Kerala Panchayat Raj (Issue of Licence to Factories, Trades, Entrepreneurship activities and other services) Rules, 1996
In these rules, unless the context otherwise requires,--
(a) 'Act' means the Kerala Panchayat Raj Act, 1994 (13 of 1994);
(b) 'President' means the President of a Village Panchayat;
(c) 'Secretary' means the Secretary of a Village Panchayat;
(d) 'Section' means a section of the Act;
(e) Words and expressions used but not defined in these rules, but defined in the Act shall have the meanings respectively assigned to them in the Act.
The Government may, for the purpose of Section 232, specify in the First schedule appended to these rules, the matters which, in the opinion of the Government, shall be classified as factories, trades, entrepreneurship activities and other services.]
The Village Panchayat may, by affixing notices in the notice board of the Offices of the Panchayat and in conspicuous places of every constituency in the Panchayat and by advertisement by way of pamphlets and loudspeakers, notify that no place in the Panchayat area shall be used for any purpose or purposes specified in Schedule I without the licence issued by the President and except in accordance with the conditions specified therein. If the licence is for running restaurants, eating houses, hotels, coffee houses, tea shops or for barber shops, the licence issued by the President shall always contain and shall be deemed to contain a condition that admission therein shall be available for every member of the public.
The owner or occupier of every place used for the purposes specified in Schedule I shall, within thirty days of the publication of the notification, submit to the Secretary, application for licence for the use of such place for such purpose.
The Secretary or the officer authorized by him shall issue an acknowledgment to the applicant on the receipt of application along with the supporting documents in Form No. I appended to these rules. The Secretary or the officer authorised by him, shall, immediately on receipt of the application, verify the application and all the supporting documents on the support and if any supporting document required is not attached with the application, the Secretary or the officer authorized by him shall immediately inform the applicant regarding the details of the missing document, if any, and allow the applicant to submit the missing document at the earliest but not later than three days from the date of receipt or application.]
The President may by order in writing and subject to such restrictions and regulations as he thinks fit, issue such licence or in public interest refuse to issue the same. In the case of refusal of licence the reasons for such refusal shall be mentioned in such order.
1[Provided if the application is submitted along with the requisite clearance from other Departments stipulated under these rules for grant of license along with the fee specified in the Schedule II, the President shall issue the license applied for within seven days from the date of receipt of the application along with the requisite clearances.]
The Village Panchayat may for every licence issued by the President, levy amounts not exceeding the rates mentioned in Schedule II.
The period of every licence issued under Rule 6, will expire at the end of the year unless, for special reasons, the President considers that it should expire at an earlier date, when it shall expire at such earlier date as may be specified therein. Provided that the period of licence in respect of factory, industrial establishment etc. shall be fixed as five years and in such cases five times of the fee for licence per annum fixed by the Panchayat under Schedule III and IV shall be realised in advance.
Notwithstanding anything contained in the provisions of these rules, no licence is necessary for collecting and processing any material specified in Schedule I if it is for domestic purposes and is in such measures as may be fixed by the Panchayat from time to time.
A license issued under these rules shall be renewed on payment of the fee specified under Schedule II along with a self-certificate from the applicant within thirty days before the end of an year.]
The President shall, where the same owner uses the same place for more than one purpose enumerated in Schedule I, issue one cumulative licence for all such purposes. The Panchayat shall, on the basis of the average daily trade, fix in lump the fee for the cumulative licence in Schedule II.
(1) Every person intending,--
(a) to construct or establish any factory, workshop or workplace wherein it is proposed to use steam power, water power or other mechanical power or electricity; or
(b) to install, on any land a machinery or a manufacturing plant operated by steam power, water power or other power as aforesaid, not being machinery or manufacturing plant exempted under Rule 16, shall submit an application in writing before the 1[Secretary] for permission to undertake such work before so constructing or establishing.
(2) The application shall specify the maximum number of workers proposed to be employed on a day in the factory, workshop, workplace or on the land and shall be accompanied by,--
(i) the plan of the factory, workshop, workplace or the land prepared in such manner as directed by the officer authorised by Government; and
(ii) the details in respect of power, machinery, plant or land that the
(1) Where the nuisance caused is due to noise or vibration created in any factory, workshop or workplace in which steam power, water power or other mechanical power or electricity is used, the 1[Secretary] may issue such directions as it thinks fit for the abatement of such nuisance within a reasonable time to be specified for the purpose.
2[Provided before issue of such directions the secretary shall obtain expert opinion from the department concerned regarding the extend of nuisance caused due to noise, vibration created in any factory, workshop or workplace in which steam power, water power or other mechanical power or electricity is used and the condition to be imposed for abatement of such nuisance.]
(2) Where there has been wilful default in carrying out such directions or where abatement is found impracticable, the 1[Secretary] may, after consultation with the department concerned,--
(a) prohibit the use of the parti
The Government may, either generally or, after consulting the Village Panchayat, in any particular case, make such order or give such direction as they deem fit in respect of any action taken, or omitted to be taken under sub-rule (3) of Rule 12 or Rule 13.
(1) The Secretary or a person authorised in this behalf may,
(a) at any time between sun rise and sun set;
(b) at any time when any industry is being carried on ; and
(c) at any time in the day or in the night, if he has reason to believe that any offence is being committed under Rule 12 or Rule 13; enter any factory or workshop or workplace.
(2) No claim shall lie against any person for any damage or inconvenience necessarily caused by the exercise of powers under this rule or by the use of any force necessary for the purpose of effecting an entrance under this rule.
The following shall be exempted from the provisions of Section 233,--
(1) Electrical goods intended to be used only for domestic or personal purpose or for comfort and electrical machinery intended to be used for such purposes or for comfort;
(2) Non-electrical goods having a capacity of less than two horse power intended to be used only for domestic or personal purpose or for comfort and machinery having a capacity of less than two horse power intended to be used for such purposes or for comfort;
(3) Electrical installations including motor used for agricultural purposes;
(4) Non-electrical installations having a capacity of less than two horse power installed in connection with agricultural purposes;
(5) Normally unattended static transformer stations;
(6) Normally unattended condenser stations;
(7) Normally unattended rectifier stations;
(8) Machinery installed by the Electricity Board for the generation of electricity.
The fee that may be charged for granting permission under Section 233 for installing on a land, any machinery or manufacturing plant operated by electricity, shall not exceed the maximum specified in Schedule III appended to these rules:
Provided that the fee that may be charged under this rule shall not exceed the fee charged for the installation of any machinery or manufacturing plant with the same horse power, operated by any means other than electricity.
The fee that may be charged for granting licence or for the renewal of licence for one year under Section 232 for the place where any machinery or manufacturing plant operated by electricity, is used shall not exceed the maximum specified in Schedule III appended to these rules:
Provided that where any such licence is granted or renewed for a period that is less than one year, the total fee that may be charged for the same place for any year in respect of the same machinery or manufacturing plant shall not exceed the fee that may be charged for granting or renewing licence for one year:
Provided further that the fee that may be charged under this rule shall not exceed the fee charged for the installation of any machinery or manufacturing plant having the same horse power operated by means other than that of electricity.
The maximum fee specified in Schedule III appended to these rules shall be applicable only for the application submitted in due time. In the case of belated applications an additional fee of 25 per cent of the fee for licence payable under the schedule may be charged.
The fee that may be charged for granting permission under Section 233 of the Act for the installation on any land, any machinery or manufacturing plant operated by any power other than electricity shall not exceed the maximum specified in Schedule III appended to these rules.
The fee that may be charged for granting or renewing licence for one year under Section 232 for the place where any machinery or manufacturing plant operated by power other than electricity is used, shall not exceed the maximum specified in Schedule IV appended to these rules:
Provided that where any such licence is granted or renewed for a period that is less than one year, the total fee that may be charged for the same place for any year in respect of the same machinery or manufacturing plant shall not exceed the fee that may be charged for granting or renewing licence for one year.
The maximum fee specified in Schedule IV appended to these rules shall be applicable only for the application submitted in due time. In the case of belated applications an additional fee of 25 percent of the fee for licence payable under the schedule may be charged.
Nothing contained in these rules shall be deemed to empower for the levy of any fee for permission or licence as the case may be, in respect of the installation of machinery or of manufacturing plant exempted from the operation of Section 233.
Every licencee shall obey the following instructions:--
(i) The licencee shall clean the place at the end of every working day;
(ii) The rubbish or animal remains or other substances which fall or are deposited, on any part of the place or land shall be collected and caused to be removed to the satisfaction of the Secretary;
(iii) The licencee shall always cause to keep all portions of the inner walls of every building, the ground and the foot path of the land maintained in good condition to prevent the soaking of any liquid, waste, rubbish or any offensive or dangerous substance that may be splashed or may dabble therein;
(iv) The licencee shall always cause to keep, the drainage channel and the device to drain waste water in the aforesaid land or adjoining thereto maintained in good condition;
(v) No person suffering from skin disease of any kind, leprosy or ulcer shall be employed in any land used for trade;
(vi) Every licencee shal
The President may, if he is convinced that any of the conditions of the licence has been violated or if a Court of Law has convicted the licencee under the protection of Civil Rights Act, 1955 (Central Act 22 of 1955*) and that the offence has been committed in respect of any matter connected with the licence, cancel the licence issued.
The Panchayat shall, for the violators of these rules, impose penalties under Section 255 of the Act.
Schedule I (See Rule 3) | |
1. | Aerated waters, cool drinks- Manufacturing, storing, selling. |
2. | Pandanus fibre and yarn- Storing, packing, cleansing, preparing or selling by hand or otherwise. |
3. | Preparation and selling of ammunition- Storing, packing, cleansing, preparing, manufacturing or selling by way of process. |
SCHEDULE II | ||
Annual licence fee that may be charged | ||
1. | Micro Enterprises (where the capital investment is not exceeding twenty five lakh rupees in the case of manufacturing sector, and not exceeding ten lakh rupees in the case of service sector) | Rs.500 |
2. | Mini Enterprises (where the capital investment exceeding twenty five lakh rupees and not exceeding one crore rupees in the case of manufacturing sector and | |
SCHEDULE III | |
Maximum fee that may be levied (Rupees) | |
| Rectifier machines necessary for cinema, without considering Horse power | 25 |
| Other machines of not more than one Horsepower | 10 |
| Other machines of more than one Horse power but not more than five Horse power< | |
SCHEDULE IV | |
Maximum fee that may be levied (Rupees) | |
Machines for domestic purpose | Nil |
Other machines of not more than one Horse power | 5 |
Other machines of more than one Horse power but | |
SCHEDULE V [See clauses (a) and (b) of sub-rule (5) of Rule 12] List of Industries which require clearance | ||
1. (a) Manufacture of Battery cells; (b) Manufacture of various parts of bicycles including tyres and tubes; (c) Electric lamps, tube lights and mercury bulbs and metal accessories like reflectors and shades; (d) Manufacture of hand tools, machines, industrial and scientific instruments where cutting oil and heat treatment and chromium plating for electroplating are involved; 1. Explosives 2. Fire works 3. Salt peter 4. Spirituous preparation 5. Sulphur 6. Tile Factories 7. Industries using L.P.G. 8. Factory buildings with thatched sheds (1) These rules may be called the Kerala Panchayat Raj 1[(Issue of Licence to Factories, Trades, Entrepreneurship activities and other services)] Rules, 1996. Legal Comments "Introduction" - The Kerala Panchayat Raj (Issue of Licence to Factories, Trades, Entrepreneurship Activities and Other Services) Rules, 1996 govern licensing for dangerous and offensive trades and factories, later amended to cover trades, entrepreneurship activities and other services; Rule 10 deals with renewal. - [Nayampadam Granites Represented By Its Proprietor, Dr. Abraham Sebastian VS Secretary Keralassery Grama Panchayat] "Long title amendment" - The Rules’ long title was amended to reflect the broadened scope from “Dangerous and Offensive Trades and Factories” to include “Trades, Entrepreneurship Activities and Other Services,” aligning Rule 10 with renewal provisions. - [Nayampadam Granites Represented By Its Proprietor, Dr. Abraham Sebastian VS Secretary Keralassery Grama Panchayat] "Regulatory purpose" - Renewal provisions are framed as regulatory measures and revenue sources for local authorities; renewal is intended to facilitate business as a formality, with grounds to revoke/suspend for non-compliance. - [Nayampadam Granites Represented By Its Proprietor, Dr. Abraham Sebastian VS Secretary Keralassery Grama Panchayat] "Deemed licence mechanism" - If the licensing authority does not communicate a renewal decision within 30 days of application, the licence is deemed renewed for the period ordinarily allowed, and renewal/attendance is subject to applicable law, rules and conditions. - [V. SUDHAKARAN VS PALLICHAL GRAMA PANCHAYAT VEDIVACHANKOVIL] "Section 236(3) interplay" - Section 236(3) contemplates deemed renewal for the period for which renewal would ordinarily be allowed, subject to compliance with mandatory requirements; this interacts with Rule 8/Rule 10 framework. - [V. SUDHAKARAN VS PALLICHAL GRAMA PANCHAYAT VEDIVACHANKOVIL] "Five-year licence quantum" - For certain factory/industrial licences, the period is fixed at five years, with five times the annual fee as advance payment under Schedule III/IV; this frames renewal expectations and fee structure. - [Maria Granites VS Thidanadu Grama Panchayat] "Scope of renewal term" - Renewal under Rule 10 (Trade Rules) and Rule 8 provisions contemplates multi-year renewal (often five-year cycles) with fees fixed in schedules; renewal upon payment is central. - [Maria Granites VS Thidanadu Grama Panchayat] "Due process in renewal (NOC/DMO)” - When renewing, Panchayats may seek reports from Fire & Safety Department and the District Medical Officer; absence of negative input or absence of NOC does not by itself invalidate renewal, but negative inputs must be addressed. - [Malabar Granites VS Secretary, Koppam Grama Panchayat] "NOC/PCB interplay at renewal" - If valid Pollution Control Board consent exists, reports from the District Medical Officer may not be warranted; otherwise, the NOC/DMO inputs may guide renewal conditions. - [Malabar Granites VS Secretary, Koppam Grama Panchayat] "Nuisance and due procedure" - Where nuisance or pollution is alleged, Panchayats may act to mitigate, but due procedure is required; mere unsubstantiated allegations cannot sustain added conditions or denial. - [Brandstorm Events Management Represented By Its Managing Partner Mr. Biju A. B. VS Secretary, Maneed Grama Panchayath Maneed P. O. , Ernakulam] "Primacy of Gram Panchayats (post-amendment)” - After legislative amendments, Village Panchayats do not have exclusive primacy to reject licences; if authorities such as PCB/DMO have granted permissions, Panchayats must grant with conditions or refer for expert opinion, rather than reflexively refusing. - [T. P. Abdul Basheer, S/o. Ebrahimkutty VS Cherupuzha Grama Panchayat, Represented by Its Secretary], [Maria Granites VS Thidanadu Grama Panchayat] "Environmental/health integration" - The regime recognizes overarching environmental/health considerations (PCB, DMO, ECs) but cautions that these inputs must be integrated through proper legal channels and expert input rather than arbitrary refusals. - [T. P. Abdul Basheer, S/o. Ebrahimkutty VS Cherupuzha Grama Panchayat, Represented by Its Secretary], [01500046049] "Green Channel and appeals" - Green Channel Committee decisions are binding; parties can challenge via established appellate pathways, including the Green Channel process, with directions to decide expeditiously. - [Sinoj Thomas, S/o. Thomas VS Balal Grama Panchayat, Represented by the Secretary], [Baby Mathew VS Nellikkuzhi Grama Panchayath] "Regulatory-fee framework" - Licence fees under Rule 7, Schedule II, and Schedule III/IV reflect a regulatory charge tied to turnover/capacity; belated applications attract additional fees (e.g., 25%) under Rule 19, reinforcing the regulatory character rather than a tax. - [Cochin Refineries Ltd. VS Vadavukode Puthencruiz Grama], [Indian Oil Corporation Ltd. VS Thenhipalam Grama Panchayat], [K. J. Byju VS Mundathikkodu Gramapanchayath] "Deemed licence limits and police protection" - Even where deemed licences exist, they cannot substitute for an actual licence to operate; police protection will not be accorded for unauthorised operation based solely on a deemed licence. - [Mohanan VS Sub Inspector of Police] "Gazette publication not strictly mandatory" - Publication in the Government Gazette is not the only mode to implement D&O Rules; notices/affixture/advertisements under Rule 4 suffice to notify dangerous/offensive trades, avoiding a strict Gazette requirement. - [T. K. Shanoj VS Wandoor Grama Panchayath, Represented by its Secretary, Wandoor, Malappuram District] "Penalty framework for violations" - Violations of licensing provisions may attract penalties under Sections 255 and 264, and penalties can be imposed by the Panchayat itself or by a court; no automatic deferment of penalties is implied by renewal. - [Mallappally Grama Panchayath, represented by its Secretary VS Zeenath Beevi] "Renewal timing and 30-day window" - Renewal applications must be processed within the statutory 30-day window; failure to decide within the period can give rise to deemed renewal, but renewals remain contingent on compliance and conditions. - [Abdul Rasheed VS Pariyaram Grama Panchayat], [V. SUDHAKARAN VS PALLICHAL GRAMA PANCHAYAT VEDIVACHANKOVIL] "Building/building-permit considerations" - For projects like hot-mix plants and similar setups, building permit considerations under Kerala Building Rules may be triggered; the Secretary’s permission is necessary for temporary installations, and grant does not preclude subsequent building-permit requirements. - [Jolly George S/o Late George VS George Elias and Associates], [T. P. Abdul Basheer, S/o. Ebrahimkutty VS Cherupuzha Grama Panchayat, Represented by Its Secretary] "MSME Facilitation Act interaction" - Modern MSME facilitation and related certificates may influence licensing requirements (e.g., temporary vs permanent installations), but licensing undertakings must still meet statutory provisions; authorities may grant or withhold permissions consistent with those frameworks. - [Fertilizers And Chemicals Travancore Limited, Represented By Its General Manager VS Vadavukode Puthencruz Grama Panchayat], [Jolly George S/o Late George VS George Elias and Associates] "Judicial alignment with statutory scheme" - Courts repeatedly stress that Panchayats must follow the statutory scheme (Sections 232, 233, 234 and Rules 3-12) and cannot substitute with mere objections; expert opinions and compliance with environmental/health norms guide decisions. - [NAGAROOR GRAMA PANCHAYATH VS VIJAYAKUMAR V. VIJAYAVILASOM], [NAGAROOR GRAMA PANCHAYATH VS VIJAYAKUMAR V. VIJAYAVILASOM], [Abdul Rasheed VS Pariyaram Grama Panchayat], [Maria Granites VS Thidanadu Grama Panchayat] |
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