Kerala Government Land Allotment and Assignment for Industrial Purposes Rules, 2023
(1) These rules shall be called the Kerala Government Land Allotment and Assignment for Industrial Purposes Rules, 2023.
(2) It shall come into force at once.
In these rules, unless the context otherwise requires,--
(a) "Alienation" includes sale, gift, will, mortgage, hypothecation, lease or transfer of possession including dilution of ownership or controlling interest by more than 50%.
(b) "Allottee" means the person or legal entity to whom the land is allotted under these Rules, and includes his or her legal heirs or successors - in - interest or permitted transferee.
(c) "Permitted transferee" means the person or legal entity to whom the land has been allotted or assigned by transfer by the Allotting Authority or the Assigning Authority, as the case may be.
(d) "Industrial Land Allotment Committee" means committee constituted for the purpose of considering land allotment applications for appraisal and finalizing priority list as per rule 6.
(e) "Assignment" means transfer of land on registry under hire purchase or outright purchase.
(f) "Hire purchase" means allotment of Industrial land by rem
(1) Government Land shall be allotted or assigned for industrial purposes under these Rules. Government shall identify and issue orders notifying land as industrial land for the purpose of these Rules. The General Manager shall duly consult the local authority as defined in the Kerala Panchayat Raj Act, 1994 (13 of 1994) or the Kerala Municipality Act, 1994 (20 of 1994), as the case may be, while identifying land for industrial purpose.
(2) The General Manager shall issue notice regarding the availability of land for general information of the public through leading Malayalam and English dailies and application shall be invited through online for the same. In case of assignment of land claims shall be invited and objections shall be disposed by following the procedure laid down in section 4(1) of Kerala Land Assignment Act, 1960.
(3) Land allotted or assigned under these Rules shall be used only for industrial purposes as defined in, sub rule (o) of rule 2.
Land shall be allotted to entrepreneurs on outright purchase basis or on hire purchase basis subject to the following conditions.--
(1) The allottee shall take possession of the plot as it is. Further improvements or developments inside the allotted plot shall be the responsibility of the allottees.
(2) Allottees shall not effect any excavation upon any part of the allotted plot or remove any stone, sand, soil and trees or any other material there from or do any act detrimental to the interest of the industrial area except in so far as may be necessary, in the opinion of the General Manager, for the purpose of construction including laying the foundation, erection of compound walls or any other work permitted specifically by the General Manager. Trees if any, standing on the plot at the time of allotment, shall be the property of the Government and the allottee or the assignee shall not cut or remove any trees on the land, except in accordance with the relevant provisi
(1) Application for allotment of land for industrial purpose shall be submitted in Form No.1 to the General Manager along with a copy of the project report, the lay out and building plan and copy of the partnership deed or Certificate of registration of Co-operative Society or Company, whichever is applicable or any other relevant document as required by General Manager. The General Manager shall place the same before the District Industrial Land Allotment Committee (DILAC) or State Industrial Land Allotment Committee (SILAC), as the case may be, with her or his specific recommendation thereon in respect of the matters mentioned in rule 7, within 30 days of receipt of the application.
(2) Each application for allotment of land under these rules shall be accompanied by an earnest money deposit of Rs 10000/- (ten thousand rupees only). The amount shall be adjusted towards the initial payment that has to be made by the allottee at the time of taking possession of land.
(3
The allotment of land for industrial purpose shall be done by the General Manager/the Director of Industries & Commerce. The General Manager, District Industries Centre shall be the allotting authority for plots measuring up to 4.04 Hectares (10 acres) of land and the Director of Industries & Commerce, for plots above 4.04 Hectares (10 acres), based on the recommendations of the respective land allotment committees at District and State levels. The order of priority is to be observed in areas where more than one application is received in respect of one plot.
Application for the allotment of land shall be disposed of by the Allotment Committee (DILAC or SILAC) within a period of six months taking into consideration the viability of the project, the desirability and the suitability of the industry proposed in the area, investment and employment potential of the proposed unit, the capacity of the applicant to conduct the industry, the pollution sensitivity of the area and any other matter as may be ordered from time to time, by the Director of Industries and Commerce. The need for the extent of land applied for, should be clearly stated. The Allotment Committee shall scrutinize the applications after interviewing the applicants and shall prepare the priority list as per the actual extent of land assessed by the Industrial Land Allotment Committee (DILAC or SILAC). An order rejecting the application must specify reasons for rejection. The provisional allotment order of General Manager, District Industries Centre or the Director of Industrie
The allotee shall remit 50% of the cost of the plot for allotment on hire purchase basis or 100% of the cost of the plot for allotment on outright purchase basis within 15 days from the date of receipt of the provisional allotment order. The General Manager or the Director of Industries and Commerce, as the case may be, shall thereafter issue necessary allotment order in Form No. IIA as expeditiously as possible at any rate within seven working days from the date of receipt of the original challan, in proof of remittance of cost of the plot. Thereafter the allottee shall execute an agreement with the General Manager, District Industries Centre or the Director of Industries and Commerce in Form No. III within seven working days from the date of receipt of a copy of the allotment order in Form No. IIA. The possession of the land shall be given only after issuing the allotment order. The allottee shall issue a receipt for the plot and improvements, if any taken over by him in Form No.
Allottee shall take possession of the allotted plot within two weeks from the date of execution of agreement. The allotted plot shall be fenced or protected by compound wall by the allottee within one month from the date of taking possession. The allottee shall commence effective improvements on the allotted or assigned plot within six months from the date of taking possession of the land and shall commence production within two years from the date of execution of the agreement. If the allottee fails to commence the commercial production within two years, the land will be resumed after giving the opportunity of being heard, by the allotting authority. If aggrieved by this, the allottee can file appeal before the Director of Industries and Commerce (for allotment of land upto 10 acres) and the Secretary to Government, Industries Department (for the allotment of land above 10 acres) within 30 days from the date of resumption and the appellate authority shall dispose the appeal with in
The allottee shall obtain the approval of the General Manager for the specifications, building and site plans, estimate, sectional drawing and details of the buildings to be erected or constructed on the allotted plot. No construction shall be carried out without such prior written approval.
In the case of defaulted payment, amounts paid by allottee shall be adjusted first towards penal interest, then towards interest and only thereafter towards principal amount.
(1) The cost of land is calculated on the basis of cost of acquisition of land including survey and demarcation charges, cost of development with interest thereon at the rate of ten percent per annum on Government investment on development up to the date of allotment and Land Acquisition Reference Charges. The land value is liable to be enhanced by the Government from time to time.
(2) If land is Government Land to begin with, set apart for such assignment and not land acquired under the Land Acquisition Act, the cost of land shall be calculated based on the prevailing market value of land as determined by the District Collector having jurisdiction. The land value shall include survey and demarcation charges, cost of development with interest thereon at the rate of ten percent per annum on Government investment on development up to the date of allotment and Land Acquisition Reference Charges. The land value is liable to be enhanced by the Government from time to time.
In the event of a competent Civil Court ordering payment of enhanced compensation to the persons affected by acquisition at a later date, such amounts, including those paid and payable, if any, may be apportioned to the allottees in respect of the land allotted or assigned to them and such amounts shall be payable by the allottees or assignees as if those were a part of the original cost of the land allotted or assigned to them.
Allottees and assignees shall also be liable to pay all further amounts as demanded by the allotting authority on account of provision of infrastructure and costs of maintenance on existing assets that may be incurred subsequent to the allotment or assignment or on account of erroneous determination of land value including value of trees leading to undervaluation.
Application for assignment shall be submitted by the allottee to the General Manager after full payment of the allotted land in Form V appended to these Rules. Assignment shall be given to the units on satisfying the conditions that the unit is working in full swing and the entire extent of land is utilized for the purpose for which it is allotted. General Manager shall forward the application with due recommendation in Form VI to the District Collector who shall thereupon issue the orders of assignment in Form VI A. For land above 4.04 Hectares, the General Manager shall get concurrence of the Director of Industries and Commerce, for forwarding the application for assignment to the District Collector.
The Assignment of industrial land shall be ordered by the District Collector on receipt of the payment of all costs in full by the allottee, full utilization of the allotted land and on functioning of the industrial unit in full swing. The transfer of assignment from one assignee to another person or entity may also be made by the District Collector on the recommendation of the General Manager.
The Tahsildar of the Taluk in which the industrial land is situated shall issue patta to the assignee in Form VII on receipt of the assignment order from the District Collector. Issue of Patty shall enable due changes in Revenue Records. If the land is in more than one Taluk, the Revenue Divisional Officer having jurisdiction of that area will be the assigning authority.
(1) The land assigned under these Rules shall be heritable and alienable with prior permission in writing of the General Manager.
(2) Each Assignee intending to transfer land shall submit an application to the General Manager, District Industries Centre in Form VIII.
(3) Each transferee shall give an undertaking in Form VIII A to the effect that he shall;
(a) Remit an amount equal to the revised land value as demanded by the Allotting Authority under rule 12 and 13 and outstanding dues, if any, towards apportioned amounts under the Rules, less the land value and apportioned amounts paid by the original assignee or permitted transferee;
(b) Utilize the entire extent of the plot for industrial purpose only;
(c) Provided however, that where industrial use other than the original line of activity is contemplated, prior permission of the General Manager, District Industries Centre shall be obtained.
For giving effect to such transfer in revenue records, the General Manager shall, after realizing the difference in land value if any, issue a proceedings in Form No. VIII B. A copy of such proceedings accompanied by his or her recommendation shall be forwarded to the District Collector for issuing revised assignment order in the name of the transferee. The revised Patty shall be issued by the Tahasildar and the transferee (s) shall be bound by all the provisions of these Rules as if he or she or they were the original assignee (s). Necessary changes shall be effected in the revenue records, thereafter.
Industries Department shall have complete title and ownership of the allotted land and first charge on the assets of the industrial unit provided that this shall not apply where the financing institution or bank, which has financed the allottee, undertakes in the form given in Form No. X to the General Manager to pay off the balance payable on the allotted land.
(1) The land allotted or assigned under these Rules and assets/improvements thereon may, however, be encumbered to any Government financial institution or any Bank for raising funds to set up or run an industrial unit in the plot with the prior permission of the General Manager, District Industries Centre only after remitting the entire amount of land value as determined under these rules.
(2) Mortgage permission shall be issued to the applicants for availing institutional finance by executing a tripartite agreement in Form IX. The Financial institution shall have the first charge over such plot and Government shall have the second charge subject to undertaking in Form X. If the allottee fails to run the industry and on its getting wound up, the allottee shall intimate the General Manager of the possibility of attachment of the property by the financial institution or Bank. The Financial institution or Bank shall have powers to take over the plot in case of default of payment
In case of assigned lands, it shall also be open to the General Manager to dispose of defunct units with the consent of the Banks/Financial Institutions involved after following the due procedure in fixing the first charge on the sale proceeds to the dues of the financial institution or bank, next charge to Government dues, and balance if any, shall be refunded to the allottee.
A maximum period of two years is fixed as the period within which the allottee should commence the commercial production for the purpose for which it is allotted. So the time limit for implementation is only two years. In the following cases, the land allotted shall be resumed by the allotting authority:
(i) If the allottee does not start the commercial production on the allotted land within the stipulated period, the land will be resumed after giving the opportunity of being heard. A fine of Rs 250/- per Are per day (Rs.100/- per Cent per day) will be charged for each day of delay after the expiry of thirty months from the date of agreement till the date of resumption, if the land could not be resumed for any reason whatsoever. If the allottee does not pay the penalty, the provisions of the Kerala Revenue Recovery Act of 1968 shall be invoked to recover the dues.
After the appointed date of resumption specified as per rules, the penalty will start accruing irrespectiv
The General Manager shall have powers to resume the assigned land in the circumstances outlined in rule 24 after giving the assignee a notice to show cause within 30 days and after hearing her/him. The General Manager shall recommend to the District Collector to cancel the assignment / Patty and resume the land.
The allottee, if aggrieved by the decision of General Manager, may file appeal before the Director of Industries & Commerce within 30 days on receipt of a copy of resumption order and the Director shall dispose the appeal within 30 days.
The allotment or assignment of plot shall be liable to be cancelled at any time, if it is found that it was grossly inequitable or was made owing to misrepresentation of facts.
Amounts paid for industrial lands which are resumed or where allotment/assignment has been cancelled subsequently shall be treated as rent for use and occupation of the plot and such rent shall be calculated at the rate of 10% per annum of the land value at the time of resumption and the excess, if any, shall be refunded to the allottee or the assignee as the case may be.
In case of resumption, the following procedure shall be followed:
(1) If the allottee or assignee has made any improvements on the land without mortgaging such improvement to any financial institution, he shall be at liberty to remove such improvements so as to enable the department to re-allot the plot without any delay. If any of the prospective applicant in the priority list is willing to take over the land with the improvements, it shall be considered favorably on priority basis on the condition that the cost of improvements and assets are valued and returned to the original allottee, after deducting all amounts due to the Government. The valuation shall be done by a Civil Engineer not below the rank of Assistant Executive Engineer of any Government Department. Mutual agreement between the two parties/arbitration can also be resorted to. In case the above formalities are not resorted to, it shall be open to the General Manager to direct the original allottee to remove any
All amounts due to Government under these rules shall, in case of default, be recoverable from the allottee/assignee as arrears of land revenue under the provisions of Kerala Revenue Recovery Act 1968 for the time being in force.
The allottee or the assignee shall pay all taxes, cess, land revenue and other dues, if any, payable in respect of land from time to time.
All costs and expenses incidental to the execution of any document under these rules shall be borne by the allottee.
The General Manager and officers under her or him shall have the right to enter and inspect at all reasonable times in the allotted premises to review the progress of project to ensure that no contravention of the terms and conditions of allotment/assignment/agreement takes place.
The General Managers shall maintain registers in Form No XI and in Department website for each Industrial Area giving, details of allotted units, details of allotment/assignment/patta issued, payment effected, dues outstanding and such other relevant details.
(1) There will be a lock-in period imposed such that no transfer/ change in constitution will be allowed for a period of three years from the date of allotment.
(2) Lock-in period in respect of change of product/activity shall be six months only from the date of allotment. The lock-in period is applicable to subsequent changes also.
(1) For the above purpose, transfer of allotted property will mean transfer of allotted property to a new legal entity including merger, acquisition and amalgamation of the companies. It will also include transfer of allotted property by an Individual/Firm/Company or any other allottee as the case may be. There will be a lock-in period imposed such that no transfer/change in constitution will be allowed for a period of three years from the date of allotment. In case of transfer of land, the transferee shall pay Rs.25,000/- (Twenty five thousand only) as processing fees.
(2) The following cases shall be deemed as transfer:
(i) In the case of change of proprietorship firm to partnership firm resulting in the share of the original allottee falls below 51%.
(ii) In case of transfer to a person other than the legal heirs of the deceased allottee in the case of sole proprietorship.
(iii) If the shares of the original partner/partners fall(s) below 51%, in the c
(1) Change in constitution means change in share holding pattern of the allottee and or change in legal status of the allottee. The proposal for change in constitution will be considered by the allotting authority only after three years from the date of allotment. For any change in constitution, prior permission of the competent authority shall be obtained. All constitution changes (except as provided in Clause 35(2)a and Clause 35(2) b) will be allowed only by remittance of Rs.25,000/- (Twenty five thousand only) as processing fees.
(2) The following cases shall be considered as constitution changes:
(a) In case of proprietorship, if the original allottee dies, and if the unit is transferred to legal heirs (with no other changes).
(b) In the case of partnership firm/company and wherein changes occur on account of death of members/partners/shareholders/directors of the allottee and if a legal heir(s) occupies his/their position (with no other changes).
(c
(1) The allottee shall not change the proposed product or activity without the prior permission of competent authority.
(2) An allottee shall be allowed to switch over to new product/activity only after six months from the date of commencement of allotment and in the following circumstances only.
(i) The existing product has not much demand in the market.
(ii) Due to change of policy of the Government, the existing product/activity is not a permissible industrial activity.
(iii) If the permission from Pollution Control Board or other statutory authority is not forthcoming for the product originally envisaged.
(iv) On transfer of land the new entrepreneur wishes to change the product as an ancillary to his existing industry.
(v) When a unit is merged with any other unit under a scheme of amalgamation or merger.
(vi) For any other valid reason when the allotting authority considers it desirable that a change of product/activity is to be
(1) Any application for transfer of land, change in constitution or change in activity should be disposed off within 45 days from the date of receipt of application by the Allotting Authority. If the reason for the request is not justified, the application has to be rejected. If the Allotting Authority fails to take a decision within the specified period, the approval is deemed to be obtained
(2) The allottee shall not sublet or underlet or lease out or create any encumbrance of the land under any circumstance, other than in the case of space allotment in vertical development scheme/logistics projects. Subletting of industrial unit in Development Area/Development Plot/Functional Industrial Estates shall not be permitted under any circumstances and the Allotting Authority shall have the power to resume that land after following established procedures if found so.
(3) The allottee shall pay land tax, building tax and all other kinds of taxes, cess etc. if any, payable to
Dispute if any on any matter not covered under the provisions of these Rules shall be referred to Government.
All acts done with regard to industrial land such as allotment, assignment, resumption etc. in accordance with the rules superseded shall be deemed to have been done under the corresponding provisions of these Rules.
FORM I | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Rule - 5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
APPLICATION FOR ALLOTMENT OF PLOTS IN INDUSTRIALS DEVELOPMMENT AREA/ DEVELOPMENT PLOT/INDUSTRIAL ESTATE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
1.(a) Name and full postal address of the S.FORM II
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