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Trade License Requirements in Karnataka

The document outlines the rules and regulations governing the licensing of dhabas in Bangalore, Karnataka. Dhabas require a license under the Karnataka Municipal Corporation Act of 1976. The licensing procedure involves obtaining an application from the Bruhat Bangalore Mahanagar Palika, submitting documents like property owner consent and tax receipt, paying the license fee, and undergoing an inspection of the premises to ensure compliance with regulations. Licenses are issued for a specified period with conditions and must be renewed periodically. Various departments are involved in the licensing process and fees vary depending on the type and size of the dhaba.

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0% found this document useful (0 votes)
246 views8 pages

Trade License Requirements in Karnataka

The document outlines the rules and regulations governing the licensing of dhabas in Bangalore, Karnataka. Dhabas require a license under the Karnataka Municipal Corporation Act of 1976. The licensing procedure involves obtaining an application from the Bruhat Bangalore Mahanagar Palika, submitting documents like property owner consent and tax receipt, paying the license fee, and undergoing an inspection of the premises to ensure compliance with regulations. Licenses are issued for a specified period with conditions and must be renewed periodically. Various departments are involved in the licensing process and fees vary depending on the type and size of the dhaba.

Uploaded by

MOHAMMED AV
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

1

RULES AND REGULATIONS GOVERNING THE LICENSING OF


DHABA IN BANGALORE

State: Karnataka

Details of licensing are as follows:

Dhaba’s are regulated as per the direction of Karnataka Municipal Corporation Act 1976
where as the directions for timings for operation are fixed by the Karnataka Shops and
Commercial Establishment Act 1961. Provisions of Prevention of Food Adulteration Act are
also applicable to food related items.

As per section 343 of Karnataka Municipal Corporation Act 1976, No person shall, without
or otherwise than in conformity with the terms of a license granted by the Commissioner
keep any eating house, tea-shop, coffee-house, cafe, restaurant, refreshment room, or
any place, where the public are admitted for repose or for the consumption of any food or
drink or any place where food is sold or prepared for sale.

The Commissioner may at any time cancel or suspend any license granted if he is of
opinion that the premises covered thereby are not kept in conformity with the conditions
of such license or with the provisions of any bye-law made under section 423 relating to
such premise s whether or not the licensee is prosec uted under this Act.

As per section 353, No place within the limits of the city shall be used for any of the
purposes mentioned in Schedule X without a license obtained from the Commissioner and
except in accordance with the condition, specified therein. The Commissioner shall, if so
required by the corporation, publish a notification in the Official Gazette and in two or
more local newspapers that any place at a distance within five kilomet ers of the limits of
the city shall not be used for any one or more of the purposes mentioned in Schedule X
without a license obtained from the Commissioner and except in accordance with the
conditions specifi ed therein: Provided that no such notification shall take effect, unless
the sanctio n of the Governm ent has been obtaine d therefore and until the expiry of
thirty days from the date of its publication in the Officia l Gazette.

Sectio n 370 says that no person shall, without the permission of the Commissioner, or if
the fees have been farmed out, of the farmer, sell or expose for sale any animal or article
within any public market. Any person who contravenes sub -section (1) or any condition
of the license or any regulation made under section 378 or in any bye-law made under
section 423 or who commits default in payment of the fees leviable under section 369 may
after three clear days' notice be summarily removed form such market by any corporation
officer or servant and any lease or tenure which any person may possess may be terminated
for such period and from such date as the Commissioner may determine with-out prejudice
to the legal rights of the corporation to prosecu te the person or to recover the fees
leviable under section 369 and expenses, if any which the corporation may incur in such
removal . Dhaba’s requires a license.

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Licensing Procedure:

Bruhat Bangalore Mahanagar Palika issues license as per the provisions of Karnataka
Municipal Corporation Act 1976.

As per the Karnataka Municipal Corporation Act, the owner or occupier of every place for
the use of which for any purpose a license is required under the act shall apply to the
Commissioner for such license not less than thirty days before the place is used for such
purpose or within thirty days of the publication of the notification under sub-section (2) in
the Official Gazette, as the case may be.

Section 443 says that Every license or permission granted under this Act or any rule or bye
law made under it shall specify the period, if any, for which and the restrictions, limitations
and conditions subject to which the same is granted and shall be signed by the
Commissioner. Act also says that Every license, permiss ion, notice , bill, schedul e,
summons , warrant or other document which is required by this Act or by any rule, bye -
law or regulat ion made under it to bear the signature of the Commissioner or of any
corporation officer shall be deemed to be properly signed if it bears the facsimile of the
signature of the Commissioner or of such corporation officer, as the case may be,
stamped thereup on.

Procedu re in the Corporation as follow s:

Obtain the handbook for trade license from any of the range offices or citizen centers. The
handbook contains FAQ and the schedule of trade that are liable to obtain license. The
handbook contains an application form. Fill the application form. The applicant needs to file
the property owner’s consent in plain paper or letterhead in Format B available in the
handbook at page No.33. The owner has to file a copy of the latest property tax paid
receipt in proof of ownership. At the time of filling the application, if the trade falls under
zone A of the Comprehensive Development Plan, then the person needs to obtain
immediate neighbor’s consent in plain paper in Format C available in the handbook at page
No 35.

The applicant is also required to file a layout plan for your trade premises showing the
business/working/washing/resting/toilet areas etc. This layout plan can be certified by any
licensed architect /engineer/ supervisor. However, other than hotels and restaurants, if the
area of your trade premises is less than 500 square feet, certification of the layout plan is
not required.

Demand draft towards the license fee payable for the trade is also required. If the applicant
needs to apply for power license, you need to fill the columns in the application form and
pay the applicable license fee depending on the KVA/HP of the power sanctioned. This fee
is to be paid by a separate demand draft. All demand drafts should be in favor of
Commissioner Bruhat Bangalore Mahanagara Palike.

If the application is not accompanied with requirements at serial numbers 4-8, the
application will be rejected and an endorsement will be issued. On the date of filing the
application itself the authorized officer will set the date of inspection of the trade premises.

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The maximum time set for inspection is set within 3 working days. The authorized officer
will come for inspection with a checklist to verify if all compliances required for your trade
are met.

After the trade premise is inspected and if found satisfactory, the trade license will be issued
within 3 working days thereafter. If the inspecting authority has any objection he will issue
an endorsement to correct the defects. Once the defects are corrected satisfactorily, the
trade license will be issued within 3 working days.

Zonal Regulation:

Bangalore City is classified into several zones as per the Comprehensive Development Plan
(CDP) approved vide G O No. MUD 139 MNJ 94 dated 05/01/94. The CDP regulates the
land-use for residential, non-residential, open spaces, parks etc. With respect to establishing
trade, CDP regulates what trade can be set up in each of the zones. The Zonal
Classification is available in Annexure D in the handbook. No Trade should violate the zonal
regulation. Zone classification has to be specified in the renewal application.

Departments Involved :

Health department of the Corporation is the department concerned. Health Officer is the
Authority issuing license.

Documents required for issuing license: -

1. Filled application form.


2. The property owner’s consent in plain paper or letterhead in Format B available in
the handbook at page No.33.
3. Copy of the latest property tax paid receipt in proof of ownership.
4. Demand draft towards the license fee payable for the trade.
Separate demand draft for power, if needed.

License Fees:-

Act says that license or permission fees shall be paid in advance as may be fixed by the
corporation except in special cases provided under the Act. Provided that not more than
one fee shall be levied in respect of any purpose specified in more heads than one of
Schedule X if such heads form part of a continuous process of manufacture and the fee so
charged shall not exceed the highest fee chargeable in respect of any one of the said
[Link] license fee to be paid for the different trades is mentioned in Schedule X
PART 1 to Part VIII to this scheme. If a person have two or more schedule commodities in
the same premises then he/she has to pay a compounded fee equal to twice the highest fee
payable for the trades/commodities he/she is dealing. On the other hand if, in the same
premises different people are running different trade, then each one pays independently for
the trade carried on.

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Hotels, Restaurant and all establishments’ serving/selling/storing food,


beverages or alcohol:

Scheduled serial No Item Fees

Part I , 6 All Star Hotels 1,00.000

6 Air conditioned Hotels 25,000


attached with bar

6 Hotels without air 15,000


conditioning attached with
bar

6 Hotels with air conditioning 10,000

6 Hotels without air 5,000


conditioning including
Darshini type Hotels

6 Canteens at factories, 2000


nursing homes and cinemas

6 Small coffee/tea stalls less 1000


than 200 square feet.

6 Eating Mess more than 200 1000


square feet.

6 Eating mess less than 200 500


square feet.

All Food &Non Food items not specifically mentioned under Part I to Part V:

Scheduled serial No Item Fees

Part VI , (1) Manufacturing, processing, 10,000


storage, selling

“ Retail stores where the 5,000


storing and service area is

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above 2000 square feet

“ Retail stores where the 3,000


storing and service area is
more than 1000 but less
than 2000 square feet

“ Retail shops where the 1,000


storing and service area is
more than 500 square
feet but less than 100
square feet

“ Retail shops where the 500


storing and service area is
less than 100 square feet

The acceptance by the corporation of the pre-payment of the fee for a licence or permission
or for registration shall not entitle the person making such pre-payment to the licence or
permission or to registration, as the case may be, but only to refund of the fee in case of
refusal of the licence or permission or of registration.

Refusal, suspension and Cancellation:

As per the Act, Every order of the Commissioner or other municipal authority granting or
refusing a license or permission shall be published on the notice board of the corporation If
an application is denied by the commissioner, then the trader may appeal to standing
committee (health) by producing the denied letter.

Notwithstandi ng anything contained in this Act, any licence or permission granted under
this Act or any rule or bye-law made under it, may at any time be suspended or revoked by
the Commissioner, if any of its restrictions or conditions is evaded or infringed by the
grantee or if the grantee is convicted of a breach of any of the provisions of this Act or of
any rule, bye-law or regulation made under it, in any matter to which such license or
permission relates, or if the grantee has obtained the same by misrepresentation or fraud.

When any license or permission is suspended or revoked or when the period for which it
was granted or within which application for renewal should be made has expired, the
grantee shall for all purposes of this Act, or any rule or bye-law made under it be deemed
to be without license or permission made until the order suspending or revoking the
license or permission is cancelled or subject to sub-section (10) until the license or
permission is renewed, as the case may be.

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Inspection:

As per the act, every grantee of any license or permission, shall at all reasonable times
while such license or permission remains in force, produce the same at the request of the
Commissioner.
It shall be the duty of the Commissioner to inspect places in respect of which a license or
permission is required by or under this Act, and he may enter any such place between
sunrise and sunset, and also between sunset and sunrise if it is open to the public or any
industry is being carried on at the time, and if he has reason to believe that anything is
being done in any place without a license or permission, where the same is required by or
under this Act, or otherwise than in conformity with the same, he may at any time by day
or night without notice enter such place for the purpose of satisfying himself whether any
provision of law, rules, bye-laws, regulations, any condition of a license or permission or
any lawful direction or prohibition is being contravened and no claim shall lie against any
person for any damage or inconvenience necessarily caused by the exercise of powe rs
under this sub-section by the Commissioner or any person to whom he has lawfully
delegated his powers or by the use of any force necessary for effecting an entrance under
this sub-section.

License Renewal

As per the Act, Every license shall expire at the end of the year for which it is granted, or at
such earlier date as the Commissioner may, for special reasons, specify in the license.
Applications for renewal of such licenses shall be made not less than thirty days before
the commenc ement of the year for which renewal is sought. The license may be
renewed to such conditions or the Commissioner may specify restrictions as or he may
refuse to renew if it is likely to cause nuisance in the neighbourhood. Where a license is
granted under this section for the use of any place outside the limits of the city, the
corporation shall pay to the local authority within the limits of which such place is
situated, such proportion of the fee received by the corporation for the grant or renewal
of such license as the Governm ent may, by general or special order, determi ne.

License Renewal:

Trade License Renewal Center’s will be opened at all business areas in the city from
the15th March 2007 to 31st March 2007. This center’s will issue Renewal Application
Handbook, accept renewal applications and issue renewed licenses. The license issued
expires on the 31st of March each year. You need to apply for renewal before last day of
February each year. Applications received from the last day of February till the 31st March
will be automatically renewed.

Normally, there will not be an inspection of the trade premises for renewal before 31st
March, unless warrant and directed by the Commissioner or the delegated authority.
However, designated staff of Bangalore Mahanagara Palike will carry out random inspection
after the trade license has been renewed.

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Renewal under the scheme (Suvarna Arogya Paravanagi) is done on the basis of an affidavit
filed on a One hundred Rupees Stamp paper to the effect that the applicant will continue to
carry on the trade as per regulation and other laws in force for the respective trade.

Renewal Fees:

Applications received from the last day of February till the 31st March will be automatically
renewed. Application for renewal received between 1st March and 31st March will be done
only after inspection of the trade premises besides a penalty of 25 percent of the license
fee. For the current year renewal 2007-08 this condition is relaxed. Application received
after 1st April will be done only after inspection of the trade premises besides the levy of
penalty equal to the fee prescribed. For the current renewal for 2007-08 only, the
applications received for renewal from the 15th of March to 31st March 2007 will not attract
any penalty. Applications for renewal received from 1st April 2007 to 15th April 2007 will be
issued only after inspection of the trade premise and will also attract a penalty of 25 percent
of the license fee. Applications received after 15th April will be issued only after inspection
of the trade premises besides a penalty equal to the prescribed trade license fee.

If the person has not paid the license fee for the previous years, you are required to pay the
license fee as applicable for all the years along with the fee payable for renewal for the
succeeding year. For the years, ending 31st March 2006, if he/she has not renewed the
license fee, in addition to the fees payable, the person will be required to pay a penalty of
50 percent of the fee applicable.

The person will have to pay separately for power depending on the sanctioned load. The
applicant needs to pay either for the sanctioned power load or the generator, which ever is
higher capacity. However, as and when you install a generator, you are obliged to report to
the jurisdictional Medical health Officer and take an endorsement on the license book.

A trader who has paid the renewal license fee for 5 years can continue to avail the benefit
till the lapse of the period. However, since the fee structure has been revised the difference
in the fee has to be paid and the license renewed. If you do not want to pay at the revised
rate for the balance years, you could notify the same in the application form and pay for the
current year at the revised rates

Documents Required for Renewal:

The person has to file the renewal application in the prescribed form available in the
handbook at Annexure E and affix your firm/company seal. He/ she is also required to file a
copy of the previous license fee paid or copy of the previous license book. Application for
the new registration is also available in Annexure F of the handbook. The procedure to fill
up the application is avail in Annexure G of the handbook.

Timings:

As per the Karnataka shops and Establishment Act 1961, no employee in any establishment
shall be required to work for more than nine hours on a day and forty- eight hours in a
week.

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Punishment:

As per the Karnataka Municipal Corporation Act, running an unauthorized Trade is offence.
The concerned authority may seize or lock your Trade business with or without intimation.

Whenever any person is convicted of an offence in respect of the failure to obtain a licence
or permission or to make registration required by the provisions of this Act, or by any rule
or bye-law made under this Act, the magistrate shall, in addition to any fine which may be
imposed, recover summarily and pay over to the corporation the amount of the fee
chargeable for the licence or permission or for registration and may in his discretion also
recover summarily and pay over to the corporation such amount, if any, as he may fix as
the costs of the prosecution.
Such recovery of the fee shall not by itself entitle the person convicted to a licence or
permission or to registration as aforesaid.

Under the law it is mandatory to apply and obtain a trade license from the jurisdiction
Health Officer. If one contravenes then, with a view to protect public health, the jurisdiction
Health Officer or any officer authorized by the Commissioner can summarily close or seal
the trade premise until such time license is obtained.

As per the act, keeping an eating house without a license or in contrary of a license will
charge a penalty of Rs.100/-

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