(1)

Ļ¯ೇಷ ªಾಜÍ ಪĦΐೆ

Commerce & Industries Department,

Karnataka Government Secretariat,

Vikasa Soudha, Dr. BR Ambedkar Road,

Bangalore - 560001.

Tel. 080-22034625 Fax. 080-22353932

No. CI 66 SPI 2021

Date: 16.10.2023

NOTIFICATION

The draft of the Karnataka Special Investment Region Rules, 2023 which the

Government of Karnataka proposes to make in exercise of the powers conferred by

section 37 of the Karnataka Special investment Region Act, 2022 (Karnataka Act No. 5

of 2023) is hereby published as required by sub-section (1) of section 37 of the said Act,

for the information of all persons likely to be affected thereby and notice is hereby given

that the said draft will be taken into consideration after thirty days from the date of its

publication in the Official Gazette.

Any objection or suggestion which may be received by the State Government

from any person with respect to the said draft before the expiry of period specified

above will be considered by the State Government. Objections and suggestions may be

addressed to the Additional Chief Secretary to Government, Department of Commerce

and Industries, Vikasa Soudha, Dr.B.R. Ambedkar Veedhi, Bengaluru-560001.

DRAFT RULES

1. Title and commencement.- (1) These rules may be called the Karnataka

Special Investment Region Rules, 2023.

(2) They shall come into force from the date of their final publication in the Official

Gazette.

2. Definitions.-(1) In these rules, unless the context otherwise requires,-

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Part – IVA

, 16

, 2023(

, 24,

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BENGALURU, MONDAY, 16, OCTOBER, 2023(AASHWAYUJA , 24, SHAKAVARSHA, 1945)

. 503

No. 503

2

(a) “Act” means the Karnataka Special Investment Region Act, 2022 (Karnataka

Act No. 05 of 2023);

(b) “Form” means form appended to these rules; and

(c) “Non-official member of the Regional Development Authority (RDA)” means

such member of the Regional Development Authority who is neither in the

employment nor holding any office of profit in the Central Government, State

Government or its Agency for the time being in force.

(2) The words and expressions used in these rules but not defined shall have the

same meanings as assigned to them in the Act.

3. Term of office.- (1) The term of office of the Chairperson, the Chief Executive

Officer, the General Manager and the members of the Regional Development Authority

shall be three years.

(2) The term of office of the nominated non-official members shall be three years,

subject to the pleasure of the Government.

4. The qualification of the Chairperson of the Regional Development

Authority.- The minimum qualification for appointment as the Chairperson, must be a

holder of degree in a university recognised by law, with experience of not less than ten

years in Industrial Development or must be a Managing Director or Director or Partner

or Proprietor shall have manufacturing large industry or enterprises running for a

period of not less than five years in the concerned notified Special Investment Region:

Provided that, in case a retired official is appointed he must have served in a cadre

not below the rank of Head of the Department.

5. Conditions of service of the Chairperson of the Regional Development

Authority.- The Chairperson shall be eligible for such salary and allowance admissible

to Head of the Department.

6. The qualification of the Chief Executive Officer and General Manager of

the Regional Development Authority.- (1) The Chief Executive Officer shall have the

following qualifications, namely:-

3

(a) Must be a Bachelor of Engineering in Environmental or Civil or Chemical or

Mechanical or Electrical Engineering or Master of Business Administration with any

engineering background with a minimum ten years experience.

(b) Must have five years of experience in Managerial and Technical capacity of

handling Solid Waste Management or Liquid Waste Management or Water Supply etc.,

in Urban Local Bodies in India or Special Economic Zone or Industrial Towns Facility

run by State or Union Government or registered Private Firm, anywhere in India.

(c) Must have attained the age of thirty five years and not attained the age of 50

years:

Provided that, the Joint Director, District Industries Centre of the concerned

district, may be given additional charge as the Chief Executive Officer.

(2) The General Manager shall have the following qualifications, namely:-

(a) Must be a Bachelor of Engineering or Master of Business Administration with a

minimum five years of experience;

(b) Must have three years of experience in Managerial and Technical capacity in

handling Solid Waste Management or Liquid Waste Management or Water Supply etc.,

in Urban Local Bodies in India or Special Economic Zone or Industrial Town or Facilities

run by State or Union Government or registered Private Firm, anywhere in India.

(c) Must have attained the age of thirty years and not attained the age of forty five

years:

Provided that, the Executive Engineer, Karnataka Industrial Areas Development

Board of the concerned District may be given additional charge as the General Manager.

7.

The condition of service of Chief Executive Officer and General

Manager.- The CEO shall be eligible for such salary and allowances as admissible to a

Joint Director, District Industries Centre of the concerned district and the General

Manager shall be eligible for such salary and allowances as admissible to the Executive

Engineer of Karnataka Industrial Areas Development Board .

4

8.

The condition of service of non-official members of the Regional

Development Authority.- (1) Non-official members shall be eligible for such

allowances as admissible to that of a Group A Senior Scale Officer as per Karnataka civil

Services Rules.

(2) Non-official member shall be eligible for prevailing sitting fees of the

Government subject to changes made by Finance Department from time to time.

9. Disqualification for a non-official member of the Regional

Development Authority.- A person shall be disqualified for being appointed and for

being a non-official member of the Regional Development Authority, if he-

(i) has been adjudged insolvent; or

(ii) has been convicted of any offence involving moral turpitude; or

(iii) is off unsound mind and stands so declare by a competent court; or

(iv) has acquired such financial or other interest as is likely to affect prejudicially

his function as non-official member of the Regional Development Authority;

or

(v) has so abused his position as to render his continuance in office prejudicial to

the public interest.

10. The qualification, tenure of office and other terms and conditions of

the Chairperson and Members of the Dispute Settlement Mechanism.- (1) The

Chairperson of the Dispute Settlement Mechanism shall be a retired Principal District

and Sessions Judge or retired Secretary to Government and retired District and

Sessions Judge or retired Senior Officers of State or Members of the Dispute Settlement

Mechanism shall possess qualification of Bachelor of Law with a minimum ten years of

legal practice or service in the Government.

(2) The term of office of the Chairperson and members shall be three years subject

to the pleasure of the State Government.

(3) The chairperson of Dispute settlement mechanism shall be eligible for such

salary allowances equal to Principal district and sessions judge or Secretary to

Government or Senior Officers of the State and a member shall be eligible for such salary

5

and allowance equal to District and sessions Judge or Secretary to Government or Senior

Officer of the State.

11. Disqualification for a non-official member of the Dispute Settlement

Mechanism.- A person shall be disqualified for being appointed and for being a non-

official member of the Dispute Settlement Mechanism, if he-

(i) has been adjudged insolvent; or

(ii) has been convicted of any offence involving moral turpitude; or

(iii) is off unsound mind and stands so declare by a competent court; or

(iv) has acquired such financial or other interest as is likely to affect prejudicially

his function as non-official member of the Dispute Settlement Mechanism; or

(v) has so abused his position as to render his continuance in office prejudicial to

the public interest.

12. The assessment, imposition and recovery of property tax by the

Regional Development Authority.- (1) The Regional Development Authority shall be

competent to levy property tax on all buildings and lands situated within the Special

Investment Region as per the provisions of the Karnataka Gram Swaraj and Panchayat

Raj Act, 1993 (Karnataka Act 14 of 1993), the Karnataka Municipalities Act, 1964

(Karnataka Act 22 of 1964), the Karnataka Municipal Corporations Act, 1976

(Karnataka Act 14 of 1977), the Bruhat Bengaluru Mahanagara Palike Act,

2020 (Karnataka Act 53 of 2020) or rules made their under or Planning Authority or

byelaws framed thereunder, from which the concerned Special Investment Region is

carved out. The rules applicable to the concerned local authority shall be mutatis

mutandis applicable to the Regional Development Authority for assessment, imposition

and recovery of taxes.

(2) The Regional Development Authority may reduce or vary the property tax

depending on the revenue subject to approval of Apex Authority.

6

13. Budget estimates of the Regional Development Authority.- (1) The

Budget estimates of the Regional Development Authority shall be in Form-1 and the

Program of work shall be in Form-2.

(2) The Regional Development Authority shall forward the same to the State

Government, for approval, with its Programme of work, a note giving history and

description of each scheme including inter-alia, the progress made, expenditure

incurred and sums secured in the previous years in respect of continuing schemes. The

note shall be in particular bring out the financial implications of each scheme.

14. Manner and form of maintenance of accounts.- (1) The accounts of the

Regional Development Authority shall be prepared and maintained in double entry

system of book keeping.

(2) The Regional Development Authority shall have and maintain its own funds and

to which be credited,-

(a)

all moneys received by the Regional Development Authority from the

Government by way of grants, loans, advances or otherwise and also the

money borrowed from other sources;

(b)

all taxes, levies, tolls, fees, rent, profits, costs and charges received by the

Regional Development Authority under the Act or under the provisions of

any law made applicable to the Special Investment Region; and

(c)

all moneys received by the Regional Development Authority from the

disposal of land, buildings and movable properties and from other

transactions.

(2) The annual statement of accounts of the Regional Development Authority shall

be maintained in the double entry system, in accordance with the principles of

commercial accounting in Form 3.

By Order and in the name of the

Governor of Karnataka,

(NAGARATHNAMMA .G)

Desk Officer (Technical Cell),

Commerce & Industries Department.

7

FORM-1

(see sub-rule (1) of rule 13)

I.

Budget Estimates of the Regional Development Authority

Revenue Receipts

(Rs. in Lakhs)

Sl.

No

Sub-Heads

Budget

Estimates

(For the

Current Year)

Actuals

(For the

Current

Year)

Revised

Budget

(For the

Current

Year)

Budget

Estimates

(For the Next

Year)

1

Water Supply Charges

2

Interest from Allottees

3

Board Service Charges

4

Rent on Building

5

Forfeiture of DLP and E.M.D.

6

Fines, Penalties etc.

7

Sale of Application Forms/Tender Forms

8

Taxes / Fees / Maintenance Charges etc

9

Interest on Short Term/ Flexi Deposits

10

Miscellaneous Receipts (Transfer, Dev.

Charges,Bldg Plan, etc)

Total

8

II.

Budget Estimates of the Regional Development Authority

Revenue Expenditures

Sl.

Sub-Heads

Budget

Estimates

Actuals

Revised

Budget

Budget

Estimates

No.

(For the

Current

Year)

(For the Current

Year)

(For the

Current

Year)

(For the Next

Year)

1

Salary & Allowance

2

Pension and Leave Salary Contribution

3

Contribution of RDA to the Staff

4

Maint. & Repair of Tools

5

Remuneration to Legal Advisors and

Legal Charges

6

Books, Maps & Periodicals

7

Advertisement Expenses

8

Consultancy & Accounts Processing

Charges

9

Board/Sub Committee & Other

Meeting Expenses

10

Entertainment Expenditure

11

Printing & Stationery Charges

12

Electricity Charges

13

Water Charges

14

Telephone Charges

15

Postage & Telegraph

16

Travelling Expenses

17

Reimbursement of Medical Expenses

18

Rent on Building

9

19

Maint. of Avenue Plants, Pumphouse,

Roads, Drains, Water Supply, Street

Lights etc in the Indl.Areas.

20

Miscellaneous Expenses

21

Liveries to Group 'D' Employees

22

Gratuity

23

Labour Charges through Security

Agency

24

Conveyance and Taxi Hire

25

Ex-Gratia

26

Audit Fees

27

Training - Officers & Staff

28

CM Relief Fund, Calamity Fund,

Donation

Total

Revenue Surplus/Deficit

III.

Budget Estimates of the Regional Development Authority

Capital Receipts

(Rs. in Lakhs)

Sl.

No.

Sub-Heads

Budget

Estimates

Actuals

Revised Budget

Budget

Estimates

(For the

Current Year)

(For the Current

Year)

(For the Current

Year)

(For the Next

Year)

1

Funds from Govt of Karnataka

2

Funds from Govt of India

3

Deposit for Lease of Plots - IA

4

Deposit for Housing Sites and Tenements

5

EMD / SD from Contractors

6

Recovery of Loans and Advances from Staff

10

7

Deposit for Contribution works

8

Other Capital Receipts

Total

Opening Balance of the Receipts

Revenue Receipts for the year

Capital Receipts for the year

Total Receipts as at the end of the year

IV. Budget Estimates of the Regional Development Authority

Capital Expenditures

Sl.

No.

Sub-Heads

Budget Estimates

(For the Current

Year)

Actuals

(For the Current

Year)

Revised Budget

(For the Current

Year)

Budget Estimates

(For the Next Year)

Spill Over Works :

(a) Regular Works

(b) Upgradation works

Fresh Works :

(a) Regular Works

(b) Upgradation Works

(c) Deposit Contribution Works

Total Developmental Expenditure

Land Acquisition SIR

Total land Compensation

1

Other Capital Purchases including Software Development.

2

Advances to Staff

3

Deposit with BWSSB and DB, KPTCL and other

institutions

4

Refund of Deposit for lease of plots to Allottees and

SD/EMD to Contractors / IT Board

Total of other capital expenditure

Grand Total

Total Receipts as at the end of the year

Total Expenditure for the year

Overall Surplus/Deficit on Capital Account as at the end

of the year

11

ABSTRACT OF BUDGET ESTIMATES FOR THE YEAR--------------

(Rs. in Lakhs)

Particulars

Budget Estimates

(For the Current

Year)

Actuals

(For the Current

Year)

Revised Budget Estimates

(For the Current Year)

Budget Estimates

(For the Next Year)

Revenue Receipts

Capital receipt

Total Receipts

Revenue Expenditure

Capital Expenditure

Total Expenditure

Surplus on Revenue Account for the

Year

Balance of the Receipts at the beginning

of the year

Total Receipts for the year

Total Receipts as at the end of the year

Total Payments for the year

Overall Surplus on capital account at

the end of the year

12

FORM -2

(see sub-rule (1) of rule13)

ANNUAL PROGRAMME OF WORKS

Sl.No.

Name of Scheme

Estimated cost of the

work

Estimated expenditure in

the year for which

programme is proposed

Estimated receipts

Salient features

Amenities and

facilities to

industries

1

2

3

4

5

6

13

FORM - 3

(see sub-rule (2) of rule 14)

Annual Statement of Accounts

INCOME AND EXPENDITURE ACCOUNT OF RDA FOR THE YEAR ENDED _________________

PREVIOUS

YEAR

Rs. in lakhs

E X P E N D I T U R E

SCH

No.

CURRENT

YEAR

Rs. in lakhs

PREVIOUS

YEAR

Rs. in lakhs

I N C O M E

SCH

NO.

CURRENT YEAR

Rs. in lakhs

To

Repairs &

Maintenance

By

Sale of Application

Forms

To

Administrative

Expenses

By

Recoveries of Fines

and Penalties

To

Water & Electricity

Charges

By

Interest Received

To

Special Charges

By

Other Receipts

To

Depreciation

By

Rent Received

To

Prior Period

Adjustment

By

Forfeiture of Deposits

To

Excess of Income over

Expenditure

By

Water Supply

Charges

By

Gain on Disposal of

Land

To

Other charges

By

Taxes, fees, charges

etc.

To

Interest on Loans

By

Grants from

Government

GRAND TOTAL

GRAND TOTAL

14

BALANCE SHEET OF RDA AS ON ___________

PREVIOUS YEAR

Rs. in lakhs

L I A B I L I T I E S

SCH

No.

CURRENT

YEAR

Rs. in lakhs

PREVIOUS

YEAR

Rs. in lakhs

A S S E T S

SCH

NO

CURRENT

YEAR

Rs. in lakhs

Grants from Central

and State Governments

Assets with Name

of SIR

Reserves and Surplus

Development of

SIR

Unsecured Loans

Fixed Assets

Current Liabilities

and Provisions

Investments

Current Assets,

Loans and Advances

GRAND TOTAL

GRAND TOTAL

(NAGARATHNAMMA .G)

Desk Officer (Technical Cell),

Commerce & Industries Department.

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Date: 2023.10.16 17:21:45 +05'30'