The controversy intensified following the Assembly’s passage of the legislation on October 29, with Opposition leaders questioning provisions transferring authority to grant, modify, suspend or revoke specified approvals to newly constituted committees.
The SARAL framework, formally called Simplified and Accelerated Regulatory Approvals and Licensing, establishes a statutory mechanism intended to consolidate multiple permissions into a single Integrated Enterprise Clearance Certificate.
The legislation covers provisions under 19 state laws, including the Kerala Conservation of Paddy Land and Wetland Act, the Kerala Panchayat Raj Act, the Kerala Municipality Act and applicable building regulations.
Opposition leader Pinarayi Vijayan has argued that concentrating approval powers within the new authority could undermine local self-government institutions and weaken safeguards protecting agricultural land and environmentally sensitive areas.
The objections centre on the distinction between inspecting an industrial establishment and exercising statutory authority to withdraw its permission to operate.
Under the legislation, departments and local bodies retain responsibilities for technical scrutiny, inspections and enforcement of applicable conditions. However, decisions concerning the grant, modification, suspension or cancellation of specified clearances will rest with the designated approval committees.
Critics contend that this arrangement could diminish the effectiveness of regulatory institutions by separating their inspection responsibilities from final licensing decisions.
Chief Minister V D Satheesan has rejected allegations that the legislation removes departmental powers, maintaining that technical scrutiny and existing regulatory requirements will remain applicable.
Industries Minister P K Kunhalikutty has defended the measure as necessary to eliminate procedural delays that discourage investment and complicate industrial development.
The government maintains that the legislation does not dilute existing environmental protection requirements or safety standards. Clearances mandated under central legislation must also be obtained separately from the authorities concerned.
During the Assembly debate, G Sudhakaran raised objections concerning the possible implications for paddy fields and wetlands, prompting an exchange with the government over land protection provisions.
Vijayan supported those concerns, alleging that the proposed clearance structure could facilitate encroachment on environmentally sensitive land and restrict the authority of elected local institutions.
Kunhalikutty assured legislators that the legislation would not authorise unlawful reclamation of paddy fields or compel landowners to surrender their property.
The Opposition nevertheless staged a walkout after its objections failed to secure the changes sought during legislative consideration.
The new system establishes separate approval arrangements based on the size of investment. Projects exceeding ₹25 crore but not exceeding ₹50 crore will be processed through district-level committees chaired by District Collectors.
Projects involving investments above ₹50 crore will come under the state-level approval mechanism headed by the Chief Secretary.
Applications must be processed within a maximum of 75 days, excluding periods during which applicants are required to correct deficiencies in their submissions.
The procedure allocates 10 days for registration and forwarding of applications, followed by 30 days for technical scrutiny by the departments concerned.
A further 15 days is provided for the appraisal committee to consolidate departmental findings and recommendations. The approval committee must then reach its decision within 20 days.
The legislation also introduces a consolidated defect memorandum, preventing individual departments from issuing successive demands for additional documentation directly to applicants.
Officials argue that this provision will reduce repeated correspondence and make the clearance process more predictable for entrepreneurs.
The Kerala State Industrial Development Corporation will coordinate the administrative process through the SARAL secretariat and its common application system.
Local body secretaries will have representation in district-level appraisal arrangements, although the final approval structure places decision-making responsibility with the statutory committees.
The legislation provides an appellate mechanism for applicants dissatisfied with clearance decisions, with the state-level approval committee designated to consider appeals.
SARAL represents a departure from the existing K-SWIFT arrangement, under which applications are channelled through a common platform while individual departments retain responsibility for issuing their respective licences.
The new framework instead assigns responsibility for the integrated certificate to the approval authority after departmental examination and appraisal.
The legislation also permits applications to be submitted electronically through the designated portal or physically through the SARAL secretariat.
Its provisions are to become operational on a date notified by the government in the Official Gazette.
(The article ‘Row over SARAL law bypassing local bodies’ appeared first on Free Press Journal.)
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