Govt considering de-notification rules for SEZs

NEW DELHI: The government is looking into formulating new rules for de-notification of special economic zones in the wake of several developers, including realty major DLF, approaching the Commerce Ministry for surrendering their tax-free enclaves.

"The Department of Commerce will.... propose suitable provisions in the Act/Rules for denotifying SEZ," a source said.

The Department of Revenue told the Board of Approval, which took up the request of DLF for de-notification of its four SEZs, that "there is no such provision in SEZ scheme for de-notification of SEZ even if the developer has undertaken to pay back of duty benefit taken and that Board may like to decide the issue accordingly," a source said.

However, the Ministry of Law opined that though there is no specific provision in the SEZ Act and Rules, the power to notify includes power to de-notify also, sources said.

Industry experts said that the SEZs which are finding it difficult to continue should be allowed to quit.

As there are no specific provisions for de-notifying SEZs in the SEZ Act 2005, so suitable provisions should be made, sources added.