TaxTMI 
TaxTMI 
Alternate method for transfer of space by an exiting unit under Rule 74 of the SEZ Rules, 2006
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....the provisions of rule 74 or 74A of SEZ Rules, 2006. Representations were received from stakeholders including SGJMA expressing difficulties in following the extant procedures as the exiting units are not able to recover the value of their financial assets. 2. The matter has been examined in consultation with concerned stakeholders. In order to facilitate smooth operation of business activities by SEZ units and for the ease of doing business, following clarifications are issued for transfer of space under the extant provisions of Rule 74 of SEZ Rules, 2006:- 1. The SEZ Authority shall engage an independent valuer to assess the current value of the physical assets as well as financial assets, i....
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.... payable to SEZ Authority and the base rent for the e-Auction shall be the highest rate of lease rent being received by the SEZ Authority in that specific category (SDF/Plot, as the case may be) in the previous quarter. 7. The winning bid shall be the highest bid for lease rent payable. 8. If such winning bid is higher than the amount indicated initially by the potential buyer identified by the exiting unit, the bidder who had submitted the highest bid in the e- auction process shall emerge as the successful entity of the e-auction process and shall be issued a LoA by following due process. 9. If the highest bid in the e-auction process is less than the amount indicated initially by the potential buyer identified ....
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....approval for exit and the incoming Unit shall also be given "in-principle" approval for the space based on the details provided by them for setting up an SEZ unit by the UAC. 3. On receipt of "in-principle" approval, the exiting Unit shall complete its process of exit by clearing all statutory and non-stautory dues of Customs, Estate and other concerned authorities, if any. In case of any hypothecation, necessary clearance shall be obtained from the bank or ARC or any other agency, as the case may be. 4. The exiting Unit shall furnish a copy each of following documents to the office of the DC:- (a) Copy of the "in-principle" approval of the proposed incoming Unit along with valid LoA and valid sub-lease agreement as on date o....
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....completed, the incoming Unit shall furnish a copy each of all documents referred to (a) to (h) of S.No. 4 above to the DC office and request for grant of LoA. 9. The incoming Unit shall pay to the SEZ Authority the value of the assets - Sdepreciated value of the physical assets left behind as well as fair value of the unutilised portion of financial assets, if any as determined by the independent valuer which would be transferred to the exiting unit by the SEZ Authority. 10. The independent valuer shall follow the following formulation for arriving at the fair value of the unutilised portion of the lumpsum amount made as upfront payment by the exiting unit. • The lump-sum amount received at the time of allotment of space ....