Tamil Nadu Panchayats (Procedure for granting permission for the establishment of factories/ industries and the installation of machineries) Rules, 2024
The Government of Tamil Nadu's Rural Development and Panchayat Raj (PR.II) Department issued G.O. (Ms) No.170 dated 12 November 2024, notifying rules for permission to establish factories or industries and install machinery in Tamil Nadu Panchayats. The rules create an online application, inspection, approval, deemed approval, suspension and appeal process.
What the rules govern
The Tamil Nadu Panchayats (Procedure for granting permission for the establishment of factories/ industries and the installation of machineries) Rules, 2024 apply when a factory or industry is to be established, or machinery installed, in a Panchayat. They distinguish micro, small and medium enterprises from other or large industries.
The rules affect business owners, company shareholders, property owners and occupiers proposing industrial use within Panchayat areas. Buyers or landlords should check whether the required permission has been obtained and remains valid.
Application requirements
An owner or company shareholder seeking permission must apply online to the Inspector of Panchayats in FORM 1. The application must be submitted at least 45 days, but not more than 90 days, before the premises are used for the proposed purpose.
Required supporting material includes:
- Approved identity proof for an individual, or a Permanent Account Number card or incorporation certificate for a body corporate.
- A lease deed, rental agreement, latest property tax receipt for owner occupied property, or a latest Goods and Services Tax return showing the premises address.
- A sworn affidavit in FORM 2 where valid address proof or the relevant tax return is unavailable.
- Compliance with the Tamil Nadu Combined Development and Building Rules, 2019.
- Technical approval from the Department of Town and Country Planning or the Chennai Metropolitan Development Authority, as applicable.
- Compliance with fire safety norms and a certificate from the Tamil Nadu Fire and Rescue Services Department.
Verification, inspection and approval
The Inspector of Panchayats must return a defective application within seven days and ask for missing information. Inspection may consider site suitability, danger to life, health or property, possible nuisance, and any river, stream or channel crossing the premises. Micro enterprises have no field inspection unless the Inspector of Panchayats specifically directs one.
Permission may be granted in FORM 4 after the required fee is paid online, or refused with written reasons. The applicant must receive an opportunity to be heard before refusal.
If an application is not disposed of within 45 days from receipt, permission is deemed granted when that period expires, provided the permission fee has been duly paid.
Ongoing duties and enforcement
Permission holders must follow sanitation, drainage, ventilation, waste management and disease control requirements. Permission must be displayed prominently, authorised inspections must be allowed, and the factory or industry signboard must be in Tamil.
The Inspector of Panchayats may suspend or revoke permission obtained fraudulently, used for another purpose, or operated in breach of a condition. Written notice, seven days to respond and an opportunity to be heard are required. An affected person may appeal online in FORM 5 to the Director of Rural Development and Panchayat Raj within 30 days of receiving the decision.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
How early must I apply before using a Panchayat property as a factory?
You must apply online at least 45 days and not more than 90 days before the property is used for establishing the factory or industry or installing machinery.
Will a micro enterprise always have a site inspection?
No. The rules state that a micro enterprise will not have a field inspection unless the Inspector of Panchayats specifically directs one.
Can permission be treated as granted if the Panchayat authority does not decide my application?
Yes. If the application is not disposed of within 45 days from receipt, permission is deemed granted after that period, provided the permission fee has been duly remitted.
Can I appeal if permission is refused, cancelled or suspended?
Yes. An affected person may appeal online in FORM 5 to the Director of Rural Development and Panchayat Raj within 30 days from receiving the decision.
