Sections Particulars
1 Preamble
An Act to provide for the establishment, development and management of the Special Economic Zones for the promotion of exports and for matters connected there...
Chapter I Preliminary
1 Short title, extent and commencement
1.     This Act may be called the Special Economic Zones Act, 2005.2.     It extends to the whole of India.3.     It shall come into force on such date as...
2 Definitions
In this Act, unless the context otherwise requires,-1.     "appointed day" with reference to a Special Economic Zone means the date on which the Special Eco...
Chapter II Establishment of Special Economic Zone
3 Procedure for making proposal to establish Special Economic Zone
1.     A Special Economic Zone may be established under this Act, either jointly or severally by the Central Government, State Government, or any person for ...
4 Establishment of Special Economic Zone and approval and authorisation to operate it to, Developer
1.     The Developer shall, after the grant of letter of approval under sub-section (10) of Section 3, submit the exact particulars of the identified area re...
5 Guidelines for notifying Special Economic Zone
The Central Government, while notifying any area as a Special Economic Zone or an additional area to be included in the Special Economic Zone and discharging ...
6 Processing and non-processing areas
The areas falling within the Special Economic Zones may be demarcated by the Central Government or any authority specified by it as-a.     the processing ar...
7 Exemption from taxes, duties or cess
Any goods or services exported out of, or imported into, or procured from the Domestic Tariff Area by,-      i.        a Unit in a Special Economic Zone; or...
Chapter III Constitution of Board of Approval
8 Constitution of Board of Approval
1.     The Central Government shall, within fifteen days of the commencement of this Act, by notification, constitute, for the purposes of this Act, a Board ...
9 Duties, powers and functions of Board
1.     Subject to the provisions of this Act, the Board shall have the duty to promote and ensure orderly development of the Special Economic Zones.2.     W...
10 Suspension of letter of approval and transfer of Special Economic Zone in certain cases
1.     If, at any time, the Board is of the opinion that a Developer-a.     is unable to discharge the functions or perform the duties imposed on him by or ...
Chapter IV Development Commissioner
11 Development Commissioner
1.     The Central Government may appoint any of its officers not below the rank of Deputy Secretary to the Government of India as the Development Commission...
12 Functions of Development Commissioner
1.     Every Development Commissioner shall take all steps in order to discharge his functions under this Act to ensure speedy development of the Special Eco...
Chapter V Single Window Clearance
13 Constitution of Approval Committee
1.     The Central Government shall,-a.     in the case of existing Special Economic Zones, within six months from the date of commencement of this Act;b. ...
14 Powers and functions of Approval Committee
1.     Every Approval Committee may discharge the functions and exercise the powers in respect of the following matters, namely:-a.     approve the import ...
15 Setting up of Unit
1.     Any person, who intends to set up a Unit for carrying on the authorised operations in a Special Economic Zone, may submit a proposal to the Developmen...
16 Cancellation of letter of approval to entrepreneur
1.     The Approval Committee may, at any time, if it has any reason or cause to believe that the entrepreneur has persistently contravened any of the terms ...
17 Setting up and operation of Offshore Banking Unit
1.     An application for setting up and operation of an Offshore Banking Unit in a Special Economic Zone may be made to the Reserve Bank in such form and ma...
18 Setting up of International Financial Services Centre
1.     The Central Government may approve the setting up of an International Financial Services Centre in a Special Economic Zone and prescribe the requireme...
19 Single application form, return etc
Notwithstanding anything contained in any other law for the time being in force, the Central Government may, if required,-a.     prescribe a single applicat...
20 Agency to inspect
Notwithstanding anything contained in any other law for the time being in force, the Central Government may, by notification, specify any officer or agency to...
21 Single enforcement officer or agency for notified offences
1.     The Central Government may, by notification, specify any act or omission made punishable under any Central Act, as notified offence for the purposes o...
22 Investigation, inspection, search or seizure
The agency or officer, specified under Section 20 or Section 21, may, with prior intimation to the Development Commissioner concerned, carry out the investiga...
23 Designated Courts to try suits and notified offences
1.     The State Government, in which the Special Economic Zone is situated, may, with the concurrence of the Chief Justice of the High Court of that State, ...
24 Appeal to High Court
Any person aggrieved, by any decision or order of the court designated under sub-section (1) of Section 23, may file an appeal to the High Court within sixty ...
25 Offences by companies
1.     Where an offence has been committed by a company, every person, who at the time the offence was committed was in charge of, and was responsible to, th...
Chapter VI Special Fiscal Provisions for Special Economic Zones
26 Exemptions, drawbacks and concessions to every Developer and entrepreneur
1.     Subject to the provisions of sub-section (2), every Developer and the entrepreneur shall be entitled to the following exemptions, drawbacks and conces...
27 Provisions of Income Tax Act, 1961 to apply with certain modification in relation to Developers and entrepreneurs
The provisions of the Income Tax Act, 1961 (43 of 1961), as in force for the time being, shall apply to, or in relation to, the Developer or entrepreneur for ...
28 Duration of goods or services in Special Economic Zones
The Central Government may prescribe the period during which any goods brought into, or services provided in, any Unit or Special Economic Zone without paymen...
29 Transfer of ownership and removal of goods
The transfer of ownership in any goods brought into, or produced or manufactured in, any Unit or Special Economic Zone or removal thereof from such Unit or Zo...
30 Domestic clearance by Units
Subject to the conditions specified in the rules made by the Central Government in this behalf,-a.     any goods removed from a Special Economic Zone to the ...
Chapter VII Special Economic Zone Authority
31 Constitution of Authority
1.     The Central Government shall, by notification in the Official Gazette, constitute, for every Special Economic Zone established by it before the commen...
32 Officers of Authority and other staff
1.     Every Development Commissioner of the Special Economic Zone, for which he is appointed as such, shall be the Chief Executive of the Authority concerne...
33 Special provision for transfer of officers or other employees to Authority
1.     It shall be lawful for the Central Government to transfer to each Authority, by order, and with effect from such date or dates, as may be specified in...
34 Functions of Authority
1.     Subject to the provisions of this Act, it shall be the duty of each Authority to undertake such measures as it thinks fit for the development, operati...
35 Grants and loans by Central Government
The Central Government may, after due appropriation made by Parliament by law in this behalf, make to every Authority by way of grants and loans or such sums ...
36 Constitution of Fund and its application
1.     There shall be established by everyAuthority a fund to be called the .......................... (the name of the Special Economic Zone concerned) Aut...
37 Accounts and audit
1.     Every Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts in such form as may be prescribe...
38 Directions by Central Government
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 administratio...
39 Returns and reports
1.     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...
40 Power to supersede Authority
1.     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...
41 Members, officers and other employees of Authority to be public servants
All Members, officers and other employees of every Authority, shall, when acting or purporting to act in pursuance of any of the provisions of this Act or the...
Chapter VIII Miscellaneous
42 Reference of dispute
1.     Notwithstanding anything contained in any other law for the time being in force, if-a.     any dispute of civil nature arises among two or more entre...
43 Limitation
1.     The period of limitation in the case of any dispute which is required to be referred to arbitration shall be regulated by the provisions of the Limita...
44 Applicability of provisions of this Act to existing Special Economic Zones
All the provisions of this Act (except Sections 3 and 4) shall, as far as may be, apply to every existing Special Economic Zone....
45 Person to whom a communication may be sent under this Act
A communication by any competent authority or person under this Act may be sent to the person who has the ultimate control over the affairs of the Special Eco...
46 Identity Card
Every person, whether employed or residing or required to be present in a Special Economic Zone, shall be provided an identity card by every Development Commi...
47 Authorities responsible for administration
Any authority which has been conferred upon any power, or, is, required to discharge any function under any Central or State Act, may, subject to the provisio...
48 Protection of action taken in good faith
No suit, prosecution or other legal proceeding shall lie against the Central Government or any Chairperson, Member, officer or other employee of the Board or ...
49 Power to modify provisions of this Act or other enactments in relation to Special Economic Zones
1.     The Central Government may, by notification, direct that any of the provision of this Act (other than Sections 54 to 56) or any other Central Act or a...
50 Power of State Government to grant exemption
The State Government may, for the purposes of giving effect to the provisions of this Act, notify policies for Developers and Units and take suitable steps fo...
51 Act to have overriding effect
The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force or in any ...
52 Certain provisions not to apply
1.     The provisions contained in the Chapter X-A of the Customs Act, 1962 (52 of 1962) and the Special Economic Zones Rules, 2003 and the Special Economic ...
53 Special Economic Zones to be ports, airports, inland container depots, land stations, etc., in certain cases
1.     A Special Economic Zone shall, on and from the appointed day, be deemed to be a territory outside the customs territory of India for the purposes of ...
54 Amendment to First Schedule
1.     The Central Government may, having regard to the objects of this Act, and if it considers necessary or expedient so to do, by notification add to, or ...
55 Power to make rules
1.     The Central Government may, by notification, make rules for carrying out the provisions of this Act.2.     In particular, and without prejudice to t...
56 Power to remove difficulties
1.     If any difficulty arises in giving effect to the provisions of this Act, the Central Government may, by order published in the Official Gazette, make ...
57 Amendment of certain enactments
With effect from such date as the Central Government may, by notification, appoint, the enactments specified in the Third Schedule shall be amended in the man...
58 Savings
All rules made or purporting to have been made or all notifications issued or purporting to have been issued under any Central Act relating to the Special Eco...
The Schedules Schedules
The First Schedule
THE FIRST SCHEDULE(See Sections 7 and 54)Enactments1.     The Agricultural Produce Cess Act, 1940 (27 of 1940)2.     The Coffee Act, 1942 (7 of 1942)3.    ...
The Second Schedule
THE SECOND SCHEDULE(See Section 27)Modifications to the Income Tax Act, 1961 (43 of 1961)a.     in Section 10,-              i.        in clause (15), aft...
The Third Schedule
THE THIRD SCHEDULE(See Section 57)Amendment to Certain EnactmentsPART IAmendments to the Insurance Act, 1938 (4 of 1938)1.     In Section 2-C, in sub-sectio...
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