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

Meridian Infra Pvt Ltd wants to set up an SEZ and seeks a decision on the proposal and on the authorised operations it may carry out as Developer. Under the SEZ Act, 2005, which body has the power to grant approval, reject or modify the proposal for establishing an SEZ and to approve authorised operations by the Developer?

The Board is empowered under the SEZ Act, 2005 to grant, reject or modify proposals for establishing SEZs and to approve the authorised operations a Developer may carry out. Development Commissioners act only on powers the Board delegates, and customs authorities have no such role.

  1. AThe BoardCorrect
  2. BThe Administrator appointed after suspension of a letter of approval
  3. CThe Development Commissioner acting independently of the Board
  4. DThe Customs authorities at the nearest port

Explanation

Section 9(2)(a) and (b) give the Board power to approve, reject or modify proposals for establishing SEZs and to approve authorised operations by the Developer. A Development Commissioner can only exercise powers the Board delegates under section 9(4). An Administrator is appointed only after suspension of a letter of approval, so he does not decide fresh proposals.

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