Explain under what circumstances the Central Government is empowered to supersede any authority constituted under Special Economic Zones Act, 2005? What will be the consequences if such power is exercised by Central Gove

CS Executive · Economic, Business and Commercial Laws · PYQS · June 2019
Explain under what circumstances the Central Government is empowered to supersede any authority constituted under Special Economic Zones Act, 2005? What will be the consequences if such power is exercised by Central Government ?

Answer & Explanation:

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 an Authority is unable to perform, or has persistently made default in the performance of the duty imposed on it or has exceeded or abused its powers, or has wilfully or without sufficient cause, failed to comply with any direction issued by it. 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 suppression and consider the representations, if any, of the Authority. Section 40(2) of the Special Economic Zones Act, 2005 dealing with the consequences of publication of the notification superseding the Authority provides that 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; 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.

Topics: Special Economic Zones (SEZ) Act, 2005

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