No SEZ searches without DC nod: Commerce Min

Restoring the supremacy of the development commissioner, the Commerce Ministry today said any other enforcement agency of the government needs the DC's approval for inspection, search or seizure in a SEZ.

The Department of Commerce has "withdrawn" its earlier instructions given on January 13 which, it found, were perceived contrary to the spirit of the SEZ Act.

In the January 13 instructions to the Chief Commissioners of Customs, Excise and Chief Secretaries of all states, the Commerce Ministry had diluted the powers of the DCs.

This led to confusion whether different agencies of the central and state governments can carry out search, inspections, seizures or investigations in a special economic zone (SEZ).
    
However, the Commerce Ministry has now cleared the air, stating that no such inspection or search can take place without the approval of the development commissioner in the zone.
    
Meanwhile, the highest rule-making body on SEZs, the Board of Approval, is scheduled to meet on June 8 to take up fresh SEZ applications and resolve several operational issues faced by promoters.
    
About 575 SEZ have been given formal approvals, of which 105 are operational. Exports from the zones were valued at Rs 2.20 lakh crore in 2009-10.