Ansal Projects seeks denotification of its Gurgaon SEZ

Ansal SEZ Projects has approached the government seeking to surrender its special economic zone in Gurgaon after the imposition of minimum alternate tax and global economic uncertainties. The request for denotification of the SEZ will be placed before the Board of Approval (BoA), which is scheduled to meet on May 22. The BoA, headed by commerce secretary Rahul Khullar, will also consider the requests of developers like Uttam Galva Steels, Mumbai SEZ Ltd and Mahindra and Mahindra which have sought more time to execute their projects. "The developer (Ansal) has requested for denotification of the (IT/ITeS) SEZ due to economic meltdown, lack of demand and imposition of minimum alternate tax (MAT) and dividend distribution tax (DDT)," the BoA agenda said. Another 10 developers have asked for more time for their projects, it said. Since December, 2008 to March 15 this year, the Board has approved 46 cases of de-notification. Earlier this month, the Parliamentary Standing Committee on Commerce has recommended the government to check such a trend of denotification which defeats the objective of higher industrialisation and exports. During the 2011-12 fiscal, exports from SEZs grew by 15 per cent year-on-year to Rs 3.6 lakh crore. The Committee also asked the Commerce Department to tighten the norms so that only genuine cases can get the approval.

source: http://www.realtyplusmag.com/rpnewsletter/Fullstory_Newsletter.asp?news_id=20293&cat_id=1