The Hindu Business Line : GIDC issues notices to SEZ promoters

Mumbai, June 17 The Goa Industrial Development Corporation has issued show-cause notices on Monday to promoters of seven special economic zones as to why the land allotment to them should not be revoked and the lease amount refunded.

The corporation’s board on Friday decided to revoke the land allocation and the intent to revoke was faxed to the developers.

The issue relates to seven SEZs — three notified and three not notified, as well as to one that has not been approved,

Mr A.V. Palekar, Managing Director, Goa Industrial Development Corporation, told Business Line that the showcause notice followed the corporation’s direction for strict legal adherence to the matter and consequently the notices were sent by registered post to the developers seeking their reply within seven days of physical receipt of the notice.

Asked whether the developers could look forward to compensation for the expenses they had incurred in the process of establishing their facilities, he said no claim has been made and the issue was be subject to examination if put forward.

On the consequences, especially investor confidence, in the light of withdrawal of assent, he said the board’s decision was being carried out.

Stop-work orders

On June 4, the Goa Government got two weeks’ time from a Division Bench of the Bombay High Court to decide on its stop-work orders issued to three developers of the SEZs. Sources said the State’s reply was scheduled for June 17, but it had sought more time.

The developers of the notified SEZs — Meditab Speciality, a subsidiary of the Cipla Group, K. Raheja Corporation and Peninsula Pharma Research Centre, had challenged the Government’s stop-work orders.

Last December, the Goa Government scrapped the SEZ projects following public opposition and served stop-work orders on the developers a month later.

It also asked the Centre to de-notify three SEZs and cancel the approvals accorded to the others.