(1)

Ļ¯ೇಷ ªಾಜÍ ಪĦΐೆ

No. CI 66 SPI 2021

Date: 18.12.2023

NOTIFICATION

Whereas, the Draft of the Karnataka Special Investment Region Rules, 2023 was

published as required by sub-section (1) of section 37 of the Karnataka Special

Investment Region Act, 2022 (Karnataka Act No. 5 of 2023), vide notification No. CI 66

SPI 2021, dated 16.10.2023, in Part-IVA, of the Karnataka Gazette Extraordinary No. 503

dated 16.10.2023 inviting objections and suggestions from all persons likely to be

affected thereby within thirty days from the date of its publication in the Official Gazette.

And whereas, the said Gazette was made available to the public on 16.10.2023.

And whereas, no objections and suggestions were received in this regard.

Now therefore, in exercise of the powers conferred by sub-section (1) of section

37 of the Karnataka Special Investment Region Act, 2022 (Karnataka Act No.5 of 2023),

the Government of Karnataka hereby makes the following Rules namely:-

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 publication in the Official

Gazette.

¨sÁUÀ – 3

Part – III

18

2023(

, 27

1945)

BENGALURU, MONDAY, 18, DECEMBER, 2023(MARGASHIRA, 27, SHAKAVARSHA, 1945)

. 578

No. 578

Commerce & Industries Department,

Karnataka Government Secretariat,

Vikasa Soudha, Dr. BR Ambedkar Road,

Bangalore - 560001.

Tel. 080-22034625 Fax. 080-22353932

2

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

(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.- The Chairperson of the Regional

Development Authority 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 the

cadre not below the rank of Head of the Department.

5. Salary and allowances of the Chairperson.-The Chairperson of the Regional

Development Authority 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:-

(a) Must be a holder of 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; and

3

(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 holder of 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; and

(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 Chief Executive Officer 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 .

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 in the State

Government subject to changes made by the 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.

4

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

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.

5

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

depending on the revenue subject to approval of Apex Authority.

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.

6

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

7

II.

Budget Estimates of the Regional Development Authority

Revenue Expenditures

(Rs. in Lakhs)

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

8

18

Rent on Building

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

9

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

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

10

IV. Budget Estimates of the Regional Development Authority

Capital Expenditures

(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)

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

By Order and in the name of the

Governor of Karnataka,

(NAGARATHNAMMA .G)

Desk Officer (Technical Cell),

Commerce & Industries Department.

ಮುದÎಕರು ²ಾಗೂ ಪΐಾಶಕರು:- ಸಂಕಲ£ಾĩಾĸಗಳ…, ಕ£ಾಟಕ ªಾಜÍಪತÎ, ಸಾĸ ೇಂದÎ ಮುದΞಾಲಯ, ¦ೆಂಗಳˆರು

R.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19

Licensed to post without prepayment WPP No. 297

THAMMAIAH

Digitally signed by THAMMAIAH

DN: c=IN, st=Karnataka,

2.5.4.20=be54f34f4e31eae50203ca7fab5ceb3794f20a8460a2582ef28294d

43b8f8b16, postalCode=560059, street=BANGALORE,

pseudonym=ca58c76cf7e2445d7a4f3f51407e025e,

serialNumber=4d9b284dcc53d39f1425f50485de07dd86efa302a3fce3729

eddea0c1b5098e0, ou=GOVERNMENT OF KARNATAKA, o=GOVERNMENT

OF KARNATAKA, cn=THAMMAIAH

Date: 2023.12.20 17:11:40 +05'30'