The Haryana Special Economic Zone Act, 2005 (9 of 2006)

2006 : Hr. Act 9] SPECIAL ECONOMIC ZONE 395 
THE HARYANA SPECIAL ECONOMIC ZONE ACT, 2005 
Sections : 
1. ) 
(Haryana ActNo. 9 0f2006) 
TABLE OF CONTENTS 
Short title, extent and commencement. 
Definitions. 
Constitution and functions of project evaluation committee. 
Constitution and functions of project approval committee. 
Notification of Special Economic Zone. 
Processing and disposal of application for approval of Developer. 
Land for Special Economic Zone. 
Duties, functions and powers of Developer. 
Provision for infrastructure or amenity by Developer. 
Generation and supply of electricity. 
Exemption from State taxes, duties, fees, cess and levies. 
Powers and functions of Development Commissioner. 
Act to override other laws. 
Control of Government. 
Protection of action taken in good faith. 
Power to remove difficulties. 
Power to make rules. 
Power to make regulations. 
Saving of operation of other laws. 
Appendix A
396
2006 : Hr. Act 9] SPECIAL ECONOMIC ZONE 397 
ITHE HARYANA SPECIAL ECONOMIC ZONE ACT, 2005 
(Haryana Act No. 9 of 2006) 
[Received the assent of the Governor of Haryana on the 17th January , 
2006, and was first published for general information in the Haryana Government 
Gazette (Extraordinary), Legislative Supplement Part I of the 23rd January, 2006.] 
Year | No.| Short title ‘Whether repealed or otherwise 
affected by Legislation 
1 2 3 1 
2006 | 9 | The Haryana Special Amended by Haryana Act 4 
Economic Zone Act, 2005 | of 2008* 
Amended by Haryana Act 8 
of 2010° 
AN 
Act 
to set up Special Economic Zones to promote and establish large self-contained 
industrial townships, with world class infrastructure, to accelerate and 
Jfacilitate both public and private sector participation in an internationally 
competitive and hassle free environment for export promotion thereby 
securing large dividends in terms of economic and industrial development 
and to act as strong catalytic of regional development in the State. 
Be it enacted by the Legislature of the State of Haryana in the Fifty-sixth 
Year of the Republic of India as follows: - 
CHAPTERI 
PRELIMINARY 
1. (1) This Act may be called the Haryana Special Economic Zone Short title, extent 
Act, 2005. and 
(2) It extends to the whole of the State of Haryana. commencement 
4(3) It shall come into force on such date as the State Government 
may, by notification in the Official Gazette, appoint. 
2. (1) Inthis Act, unless the context otherwise requires,— Definitions 
(a) “amenities” means and includes roads, water supply, street 
lighting, power supply, sewerage, drainage, public works, 
tourist spots, open spaces, parks, landscaping and play 
1 For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary), 
12th December, 2005, page 4579. 
For Statement of Objects and Reasons, see Haryana Government Gazette (Extraordinary), 
2008, dated 29th February, 2008, page-747 
3. For Statement of objects and Reasons, see Haryana Government Gazette (Extraordinary) 
2010, dated 09th March, 2010, page 949 
4. Enforced vide $.0. No. 17, dated Ist February, 2006.
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SPECIAL ECONOMIC ZONE [2006 : Hr. Act 9 
fields and such other conveniences, as the State 
Government may, by notification, specify to be an amenity 
for the purpose of this Act; 
“Appendix” means Appendix appended to this Act; 
“building” means and includes,— 
(1) a house, out-home, factory, offices/buildings 
relating to information technology, health, 
education, research and other social infrastructure, 
stable, godown, shed, hut-wall and any other 
structure whether of masonry, bricks, mud, wood, 
metal or any other material whatsoever; 
(ii) astructure on wheels or simply resting on the ground 
without foundations; 
(i) a ship, vessel, boat, tent, van and any other structure 
used for human habitation or used for keeping or 
storing any articles or goods; and 
(iv) the gardens, grounds, carriages and stables, if any, 
appurtenant to any building which is intended to 
be used for residential, industrial, commercial, 
institutional or any other purposes, whether in actual 
use or not; 
“building operations™ include re-building operations, 
structural alterations of, or additions to buildings and 
other operations normally undertaken in connection with 
the construction of buildings; 
“controlled area” means an area declared under section 4 
of the Punjab Scheduled Roads and Controlled Areas 
Restriction of Unregulated Development Act, 1963 (41 
of 1963); 
“existing state law™ means any state law which is 
applicable in the State of Haryana; 
“Government” means the Government of the State of 
Haryana in the Industries and Commerce Department;] 
“infrastructure” means industrial, commercial or social or 
residential infrastructure and any other facility necessary 
for the development of the Special Economic Zone; 
“land” means any land including super structure situated 
within the Special Economic Zone; 
1 Substituted by Haryana Act 4 of 2008.
2006 : Hr. Act 9] 
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SPECIAL ECONOMIC ZONE 399 
“occupier” means a person who occupies a site or building 
within Special Economic Zone and includes his successor, 
assignee and administrator; 
“off-zone supplier” means a unit located outside the 
Special Economic Zone providing goods or services or 
both to the Developer, Co-Developer, occupier orresident; 
“operator” means a person engaged by the Developer for 
providing infrastructure or any amenity in the Special 
Economic Zone; 
“person” 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; 
“prescribed” means prescribed by rules made under this 
Act; 
“project” means a Special Economic Zone project 
including any other project essential for the sustainability 
of Special Economic Zone as deemed appropriate and 
recommended by the ![Government] for approval of the 
Board; 
A wx ] 
“project evaluation committee” means a project 
evaluation committee constituted under section 3; 
“Special Economic Zone” means the area approved by 
the '[Govemnment] to be the Special Economic Zone under 
section 4 and notified by the Government under section 5; 
“unit” means an enterprise, or part thereof, which occupies 
space within the Special Economic Zone carrying on 
business as approved by the Development Commissioner; 
“urban area” shall have the same meaning as assigned in 
the Haryana Development and Regulation of Urban Areas 
Act, 1975 (8 of 1975); 
“value addition™ includes any activity that brings about 
achange in an article or articles as a result of some process, 
1 
2 
Substituted by Haryana Act 4 of 2008 
Omitted by ibid.
Constitution 
and functions of project evaluation 
committee. 
400 SPECIAL ECONOMIC ZONE [2006 : Hr. Act 9 
treatment, and/or labour and results in transformation into 
a new and different article with enhanced value so 
understood in commercial parlance and shall also include 
packaging. 
(2) All other words and expressions used and not defined in this 
Act but defined in the Special Economic Zones Act, 2005 (Central Act 28 of 
2005), shall have the meanings respectively assigned to them in the said Act. 
CHAPTERII 
CONSTITUTION OF COMMITTEES AND 
SPECIAL ECONOMIC ZONE 
3. (1) The Government shall by notification in the Official Gazette, 
constitute, for the purposes of this Act, a committee to be called project evaluation 
committee. 
'[(2) The project evaluation committee shall consist of— 
(@) Secretary to Government, Haryana, : Chairman 
Industries and Commerce Department 
(b) Secretary to Government, Haryana, Town : Member 
and Country Planning Department or his 
nominee not below the rank of Joint 
Secretary 
(©) Secretary to Government, Haryana, : Member 
Environment Department or his 
nominee not below the rank of Joint 
Secretary 
(d) Director, Town and Country Planning : Member 
Department 
(6) Managing Director, Haryana State : Member 
Industrial and Infrastructure 
Development Corporation 
@ Managing Director, Haryana Vidyut : Member 
Prasaran Nigam 
(2) Engineer-in-Chief, Irrigation Department : Member 
(h) Representative of Finance Department  : Member 
not below the rank of Joint Secretary 
(i) Concerned Managing Director, Uttar 
Haryana Bijli Vitran Nigam or Dakshin 
Haryana Bijli Vitran Nigam : Member 
()  Director, Industries and Commerce : Member- 
Department Secretary.] 
1 Substituted by Haryana Act 4 of 2008.
2006 : Hr. Act 9] SPECIAL ECONOMIC ZONE 401 
(3) The committee shall perform the following functions, 
namely:— 
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to evaluate the project and in case the project satisfies the 
objects of this Act, it shall recommend it to the 
![Government] for acceptance, approval, disapproval or 
modification in the project, as the case may be; 
to assess the desirability of the project in relation to 
Special Economic Zone already approved and the 
availability of water and power before making 
recommendations; 
to ensure that the setting up of this project does not 
adversely affect the prospects and sustainability of the 
projects already approved. 
to review the progress of implementation of the project 
by the Developer at such intervals, as it may deem 
necessary.] 
’[4. (1) The Government shall, approve, modify or reject any proposal 
for the establishment of Special Economic Zone on the basis of the 
recommendations of the project evaluation committee: 
Provided that project approved by the Government shall have 
precedence over the development plan indicating the broad land uses, if any: 
Provided further that the Developer shall not be required to apply for 
seeking change of land use if Special Economic Zone falls within the controlled 
area declared under the Haryana Development and Regulation of Urban Areas 
Act, 1975 (8 0of 1975), and shall not be required to apply for the license under the 
provisions of the said Act. 
(2) The Member-Secretary of the project evaluation committee 
shall forward for approval the recommendations of the Government to the Board. 
5. The Government shall notify in the Official Gazette the boundaries 
and extent of area of the Special Economic Zone after receiving approval as 
specified in clause (b) of sub-section (2) of section 4.] 
CHAPTER III 
PROCEDURE TO APPLY FOR PROJECT APPROVAL 
6. (1) A Developer shall identify the area for the development of 
Special Economic Zone and apply in Appendix A (20 copies) to the Director, 
Industries and Commerce Department, Haryana, Chandigarh. The project inter- 
alia shall contain the prefeasibility report, phased development components of 
the Special Economic Zone and the objects to be achieved. 
1. Substituted by Haryana Act 4 of 2008, 
2. Added by Haryana Act 4 of 2008 
Establishment of 
Special Economic 
Zone 
Notification of 
Special 
Economic Zone. 
Processing and 
disposal of 
application for 
approval of 
Developer.
Land for Special 
Economic 
Zone. 
Dauties, 
functions and 
powers of 
Developer. 
402 SPECIAL ECONOMIC ZONE [2006 : Hr. Act 9 
(2) The Director, Industries and Commerce Department, Haryana, 
on receipt of application shall forward the proposal to the concerned department 
for comments. 
(3) The project evaluation committee shall consider the comments 
received from the concerned departments and shall examine the viability and 
other economic indicators of the project justifying the necessity of setting up of 
the proposed Special Economic Zone. 
'[(4) The recommendations of the project evaluation committee shall 
be sent to the Government. 
(5) The Government shall accord approval in principle, if land of 
the project is not in possession of the Developer. 
(6) The Member-Secretary of the project evaluation committee 
shall forward the final concurrence to the Central Government, subject to the 
terms and conditions as laid down by the Government after the physical possession 
of the land has vested in the Developer.] 
7. (1) The Government may transfer land owned, acquired or 
controlled by it to the Developer as per provisions of the Land Acquisition Act, 
1894 (1 of 1894), and the rules made thereunder and as per State Government 
policy. 
(2) The Developer may acquire land independently from private 
parties by purchase, lease or otherwise. 
CHAPTER IV 
POWERS AND FUNCTIONS OF DEVELOPER 
8. (1) Subject to the provisions of this Act, the Developer shall have 
the duty to secure planned development of the Special Economic Zone and provide 
for the establishment, construction, installation, operation, maintenance and 
management of the infrastructure and amenities in the zone. 
(2) Without prejudice to the generality of the provisions contained 
in sub-section (1), the Developer shall exercise and perform the following powers 
and functions, namely:— 
(a) to prepare a '[master plan] of the Special Economic Zone 
in conformity with the rules framed under this Act or 
adhered to by the Developer under sub-section (3) or as 
may be adopted by the Government under sub-section (4) 
of section 17 and to implement such plan after obtaining 
the approval of the [Government]; 
1 Substituted by Haryana Act 4 of 2008.
2006 : Hr. Act 9] 
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SPECIAL ECONOMIC ZONE 403 
to demarcate and develop sites for industrial, commercial 
including Free Trade and Warehousing Zone, residential 
and other purposes according to the approved plan; 
to allocate and transfer, either by way of '[x x x] lease or 
otherwise, *[excluding sale] plots of land, building or 
installation for industrial, commercial, residential or other 
purposes subject to his own title in relation to such plots 
or land, building or installations; 
to regulate the erection of buildings and setting up of 
industries in accordance with the building plan as 
approved by the Development Commissioner; 
to demarcate the boundary of the Special Economic 
Zone and any parts thereof and to construct and 
maintain demarcation structures, as per provisions of sub- 
sections (3) and (4) of section 17; 
to fix rates for transfer of land, building or installations 
by way of '[x x x], lease or otherwise *[excluding sale] 
from time to time; 
for the purpose of providing, maintaining or continuing 
any amenity and infrastructure in the Special Economic 
Zone, the Developer may levy such charges, as he may 
consider necessary, in respect of any land, building, 
installations or any other infrastructure upon the user/ 
occupier thereof; and 
to perform such other functions as may be prescribed from 
time to time. 
9. (1) The Developer may engage a off-zone supplier, operator, or 
any other person for the purposes of providing infrastructure or amenity. 
(2) Where any infrastructure or amenity is provided, the Developer 
shall have the power to levy charges for the use of service so provided. 
(3) The Developer may delegate the power of collection of the 
charges for the use of services to the agency providing the infrastructure or amenity. 
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The Developer or the Co-Developer shall be permitted to 
generate electricity in or outside the Special Economic 
Zone for consumption in the Special Economic Zone. 
Units located in the Special Economic Zone, individually 
or in groups shall be permitted to generate electricity in 
or outside the Special Economic Zone for self- 
consumption. 
1 
2 
Omitted by Haryana Act 4 of 2008. 
Inserted by Haryana Act 8 of 2010. 
Provision for 
infrastructure or 
amenity by 
Developer. 
Generation and 
supply of 
electricity.
Exemption 
from State 
taxes, duties, 
fees, cess and 
levies. 
404 SPECIAL ECONOMIC ZONE [2006 : Hr. Act 9 
(c) Units located in the Special Economic Zone, individually 
or in groups shall be permitted to avail of supply of 
electricity by sourcing it through open access from 
generators directly and wheel electricity to the Special 
Economic Zone for consumption, subject to such payment 
as may be required for open access and wheeling of 
electricity. 
(2)  Groups ofunits in the Special Economic Zone will be considered 
a separate class of consumer and shall be permitted to avail supply of electricity 
at a determined tariff from the existing licensee. 
(3) The Developer or the Co-Developer of the Special Economic 
Zone or an association of units located in the Special Economic Zone can, unless 
exempted under the Electricity Act, 2003 (Central Act 36 of 2003), obtain a 
distribution license or a franchise for distribution of electricity within the Special 
Economic Zone or in part(s) thereof. 
(4)  For the purpose of regulation of safety and other requirements 
of the electrical system, including installations and equipments under the Indian 
Electricity Rules, 1956, the Development Commissioner or his nominee shall be 
authorized to exercise the powers of an Electrical Inspector. 
(5) No electricity duty or cess shall be levied on the businesses of 
generation, transmission and distribution of electricity and on consumption of 
electricity within Special Economic Zone. 
CHAPTERV 
EXEMPTION FROM STATE TAXES, DUTIES, 
FEES, CESS AND LEVIES 
11. (1) The following shall be exempted from payment of any tax, 
duty, fees, cess or any other levies under any existing State law, namely:— 
'[() any goods exported out of or imported into the Special 
Economic Zone for setting up of an individual unit and 
for processing by the industrial unit;] 
(i) inter unit transaction of goods within the Special 
Economic Zone; 
(iii) goods from the Special Economic Zone sent for value 
addition to the domestic tariff area and returned to the 
Special Economic Zone thereafter; and 
(iv) services that provide value addition to a product within 
the Special Economic Zone. 
(2) All transactions and transfers of immovable property or 
documents related thereto within the Special Economic Zone shall be exempted 
from stamp duty: 
1 Substituted by Haryana Act 4 of 2008.
2006 : Hr. Act 9] SPECIAL ECONOMIC ZONE 405 
![Provided that the stamp duty paid by the Developer in respect of 
the transactions of immovable property entered into, after the 
commencement of the Special Economic Zones Act, 2005 (Central Act 28 
of 2005) but prior to the notification of the area as Special Economic 
Zone, shall be refunded after the Special Economic Zone is so notified: 
Provided further that appropriate entries shall be made in the revenue 
records against the land so notified as Special Economic Zone to the effect 
that in respect of the same the stamp duty has either been refunded or not 
paid and its further sale by the Developer shall not be permissible unless 
the Special Economic Zone has been denotified and the benefit of the 
stamp duty availed is remitted to the Revenue Department by him with 
interest at the rate of 12% per annum on the said amount chargeable with 
effect from the date the refund was made or the stamp duty was not paid, as 
the case may be, to the date of remission and a certificate is obtained in this 
regard from the revenue authorities.] 
CHAPTER VI 
POWERS AND FUNCTIONS OF DEVELOPMENT COMMISSIONER 
12. (1) The Development Commissioner shall supervise, oversee and Powers and 
coordinate the activities of agencies engaged in the development of the Special functions of 
Economic Zone and may exercise all powers and functions as may from time to ]C)::lln‘:‘s’:;"‘:‘ 
time be vested in him by the Central Government or the State Government. 
(2) Notwithstanding anything contained in any existing State law, 
the Development Commissioner shall exercise the following powers for the grant 
of approvals/sanctions to the entrepreneur, so as to provide for a single window 
clearance system in the Special Economic Zone, namely:— 
(a) the powers of the Labour Commissioner and Chief 
Inspector of Factories in respect of labour laws; 
(b) the powers of the Haryana Pollution Control Board with 
regard to no objection certificate and consent under the 
‘Water (Prevention and Control of Pollution) Act, 1974 
(6 of 1974) and the Air (Prevention and Control of 
Pollution) Act, 1981 (14 of 1981); and 
(c) the powers of the Director, Town and Country Planning 
Department, Haryana, exercisable under the provisions 
of the Punjab Scheduled Roads and Controlled Areas 
Restriction of Unregulated Development Act, 1963 (41 
of 1963) and the Haryana Development and Regulation 
of Urban Areas Act, 1975 (8 0f1975). 
CHAPTER VII 
MISCELLANEOUS 
13. Notwithstanding the provisions contained in the existing State law Act to override 
governing the use of the land and building, services, amenities, utilities, supplies other laws 
and any other activity, the provisions of this Act shall prevail. 
1 Added by Haryana Act § of 2010
Control of 
Government. 
Protection of 
action taken in 
good faith 
Power to 
remove 
difficulties. 
Power to make 
rules 
Power to make 
regulations 
Saving of 
operation of 
other laws 
406 SPECIAL ECONOMIC ZONE [2006 : Hr. Act 9 
14. The Development Commissioner shall carry out such directions as 
may be issued to him from time to time by the Government for the efficient 
administration of this Act: 
Provided that the Development Commissioner shall keep informed 
about the progress of the approved project at such intervals as may be directed by 
the Government. 
15. No suit, prosecution or other legal proceeding shall lie against any 
person for anything which is in good faith done or intended to be done in pursuance 
of this Act or rules made thereunder. 
16. (1) Ifany difficulty arises in giving effect to the provisions of the 
Act, the Government may, by notification, make such order, not inconsistent with 
the provision of this Act, as may appear to it to be necessary or expedient for the 
removal of difficulty: 
Provided that no such order shall be made after the expiration 
of two years from the date of coming into force of this Act. 
(2) Every order made under this section shall be laid, as soon as 
may be after it is made, before the House of the State Legislature. 
17. (1) The State Government may, by notification in the Official 
Gazette, make rules for carrying out the purposes of this Act. 
(2) Every rule made under this Act shall be laid, as soon as may be, 
after it is made, before the House of the State Legislature, while it is in session, if 
the House agrees in making any modification in the rule or the House agrees 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 any such 
modification or annulment shall be without prejudice to the validity of anything 
previously done under that rule. 
(3) Wherever a Special Economic Zone is approved in the controlled 
areas, the Government may direct the Developer to adhere to the provisions of 
building rules framed under the Punjab Scheduled Roads and Controlled Areas 
Restriction of Unregulated Development Act, 1963 (41 of 1963). 
(4) Incase the site falls outside the controlled area, the Government 
may, by notification in the Official Gazette, adopt the building rules referred to in 
sub-section (3) to maintain a parity among the Developers. 
18. The Development Commissioner may make regulations not 
inconsistent with this Act and the rules made thereunder for the purpose of giving 
effect to the provisions of this Act. 
19. Nothing in this Act shall affect,— 
(1) any right, privilege, obligation or liability acquired, accrued or 
incurred under any other law; 
(i) any penalty, forfeiture, or punishment incurred under any other 
law; 
(iii) any investigation, legal proceeding or remedy in respect of any 
such right, privilege, obligation or liabili 
any such investigation, legal proceeding or remedy may be instituted, continued 
or enforced, and any such penalty, forfeiture or punishment may be imposed, as if 
this Act had not been passed. 
2006 : Hr. Act 9] SPECIAL ECONOMIC ZONE 
APPENDIX A 
[see section 6(1)] 
To 
The Director, 
Industries and Commerce Department, Haryana, 
Chandigarh. 
Subject: - Application for setting up Special Economic Zone. 
1. Name of *SEZ Developer (in block letters) 
Full address of the SEZ Developer ) 
3. Nature of the SEZ Developer (Government 
undertaking/public/private/ proprietorship/ 
others)(please specify) 
4. Name of the proposed SEZ 
5. Type of the proposed SEZ(Multiproduct or 
sector specific/others)(please specify) 
6. Location of the proposed SEZ 
7. Particulars of the land area of the proposed 
SEZ acquired or to be acquired along with 
its map 
8.  Detailed project report/feasibility report of 
proposed SEZ 
9.  Investment and mode of financing of the 
proposed SEZ 
10. Employment likely to be generated 
11. Name and complete address of the persons 
to be contracted 
12.  Any other information 
407 
(Signature of applicant) 
(*SEZ is Special Economic Zone). 

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