Cost Recovery of the posts in newly notified SEZs under the SEZ Act, 2005-regarding. - SEZ - F. No. A-1/3/2008-SEZ

F. No. A-1/3/2008-SEZ Government of India Department of Commerce Udyog Bhawan, New Delhi, Dated: 16 th September. 2010 To All Zonal Development Commissioners Subject: Cost Recovery of the posts in newly notified SEZs under the SEZ Act, 2005- regarding. A number of Zones have been notified under the Special Economic Zone Act, 2005 and others are at various stages of approval. Each of these zones have been approved with a standard staffing pattern depending on the class that they belong to. These zones have been established at the request of the developers who operate them as business entities It is obligatory on the part of developers to bear the cost of such posts. References are received in the Department of Commerce seeking clarification regarding the quantum and the modalities for such cost recovery. Accordingly, in supersession of all previous instructions, the following guidelines are being prescribed in this regard:- 2 (i). As per DOP T O.M. No. 6/8/2009-Estt. Pay II dated 17.6.2010, all expenses towards pay and allowances like TA, DA, HRA, Medical Expenses. LTC, Leave Encashment. Leave Salary Contribution, Pension Contribution (in case of employees covered under New Pension Scheme). Children Education Allowance, travel both domestic and foreign etc. shall be borne by the developers as per actuals in the applicable pay-band and the grade pay. (ii) It must also he ensured that the GPF contribution of the official is regularly credited to his GPF Account. (iii) Furnished office accommodation with required facilities, local transport, phone facility (Office) (Residence) and mobile phone with handset as per the entitlement prescribed by the Central Government for the officer of equivalent level shall be provided by the Developers. (iv). Actual date of joining the zone and reporting to the Department of Commerce/Development Commissioner having jurisdiction over the zone shall determine the commencement of liability on the part of the developer for recovery of costs. (v) Failure on the part of developer to make timely payments shall result in withdrawal of officers till the payments are effected and recovery will be effected subsequently with interest. 3(i) The Development Commissioner shall, upon the reporting of any of the officers compute the tentative recovery to be effected against each officer for the half year or any part thereof and intimate to the developer who shall remit the same under Challan to the account opened and operated by Zonal DC within fifteen days of the demand. The concerned DC may raise a demand to the respective Zonal DC, who will then release the funds. (ii) For each half year thereafter of the financial year, demands shall be made by the fifteenth day of the last month of the financial year and payment is to be made before the commencement of the half year for which demand is issued. Delay in payment may entail a penal interest of 12% (iii) The calculation for both the half years shall include an adjustment for changes in dearness allowance as well as enhancement of pay in the pay-band for each officer (iv) The calculation for the half year of each financial year shall include a final computation of the actual financial outflow on the part of the Central Government against each post for the previous financial year and appropriate adjustments/ recoveries included in the demand for the following half year. (v) Developers of Zones where such officers have not been posted but whose services have been made available on ad hoc basis by the Development Commissioner of the concerned zone, shall share the costs in a proportionate manner without recourse to the Zonal Development Commissioner or Department of Commerce. (vi) Each Development Commissioner shall maintain detailed records of occupancy of posts, recoveries tentatively affected for each half year and final adjustments made for appropriate control and auditing. (vii) The audit of the accounts will be done as per the existing procedure for the zones. Yours faithfully, (T. Srinidhi) Joint Secretary