COMPLIANCES FOR FACTORY

S.No Legislation Name Relevant Provision/ Section No. Compliance Type Applicability

ENVIRONMENTAL LAWS

1. Water (Prevention and Section 25(1) of Water Act read with Consent to establish Prior consent of the Maharashtra State Pollution Control Board
Control of Pollution) Act Rule 32 of the Water Rules (“MSPCB”) is required to establish or take any steps to establish
1974 (“Water Act”) read any industry, operation or process, or any treatment and
with Water (Prevention disposal system, which is likely to discharge sewage or trade
and Control of Pollution) effluent into a stream or well or sewer or on land (“discharge of
Rules, 1975 (“Water sewage”) or bring into use any new or altered outlet for the
Rules”). discharge of sewage or begin to make any new discharge of
sewage.
2. Air (Prevention and Section 21(1) of the Air Act read with Consent to establish Previous consent of the MSPCB is required to establish or
Control of Pollution) Act Rule 10 of Air Rules operate any ‘industrial plant’ in an air pollution control area.
1981 (“Air Act”) read Under the provisions of the Air Act, ‘industrial plant’ would
with Air (Prevention and include any plant which is being used for any industrial or trade
Control of Pollution) purposes and which emits any air pollutant into the
Rules, 1983 (“Air Rules”) atmosphere.

3. Air Act Section 21 of the Air Act Consent to establish no- Consent to establish no-objection certificate has to be obtained
objection certificate for from the MSPCB for emission/ continuation of emission under
diesel generator set(s) the Air Act from a diesel generator set(s) of capacity of 5 MVA
and above.
4. Environment Protection Section 3 of the EPA and Rule 5 of Environmental Clearance The MoEF Notification provides that all the activities mentioned
Act 1986 and the the Environment Protection Rules under the schedule (which includes Building and Construction
Environment Protection 1986 read with MoEF Notification Projects having ≥20000 sq.mtrs and <1,50,000 sq.mtrs. of built-
Rules 1986 read with up area) shall require prior environmental clearance from MoEF
Environmental Impact (“EC”).
Assessment Notification
2006 issued by Ministry
of Environment & Forest
dated 14 September
 2006
5. EPA read with the Section 8 of EPA read with Rule 6 of Authorisation for managing Under the HW Rules, every ‘occupier’ of a ‘facility’ who is
Hazardous and Other the HW Rules hazardous and other wastes engaged in handling, generation, collection, storage, packaging,
Wastes (Management under HW Rules transportation, use, treatment, processing, recycling, recovery,
and Transboundary pre-processing, co-processing, utilization, offering for sale,
Movement) Rules 2016 transfer or disposal of hazardous and other wastes is required
to make an application to obtain authorisation for managing
hazardous and other wastes

As per the HW Rules, facility includes any establishment

wherein the processes incidental to the generation, handling,
collection, reception, treatment, storage, reuse, recycling,
recovery, pre-processing, co-processing, utilization and disposal
of hazardous and/or other wastes are carried out.
6. EPA read with Noise EPA Read with Rule 5 of the Noise Permission Any use of loudspeaker or a public address system shall require
Pollution (Regulation and Pollution (Regulation and Control) prior permission of the applicable authority.
Control) Rules 2000 Rules 2000
The noise level at the boundary of the public place, where
loudspeaker or public address system or any other noise source
is being used shall not exceed 10 dB (A) above the ambient
noise standards for the area or 75 dB (A) whichever is lower.

The peripheral noise level of a privately owned sound system or

a sound producing instrument shall not, at the boundary of the
private place, exceed by more than 5 dB (A) the ambient noise
standards specified for the area in which it is used.

ELECTRICITY

7. Electricity Act 2003 Sections 46 of the Electricity Act Electricity Supply permission Required for new electricity connection for operations,
(“Electricity Act”) extension of load, high tension wires and alteration of services.

FACTORIES ACT

8. Factories Act 1948 read Section 6 of the Factories Act Approval, Licensing and Requiring the registration and licensing of factories or any class
with Rule 5 of the Registration of Factories or description of factories, and prescribing the fees payable for
 Maharashtra Factories such registration and licensing and for the renewal of licences.
Rule 1963
9. Maharashtra Factories Rule 125 of the Maharashtra Information regarding The occupier and the manager shall be jointly or severally
Rule 1963 Factories Rule closure of factories responsible for sending information in duplicate to the
Inspector, of any intended closure of the factory or any shift,
section or department thereof, immediately after it is decided
to do so, and before the closure takes place.

INDUSTRIAL DISPUTES ACT

10. Industrial Disputes Act Section 9A of the Industrial Disputes Notice of change No employer, who proposes to effect any change in the
1947 Act conditions of service applicable to any workman in respect of
any matter specified in the Fourth Schedule, shall effect such
change,-
(a) without giving to the workmen likely to be affected by such
change a notice in the prescribed manner of the nature of the
change proposed to be effected; or
(b) within twenty-one days of giving such notice

THE FOURTH SCHEDULE : Conditions
of Service for Change of which
notice is to be given
(Section 9A)
Notifying the workman (Provisions relevant to shifting)
3. Compensatory and other allowances;
6. Starting, alteration or discontinuance of shift working
otherwise than in accordance with standing orders;
7. Classification by grades;
8. Withdrawal of any customary concession or privilege or
change in usage.
9. Introduction of new rules of discipline, or alteration of
existing rules, except in so far as they are provided in standing
orders;
10.Rationalisation, standardization or improvement of plant or
technique which is likely to lead to retrenchment of workmen;
11. Any increase or reduction (other than casual) in the number
of persons employed or to be employed in any occupation or
process or department or shift, [not occasioned by
circumstances over which the employer has no control].
Section 25C. Right of workmen laid-
off for compensation
Section 25F. Conditions precedent
to retrenchment of workmen
Notifying the workman Whenever a workman (other than a badly workman or a casual
workman) whose name is borne on the muster rolls of an
industrial establishment and who has completed not less than
one year of continuous service under an employer is laid-off,
whether continuously or intermittently, he shall be paid by the
employer for all days during which he is so laid-off, except for
such weekly holidays as may intervene, compensation which
shall be equal to fifty per cent, of the total of the basic wages
and dearness allowance that would have been payable to him
had he not been so laid-off
Notifying the workman No workman employed in any industry who has been in
continuous service for not less than one year under an
employer shall be retrenched by that employer until-
a) the workman has been given one month’s notice in
writing indicating the reasons for retrenchment and
the period of notice has expired, or the workman has
been paid in lieu of such notice, wages for the period
of the notice;
b) the workman has been paid, at the time of
retrenchment, compensation which shall be equivalent
to fifteen days’ average pay or any part thereof in
excess of six months; and
c) notice in the prescribed manner is served on the
appropriate government.
 Section 25FFA. Sixty days’ notice to
be given of intention to close down
any undertaking
Section 25FFF. Compensation to
workmen in case of closing down of
undertakings
11. Industrial Employment Section 3. Submission of draft
(Standing Orders) Act, standing orders
1946
Notice for Closure of an An employer who intends to close down an undertaking shall
Undertaking serve, at least sixty days before the date on which the intended
closure is to become effective, a notice, in the prescribed
manner, on the appropriate government stating clearly the
reasons for the intended closure of the undertaking
PROVIDED that nothing in this section shall apply to-
(a) an undertaking in which-
 less than fifty workmen are employed, or
 less than fifty workmen were employed on an average
per working day in the preceding twelve months.
(b) an undertaking set up for the construction of buildings,
bridges, roads, canals, dams or for other construction work or
project.
Compliance with the Where an undertaking is closed down for any reason
workmen whatsoever, every workman who has been in continuous
service for not less than one year in that undertaking
immediately before such closure shall, subject to the provisions
of sub-section (2), be entitled to notice and compensation in
accordance with the provisions of section 25F, as if the
workman had been retrenched:
PROVIDED that where the undertaking is closed down on
account of unavoidable circumstances beyond the control of
the employer, the compensation to be paid to the workman
under clause (b) of section 25F, shall not exceed his average pay
for three months
Reporting to the (1) Within six months from the date on which this Act
authority becomes applicable to an industrial
establishment, the employer shall submit to the
Certifying Officer five copies of the draft standing
 orders proposed by him for adoption in his
industrial establishment.
(2) Provision shall be made in such draft for every
matter set out in the Schedule which may be
applicable to the industrial establishment, and
where model standing orders have been
prescribed, shall be, so far as is practicable, in
conformity with such model.
(3) The draft standing orders submitted under this
section shall be accompanied by a statement
giving prescribed particulars of the workmen
employed in the industrial establishment
including the name of the trade union, if any, to
which they belong.
(4) Subject to such conditions as may be prescribed,
a group of employers in similar industrial
establishments may submit a joint draft of
standing orders under this section.

Section 10. Duration and Reporting to the 1. Standing orders finally certified under this Act
modification of standing orders concerned Authority shall not, except on agreement between the
employer and the workmen, [or a trade union or
other representative body of the workmen] be

12. Income Tax Act, 1961 Section 280 ZA- Tax credit
certificates for shifting of industrial
undertaking from urban area.
liable to be modification until the expiry of six
months from the date on which the standing
orders or the last modifications thereof came into
operation.
2. Subject to the provisions of sub-section (1), an
employer or workman [or a trade union or other
representative body of the workmen may apply
to the Certifying Officer to have the standing
orders modified and such application shall be
accompanied by five copies of the modifications
proposed to be made, and where such
modifications are proposed to be made by
agreement between the employer and the
workmen [or a trade union or other
representative body of the workmen], a certified
copy of that agreement shall be filed along with
the application.
3. The foregoing provisions of this Act shall apply in
respect of an application under sub-section (2) as
they apply to the certification of the first standing
orders.
TAX
Reporting to the Concerned If any public company owing an industrial undertaking situate in
authority an urban area shifts, with the prior approval of the Board, such
undertaking to any area (not being the area in which such
undertaking is situate), it shall be granted a tax credit
certificate.
(2) The tax credit certificate to be granted under sub-section (1)
 shall be for an amount computed in the following manner with
reference to the amount of the tax payable by the company on
its income chargeable under the head "Capital gains" arising
from the transfer of capital assets being buildings or lands or
any rights in building or lands used for the purposes of the
business of the said undertaking in the urban area, effected in
the course of or in consequence of the shifting of such
industrial undertaking, namely :—
(a) the amount of expenditure incurred by the company in—
 acquiring lands or constructing buildings for the
purposes of the business of the company in the area to
which the undertaking is shifted, and
 shifting its machinery or plant and other effects and
transferring its establishment to such area,
 within a period of three years, from the date of the
approval referred to in sub-section (1), or such further
period as the Board may allow, shall first be
ascertained ;
(b) the amount of the tax credit certificate shall bear to the
amount of tax payable by the company on its income
chargeable under the head "Capital gains" as aforesaid, the
same proportion as the amount of expenditure ascertained
under clause (a) bears to the amount of the said income 

Section 54G. Capital gain exemption Reporting to the concerned Section 54G exempts capital gain arisen on account of transfer
authority of plant or machinery or building or land or any rights in land or
building to a rural area which is being used for the business
purpose of an industrial undertaking situated in an urban area.

The claimant is required to re-invest the amount in shifting of

the industrial undertaking from the urban area to a rural area.
The re-investment is to be made within a period of 1 year
before or 3 years after the date of transfer for the purpose
specified below –
 For purchasing of new plant or machinery for the
business purpose of industrial undertaking shifted in a
rural area.
 For purchasing land or building or constructing a
building for the business purpose of industrial
undertaking shifted in a rural area.
 Expenditure incurred towards shifting of the old
industrial undertaking and establishing the same in the
rural area.
 Incurring any other expenditure as specified by the
Government.