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

The Central Government proposes a Section 49 notification to direct that Sections 54 to 56 of the SEZ Act shall not apply to a particular SEZ. What is the legal position?

This is not permissible. Section 49(1) lets the Central Government disapply or modify provisions of the SEZ Act only other than sections 54 to 56, so those sections are outside the power regardless of State consent or whether the zone is existing.

  1. ANot permissible, because Section 49(1) excludes sections 54 to 56 from its powerCorrect
  2. BPermissible, because the Central Government may disapply any section of the Act
  3. CPermissible only if the State Government consents
  4. DPermissible only for existing Special Economic Zones under Section 44

Explanation

Section 49(1) permits modification of provisions of the Act 'other than sections 54 to 56'. Hence the power cannot be used for those sections. Consent of the State or existing-zone status is irrelevant.

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