| This, it said, contradicted the RBI's own Annual Report released just 20 days before the order, which had said that SEZs would lead to massive investments and improvement in infrastructure. |
| Questioning the equating of SEZs with real estate, the ministry, in a letter to the central bank last week, asked it to share with it any instance where "SEZ development has taken place only as real estate activity." |
| The ministry said it was surprised that even the acquisition of SEZ units had been treated as real estate activity by the central bank. |
| "The SEZ Act 2005 and SEZ Rules 2006 prohibit any sale of land in an SEZ. A person intending to set up a unit in an SEZ has to get the approval of the Approval Committee headed by the development commissioner for SEZs, and only then they can get land on lease. Even when a unit wants to move out of the SEZ, permission from the same committee is needed. As such, there cannot be any acquisition of units in the SEZ," the ministry said. |
| Quoting the RBI's Annual Report released on August 30, the ministry said the central bank had said the "SEZ Act, 2005, which came into force on February 10, 2006, is expected to facilitate a large flow of foreign and domestic investment to SEZs, and contribute to improvements in infrastructure and productive capacity, generation of additional economic activity and creation of employment opportunities." |
| The ministry went on to add, "However, the circular within the just 20 days reflects a complete reversal of stand by the RBI," the ministry said. |
| It further pointed out that the SEZ Act had laid down clear-cut guidelines to be followed by the Centre while notifying SEZs. |
| These included generation of additional economic activity, promotion of exports of goods and services, promotion of investment from domestic and foreign sources, development of infrastructure facilities and creation of employment opportunities. |
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