Parliament passes Special Economic Zones (Amendment) Bill, 2019 - (26 Jun 2019)
Commercial
Parliament has passed the Special Economic Zones (Amendment) Bill, 2019. The Bill seeks to allow trusts to set up units in special economic zones by amending the Special Economic Zones Act, 2005. The Special Economic Zones (Amendment) Bill, 2019 will replace the Special Economic Zones (Amendment) Ordinance, 2019 which was promulgated in month of March. Commerce and Industry Minister Piyush Goyal, during the debate on bill stated that, “this is a small amendment that has large impact on investment, job and growth”.
The Special Economic Zones Act, 2005 was enacted with a view to provide for the establishment, development and management of the Special Economic Zones for the promotion of exports. Clause (v) of Section 2 of the Act defines the term "person" which 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. As the said definition did not include "trust or entity", they could not be considered to be a "person" recognised as an entrepreneur eligible to be given permission to set up a unit in Special Economic Zone.
The trusts or entities are very common form of operating bodies in the financial sector. It has become incumbent to amend clause (v) of section 2 of the Act. The Special Economic Zones (Amendment) Bill, 2019 which seeks to replace the Special Economic Zones (Amendment) Ordinance, 2019 provides for the amendment of clause (v) of said section of the Act so as to include the expression "trust or entity" in the definition of "person".
Tags : SEZ BILL AMENDMENT
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