The Bombay Shops and Establishment Act, 1948

Author : geetha
Published: November 12, 2010, 5:02 am

The Bombay Shops and Establishment Act, 1948

By repealing the old "" Bombay Shops & Establishments Act, 1939, a new enactment known as "The Bombay
Shops & Establishments Act, 1948" was brought into force from 11th January 1949 on the basis of Mr.
Shantilal Shah’s Committee’s Report. This act is a social piece of legislation of the State
Government enacted to prevent sweat labourers of Un-organised sectro and to regulate the condition of work
and employment and therefore to secure maximum benefits to the employees working in different categories
of establishment viz. Shops, Commercial Establishments, residential hotels, restaurants, eating houses,
theatres and other places of public amusement or entertainments are mainly protected by the provisions of this
act. For the jurisdiction of Greater Mumbai by virtue of the statutory provisions of Section 43 of the said Act
subject to the overall supervisions of the State Government through the Commissioner of Labour,
Mumbai.The shops & Establishments Department is headed by the Chief Inspector, Shops & Estts. the Chief
Inspector, Shops & Establishments is assisted by Four Deputy Chief Inspectors. The working of this
department is carried out by the Sr. Inspector (Shops & Estts.) in each Municipal Corporation of Greater
Mumbai Ward who is assisted by the Shop Inspector, clerks and Shop Attendants. For the Sr. Inspector (Shops
& Estts) offices indoor working hours are 900 am to 1200 Noon and 3 ˝ hrs in aggregrate are prescribed to
inspectors for outdoor work ( field work). The enforcement field is divided in four zones for the administrative
convenience. Each Dy. Chief Inspector (Shops & Estts.) is incharge of a respective zone. The chart of
organisation set up is at -----

The following formats are prescribed under Bombay Shops & Estts. Act 1948 for the purposes shown against
them. All these formats are required to be submitted to the Sr. Inspector (Shops & Estts.) in respective
M.C.G.M. ward between 9 p.m. to 12 p.m. on any working day.

Form 'A'

This form is prescribed for registration of the Estts. under Bombay Shops & Estts. Act, 1948. Registration is
made under Sec 7(1)(4) of Bombay Shops & Estts. Act (Copy attached)

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Documents Required for registration of establishment.

1. ‘A' form correctly filled by the employer.

2. Rent receipt or maintenance bill (if the estts. are situated in Hsg. Societies ) standing in the name of the
employer

3. issued by the landlord/society.

OR

Consent letter from the principal tenant / owner of the premises if the employer is other than the tenant /
owner.

OR

Valid leave and licence agreement between the owner and the occupant.

OR

a) Affidavit-cum-Identity bond specifically expressing the reason for not producing any of the above
documents in addition to the other usual clauses.

b) Electricity bill of the premises.

c) Ration card if the estt. is functioning at the residential place.

d) Tax bill of the premises.

OR

Premises allotment / occupation certificate / order issued by the Govt. / Semi Govt / Municipal authorities in
f/o the employer.

iii) Business Transactions proof to show the business is in existence.

iv) If the estt. / firm is other than the proprietory concern, partnership deed, memorandum of articles,
incorporation certificate, list of the directors duly signed by the proper authority as the case may be.

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Form 'B' This is prescribed for the periodical renewal of registration certificate say for one year or three at a
time. Renewal is made under sec 7(2A) of the Bombay Shops and Estts. Act (copy attached)

Form 'E' This form is prescribed for making any subsequent change in the information already submitted in
form 'A'.

As per Sec. 7 of the Bombay Shops & Establishments Act. 1948 it is a obligatory to register the establishment
under the Act. Under Sec. 7(4) the employer is obliged to get his establishment registered in the prescribed
manner within 30 days from the date of which the establishment commences its work. According to provisions
of Sec.7(1) it is required to submit to the concerned Shop Inspector under jurisdiction the prescribed form 'A'
together with prescribed fees for registration of establishment. Pursuant to Sec. 7(2) on receipt of statement in
form 'A' along with prescribed fees, on being satisfied about the correctness of the statement, the Registration
certificate for registration of the establishment is issued in form 'D' in accordance with the provisions of
Rule-6 of the Maharashtra Shops & Estts. Rules 1961.

The Registration Certificate is generally valid upto the end of the calendar year for which it is granted under
Sec. 7(2A) it is required to get every Registration Certificate renewed for next calendar year fifteen days
before the date of expiry of Registration Certificate in hand by submitting prescribed form 'B' alongwith
prescribed renewal fees to the concerned Shop Inspector. As per Sec. 7(2B), the renewal of Registration
Certificate can be made for 3 calendar years at a time at the option of the employer by paying requisite for that
period. In such cases the Registration Certificate shall be valid upto the end of 3rd calendar years including
and from the year to which it is granted or renewed as the case may be.

If the renewal application is not made within the period prescribed but it is made within thirty days after the
date of expiry of Registration Certificate or the renewed Registration Certificate as the case may be, then in
such cases an additional fee as late fee equal to half of the fee payable for normal renewal of Registration
Certificate is charged in accordance with the provision of Sec. 7(2A) and in such cases penal action for
non-renewal of Registration Certificates are levied by the State Govt. as per Schedule-I appended to Rules-5
of the Maharashtra Shops & Estts. Rules,1961 made under the Bombay Shops & Estts. Rules 1948 and that
are fixed in relation to the number of employees employed in the establishment.

In addition to Bombay Shops & Estts. Act fees a sum of three times of the registration and renewal fees per
year is charged as Trade Refuse Charges under the provisions of Mumbai Municipal Corporation Act. 1888.

Under Sec.8 the employer has to notify the Inspector in the prescribed time in Form 'E' alongwith prescribed
fees if any change has taken place in the particulars contained in the statement submitted under section 7 of the
Bombay Shops & Estts. Act 1948. On receipt of 'E' form alongwith prescribed fees within the specified time
in the manner prescribed in Rule-8 on being satisfied about the correctness of the change, the necessary entry
for the change occurred be made in the Registration Certificate or fresh Registration Certificate may be
granted if necessary. The rates of fees for notice of change in respect of prescribed form 'E' applicable from
24.6.1997 as specified in schedule-II appended to Rule-' of Maharashtra Shops & Establishment Rules, 1961
are as under

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In case less of Registration Certificate or if it is destroyed or defaced and an application is submitted by the
employer for duplicate copy, the duplicate Registration Certificate may be granted on payment of fees of Rs.
Twenty in accordance with provisions of Rule-7 of the Maharashtra Shops & Establishment Rules 1961.

For non-Registration of the establishment and non-renewal of the Registration Certificate within the specified
time as stated above, the employers are liable for penal action under Sec. 52 of the Act.

The Head Quarter of Shops and Establishments Department is situated at the office, of Chief Inspecter (Shops
& Estts.), Bhimabai Rane Muncipal Scholl Building, 4th floor, raja Rammohan Rey Marg, Girgaum, Mumbai
– 400 004.

Fees for Registration & Renewal of Registration Certificate

Shops & Establishment having Registration Fees per year Fees for Renewal of Registration Certificate per
year Trade Refuse Charges per year

Nil Employees Rs. 50/- Rs. 50/- Rs. 150/-

1 to 5 Employees Rs. 150/- Rs. 150/- Rs. 450/-

6 to 10 Employees Rs. 300/- Rs. 300/- Rs. 900/-

11 to 20 Employees Rs. 600/- Rs. 600/- Rs. 1800/-

21 to 50 Employees Rs. 1500/- Rs. 1500/- Rs. 4500/-

51 to 100 Employees Rs. 3000/- Rs. 3000/- Rs. 9000/-

101 and above Employees Rs. 4000/- Rs. 4000/- Rs. 12000/-

Fees for Notice in Change, to be submitted along with Form E

Category of Establishments Fees

Commercial Establishment Rs. 50/-

Shops having Employee Rs. 50/-

Shop having No Employee Rs. 50/-

Residential Hotel Rs. 50/-

Restaurants & Eating Houses Rs. 50/-

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Theaters& Other Places of Public Rs. 50/-

Amusements or Entertainment Rs. 50/-

Cheque to be drawn in favour of “Municipal Corporation of Greater Mumbai”.

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