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The Karnataka Government has clarified that industrial land meant for industries cannot be sold or diverted to other use by the general public.
Government, in a note said, “It has come to the notice of the Government that industrial lands allotted in industrial areas formed by Karnataka Industrial Areas Development Board (KIADB) to carry out industrial and allied/related activities are being sold to the public by industrial units after completion of the lease period and execution of the sale deed by KIADB.” It added that “these industrial areas are formed by KIADB by acquiring the land using the provision of the KIAD Act for the specific purpose of carrying out Industrial and allied/related activities and subject to certain terms and conditions detailed in the lease-cum sale deed and final sale deed.”
Change of land use is also not permitted in these industrial areas. KIADB reserves the right to resume the land back if these conditions are violated. In a related development, FKCCI has welcomed the Chief Minister’s announcement about the allotment of land to MSME entrepreneurs on a ‘Lease-Cum-Sale-Basis’.
MSMES Sampathraman, President, FKCCI said “We welcome the decision and it is a land mark decision for the growth of industry in the State.”
However, certain reports appearing in some sections of the media about the reduction in lease period from 90 years to 10 years is incorrect and the existing lease period of 99 years still is acceptable.
In-fact, it is clear the Chief Minister would like to reduce the lease period to 10 years for MSMEs and thereafter ‘convert the lease into sale’ as this has been the long pending request of FKCCI and all other Industry bodies.
“This is an excellent gesture from the Chief Minister for encouraging new industries to come up in the State and to encourage and incentivise MSMEs.
This will facilitate MSME’s to survive and the assurance of the Chief Minister is laudable and industry bodies whole heartedly welcome such a decision and expect the gazette notification to be issued soon,” said Sampathraman. Even the long pending demand of abolition of Trade License has been accepted by the Chief Minister and trade bodies congratulated the Chief Minister for this bold initiative.
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