Citizens’ Research Collective on SEZ

M.P. Praveen

Kochi, March 18, 2008: Waiver of stamp and registration fee for TECOM, the promoters of the Smart City project, depends on whether the Centre endows the Special Economic Zone (SEZ) status on the company, Minister for Registration S. Sarma has said.

Talking to The Hindu over telephone on Monday, Mr. Sarma said there was no provision for the State government to waive the stamp and registration fees.

In this context, the meeting of the Board of Approval for Special Economic Zone (SEZ) of the Union government, scheduled for Thursday, might prove crucial since it is expected to consider the TECOM’s application.

If the meeting accords SEZ status, the lease agreement could be registered without paying the registration fee (Rs.2 crore) and stamp duty (Rs.10 crore). Mr. Sarma was optimistic of TECOM receiving the SEZ status.

Meanwhile, there were apprehensions that TECOM would now have to pay a hefty penalty for registration since the mandatory four-month period within which the agreement was supposed to be registered had expired on March 15.

According to the existing registration rules, the lease agreement should be registered in four months from the date it is entered into. Registration after this would attract a fine double the amount of the original registration fee and it would keep increasing with further delay.

Mr. Sarma, however, said this concern was unfounded, as the State government could decide whether to press for the fine or not. In the event, TECOM fails to receive the SEZ status, the Cabinet could consider the issue and grant the company a fine exemption, he said. He, however, said the legalities of the issue would have to be examined.

The meeting of the Board of Approval held in February had postponed a decision on according SEZ status following a complaint of forcible displacement by a person evicted for the project site. Following this, the Board had set aside the matter pending clarification from the State government.

The next meeting would reconsider the TECOM’s application as the State government had forwarded the clarification in the last week of February based on a report by the District Collector.

Source: The Hindu