The KARNATAKA SPECIAL INVESTMENT REGION ACT, 2022
KARNATAKA ACT NO 05 OF 2023
An Act to establish, operate, regulate and manage the large or Mega orSuper Mega size Investment Regions and Industrial Areas or clusters in theState of Karnataka and to retain position of Karnataka as a globalmanufacturing hub, specially enabling economic activity, supported byworld class infrastructure, premium civic amenities, centres of excellenceand proactive policy framework and for setting up an organizationalstructure with that purpose and for the matters connected therewith orincidental thereto, for the purposes hereinafter appearing;Be it enacted by the Karnataka State Legislature in the seventy thirdyear of the Republic of India, as follows:-
Be it enacted by the Karnataka State Legislature in the seventy thirdyear of the Republic of India, as follows:-
Read full Act(1) This Act may be called theKarnataka Special Investment Region Act, 2022.
(2) It shall come into force on such date as the State Governmentmay, by 1[notification]1, in the official Gazette appoint.
In this Act, unless the context otherwise requires,-
(a) “Amenities” means basic and essential services including but notlimited to road, bridge, by-pass and underpass, drainage, water supply,collection-treatment-discharge and disposal of industrial, institutional andtownship waste, health, education, transport, disaster management, parks,green areas, gas pipeline, entertainment, hospitality, recreation, industrialparks, townships, institutional areas and other facilities of conveniences asthe Apex Authority may specify;
(b) “Apex Authority” means the Special Investment Region ApexAuthority constituted under section 5;
(c) “Award of project” means awarding, allocating, assigning,transferring and leasing a project or work for execution, operation,management or maintenance under this Act;
(d) “Concession agreement” shall have the same meaning as assignedto it in the Public Private Partnership Projects;
(e) “Developer” means a person or en
(1) The StateGovernment may, by notification in the official Gazette, declare an existingor proposed investment region or industrial area to be a Special InvestmentRegion and determine the geographical area of the Special InvestmentRegion for carrying out the purposes of this Act.
(2) An investment region or industrial area declared as a SpecialInvestment Region may be known with the name of its location or itspredominant economic activity.
(3) Every notification issued under sub-section (1) shall be laid beforethe State Legislature, as soon as may be possible, after it is issued.
(1) A Special Investment Region declared under this Act,shall cease to be under the jurisdiction of a local authority to the extent itrelates to the provisions made under this Act.
(2) While preparing the development plan for the Special InvestmentRegion, the Regional development authority shall take into account thedevelopment plan if any, prepared by the respective local authority for theconcerned village site area (gramtana) of the village panchayat, municipalarea, municipal corporation, Bruhat Bengaluru Mahanagara Palike area,Planning Authority, Metropolitan Planning Committee or BMRDA and theadjacent area thereof:
Provided that, the Government may declare the adjacent area of avillage panchayat, municipality, municipal corporation or Bruhat BengaluruMahanagara Palike, from time to time.
The Karnataka IndustrialArea Development Board (KIADB), established under section 5 of theKarnataka Industrial Areas Development Act, 1966 (Karnataka Act 18 of1966), shall be the Special Investment Region Apex Authority, hereinaftercalled Apex Authority, for the purposes of this Act.
(1) The Apex Authorityshall exercise all powers conferred on it and discharge all functions assignedto it for any Special Investment Region declared under the provisions of thisAct.
(2) Without prejudice to the generality of foregoing powers, the powersand functions of the Apex Authority shall also include the following,namely:-
(i) to make regulations to give effect to the provisions of this Act;
(ii) to make regulations for development, operation, regulation andmanagement of the Special Investment Regions within the State andfor development of infrastructure within the Special InvestmentRegion;
(iii) to approve, with or without modification, the plan for use of land inthe Special Investment Region or its peripheral area on receipt of theproposal from Regional development authority;
(iv) to approve, with or without modification, the development plan, thetown planning scheme and the general development regulationsprepared and proposed b
(1) The Apex Authority may appoint an Executive Committee and suchother committees and sub-committees consisting of such number ofmembers for efficient performance and exercise of its powers conferredunder this Act, as may be specified by regulations.
(2) The Apex Authority may, instead of appointing an ExecutiveCommittee under sub-section (1), designate the executive of the KarnatakaIndustrial Area Development Board to be the Executive Committee of theApex Authority for the purposes of this Act:
Provided that, the core functions of the Apex Authority such asapproval and modification of development plan, town planning scheme andthe general development regulations shall not be delegated to any committeeof the Apex Authority.
(1) The StateGovernment may, by notification, constitute a Regional developmentauthority for the Special Investment Region area declared under section 3.
(2) Every Regional development authority constituted under sub-section (1), shall be a body corporate and shall have perpetual successionand a common seal, with power to acquire, hold and dispose off movableand immovable property and to contract, and by the said name, to sue andbe sued.
(3) Notwithstanding anything contained in section 10 and 11, theState Government may, instead of constituting a Regional developmentauthority for a Special Investment Region or an industrial area, designate aGovernment agency or a Government company as the Regional developmentauthority and empower it to exercise all the powers and perform all thefunctions as specified under section 15.
The headquarters of the Regional development authority shall be at such placeas the State Government may, by notification, specify.
The Regional development authority shall consist of the following members,namely:-
(i) the Chairman - to be appointed by the State Government;
(ii) the Chief Executive Officer - to be appointed by the StateGovernment;
(iii) the General Manager - to be appointed by the State Government;
(iv) two officials of the State Government - to be nominated by the StateGovernment as ex-officio member and one of them shall be a GroupA Officer of the Town Planning, nominated by the Director, Town andCountry Planning Department;
(v) an officer to be nominated by the Apex Authority;
(vi) a person having experience in administration to be nominated by theState Government;
(vii) a person having experience in land acquisition and dealing with postland acquisition issues nominated by the State Government;
(viii) two non-officials who possess experience in area development andregional planning to be nominated by the State Government;
(1)The term of office and conditions of service, qualification and disqualificationof the Chairperson, the Chief Executive Officer and non official members ofRegional development authority shall be such, as may be prescribed.
(2) The appointment, remuneration, allowances and conditions ofservices of the officers and employees of the Regional development authorityshall be such, as may be specified by regulations.
The Regional development authority shall meet atsuch time and at such place as the Chairperson may determine:
Provided that, the procedure with regard to transaction of business ofits meetings, and quorum of such meeting shall be, as may be specified byregulations by the Apex Authority in consultation with the State Government.
The Regional developmentauthority may constitute an Executive Committee and such othercommittees consisting of such number of its members for performance of itsfunctions as may be specified by regulations:
Provided that, the core functions of the Regional developmentauthority such as preparation of the development plan, town planningscheme and the general development regulations shall not be delegated toany committee of the Regional development authority.
No act or proceedings of theRegional development authority and any of its committees shall be invalid orvitiated merely by reason of,-
(a) a vacancy therein or any defect in the constitution thereof; or
(b) an irregularity in its procedure not affecting the merit of the case.
(1) The Regional development authority shall secure planneddevelopment of the Special Investment Region and shall take steps for itseffective regulation and efficient management so as to bring and enhancegeneral welfare, convenience, productivity and excellence.
(2) Without prejudice to the generality of foregoing provisions, theRegional development authority shall undertake the management andplanning of land resource and infrastructure of the Special InvestmentRegion.
(3) The Regional development authority shall, in particular, exercisethe following powers and perform the following functions, namely:-
(i) to classify and earmark the area of the Special Investment Region forvarious purposes and usages including economic activities,amenities and community services as it deems fit;
(ii) to prepare the development plan for whole or part of the area of theSpecial Investment Region;
(iii) to undertake preparation and execution of town planni
(1) No person or entityshall erect or occupy any building or structure in the Special InvestmentRegion in contravention of any building norms made by the Regionaldevelopment authority.
(2) Notwithstanding anything contained in any other law, for the timebeing in force, no person or entity shall erect or occupy any building orstructure within the Special Investment Region, except with the previouspermission of the Regional development authority.
(3) A person desiring to undertake building operations or erection oroccupation of any building or structure in the Special Investment Regionreferred to in sub-section (2), shall seek prior permission of the RegionalDevelopment Authority in such manner, as may be specified in regulations.
(4) The Regional development authority may, after making suchinquiry as it deems necessary, grant permission on such conditions, as itmay be specified in regulations or refuse to grant such permission.
(5) (a) Any pers
(1) The provisions of the Karnataka Town and Country Planning Act1961 (Karnataka Act 11 of 1963), shall mutatis mutandis, apply withrespect to the development plans and to the town planning schemes madeunder this Act.
(2) The powers exercised by the State Government for sanctioning ofdevelopment plans and town planning schemes under the Karnataka Townand Country Planning Act, 1961 (Karnataka Act 11 of 1963) shall beexercised by the Apex Authority.
(3) The Regional development authority shall be the PlanningAuthority for the area comprising of the Special Investment Region for thepurposes of the Karnataka Town and Country Planning Act, 1961(Karnataka Act 11 of 1963), as so applied to this Act.
(1) The Apex Authority shall be the single point of contact forstarting any economic activity or setting up a unit, amenity or infrastructurein the Special Investment Region.
(2) Any person who intends to start an economic activity or set up aunit, amenity or infrastructure project in the Special Investment Region orwho intends to undertake integrated development as under the provisions ofsection 23, shall make a proposal in that regard to the Apex Authority or theagency specified by it, in such form containing such particulars and in suchmanner and along with such fee, as may be specified by regulations, by theApex Authority.
(3) The Apex Authority or the agency specified by it, on receipt of aproposal made under sub-section (2), shall examine the same and approvewith or without modification or disapprove the proposal and shallcommunicate its decision to the concerned person and the Regionaldevelopment authority, as early as possible.
(4) The Region
(1)Notwithstanding anything contained in this Act or the rules or regulationsmade there under, units and amenities set up in a Special Economic Zoneand falling under the Special Investment Region shall continue to begoverned by the Special Economic Zone Act, 2005 (Central Act 28 of 2005)and shall avail the benefits under the concerned policy.
(2) The Developer of the Special Economic Zone shall take intoaccount the development plan prepared by the Regional developmentauthority while finalizing the infrastructure within and adjacent to theSpecial Economic Zone and its peripheral area declared under the SpecialEconomic Zone Act, 2005 (Central Act 28 of 2005).
(1) The State Government may setup or designate a Government agency, including a Government company,formed under the Companies Act, 2013 (Central Act 18 of 2013) as theproject development agency and assign it the powers and functions relatingto project development of a Special Investment Region, including thosespecified in sub-section (5).
(2) The State Government may form or designate a nodal Governmentcompany or agency out of the project development agencies and companiesmentioned in sub-section (1), to act as the project development agency forprojects relating to all the Special Investment Regions in the State.
(3) The nodal Government company or agency shall carry out itsfunctions under general or specific directions of the Apex Authority andshall assist the Apex Authority and the State Government in undertakingproject related task.
(4) The nodal Government company or agency shall act in close co-ordination with the Apex Authority and shall give
(1) The Regional development authoritymay transfer the possession of its assets, including the land granted by theState Government, its agencies or local authority, as the case may be, to aGovernment company for development of infrastructure and amenities inthe Special Investment Region, with the approval of Apex Authority.
(2) Public assets, including land and rights thereon shall be givenpossession or conferred to a private entity for a project as per agreement oras the case may be, for the purpose of development of infrastructure andamenities in the Special Investment Region as per the concession agreementapproved under Public Private Partnership guidelines.
(1) The Regional developmentauthority may enter into agreement with a developer for carrying out anyproject or work in the Special Investment Region:
Provided that, in case of infrastructure projects, the process ofselection of a developer shall be as stipulated in the prevailing Public PrivatePartnership Policy for Infrastructure Projects for the State of Karnataka, in atransparent manner.
(2) Without prejudice to the generality of the foregoing provisions, theRegional development authority may enter into a joint venture agreementwith another Government company or another developer or entity to form aspecial purpose entity for developing or managing a particular project in theSpecial Investment Region, with prior approval of the Apex Authority:
Provided that, while entrusting the project to a developer or a privateentity, it shall be done in a transparent manner.
A person or an entity, having under his possession,the minimum contiguous area in the Special Investment Region as specifiedby the Apex Authority, from time to time and intending to undertakeintegrated development of the said area with economic activity andamenities, may apply to the Apex Authority or the agency specified by it, asper the procedure under section 18:
Provided that, such development shall be subject to the developmentplan, the general development regulations and such other conditions as theApex Authority or the agency specified by it, may deem fit.
(1)Subject to any general or specific directions of the State Government or theApex Authority, the Regional development authority shall be the primaryagency for allocating and handing over the premises, land and amenities tothe units, amenities and infrastructure projects being set up in the SpecialInvestment Region.
(2) The Regional development authority shall offer the land, premisesand amenities within the Special Investment Region to the concerned unit orperson on such terms and conditions and after levying such charges as maybe specified by regulations or as directed by the Apex Authority or theagency specified by it.
(3) The Regional development authority shall make provisions andtake steps for recovery of dues, rent and charges from the occupants ofpremises and amenities in the Special Investment Region.
(4) The pending dues, if any, on proposal and certification in thisregard by the Regional development authority, shall be recovered orcollect
(1) Where the Regional Development Authorityis of the opinion, that an allottee of any premises or part thereof orresidential tenement in an Special Investment Region has violated any of theterms or conditions of allotment or holds it without any authority, issuenotice to such allottee and Banks or Financial Institutions, in whose favourthe Regional Development Authority has permitted the mortgage orleasehold rights of the premises, or residential tenement specifying thebreaches of the terms and conditions of the allotment calling upon theallottee to remedy such breaches within the time, stipulated in the notice.
(2) If the allottee fails to remedy the breaches within the time sostipulated, the Regional Development Authority shall serve a notice upon theallottee under intimation to such Bank or Financial Institution to showcause within thirty days from the date of service of notice, why thepossession of the premises or part thereof or residential tenement shouldno
Without prejudice to the jurisdiction of any court of law and to the provisions of theArbitration and Conciliation Act, 1996 (Central Act 26 of 1996) an internalDispute Settlement Mechanism for the purposes of this Act shall be asfollows, namely:-
(i) the Regional development authority shall set up a GrievancesRedressal Committee comprising of such number of its membersand officers as may be decided by it to redress the grievances andresolve the dispute originating from any stakeholder in the SpecialInvestment Region.
(ii) any person aggrieved by the decision of the Grievances RedressalCommittee may appeal to the Dispute Resolution Forum set up bythe Apex Authority, comprising of such number of members andofficers as may be decided by it.
(iii) for the purpose of deciding the dispute, the Grievances RedressalCommittee and the Dispute Resolution Forum shall frame theguidelines, including the time frame in this regard and follow theprinciples of natura
(1) The State Governmentmay, by notification, form a Dispute Settlement Mechanism consisting of such number of member as may be specified by it, to deal with the disputesagainst the Regional development authority or those arising in any mannerin the Special Investment Region and brought before it or those whichcould not be resolved or settled by the Grievances Redressal Committee andDispute Resolution Forum.
(2) The qualification, tenure of office and other terms and conditions ofthe Chairperson and members of the Dispute Settlement Mechanism shallbe such, as may be prescribed.
(3) For the purpose of deciding the dispute, the Dispute SettlementMechanism shall frame the guidelines, including the time frame in thisregard and follow the principles of natural justice while dealing with thedispute.
(4) The order passed by the Dispute Settlement Mechanism shall befinal.
(1) The StateGovernment may, by notification, declare the whole or any part of theSpecial Investment Region to be controlled area for the purposes of this Act.
(2) No land within the controlled area shall, except with thepermission of the Regional development authority, be used for purposesother than those for which it was used on the date of notification under sub-section (1).
(3) Notwithstanding anything contained in any relevant law, no localauthority or the Government agency shall grant any permission for anydevelopment work or sanction any project including those referred to in sub-section (2) unless the Regional development authority has given specificapproval for the same.
(4) No person shall erect any building or make or extend anyexcavation or lay out any means of access to a road, in the controlled area,save with the previous permission of the Regional development authorityand in accordance with the development plan and guidelines or regula
(1)Notwithstanding anything contrary contained in any other law in force, thearea within the Special Investment Region, except the village site area(gramtana) of a village panchayat, municipal area and municipal corporationor Bruhat Bengaluru Mahanagara Palike area shall deemed to be anindustrial township within the meaning of the provisions of clause (1) ofarticle 243Q of the Constitution of India, from the date it is so notified in theofficial Gazette, by the State Government.
(2) On and from the date of notification under sub-section (1), subjectto prior permission and any general or special orders which the StateGovernment may make in this behalf, the Regional development authorityshall act as the authority for local administration, taking decisions andsteps for assessment, imposition and recovery of taxes under this section,for the said region and no other local authority shall have jurisdiction forthis purpose.
(3) The assessment, imposition and recov
The Regional development authority shall have and maintain its own fund. All the sumspaid to and collected by the Regional development authority shall be carriedto the fund of the Regional development authority and all payments shall bemade there from.
(1) The accounts of the Regionaldevelopment authority shall be prepared and maintained in such form andin such manner, as may be prescribed.
(2) The accounts of the Regional development authority shall beaudited by an auditor duly qualified to act as an auditor of the companiesunder the Existing provisions of the Companies Act, 2013 (Central Act 18 of 2013).
(1) The Regional development authority shall,during each financial year, prepare an annual report giving a true and fullaccount of its activities during the previous financial year and an account ofthe activities likely to be undertaken by it in current financial year,in consultation with the Apex Authority and submit it to the StateGovernment.
(2) The State Government shall cause every such report along with theaudited annual accounts for the year to be laid before the State Legislature,as soon as may be after the receipt of the report under sub-section (1).
Save as otherwise provided inthis Act, the provisions of this Act shall have effect, notwithstandinganything inconsistent therewith contained in any other State laws for timebeing in force.
The land needed for thepurposes of a town planning scheme, development plan or an infrastructureproject under this Act shall deemed to be the land needed for public purposeunder clause (za) of section 3 of the Right to Fair Compensation andTransparency in Land Acquisition, Rehabilitation and Resettlement Act,2013 (Central Act 30 of 2013).
All members, officers and employees of the Apex Authority, the RegionalDevelopment Authority, the nodal company and other Government companyor project development agency shall, while acting or purporting to act inpursuance of the provisions of this Act or the rules and regulations madethere under, be deemed to be public servants within the meaning of section21 of the Indian Penal Code, 1860 (Central Act 45 of 1860).
No suit, prosecutionor other legal proceeding shall lie against the Apex Authority, the RegionalDevelopment Authority, nodal company, other Government company orproject development agency or any of their committees, members, officersand employees, for anything which is done in good faith or intended to bedone in pursuance of the provisions of this Act or any rules and regulationsmade there under.
(1) The State Government may, bynotification, after previous publication make rules to carry out the purposesof this Act, including the following, namely:-
(i) the term of office and conditions of service of the Chairperson, theChief Executive Officer and members of Regional development authority;
(ii) the qualification, tenure of office and other terms and conditions ofthe Chairperson and members of the Dispute Settlement Mechanism; and
(iii) the form and manner in which the accounts of the Regionaldevelopment authority shall be prepared and maintained.
(2) In particular and without prejudice to the generality of theforegoing powers, such rules may be made for determining any other powersand functions of the Regional development authority and the Apex Authorityconstituted under this Act.
(3) Every rule made under this Act shall be laid as soon, as may beafter it is made before each House of the State Legislature while it is insession f
(1) The StateGovernment may issue directions of a general nature as it may thinknecessary or expedient for the purpose of carrying out the purposes of thisAct, to the Apex Authority, Regional development authority or any agency orentity connected with the activities under this Act or to any person or bodyinvolved in the development, operation and implementation of the projects inthe Special Investment Region or connected therewith.
(2) Every direction issued by the State Government under sub-section(1), shall be binding on the respective authority, Regional developmentauthority, agency, entity, body or person.
The Apex Authority may with priorapproval of the State Government, make regulations not inconsistent withthe provisions of this Act and the rules made there under to carry out thepurposes of this Act and for enabling it to discharge its functions under thisAct, including the following, namely:-
(i) for development, operation, regulation and management of theSpecial Investment Regions within the State and for development ofinfrastructure within the Special Investment Region;
(ii) for appointment, remuneration, allowances and conditions ofservices of the officers and employees of the Regional development authority;
(iii) form, particulars, manner and fee of proposal by a person whointends to start an economic activity or set up a unit, amenity orinfrastructure project in the Special Investment Region or who intends toundertake integrated development.
(1) If anydifficulty arises in giving effect to the provisions of this Act, the StateGovernment may, by order, make such provisions not inconsistent with theprovisions of this Act, as appears to be necessary or expedient for removingthe difficulty:
Provided that, no order shall be made after the expiry of two yearsfrom the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as maybe after it is made, before the State Legislature.
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