Rule 74A - Transfer of Assets by Special Economic Zone Units upon their exit. - Special Economic Zones Rules, 2006

1 [ 74A.Transfer of Assets by Special Economic Zone Units upon their exit.- The Unit may opt out of Special Economic Zone by transferring its assets and liabilities to another person by way of transfer of ownership including sale of Special Economic Zone units subject to the following conditions:- (i) the Unit has held a valid Letter of Approval as well as lease of land 2 [ or Standard Design Factory ] for not less than a period of five years on the date of transfer; (ii) the unit has been operational for a minimum period of two years after the commencement of production as on the date of transfer ; (iii) such sale or transfer transactions shall be subject to the approval of the Approval Committee; (iv) the transferee fulfils all eligibility criteria applicable to a Unit; and (v) the applicable duties and liabilities, if any, as calculated under rule 74 , as well as export obligations of the transferor Unit, if any, shall stand transferred to the transferee Unit which shall be under obligation to discharge the same on the same terms and conditions as the transferor Unit.] ************** Notes: 1. Inserted vide Notification No. C.2/1/2013-SEZ-SEZ dated 12/08/2013 2 . Inserted vide Notification No. G.S.R. 909(E) dated 19-09-2018