Sunday, November 21, 2010

MIHAN-FIRST CITY SCAM-Commerce Ministry removes all ambiguity: Housing within SEZ only for employees -Hitavada

By Manish Soni
After receiving several complaints about misuse of subsidised land within SEZ area by housing projects, the Centre has removed all ambiguity and has ruled that housing units within SEZ could be utilised only by persons directly connected with SEZ establishments and SEZ employees.
The Union Commerce Ministry (SEZ Division), in its latest guidelines for development of Special Economic Zones issued on October 27, 2010, has stipulated clearly that housing facilities created in non-processing area could be used only by "persons who are working for establishments relating to SEZ developers, units and or are users of infrastructure facilities created in the SEZ."
The guidelines signed by G Muthuraja, Under Secretary, Ministry of Commerce, have directed all developers of SEZs to ensure that "Developer should rent out these houses to the employees of units. The units could take these houses on long-term lease for renting out to their employees. In case a unit, having houses on long lease closes down, these can be transferred to other working units or the developer."
In fact, the Board of Approvals (BoA), the apex decision making body for SEZ, had consistently maintained that no developer or co-developer can sell the land or residential dwelling and extended this principle to First City coming up at MIHAN-SEZ promoted by Maharashtra Airports Development Company (MADC).
The Developer shall not sell the land in a Special Economic Zone," this is the mandatory provision of Special Economic Zone (SEZ) Act and rules framed thereunder. Therefore, the BoA in its meeting held on July 13, 2010 had directed the MADC to remove the "condition of sale" from the agreement between developer (MADC) and co-developer (M/s Reatox Builders) as well as from the Power of Attorney granted by MADC to M/s Reatox Builders which is coming with First City in MIHAN-SEZ. The Department of Revenue had consistently objected to open sale of housing units by developers and demanded that the condition of sale must be removed from agreement between developer and co-developer, as well as from power of attorney granted by MADC.

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