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

Kaveri Exports, a unit in a SEZ, learns that the Central Government is considering a Section 49 notification relaxing laws for SEZs. Which subject matter is placed beyond the reach of such modification by the proviso to Section 49(1)?

Welfare of labour, including conditions of work and provident funds, cannot be modified under Section 49. The proviso protects matters such as trade unions, industrial and labour disputes, employers' liability, workmen's compensation, pensions and maternity benefits, so labour protections continue to apply in SEZs.

  1. AWelfare of labour including conditions of work and provident fundsCorrect
  2. BCustoms duties on imported goods
  3. CRules on import licensing
  4. DProcedures under the SEZ Act relating to approvals of Units

Explanation

The proviso to Section 49(1) says the section does not apply to modifications relating to trade unions, industrial and labour disputes, welfare of labour including conditions of work, provident funds, employers' liability, workmen's compensation, pensions and maternity benefits. The other options are not protected by the proviso.

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