Office of Zonal Development Commissioner and the Unit Approval Committee cracks its whips against violators
The Unit Approval Committee (UAC) has been constituted for each notified Special Economic Zone to exercise powers and discharge responsibilities as per Section 14(1) of the SEZ Act, 2005, along with other provisions of the SEZ Act, 2005, and the SEZ Rules, 2006.
In accordance with the above, decisions were made by the UAC during meetings held on 4th November 2024 and 18th November 2024 to cancel the Letter of Approval issued to two units which had engaged in repeated and egregious violations of provisions of the SEZ Act, 2005, Customs Act and FTDR Act. The decision was taken following due process of issuing Show Cause Notices, conducting a personal hearing by the Zonal Development Commissioner and by unanimous decision of the Unit Approval Committee.
Decision of the UAC meeting held on 04th November, 2024
M/s. Zone Master India Private Limited, a unit in the J Matadee Free Trade Warehouse Zone (FTWZ), Sriperumbudur (hereinafter referred to as ‘the Unit’), was issued a Letter of Approval (LoA) on 5th February 2020 for setting up operations within the FTWZ. The Unit commenced its Date of Commercial Production (DCP) on 18th May 2020.
The Unit was found to have persistently violated provisions of the SEZ Act, 2005, and the Customs Act, and breached payment obligations under its Sub-Lease Deed. Following this, the Co-Developer have cancelled the lease deed of the premises entered between them and requested the Development Commissioner to cancel the LoA of the Unit.
A Show Cause Notice (SCN) dated 31st July 2024 was issued to the Unit for misuse of the
Importer Exporter Code (IEC) involving Domestic Tariff Area (DTA) transactions. The Unit was called upon to explain why its LoA should not be cancelled under Section 16(1) of the
SEZ Act, 2005, and the Customs Act.
After giving reasonable opportunity to the Unit the matter was adjudicated by the Development Commissioner and passed an Order on 22nd October 2024, concluding that the Unit had persistently contravened applicable laws, including provisions of the Customs Act, and breached its agreement with the Co-Developer. The Development Commissioner recommended the cancellation of the Unit’s LoA, and the matter was placed before the UAC
during its meeting on 4th November 2024.
After deliberations, the UAC decided to cancel the LoA issued to M/s. Zone Master India Private Limited. Accordingly, the LoA issued to the Unit on 5th February 2020 stands cancelled.
Decision of the UAC meeting held on 18th November, 2024
M/s. VJP Shipping India Private Limited, a unit in the NDR Infrastructure Free Trade Warehouse Zone (FTWZ), Ponneri (hereinafter referred to as ‘the Unit’), was issued a Letter of Approval (LoA) on 3rd May 2021 for setting up operations within the FTWZ. The Unit commenced its Date of Commercial Production (DCP) on 28th May 2021.
An SCN dated 8th August 2024 was issued to M/s. VJP Shipping India Private Limited for persistent contraventions of the Customs Act concerning transactions conducted as a Customs Broker. These actions included irregular activities by the FTWZ Units, violating provisions of the SEZ Act, 2005.
After giving reasonable opportunity to the Unit, the matter was adjudicated by the Development Commissioner and passed an Order on 11th November 2024, concluding that the Unit had violated provisions of the FTDR Act, 1992, the Customs Act, 1962, and the SEZ Act, 2005. A penalty of ₹10,000 was imposed under Section 11(2) read with Section 13 of the FTDR Act, 1992. The Development Commissioner recommended cancellation of the LoA issued to the Unit.
The proposal for cancellation of the LoA was placed before the UAC during its meeting on 18
th November 2024. After detailed deliberations, the UAC decided to cancel the LoA issued to M/s. VJP Shipping India Private Limited. Accordingly, the LoA issued to the Unit on 3rd May 2021 stands cancelled.
