Monitoring of activities of SEZ units

Monitoring of SEZ unit compliance may trigger penal action under foreign trade law for breaches of approval conditions.

The Approval Committee must monitor SEZ unit performance against the Letter of Approval and Bondcum-Legal Undertaking, focusing on the requirement of positive Net Foreign Exchange earnings. If the Committee concludes a unit has failed to achieve the Net Foreign Exchange requirement or has breached any terms or conditions, the unit is liable to penal action under the Foreign Trade (Development and Regulation) framework, without prejudice to other actions available under law, underscoring Committee oversight and statutory penalties for non-compliance.