Analyse the powers of the Central Government to supersede the Special Economic Zone Authority under the Special Economic Zones Act, 2005. What will be the consequences of its implementation ?
CS Executive · Economic, Commercial and Intellectual Property Laws · PYQS · December 2023
Analyse the powers of the Central Government to supersede the Special Economic Zone Authority under the Special Economic Zones Act, 2005. What will be the consequences of its implementation ?
Answer & Explanation:
Power to Supersede the Authority: Section 40 of the Special Economic Zones Act, 2005 empowers the Central Government to supersede an Authority for a maximum period of six months if at any time, it is of the opinion that the 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 it under Section 38. However, before issuing a notification superseding an Authority, the Central Government is required to give reasonable time to that Authority to make representation against the proposed supersession and consider the representations, if any, of the Authority. Consequences of Supersession: Section 40(2) deals with the consequences of publication of the notification superseding the Authority, providing that: the Chairperson and other Members of the Authority shall, notwithstanding that their term of office has not expired, vacate their offices as such from the date of supersession; all the powers, functions and duties which may, by or under the provisions of the 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 Central Government may direct; all property vested in the Authority shall, during the period of supersession, vest in the Central Government. Section 40(3) also provides that on the expiration of the period of supersession specified in the notification, the Central Government may extend the period of supersession for such further period not exceeding six months or reconstitute the Authority in the prescribed manner.
Topics: Special Economic Zones Act, 2005
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