The Tamil Nadu Special Economic Zones (Special Provisions) Act 2005

No.18 of 2005
-
Tamil Nadu Special Economic
Zones (Special Provisions) Act, 2005

Central Act
28 of 2005.
Central Act
28 of 2005.
The following Act of the Tamil Nadu Legislative Assembly received the assent
of the Governor on the 13th October; 2005 and is hereby published for general
information:-
ACT No.18 OF 2005.
An Act to make certain special provisions in relation to Special Economic
Zones in the State of Tamil Nadu and for matters connected therewith
and incidental thereto.
BE it enacted by the Legislative Assembly of the State of Tamil Nadu in the Fifty-
sixth Year ofthe Republic of India as follows:-
1. (1) This Act may be called the Tamil Nadu Special Economic Zones
(Special Provisions) Act; 2005.
(2) It extends to the whole ofthe State of Tamil Nadu.
(3) It shall be deemed to have come into force on the 8th August 2005.
2. In this Act; unless the context otherwise requires;-
(a) "Authority" means an Authority constituted under sub-section (1) of
Section 17;
(b) "Government" means the State Government;
(c) "notified offence" means the offence specified as such under sub-section
(1) of Section 7;
(d) "prescribed" means prescribed by rules made under this Act;
(e) "Special Economic Zone" means a Special Economic Zone as defined in
clause (za) of Section 2 of the Special Economic Zones Act; 2005.
(f) all other words and expressions used and not defined in this Act but
defined in the Special Economic Zones Act; 2005 shall have the meanings
respectively assigned to them in that Act.
3. The Government while forwarding the proposal to establish a Special
Economic Zone with their recommendation to the Board shall be guided by the
following; namely:-
(a) generation of additional economic activity;
b promotion of exports of goods and services;
promotion of investment from domestic and foreign services;
creation of employment opportunities;
development of infrastructure facilities; and
f) maintenance of sovereignty and integrity of India; the security of State
and friendly relations with foreign State.
(
(c
(d
(e
(
4. The Approval Committee may perform such additional functions as may be
prescribed.
5. Notwithstanding anything contained in any other law for the time being in
force; the Government may; if required;-
(a) prescribe a single application form for obtaining any licence; permission or
registration or approval by a Developer or an entrepreneur under one or more State
Acts;
Short title;
extent and
commencement
Definitions.
Guidelines to
recommend
proposal to
establish
Special
Economic
Zone.
Additional
functions of
Approval
Committee.
Single
application
form; return;
etc.

Agency to
inspect.
Single
enforcement
officer or
agency for
notified
offences.
Investigation,
inspection
and search
or seizure.
Designated
Courts to try
suits and
notified
offences.
Appeal to
High Court.
(b) prescribe a single form for furnishing returns or information by a Developer
or an entrepreneur under one or more State Acts.
6. Notwithstanding anything contained in any other law for the time being in
force, the Government may, by notification, authorise any officer or agency to carry
out surveys or inspection for securing of compliance with the provisions of any State
Act by a Developer or an entrepreneur, as the case may be, and such officer or
agency shall submit verification and compliance reports in such manner and within
such time as may be specified in the said notification.
7. (1) The Government may, by notification, specify any act or omission made
punishable under any State Act as notified offence for the purposes ofthis Act.
(2) The Government may, by general or special order, authorise any officer
or agency to be the enforcement officer or agency in respect of any notified offence
or offences committed in a Special Economic Zone.
(3) Every officer or agency authorised under sub-section (2) shall have all
the corresponding powers of investigation, inspection, search or seizure as is
provided under the relevant State Act in respect ofthe notified offences.
8. The officer or agency authorised under Section 7 may, with prior intimation to
the Development Commissioner concerned, carry out the investigation, inspection,
search or seizure in the Special Economic Zone or in a Unit, if such officer or
agency has reasons to believe (reasons to be recorded in writing) that a notified
offence has been committed or is likely to be committed in the Special Economic
Zone:
Provided that no investigation, inspection, search or seizure shall be carried
out in a Special Economic Zone by any officer or agency other than those referred
to in sub-section (2) of Section 7 without prior approval of the Development
Commissioner concerned.
9. (1) The Government may, with the concurrence of the Chief Justice of the
High Court of Madras, designate one or more Courts,-
(a) to try all suits of a civil nature arising in the Special Economic Zone;
and
(b) to try notified offences committed in the Special Economic Zone.
(2) No Court, other than the Court designated under sub-section (1), shall try
any suit or conduct the trial of any notified offence referred to in that sub-section:
Provided that the Court in which any suit of a civil nature in a Special
Economic Zone had been filed before the commencement of this Act shall continue
to try such suit after such commencement:
Provided further that the Court in which any trial of any notified offence is
being conducted before the commencement of this Act shall continue to Conduct
the trial of such offence after the commencement of this Act:
Provided also that the Court competent to try any notified offence before the
commencement of this Act shall conduct the trial in respect of such offence
committed after the commencement of this Act until the Courts have been
designated under sub-section (1) and all such cases relating to such trials shall,
thereafter, be transferred to such Courts so designated which shall conduct the trial
from the stage at which such cases were so transferred.
10. Any person aggrieved by any decision or order of the Court designated
under sub-section (1) of Section 9 may file an appeal to the High Court within sixty
days from the date of communication of the decision or order of the Court so
designated to him on any question of fact or law arising out of such order:

Tamil Nadu Act
1 of 1959.
Tamil Nadu Act
14 of 1970.
Tamil Nadu Act
13 of 1990.
Tamil Nadu Act
20 of 2001.
Tamil Nadu Act
6 of 1981.
Tamil Nadu Act
X of 1939.
Tamil Nadu Act
22 of 1983.
Tamil Nadu Act
12 of 2003.
Provided that the High Court may, if it is satisfied that the appellant was
prevented by sufficient cause from filing an appeal within the said period, allow it to
be filed within a further period not exceeding sixty days.
11. (1) Where a notified offence has been committed by a company, every
person, who at the time the notified offence was committed was in charge of, and
was responsible to, the company for the conduct of the business of the company,
as well as the company, shall be deemed to be guilty of the notified offence and
shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such
person liable to any punishment provided for the notified offence, if he has proved
that the notified offence was committed without his knowledge or that he had
exercised all due diligence to prevent the commission of such notified offence.
(2) Notwithstanding anything contained in sub-section (1), where a notified
offence has been committed by a company and it is proved that the notified offence
has been committed with the consent or connivance of, or is attributable to any
neglect on the part of, any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer shall also be deemed to
be guilty of the notified offence and shall be liable to be proceeded against and
punished accordingly.
Explanation.- For the purposes ofthis Section,-
(a) "company" means any body corporate and includes a firm or other
association of individuals; and
(b) "director", in relation to a firm, means a partner in the firm.
12. (1) Subject to the provisions of sub-section (2), every Developer or
entrepreneur shall be entitled to the following exemptions, namely:-
(a) exemption from the levy of taxes on the sale or purchase of goods
under the Tamil Nadu General Sales Tax Act, 1959 if such goods are meant to
carry on the authorised operations by the Developer or entrepreneur;
(b) exemption from the tax payable under the Tamil Nadu Additional Sales
Tax Act, 1970;
(c) exemption from the tax payable under the Tamil Nadu Tax on Entry of
Motor Vehicles into Local Areas Act, 1990;
(d) exemption from the tax payable under the Tamil Nadu Tax on Entry of
Goods into Local Areas Act, 2001;
(e) exemption from the tax payable under the Tamil Nadu Tax on Luxuries
Act, 1981;
(f) exemption from the tax payable under the Tamil Nadu Entertainments
Tax Act, 1939;
(g) exemption from the tax payable under the Tamil Nadu Advertisement
Tax Act, 1983;
(h) exemption from the tax payable under the Tamil Nadu Tax on
Consumption or Sale of Electricity Act, 2003 for electricity sold or consumed in a
Special Economic Zone.
(2) The Government may prescribe the manner in which, and the terms and
conditions subject to which, the exemptions shall be granted to the Developer or
entrepreneur under sub-section (1).
Offences by
companies.
Exemptions to
every
Developer and
entrepreneur.

Duration of
exemptions.
Transfer of
ownership
and removal
of goods.
Domestic
clearance by
Units.
Powerto
modify
provisions of
this Act or
other
enactments
in relation to
Special
Economic
Zones.
Constitution of
Authority.
13. The Government may prescribe the period during which any goods brought
into, or services provided in, any Unit or Special Economic Zone without payment of
taxes shall remain or continue to be provided in such Unit or Special Economic
Zone.
14. The 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, subject to such terms and conditions as may be
prescribed.
15. Subject to the conditions specified in the rules made by the Government in
this behalf,-
(a) any goods removed from a Special Economic Zone to the Domestic
Tariff Area shall be chargeable to sales tax and additional sales tax under the Tamil
Nadu General Sales Tax Act, 1959 and the Tamil Nadu Additional Sales Tax Act,
1970 and the entry tax under the Tamil Nadu Entry of Motor Vehicles into Local
Areas Act, 1990 and the Tamil Nadu Entry of Goods into Local Areas Act, 2001,
where applicable, as leviable on such goods when imported; and
(b) the rate of sales tax, additional sales tax and entry tax, if any, applicable
to goods removed from a Special Economic Zone shall be at the rate in force as on
the date of such removal, and where such date is not ascertainable, on the date of
payment of tax.
16. (1) The Government may, by notification, direct that any of the provisions
of this Act (other than Section 12) or any other State Act, any rules or regulations
made thereunder or any notification or order issued or direction given thereunder
(other than the provisions relating to making ofthe 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 State Act or any rules or regulations 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 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 the Legislative Assembly, 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, the Assembly agrees in
disapproving the issue of the notification or the Assembly agrees 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 by the
Assembly.
17. (1) The Government shall, by notification, constitute for every Special
Economic Zone (other than those established by the Central Government) an
Authority to exercise the powers conferred on, and discharge the functions
assigned to it under this Act.
Tamil Nadu Act
1 of 1959.
Tamil Nadu Act
14 of 1970.
Tamil Nadu Act
13 of 1990.
Tamil Nadu Act
20 of 2001.

(2) Every Authority shall be a body corporate having perpetual succession
and a common seal; with a power; subject to the provisions of this Act; to acquire;
hold and dispose of property; both movable and immovable; and to contract and
shall sue and be sued.
(3) The head office of every Authority shall be at such place as the
Government may specify in the notification referred to in sub-section (1).
(4) Every Authority shall consist of-
(a) One member representing the Developer to be nominated by the
Government; who shall be the Chairperson;
(b) One officer each representing the Departments of Factories; Public
Health and Town and Country Planning at such rank as may be determined and
nominated by the Government in this behalf;
(c) One member nominated by the Government from among the
entrepreneurs;
(d) One member nominated by the Government having special knowledge
in matters relating to technical or other aspects of industrial units situated in the
Special Economic Zone;
(e) One member nominated by the Government to represent the interests of
persons employed in the industrial units situated in the Special Economic Zone.
(f) Chief Executive ofthe Authority.
(5) The term of office of the members of an Authority (other than Ex-officio
members) shall be such as may be prescribed.
(6) An Authority may associate with itself in such manner; subject to such
conditions and for such purposes as may be prescribed; any person whose
assistance or advice it requires in discharging its functions effectively and that
person shall be entitled to receive such allowances or fees as may be fixed by the
Authority.
(7) One-third of the total members of the Authority shall form a quorum; and
all the acts of the Authority shall be decided by a majority ofthe members present.
(8) No act or proceeding of an Authority shall be invalidated merely by reason
of-
(a) any vacancy in; or any defect in the constitution of; the Authority; or
(b) any defect in the appointment of a person acting as a member of the
Authority; or
(c) any irregularity in the procedure ofthe Authority not affecting the merits of
the case.
(9) Every Authority shall meet at such times and places and shall observe
such rules of procedure in regard to the transaction of business at its meetings
(including quorum at such meetings) as may be prescribed.
18. (1) Every Development Commissioner of the Special Economic Zone; for
which he is appointed as such; shall be the Chief Executive of the Authority
concerned and exercise such powers and perform such functions as may be
prescribed.
(2) Every Authority may appoint such officers and employees; as it considers
necessary for the efficient discharge of its functions under this Act.
Officers of
Authority and
other staff.

Functions of
Authority.
Constitution of
Fund and its
application.
Accounts and
audit.
Directions by
Governm ent.
(3) The method of appointment; the conditions of service and the scales of
pay and allowances of such officers and employees appointed under sub section
(2) shall be such as may be prescribed.
19. (1) Subject to the provisions ofthis Act; it shall be the duty of each Authority
to undertake such measures as it thinks fit for the development; operation and
management ofthe Special Economic Zone for which it is constituted.
(2) Without prejudice to the generality of the provisions of sub-section (1);
the measures referred to therein may provide for-
(a) the development of infrastructure in the Special Economic Zone;
(b) promoting exports from the Special Economic Zone;
(0) reviewing the functioning and performance of the Special Economic
Zone;
(d) levy user or service charges or fees or rent for the use of properties
belonging to the Authority;
(e) performing such other functions as may be prescribed.
20. (1) There shall be established by every Authority a Fund and there shall be
credited thereto-
(a) all grants or loans that may be made to the Authority;
(b) all sums received on account of user or service charges or fees or
rent for the use of properties belonging to the Authority;
(0) all sums received by the Authority from such other sources as may
be decided upon by the Government.
(2) The Fund shall be applied for meeting-
(a) the salaries; allowances and other remuneration of the members;
officers and other employees of the Authority;
(b) the expenses of the Authority in the discharge of its functions under
Section 19;
(c) repayment of any loan;
(d) the expenses on objects and for purposes authorised by this Act;
(e) meeting any other administrative expenses of the Authority.
21. (1) Every Authority shall maintain proper accounts and other relevant records
and prepare an annual statement of accounts in such form as may be prescribed.
(2) The accounts of every Authority shall be audited by such authority and at
such intervals as may be prescribed and any expenditure incurred in connection
with such audit shall be payable by the Authority.
(3) The accounts of every Authority as certified by the prescribed authority
together with the audit report thereon shall be forwarded annually to the
Government and the Government shall cause the same to be laid before the
Legislative Assembly.
22. Every Authority shall be bound to carry out such directions as may be
issued to it; from time to time; by the Government for the efficient administration of
this Act.

Central Act
XLV of 1860.
23. (1) Every Authority shall furnish to the Government at such time and in
such form and manner as may be prescribed or as the Government may direct,
such returns and statements and such particulars in regard to the promotion and
development of exports and the operation and maintenance of the Special
Economic Zone and Units as the Government may, from time to time, require.
(2) Without prejudice to the provisions of sub-section (1), every Authority
shall, as soon as possible, after the end of each financial year, submit to the
Government a report in such form and before such date, as may be prescribed,
giving a true and full account of its activities, policy and programmes during the
previous financial year.
(3) A copy of every report received under sub-section (2) shall be laid, as
soon as may be, after it is received, before the Legislative Assembly.
24. (1) If, at any time, the Government is of the opinion that an Authority is
unable to perform, or has persistently made default in the performance of the duty
imposed on it by or under this Act or has exceeded or abused its powers, or has
wilfully or without sufficient cause, failed to comply with any direction issued by the
Government under Section 20, the Government may, by notification, supersede the
authority for such period not exceeding six months, as may be specified in the
notification:
Provided that before issuing a notification under this sub-section, the
Government shall give reasonable time to that Authority to make representation
against the proposed supersession and shall considerthe representations, if any, of
the Authority.
(2) Upon the publication of a notification under sub-section (1) superseding
the Authority,-
(a) the Chairperson and other members of the Authority shall,
notwithstanding that their term of office has not expired as from the date of
supersession, vacate their offices as such;
(b) all the powers, functions and duties which may, by or under the
provisions of this Act, be exercised or discharged by or on behalf of the Authority
shall, during the period of supersession, be exercised and performed by such
person or persons as the Government may direct;
(c) all property vested in the Authority shall, during the period of
supersession, vest in the Government.
(3) On the expiration of the period of supersession specified in the
notification issued under sub-section (1), the Government may,-
(a) extend the period of supersession for such further period not
exceeding six months; or
(b) reconstitute the Authority in the manner provided in Section 17.
25. All the members, officers and other employees of the Authority and all the
officers and employees of the Government shall, when acting or purporting to act in
pursuance of any of the provisions of this Act or the rules made under this Act, be
deemed to be public servants within the meaning of section 21 of the Indian Penal
Code.
26. No suit, prosecution or other legal proceeding shall lie against the Authority
or its members or any officer or other employee of the Authority or of the
Government for anything done or intended to be done in good faith underthis Act.
Returns and
reports.
Power to
supersede
Authority.
Members,
officers and
employees of
Authority and
Government to
be public
servants.
Protection of
action taken in
good faith.

Acquisition of
land for
Special
Economic
Zone.
Act to have
overriding
effect.
Powerto make
rules.
Power to
remove
difficulties.
Savings.
Repeal and
Saving.
27. (1) The Government may, on a request from a Developer for acquisition of
land for establishment of a Special Economic Zone, acquire the required land under
the Tamil Nadu Acquisition of Land for Industrial Purposes Act, 1997 and transfer
the land to the Developer on payment of the cost of the acquisition including the
cost of the Land Acquisition Staff, if any, appointed by the Government.
(2) The Government may also transfer any land owned by them to the
Developer subject to such terms and conditions as may be fixed by them.
28. The provisions ofthis Act shall be in addition to and not in derogation of the
Special Economic Zones Act, 2005 and shall have effect notwithstanding anything
inconsistent therewith contained in any other State law for the time being in force.
29. (1) The Government may, by notification, make rules for carrying out the
purposes of this Act.
(2) Every rule or order made or notification issued under this Act shall, as
soon as possible, after it is made or issued, be placed on the Table of the
Legislative Assembly and if, before the expiry of the session in which it is so placed
or the next session, the Assembly makes any modifications in any such rule or
order or notification or the Assembly decides that the rule or order or notification
should not be made or issued, the rule or order or notification 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 or order or notification.
30. (1) If any difficulty arises in giving effect to the provisions of this Act, the
Government may, by order published in the Tamil Nadu Government Gazette, make
such provisions not inconsistent with the provisions of this Act and the Special
Economic Zones Act, 2005 as appear to them to be necessary or expedient for
removing the difficulty:
Provided that no such order shall be made after the expiry of a period of two
years from the date of commencement of this Act.
(2) Every order made under this Section shall be placed on the Table of the
Legislative Assembly as soon as may be, after it is made.
31. All rules made or purporting to have been made or all notifications issued or
purporting to have been issued under any State Act relating to the Special
Economic Zone shall, in so far as they relate to matters for which provision is made
in this Act or rules made or notification issued under this Act 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.
32. (1) The Tamil Nadu Special Economic Zones (Special Provisions) Ordinance,
2005 is hereby repealed.
(2) Notwithstanding such repeal, anything done or any action taken under the
said Ordinance shall be deemed to have been done or taken underthis Act.
Tamil Nadu Act
10 of 1999.
Central Act 28
of 2005.
Central Act
28 of 2005.
Tamil Nadu
Ordinance
6 of 2005

‹ Prev All Tamil Nadu acts Next ›