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CS Executive · Economic, Commercial and Intellectual Property Laws · Law relating to Special Economic Zones

Aarav Infra Ltd. wants to set up a multi-product SEZ and a question arises as to who decides whether the proposal for establishing the SEZ is to be approved, rejected or modified. Under the SEZ Act, 2005, which authority holds this power?

The Board decides it. Under section 9(2)(a) of the SEZ Act, the Board may grant approval, reject or modify proposals for establishing Special Economic Zones. A Development Commissioner acts only on powers the Board delegates, so he cannot decide independently.

  1. AThe BoardCorrect
  2. BThe Development Commissioner acting alone, without any delegation
  3. CThe State Government through its Industries Department
  4. DThe Registrar of Companies

Explanation

Section 9(2)(a) lists granting approval, rejecting or modifying proposals for establishment of SEZs as a power and function of the Board. A Development Commissioner can exercise Board powers only if the Board delegates them under section 9(4). The ROC and the State Government are not given this power in the quoted text.

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