Saturday, February 12, 2011

MCD FACTORY LICENSING

FACTORY LICENSING DEPARTMENT

Factory Licensing Deptt. is situated at Nigam Bhavan, Kashmere Gate, Delhi - 06 and deals with the issue of Municipal License under sections 416 & 417 of DMC Act, as per provisions of the Master Plan of Delhi, instructions issued by MCD from time to time and decisions of various courts.

1. Necessity of Municipal License

1.1 Section 416 of the MCD Act, 1957 places an obligation on the person desirous to establish in any premises or materially alter, enlarge or extend any factory, workshop or trade premises in which it is intended to employ, steam, electricity, water or other mechanical power to obtain prior permission of Commissioner MCD in writing.

1.2 Once the permission is granted under this Section to install some machinery in a premise, it is also an obligatory to obtain a trade license as laid down under Section 417 (i) before actually starting the trade. In order to streamline the smooth and orderly growth of industries as per provisions of DMC Act, 1957, the Master Plan of Delhi & Pollution Control Committee, G.N.C.T.D., and as per directions/judgements delivered by the Supreme Court of India, the provisions are implemented in the NCT of Delhi to minimize the nuisance, health hazard and pollution for the orderly industrial growth in the NCT of Delhi. In order to achieve this, certain restrictions are imposed in form of licensing conditions for different categories of licenses.

2. Requirement of Documents:

* For uploading documents maximum size should be 2 MB and scanned copies should be in jpeg or gif format

2.1 The following documents should be accompained with the application form for obtaining a factory license:

(a) Conforming Industrial Area Category:

  1. Proof of ownership for lease hold plots alloted by DDA, DSIDC, Delhi Govt. & any other Govt. Agency i.e., Copy of lease deed. In case the lease deed has not been executed, a copy of auction letter/allotment letter/possesion letter. In case of freehold property copy of Conveyance Deed is to be submitted.
  2. A Copy each of the sanctioned Building Plan and a copy of sanction letter.
  3. Affidavit to the effect that the building has been constructed as per sanctioned plan.
  4. Constitution of firm, if any. In case of public or private limited company.
  5. Details of proposed machinery with H.P. rating.
  6. Affidavit in prescribed proforma on Rs.10/- non-judicial Stamp Paper duly attested by the Notary Public/SDM/First Class Magistrate (Download Annexure-5).
  7. Consent from DPCC, if any, as per norms laid down for the applied industry.
  8. One copy each of site plan and key plan.
  9. A rough sketch showing the proposed installation of machinery alongwith the list of machinery with power load (HP) rating.
  10. One copy of manufacturing process for the applied trade.
  11. Additional Undertaking/indeminity Bond/affidavit as prescribed for clusters of industrial concentration earmarked for redevelopment into conforming industrial areas as per MPD-2021 (Download Annexure-1 & 2)

Note: The license will be granted for the area marked as working hall/workshop in the Sanctioned Building Plan. In case of clusters of industrial concentration earmarked for redevelopment into conforming industrial areas as per MCD-2021, the license will be granted for the Ground Floor only.

(b) In case where allotment is in lieu of the Non-conforming site, following additional documents are required:

12 Affidavit in prescribed proforma regarding stopping the industrial use of the Non-conforming site as per the Download Annexure - 8. (There is no restriction on the power load provided sufficient space is available for installation of machinery.)

(c) Documents for DDA/DSIDC/Directorate of industries built-up auction/alloted sheds:-

  1. Copy of the lease deed. If not executed, copy of auction letter, possession letter, NOC regarding trade.
  2. One copy each of site plan and key plan.
  3. Constitution of the firm, if any.
  4. Copy of terms and conditions for allotment of the Shed.
  5. Affidavit as prescribed (Download Annexure-5)
  6. A rough sketch showing the proposed installation of machinery alongwith list of machinery with power load (HP) rating.
  7. One copy of manufacturing process for the applied trade.

(d) Documents for Sub-letting of lease hold Plots/Sheds:

  1. Copy of rent receipt, license deed and/or rent agreement.
  2. One copy of site plan clearly demarcating the proposed area of sub-letting and existing/amended area of the original licensee with measurements and duly signed by the both parties.
  3. One copy each of site plan and key plan.
  4. Constitution of the firm, if any.
  5. Affidavit in the prescribed proforma, Which is shown in Download Annexure - 5
  6. Undertaking in the prescribed proforma, Which is shown in Download Annexure - 7
  7. NOC from the landlord/owner. (Download Annexure-6)
  8. A rough sketch showing the proposed installation of machinery alongwith list of proposed machinery with power load (HP) rating.
  9. One copy of manufacturing process for the applied trade.

Note : i) The power load shall be granted @ 20 Horse Power for an area less than 500 Sq. Ft and minimum of 300 Sq. Ft. However there is no restriction on the power load for an area more than 500 Sq. Ft. provided sufficient space is available for installation of machinery.

ii) Factory license for relocation scheme plots will not be granted under sub-letting category.

(e) Documents for free hold plots:

  1. Proof of ownership/tenancy/legal occupancy.
  2. One copy of site plan clearly indicating the proposed site and the existing units on the particular plot in question.
  3. Affidavit on stamp paper of Rs.10/- that no unauthorized construction has been carried out, which is as per Download Annexure - 5
  4. One copy of key plan giving the sailent features in neighbourhood of the site in question.
  5. Copy of the constitution of the firm, if any.
  6. Undertaking on the prescribed proforma, which is as per Download Annexure - 4
  7. A rough sketch showing the proposed installation of machinery alongwith list of machinery with power load (HP) rating.
  8. One copy of manufacturing process for the applied trade.

3. Local Commercial Category

License in this category can be obtained to run an industry mentioned in 'A', 'A-1', & 'B' categories of trades as per parameters for industrial units in different use zones and use premises mentioned in Table 7.1 of MPD-2021.

(a) Documents for Local Commercial Category:

  1. Copy of Lease Deed. If not executed, Copy of auction letter, possession letter.
  2. Proof of ownership/tenancy/legal occupancy.
  3. Copy of terms and conditions for allotment of the premises by the Land Owning Agency.
  4. One copy each of site plan and key plan.
  5. Constitution of the firm, if any.
  6. Affidavit as prescribed, which is as per Download Annexure - 3
  7. One copy of the site plan with dimensions (blue print)
  8. One copy of key plan earmarking the sailent features in neighbourhood site in question alongwith Zonal Plan and Part Layout Plan indicating the site.
  9. Affidavit regarding no unauthorized construction having been carried out, which is as per Download Annexure - 5
  10. A rough sketch showing the proposed installation of machinery with list of machinery with power (HP) rating.
  11. One copy of manufacturing process for the applied trade.

Note : Online Factory license in this category will be granted only for the premises allotted for commercial/industrial use by the Government land owning agencies.

Note : Minicipal factory licenses will be issued for running factories only on ground floor. However in case of approved flatted fctories the licenses will be given for all sanctioned floors.

4. Renewal of Municipal License

4.1 Municipal License can be renewed online or at any of the CSB Centers set at different locations in Delhi on payment of normal fee & fulfillment of the condition laid down at the time of issue of license. The license can be renewed within 30days from the date of its expiry without any penalty and thereafter a penalty @ 5% per month and double at the end of the year or as per the rates of penalty fixed from time to time by the Competent Authority, shall be charged.

4.2 In case of clusters of industrial concentration earmarked for redevelopment into conforming industrial areas as per MPD-2021, the renewal will be reviewed on year to year basis.

4.3 Running Trade at Night:

4.3.1 If the license is for an industrial area, the trade can run at night provided that prior written permission from the Factory Licensing Department has been obtained.

4.3.2 For units located in the areas other than the industrial areas, the working hours are restricted between 8.00 AM to 6.00 PM.

4.4 Ceiling of Power Load:

4.4.1 In case of industrial license, for an area more than 500 Sq. Ft. there is no restriction of power load subject to availability of space for installation of additional machinery, where as in case of local commercial area, the power load ceiling is upto 11 K.W./ 15 HP as per MPD-2021.

4.5 Changes permissible in the Municipal Factory License:

4.5.1 (1) Trade:

There is no restriction of change of trade within the permissible trades specified in the MPD-2021. subject to submission of consent from D.P.C.C. if applicable.

(2) Change of Name/Constitution:

Subject to confirmation of title of legal occupancy, there is no restriction of change of name of the licensee or change of constitution. Title of the firm alongwith the relevant documents, i.e., partnership deed. Memorandum of Articles in case of Limited or Private Companies Board of Director's resolution authorising one of the Director to apply for license, shall have to be submitted.

(3) In the event of death of the licensee, the license can be transferred to the legal heirs of the deceased. Application for this is in the prescribed proforma should be accompained with the following documents:-

  1. Death Certificate
  2. Original Municipal Factory License
  3. NOC from other legal heirs or family settlement deed duly ratified by the court of law.
  4. Affidavit/indemnity bond by the applicant as per Annexure.

4.5.2 To get the power load increased, the entrepreneur is required to apply for amendment in the prescribed proforma and submit the same with the original license and list of existing and proposed machinery, manufacturing process and rough sketch showing the installation of machinery.

4.6 Fees & Charges

4.6.1 Rs.2000/- for conforming category and local commercial category for granting permission under section 416 of the DMC Act which is chargeable only once at the time of giving permission under the said section apart from the annual charges @ Rs. 80/- per annum per unit and a charge of Rs.4/- per Horse Power per annum, subject to a minimum of Rs.40/- per annum under section 417 of the DMC Act.

5. Trade and Occupations

Section 416 and 417 of DMC Act 1957 are reproduced as under :-

416. Factory. etc., not to be established without the permission of the Commissioner:-

(1) No person shall without the previous permission in writing of the commissioner, establish in any premises or materially alter, enlarge or extend, any factory, workshop or trade premises in which it is intended to employ steam, electricity, water or other mechanical power.

(2) The Commissioner may refuse to give such permission, if he is of the opinion that the establishment, alteration, enlargement or extension of such factory, workshop or trade premises, in the proposed position would be objectionable by reason of the density of the population in the neighbourhood thereof, or would be a nuisance to the inhabitants of the neighbourhood.

417. Premises not to be used for certain purposes without license:-

(1) No personal shall use or permit to be used any premises for any of the following purposes without or otherwise than in conformity with the terms of a license granted by the Commissioner in this behalf, namely:-

a) any of the purposes specified in Part I of the Eleventh Schedule;

b) any purpose which is, in the opinion of the Commissioner dangerous to life, health or property or likely to create a nuisance.

c) keeping horses, cattle or other quadruped animals or birds for transportation, sale or hire or for sale of the produce thereof; or

d) storing any of the articles specified in the Part II of the Eleventh Schedule except for domestic use of any those articles.

Provided that the Corporation may declare that premises in which the aggregate quantity of articles stored for sale does not exceed such quantity as may be prescribed by bye-law's in respect of any such articles shall be excempted from the operation of clause (d).

(2) In prescribing the terms of a license granted under this section for the use of premises as mills or iron yards or for similar purposes the Commissioner may, when he thinks fit, require the licenses to provide a space or passage within the premises for carts for loading or unloading purposes.

(3) The Corporation shall fix a scale of fees to be paid in respect of premises licenses under sub-section (1).

5.1 Penalties

5.1.(a) Contravention of the provisions of Section 416 of DMC Act, 1957 would attract penalties as prescribed in the Twelth Schedule (Under Section 416) and at present the same are:

(i) Establishment of factory, etc., without permission of the Commissioner, MCD is punishable with a minimum fine of Rs. 5000/- (Rupees Five Thousand only) and additional fine of Rs.50/- per day for running of the unit without permission.

5.1(b) Contravention of the provisions of Section 417 of DMC Act, 1957 would attract penalties as prescribed in the Twelth Schedule (Under Section 417) and at present the same are:

(i) Carrying on a trade without license will attract a penalty of Rs.1000/- (Rupees One Thousand only) and additional fine of Rs.100/- per day for continuation of the offence.

1 comment:

  1. श्रीमान जी ,
    निवेदन यह है की विना एन्क्लेब रतन बाग़ नांगलोई दिल्ली में मकान न 101 में पिछले काफी समय से अवैध रूप से एक मसला पिसाई की फक्ट्री चल रही है जो दिन भर वहा पर लाल मिर्च की पिसाई करता है जिससे वहा रहना और वहा से निकलना भी मुश्किल हो जाता है आप से अनुरोध है की इस अवैध फक्ट्री को बंद करवाया जाये !
    प्राथी
    रमेश सोनी चेयर मैन युवा नारी शक्ति जाग्रति ट्रस्ट दिल्ली
    फ़ोन न 8750000362

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