"The developer (SCSL) has requested for de-notification of the SEZ stating that the Government of Andhra Pradesh has transferred the land to Indian Navy," an official in the Commerce Ministry said.
The request for denotification of the SCSL will be placed before the Board of Approval (BoA) which is scheduled to meet here on May 31.
The IT/ITeS SEZ was notified on June 1, 2007 over an area of 20 hectares. In the meanwhile, the Andhra Pradesh government has transfered the land to Navy for establishment of a Wireless Experimental Unit.
Though the state government has decided to allot 50 acres alternate land for the SEZ project, it has not been handed over to the Hyderabad-based software company, which has been struggling to come out of the accounting fraud confessed to by its founder B Ramalinga Raju.
The company has since been taken over by Mahindra group and rechristened Mahindra Satyam.
"In view of the delay in allocation of alternate land, the developer has requested for denotification of the SEZ, as technically it is not valid to hold the SEZ status for an area which has since been allocated to Indian Navy by the Government," he said.
No duty benefits have been availed of for the project by the developer. Thus, there should not be any difficulty for the company to get a denotification of its IT/ITeS SEZ.
The BoA is headed by Commerce Secretary Rahul Khullar and is responsible for approving or denotifying the tax fee enclaves.
