When the Board of Approval is empowered to suspend the letter of approval granted to the developer under Special Economic Zone (SEZ) Act, 2005.

Section 10 of the Special Economic Zone (SEZ) Act, 2005 empowers the Board of Approval to suspend the letter of approval granted to the Developer for a whole or part of his area established as Special Economic Zone for a period not exceeding one year. The suspension may be ordered by the Board, if in its opinion following circumstances exist: the developer is unable to discharge the functions or perform the duties imposed on him; or the developer has persistently defaulted in complying with the directions of the Board; or the developer has violated the terms and conditions of the letter; or the financial position of the developer is such that he is unable to fully and efficiently discharge the duties and obligations imposed on him by the letter of approval.