39: Event Laws - Legislations, Acts, Permissions & NOCs

 

B A (JMC) (3-YDC), SEMESTER SYSTEM

SEMESTER –IV

SEC III: PUBLIC RELATIONS AND EVENT MANAGEMENT

Unit - 2: EVENT MANAGEMENT

LESSON – 39: Event Laws - Legislations, Acts, Permissions & NOCs

 

Objectives:

1. Know what is Event Laws.
2. Understand the laws relevant for event management.
3. Learn about the Authorities that enforce Event Laws
4. Enumerate the authorities that grant NOCs
5. Know the Permissions & NOCs required for organising an event.

Introduction:

Organizing an event is a huge task. It takes months of planning, fund raising, coordination, and networking. There are unprecedented heights of customers’ and other stakeholders’ expectations. Hence majority of the activities at the event are outsourced for proficiency. In the light of these, it is very essential to discuss legal issues which are of concern to the entrepreneurs in the field of event industry. These primarily consist of Goods and Services Tax (GST), Govt permits and NOCs. The documentation work is in the form of approvals or No Objection Certificates from different departments. To ensure the smooth running of an event, the event organizers must make sure that all legal procedures are followed. This lesson will help in understanding the basic rules and regulations which are necessary to satisfy authorities such as local government, police, and the department of the environment while organising an event. The laws are intended to prescribe guidelines for event organisers to ensure that venues and event activities are safe and do not disturb neighboring community. These make events safer, identify basic standards necessary to satisfy authorities and provide a consistent approach to events at the state level. However, rules and regulations must be interpreted keeping the size and complexity of the event in consideration so that appropriate information is utilized from the guidelines. Many times the venue owner provides event organisers with the list of licenses, which they need to obtain before the event begins. Each event has its own set of activities and requirements.

In this lesson, we will study the Laws associated with event management, Acts, Permits and NOCs from different authorities and agencies.

Law & Legislation

Legislation is a general term for laws that have been passed by a National Parliament, State Legislatures or by people or bodies that have been given law-making powers by the Constitution. Legislation is also known as Acts or Statutes. Legislation is one of the two main sources of law, along with case law, which is made up of court decisions. Legislation can have many purposes, such as regulating, authorizing, enabling, prescribing, providing funds, sanctioning, granting, declaring, or restricting. Before an Act is passed, it is presented to the Parliament or State Legislature as a Bill. Once passed, it becomes law, but many Acts are amended multiple times. Acts can also be repealed, replaced, or considered by the courts. Society is governed by Laws, not People and even the Governments must follow the laws. The span of law is very wide; it governs almost every activity which happens in the society in one way or the other. Organising an event is regulated by several laws of the land.

Laws related to event management:

There are Venue and Property related Laws. The selection of venue is influenced by many factors. Event planners have to select a venue which perfectly matches with the needs of the event to be hosted. However, to hold an event at the selected venue needs either buying or owning the venue or acquiring it for the purpose of holding an event there. It has been observed that the most popular mode of gaining access to event venue is by acquiring it. However, here we will briefly deal with three modes to get a venue for hosting an event and the laws related to them.

1)     Owning a Property for hosting an event through Sale: Section 5 of the Transfer of Property Act 1882 describes the term sale as a transfer of ownership in exchange for a price paid or promised or part paid and part promised. A sale of immovable property for value more than Rs.100/- can only be made through a registered instrument which in normal terms is known as a sale deed. The essential elements of a sale are: (1) Parties: Normally there are two parties - a buyer and a seller. (2) The subject matter: The subject matter is the land / venue for hosting the event. (3) The transfer of conveyance: There are two recognized modes of conveyance, the delivery of possession and registration of sale deed. and (4) The sale price or consideration: The price is the essence of the contract of sale and unless the price is there the contract of sale cannot be enforced under law.

2)     Acquiring access to property to hold an event through License: According to the Indian Easement Act 1882, a license is when one person grants to another, or to a definite number of other persons, a right to do, or continue to do, in or upon the immovable property of the grantor. It is something which would, in the absence of such right, be unlawful, and such right does not amount to an easement or an interest in the property. This right is called a license. So an event planner has to seek license from the owner of the property to use the venue for hosting the event. Here it is worth mentioning that it is the duty of the event manager to ensure that the venue which is hired for hosting the event is as per the needs and demand of the event.

3)     Acquiring access to property to hold an event through Lease: As per the Transfer of Property Act 1882 - A lease of immovable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of goods, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other things to be so rendered is called the rent.

Usually event managers holding events of similar nature apply for a lease of the venue for a certain period. They enter into an agreement with the owner for the lease of the venue. Event managers who host events like marriage parties, fundraising, gala dinners, birthdays, weddings, and anniversaries, take lease of venues like lawns and marriage halls for conducting these ceremonies.

It is the responsibility of the event company to find out and comply with all pertinent rules, regulations and license requirements. It is worth mentioning that the event managers must make it a practice to pay particular attention to work place health and safety regulations. Some of the relevant regulations which a public event must comply with during build up or break down of the venue as per event requirements. They are:

1.      Environmental Protection:

It is often seen that big events pose threat to the environment and to the people living in the vicinity. There are dangerous risks of pollution, spills, effluent leakage and of some indirect concerns like wastes and garbage disposal of the event. Some events like festivals and ‘melas’ i.e. fairs create a lot of pollution which may be harmful to the environment as well as dangerous to people. In such cases any event organized by a professional event manager should comply with the provisions of Environmental Protection Act, 1986, with respect to water pollution, noise pollution, soil pollution, air pollution etc. It should be the duty of the Event Manager to take proper care that events which pollute the environment such as burning of things and submerging of things in water must not cause damage to land, water, soil and air leading to pollution and affecting people.

2.      Pollution Check:

There are certain guidelines given by the authorities like Central Pollution Control Board, State Pollution Control Boards, National Green Tribunal, Environment Courts, Supreme Court which need to be followed by the Event Manager before hosting an event. These guidelines can be procured from the respective police stations, municipal corporations, municipalities, nagar panchayats and rural local bodies. Here, the event manager needs to obtain a permit from the concerned before organizing an event which has threats to the environment.

3.      Noise Pollution:

Regulating and controlling noise producing sources is necessary to maintain the ambient air quality standards with respect to noise. The contributors of noise levels in public places are from sources such as industrial activity, construction activity, generator sets, vehicular horns, loud speakers, public address systems, music systems, and other mechanical devices. Since increasing noise pollution has harmful effects on human health and the psychological wellbeing of people, the government makes rules for regulating and controlling noise pollution. For example, a loud speaker in public event or a public address system can only be used after obtaining permission from the authority. It is mostly not allowed to be used at night between 10:00 pm to 6 am, except in closed premises, for communication within for example auditoria, conference rooms, community halls and banquet halls.

4.      Electricity Act 2003:

The act consolidates the laws relating to generation, transmission, distribution, trading and use of electricity. This also enables the regulators to take measures conducive to development of electricity industry, promoting competition therein, protecting interest of consumers and supply of electricity to all areas, rationalization of electricity tariff, ensuring transparent policies regarding subsidies, promotion of efficient and environmentally friendly policies and for connected matters. States may vary from each other when it comes to transmission, distribution, use of electricity and electricity tariff. The event organizer must collect thorough information on these aspects when organising events in different states or districts.

5.      The National Building Code:

It is the main building regulation act in India. It provides a set of rules that specify the minimum standards for constructed objects such as buildings and non-building structures. The prime objective of these regulations is to protect public health, safety and general welfare in the context of the construction and occupancy of buildings and structures. Regulations also provide specific requirements applying to special construction objects such as stages, hoardings, canopies, signs, pedestrian walkways, parking lots, radio and television antennas and minimum standards for sanitation, water supply, light, ventilation, fire prevention and control, energy efficiency, stairs and halls, mechanical, electrical, plumbing, site drainage and storage, appliance, lighting, fixtures standards, occupancy rules, swimming pool regulations and so on.

6.      The Fire Safety Act 2005:

The act deals with safety from fire. It specifies the demarcation of fire zones, restrictions on construction of buildings in each fire zone, classification of buildings based on occupancy, and types of building construction according to fire resistance of the structural and non-structural components. The act also deals with other restrictions and requirements necessary to minimise danger to life from fire, smoke, fumes or panic before the buildings can be evacuated. The event organisers must keep all these specifications in mind while constructing the event premise. Also, the fire protection techniques have to be based on the fire behaviour characteristics of different materials and structural elements used in venue designing.

7.      Goods and Services Tax (GST) Act 2017:

GST was introduced in India on 1st July 2017. With this, the entire tax legislation has undergone a paradigm shift. Former taxes levied by central and state government including - value added tax (VAT), service tax, excise duty, additional custom duty tax, state level entertainment tax, entry tax and surcharges have now got subsumed into the GST legislation. However, customs duty collected by the Central Government on import of goods into India and entertainment tax levied by local bodies such as panchayats and municipalities continue to remain outside the ambit of GST legislation and shall be applicable as separate levies, over and above GST. The GST bill has a four-tier structure, namely 5 per cent, 12 per cent, 18 per cent and 28 per cent. This means that tax will be levied at rate baskets ranging from 5 to 28 per cent. Events come under GST legislation as they are classified as a supply service under GST.

GST implications on the Event Industry:

·       Sponsorships which form a significant chunk of revenue generation for any event is subject to GST under the reverse charge mechanism.

·       The event organizer has to specifically obtain GST registration to incur location-specific expenses in the state where the event will happen and such expenses will take place.

·      For mega event companies, overall, GST has a positive impact because the entertainment tax on events has got subsumed in GST. For example, earlier when one was watching an IPL match, he or she was paying 25 per cent entertainment tax and 15 per cent service tax; this was almost 40 per cent on the ticket price. However, with GST, it has gone down to 28 per cent.

·       Most of the third party services have been capped at 28 per cent tax which will free the MICE Industry of India i.e. Meetings, Incentives, Conferences and Exhibitions Industry from the burden of multiple taxation systems.

·      Credit of GST levied on supplies of food and beverages and outdoor catering, beauty treatment services and rent a cab is specifically disallowed under the GST legislation, eventually resulting in cost inflation for event organizers.

8.      Local Body Entertainment Tax:

With the introduction of the GST legislation, entertainment tax levied by the States has been subsumed into GST legislation. However, the entertainment tax to the extent levied and collected by local bodies such a panchayats and municipalities in certain States like Tamil Nadu, Maharashtra etc has been kept outside the purview of GST. Therefore, LBET on all entertainment activities shall continue to apply as a supplementary tax over and above GST. LBET shall be levied on amounts charged for allowing entry into the place where the entertainment is being held. Entertainment tax rates on events differ from state to state, as legislations governing the entertainment tax law differ from state to state.

According to Ernst & Young, and the Event and Entertainment Management Association (2017), some key things to be done by event organisers to meet the GST compliance are:

·     Register under GST and enable / assist key vendors also to register, so they can avail input credits and keep costs lower.

·         Update accounting systems to enable purchase invoice entry and sales invoice processing.

·       Revise formats of all the documents such as invoices, goods, transfer notes and reimbursement slips to accurately capture GST elements and amounts.

·   Evaluate each event being conducted across different states to determine the need for local GST registration, local sourcing and / or change in agreement terms with clients or vendors.

·    An important factor for marketers when selecting event and activation vendors is event companies following the GST well.

·         Explain to potential clients the benefits of sourcing from event companies rather than directly sourcing elements of each event. e.g. venue cost and stage set up.

·      Ensure that vendors are updating their sales transactions in a timely manner and paying taxes on the transactions within the stipulated timelines.

9.      Customs Duty:

Customs duty is levied on import of goods into India. Events such as exhibitions and musical shows entail import of various goods into India. All imports are liable to customs duty depending upon the description of the product and its classification under the internationally accepted classification nomenclatures.

10Civil and Tortuous Liability:

Duty of care: It is a fundamental legal principle which normally applies to all events, of taking reasonable care to avoid acts or omissions that could injure employees, contractors, users, participants and visitors. This is called the duty of care and is covered by the area of law known as ‘torts.’ The law of torts is a legal area that covers civil wrongs and injuries. Torts can be intentional or unintentional, and the consequences can be severe. If you commit a tort, you may be liable for damages, which can include monetary damages, pain and suffering, and emotional distress. Torts as we understand are a breach of duty owed to other people and imposed by law, and in this it differs from the duties arising from contracts, which are agreed between contracting parties. Unlike criminal law, which is concerned with punishment and deterrence, the law of torts is concerned with compensation.

In the context of event management duty of care means taking actions that will prevent any foreseeable risks of injury to people who are directly affected by, or involved in the event. This would include the event staff, volunteers, the performers, the audience or spectators and the public in the surrounding areas. It is the duty of the event manager to take essential care of the event stakeholders and any breach of such duty because of which any person or persons suffer damages, may result in negligence on the part of the event coordinator. The duty of care towards stakeholders is not only a moral duty but also a legal duty. The law of torts in India says that if the person, here the event coordinator, at the time of the act or omission of the act could reasonably foresee any injury to her / his stakeholders, then he or she owes a duty to prevent that injury and failure to do that makes her/him liable. In India to decide culpability we have to determine what a reasonable person would have foreseen and thus form an idea of how she/he would have behaved under the circumstances. Thus any negligence by the event coordinator which results in injury, and could be foreseeable but the coordinator showed lack of observance of duty of care, will make her / him liable for the damages.

11Safety, Health and Environment:

Health and safety of the employees at work place is a key factor in any organisation. It ensures smooth functioning and effective output at the organizational level. Such an act allows creating an accident-free industrial environment. The organizations giving adequate attention to safety measures and welfare of the employees are able to yield high returns by improving employee morale, reducing absenteeism and enhancing productivity, minimizing potential of work-related injuries and increasing the quality of manufactured products and rendered services.

In India, Occupational Safety, Health and Working Conditions Code 2019 is in place for securing the health, safety and welfare of persons at work for (1) Protecting persons, other than persons at work, against risks to health or safety arising out of or in connection with the activities of persons at work, (2) Controlling the keeping and use of explosive or highly inflammable or otherwise dangerous substances, and generally preventing the unlawful acquisition, possession and use of such substances and for (3) Controlling emission into the atmosphere of noxious or offensive substances, which comes under the Environmental (Protection) Act 1986.

12PERMISSIONS AND NOCs:

NOC i.e. No Objection Certificate is a written document obtained as approval from the local authority. In case of organising an event, the event organiser needs to obtain NOCs from different departments like -  

·         No Objection Certificate from the Revenue Department

·         No Objection Certificate from Urban Local Body or Rural Local Body

·         No Objection Certificate from the Local Police

·         No Objection Certificate from the Traffic Police

·         No Objection Certificate from the Fire Services Department

·         No Objection Certificate from the Electricity authorities

·         No Objection Certificate from the Health Department

·         Certificate regarding fitness of the machinery in case of amusement rides

Event application details that shall be furnished when writing to Authorities are -

1)      Event / Venue details namely -

·         Event Location

·         Brief history of the event/venue

·         Duration of the event together with schedule and timing

·         Expected number of people

·         Admission arrangement like open to public / by invitation / with tickets etc

·         Details of activities and how / when / where they will take place

·         Event management structure i.e. key management personnel

·    Functions of key personnel namely event controller, safety officer, and health and sanitation in-charge

·        Event control and communications i.e. location of central control room, who will be there, and what means of communication will be used for reporting

·    Any particular arrangements for spectators with special needs or disability, pre-lunch ceremonies etc.

·         Overview of large equipment and temporary structures like staging, sanitary, facilities and lighting

·         Contact details of event organisers / administrators and venue owner

 

2)      Site Plan: The site plan must include maps showing location and details of:

·         Transportation hubs like bus-stops, railway stations, and taxi stands

·         Places of stay

·         Information kiosks

·         Places of interest at the venue / event

·         Meeting points

·         Entry or exit points at the venue / event

·         Meeting points

·         Holding areas, queue complexes, routes for movement

·         Watch towers at vantage locations for observing and monitoring the crowd.

·         CCTV coverage at all vulnerable locations to be monitored at the control room.

·  Sector wise deployment of policemen with sector wise responsibility and wireless communication network between watch towers, CCTV control room and deployment inside the crowd.

·         Police stations

·         Reporting places for lost / stolen / found items, missing persons etc.

·         Parking lots

·         Health facilities

·         Shopping areas

·         Food joints

·         Hazard points

·         Emergency exits

·         Emergency assembly points

·         First aid services

·         Emergency services like fire and ambulance

·         Emergency operations center and incident command posts

Summary:

Every event is an experience that is carefully designed to deliver an impact on the audience. With each passing day, the number of events being professionally managed is increasing. Thus, there is a growing need to regulate events and event companies. While we understand that laws, rules, regulations are created to protect people, to enforce rights and to solve conflicts; breaking them or not following them leads to a punishable offence.

Therefore, approvals, permissions, NOCs etc required will depend upon the type of event. Event organisers must visit the local authorities to determine the required permissions in the area for the event. When the event is to happen in an area or a premise that has a permanent approval for events then the number of approvals required by event organisers reduces. However, risk management and other matters outlined within these guidelines still need to be addressed.

Frequently Asked Questions (FAQs):

1. What do you understand by Law and Legislation?
2. List out the Laws related to Event Management?
3. Explain GST briefly
4. What is NOC and wherefrom they are obtained for organising an Event?
5. What do you understand by Civil Wrongs and Tortuous Liability?

 Model Answers to FAQs:

1. Legislation is a general term for laws that have been passed by a Parliament, State Legislatures or by people or bodies that have been given law-making powers by the parliament. It can also refer to the process of making new laws. Legislation is also known as Acts or Statutes. Legislation is one of the two main sources of law, along with case law, which is made up of court decisions. Legislation can have many purposes, such as regulating, authorizing, enabling, proscribing, providing funds, sanctioning, granting, declaring, or restricting. Society is governed by Laws, not People and even the Governments must follow the laws. The span of law is very wide; it governs almost every activity which happens in the society in one way or the other. Organising an event is no exception.

2. Several Acts come into play while planning and organising an Event. To name a few – (1) Transfer of Property Act (2) Indian Easement Act (3) Registration Act (4) Environment Protect Act (5) Forest Act (6) Electricity Regulation Act (7) Building Regulation Act (8) Fire Precautions Regulation Act (9) Goods and Services Act (10) Local Body Entertainment Act (11) Customs Duty Act (12) Occupational Safety, Health and Working Conditions Code (13) Law of Torts and Liability (14) Contract Act etc

3. The GST was introduced in India on 1st July 2017. With this, the entire tax legislation has undergone a paradigm shift. Former taxes levied by central and state government including - value added tax (VAT), service tax, excise duty, additional custom duty tax, state level entertainment tax, entry tax and surcharges have now got included into the GST legislation. However, customs duty collected by the Central Government on import of goods into India and entertainment tax levied by local bodies continue to remain outside the ambit of GST legislation and shall be applicable as separate levies, over and above GST. The GST bill has a four-tier structure, namely 5 per cent, 12 per cent, 18 per cent and 28 per cent.

4. The NOC i.e. No Objection Certificate is a written document obtained as approval from the local authority. In case of organising an event, the event organiser needs to obtain NOCs from different departments like -  Revenue Department, Urban Local Body, Rural Local Body, Local Police, Traffic Police, Fire Services Department, Electricity authorities, Health Department and Certificate regarding fitness of the machinery in case of amusement rides by Industries Department or Inspector of Factories or Inspector of Boilers. 

5. It is a fundamental legal principle which normally applies to all events, of taking reasonable care to avoid acts or omissions that could injure employees, contractors, users, participants and visitors. This is called the duty of care and is covered by the area of law known as ‘torts.’ The law of torts is a legal area that covers civil wrongs and injuries. If you commit a tort, you may be liable for damages, which can include monetary damages, pain and suffering, and emotional distress. Torts as we understand are a breach of duty owed to other people and imposed by law, and in this it differs from the duties arising from contracts, which are agreed between contracting parties. Unlike criminal law, which is concerned with punishment and deterrence, the law of torts is concerned with compensation.

Multiple Choice Questions (MCQs):

1. Legislation is a general term for _______ passed by law making bodies

a.       Regulations

b.      Rules

c.       Guidelines

d.      Laws

 

2. Transfer of Property Act 1882 deals with ______

a.       Sale

b.      Rent

c.       Lease

d.      Mortgage 

3. Soil pollution, Water pollution, Noise pollution, Air pollution are dealt by ___________

a.       Forest (Conservation) Act 19809

b.      Wildlife (Protection Act) 1972

c.       Environment (Protection Act) 1986

d.      Water (Prevention and Control of Pollution) Act, 1974

 

4. A GST bill bears a _______ tier structure.

a)      Four

b)      Six

c)      Five

d)      Three

 

5. NOC is a document obtained as _________ from the local authority.

1. Objection
2. Approval
3. Consent
4. Dissent

 

Key to MCQs: 1 (d), 2 (a), 3 (c) 4 (a), 5 (b)

Glossary:

Law: It provides a set of guidelines, standards or rule that shape the behaviour, ensure order and promote justice in a Society. Its synonyms are Regulation, Rule, Statute, Act, Ordinance, Decree, Principle and Code.

GST: Stands of Goods and Services Tax, which is a type of value-added tax imposed on goods and services. It is a comprehensive indirect tax levied on the manufacture, sale and consumption of goods and services

Sale: It is a transaction where a buyer purchases a product or service from a seller in exchange for money or other consideration.

Rent: It refers to the payment made by a tenant or lessee to a landlord or lessor for the use of a property, asset or service.

Lease: A contractual agreement between two parties, the lessor i.e. owner and the lessee i.e. user. Lessor grants the lessee the right to use an asset or property for a specified period in exchange for periodic payments.

Contract: A legally binding agreement between two or more parties that outlines the terms, conditions and obligations of their relationship.

Environment: Surroundings or conditions in which a person, animal or plant lives or operates. Natural environment comprise water, air, soil, minerals, forests, wildlife and climate

Pollution: Refers to the contamination of the environment through the introduction of harmful substances, energies or activities that can cause harm to living organisms, ecosystems and the natural environment.

Permission: Authorisation or consent given by someone with authority to allow another person or entity to perform a specific action, use a particular resource or access certain information.

NOC: No Objection Certificate, a document issued by an authority or organisation, stating that they have no objection to a particular action, proposal or activity

Key Words: Law, Legal, Legislation, Act, Rules, Regulations, Sale, Lease, Rent, Contract, Permissions, NOC, Tax, Tort, Environment, Pollution, Safety, Health

 

Y. BABJI

Editor, Public Relations Voice

Academic Counsellor, Public Relations (since 1989)

AP Open University/Dr BR Ambedkar Open University