42. Reference of dispute.—(1) Notwithstanding anything contained in any other law for the time
being in force, if—
(a) any dispute of civil nature arises among two or more entrepreneurs or two or more Developers
or between an entrepreneur and a Developer in the Special Economic Zone; and
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(b) the court or the courts to try suits in respect of such dispute had not been designated under
sub-section (1) of section 23,
such dispute shall be referred to arbitration:
Provided that no dispute shall be referred to the arbitration on or after the date of the designation
of the court or courts under sub-section (1) of section 23.
(2) Where a dispute has been referred to arbitration under sub-section (1), the same shall be settled or
decided by the arbitrator to be appointed by the Central Government.
(3) Save as otherwise provided under this Act, the provisions of the Arbitration and Conciliation Act,
1996 (26 of 1996) shall apply to all arbitration under this Act as if the proceedings for arbitration were
referred in settlement or decision under the provisions of the Arbitration and Conciliation Act, 1996.
43. Limitation.—(1) The period of limitation in the case of any dispute which is required to be
referred to arbitration shall be regulated by the provisions of the Limitation Act, 1963 (36 of 1963), as if
the dispute was a suit and the arbitrator is civil court.
(2) Notwithstanding anything contained in sub-section (1), the arbitrator may admit a dispute after the
expiry of the period of limitation, if the applicant satisfies the arbitrator that he had sufficient cause for
not referring the dispute within such period.
44. Applicability of provisions of this Act to existing Special Economic Zones.—All the
provisions of this Act (except sections 3 and 4) shall, as far as may be, apply to every existing Special
Economic Zone.
45. Person to whom a communication may be sent under this Act.—A communication by any
competent authority or person under this Act may be sent to the person who has the ultimate control over
the affairs of the Special Economic Zone or Unit or where the said affairs are entrusted to a manager,
director, chairperson, or managing director, or to any other officer, by whatever name called, such
communication may be sent to such manager, director, chairperson, or managing director or any other
officer.
46. Identity Card.—Every person, whether employed or residing or required to be present in a
Special Economic Zone, shall be provided an identity card by every Development Commissioner of such
Special Economic Zone, in such form and containing such particulars as may be prescribed.
47. Authorities responsible for administration.—Any authority which has been conferred upon any
power, or, is, required to discharge any function under any Central or State Act, may, subject to the
provisions of this Act, exercise such power or discharge such functions in any Special Economic Zone
under that Act.
48. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall
lie against the Central Government or any Chairperson, Member, officer or other employee of the Board
or the Approval Committee or the Authority or Development Commissioner for anything done or
intended to be done in good faith under this Act.
49. Power to modify provisions of this Act or other enactments in relation to Special Economic
Zones.—(1) The Central Government may, by notification, direct that any of the provision of this Act
(other than sections 54 to 56) or any other Central Act or any rules or regulations made thereunder or any
notification or order issued or direction given thereunder (other than the provisions relating to making of
the rules or regulations) specified in the notification—
(a) shall not apply to a Special Economic Zone or a class of Special Economic Zones or all
Special Economic Zones; or
(b) shall apply to a Special Economic Zone or a class of Special Economic Zones or all Special
Economic Zones only with such exceptions, modification and adaptation, as may be specified in the
notification:
Provided that nothing contained in this section shall apply to any modifications of any Central
Act or any rule or regulation made thereunder or any notification or order issued or direction given or
scheme made thereunder so far as such modification, rule, regulation, notification, order or direction
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or scheme relates to the matters relating to trade unions, industrial and labour disputes, welfare of
labour including conditions of work, provident funds, employers' liability, workmen's compensation,
invalidity and old age pensions and maternity benefits applicable in any Special Economic Zones.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft
before each House of Parliament, while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in
disapproving the issue of the notification or both Houses agree in making any modification in the
notification, the notification shall not be issued or, as the case may be, shall be issued only in such
modified form as may be agreed upon by both the Houses.
50. Power of State Government to grant exemption.—The State Government may, for the
purposes of giving effect to the provisions of this Act, notify policies for Developers and Units and take
suitable steps for enactment of any law—
(a) granting exemption from the State taxes, levies and duties to the Developer or the
entrepreneur;
(b) delegating the powers conferred upon any person or authority under any State Act to the
Development Commissioner in relation to the Developer or the entrepreneur.
51. Act to have overriding effect.—The provisions of this Act shall have effect notwithstanding
anything inconsistent therewith contained in any other law for the time being in force or in any instrument
having effect by virtue of any law other than this Act.
52. Certain provisions not to apply.—(1) The provisions contained in the Chapter XA of the
Customs Act, 1962 (52 of 1962) and the Special Economic Zones Rules, 2003 and the Special Economic
Zones (Customs Procedure) Regulations, 2003 made thereunder shall not, with effect from such date as
the Central Government by notification appoint, apply to the Special Economic Zones.
(2) Notwithstanding anything contained in sub-section (1), all offences committed, before the
commencement of this Act, under any provisions of the Customs Act, 1962 (52 of 1962) and the Special
Economic Zones Rules, 2003 and the Special Economic Zones (Customs Procedure) Regulations, 2003
made thereunder, shall continue to be governed by the said Act or rules, as the case may be.
(3) Anything done or any action taken or purported to have been done or taken including any rule,
notification, inspection, order or notice made or issued or any permission or authorisation or exemption
granted or any document or instrument executed under the said provisions of the Act, rules and
regulations referred to in sub-section (1) shall, in so far as they are not inconsistent with the provisions of
this Act, be deemed to have been done or taken or made or issued or granted under the corresponding
provisions of the Act or rules or regulations referred to in that sub-section.
53. Special Economic Zones to be ports, airports, inland container depots, land stations, etc., in
certain cases.—A Special Economic Zone shall, on and from the appointed day, be deemed to be a
territory outside the customs territory of India for the purposes of undertaking the authorised operations.
(2) A Special Economic Zone shall, with effect from such date as the Central Government may
notify, be deemed to be a port, airport, inland container depot, land station and land customs stations, as
the case may be, under section 7 of the Customs Act, 1962 (52 of 1962):
Provided that for the purposes of this section, the Central Government may notify different dates for
different Special Economic Zones.
54. Amendment to First Schedule.—(1) The Central Government may, having regard to the objects
of this Act, and if it considers necessary or expedient so to do, by notification add to, or as the case may
be, omit from the First Schedule any enactment specified therein.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft
before each House of Parliament, while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in
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disapproving the issue of the notification or both Houses agree in making any modification in the
notification, the notification shall not be issued or, as the case may be, shall be issued only in such
modified form as may be agreed upon by both the Houses.
55. Power to make rules.—(1) The Central Government may, by notification, make rules for
carrying out the provisions of this Act.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
(a) the infrastructure facilities necessary for the development of the Special Economic Zones
under clause (p) and services in the Special Economic Zones under clause (z) of section 2;
(b) the period within which the person concerned shall obtain the concurrence of the State
Government under sub-section (3) of section 3;
(c) the form and the manner in which a proposal may be made and the particulars to be contained
therein under sub-section (5) of section 3;
(d) the period within which the State Government may forward the proposal together with its
recommendation under sub-section (6) of section 3;
(e) the requirements subject to which the Board may approve, modify or reject the proposal under
sub-section (8) of section 3;
(f) the period within which the grant of letter of approval shall be communicated to the State
Government or Developer or entrepreneur under sub-section (10) of section 3;
(g) the other requirements for notifying the specifically identified area in a State as a Special
Economic Zone under sub-section (1) of section 4;
(h) the terms, conditions and limitations subject to which the goods or services exported out of, or
imported into, or procured from the Domestic Tariff Area to, a Special Economic Zone, be exempt
from payment of taxes, duties, or cess under section 7;
(i) the procedure for transfer of letter of approval in case of suspension of letter of approval of a
Developer under clause (a) of sub-section (9) of section 10;
(j) the form and the manner in which a proposal may be submitted and the particulars to be
contained therein under sub-section (1) of section 15;
(k) the time within which a person aggrieved by the order of the Approval Committee may prefer
an appeal under sub-section (4) of section 15;
(l) the form in which the appeal shall be made and the fees for making such appeal under
sub-section (6) of section 15;
(m) the procedure for disposing of an appeal under sub-section (7) of section 15;
(n) the requirements (including the period for which a Unit may be set up) subject to which the
proposal may be approved, modified or rejected under clause (a) of sub-section (8) of section 15;
(o) the terms and conditions for the Unit subject to which it shall undertake authorised operations
under clause (b) of sub-section (8) of section 15 and the obligations and entitlements of the Unit;
(p) the time within which a person aggrieved by the order of the Approval Committee may prefer
an appeal under sub-section (4) of section 16;
(q) the form in which the appeal shall be made and the fees for making such appeal under
sub-section (6) of section 16;
(r) the procedure for disposing of an appeal under sub-section (7) of section 16;
(s) the form and the manner in which an application may be made for setting up of an Offshore
Banking Unit in a Special Economic Zone under sub-section (1) of section 17;
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(t) the requirements for setting up and operation of an International Financial Services Centre in a
Special Economic Zone under sub-section (1) of section 18;
(u) the requirements and terms and conditions subject to which a Unit in the International
Financial Services Centre may be set up and operated in a Special Economic Zone under
sub-section (2) of section 18;
(v) the form of single application for obtaining any licence, permission or registration or approval
under clause (a) of section 19;
(w) the form of single return or information to be furnished by an entrepreneur or Developer
under clause (c) of section 19;
(x) the manner in which and the terms and conditions subject to which the exemptions,
concessions, draw back or other benefits shall be granted to every Developer and entrepreneur under
sub-section (2) of section 26;
(y) the period during which any goods brought into, or services provided in, any Special
Economic Zone shall remain or continue to be provided in such Unit or Special Economic Zone under
section 28;
(z) the terms and conditions subject to which transfer of ownership in any goods brought into, or
produced or manufactured in, any Unit or Special Economic Zone, or removal thereof from such Unit
or Zone, shall be allowed under section 29;
(za) the conditions subject to which the Units shall be entitled to sell the goods manufactured in a
Special Economic Zone to the Domestic Tariff Area under section 30;
(zb) the term of office of the Members, other than ex officio Members, of every Authority and the
manner of filling of vacancies under sub-section (6) of section 31;
(zc) the manner in which and the conditions subject to which and the purposes for which any
person may be associated under sub-section (7) of section 31;
(zd) the times and the places of meetings and the procedure to be followed in the transaction of
business at the meetings under sub-section (10) of section 31;
(ze) the powers and the functions of every Development Commissioner under sub-section (1) of
section 32;
(zf) the method of appointment of officers and other employees of every Authority, conditions of
their service and the scale of pay and allowances under sub-section (3) of section 32;
(zg) the other functions to be performed by the Authority under clause (e) of sub-section (2) of
section 34;
(zh) the form in which the accounts and other relevant records of every Authority shall be
maintained and annual statement of accounts shall be prepared under sub-section (1) of section 37;
(zi) the form and the manner in which and the time at which every Authority shall furnish returns
and statements and other particulars to the Central Government under sub-section (1) of section 39;
(zj) the form in which and the date before which every Authority shall furnish to the Central
Government the report of its activities, policy and programmes under sub-section (2) of section 39;
(zk) the form in which and the particulars to be contained in the identity cards under section 46;
(zl) any other matter which, is to be, or may be, prescribed.
(3) Every rule made by the Central Government under this Act shall be laid, as soon as may be after it
is made, before each House of Parliament, while it is in session, for a total period of thirty days which
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that
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any such modification or annulment shall be without prejudice to the validity of anything previously done
under that rule.
56. Power to remove difficulties.—(1) If any difficulty arises in giving effect to the provisions of
this Act, the Central Government may, by order published in the Official Gazette, make such provisions
not inconsistent with the provisions of this Act, as may appear to it to be necessary or expedient for
removing the difficulty:
Provided that no such order shall be made under this section after the expiration of two years from the
date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be after it is made, before each
House of Parliament.
57. Amendment of certain enactments.—With effect from such date as the Central Government
may, by notification, appoint, the enactments specified in the Third Schedule shall be amended in the
manner specified therein:
Provided that different dates may be appointed on which the amendments specified in the Third
Schedule shall apply to a particular Special Economic Zone or a class of Special Economic Zones or all
Special Economic Zones.
58. Savings.—All rules made or purporting to have been made or all notifications issued or
purporting to have been issued under any Central Act relating to the Special Economic Zones shall, in so
far as they relate to matters for which provision is made in this Act or rules made or notification issued
thereunder and are not inconsistent therewith, be deemed to have been made or issued under this Act as if
this Act had been in force on the date on which such rules were made or notifications were issued and
shall continue to be in force unless and until they are superseded by any rules made or notifications issued
under this Act.