The Gujarat Micro, small and Medium Enterprises (Facilitation of Establishment and operation) Act, 2019

Extra No.27 c{il{g qc{t%q,il €,? lt. t,oool_ @be Guiurnt @ffiIrnr ent Gutette EXTRAORDIIVARY PUBLISHED BY AUTHORITY separate paging is gi PART IV Acts of Gujarat Legisrature and ordinances promurgated and Regurations made by the Governor. The following Act o.f the Gujarat Lrgislature, having been assented to by the Governor on the r6th December, zo-tq i, rr"*uy p-"irished for general information. iffi'ffi,:"Jl;.ff ' GUJARAT ACT NO. 26 OF 2019. (First published, after having received the assent of the Governor, in the "Gujarat Government Gazette'i on the tz* o"".-u"r, z0rg). AN ACT to provide for exemption from certain approvals and inspections for establishment and operation of the micro, small and medium enterprises in the State of Gujarat and matters connected therewith or incidental thereto. It is hereby enacted in the Seventieth Year of the Republic of India as follows:- 1. (l) This Act may be called the Gujarat Micro, small and Short title, Medium Enterprises (Facilitation of Establishment and operation) Act, extent and 2019" commencement. IY-Ex-27 27-1 27-2 GUJARAT GOVERNMENT GAZETTE , EX. 17-12.2019 I PART IV (2) It extends to the whole of the State of Gujarat. (3) It shall be deemed to have come into force on the 24ft october, 20t9" Definitions' 2- In this Act, unless the context otherwise requires:- (a) 'Acknowledgement Certificate,, means the acknowledgement certificate issued under section 5; (b) "approval" means any permissioq no-objectio4 clearance, consent, approval, registration, license and the like, required under any State Law in connection with the establishment or operation of an enterprise in the State of Gujarat; (c) "competent Authority,, means any department or agency of the Government or local authority, statutory body, State owned corporation, panchayati Raj Institution, Municipality, Urban Development Authorities, urban Improvement Trusts or any other authority or agency constituted or established by or under any State Law or under administrative control of the Government, which is entrusted with the powers or responsibilities to grant or issue approval for establishment or operation of an enterprise in the State; (d) "District Level Facilitation committee (DLFC),,means the District Level Facilitation committee constituted under section Guj. 29 of 5 of the Gujarat Single window Clearances Act,2017; 2017. (e) "enterprise" means a micro, small or medium enterprise; (D "Government" means the Government of Gujarat; (e) "micro, small or medium enterprise,, means the Micro, Small or Medium Enterprises, as {efined in the Micro, Small and Medium Enterprises Development Act, 2006; 27 of2006. (h) "nodal agency" means the nodal agency referred to in section 3; PART IV ] GUJARAT GOVERNMEMT GAZETTE, EX. 17.12-2OIg 27-3 (i) "prescribed" means prescribed by rules made under this Act: (') "State" means the State of Gujarat; (k) "Single Window Facilitation Committee (SWFC),, means the Single window Facilitation committee constituted under section Guj.29 of 6 of the Gujarat single window clearances Act,2017; 2017. (l) "undertaking" means a letter to be taken from enterprise under a prescribed format to incrude that the enterprise shalr ensure appropriate labour werfare measures, adequate fire safety and environmental measures as required by the law. 3' (l) subject to superintendence, direction and control of the Nodal Government, the Investor Facilitation Agency (IFA) constituted under Agency. Guj.29 of section 8 of the Gujarat Single window clearances Act, 2lr|shall 2017. be the State level Nodal Agency for the purposes of this Act. (2) subject to superintendence, direction and control of the Government and the District Level Facilitation commiffee, the District Industries centre (DIC) shall be the District level Nodal Agency for the purposes of this Act. 4- (1) Subject to the superintendence, direction and control of the Powers Government, the powers and functions of the nodal agencies srrall be and as follows:- functions of nodal (a) to assist and facilitate establishment of enterprises in the agencies. State: and (b) to maintain the records of declaration of intent received and Acknowledgement certificate issued under this Act. (2) The Government may assign such other powers and functions to the nodal agencies as it may deem fit for glving effect to the provisions ofthis Act. 27-4 GUJARAT GOVERNMENT GAZETTE, EX. I7-12-2OI| I PART IV 5' of Dec F l i a lin ra g t ion' (1) Any person who intends to start an enterprise may fumish to the State level nodal agency a declaration of intent to start an enterprise in such form and in such manner as may be prescribed. Explanation- - Any person who has applied to the competent Authority to obtain all or any of the approvals as referred to in crause (b) of section 2 before the commencement of this Act may also opt to furnish declaration of intent to start an enterprise under this sub- section. (2) on receipt of a declaration of intent, the state level nodal agency shall, forthwith, issue an Acknowledgment certificate, in the prescribed form to the person who fumished the declaration under sub_section (l). 6' (1) An Acknowledgment Certificate issued under section 5 shall for all purposes, have effect as if it is an approval as referred to in clause (b) of A E c ff k e n c o t w o l f e t d h g e ment section 2, for a period of three years from the date of its issuance and after Certificate. the expiry of the said period of three years, the enterprise shall have to obtain required approval as referred to in clause (b) of section 2 within six months from the date of such expiry: Provided that the enterprise may apply for necessary permission under the respective laws within a period of three years from the date of issuance of acknowledgment certifi cate : Provided further that such Acknowledgement certificate shall not entitle a person to use a land in deviation to the land use specified in the master plan wherever such plan is in force: Provided also that the Acknowledgement Certificate shall not entitle a person to use the land falling in restricted category as specified in clause (b) of section 658 of the Gujarat Land Revenue Code, 1g79: Bom. V of Provided also that any agricultural land on which a person wishes to 1879. start an enterprise shall be deemed to be a non-agricultural land under the provisions of section 65B of the Gujarat Land Revenue code. rg79: Bom. V of t879. PART IV ] GUJARAT GOVERNMENIT GAZETTE, EX. I7-12-2OI( 27-5 Provided however that the relaxation shall not be given to the enterprise from the provisions of_ (i) o B f o 1 m 87 . 9 V . section 73AAof the Gujarat Land Revenue Code, lg79; (ii) Bom. o L f X 19 V 48 II . sections 43 and 6344 of the Gujarat Tenancy and Agriculturar Lands Act,l94g; (iii) Bom o . f X 1 C 95 I 8 X . sections 57 and g9A of the Gujarat Tenancy and Agricultural Lands (Vidarbha Region and Kutch Area) Act, l95g; (iv) Sau. O o rd f . 1 X 94 L 9 I . section 55 of the saurashtra Gharkhed, Tenancy settrement and Agricultural Lands Ordinance, 1949. (2) During the period of three years as specified in sub-section (r), no competent authority shall undertake any inspection for the pu{pose of or in connection with, any approval as defined in clause (b) of section 2: Provided that the competent authority shail be empowered to undertake an inspection during the said period of three years in cases where the enterprise has applied for necessary permission under the respective laws within a period of three years from the date of issuance of acknowledgment certificate. 7" where the Government or any authority under it is empowered to exempt any enterprises from any approval or inspection or any provisions Exemption. relating thereto under any central Act, the Government or, as the case may be, any such authority sha[, subject to the provisions of such central Act, exercise such powers to grant such exemption to an enterprise established in the state for at least a period of three years from the date of issue of the acknowledgement certificate issued turder sub-section (2) of section 5. 8' No suit prosecution or other legal proceedings shall lie against the Frotection Government or Nodal Agency or competent Authority or any emproyee of the of action Govemment, Nodal Agency or competent Authority in respect of anything taken in good faith. which is done or intended to be done in good faith under this Act or any rules made thereunder. 27-6 GUJARAT GOVERNMENT GAZETTE, EX. I7-T2-2OI| I PART rv g' (l) "*.1j: The provisions of this Act shal have effect, norwithstanding lj}..: lrtnins inconsistent therewith contained in any other state raw, for the time being in force. (2) rn particular and without prejudice to the generality of the foregoing provisions of this Act, such provisions shall have effect notwithstanding anything inconsistent therewith contained in the following enactments and the provisions of these enactments shall be read as amended in conformity with Bom. v of 1829. the provisions of this Act, namelv:_ Bom. LXVI (a) of 1948. the Gujarat Land Revenue Code, lg79; (b) Bom. LIX the Gujarat Tenancy and Agricultural Lands Act, r94g; of 1949. (c) the Gujarat provinciar Municipal corporations Act, 1949; Saur. Ord. XLI (d) the of 1949. Saurashtra Gharkhed, Tenancy Settlement and Agricultural Lands Ordinance 1949; (e) o B r , t o 1 m 9 . 5 X 8. CIX the Gujarat Tenancy and Agricultural Lands (vidarbha Region and Kutch Area) Act, l95g; (0 Guj.34 oft964. the Gujarat Municipalities Act, 1963; (g) P A r c e t s 2 ii 7 d e o n f t 1 's 976. the Gujarat Town planning and Urban Development Act. 1976; Guj. 18 of 1993. (h) the Gujarat panchayats Act, 1993. l0' savings. Subject to the provisions of section 7, nothing in this Act shall be construed as exempting any enterprise from the application of the provisions of any law for the time being in force, or any regulatory measures and standards prescribed thereunder, except to the extent expressly provided in this Act. 11' Power (1) The state Government may, by notification in the officiar to make rules. Gazette, make rules for carrying out the pu{poses of this Act. Q) All rules made under this Act shall be subject to the condition of previous publication. PART IV J GUJARAT GOVERNMEMT GAZETTE, EX. I7-T2-2OI| 27-7 (3) All rules made under this Act shall be laid for not less than thirty days before the State Legislature as soon as may be after they are made and shall be subject to rescission by the state Legislature or to such modifications as the State Legislature may make during the session in which they are so laid or session immediately following. (a) Any rescission or modification so made by the State Legislature shall be pubrished in the officiar Gazette,and shall thereupon take effect. 12" (l) If any difficulty Act' the Govern arises in giving effect to the provisions of this order published in the ofiicial Gazette,-;; provisions :""J""J". such ent with the provisions of this Act, as may difficutties. appear to it to for removing the diffrculty: Provided that no such order under this section shalr be made after the expiry of a period of two years from the commencement of this Act. (2) Every order made under sub-section (l) shall be laid, as soon as may be, after it is made before the State Legislature. 13" Guj. Orrd. I (1) The Gujarat Micro, Small and Medium Enterprises (Facilitation Repeat and of "t019- of Establishment and operation) ordinan ce,20L9 is hereby repealed. savings. @ Notwithstanding such repeal, anything done or any action taken under the said ordinance, shall be deemed to have been done or taken under this Act. GovERNIIGNT Crvrner pnrss, GenoHrvncen.