions about their validity, potentially resulting in administrative or legal challenges, and possibly disciplinary actions against responsible officials for misconduct or negligence.
Note: The analysis is based on the provided sources, primarily focusing on the provisions and implications of Section 15, with contextual understanding of the Act’s framework.
11. Inserted by Act No. 11 of 1997. x x x x x.
Section 16 of the Karnataka Industrial Areas Development Act, 1966 (KIAD Act) pertains to the notification process for declaring an area as an industrial area under the Act. This section is crucial for establishing the legal basis for industrial development and land acquisition within designated zones.
Section 16 authorizes the State Government or the Board to notify specific areas as industrial areas. Once notified, these areas become subject to the provisions and regulations of the Act, facilitating land acquisition, development, and infrastructure provision.
While Section 16 itself primarily deals with notification, violations related to unauthorized construction or use of land in notified areas attract penalties under Sections 34 and 40(1) of the Act, which prescribe penalties for contraventions and defaults.
Note: The analysis is based on the provided sources, emphasizing the procedural, legal, and policy aspects of Section 16 of the Karnataka Industrial Areas Development Act, 1966.
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 the purposes of this Act, and the Board shall be bound to follow and act upon such directions.
All property, fund and other assets vesting in the Board shall be held and applied by it, subject to provisions and for the purposes of this Act.
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 Board by way of rents or in any other manner or from any other source.
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.
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.
(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
(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 subsection (1), the Board 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 in the acquisition of land.
(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.
(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.
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The Karnataka Rent Control Act, 1961.
(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.
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.
(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 furtherence 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 State 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
Section 28 of the Karnataka Industrial Areas Development Act, 1966 (KIAD Act) provides the legal framework for the compulsory acquisition of land required for industrial development and related purposes. It facilitates the State Government's power to declare land as necessary for establishing industrial areas, thereby enabling systematic development of industrial estates for economic growth.
Section 28 of the KIAD Act provides a comprehensive statutory mechanism for land acquisition for industrial and development projects, emphasizing procedural correctness, opportunity for landowners to be heard, and timely passing of final declarations. Courts have consistently upheld the validity of acquisitions made in accordance with these provisions, while scrutinizing procedural lapses, mala fide actions, delays, and violations of constitutional rights. Proper adherence to procedural safeguards ensures the legitimacy of acquisition proceedings, safeguarding the rights of landowners and the public interest.
(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 determined 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 determination 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 Commi
The provisions of the Land Acquisition Act, 1894 (Central Act 1 of 1894) shall mutatis mutandis apply in respect of the enquiry and award by the Deputy Commissioner, the reference to court, the apportionment of compensation and the payment of compensation, in respect of lands acquired under this Chapter.
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.
(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 shall 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.
(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 permission 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.
(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 under 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.
(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 to 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 recoverable from the person concerned as arrears of land revenue.
(4) No order to recover the expenses incurred for demolition or alterat
(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 him 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
The Karnataka Industrial Areas Development Act, 1966 (KIAD Act) was enacted to facilitate the development of industrial areas in Karnataka. Section 34(b) specifically addresses the consequences of breaching the terms of lease or holding agreements related to land use in these industrial areas.
Section 34(b) empowers the authorities to resume possession of premises, including residential tenements, if there is a breach of the terms and conditions of the lease or holding without proper authority. This section serves as a mechanism to enforce compliance with the stipulated terms of land use.
The scope of Section 34(b) includes:- Resumption of land used contrary to the lease terms.- Application to both industrial and residential tenements within the industrial areas.- Enforcement of compliance to maintain the intended industrial development.
While Section 34(b) does not explicitly outline punitive measures, the resumption of possession acts as a significant consequence for non-compliance. The loss of land and potential financial implications serve as deterrents against breaches.
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
All sums payable by any person to the Board 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 land revenue on the application of the Board.
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 for the administration of such area or part thereof as the circumstances necessitate.
Section 37 of the Karnataka Industrial Areas Development Act, 1966, deals with the withdrawal of an industrial area or part thereof by the State Government when the purpose for which the area was established has been substantially achieved. It provides a legal mechanism for the de-notification of industrial areas to facilitate their re-utilization or development for other purposes.
Section 37 authorizes the State Government to withdraw any industrial area or part of it if it is satisfied that the objectives for which the area was created have been substantially fulfilled, rendering continued existence unnecessary. The section empowers the government to initiate the withdrawal process through a formal notification, following due satisfaction and procedural compliance.
Section 37 itself does not prescribe any punishment. However, violations related to non-compliance with the withdrawal process or obstruction of the process may attract penalties under other sections of the Act, such as penalties for obstruction (Section 39) or prosecution powers (Section 38).
This concise commentary synthesizes available legal insights from the provided sources to facilitate understanding of Section 37 of the Karnataka Industrial Areas Development Act, 1966.
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.
Any person who obstructs 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 with imprisonment for a term which may extend to six months, or with fine which may extend to one thousand rupees, or with both.
(1) The State Government, after previous publication, may, by notification, make rules to carry out the purposes of this Act.
(1) The Board, may, with the previous approval of the State Government, by notification make regulations consistent with this Act and the rules made thereunder, to carry out the purposes of this Act.
Every rule and every regulation made under this Act, shall be laid as soon as may be after it is made, before each House of the State Legislature, while it is in session for a total period of thirty days which may be comprised in one session, or in two or more successive sessions, and if before the expiry of the session in which it is so laid or the sessions immediately following, both Houses agree in making any modification in any such rule or regulation or both Houses agree that the rule or regulation should not be made, the rule or regulation 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 any thing previously done under that rule or regulation.
No award or agreement or contract made or executed under this Act, or under any rule or regulation made thereunder shall be chargeable with duty under the Karnataka Stamp Act, 1957, or fees under the Indian Registration Act, 1908.
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No suit, prosecution or other legal proceeding shall lie against any officer of the State Government of the Board for anything which is in good faith done or intended to be done under this Act or any rule or regulation made thereunder.
All members and employees of the Board shall when acting or purporting to act in pursuance of any of the provisions of this Act, be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code.
The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law.
If any doubt or difficulty arises in giving effect to the provisions of this Act, the State Government may, by notification, make such provision or give such direction not inconsistent with the express provisions of this Act, as may appear to it to be necessary or expedient for the removal of the doubt or difficulty, and every such notification shall have effect as if enacted in this Act.
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