The draft of the Karnataka Special Investment Region Rules, 2023

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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,-

(1)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 salary5 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) Revised Budget Sl. Budget Actuals Sub-Heads Budget Estimates No Estimates (For the (For the (For the Next (For the Current Current Year) Current Year) Year) 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) Total8 II. Budget Estimates of the Regional Development Authority Revenue Expenditures Budget Revised Budget Sl. Sub-Heads Actuals Estimates Budget Estimates (For the (For the (For the Current (For the Next No. Current Current Year) Year) Year) 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 Building9 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. Sub-Heads Budget Budget No. Estimates Actuals Revised Budget Estimates (For the (For the Current (For the Current (For the Next Current Year) Year) Year) 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 Staff10 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. Sub-Heads Budget Estimates Actuals Revised Budget Budget Estimates No. (For the Current (For the Current (For the Current (For the Next Year) Year) Year) 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 year11 ABSTRACT OF BUDGET ESTIMATES FOR THE YEAR-------------- (Rs. in Lakhs) Budget Estimates Actuals Revised Budget Estimates Budget Estimates Particulars (For the Current (For the Current (For the Current Year) (For the Next Year) Year) 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 year12 FORM -2 (see sub-rule (1) of rule13) ANNUAL PROGRAMME OF WORKS Salient features Estimated expenditure in Estimated cost of the Amenities and Sl.No. Name of Scheme the year for which Estimated receipts work facilities to programme is proposed industries 1 2 3 4 5 613 FORM - 3 (see sub-rule (2) of rule 14) Annual Statement of Accounts INCOME AND EXPENDITURE ACCOUNT OF RDA FOR THE YEAR ENDED _________________ PREVIOUS CURRENT PREVIOUS YEAR SCH YEAR YEAR SCH CURRENT YEAR E X P E N D I T U R E No. I N C O M E NO.

Rs. in lakhs Rs. in lakhs Rs. in lakhs Rs. in lakhs To Repairs & By Sale of Application Maintenance Forms To Administrative By Recoveries of Fines Expenses and Penalties To Water & Electricity By Interest Received Charges To Special Charges By Other Receipts To Depreciation By Rent Received To Prior Period By Forfeiture of Deposits Adjustment To Excess of Income over By Water Supply Expenditure 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 TOTALR.N.I. No. KARBIL/2001/47147 POSTAL REGN. No. RNP/KA/BGS/2202/2017-19 Licensed to post without prepayment WPP No. 297 14 BALANCE SHEET OF RDA AS ON ___________ CURRENT SCH CURRENT PREVIOUS SCH YEAR PREVIOUS YEAR L I A B I L I T I E S No. YEAR YEAR A S S E T S NO Rs. in lakhs Rs. in lakhs Rs. in lakhs Rs. in lakhs Grants from Central Assets with Name and State Governments of SIR Development of Reserves and Surplus SIR Unsecured Loans Fixed Assets Current Liabilities Investments and Provisions Current Assets, Loans and Advances GRAND TOTAL GRAND TOTAL (NAGARATHNAMMA .G) Desk Officer (Technical Cell), Commerce & Industries Department.

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