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TMI Blog2018 (5) TMI 1896X X X X Extracts X X X X X X X X Extracts X X X X ..... Policy dated 15th May 1996 for manufacturing of all types of plastic bags-Garbage collection/carry/shopping bags, etc., and subsequently, on a request having been made by the petitioner-unit, the said LoA was also amended/broad banded to include recycling activity of worn and used clothing on 27th September 2001, after conversion of the said Free Trade Zone [FTZ] into SEZ unit with effect from 1st November 2000 and thereafter, their five-year block period was recasted from 1st November 2000 to 31st October 2005. Rule 18 of the SEZ Rules, 2006 empowers the Board of Approval which is an inter-ministerial body constituted under section 8 of the SEZ Act to decide extension of validity of LoA granted to such units. The petitioner s case requires reconsideration by the authority particularly to examine the similarity with other existing units which according to the petitioners were granted renewal despite being non operational for extended period - Petition allowed by way of remand. - R/Special Civil Application No. 19048 of 2017 - - - Dated:- 8-5-2018 - Mr. Akil Kureshi and Mr. B.N. Karia , JJ. Mr Paritosh Gupta with Mr Paresh M Dave, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the petitioner to function within the SEZ for manufacture of plastic bags, etc., out of the plastic waste/scrap. Subsequently, the said LOA was amended from time to time, permitting the petitionerfirm to manufacture reprocessed plastic agglomerates out of the waste and scrap and for recycling/reconditioning of the old and used clothes. The said LOA was subsequently divided into two separate permissions for both the aforesaid nature of works. Thus, upto 2005-2006, the petitioner-firm was extensively involved in both the business of recyclinzg of plastic waste/scrap as well as in the production of textile products from the use clothes. However, by a communication dated 15th December 2005, the petitionerfirm was put to notice that respondent-Ministry would conduct a detailed examination of the Unit and thereafter, functioning of plastic recycling would be allowed for a short term. Thus, subject to inspection of the petitioner-firm s unit, the respondent issued LOA for shorter periods intermittently between 2005-2006 and 2011-2012. Resultantly, it became difficult for the petitioner-firm to continue business in the normal course. However, on 17th September 2013, a policy regarding f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed renewal and extension. Counsel for the petitioner pointed out that the petitioner s unit has been discriminated against without there being any rationale for the same. Counsel further pointed out that such unreasonable order of rejection would prejudicially affect the employment of workers engaged in the petitioner s plastic unit. Not only that, counsel for the petitioner added that the huge amount invested by the partners of the petitioner-firm in the form of machinery, factory building, etc., would also go in waste. In light of these facts, counsel for the petitioner-firm urged that the petitioners are legally eligible and entitled to carry on with the business of plastic reprocessing, as has been permitted to other Units. Lastly, counsel for the petitioner-firm urged this Court to quash and set-aside action of the respondent no. 2 in rejecting the proposal for extension/renewal; as recorded at Item No. 78.5 [ii] of the minutes of meeting held on 3rd July 2017 conveyed under a covering letter dated 14th July 2017 alongwith all consequential benefits. Per contra, learned advocate Shri Nikunt Raval appearing on behalf of the respondents took us th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operations; even in the renewal period granted in piece meal basis, ranging from one month to twelve months, from time to time. Thus, after finalization of guidelines for regulating the activities of both plastic recycling and used clothing SEZ Units, the request for extension of all such Units came to be considered by BoA in its meeting on 8th November 2013, however, as the request for extension of LoA was moved late by the petitioner-firm, the same could not fall within zone of consideration and subsequently, in a meeting of Board of Approval [ BoA for short] held on 26th December 2013, the LoA was decided to be withdrawn as the Development Commissioner had not recommended the proposal for an obvious reason that the petitioner s Unit was inactive for a substantial period during their previous seven years of validity till 2012. Finally, according to the learned counsel for the respondents, the proposal for renewal of LoA of the petitioner s unit came to be rejected by BoA in its meeting held on 3rd July 2017. Counsel for the respondents added that though there is no specific reason assigned for rejecting the proposal by the BoA, however, it cannot be ruled out th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tension/renewal was granted, which was otherwise lying defunct and dormant, as per the say of the petitioner. This aspect requires closer scrutiny by the respondent-authority. It is undisputed that the case of the petitioners was not taken up despite there being a recommendation by the respondent no. 3, the petitioner from time to time addressed various letters and e-mails to the respondents no. 2 3 for taking up petitioner s case for renewal. Despite recommendation by the respondent no. 3 and though according to the petitioner, the case was similar to the case of other SEZ units, its unit was not granted renewal. Surprisingly, the respondent no. 2 during the said meeting held on 3rd July 2017 rejected the proposal of the petitioner without assigning any reasons. Admittedly, the petitioner was granted Letter of Permission [LoP] under the erstwhile Import-Export Policy dated 15th May 1996 for manufacturing of all types of plastic bags-Garbage collection/carry/shopping bags, etc., and subsequently, on a request having been made by the petitioner-unit, the said LoA was also amended/broad banded to include recycling activity of worn and used clothing on 27th September 2001, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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