Monday 18 February 2019

Andhra Pradesh - Exempt all the Shops and Establishments Registration Certificate

Exempt all the Shops and Establishments Registration Certificate

Andhra Pradesh 


In exercise of the powers conferred under sub-section (4) of section 73 of the Andhra Pradesh Shops and Establishments Act, 1988 (Andhra Pradesh Act No.20 of 1988), Government hereby exempt all the shops and establishments registered under section 3 of the said Act with effect from the date of publication of this notification.

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Worker engaged merely for two three days not coverable under ESI.


2015 LLR 954  PUNJAB & HARYANA HIGH COURT Hon'ble Mr. Kuldip Singh, J. FAO No. 2661/2012 (O&M), D/–23-4-2015

Employees' State Insurance Corporation & Ors. vs. Parminder Singh

EMPLOYEES' STATE INSURANCE ACT, 1948 – Sections 2(9), 75 and 77 –Applicability of the Act in respect of casual workers – 8 regular employees and 3 casual employees engaged for 3 days were found working at the time of inspection – ESI Authority covered the respondent firm under the Act – Respondent challenged the order of the ESI Authority under sections 75 and 77 of the Act – Learned Civil Judge (Senior Division) allowed the petition holding that petitioner-firm is not covered under the provisions of the Act since casual workers cannot be treated as employees under section 2(9) of the Act – Petitioner challenged the order of the Civil Judge by filing appeal – Held, for coverage under the Act, the employee must be employed for wages or in connection with the work of the factory – However, the engagement of casual workers for 2-3 days cannot be treated as employees for coverage under the Act – Hence, appeal is dismissed. Para 5

For Appellants : Mr. B.S. Bhatia, Advocate.

For Respondent : Mr. Rajang Bansal, Advocate.

IMPORTANT POINTS
For coverage under the Employees' State Insurance Act, 1948, the employees must be employed for wages or in connection with the work of the factory.


The engagement of casual workers for 2-3 days cannot be treated as employees for coverage under section 2(9) of the Employees' State Insurance Act, 1948.


ORAL

KULDIP SINGH, J.—1. Employees State Insurance Corporation and others have impugned order dated 20.12.2011, passed by the learned Civil Judge (Senior Division), Bathinda, vide which, the petition filed by the respondent Parminder Singh under Sections 75 and 77 of the Employees State Insurance Act, 1948 (for short, ‘the ESI Act'), was allowed and it was held that the petitioner firm(respondent herein) is not covered under the provisions of the ESI Act.
Briefly stated, certain demands were raised by ESI Corporation for the certain period on the ground that the firm of the petitioner (respondent herein) is covered under the ESI Act. The assertions were denied by the petitioner (respondent herein).

Undisputedly, in this case, 8 regular employees were employed by the petitioner (respondent herein) and 3 casual employees were found working at the time of inspection. The law point arising for consideration is as to whether 3 employees, who were employed for 3 days, are to be treated as casual employees for the purpose of computing the number of employees to be above 10 under the ESI Act.
I have heard learned counsel for the parties and have also carefully gone through the file.

Admittedly, in this case, the proved facts are that 8 regular employees were employed by the respondent firm and that as per record, Jagjit Singh and two labourers were employed for 3 days for carrying out some repair of the machinery. The lower Court held that they were engaged casually and cannot be treated as employees as per provisions of Section 2(9) of the ESI Act.
Learned counsel for the appellant has relied upon the authority in the case of Regional Director, Employees' State Insurance Corporation, Madras v. South India Flour Mills (P) Ltd. , AIR 1986 SC 1686, wherein the workers employed for the construction of the additional building of the factory were treated as employees as per Section 2(9) of the ESI Act. Reliance has also been placed upon the authorities in the cases of Employees State Insurance Corporation v. Shri Onkar Nath Gupta , Vol . LXXXIV-1982. The Punjab Law Reporter 599 and Employees State Insurance Corporation, Chandigarh v. Oswal Woolen Mills Ltd., Millar Ganj, Ludhiana .

Section 2(9) of the ESI Act provides as under:—

2(9) “ employee ” means any person employed for wages in or in connection with the work of a factory or establishment to which this Act applies and—

(i) who is directly employed by the principal employer on any work of, or incidental or preliminary to or connected with the work of, the factory or establishment, whether such work is done by the employee in the factory or establishment or elsewhere; or

(ii) who is employed by or through an immediate employer on the premises of the factory or establishment or under the supervision of the principal employer or his agent on work which is ordinarily part of the work of the factory or establishment or which is preliminary to the work carried on in or incidental to the purpose of the factory or establishment; or

(iii) whose services are temporarily lent or let on hire to the principal employer by the person with whom the person whose services are so lent or let on hire has entered into a contract of service; (and includes any person employed for wages on any work connected with the administration of the factory or establishment or any p apprentice engaged under the Apprentices Act, 1961 (52 art, department or branch thereof or with the purchase of raw materials for, or the distribution or sale of the products apprentice engaged under the Apprentices Act, 1961 (52 of, the factory or establishment; or any person engaged as an apprentice, not being an apprentice engaged under the Apprentices Act, 1961 (52 of 1961), (and includes such person engaged as apprentice whose training period is extended to any length of time ) but does not include)

(a) any member of (the Indian) naval, military or air forces; or

(b) any person so employed whose wages (excluding remuneration for overtime work) exceed (such wages as may be prescribed by the Central Government):

Provided that an employee whose wages (excluding remuneration for overtime work) exceed (such wages as may be prescribed by the Central Government) at any time after (and not before) the beginning of the contribution period, shall continue to be an employee until the end of that period);
The perusal of the definition shows that the employee must be employed for wages or in connection with the work of the factory. Now, the question would arise whether the nature of engagement for doing some temporary work for 2-3 days is to be treated as employment for wages. I am of the view that it is not so. Employment for wages means that it is some kind of regular employment being done for a considerable period. The engagement for 2-3 days cannot be treated as employment for a considerable period. As such, I do not find any illegality or infirmity in the impugned order.

Consequently, the present appeal is dismissed.

Sunday 17 February 2019

No Agreement Can Empower An Employer to prohibitate an Employee to Join Similar Concern

During joining of an Employee have no option but to sign the job agreement, as there is personal & social instability pressure going inside, he may had no bargaining power and was in need of employment.
An employee, particularly, after the cessation of his relationship with his employer is free to pursue his own business or seek employment with someone else.
However, during the subsistence of his employment, the employee may be compelled not to get engaged in any other work or not to divulge the business/trade secrets of his employer to others and, especially, the competitors.
The law is well-settled that all contracts in restraint of trade are void and hit by Section 27 of the Contract Act. A judgment of this Court in Krishan Murgai v. Superintendence Co. of India, succinctly deals with the law on this point.
This stipulation was prima facie against public policy of India and an arm twisting tactic adopted by an employer against a young man who was looking for a job. 
Everybody has a right to strive for progress in career. The restrictions imposed upon the employee in the Agreement is thus void and unconscionable. Section 14(c) and (d) of the Specific Relief Act also prohibits grant of such injunctions. 

The balance of such convenience is more in favor of the employee who has to make his livelihood by seeking employment in the trade in which he has some experience. 

In the case of - Ambiance India Pvt. Ltd. vs Shri Naveen Jain on 16 March, 2005 Equivalent citations: 122 (2005) DLT 421, 2005 (81) DRJ 538  - No irreparable loss/injury would be caused to the plaintiff as its contract with M/s. Indigo Orient Limited, with whom the defendant is working, has already come to an end by efflux of time and it is not pleaded that the same has been renewed. The plaintiff can be adequately compensated in terms of money and may claim damages for the breach, if any. 

Accordingly, IA No.4894/2004 stands dismissed. 
Nothing stated herein shall be taken as an expression of opinion on the merits of the suit pending before the Court in as much as the observations made herein are tentative only.




Standard Operating Procedure (SOP) for settlement of claims in EPFO

This Standard Operating Procedure (SOP) of EPFO, for settlement of claims, has been prepared as per the existing procedure in Manual of Accounting Procedure (MAP) and other instructions/ circular issued by the Head Office from time to time.

Standard Operating Procedure for Claims Settlements
Purpose: The purpose of this document is to delineate the procedure from the receipt of claims from members to settlement of claims & transfer of claim amount to member account.

Authority and source of SOP:
(i) The Employees Provident Funds and Miscellaneous Provisions Act, 1952.
a) The Employees Provident Funds scheme, 1952
b) The Employees' Pension Scheme, 1995
c) The Employe,es' D_ep_osit-Linked Insurance scheme, 1976.
d) Manual of Accounting Procedures
e) Claims Software user Manual.
f) Various circulars issued from time to time

PROCEDURE FOR SETILEMENT OF CLAIMS
Receipt of claim forms in EPFO's Field Offices:
1. Received through Post.
2. Brought by member or by his representative
3. Brought by Employer's representative.
4. Received through online mode for transfer claims (Form 13)
5. By drop box being maintained in the Office.

PRO/Receipt counter
DA receipt/PRO to follow the check points prescribed for scrutiny of various claim forms:
Composite Claim Form (Aadhar)/Composite Claim Form (Non-Aadhar):
Forms No. 19, lOC and 31 has been replaced with Composite Claim Form
(Aadhar) and Composite Claim Form (Non-Aadhar). 
  1. For the purpose of PF part withdrawal (Advances/withdrawal), the purpose of advance & documents required includes as under:
    1. Housing Loan/Purchase of site/house/flat or for construction/Addition alteration in existing house/ Repayment of Housing loan: No document is required. New Declaration Form/Utilization Certificate required earlier has been discontinued.
    2. Illness of member/family:
      • Certificate of doctor and
      • Certificate by employer that ESIC facility is not available to the member may be submitted by the member.
    3. Marriage of self/son/daughter/brother/sister: No document/Marriage Card is required.
    4. Post Matriculation education of children: No document is required. 
    5. Lockout or closure of factory/Cut in supply of electricity: No document is required
    6. Natural calamity: No document is required.
    7. Purchasing equipment by physically handicapped: Medical certificate is required.
    8. One year before retirement: 90% of total PF balance can be withdrawn. No document is required.
    9. Investment in Varistha Pension Bima Yojana: 90% of total PF balance can be transferred to UC. No document is required.
  2. Copy of cancelled cheque/self-attested copy of first page of Pass Book clearly showing member's name printed on it.
  3. No Revenue stamp (Re. 1/-) is required to be affixed by the member.
  4. The Composite Claim Form (Aadhar) is applicable in cases where a - member's complete details in Form-11.(New), Aadhar number and bank account details are available on the .UAN Portal and UAN has been activated. Such members can submit this form directly to the concerned EPFO office, without attestation of claim form by the employers.
(Source: Circular No. Manual/ Amendment/2011/Pt/31792 dated 20.02.2017)


Pension Cl aim Form (Aadhar)- 10D

  1. The Aadhar number and bank account number of the employee are seeded as and digitally verified by the employer 
  2. All the details of the employee are available in Form No.-11 (New)
  3. A cancelled cheque containing name of the employee, bank account number and IFSC Code is attached with the claim form. iv) Attestation of employer on Pension Claim Form (Aadhar) is not required.
(Source: Circular No. Pension-1(7)96/2017/Forms/32614 dated 03.03.2017)


Composite Claim Form in Death Cases:

Composite Claim Form in Death cases only has been replaced the existing Forms No. 20, 5 IF & 10-0. In case of death of the member, a claimant/nominee/legal heir/surviving member may apply for claim of provident fund, insurance fund and the monthly pension in a single form.

Following enclosure should be attached with the Composite Claim Form in Death case:
i) Death Certificate
ii) JJint photograph of all the claimants
iii) Date of Birth certificate of the children claiming pension
iv) Scheme Certificate (if applicable)

(Source: Circular No. Manual/Amendment/2011/Pt/163 dated 03.03.2017)

In addition to the above, DA receipt/PRO to check whether all the following data is to be properly filled in the claim form.

(a) Member's Name
(b). Father's/Husband's Name
(c). Date of Birth
(d) Date of Joining
(e) Date of exit - To ascertain completion of two months cooling off period
(f) Bank details - From the bank A/c statement or cancelled cheque or first Page of the Bank Pass Book duly attested by the authorized signatory enclosed with claim form.
(g) Stamp of Company - Showing name of employer/establishment (only in case of Non-Aadhar claim form)
(h) Availability of member's signature
(i) PAN No./lSG/lSH (>60 years age) - in case member's service is <5 years and the amount payable is >Rs. 50,000 w.e.f. 1st June, 2016.

Segregation & Forwarding of claim to Accounts Section:

Receipt Section segregates the applications relating to advances/withdrawals, final settlement, benefits and transfer [Form 13(R), 14, Composite Claim Form (Aadhar), Composite Claim Form (Non-Aadhar), Composite Claim Form in Death cases and Pension Claim Form {Aadhar), Accounts Section-wise with date stamp on each application received during the day.
The segregated/sorted claim forms are forwarded to the concerned Section. Supervisor with duplicate copies of the Receipt Report/ list for settlement under the respective Schemes on same day itself or at most next working day.

PROCESSING OF CLAIM IN ACCOUNTS SECTION:
•!• ROLE OF DEALING ASSISTANT (D.A):

Composite Claim form (Aadhar/Non-Aadhar)/FORM 19:

1. On receipt of the claim by the concerned Accounts Groups DA, preliminary checks as provided in para 10.15 of the MAP. Vol-II has to be followed. The check points are as under:

a) The accumulations have become payable under the scheme; b) That the form-is received through the 'dak-in-ward' section in computer prepared inward sheet;
c) That the form is correctly filled in and either signed or affixed with the impression of the left hand thumb
d) That the form has been attested and dated by the employer (Non-Aadhar Form) or any of the authorised officials and that the official seal of the attesting officer is affixed on the application.
e) That the signature of the employer or his authorised official tallies with the specimen signature card in the custody of the dealing hand. /J That the claim form need not be returned if the signature of the member does not agree exactly with the signature in the nomination form provided the of aims are attested by the employer· or his authorised official over their official seal. However, any serious observation brought out by the Section Supervisor should be examined
g) That the application is supported by the relevant certificates, wherever necessary according to the 'instructions' to the member.
h} That the claim form has been submitted after completion of two months from the date of leaving service, wherever necessary.
i) That the name, father's name (Husband's name) account number, date and reason for leaving service tally with the particulars available on records such as Form-9 and Form-2.
j) That the postal address given in the claim form is complete so as to send payment intimation to the member; that the overwriting or corrections in this portion is duly attested by the claimant.
k) That the particulars of bank account number and full address of the bank, IFS Code are furnished in the form.
J The check point No. {XI) of para 10.15 of MAP Vol-II has been amended vide circular letter No. WSU/17(2)2000/7637 dated 15th June, 2012 whereby the mode of payment through joint bank account with spouse shall be acceptable henceforth.
m} The date of joining and date of exit from the establishment are mandatorily to be updated with reference statuary return Form No. 5 & 10 or from the claim form received by the office from the establishment.
n) The dates of exit from employment and reason for leaving the employment should be checked by the concerned DA.
o) The correspondence address as per claim application of the member is required to be entered in the application.
p) The Mode of remittance opted by the member is entered. The Bank details provided in the application are verified through cancelled cheque/copy of passbook enclosed with the claim form duly attested by the authorized signatory.

Composite Claim Form in Death cases/FORM 20, 5 IF and 10-D

In addition to the check points prescribed for Composite Claim Form (Aadhar/NonAadhar)/Form-19, the following should also be verified:
a) Whether the claimant is valid nominee (S) as per Form No. 2 (Revised) verify with the nomination data in the application. The details in this respect should be updated first.
b) Whether the claimant is guardian on behalf of minor. If so, guardianship certificate is enclosed. The details in this respect should be updated first.
c) Death Certificate is enclosed, whether death occurred after leaving the service?
d) In case of absence of Form 2, payment may be released on the basis of succession certificate (within the provisions of para 70 of EPF scheme). However in order to deal with nominations and family members cla imants in normal course succession certificate may not be insisted upon. Only in cases where there is doubt or dispute, succession certificate may be called for. (Pension/ A&C/Widow pension//00/333499 dated 21st Dec2015.
e) Whether the claimant, not being a nominee, falling under 'family' of the member as per the family certificate enclosed.
f) If the claim forms are in order then the input data sheet is prepared by the DA checked 100% by Section supervisor/AO and along with the claim forms is sent to Pension Section for further processing and generation of PPO.


FORM 10 C/10 D/10 D (SPL.)

a) On receipt of the above mentioned Forms by the concerned Accounts Groups DA, preliminary checks as provided in Para 9.4 of the MAP. Part-Ill has to be followed.
b) It is mandatory to furnish Aadhar number for settlement of Pension (100) cases and not in withdrawal lOC cases. (Pension 1-17(10) 2016-17/Jeevan Praman/32049 dated 28/02/2017.)
c) If the claim forms are in order then the input data sheet is prepared by the DA checked 100% by Section supervisor/AO and along with the claim forms is sent tq .
Pension Section for further processing and generation of PPO.
d) The particular in the claim is to be verified for its correctness with reference to Form 9.
e) The application has to be carefully examined to ensure whether the member has opted for scheme certificate or withdrawal benefit. Where the eligibility is 10 years and above the member is eligible only for Scheme certificate accordingly, the same should be issued irrespective of his option against the Scheme certificate.
f) The input sheet (IDS-input data sheet after AO authorization) as received from accounts section is re-checked for correctness, from the available data and a pension worksheet is generated which is again approved at AO/ APFC level.
g) If any details/enclosures are found missing/not matched in IDS, the case is returned to Accounts Section with reasons of return mentioned thereof after the approval of -AO.

Further for all types of claims the dealing assistant to ensure that before processing the claims the forms are duly filled up and no column is left blank. The incomplete daim/ineligible claim be submitted to Accounts Offices through Section Supervisor duly indicating the deficiencies such as incomplete form, wrong details filled
in the form, missing enclosures etc. The AO would authorize return of claims for rectification to the members.









The Companies (Amendment) Ordinance, 2018


  • The Companies (Amendment) Ordinance, 2018 was promulgated on November 2, 2018. It amends several provisions in the Companies Act, 2013 relating to penalties, among others.  
  • Issue of shares at a discount: The Act prohibits a company from issuing shares at a discount, except in certain cases.  On failure to comply, the company is liable to pay a fine between one lakh rupees and five lakh rupees every officer in default may be punished with imprisonment up to six months or fine between one lakh rupees and five lakh rupees.  The Ordinance changes this to remove imprisonment for officers as a punishment.  Further, the company and every officer in default will be liable to pay a penalty equal to the amount raised by the issue of shares at a discount or five lakh rupees, whichever is lower.  The company will also be liable to refund the money received with interest at 12% per annum from the date of issue of the shares.
  • Commencement of business: The Ordinance states that a company may not commence business, unless it (i) files a declaration within 180 days of incorporation, confirming that every subscriber to the Memorandum of the company has paid the value of shares agreed to be taken by him, and (ii) files a verification of its registered office address with the Registrar of Companies within 30 days of incorporation.  If a company fails to comply with these provisions and is found not to be carrying out any business, the name of the Company may be removed from the Register of Companies. 
  • Registration of charges: The Act requires companies to register charges (such as mortgages) on their property within 30 days of creation of charge.  The Registrar may permit the registration within 300 days of creation.  If the registration is not completed within 300 days, the company is required to seek extension of time from the central government.
  • The Ordinance changes this to permit registration of charges: (i) within 300 days if the charge is created before the Ordinance, or (ii) within 60 days if the charge is created after the Ordinance. If the charge under the first category is not registered within 300 days, it must be completed within six months from the date of the Ordinance.  If the charge under the second category is not registered within 60 days, the Registrar may grant another 60 days for registration.  If a person wilfully furnishes false or incorrect information, or suppresses material information which is required to be registered under this provision, he will be liable for fraud under the Act.
  • Change in approving authority: Under the Act, change in period of financial year for a company associated with a foreign company, has to be approved by the National Company Law Tribunal.  Similarly, any alteration in the incorporation document of a public company which has the effect of converting it to a private company, has to be approved by the Tribunal.  Under the Ordinance, these powers have been transferred to central government. 
  • Declaration of beneficial ownership: If a person holds beneficial interest of at least 25% shares in a company or exercises significant influence or control over the company, he is required to make a declaration of his interest. Under the Act, failure to declare this interest is punishable with a fine between one lakh rupees and ten lakh rupees, along with a continuing fine for every day of default.  The Ordinance provides that such person may either be fined, or imprisoned for up to one year, or both.
  • Remuneration for independent directors: The Act restricts an independent director from entitlement to stock options.  It further states that he may receive sitting fees, commission, and reimbursement of expenses.  The Ordinance removes this provision.
  • Disqualification of directorship: Under the Act, a person cannot be a director in more than 20 companies.  The Ordinance provides that contravening this provision will be a ground for disqualification from directorship.
  • Adjudication of penalties: The Act allows the central government to appoint adjudicating officers to decide penalties under the Act.  The Ordinance states that these officers, in addition to imposing penalties, may direct the defaulting entity to rectify the default.
  • Compounding: Under the Act, a regional director can compound (settle) offences with a penalty of up to five lakh rupees.  The Ordinance increases this ceiling to Rs 25 lakh. 
  • Repeat defaulters: Under the Ordinance, if a company, or an officer, or other person commits a default again within three years of the previous case, the entity will be liable to twice the penalty as provided for such default. 


Supervisors not entitled to overtime for additional work

2019 LLR 19 BOMBAY HIGH COURT Hon’ble Mr. A.S. Oka, J. Hon’ble Mr. MW. Sonak, J. WP No. 4900/2007, Dt/–26­9­2018 Jitendra Anant Mahatre and Others vs. Union of India and Others   FACTORIES ACT, 1948 – Sections 59, 2(1) and 64 – O.M. dated 01.07.1998, Clause (i) – Overtime – Excess work more than 48 hours

Saturday 16 February 2019

Employees' State Insurance (Central) (Amendment) Rules 2019

Employees' State Insurance (Central) (Amendment) Rules 2019


MINISTRY OF LABOUR AND EMPLOYMENT 
NOTIFICATION 
New Delhi, the 15th February, 2019 

G.S.R. 121(E).—The following draft of certain rules further to amend the Employees' State Insurance (Central) Rules, 1950 which the Central Government,  after consultation with  the Employees' State Insurance Corporation, proposes to make in exercise of the powers conferred by Section 95 of the Employees' State Insurance Act, 1948 (34 of 1948), is hereby published as required by sub-section (1) of the said Section, for information of all persons likely to be affected thereby and notice is hereby given that the said draft rules will be taken into consideration after thirty days from the date of publication in the Official Gazette.
Any objection or suggestion, which may be received from any person in respect of the said draft rules within the period specified above, will be considered by the Central Government. 

The objections and suggestions may be addressed to Shri S. K Singh, Under Secretary, Ministry of Labour and Employment, Shram Shakti Bhawan, Rafi Marg, New Delhi-110001.
DRAFT RULES 


1. (i)  These rules may be called the Employees' State Insurance (Central) (Amendment) Rules, 2019.
           (ii) They shall come into force on the date of its final publication in the Official Gazette. 

2.     In Rule 51 of the Employees' State Insurance (Central) Rules, 1950, the following amendment shall be made :—  

(a)  In Rule 51(a) for the words “equal to four and three fourth percent of the wages”, the words “equal to four percent of the wages” shall be substituted.
(b)  In Rule 51(b), for the words “equal to one and three fourth percent of the wages”, the words “equal to one percent of the wages” shall be substituted. 
 
[F. No. S-38012/01/2016-SS-I]
MANISH GUPTA,  Jt. Secy.
Note: The principal rules were published in the Gazette of India, Part II, Section 3, Sub-section (i) vide notification number S.R.O. 212 dated the 22nd June, 1950. 







 

The Minimum Wages (Central) Amendment Rules, 2019

The Minimum Wages (Central) Amendment Rules, 2019

MINISTRY OF LABOUR AND EMPLOYMENT NOTIFICATION 
New Delhi, the 29th January, 2019 

G.S.R. 56 (E).— Whereas a draft of certain rules further to amend the Minimum Wages (Central) Rules, 1950, among other rules, were published as required by sub-section (1) of section 30 of the Minimum Wages Act, 1948 (11 of 1948), in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide notification of the Government of India in the Ministry of Labour and Employment number G.S.R. 413(E), dated the 23rd April, 2018, inviting objections and suggestions from all persons likely to be affected thereby, within a period of three months, from the date on which copies of Official Gazette containing the said notification were made available to the public; 

And whereas copies of the said Official Gazette were made available to the general public on the 23rd April, 2018; 
And whereas the objections and suggestions received on the said draft rules from the public have been considered by the Central Government; Now, therefore, in exercise of the powers conferred by section 30 of the said Act, the Central Government hereby makes the following rules further to amend the Minimum Wages (Central) Rules, 1950, namely:- 

1. (1) These rules may be called the Minimum Wages (Central) Amendment Rules, 2019. 
(2) They shall come into force on the date of their publication in the Official Gazette. 

2. In the Minimum Wages (Central) Rules, 1950,- 

(a) in rule 21, for sub-rule (4A), the following sub-rule shall be substituted, namely:- 

‘(4A) Every employer shall, on or before the 1st day of February in each year, upload unified annual return in Form III on the web portal of the Central Government in the Ministry of Labour and Employment giving information as to the particulars specified in respect of the preceding year: Provided that during inspection, the inspector may require the production of accounts, books, registers and other documents maintained in electronic form or otherwise. 

Explanation.- For the purposes of this sub-rule, the expression “electronic form” shall have the same meaning as assigned to it in clause (r) of section 2 of the Information Technology Act, 2000 (21 of 2000).’; (b) in Form III, for the word, figures, brackets and letter “Rule 21(4A)(1)”, the word, figures, brackets and letter “Rule 21(4A)” shall be substituted. 

[No. Z-20025/22/2018-LRC]
MANISH KUMAR GUPTA, 
Jt. Secy.

Friday 15 February 2019

Amendment Of Industrial Disputes (Central) Amendment Rules, 2019

Ministry of Labour and Employment vide notification no G.S.R. 59 E, has made amendments to rule 56A of The Industrial Disputes (Central) Rules, 1957 where Employer shall on or before 1st day of February in each year shall upload online unified annual return in Form GI in the Web Portal of Central Government in the Ministry of Labour and Employment giving information as to the particulars specified in respect of the preceding year. During inspection the Employers are required to produce to Inspector the documents like accounts, books, registers and other documents maintained in electronic form or otherwise

MINISTRY OF LABOUR AND EMPLOYMENT 
NOTIFICATION 
New Delhi, the 29th January, 2019 
G.S.R. 59(E).— Whereas a draft of certain rules further to amend the Industrial Disputes (Central) Rules, 1957, among other rules, were published as required by sub-section (1) of section 38 of the Industrial Disputes Act, 1947 (14 of 1947), in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i) vide notification of the Government of India in the Ministry of Labour and Employment number G.S.R. 413(E), dated the 23rd April, 2018, inviting objections and suggestions from all persons likely to be affected thereby, within a period of three months, from the date on which copies of Official Gazette containing the said notification were made available to the public; And whereas copies of the said Official Gazette were made available to the general public on the 23rd April, 2018; 
And whereas the objections and suggestions received on the said draft rules from the public have been considered by the Central Government; Now, therefore, in exercise of the powers conferred by section 38 of the said Act, the Central Government hereby makes the following rules further to amend the Industrial Disputes (Central) Rules,1957, namely:— 
1. (1) These rules may be called the Industrial Disputes (Central) Amendment Rules,2019. 
(2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Industrial Dispute (Central) Rules, 1957, for rule 56A, the following rule shall be substituted, namely:— 
56A. Annual return.—Every employer shall, on or before the 1st day of February in each year, upload unified annual return in Form G1 on the web portal of the Central Government in the Ministry of Labour and Employment giving information as to the particulars specified in respect of the preceding year:

Provided that during inspection, the inspector may require the production of accounts, books, registers and other documents maintained in electronic form or otherwise.

Explanation.—For the purposes of this rule, the expression “electronic form” shall have the same meaning as assigned to it in clause (r) of section 2 of the Information Technology Act, 2000 (21 of 2000).’

[F. No. Z-20025/25/2018-LRC] MANISH KUMAR GUPTA, Jt. Secy. Note: The Industrial Dispute (Central) Rules, 1957 was published in the Gazette of India vide notification number S.R.O. 770, dated the 10th March, 1957 and lastly amended vide notification number G.S.R.417(E) dated the 25th May, 2015. 

Monday 11 February 2019

Basic Wages for the purpose of PF contributions


The definition of ‘Basic Wages’ has been defined under Section 2(b) of the Employees Provident Fund and Miscellaneous Provisions Act, 1952 as below:
Section 2(b) “basic wages” means all emoluments which are earned by an employee while on duty or on leave or on holidays with wages in either case in accordance with the terms of the contract of employment and which are paid or payable in cash to him, but does not include
  1. The cash value of any food concession; 
  2. Any dearness allowance (that is to say, all cash payments by whatever name called paid to an employee on account of a rise in the cost of living), house rent allowance, overtime allowance, bonus, commission or any other similar allowance payable to the employee in respect of his employment or of work done in such employment; 
  3. Any presents made by the employer;

From the above definition it is lucid that all the emoluments which are earned by an employee other than those specifically excluded components given under clause i, ii & iii, would be the basic wages for the purposes of contribution under the Act.

All the components viz basic wages, dearness allowance and retaining allowance specified in Sec 6 have been explained at Sec 2(b) and Section 6 categorically without leaving any room for ambiguity. 

The above definition has also been time and again called for by various judicial forums while deciding the cases filed against Section 7A orders some of which are given below for ready reference: 

The Hon’ble Division Bench of the High Court of Calcutta in the Regional Provident Fund Commissioner (II), West Bengal & Anr. v Vivekananda Vidya Mandir & Ors, 2005 had held that in order to exclude any allowance from the purview of Section 6 which provides for liability to pay contribution based on basic wages, such allowance should fall under Clauses (i), (ii) and (iii) of Section 2(b) which enumerate allowances which are not included in the definition of basic wages.

While the Hon’ble Supreme Court in Jay Engineering Works Ltd v Union of India, ruled that the expression ‘any other similar allowance’ should be of the same type as the allowances mentioned in the clause such as ‘dearness allowance’, ‘house rent allowance’, ‘overtime allowance’, ‘bonus’ and ‘commission’ as specifically excluded under Section 2(b) of the Employees Provident Fund and Miscellaneous Provisions Act 1952

The Hon’ble Gujarat High Court in the case of Gujarat Cypromet Ltd V Assistant Provident Fund Commissioner; and the Hon’ble High Court of Karnataka in the case of Group 4 Securities Guarding Ltd. v Regional Provident Fund Commissioner, had specifically stated that 

“Any agreement entered into between the employer and its employees for splitting of the amount payable by the employer to its employees for the service rendered by them, cannot take away the power of the Commissioner under Section 7A of the Act to look into the nature of the contract entered into between the employer and its employees and decide that splitting up of the pay payable to the employees under several heads is only subterfuge to avoid payment of contribution by the employer to the provident fund. It was open to the Commissioner to lift the veil and read between the lines to find out the pay structure fixed by the employer to its employees and to decide the question whether the splitting up of the pay has been made only as a subterfuge to avoid its contribution to the provident fund.” 

Similarly in Ponni Sugars and Chemicals Ltd., v. Cauvery Sugar and Chemicals Ltd., and others- 2001(91) FLR.486:2001(2) LLJ.1201:2002 LLR.25 it was held that the expression ‘basic wages’ has to receive an interpretation which would achieve the object of the enactment.
The Act has to be considered in its proper perspective and contextual so as to fructify the legislative intentions underlying the enactment. Even if two views are possible, the view which furthers the legislative intention should be preferred to the one which would frustrate it. Relevance is also made on the following land mark judgments which had always ruled that the beneficial intent of the Act is of paramount importance when there is an issue of deciding the due benefits, which are as below:

The Division Bench of the Hon’ble High Court of Andhra Pradesh has clearly stated in the Nazeena Traders (Private) Limited v The Regional Provident Fund Commissioner, that the EPF & MP Act, 1952 is a beneficial legislation enacted as a measure of social justice and should be construed liberally so as to confer benefit on the employees to the maximum extent and finally as per the guidelines laid down by The Hon’ble Supreme Court in The Regional Provident Fund Commissioner, Punjab v Shibu Metal Works 1964-65 (27) FJR 491, in construing the material provisions of the Act, if two views are reasonable possible, the Courts should prefer the view which helps the achievement and furtherance of the object, which is also clearly defined in Balbir Kaur and another v Steel Authority of India Ltd. and other; T.K. Meenakshi (Smt.) and another v Steel Authority of India ltd. and Others as 

“to ensure better future of the employee concerned on his retirement and for the benefit of the dependants in case of his earlier death”. 

Moreover, in the matter of State Vs. Girdhari lal Bajaj, 1962 II LLJ 46 (Bom.DB), the Hon’ble Court observed that when there is doubt about their meaning, it is to be understood in the sense in which it best harmonizes with the subject of the enactment and the object which the legislature has in view. Being so it is observed that some of the employers are in the habit of splitting the wages into various allowances with the predominant view of avoiding the PF contributions thereby jeopardizing the intent of Social security to their employees. 

In fact there were instances where the employer is showing only 10% as basic wages while major portion would be shown as Special Allowance, or Other Allowance or Conveyance or Over Time Allowance or HRA etc. 
In case an employee earns a Gross Wage of say `6,000/- , then as per the salary structure followed by a particular establishment, around `2,700/- is shown as Basic, `2,400/- is shown as House Rent Allowance, `800/- is shown as Conveyance while the balance is paid as Special Allowance. The contributions were being paid by this establishment only on this `2,700/- being shown as basic.

In case the above employee expires the pension to the family would be paid based on the last drawn pay. In this case, the pension would only be calculated based on `2,700/- being the last drawn salary for which the contributions have been calculated. As per Table ‘C’ of the Employees’ Pension Scheme, 1995 the equivalent widow pension for the last drawn salary of `2,700/- is `1,163/-.

However, as per Section 2(b) the Basic wages in respect of this employee need to be construed as `3,600/-, duly excluding the House Rent Allowance as the same has been specifically excluded in the above definition. The equivalent widow pension for the basic of `3,600/- would be `1,521/-. This difference in pension would have a cascading effect in the Children Pension (being paid for 2 children at a time upto their age of 25 years in turn) and subsequently during the interim reliefs declared by the Government of India based on the actuarial valuation carried out.

Therefore, the practice of this establishment contributing on their own basic (other than the one stipulated under Section 2(b)) would actually lower the employees’ due benefits as explained above, and is not in the spirit of the EPF & MP Act, 1952 and the Schemes framed there under. 

Accordingly, the basic wages shown in the pay structure of the establishment need to be in tune with the definition provided under Sec 2(b). EPF & MP Act,1952 being a self-application Act the above provisions apply to the covered establishments on its own


Kindly Visit - http://www.epfochennai.tn.nic.in/pdf/RO_basicwages.pdf


Splitting of Minimum Wages & Basic Wages under Employees Provident Fund and Miscellaneous Provisions Act 1952

Almost everyday I've to come across this question that what are the components that attract PF contributions or what is Basic Wages under section 2(b) of EPF&MP Act, is there is any relation between wages defined Section 2(h) of Minimum Wages Act and so on like this.
These questions are hot potato in the industry whenever statutes discussion take place for Social Security of Labour.

On 23 May 2011, a vide circular by Additional Central Provident Fund Commissioner, Employees' Provident Fund Organization, Bhikaji Cama Palace (Addl. CPFC) to all Additional Central Provident Fund Commissioner, Regional Central Provident Fund Commissioner, Assistant Central Provident Fund Commissioner to adhere the directions of the aforesaid circular that "Splitting of Minimum Wages for the purpose of PF Contribution not permissible." This inter-department clarification has been issued in view of the lack of a uniform approach followed by the PF authorities in different states, seems to be an attempt by the labour department to settle the ongoing ambiguity with respect to the calculation of provident fund contributions.

Notification is scripted bellow :-

EMPLOYEES’ PROVIDENT FUND ORGANISATION,
(Ministry of Labour & Employment, Govt. of India),
Head Office, Bhavrshya Yidhr Bhawan, 14,
Bhikaiji Cama Place.
New Delhi 110 066.



No.: Coord/4(6)2003/Clarification/Vol-II/7394

Dated: 23-05-2011

Sub: Splitting of Minimum Wages for the purpose of PF contribution not permissible.

Sir,

Attention of all concerned is invited towards    this office circular no. Coord./4(6)2003/Clarification/13633 dated 06.06.2008 vide which it was advised to ensure that P.F. Contributions on at least Minimum Wages are remitted by the establishments. It was also directed to review all such cases disposed of u/s 7A of the Act where determination of dues has taken place on wages lesser than Minimum Wages.

2. However, it has been observed that still uniform approach in this regard is not followed by all the field offices which is viewed seriously. It is also observed that the field offices are not duly defending the issue in spite of the fact that the Division Bench of Hon’ble High Court, Karnataka in the matter of Group 4 Securities Guarding Ltd Vs. RPFC has categorically upheld the view that RPFCs u/s 7A of the Act can examine and look into the nature of contract entered between the employer and its employees as well as the pay structure to decide whether the pay is being split up under several heads as a subterfuge to avoid PF Contribution.

3. The order of the Division Bench was challenged by the establishment before the Apex Court. While tentatively upholding the order of the Division Bench, the Hon’ble Supreme Court in its order dated 23.07.2004 again granted liberty to the authorities to decide the matter in accordance with law on its merits. As such the authorities have to consider the order of the Division Bench of Hon’ble High Court, Karnataka unless there is substantial evidence to lead otherwise.

4. Accordingly, the matter has been examined in view of the Apex Court’s direction and the following guidelines are issued which should be adhered to and followed by all strictly.

5. The EPF & MP Act, 1952 is a beneficial social security legislation. In construing the provisions of the Act, it has already been settled earlier* that where ever two views are reasonably possible, the view which helps the achievement of the object should be preferred and accordingly the assessing authority while determining dues under Section 7A should curb any attempt to curtail the legitimate social security benefits of the employees. It is needless to reiterate the impact of contribution on lesser wages by splitting the wages into different heads, which results in lesser accumulations in PF account and miniscule pension to the member/family.
[*The RPFC, Punjab Vs Shibu Metal Works — 1965 (1) LU.473].

6. As you are aware, section 2(b) of EPF & MP Act, 1952 defines the basic wage which excludes all kind of allowances from being considered as basic wage. As the term suggests, ‘basic wage’ or ‘basic salary’ is the base salary which is provided to a person in lieu of his services. It is without any allowances which may or may not be added to basic wages in terms of employment.

7. However, it appears that some confusion is prevailing among field offices as to whether basic wages can be lower than the minimum wages or whether an establishment paying minimum wages to its employees can be allowed to split up the wages into various allowances reducing the PF contribution by making it a part of " terms of employment or Contract” .

8. It would be worth to see that the terms ‘basic’, ‘basic wage’and ‘minimum wage’ are defined in Oxford Dictionary as below:
(i).          “basic. Adj.1. forming an essential foundation; fundamental. 2. consisting of the minimum required or offered”
(ii).          “basic wage . n. 1 a minimum wage earned before additional payments such as overtime. 2. Austral/NZ/ the minimum living wage, as determined by industrial tribunal”
(iii).                “minimum wage, n. the lowest wage permitted by law or by agreement.”

9. Thus, whereas the minimum wage is the lowest permitted wage ought to be paid to a worker as per law as upheld and revisited on various occasions by the Hon`ble Supreme Court *, basic wage is only relevant for allowing additional allowances by treating it (basic wage) as a basic/floor level.
(*Crown Aluminum Works Vs Workers Union, [1958 Vola LU, Page I], Unichoyi Vs State of Kerala [1961 Voll LL.3 P. 631], Kaman’ Metals & Alloys Ltd. Vs. Their Work Men [1967 Vil.11- 55; (1967) 2 SCR Page 463]).

10. Another aspect of basic wage/salary is that it is provided to all classes of employees irrespective of quantum of their salary and its quantum varies with every class/post of an employee where as minimum wage is prescribed only for the lowest paid employee to whom any lesser payment of wages is not permitted by law.
11. From above, it is abundantly clear that basic wage in no case can be lesser than the minimum wage as the same is not only contrary to law of land but is also beyond logic and rationale that an establishment which can not pay even minimum wages to its employees, would be willing to pay allowances to them and if such instances exist, there is certainly a malafide motive which may be considered as knowingly making or causing to make false statement/representation punishable u/s 14(1) of EPF & MP Act, 1952. It may also attract the provision of section 418 of IPC.

12. Further, it also needs to be kept in mind that any agreement which negates any law of land is ab-initio-void and would have effect of non-existence. Therefore, any such terms of agreement for employment where minimum wages is splitted to reduce the liability under EPF & MP Act, 1952 would be governed by the same logic as it is against the provisions of Minimum Wages Act and hence illegal.

13. Also Minimum Wage being a state matter, clarifications were sought from various state Governments. The replies received reveal that minimum wage is a lump sum composite amount arrived at by following the permissible procedure of fixation as revised from time to time and it can not be segregated and reclassified. Thus the State governments have also observed that splitting of minimum wages is not permissible in the eye of law,

14. Accordingly, all concerned are directed to ensure that P.F. Contributions are not remitted on wages less than Minimum Wages since every employer is legally bound to pay at least minimum wages to his/her employees and minimum wages are not amenable to split up. It is one pay package.*
(*Civil Appeal 4259 of 1999 Air Freight Ltd. Vs State of Karnataka and Ors., 1999 Supp. (1) SCR 22]

15. It is needless to mention that wherever the matter regarding splitting of wages is challenged or pending in a court of law, the stand of department along with all rules and guidelines of Hon’ble Supreme Court should be effectively utilized to defend the case. It is also mentioned that nothing said above shall come in way of implementation/execution of any order of a court of law.

16. The assessing officers shall examine full facts about the wage structure, minimum wages prescribed by the appropriate govt. for the relevant class and provide reasonable opportunity to the establishment before deciding the subterfuge, if any.
All the concerned officials/officers are requested to strictly comply with above said guidelines in regard to subject matter.
Please acknowledge receipt.
(This issues with the approval of CPFC)
(K.C. Pandey)
Addl. Central P.F. Commissioner(Compliance)
Copy to:
  1. FA & CAO/ CVO
  2. All Add I. CPFC5, Head Office
  3. Director, NATRSS
  4. All RPFC-I ,Head Office
  5. All RPFC II, HO
  6. All DD (Vig.)/DD ( Audit)
  7. All RPFCs (ZTIs)
  8. Web Administrator for uploading the circular on the central website of EPFO.
  9. DD (OL.), Head Office – for release of Hindi Version
(Anita S. Dixit)
Regional P.F. Commissioner-I(Coordination)

Commentary

The EPF Act, being a standalone law, does not prescribe that the basic wages should be equal to the minimum wages. Moreover, if that was indeed the intention of the legislature, instead of providing a separate definition of basic wages under the EPF Act, it would have cross referred to the definition of wages under the MWA, since the EPF Act was enacted much after enactment of the MWA.
Whether the provident fund contributions under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952, (hereinafter referred as the ‘Act , 1952’ ), are liable to be remitted to the Fund on not less than the minimum wages, prescribed under the Minimum Wages Act, 1948, (hereinafter referred as the Act of 1948)?









Karnataka Private Medical Establishments Act, 2007

KARNATAKA ACT NO 21 OF 2007
(First Published in the Karnataka Gazette Extra-ordinary on the sixteenth day of August, 2007)
THE KARNATAKA PRIVATE MEDICAL ESTABLISHMENTS ACT, 2007
(Received the assent of the Governor on the thirteenth day of August, 2007)
(As amended by Karnataka Act 33 of 2010, 37 of 2012 and 01 of 2018)



An Act to provide for the Promotion and Monitoring of Private Medical Establishments in the State of Karnataka and matters connected therewith or incidental thereto.
Whereas it is expedient in the public interest to promote quality health care and monitor by law the running of Private Medical Establishments in the State by stipulating minimum standards for quality of service in keeping with the principles of medical ethics; Be it enacted by the Karnataka State Legislature in the Fifty Eighth year of the Republic of India, as follows:-

1. Short title and commencement.- 
(1) This Act may be called the Karnataka Private Medical Establishments Act, 2007.
(2) It shall come into force on such date as the State Government may, by notification, appoint and different dates may be appointed for different provisions of the Act.

2. Definitions.- In this Act, unless the context otherwise requires,-
(a) ‘Appellate Authority’ means the Appellate Authority referred to in section 16;
(b) ‘Appointed day’ means the date appointed under sub-section (2) of section 1;
(c) ‘Clinical Laboratory’ means an establishment where,- 
(i) biological (pathological), bacteriological, radiological, microscopic, chemical or other tests, examinations or analysis; or 
(ii) the preparation of cultures, vaccines, serums or other biological or bacteriological products in connection with the diagnosis or treatment of diseases, are or is usually carried out; 

(d) “Clinical record” means any paper, film print out, slide, solution or medium which can be deciphered or used to indicate and diagnose condition of the human body or a part of it or any material taken out of it and the course of treatment administered to, or undergone by, the person;

(e) "Department" means the Department of Health and Family Welfare or the Department of Indian Systems of Medicine and Homeopathy, Government of Karnataka, as the case may be;

(f) “Family member” means husband or wife or any son, daughter or any other legal heir or legal guardian irrespective of their age; 2[(f-1) “Grievance” means any complaint in respect of noncompliance to the Patient’s Charter or Private Medical Establishment's Charter;]2 

(g) “Hygienic” means a condition congenial for good health; 

3[(h)"Inspection Committee" means the Inspection Committee constituted under section 7;]3 (i) “Manager” in relation to a Private Medical Establishment means the person, by whatever name or designation called, who is in charge of, or is entrusted with, the management or running of the Private Medical Establishment; 

(j) “Maternity Home” means an Establishment where women are usually received or accommodated or both, for the purpose of confinement and antenatal or post-natal care in connection with child-birth and includes an establishment where women are received or accommodated for the purpose of sterilization or medical termination of pregnancy; 

(k) ‘Medical Practitioner’ means a medical practitioner registered under the Homeopathic Practitioners Act, 1961 (Karnataka Act 35 of 1961), Ayurvedic, Naturopathy, Sidda, Unani or Yoga Practitioners Registration and Medical Practitioners Miscellaneous Provisions Act, 1961 (Karnataka Act 9 of 1962), Medical Registration Act, 1961 (Karnataka Act 34 of 1961), Indian Medicine Central Council Act, 1970 (Central Act 48 of 1970), Homeopathy Central Council Act, 1978 (Central Act 59 of 1973) and Medical Council Act, 1956 (Central Act 102 of 1956) to practice the system of medicine which he has studied, qualified and registered and includes a Dentist registered under the Dentists Act, 1948 (Central Act 16 of 1948);

(l) “Medical treatment” means systematic diagnosis and treatment for prevention or cure of any disease, or to improve the condition of health of any person through allopathic or any other recognised systems of medicine such as Ayurveda, Unani, Homeopathy, Yoga, 1[Integrated medicine,]1 Naturopathy and Siddha; and includes Acupuncture and Acupressure treatments 2[and any other manner of treatment as may be prescribed;]2 

(m) “Nursing Home” means an establishment where persons suffering from illness, injury or infirmity (whether of body or mind) are usually received or accommodated or both for the purpose of treatment of diseases or infirmity or for improvement of health or for the purposes of relaxation or for any other purpose whatsoever, whether or not analogous to the purposes mentioned in clause (l) of this section;

2[(m1) Patient’s Charter and Private Medical Establishment's Charter" means the rights and responsibilities of the patient and the Private Medical Establishments specified in the schedule; (m2) “prescribed” means prescribed by rules made by the State Government under this Act;]2

(n) “Private Medical Establishment” means a hospital or dispensary with beds or without beds, a Nursing Home, Clinical Laboratory, Diagnostic Centre, Maternity Home, Blood Bank, Radiological Centre, Scanning Centre, Physiotherapy Centre, Clinic, Polyclinic, 2[Dental Clinic or Dental Polyclinic]2 Consultation Centre and such other establishments by whatever name called where investigation, diagnosis and preventive or curative or rehabilitative medical treatment facilities are provided to the public and includes Voluntary or Private Establishments 2[as may be notified by the State Government by notification]2 but does not include Medical Establishments run or maintained or sponsored by,- 
(i) the State Government or a Local Authority or other Statutory body;
(ii) the Public Sector undertakings owned or controlled by the State or Central Government;
(iii) autonomous institutions owned or controlled by the State or Central Government;
(iv) a Co-operative Society registered under the Karnataka Co-operative Societies Act, 1959 in which more than fifty per cent of shares are held by the State or Central Government or both;
(v) a Society registered under the Karnataka Societies Registration Act, 1960 and which is owned or controlled by the State or Central Government;
(vi) a trust owned or managed by the State or Central Government or any Local Authority.

(o) “Physiotherapy establishment” includes an establishment where massaging, hydro-therapy, remedial gymnastics or similar work is usually carried on, for the purpose of treatment of diseases or infirmity or for improvement of health or for the purposes of relaxation or for any other purpose whatsoever, whether or not analogous to the purposes mentioned in clause (l) of this section;

(p) “Public Authority” means an Authority established by or under any law. 
(q) “Registration” means registration granted under section 7; 

(r) 3[Registration and Grievance Redressal Authority]3 means the 3[Registration and Grievance Redressal Authority]3 referred to in section 4. 2[(s)"schedule" means schedule appended to this Act.]2

1. Inserted by Act 33 of 2010 w.e.f. 27.07.2010. 
2. Inserted by Act 01 of 2018 w.e.f 
3. Substituted by Act 01 of 2018 w.e.f

3. Registration of Private Medical Establishments.- On and after the appointed day, no Private Medical Establishment shall be established, run or maintained in the State except under and in accordance with the terms and conditions of registration granted under this Act: 

Provided that a Private Medical Establishment in existence immediately prior to the appointed day shall apply for such registration 2[1[within six months from the date of commencement of the Karnataka Private Medical Establishments (Amendment) Act, 2012]1]2 and pending orders thereon may continue to run or maintain till the disposal of the application. 3[and shall comply with the provisions of this Act]3


1. Substituted by Act 33 of 2010 w.e.f. 27.07.2010.
2. Substituted by Act 37 of 2012 w.e.f. 03.09.2012. 
3. Inserted by Act 01 of 2018 w.e.f


1[4. Registration and Grievance Redressal Authority.- There shall be a Registration and Grievance Redressal Authority in each district consisting of the following members nominated in such manner with such qualification as may be prescribed, namely:-

(a) The Deputy Commissioner of the District -  Chairman 
(b) District Health and Family Welfare Officer -  Member Secretary 
(c) District AYUSH Officer - Member 
(d) One member each from Indian Medical Association and one more association -  Members 
(e) One woman representative when the Authority is dealing with a grievance redressal - Member 

5. Application for Registration.- (1) Every person desiring to establish, run, maintain or continue to run and maintain a Private Medical Establishment shall make an application to the concerned 1[Registration and Grievance Redressal Authority]1 in such form, in such manner and along with such fees as may be prescribed and different amount of fees may be prescribed, for different class or classes of Private Medical Establishments.

6. Pre-requisites for Registration of Private Medical Establishments.- The 1[Registration and Grievance Redressal Authority]1 shall before granting the registration consider whether the following prerequisites for registration of a Private Medical Establishment are satisfied, namely:- 
(i) that the premises housing the Private Medical Establishment is located in hygienic surroundings and otherwise suitable for the purpose for which it is established or sought to be established;
(ii) that the Private Medical Establishment is adequately staffed with qualified doctors, qualified and trained para medical personnel;
(iii)that the Private Medical Establishment has the necessary buildings with adequate space for performing its various functions, equipments and other infrastructure facilities;
(iv) that the Private Medical Establishment conforms to the standards referred to in section 9;
(v) such other factors as may be prescribed. 2[Provided that no new Private Clinical Laboratory shall be permitted within a radius of 200 meters from the Government Hospital or from the Hospital promoted or managed by a society or trust or autonomous organization owned or controlled by the State Government or Central Government or Local Bodies with effect from the date of commencement of the Karnataka Private Medical Establishments (Amendment) Act, 2017.]2

1. Substituted by Act 01 of 2018 w.e.f..
2. Inserted by Act 01 of 2018 w.e.f.

7. Disposal of applications.- 1[(1) On receipt of an application under section 5 the Registration and Grievance Redressal Authority may having regard to the provisions of section 6 and after such enquiry as may be necessary, by an Inspection Committee, either grant registration subject to the conditions as may be prescribed or reject the application within ninety days from the date of receipt of the complete application in all respects: Provided further that in case of any delay beyond ninety days the registration shall be deemed to have been granted.]1 
(2) Every order passed under sub-section (1) shall be communicated to the applicant forthwith.
(3) Every registration granted under sub-section (1) shall be valid for a period of five years and may be renewed once in five years on an application made in such form, in such manner and on payment of such fees, as may be prescribed. 
2[(4) For purpose of sub-section (1), the Registration and Grievance Redressal Authority may constitute the Inspection Committee consisting of such members as may be prescribed. 
(5) On receipt of application for renewal of registration, the Registration and Grievance Redressal Authority may having regard to the provisions of section 6 and after such enquiry as may be necessary by the Inspection Committee constituted under subsection 
(4) either grant renewal subject to the condition as may be prescribed or reject the application within ninety days from the date of receipt of the complete application in all respect; in case of any delay beyond ninety days the renewal shall be deemed to have been granted.
(6) The Registration and Grievance Redressal Authority shall not reject the application for registration or renewal without giving an opportunity of being heard to the applicant and without recording the reasons for such rejection.
(7)The Registration and Grievance Redressal Authority, on its own or based on any written complaint, may cause inspection or direct the Inspection Committee constituted under sub-section (4) to inspect, at a reasonable time, any private medical establishment, to satisfy itself that the conditions of registration are being duly observed and complied with.
(8) In case the Registration and Grievance Redressal Authority finds that the private medical establishment is not being run in accordance with the conditions of registration, the Authority shall direct the establishment to remedy the same within the reasonable time as may be specified in the order.]2

1. Substituted by Act 01 of 2018 w.e.f..
2. Inserted by Act 01 of 2018 w.e.f..

1[8. Functions of the Registration and Grievance Redressal Authority.- (1) The Registration and Grievance Redressal Authority on receiving a complaint regarding non-compliance to the Patient’s Charter or Private Medical Establishment's Charter shall enquire into the complaint: Provided that the complaints pertaining to negligence, nonadherence to standard protocols for treatments, procedures and prescription audit shall be referred to the Karnataka Medical Council for enquiry and report within sixty days to the Authority. 
(2) The Registration and Grievance Redressal Authority shall, while investigating or enquiring any matter under this section, have the powers of a civil court trying a suit under the Code of Civil procedure 1908, and in particular in respect of the following matters, namely:- 
(i) summoning and enforcing the attendance of any person and examining him on oath;
(ii) discovery and production of any documents and witness; 
(iii) receiving any evidence on affidavits;
(iv) requisitioning for any public record or copy thereof from any court or office; and
(v) any other matter which may be prescribed. 

(3) The Registration and Grievance Redressal Authority shall, to remedy the Grievance, hear the aggrieved person and the other party and shall dispose of the complaint by a summary trial within ninety days from the date of complaint.]1

1. Substituted by Act 01 of 2018 w.e.f. 


9. Standards.- 

(1) Every Private Medical Establishment shall conform to the standards 1[of staffing pattern and infrastructure, etc.,]1 laid down in this Act or the rules made there under or any other law for the time being in force concerning the staff and their qualifications, operation theatre, buildings, space requirements, equipment, facilities to be provided to the patients and their attendants, maintenance and other matters. 
(2) Different standards may be set for different class or classes of Private Medical Establishments, in respect of different areas, as determined by the State Government. Expert Committees may be constituted by the State Government for suggesting the standards for different class or classes of Private Medical Establishment for different areas from time to time. The composition, powers and responsibilities, of the Expert Committees and the terms and conditions of service of members of the Expert Committee shall be as may be prescribed. 

1[Provided that the number of representatives of private medical establishments shall not exceed one-thirds of the total members.]1 

1. Inserted by Act 01 of 2018 w.e.f

1[9A. Functions of the Experts Committees and other Committees.-

(1) The Expert Committee constituted under section 9 shall also discharge the following functions, namely:-
(a) study and recommend classification of the Private Medical Establishments on objective basis for the purpose of clause (b);
(b) recommend minimum standards of infrastructure, staffing pattern and staff qualification;
(c) recommend standard protocols for treatments and procedures, and prescription audit;
(d) make recommendations for fixation of uniform package rates for each procedure and treatment covered under any of the health care assurance scheme of the Government for private medical establishments; and
(e) any other functions as may be prescribed by the State Government.

(2) The State Government, on the recommendation of the Expert Committee, and after previous publication, calling for objections from the persons likely to be affected and considering the same shall fix and notify the following, namely:-
(a) classification of Private Medical Establishments;
(b) minimum standards of infrastructure, staffing pattern and qualification of staff;
(c) standard protocols for treatments, procedures and prescription audit; and
(d) uniform package rates for each procedure and treatment covered under any of the health care assurance scheme of the Government for private medical establishments.

(3) Other ad-hoc Committees.-
(a) The State Government may also constitute such number of ad-hoc committees with such number of members as may be prescribed;
(b) The ad-hoc committee shall perform such work as may be prescribed and shall submit its report to the State Government for its consideration;
(4) The Expert Committee constituted under section 9 or the ad-hoc committee constituted in this sub-section shall follow such procedure, as may be, prescribed in discharge of its functions; and
(5) The non-official Members of the Expert or ad-hoc Committee shall be eligible for Travelling Allowance and Daily 11 Allowance or any other allowances, as may be, prescribed by the State Government.]1
1. Inserted by Act 01 of 2018 w.e.f.

1[10. Schedule of charges and establishment details to be notified.- 

(1) Every Private Medical Establishment for the information of patients and general public shall notify and make available the schedule of charges for consultation fee, investigations, medical treatments, procedures, hospital charges and other services, and establishment details, as may be prescribed, in each of the manners specified below:- 
(i) display schedule of charges and establishment details in the prescribed manner on a public website to be provided by the Government;
(ii) display schedule of charges and establishment details in the prescribed manner on its own website, if any; 
(iii) display consultation fee, rates of major and largely used investigations, procedures, treatments and other services, and hospital charges on the notice board of the establishment at a conspicuous place at the reception; and 
(iv) schedule of charges in form of booklets or brochures, which is readily available to patients and public at the establishment at all times: Provided that in the event of any discrepancy in the schedule of charges notified as per the above detailed manners, the least amount shall be considered to be effective. 

(2) For the services provided, the Private Medical Establishment shall collect from the patient or his relative or attendant an amount not more than the charges notified as per subsection (1), after providing an itemized bill. 

(3) For the services provided to a patient belonging to eligible household under the National Food Security Act, 2013 (Central Act 20 of 2013) and referred under any of the health assurance schemes of the Government, no charges shall be collected from the patient.

(4) For the services provided to a patient not belonging to eligible household under the National Food Security Act, 2013 (Central Act 20 of 2013) but referred under any of the health assurance schemes of the Government, the charges over and above the amount reimbursable from the Government as per the scheme norms shall be collected subject to the rates notified under subsection (1), after providing an itemized bill.

(5) In case of any investigation or treatment or procedure being necessary over and above the standard protocol prescribed under clause (c) of sub-section (2) of section 9A for any patient covered under sub-section (2) or (3) or (4), the concerned private medical establishment can undertake the same after explaining the need to the patient or his representative and obtaining his consent, and charge additional amount, subject to the rates notified as under sub-section (1) after providing an itemized bill.

(6) Every Private Medical Establishment shall provide proper estimates for treatments and charges to the patient or attendant of the patient during initiation or due course of treatment and final bill shall not exceed the estimates.]1

1. Substituted by Act 01 of 2018 w.e.f

11. Obligations of Private Medical Establishments.- Every Private Medical Establishment shall:- (i) administer necessary first aid and take other life saving or stabilising emergency measures in all medico-legal or potentially medico-legal cases such as victims of road accidents, accidental or induced burns or poisoning or criminal assaults and the like which present themselves or are brought before it at the establishment; 2[in the event of such emergencies, without insisting on advance payment]2

(ii) actively participate in the implementation of all national and State health programmes in such manner as the State Government may specify from time to time; and furnish periodical reports thereon to the concerned authorities;

(iii) perform statutory duties in respect of communicable diseases to prevent the spread of the disease to other persons and report the same to the concerned public health authorities immediately;
(iv) furnish to the 1[Registration and Grievance Redressal Authority]1 such particulars in respect of such noncommunicable diseases as may be notified by the State Government from time to time.
2[(v) display the Patient’s Charter and Private Medical Establishment's Charter in such place easily visible to the public;
(vi) handover in the event of the death of a patient, the body of the deceased immediately, without insisting on prior payment of the dues: Provided that in case the patient was admitted under any of the health care assurance schemes the private medical establishment shall claim the amount as per the scheme norms from the Government in accordance with clause (d) of sub-section (2) of section 9A. Provided further that the due amount in accordance with sub-section (2) of section 10 or balance due amount in accordance with sub-section (4) or (5) of section 10 may be recovered from representatives of the deceased in due course as per law.
(vii) provide the Grievance Redressal Mechanism at Private Medical Establishment Level in such manner as may be prescribed.]2

1. Substituted by Act 01 of 2018 w.e.f

2. Inserted by Act 01 of 2018 w.e.f. 

1[11A. Patient’s Charter and Private Medical Establishment's Charter.- (1) Every patient or authorized family member and Private Medical Establishment shall have the rights and duties specified in the Patient’s and Private Medical Establishment's Charter as contained in the Schedule to the Act. (2) Every patient or authorized family member and Private Medical Establishment shall have right to make complaint to the Registration and Grievance Redressal Authority in respect of violation of any of the provisions of sub-section (1) or rules made under the Act in such manner as may be prescribed.]1

1. Inserted by Act 01 of 2018 w.e.f. 

1[11B. Power of State Government to amend the schedule.-
(1) The State Government may, by notification, add, amend or omit any of the entries in the Schedule.
(2) Every notification issued by the State Government under this section shall be laid before both houses of the State Legislature.]1
1. Inserted by Act 01 of 2018 w.e.f 

12. Maintenance of clinical records.-

(1) Every Private Medical Establishment shall maintain clinical records of its activities relating to the patients under its care in the prescribed manner.

(2) Every clinical record shall be open to inspection, in due discharge of his duties, by the District Surgeon or any other officer specifically empowered in this behalf by the State Government.
(3) Every person or his family member shall be entitled to obtain a copy of the clinical record pertaining to himself on payment of appropriate charges. 1[Provided that no such information shall be disclosed to any other person.]1 

1. Inserted by Act 01 of 2018 w.e.f 

13. Procedure for obtaining information.-
(1) Every Private Medical Establishment shall, as soon as possible, after the purpose for which the person had visited or had been admitted is over, make available to the person or his family member a copy of the gist of observation, treatment, test, investigation, advice and diagnostic opinion pertaining to the person. 
(2) A public authority, in due discharge of its duties or the person himself or any other person specifically authorised by the person to this effect, or any family member of the person in case there is no authorization because the person concerned is a minor or is deceased or incapacitated (permanently or temporarily) may request for copy of clinical records on payment of necessary charges to the private medical establishment and on such charges being paid, the private medical establishment shall, within a period of seven days, make available such copy. 
(3) Every Private Medical Establishment shall display, at a prominent place, the charges for obtaining such information.

14. Restrictions on furnishing of information.- 
The Manager of the Private Medical Establishment may, for reasons to be recorded in writing, refuse to furnish the information, pertaining to the clinical records if he is satisfied that,- 
(a) the treatment or test or assessment has been conducted on the direction of a public authority and it has the first right to receive the information.
(b) the report if made available to the person, is likely to cause injury to the person or his family members.
15. 1[Penalty or suspension]1 or cancellation of registration.

2[(1) In case of any private medical establishment failing to comply with any of the directions given by the Registration and Grievance Redressal Authority under sub-section (8) of section 7, the Authority may impose a penalty not exceeding fifty thousand rupees and extend the time for compliance or proceed to cancel the registration of the establishment, after giving the establishment an opportunity of being heard.

(2) In case of a complaint from a patient regarding overcharging the Registration and Grievance Redressal Authority after holding enquiry under sub-section (3) of section 8 finds that the Private Medical Establishment has violated the provisions of subsection (2), (4) or (5) of section 10 the Registration and Grievance Redressal Authority shall impose a penalty equivalent to one and half times of the overcharged amount, after giving the establishment an opportunity of being heard. Out of the penalty amount an amount equal to the over-charged amount shall be paid to the patient and the balance shall be deposited with the Arogya Raksha Samithi of the district for taking up public health activities: Provided that in case of such over-charging by a particular private establishment the Registration and Grievance Redressal Authority after holding such enquiry under sub-section (3) of section 8 finds that the Private Medical Establishments has violated the provisions of section 10 for the third time within a calendar year, the Registration and Grievance Redressal Authority shall make a written complaint to the concerned Court for taking up cognizance of the offence and subsequent prosecution. On conviction, the concerned private medical establishment shall be liable for a penalty which may be extend to three-times of the amount over charged or rupees one lakh, whichever is higher. 

(3) In case of a complaint from a patient regarding any matter in the Patient’s Charter or Private Establishments Charter, other than the over-charging the Registration and Grievance Redressal Authority having found that the Private Medical Establishments has violated the provisions of section 11A shall impose a penalty of rupees ten thousand for the first non-compliance and rupees twenty five thousand for the second non-compliance during a calendar year on the concerned private medical establishment, after giving the establishment an opportunity of being heard. Fifty percent of the penalty amount shall be paid to the patient and the balance fifty percent shall be deposited with the Arogya Rakshana Samithi of the district for taking up public health activities:

Provided that in case of such complaint against a particular private establishment for the third time within a calendar year, the Registration and Grievance Redressal Authority shall make a written complaint to the concerned Court for taking up cognizance of the offence and subsequent prosecution. On conviction, the concerned private medical establishment be liable for a penalty which may be extend to fifty thousand rupees.]2 

3[(5)]3The 1[Registration and Grievance Redressal Authority]1 , on the basis of a complaint or otherwise if a prima facie case exists about the contravention of any provisions of this Act or the rules made there under or conditions of registration may, by order in writing and for the reason to be recorded in writing suspend or cancel the registration of a Private Medical Establishment: Provided that no such order shall be made except after giving a reasonable opportunity of being heard, to the Private Medical Establishment. 2[and also ensure that arrangements are made within reasonable time for uninterrupted health care to the inpatients.]2 

3[(6)]3 Every order made under sub-section (1) shall contain a direction that the inpatients of the Private Medical Establishment shall be transferred to such other Private Medical Establishment as may be specified in that order and it shall also contain such provisions as to the care and custody of such inpatients pending such transfer. 

3[(7)]3 Every order made under sub-section (1) shall take effect,- 
(a) where no appeal has been preferred against such order under section 17, immediately on the expiry of the period specified for such appeal; and 
(b) where such appeal has been preferred and the same has been dismissed, from the date of order of such dismissal. 
1. Substituted by Act 01 of 2018 w.e.f. 
2. Inserted by Act 01 of 2018 w.e.f 
3. renumbered by Act 01 of 2018 w.e.f

16. Appellate Authority.- 1[There shall be an Appellate Authority over the Registration and Grievance Redressel Authority]1 consisting of the following members, namely:- 
(a) the Commissioner for Health and Family Welfare, KarnatakaChairman 
(b) the Director of Health Services, Karnataka - Member 1
[(c) The Director of AYUSH (Ayurveda, Unani, Siddha, Homeopathy, Nature cure and Yoga): Member
(d) One Clinician with Post Graduation in General Medicine nominated by the State Government: - Member 
(e) Director of Medical Education: - Member.]1

Note: The Director of Health Services, Karnataka shall be a member in respect of appeals preferred by a Private Medical Establishment treating patients through allopathic system of medicine and the Director Indian System of Medicine and Homeopathy shall be a member in respect of appeals preferred by other Private Medical Establishments treating patients through Ayurveda, Unani, Homeopathy, Yoga, Naturopathy or Siddha system of medicine. 

1. Substituted by Act 01 of 2018 w.e.f.

17. Appeal: 
(1) A Private Medical Establishment whose application for registration is rejected under section 7, or whose registration has been suspended or cancelled under section 15 or is otherwise aggrieved by any original order made under this Act except an order made under section 24 may prefer an appeal to the Appellate Authority in such manner and on payment of such fees as may be prescribed. 
(2) Every such appeal shall be preferred within thirty days from the date of receipt of the order appealed against; 
(3) The Appellate Authority may, after holding an enquiry pass such order as it deems fit as far as possible within a period of sixty days from the date of filling of the appeal. 18. Private Medical Establishments to report the names of government doctors on their establishments.- Every Private Medical Establishment shall report to the State Government and the 1[Registration and Grievance Redressal Authority]1, the names of government doctors and para medical staff, whose services are utilized in the Private Medical Establishment for consultations or any other basis whether on payment basis or not.

18. Private Medical Establishments to report the names of government doctors on their establishments.- Every Private Medical Establishment shall report to the State Government and the 1[Registration and Grievance Redressal Authority]1, the names of government doctors and para medical staff, whose services are utilized in the Private Medical Establishment for consultations or any other basis whether on payment basis or not. 

1. Substituted by Act 01 of 2018 w.e.f. 

19. Penalties.- 

(1) Where any person establishes, runs or maintains a Private Medical Establishment without registration granted under section 7 he shall, on conviction, be punished with imprisonment for a term which may extend to three years and with fine which may extend upto 1[one lakh]1 rupees. 
(2) When a person is convicted under sub-section (1), the 1[Registration and Grievance Redressal Authority]1 shall direct immediate closure of the un-registered Private Medical Establishment, except where a registration is cancelled or suspended and an appeal filed against such cancellation or suspension is pending.
(3) Every order made under sub-section (1) shall contain a direction that the inpatients of such unregistered Private Medical Establishment shall be transferred to such other Private Medical Establishment as may be specified in that order and it shall also contain such other provisions as to the care and custody of such inpatients pending such transfer. 17 (4) Where any person runs or maintains a Private Medical Establishment in contravention of the conditions of registration or contravenes the provisions of section 12 or 13, or fails to comply with the direction issued under sub-section (2). he shall, on conviction, be punished 2[XXX]2 1[with a fine which may extend to twenty five thousand rupees]1 and in the case of a second or subsequent offence 2[XXX]2 1[with a fine which may extend to fifty thousand rupees]1 
(5) Where a person contravenes any other provision of this Act or the rules made thereunder he shall, on conviction, be punishable with a fine which may extend to 1[one lakh rupees]1 
3[(6) Notwithstanding anything contained in this Act, whoever makes any false and frivolous or vexatious complaint under this Act shall be punishable by the Registration and Grievance Redressal Authority with a fine which may extend to ten thousand rupees.]3 
1. Substituted by Act 01 of 2018 w.e.f. 
2. Omitted by Act 01 of 2018 w.e.f. 
3. Inserted by Act 01 of 2018 w.e.f. 

1[19A. Cognizance of offence.- No court shall take cognizance of offence under this Act except on a written complaint by the Registration and Grievance Redressal Authority or any officer authorised in this behalf by the Registration and Grievance Redressal Authority: Provided that nothing in this section shall prevent the aggrieved person to approach the competent court after exhausting the remedies available under this Act and in case the Registration and Grievance Redressal Authority or the authorised officer fails to make written complaint within thirty days from the date of application to make a complaint.]1 1. Inserted by Act 01 of 2018 w.e.f. 1[19B. Jurisdiction of Magistrates.- No magistrate shall try an offence under this Act unless he is a Judicial magistrate of first class.]1
1. Inserted by Act 01 of 2018 w.e.f. 

20. Offences by a Company.- 
(1) Where an offence against any of the provisions of this Act or any rule made thereunder has been committed by a company, every person who, at the time the offence was committed, was incharge of, and was responsible to, the Company, for the conduct of business of the company, as well as the Company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 

Provided that nothing contained in this sub-section shall render any such person liable to any punishment, provided in this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence. 

(2) Notwithstanding anything contained in sub-section (1) where an offence under this Act has been committed by a company, and it is proved that the offence was committed with the consent or connivance of or is attributable to, any neglect on the part of the director, manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company, shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation:- For the purposes of this section,- 
(a) ‘’a company’’ means any body corporate and includes a trust firm, a society or other association of individuals; and 
(b) ‘’the director’’ in relation to:- (i) a firm means a partner in the firm; (ii) a society, a trust or other association of individuals means the person who is entrusted under the rules of the society, trust or other association, with management of the affairs of the society, trust or other association, as the case may be. 

21. Power of entry, inspection etc.- (1) Subject to such rules as may be prescribed, the State Government may, specially authorise any officer of the State Government (hereinafter in this section and section 22 referred to as authorised officer) to,- 
(a) enter, at all reasonable times, and with such assistants if any, being persons in the service of the State Government as he thinks fit, any place which is, or which he has reason to believe is being used as a Private Medical Establishment.
(b) Make such examination of the premises of a Private Medical Establishment and of any register, record, equipment, article or document found therein and seize any document or record as he may deem necessary for the purpose of examination, analysis or investigation and retain them as long as he thinks it necessary to do so for such purpose, provided the authorised officer after seizing documents and records shall intimate the reason for such seizure to the Manager of the Private Medical Establishment as early as is practicable.
(c) Make such enquiry and take on the spot or otherwise the statement of any person as he deems necessary:
 (d) Exercise such other powers as may be necessary; for carrying out the purposes of this Act.

Provided that no person shall be required under this subsection to answer any question or give any evidence tending to incriminate himself: 19 Provided further that, no residential accommodation (not being a Private Medical Establishment-cum-residence) shall be entered into and searched by the authorised officer except on the authority of a search warrant issued by a Magistrate having jurisdiction over the area and all searches and seizures under this section shall so far as may be, made in accordance with the provisions of the Code of Criminal Procedure , 1973 (Central Act 2 of 1974).

(2) The authorised officer shall make a report to the 1[Registration and Grievance Redressal Authority]1 regarding the result of the inspection, searches and seizure made by him under sub-section (1), and the 1[Registration and Grievance Redressal Authority]1 shall take necessary action on the said report under this Act.
 1. Substituted by Act 01 of 2018 w.e.f. 
22. Sealing premises of un-registered Private Medical Establishments.-

(1) Without prejudice to the provisions of section 19, if on a report made by the authorised officer under sub-section (1) of section 21 or otherwise the 1[Registration and Grievance Redressal Authority]1 has reason to believe that any Private Medical Establishment is run or maintained without registration under section 7, it may order immediate closure of such Private Medical Establishment and also seal the premises: Provided that no order under this sub-section shall be made without giving an opportunity of being heard to the person likely to be affected thereby.
(2) Every order made under sub-section (1) shall contain a direction that the inpatients of such un-registered Private Medical Establishment shall be transferred to such other Private Medical Establishment as may be specified in that order and it shall also contain such provisions as to the care and custody of such inpatients pending such transfer. 

1. Substituted by Act 01 of 2018 w.e.f. 

23. Powers of State Government to give directions to the 1[Registration and Grievance Redressal Authorities]1.- 
The State Government may give such directions to the 1[Registration and Grievance Redressal Authority]1 as are in its opinion necessary or expedient for carrying out the purposes of this Act. The State Government shall record the reasons necessitating issuance of the said directions and it shall be the duty of the 1[Registration and Grievance Redressal Authority]1 to comply with such directions. 

1. Substituted by Act 01 of 2018 w.e.f. 

24. Protection of action taken in good faith.- 

No suit, prosecution or other legal proceeding shall lie against the State Government or any officer, authority or person in respect of anything which is in good-faith done or intended to be done in pursuance of the provisions of this Act, or any rule or order made thereunder.

25. Removal of difficulties.- 

If any difficulty arises in giving effect to the provisions of this Act the State Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after expiry of a period of two years from the appointed day.

26. Power to make rules:- (1) The State Government may, by notification and after previous publication, make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing provisions such rules may provide for all or any of the following namely:- (a) the manner in which an application for registration shall be made and the fee which shall be accompanied under section 5; 
(b) such other factors for registration under section 6; 
(c) manner and payment of fees to be accompanied for renewal of registration;
(d) Standards to be maintained by every Private Medical Establishment under section 9;
(e) manner of maintaining clinical records under section 12; 
(f) the manner in which an appeal may be preferred and fees for such appeal under section 17; 
(g) the manner of taking custody of the premises under section 22;
(h) all matters expressly required or allowed by this Act to be prescribed or in respect of which this  Act makes no provision or makes insufficient provision and a provision is, in the opinion of the State Government, necessary for the proper implementation of the Act. 

18. Private Medical Establishments to report the names of government doctors on their establishments.- Every Private Medical Establishment shall report to the State Government and the 1[Registration and Grievance Redressal Authority]1, the names of government doctors and para medical staff, whose services are utilized in the Private Medical Establishment for consultations or any other basis whether on payment basis or not. 

1. Substituted by Act 01 of 2018 w.e.f. 

19. Penalties.-
(1) Where any person establishes, runs or maintains a Private Medical Establishment without registration granted under section 7 he shall, on conviction, be punished with imprisonment for a term which may extend to three years and with fine which may extend upto 1[one lakh]1 rupees.
(2) When a person is convicted under sub-section (1), the 1[Registration and Grievance Redressal Authority]1 shall direct immediate closure of the un-registered Private Medical Establishment, except where a registration is cancelled or suspended and an appeal filed against such cancellation or suspension is pending. 
(3) Every order made under sub-section (1) shall contain a direction that the inpatients of such unregistered Private Medical Establishment shall be transferred to such other Private Medical Establishment as may be specified in that order and it shall also contain such other provisions as to the care and custody of such inpatients pending such transfer. 

(4) Where any person runs or maintains a Private Medical Establishment in contravention of the conditions of registration or contravenes the provisions of section 12 or 13, or fails to comply with the direction issued under sub-section (2). he shall, on conviction, be punished 2[XXX]2 1[with a fine which may extend to twenty five thousand rupees]1 and in the case of a second or subsequent offence 2[XXX]2 1[with a fine which may extend to fifty thousand rupees]1 

(5) Where a person contravenes any other provision of this Act or the rules made thereunder he shall, on conviction, be punishable with a fine which may extend to 1[one lakh rupees]1 

3[(6) Notwithstanding anything contained in this Act, whoever makes any false and frivolous or vexatious complaint under this Act shall be punishable by the Registration and Grievance Redressal Authority with a fine which may extend to ten thousand rupees.]3 1. Substituted by Act 01 of 2018 w.e.f. 2. Omitted by Act 01 of 2018 w.e.f. 3. Inserted by Act 01 of 2018 w.e.f. 1[19A. Cognizance of offence.- No court shall take cognizance of offence under this Act except on a written complaint by the Registration and Grievance Redressal Authority or any officer authorised in this behalf by the Registration and Grievance Redressal Authority: Provided that nothing in this section shall prevent the aggrieved person to approach the competent court after exhausting the remedies available under this Act and in case the Registration and Grievance Redressal Authority or the authorised officer fails to make written complaint within thirty days from the date of application to make a complaint.]1 1. Inserted by Act 01 of 2018 w.e.f. 1[19B. Jurisdiction of Magistrates.- No magistrate shall try an offence under this Act unless he is a Judicial magistrate of first class.]1 

1. Inserted by Act 01 of 2018 w.e.f. 

20. Offences by a Company.- (1) Where an offence against any of the provisions of this Act or any rule made thereunder has been committed by a company, every person who, at the time the offence was committed, was incharge of, and was responsible to, the Company, for the conduct of business of the company, as well as the Company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: 18 Provided that nothing contained in this sub-section shall render any such person liable to any punishment, provided in this Act if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1) where an offence under this Act has been committed by a company, and it is proved that the offence was committed with the consent or connivance of or is attributable to, any neglect on the part of the director, manager, secretary or other officer of the company, such director, manager, secretary or other officer of the company, shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation:- For the purposes of this section,- (a) ‘’a company’’ means any body corporate and includes a trust firm, a society or other association of individuals; and (b) ‘’the director’’ in relation to:- (i) a firm means a partner in the firm; (ii) a society, a trust or other association of individuals means the person who is entrusted under the rules of the society, trust or other association, with management of the affairs of the society, trust or other association, as the case may be. 21. Power of entry, inspection etc.- (1) Subject to such rules as may be prescribed, the State Government may, specially authorise any officer of the State Government (hereinafter in this section and section 22 referred to as authorised officer) to,- (a) enter, at all reasonable times, and with such assistants if any, being persons in the service of the State Government as he thinks fit, any place which is, or which he has reason to believe is being used as a Private Medical Establishment. (b) Make such examination of the premises of a Private Medical Establishment and of any register, record, equipment, article or document found therein and seize any document or record as he may deem necessary for the purpose of examination, analysis or investigation and retain them as long as he thinks it necessary to do so for such purpose, provided the authorised officer after seizing documents and records shall intimate the reason for such seizure to the Manager of the Private Medical Establishment as early as is practicable. (c) Make such enquiry and take on the spot or otherwise the statement of any person as he deems necessary: (d) Exercise such other powers as may be necessary; for carrying out the purposes of this Act. Provided that no person shall be required under this subsection to answer any question or give any evidence tending to incriminate himself: 19 Provided further that, no residential accommodation (not being a Private Medical Establishment-cum-residence) shall be entered into and searched by the authorised officer except on the authority of a search warrant issued by a Magistrate having jurisdiction over the area and all searches and seizures under this section shall so far as may be, made in accordance with the provisions of the Code of Criminal Procedure , 1973 (Central Act 2 of 1974). (2) The authorised officer shall make a report to the 1[Registration and Grievance Redressal Authority]1 regarding the result of the inspection, searches and seizure made by him under sub-section (1), and the 1[Registration and Grievance Redressal Authority]1 shall take necessary action on the said report under this Act. 1. Substituted by Act 01 of 2018 w.e.f. 22. Sealing premises of un-registered Private Medical Establishments.- (1) Without prejudice to the provisions of section 19, if on a report made by the authorised officer under sub-section (1) of section 21 or otherwise the 1[Registration and Grievance Redressal Authority]1 has reason to believe that any Private Medical Establishment is run or maintained without registration under section 7, it may order immediate closure of such Private Medical Establishment and also seal the premises: Provided that no order under this sub-section shall be made without giving an opportunity of being heard to the person likely to be affected thereby. (2) Every order made under sub-section (1) shall contain a direction that the inpatients of such un-registered Private Medical Establishment shall be transferred to such other Private Medical Establishment as may be specified in that order and it shall also contain such provisions as to the care and custody of such inpatients pending such transfer. 1. Substituted by Act 01 of 2018 w.e.f. 23. Powers of State Government to give directions to the 1[Registration and Grievance Redressal Authorities]1.- The State Government may give such directions to the 1[Registration and Grievance Redressal Authority]1 as are in its opinion necessary or expedient for carrying out the purposes of this Act. The State Government shall record the reasons necessitating issuance of the said directions and it shall be the duty of the 1[Registration and Grievance Redressal Authority]1 to comply with such directions. 1. Substituted by Act 01 of 2018 w.e.f. 24. Protection of action taken in good faith.- No suit, prosecution or other legal proceeding shall lie against the State Government or any officer, authority or person in respect of anything which is in good-faith done or intended to be done in pursuance of the provisions of this Act, or any rule or order made thereunder. 20 25. Removal of difficulties.- If any difficulty arises in giving effect to the provisions of this Act the State Government may, by order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the difficulty: Provided that no such order shall be made after expiry of a period of two years from the appointed day. 26. Power to make rules:- (1) The State Government may, by notification and after previous publication, make rules for carrying out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing provisions such rules may provide for all or any of the following namely:- (a) the manner in which an application for registration shall be made and the fee which shall be accompanied under section 5; (b) such other factors for registration under section 6; (c) manner and payment of fees to be accompanied for renewal of registration; (d) Standards to be maintained by every Private Medical Establishment under section 9; (e) manner of maintaining clinical records under section 12; (f) the manner in which an appeal may be preferred and fees for such appeal under section 17; (g) the manner of taking custody of the premises under section 22; (h) all matters expressly required or allowed by this Act to be prescribed or in respect of which this Act makes no provision or makes insufficient provision and a provision is, in the opinion of the State Government, necessary for the proper implementation of the Act. 27. Rules and orders to be placed before the State legislature:- Every order made under section 26 and every rule made under section 27 shall be laid as soon as may be after it is made, before each House of the State Legislature while it is in session for a period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid both Houses agree in making any modification in the rule or order both Houses agree that the rule or order should not be made the rule or order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or order. 28. Repeal and Savings:- (1) The Karnataka Private Nursing Homes (Regulation) Act, 1976 (Karnataka Act 75 of 1976) is hereby repealed. (2) Notwithstanding such repeal,- 21 (a) anything done or any action taken under the repealed Act shall be deemed to have been done or taken under the corresponding provisions of this Act; (b) all applications made under the repealed Act for registration or renewal prior to the commencement of this Act and pending consideration on the date of commencement of this Act shall abate and the fee paid, if any, in respect of such application shall be refunded to the applicant and such applicants may apply afresh for Registration under the provisions of this Act. 1[SCHEDULE (see clause (s) of section 2 and section 11B) PATIENT'S CHARTER AND ESTABLISHMENT CHARTER I. PATIENT’S CHARTER A. PATIENT’S RIGHTS: (1) Care.- Every Patient shall have,- (i) a right to receive treatment irrespective of the type of primary and associated illnesses, socio-economic status, age, gender, sexual orientation, religion, caste, cultural preferences, linguistic and geographical origins or political affiliations; (ii) right to receive treatment in cases listed at subsection (i) of section 11 without being asked for advance payment; (iii) right to be heard of his medical problem and concerns; (iv) expectation from the doctor to write the prescription legibly and explain him on the details on dosage, dos and don’ts and generic options for the medicines; (v) to be provided with information and access on whom to contact in case of an emergency; (vi) right to be treated as per the standard protocol prescribed under clause (c) of sub-section (2) of section 9A; (vii) right to know the information regarding the schedule of charges in the manner prescribed under sub-section (1) of section 10 (viii) right to be charged not more than the rates notified under sub-section (1) of section 10; and (ix) right to receive clinical records in accordance with sub-section (3) of section 12. 22 (2) Confidentiality and Dignity.- (a) Every Patient shall have,- (i) right to personal dignity and to receive care without any form of stigma and discrimination; (ii) privacy during examination and treatment; (iii)protection from physical abuse and neglect; (iv)provision for spiritual and cultural preferences; and (v) right to confidentiality about their medical condition. (b) In the event of death of a patient, his family members shall have the right to receive the dead body immediately without being asked for prior payment of the dues in accordance with clause (vi) of section 11. (3) Information.- Every Patient or his authorised family member shall have right to,- (i) information to be provided to him which are meant to be and in a language of the patient’s preference and in a manner that is effortless to understand,- (ii) receive complete information on the medical problem, prescription, treatment and procedure details; (iii) a documented procedure for his informed consent to enable him to make an informed decision about his care to be practiced with utmost diligence and transparency; (iv) be educated on risks, benefits, expected treatment outcomes and possible complications to enable him to make informed decisions and involve him in the care planning and delivery process; (v) request information on the names, dosages and adverse effects of the medication that they are treated with; (vi) request access and receive a copy of his clinical records; (vii) complete information on the expected cost of treatment presented as an itemised structure of the various expenses and charges; (viii) information on hospital rules and regulations; and (ix) information on organ donation. (4) Preferences.- Every Patient shall have right to,- (i) seek a second opinion on his medical condition; and (ii)get his treatment options, so that he can select what works best for him. (5) Right to redress.- Every Patient shall have right to,- 23 (i) justice through an authority dedicated for this purpose by the healthcare provider organization or with Government Grievance Redressal authorities; (ii) a fair and prompt hearing of his concern; and (iii)appeal to a higher authority in the private medical establishment and insist in writing on the outcome of the complaint. B. PATIENTS’ RESPONSIBILITIES.- (1) Honesty in Disclosure.- Every Patient shall be honest with the treating Doctor in disclosing family or medical history. (2) Treatment Compliance.- Every patient shall,- (i) be punctual for appointments; (ii) do the best to comply with the doctor’s treatment plan; (iii) have realistic expectations from the doctor and his treatment; (iv)inform and bring to the doctor’s notice if it has been difficult to understand any part of the treatment or of the existence of challenges in complying with the treatment; and (v) display intent to participate intelligently in medical care by actively involving in the prescribed do-athome activities. (3) Intent for Health Promotion.- Every patient shall do everything in capacity to maintain healthy habits and routines that contribute to good health and take responsibility for health. (4) Transparency and Honesty.- Every patient shall,- (i) make a sincere effort to understand therapies which include the medicines prescribed and their associated adverse effects and other compliances for effective treatment outcomes; (ii) not ask for surreptitious bills and false certificates, and/or advocate forcefully by unlawful means to provide with one; (iii)in the event of not being happy, shall inform and discuss with doctor; and (iv)report fraud and wrong-doing. (5) Conduct.- Every patient shall,- (i) respect the doctors and medical staff caring and treating; (ii) abide by the Hospital or facility rules; (iii)bear the agreed expenses of the treatment that is explained to in advance and pay bills on time in accordance with section 10; and 24 (iv) not involve in abusing, assaulting or causing harm to the Doctor or staff of Hospital. (any contravention may attract penalty under the Karnataka Prohibition of Violence Against Medicare Service Personnel and Damage to Property in Medicare Service Institutions Act, 2009 (Karnataka Act 01 of 2009)) II. PRIVATE MEDICAL ESTABLISHMENT’S CHARTER:- (1) Transparency and Honesty.-Every Private Medical Establishment shall,- (i) provide a printed schedule of fee for office visits, procedures, testing and surgery and provide itemized bills; and (ii) inform the doctor's qualifications to perform the proposed diagnostic measures or treatments. (2) Patient Friendly.-Every Private Medical Establishment shall,- (i) schedule appointments in such a manner that it may allow patient the necessary time to interact and examine him with minimal waiting times and listen to his problems and concerns without interruptions or distractions; and (ii) encourage patient to bring a friend or relative into the examining room with him. (3) Effective Communication for Patient Education.- Every Doctor shall,- (i) explain the patient prognosis, further diagnostic activity and treatment in simple terms such that it facilitates easy understanding to him; (ii) prescribe an Information, Therapy and discuss with the patient diagnostic treatment and medication options, to enable him to make well-informed of decisions; and (iii) not proceed until the patient is satisfied and convinced that he understands the benefits and risks of each alternative and he has his agreement on a particular course of action. (4) Implementation of the patient charter.- Every Private Medical Establishment shall,- (i) publish the patient charter in Kannada and English; 25 (ii) display the patient charter prominently and at multiple locations in the healthcare provider setting; and (iii) implement the patient charter in its true spirit in everyday medical practice.]1 1. Inserted by Act 01 of 2018 w.e.f. RAMESHWAR THAKUR Governor of Karnataka By order and in the name of the President of India, G. K. BOREGOWDA Secretary to Government, Department of Parliamentary Affairs and Legislation. 26 KARNATAKA ACT 37 OF 2012 (First published in the Karnataka Gazette Extraordinary on the Third day of September, 2012) THE KARNATAKA PRIVATE MEDICAL ESTABLISHMENTS (AMENDMENT) ACT, 2012 (Received the assent of the Governor on the Thirty First day of August, 2012) An Act further to amend the Karnataka Private Medical Establishments Act, 2007. Whereas it is expedient further to amend the Karnataka Private Medical Establishments Act, 2007 (Karnataka Act 21 of 2007), for the purposes hereinafter appearing; Be it enacted by the Karnataka State Legislature in the sixtythird year of the Republic of India, as follows:- 1. Short title and commencement.- (1) This Act may be called the Karnataka Private Medical Establishments (Amendment) Act, 2012. (2) It shall come into force at once. Section 3 is Incorporated in the Principal Act. ***** KARNATAKA ACT NO. 01 OF 2018 (First Published in the Karnataka Gazette Extra-ordinary on the 06th day of January, 2018) THE KARNATAKA PRIVATE MEDICAL ESTABLISHMENTS (AMENDMENT) ACT, 2017 (Received the assent of Governor on the 04th day of January, 2018) An Act further to amend the Karnataka Private Medical Establishments Act, 2007. Whereas it is expedient further to amend the Karnataka Private Medical Establishments Act, 2007 (Karnataka Act 21 of 2007) for the purposes hereinafter appearing; Be it enacted by the Karnataka State Legislature in the sixtyeighth year of the Republic of India, as follows:- 1. Short title and commencement.-(1) This Act may be called the Karnataka Private Medical Establishments (Amendment) Act, 2017. (2) It shall come into force on such date as the State Government may, by notification, appoint and different dates may be appointed for different provisions of this Act. Substitution of expressions.- For the expressions “Registration Authority” or “Registration Authorities” wherever they occur in the Principal Act, the expressions “Registration and Grievance Redressal Authority” or “Registration and Grievance Redressal Authorities” shall be substituted respectively. Sections 2 ,3,4,6,7,8,9,10,11,12,15,16,19 and insertion of new Sections 9A, 11A, 11B1 19A and 19B are incorporated in the Principal Act.- Every order made under section 26 and every rule made under section 27 shall be laid as soon as may be after it is made, before each House of the State Legislature while it is in session for a period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid both Houses agree in making any modification in the rule or order both Houses agree that the rule or order should not be made the rule or order shall thereafter have effect only in such modified form or be of no effect, as the case may be; so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or order. 

28. Repeal and Savings:- 
(1) The Karnataka Private Nursing Homes (Regulation) Act, 1976 (Karnataka Act 75 of 1976) is hereby repealed. 
(2) Notwithstanding such repeal,- 

(a) anything done or any action taken under the repealed Act shall be deemed to have been done or taken under the corresponding provisions of this Act; (b) all applications made under the repealed Act for registration or renewal prior to the commencement of this Act and pending consideration on the date of commencement of this Act shall abate and the fee paid, if any, in respect of such application shall be refunded to the applicant and such applicants may apply afresh for Registration under the provisions of this Act. 1[SCHEDULE (see clause (s) of section 2 and section 11B) PATIENT'S CHARTER AND ESTABLISHMENT CHARTER I. PATIENT’S CHARTER A. PATIENT’S RIGHTS: (1) Care.- Every Patient shall have,- (i) a right to receive treatment irrespective of the type of primary and associated illnesses, socio-economic status, age, gender, sexual orientation, religion, caste, cultural preferences, linguistic and geographical origins or political affiliations; (ii) right to receive treatment in cases listed at subsection (i) of section 11 without being asked for advance payment; (iii) right to be heard of his medical problem and concerns; (iv) expectation from the doctor to write the prescription legibly and explain him on the details on dosage, dos and don’ts and generic options for the medicines; (v) to be provided with information and access on whom to contact in case of an emergency; (vi) right to be treated as per the standard protocol prescribed under clause (c) of sub-section (2) of section 9A; (vii) right to know the information regarding the schedule of charges in the manner prescribed under sub-section (1) of section 10 (viii) right to be charged not more than the rates notified under sub-section (1) of section 10; and (ix) right to receive clinical records in accordance with sub-section (3) of section 12. 22 (2) Confidentiality and Dignity.- (a) Every Patient shall have,- (i) right to personal dignity and to receive care without any form of stigma and discrimination; (ii) privacy during examination and treatment; (iii)protection from physical abuse and neglect; (iv)provision for spiritual and cultural preferences; and (v) right to confidentiality about their medical condition. (b) In the event of death of a patient, his family members shall have the right to receive the dead body immediately without being asked for prior payment of the dues in accordance with clause (vi) of section 11. (3) Information.- Every Patient or his authorised family member shall have right to,- (i) information to be provided to him which are meant to be and in a language of the patient’s preference and in a manner that is effortless to understand,- (ii) receive complete information on the medical problem, prescription, treatment and procedure details; (iii) a documented procedure for his informed consent to enable him to make an informed decision about his care to be practiced with utmost diligence and transparency; (iv) be educated on risks, benefits, expected treatment outcomes and possible complications to enable him to make informed decisions and involve him in the care planning and delivery process; (v) request information on the names, dosages and adverse effects of the medication that they are treated with; (vi) request access and receive a copy of his clinical records; (vii) complete information on the expected cost of treatment presented as an itemised structure of the various expenses and charges; (viii) information on hospital rules and regulations; and (ix) information on organ donation. (4) Preferences.- Every Patient shall have right to,- (i) seek a second opinion on his medical condition; and (ii)get his treatment options, so that he can select what works best for him. (5) Right to redress.- Every Patient shall have right to,- 23 (i) justice through an authority dedicated for this purpose by the healthcare provider organization or with Government Grievance Redressal authorities; (ii) a fair and prompt hearing of his concern; and (iii)appeal to a higher authority in the private medical establishment and insist in writing on the outcome of the complaint. B. PATIENTS’ RESPONSIBILITIES.- (1) Honesty in Disclosure.- Every Patient shall be honest with the treating Doctor in disclosing family or medical history. (2) Treatment Compliance.- Every patient shall,- (i) be punctual for appointments; (ii) do the best to comply with the doctor’s treatment plan; (iii) have realistic expectations from the doctor and his treatment; (iv)inform and bring to the doctor’s notice if it has been difficult to understand any part of the treatment or of the existence of challenges in complying with the treatment; and (v) display intent to participate intelligently in medical care by actively involving in the prescribed do-athome activities. (3) Intent for Health Promotion.- Every patient shall do everything in capacity to maintain healthy habits and routines that contribute to good health and take responsibility for health. (4) Transparency and Honesty.- Every patient shall,- (i) make a sincere effort to understand therapies which include the medicines prescribed and their associated adverse effects and other compliances for effective treatment outcomes; (ii) not ask for surreptitious bills and false certificates, and/or advocate forcefully by unlawful means to provide with one; (iii)in the event of not being happy, shall inform and discuss with doctor; and (iv)report fraud and wrong-doing. (5) Conduct.- Every patient shall,- (i) respect the doctors and medical staff caring and treating; (ii) abide by the Hospital or facility rules; (iii)bear the agreed expenses of the treatment that is explained to in advance and pay bills on time in accordance with section 10; and 24 (iv) not involve in abusing, assaulting or causing harm to the Doctor or staff of Hospital. (any contravention may attract penalty under the Karnataka Prohibition of Violence Against Medicare Service Personnel and Damage to Property in Medicare Service Institutions Act, 2009 (Karnataka Act 01 of 2009)) II. PRIVATE MEDICAL ESTABLISHMENT’S CHARTER:- (1) Transparency and Honesty.-Every Private Medical Establishment shall,- (i) provide a printed schedule of fee for office visits, procedures, testing and surgery and provide itemized bills; and (ii) inform the doctor's qualifications to perform the proposed diagnostic measures or treatments. (2) Patient Friendly.-Every Private Medical Establishment shall,- (i) schedule appointments in such a manner that it may allow patient the necessary time to interact and examine him with minimal waiting times and listen to his problems and concerns without interruptions or distractions; and (ii) encourage patient to bring a friend or relative into the examining room with him. (3) Effective Communication for Patient Education.- Every Doctor shall,- (i) explain the patient prognosis, further diagnostic activity and treatment in simple terms such that it facilitates easy understanding to him; (ii) prescribe an Information, Therapy and discuss with the patient diagnostic treatment and medication options, to enable him to make well-informed of decisions; and (iii) not proceed until the patient is satisfied and convinced that he understands the benefits and risks of each alternative and he has his agreement on a particular course of action. (4) Implementation of the patient charter.- Every Private Medical Establishment shall,- (i) publish the patient charter in Kannada and English; 25 (ii) display the patient charter prominently and at multiple locations in the healthcare provider setting; and (iii) implement the patient charter in its true spirit in everyday medical practice.]1 1. Inserted by Act 01 of 2018 w.e.f. 


RAMESHWAR THAKUR 
Governor of Karnataka By order and in the name of the President of India, G. K. BOREGOWDA Secretary to Government, Department of Parliamentary Affairs and Legislation. 26 KARNATAKA ACT 37 OF 2012
(First published in the Karnataka Gazette Extraordinary on the Third day of September, 2012) 
THE KARNATAKA PRIVATE MEDICAL ESTABLISHMENTS (AMENDMENT) ACT, 2012 (Received the assent of the Governor on the Thirty First day of August, 2012)

An Act further to amend the Karnataka Private Medical Establishments Act, 2007. Whereas it is expedient further to amend the Karnataka Private Medical Establishments Act, 2007 (Karnataka Act 21 of 2007), for the purposes hereinafter appearing; Be it enacted by the Karnataka State Legislature in the sixtythird year of the Republic of India, as follows:- 

1. Short title and commencement.- (1) This Act may be called the Karnataka Private Medical Establishments (Amendment) Act, 2012. 
(2) It shall come into force at once. Section 3 is Incorporated in the Principal Act. ***** KARNATAKA ACT NO. 01 OF 2018 (First Published in the Karnataka Gazette Extra-ordinary on the 06th day of January, 2018) 
THE KARNATAKA PRIVATE MEDICAL ESTABLISHMENTS (AMENDMENT) ACT, 2017 (Received the assent of Governor on the 04th day of January, 2018) 

An Act further to amend the Karnataka Private Medical Establishments Act, 2007. Whereas it is expedient further to amend the Karnataka Private Medical Establishments Act, 2007 (Karnataka Act 21 of 2007) for the purposes hereinafter appearing; Be it enacted by the Karnataka State Legislature in the sixtyeighth year of the Republic of India, as follows:- 
1. Short title and commencement.-(1) This Act may be called the Karnataka Private Medical Establishments (Amendment) Act, 2017. 
(2) It shall come into force on such date as the State Government may, by notification, appoint and different dates may be appointed for different provisions of this Act. Substitution of expressions.- For the expressions “Registration Authority” or “Registration Authorities” wherever they occur in the Principal Act, the expressions “Registration and Grievance Redressal Authority” or “Registration and Grievance Redressal Authorities” shall be substituted respectively. Sections 2 ,3,4,6,7,8,9,10,11,12,15,16,19 and insertion of new Sections 9A, 11A, 11B1 19A and 19B are incorporated in the Principal Act.