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

The Board is bound by written policy directions from the Central Government. A dispute arises when the Board claims that a particular direction does not concern a question of policy. Under section 9 of the SEZ Act, 2005, who decides whether the question is one of policy, and what is the effect?

The Central Government decides whether a question is one of policy, and its decision is final. Under section 9(5) the Board is bound by written policy directions, and section 9(6) makes the Central Government the final judge of what counts as policy.

  1. AThe Central Government decides, and its decision is finalCorrect
  2. BThe Board decides, and its decision is final
  3. CThe Development Commissioner decides, subject to appeal to the Board
  4. DBoth Houses of Parliament decide by joint resolution

Explanation

Section 9(5) binds the Board by written directions on questions of policy given by the Central Government. Section 9(6) says the Central Government's decision on whether a question is one of policy is final. The Board therefore cannot decide this for itself.

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