Authority
Section 31 of Special Economic Zone Act, 2005 (‘Act’ for short) provides for the establishment of Special Economic Zone Authority. (‘Authority’ for short). The Central Government made the ‘Special Economic Zone Authority Rules, 2009’ (‘Rules’ for short) which came into effect from 11th November, 2009.
Every Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with a power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue and be sued. The head office of every Authority shall be at such place as the Central Government may specify in the notification. Any Authority may, with the previous approval of the Central Government, establish branch offices at other places in India.
Constitution of Authority
Every Authority shall consist of –
- the Development Commissioner of the Special Economic Zone over which the Authority exercises its jurisdiction - Chairperson, ex officio;
- two officers of the Central Government to be nominated by that Government having knowledge of, or experience in, dealing with matters relating to Special Economic Zones - Members, ex officio
- an officer of the Government of India in the Ministry or Department dealing with Commerce on matters relating to Special Economic Zone - Member, ex officio;
- not more than two persons being entrepreneurs or their nominee, to be nominated by the Central Government - Members, ex officio;.
Vacancy of Entrepreneur member
Rule 5 provides that the vacancy of a member or their nominee shall be deemed to have occurred due to one or more of the following reasons, namely :-
- resignation from the Special Economic Zone Authority concerned;
- death of the member;
- the Unit represented by the member defaults in payment of dues to the Special Economic Zone Authority concerned;
- the member absents himself/herself in attending the proceedings of the Authority for three consecutive meetings;
- if any criminal proceeding is initiated against the Unit represented by such member either by the State or Central Government for violation of any law for time being in force;
- the Unit represented by such member is sick, closed or has not been exporting for more than six consecutive months; and
- Letter of Approval issued to the unit represented by the entrepreneur is cancelled by the Competent Authority for reasons of fraud, misrepresentation etc.
If any vacancy arises due to any of the reasons mentioned above, the Central Government may nominate another member against such vacancy for the remaining period of tenure.
Term of the office
The term of office of members of the Authority (other than ex-officio Members) shall be for a period of two years from date of their nomination and they shall not be eligible for re-nomination immediately after expiry of their term but can be nominated for a subsequent term..
Meeting of the Authority
There shall be not less than four ordinary meetings of the Authority in a Financial Year and the interval between any two ordinary meetings shall not, in any case, be longer than four calendar months. One third of the total Members of the Authority shall form a quorum, and all the acts of the Authority shall be decided by a majority of the Members present.
- It shall be mandatory for the Authority to meet in the month of march to review the physical and financial progress of the ongoing projects and finalise the annual accounts for next financial year.
- The Chairperson of the Authority shall cause to be issued a notice of the meeting of the Authority to all members fifteen days in advance of the proposed meeting indicating therein the time, date and place.
- The Chairperson, at any time, may call a special meeting of the Authority by giving two days prior notice.
- a special meeting of the Authority may also be convened, if at least two members of the Authority request the Chairperson in writing to convene such a meeting.
- The Chairperson may invite any officer of the Authority or any person to attend any meeting of the Authority for any specific Official purpose.such officer or person shall have no voting right.
- The Secretary shall issue notice of the meetings of the Authority, circulate the agenda, prepare and circulate minutes of the meetings and maintain records of the meetings of the Authority.
- The Secretary of the Authority shall be present in all the meetings of the Authority but shall have no voting rights.
- No business shall be transacted in the meeting of the Authority unless at least three members including the chairperson are present:
- The Chairperson shall preside at the meeting of the Authority.
- The venue for meetings of the Authority shall normally be the Office of the Authority, unless the Authority decides the venue at a place other than the head office of the Authority.
- The agenda for the meeting shall, be sent to the members of the Authority at least seven days in advance.
- All decisions of the Authority shall be taken by majority of the Members including Chairperson, present and voting and in the event of an equality of votes, the Chairperson shall have right of casting vote.
- A record shall be maintained by the Secretary of the Authority regarding items of business transacted by the Authority during its meetings which will be authenticated by the Secretary and the Chairperson.
- The compliance of the decision(s) taken in the previous meeting(s) of the Authority shall be taken for review and further direction, if any.
- The decisions taken during the meeting of the Authority shall be minuted and circulated within seven working days of the meeting to all members of the Authority for follow up action and compliance.
- Notwithstanding anything contained in this rules, the Central Government may, at any time, call a meeting of the Authority.
- The business, not included in the agenda shall not be transacted at the meeting without the permission of the Chairperson.
No act or proceeding of an Authority shall be invalidated merely by reason of-
- any vacancy in, or any defect in the constitution of, the Authority; or
- any defect in the appointment of a person acting as a Member of the Authority; or
- any irregularity in the procedure of the Authority not affecting the merits of the case.
Powers and functions of the Authority
It shall be the duty of each Authority to undertake such measures as it thinks fit for the development, operation and management of the Special Economic Zone for which it is constituted. The measures referred to therein may provide for –
- the development of infrastructure in the Special Economic Zone;
- promoting exports from the Special Economic Zone;
- reviewing the functioning and performance of the Special Economic Zone;
- levy user or service charges or fees or rent for the use of properties belonging to the Authority
- performing such other functions as may be prescribed.
Every Authority shall be bound to carry out such directions as may be issued to it from time to time by the Central Government for the efficient administration of this Act.
Rule 6 provides that the Authority shall-
- take all necessary measures for efficient management of the Zone and develop it as a financially viable organization;
- prepare its returns and statements before the commencement of each financial year;
- decide the terms and conditions and remuneration for engagement of a Chartered Accountant for maintenance and finalisation of its accounts;
- approve the audited statements of its accounts pertaining to a financial year before the 30th September of the following financial year; and
- have powers to raise resources in a manner consistent with provisions of the SEZ Act and Rules framed thereunder.
Returns and reports
Every Authority shall furnish to the Central Government at such time and in such form and manner as may be prescribed or as the Central Government may direct, such returns and statements and such particulars in regard to the promotion and development of exports and the operation and maintenance of the Special Economic Zone and Units as the Central Government may, from time to time, require. every Authority shall, as soon as possible, after the end of each financial year, submit to the Central Government a report in such form and before such date, as may be prescribed, giving a true and full account of its activities, policy and programmes during the previous financial year. A copy of every report received shall be laid, as soon as may be, after it is received, before each House of Parliament.
Power to supersede Authority
If at any time the Central Government is of the opinion that an Authority is unable to perform, or has persistently made default in the performance of, the duty imposed on it by or under this Act or has exceeded or abused its powers, or has wilfully or without sufficient cause, failed to comply with any direction issued by the Central Government under section 38, the Central Government may, by notification, supersede that Authority for such period not exceeding six months, as may be specified in the notification:
Before issuing a notification under this subsection, the Central Government shall give reasonable time to that Authority to make representation against the proposed supersession and shall consider the representations, if any, of the Authority.
Upon the publication of a notification superseding the Authority, -
- the Chairperson and other Members of the Authority shall, notwithstanding that their term of office has not expired as from the date of supersession, vacate their offices as such;
- all the powers, functions and duties which may, by or under the provisions of this Act, be exercised or discharged by or on behalf of the Authority shall, during the period of supersession, be exercised and performed by such person or persons as the Central Government may direct;
- all property vested in the Authority shall, during the period of supersession, vest in the Central Government.
On the expiration of the period of supersession specified in the notification issued the Central Government may –
- extend the period of supersession for such further period not exceeding six months; or
- reconstitute the Authority in the manner provided in section 31.
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