SYNOPSIS OF THE KARNATAKA SHOPS AND COMMERCIAL

ESTABLISHMENTS ACT & RULES

I. APPLICABILITY OF THE ACT:

 To the whole of Karnataka
 To all areas and classes of shops/ establishments as notified
by the State Government
 Not applicable to persons occupying positions of management
 Exemptions from certain provisions in respect of certain
category of establishments or persons/employees as altered,
modified from time to time by the by the Government by
notification in the official gazette.

II. SUSPENSION OF THE ACT(Section 38):

Govt. may by notification suspend operation of all or any provisions
of the Act for a specified period on any special occasion in
connection with a fair or festival or a succession of public holidays.

III. APPLICATIONS/FORMS/ RETURNS TO BE FILED:

Sl. Category Of Compliance Relevant Provision

No Compliance requirement
.

1 Apply for Within 30 days of Section 4, Rule 3,

Registration commencement of Form A
business Fees as per Schedule
I
Registration valid for
5 years.
2 Renewal of regn. Not less than 90 days Section 4 (4), Form
prior to the expiry of AA
the regn/ renewed Fees as per Schedule
regn. Certificate. I
3 Display of regn. At a conspicuous Section 4 (2)
Certificate place in the shop Form C
4 Notice of change Any change in the Section 5, Rule 5,
information - Within Form D
15 days of the change
5 Notice of closing Within 15 days of the Section 6, No
of establishment closure prescribed Form
6 Duplicate Rule 4-A, Fee of
Certificate in the Rs.50/-
event of loss of
Regn. Certificate

Applications/Forms/ returns are to be filed with the Inspector as notified by

the State Government under Section 26 of the Act.

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 SYNOPSIS OF THE KARNATAKA SHOPS AND COMMERCIAL
ESTABLISHMENTS ACT & RULES

IV. NOTICE/ INTIMATION TO THE INSPECTOR:

Compliance requirement Relevan

t
Provisio
n
Notice to be given regarding weekly holiday Section
12
On demand from the Inspector, submission of a certificate Rule 22,
of age from a regd. medical practitioner in Form J in Form J
respect of any person employed

V. NOTICES TO BE DISPLAYED IN A CONSPICUOUS PLACE:

Sl.N Nature of Notice Forms Other requirements

o
1 Notice of weekly closure Section 12 Copy to be sent to the
Inspector concerned.
2 Notice of Weekly Holiday Rule 24 (4),
of each employee in Form P
respect of Shop or
Establishment
3 Extract of the Act & Rule 24 (6) In Kannada and in the
Rules language of the
majority of the
employees
4 Name Board in Kannada Rule 24-A other language in
and such other addition to Kannada
languages as locally shall be written below
used the Kannada version

VI. REGISTERS TO BE MAINTAINED

Entries in respect of a day to be made on the same day

Sl. Nature of Registers to be maintained Form

No
.
1 Register of Employment:
If the Opening and closing hours and period Form J
of interval for rest are ordinarily uniform
In all other cases Form H
2 Register of Leave Form F

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 SYNOPSIS OF THE KARNATAKA SHOPS AND COMMERCIAL
ESTABLISHMENTS ACT & RULES
Rule 8
3 Visit Book for recording of remarks by the Rule 23 (11)
Inspector

VII. MAINTAINANCE AND PRESERVATION OF RECORDS,

REGISTERS, NOTICES ETC., - SECTION 34 & RULE 24:
 All records shall be maintained in Kannada or in English.
 All registers and all records pertaining to a calendar year to
be preserved till the end of next calendar year.
 If any office, store-room, godown, warehouse or work place
used in connection with the trade or business of a shop is
situated at any premises other than the premises of the shop, all
the registers/ records/notices as required under this Act shall be
separately maintained etc., at such office, store-room, godown,
warehouse or work place.
 Employer to produce on demand by Inspector for inspection
any register, records, notices required to be kept for the
compliance of the Act
 On application by the employer if the govt, is satisfied that
any muster roll, register or record maintained by the employer
furnishes the particulars as required to be maintained under the
Rules, the Govt. may by order direct that such muster roll/
register/ record be deemed to the corresponding extent to be the
register/ record required to be maintained under the Rules.

VIII. Lighting, Fire Exit etc., (Rules 17 to 20):

 To be sufficiently lit
 Precautions against fire, no smoking or use of naked light in
the vicinity of inflammable material
 Window, door giving access to an external staircase to be so
arranged as to open immediately from inside.
 Building of more that one storey to be provided with two
stairs.

IX. PENALTY (Section 52 to 61 & Rule 51):

 Offence relating to overtime, production of records to
inspector, maintainance of records etc., - fine upto Rs.250/-
 Offence relating to employment of children - for the
first offence: imprisonment not less than 3 months extendable
to 6 months or with fine not less than Rs.10000/- which may
extend upto Rs.20000/- or both & Second and subsequent
Offence: imprisonment not less than 6 months extendable to
one year
 For Other offences - First offence - fine upto Rs.1000/- &
Second and subsequent Offence - fine upto Rs.2000/-
 Penalty for obstructing Inspector - Fine upto Rs.500/-

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SYNOPSIS OF THE KARNATAKA SHOPS AND COMMERCIAL
ESTABLISHMENTS ACT & RULES
 Contravention of Rules – fine not less than Rs.100/-
extendable upto Rs.250/-
 Limitation for prosecution - 6 months from the date of the
alleged offence.
 Cognizance and trial of offence by a Court not inferior to a
Second Class Magistrate only upon a written complaint by the
inspector

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