PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 6, 2020
(MAGHA 17, 1941 SAKA)
PART I
GOVERNMENT OF PUNJAB
DEPARTMENT OF LEGAL AND LEGISLATIVE AFFAIRS, PUNJAB
NOTIFICATION
The 6th February, 2020
No.1-Leg./2020.- The following Act of the Legislature of the State of
Punjab received the assent of the Governor of Punjab on the 31st day of
January, 2020, is hereby published for general information:-
THE PUNJAB RIGHT TO BUSINESS ACT, 2020
(Punjab Act No. 1 of 2020)
AN
ACT
to provide for ease of doing business for the newly incorporated Micro,
Small and Medium Enterprises through an enabling eco-system for self-declaration,
exemptions, speedier approvals and inspections to establish and operate in the
State of Punjab and matters connected therewith or incidental thereto.
BE it enacted by the Legislature of the State of Punjab in the Seventieth
Year of the Republic of India as follows:-
1. (1) This Act may be called the Punjab Right to Business Act, 2020.
(2) It shall come into force on and with effect from the date of its publication
in the Official Gazette.
2. In this Act, unless the context otherwise requires,-
(a) 'Approval' means acknowledgment, no objection certificate, consent,
registration, permission, license and such other similar instrument
by whatever name called, required under any Punjab law with regard
to the establishment or operations of an enterprise in the State of
Punjab;
(b) “Approved Industrial Park” means an Industrial Area, Industrial
Focal Point, Industrial Estate, Mixed–use Industrial Park, Special
Economic Zone (SEZ), Textile Park, Biotech Park, Information
Technology (IT) Park, Industrial Township, Growth Centre, Food-
Processing Park or any other similar project approved by the
competent authority of the Government or the Central Government,
as the case may be;
Short title and
commencement.
Definitions.
(c) "Certificate of In Principle Approval" means an approval referred
to in section 10 of this Act;
(d) “Competent Authority” means any department or agency of the
Government or a local authority, statutory body, State owned
corporation or board, Urban Development Authorities or any other
authority or agency constituted or established by any Punjab law
or under administrative control of the Government which is entrusted
with the powers or responsibilities to grant or issue approvals for
the establishment or operation of an enterprise in the State;
(e) “Declaration of Intent” means submission of relevant and accurate
information, by an enterprise under any Punjab law for the purpose
of availing of the benefit under this Act;
(f) “Deemed Approval” means an approval deemed to have been given
on the expiry of a period specified under sub-section (3) of section
10 of this Act;
(g) 'District Bureau of Enterprise' means the Bureau established under
section 3 of this Act;
(h) “Enterprise” means a micro, small or medium enterprise, as defined
in clause (e) of section 2 of the Micro, Small and Medium Enterprises
Development Act, 2006;
(i) “Government” means the “Government of the State of Punjab;
(j) 'Nodal Agency' means the Nodal Agency referred to in section 5
of this Act;
(k) "prescribed" means prescribed by rules made under this Act;
(l) 'Punjab law' means any law enacted or adopted by the Legislature
of the State of Punjab;
(m) “Scrutiny Committee” means the committee referred to in section
9 of this Act; and
(n) "State" means the State of Punjab.
3. (1) In order to strengthen and support the Micro, Small and Medium
Enterprises at the district level, the Government shall establish District Bureau
of Enterprise in all districts of the State consisting of the following, namely:-
(i) the Deputy Commissioner Chief Executive
of the district concerned; Officer
PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 6, 2020
(MAGHA 17, 1941 SAKA)
Establishment of
District Bureau of
Enterprise.
(ii) the General Manager, Additional Chief
District Industries Centre Executive Officer
(iii) the others members of the Enterprise as may be notified by the
Government from time to time.
(2) The respective District Industries Centre shall be the Secretariat
for the District Bureau of Enterprise.
4. Subject to the superintendence, direction and control of the Government,
the District Bureau of Enterprise shall have the following powers and perform
the following functions, namely.-
(i) to facilitate the process of filing the Declaration of Intent and
issuance of Certificate of In Principle Approval;
(ii) to redress grievances of the Micro, Small and Medium Enterprises;
(iii) to create awareness and capacity building of all stakeholders
including the officials of the Government; and
(iv) any other function so assigned by the Government for facilitation
and promotion of Micro, Small and Medium Enterprises in the State.
5. (1) There shall be a State Nodal Agency at the State level which shall
be headed by the Director, Industries and Commerce consisting of such other
members as may be notified by the Government from time to time. It shall
work under the overall superintendence, direction and control of the
Government.
(2) The District Bureau of Enterprise shall be the District Nodal Agency
which shall work under the overall superintendence, direction and control of
the Government through the State Nodal agency.
6. (1) The State Nodal Agency shall have the following powers and
perform the following functions, namely:-
(a) to monitor, supervise and review the overall functioning of the
District Nodal Agency;
(b) to coordinate and liaise with the concerned departments at the
State and Central level; and
(c) to review and take a decision on the appeal filed under clause (a)
of section 12 against the orders of District Nodal Agency and ensure
time bound redressal of grievances.
(2) The District Nodal Agency shall have the following powers and
Powers and
functions of
District Bureau
of Enterprise.
Nodal Agency.
Powers and
functions of
District Nodal
Agencies.
PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 6, 2020
(MAGHA 17, 1941 SAKA)
perform the following functions, namely:-
(a) to assist and facilitate Micro, Small and Medium Enterprises in the
State;
(b) to maintain a record of ‘Declaration of Intent’ as may be received
and to issue a Certificate of In Principle Approval, under this Act;
(c) to review and decide the application filed under clause (b) of section
12 and ensure time bound redressal of grievances; and
(d) to coordinate with the other departments of the Government at the
district level.
(3) The Government may assign such other powers and functions to
the nodal agencies as it may deem fit for giving effect to the provisions of this
Act.
7. A new Micro,Small and Medium Enterprise, willing to avail the Certificate
of In Principle Approval and intending to set up its business in the State, shall
furnish to the District Nodal Agency a Declaration of Intent in the format and
in the manner as may be prescribed.
8. (1) A Certificate of In Principle Approval shall act as an approval, as
defined in clause (a) of section 2 for the regulatory services under the Acts
specified in section 18, for a period of three years and six months from the
date of its issuance.
(2) During the validity of Certificate of In Principle Approval, no
competent authority shall undertake any inspection for the purpose of, or in
connection with, any approval as defined in clause (a) of section 2, except on
the basis of complaints as specified in sub-section (6) of this section.
(3) A Certificate of In Principle Approval may be issued under section
10 to a new Micro, Small and Medium Enterprises being set up in the State on
receipt of a Declaration of Intent complete in all respects in the prescribed
format.
(4) The provision of a Certificate of In Principle Approval shall be
optional and an enterprise may choose to avail the regular approvals from the
concerned departments at any point of time.
(5) A Certificate of In Principle Approval shall not entitle a person to
use a piece of land in deviation to the land use or any stipulations specified in
the notified master plan or notified Local Planning Area notified under the
provisions of the Punjab Regional and Town Planning and Development
Filing of
Declaration of
Intent.
Effect of the
Certificate of in
Principle
Approval.
PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 6, 2020
(MAGHA 17, 1941 SAKA)
Act, 1995. The applicant shall also adhere to the siting guidelines for setting up
industries issued by various departments.
(6) (a) In the case of complaints of serious nature, only the Head of
the concerned authority alone may order inspection after
recording reasons in writing for such an inspection.
(b) The Inspecting Officer or the team of inspecting officers (not
below the rank of Joint Director) shall be selected by a
randomized computerized system.
(c) The inspection report shall be made available online to the
enterprise and the concerned department within forty-eight
hours after the inspection.
(7) During the course of validity of the Certificate of In Principle
Approval, the enterprise shall at any time but not later than three years from
the date of issue of the Certificate, apply to btain all applicable regular approvals
from the concerned departments through the single window system of the
Punjab Bureau of Investment Promotion (PBIP).
9. To examine and decide upon the applications received under sub-section
(2) of section 10, there shall be a Scrutiny Committee for each district in the
State which shall consist of the Deputy Commissioner concerned and such
other members as may be prescribed. The Scrutiny Committee before making
its decision, may jointly or severely make a site visit, if so required, with prior
notice to the applicant.
10. (1) For new enterprises being set up in Approved Industrial Park(s),
the District Nodal Agency, upon receipt of a Declaration of Intent, shall
forthwith, issue a Certificate of In Principle Approval to an enterprise within
three working days.
(2) For new enterprises being set up outside the approved Industrial
Park(s) and on areas, approved under the relevant Master Plan, the decision
to issue a Certificate of In Principle Approval shall be taken by the District
Nodal Agency within a period of fifteen working days in accordance with the
procedure as may be prescribed.
(3) In case the decision to issue the Certificate of In Principle Approval
is not taken within the stipulated period specified in sub-sections (1) and (2),
the same shall be deemed to have been issued by the District Nodal Agency.
Scrutiny
Committee.
Issuance of
Certificate of in
Principle
Approval.
PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 6, 2020
(MAGHA 17, 1941 SAKA)
11. (1) In the case of any willful submission of false and fraudulent
information in the application or violation of any provisions of the relevant
rules, the Certificate of In Principle Approval shall be revoked by the District
Nodal Agency after giving an opportunity of being heard.
(2) In addition to any action that may be taken for violation under any
law for the time being in force, any unauthorized construction shall either be
demolished by the owner or by the concerned authority at the risk and cost of
the owner.
12. Any eligible enterprise, which has applied or has been issued a Certificate
of In Principle Approval under this Act, may file-
(a) an appeal within a period of thirty days from the date of rejection
of application or any other cause referred to in clause (b) to the
State Nodal Agency if a Declaration of Intent filed for grant of the
Certificate of In Principle Approval has been rejected by the
competent authority; and
(b) subject to the action taken in pursuance of the provisions of sub-
section (6) of section 8, if an enterprise having a valid Certificate
of In Principle Approval under this Act is being enquired or inspected
or being compelled for submission of documents for its establishment
and/or operation of its business, an application for redressal of
grievances, if any, before the District Nodal Agency.
13. No suit, prosecution or other legal proceedings shall lie against any officer
or other employee of the Government or the Nodal Agency or any other
competent authority, for anything which is in good faith done or intended to be
done under this Act for the facilitation of Micro, Small and Medium Enterprises.
14. (1) The Government may, by notification in the Official Gazette, make
rules for carrying out the provisions of this Act.
(2) Every rules made by the Government under this Act, shall be laid,
as soon as may be, after it is made, before the House of the State Legislature,
while it is in session, for a total period of ten days, which may be comprised in
one session or in two or more successive sessions, and if, before the expiry of
the session immediately following the session or the successive sessions
aforesaid, the House agrees in making any modification in the rule, or the
House agrees that the rule should not be made, the rule shall thereafter have
effect only in such modified form or be of no effect, as the case may be,
however, any such modification or annulment shall be without prejudice to the
validity of anything previously done under that rule.
Revocation of a
Certificate of in
Principle
Approval.
Appeal.
Protection of
action taken in
good faith.
Power to make
rules.
PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 6, 2020
(MAGHA 17, 1941 SAKA)
15. If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order, not inconsistent with the provisions of this Act,
remove the same:
Provided that no such order shall be made after the expiry of a period of
two years from the commencement of this Act.
16. When the Government or any authority under it is empowered to exempt
any enterprise from any approval or inspection or any provisions relating thereto
under any Central Act, the Government or, as the case may be, any such
authority shall, 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 and six months from the date of issue of the
Certificate of In Principle Approval.
17. Nothing in this Act shall be construed as exempting any enterprise from
the application of the provisions of any Punjab law for the time being in force,
or any regulatory measures and standards prescribed there-under, except to
the extent expressly provided in this Act.
18. (1) Notwithstanding anything inconsistent therewith contained in any
other Punjab laws, for the time being in force, the provisions of this Act shall
have an overriding effect.
(2) The following enactments and the provisions of these enactments
shall be deemed to have been amended if so required to conform with the
provisions of this Act in so far as these are necessary to implement the provisions
of this Act, namely:-
Serial Act Services
No.
1. Building Plan, Completion-cum- 1. Sanction of Building Plans
occupancy certificate, issuance of 2. Issuance of Completion-cum-
new trade license under the Punjab Occupation Certificate for
Municipal Act, 1911 and the Punjab Buildings.
Municipal Corporation Act, 1976. 3. Registration of trade license.
2. Building Plan and change of land 1. Sanction of Building Plans.
use under the Punjab Regional and 2. Issuance of Completion-com-
Town Planning and Development Occupation Certificate for
Act, 1995 Buildings.
3. Change of land use.
Powers and
functions of
District Bureau
of Enterprise.
Exemption.
Savings.
Act to override
other laws.
PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 6, 2020
(MAGHA 17, 1941 SAKA)
3. Provisional Fire No Objection Application for Fire No Objection
Certificate and Fire No Objection Certificate.
Certificate under the Punjab Fire
Prevention and Fire Safety
Act, 2004
4. Factory Building Plan and Factory Approval of Factory Building plan
license under the Punjab Factory (except for industries involving
Rules, 1952 hazardous process as per First
Schedule of the Factories Act,
1948)
5. Registration of Shop or Registration of Shop or
Establishment under the Punjab Establishment
Shops and Commercial
Establishment Act, 1958.
19. The statutory application fee, inspection fee or any other fees chargeable
under any Punjab law, notified from time to time, in respect of actions, services
and approval as referred to in section 18 shall be payable online to all the
relevant authorities at the time of filing of declaration of intent and before the
issue of the "Certificate of In-Principle Approval", by the applicant.
S.K. AGGARWAL,
Secretary to Government of Punjab,
Department of Legal and Legislative Affairs.
Fees.
PUNJAB GOVT. GAZ. (EXTRA), FEBRUARY 6, 2020
(MAGHA 17, 1941 SAKA)
1963/2-2020/Pb. Govt. Press, S.A.S. Nagar