Cabinet Approves Promulgation of An Ordinance For Amendment To The Special Economic Zones Act, 2005.
The Union Cabinet as on 28th of Feb 2019 has approved promulgation of an Ordinance to amend the definition of “person”, as defined in sub-section (v) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005), the main purpose of amending the existing definition of “Person” is to include a trust. It would enable the trust in setting up of a unit in a Special Economic Zone, as also to provide flexibility to the Central Government to include in this definition of a person, any entity that the Central Government may notify from time to time.
Existing Definition of “Person” Under the SEZs ACT, 2005[1]:
“person” includes an individual, whether resident in India or outside India, a Hindu undivided family, co-operative society, a company, whether incorporated in India or outside India, a firm, proprietary concern, or an association of persons or body of individuals, whether incorporated or not, local authority and any agency, office or branch owned or controlled by such individual, Hindu undivided family, co-operative, association, body, authority or company.
The present provision of the SEZs Act, 2005 do not permit ‘trusts’ to set up units in SEZs. The amendment will enable a trust to be considered for grant of permission to set up a unit in SEZs. The amendment will also provide flexibility to the Central Government to include in this definition of a person, any entity that the Central Government may notify from time to time. This will facilitate investments in Special Economic Zones.
[1] Sub-section (v) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005) (India).
