A Special Economic Zone (SEZ) is a geographical region that has economic laws that are more liberal than

a countrys typical economic laws. An SEZ is a trade capacity development tool, with the goal to promote rapid economic growth by using tax and business incentives to attract foreign investment and technology.SEZs are projected as duty free area for the purpose of trade, operations, duty and tariffs. SEZ units are self-contained and integrated having their own infrastructure and support services. Within SEZs, a units may be set-up for the manufacture of goods and other activities including processing, assembling, trading, repairing, reconditioning, making of gold/silver, platinum jewellery etc. As per law, SEZ units are deemed to be outside the customs territory of India. Goods and services coming into SEZs from the domestic tariff area or DTA are treated as exports from India and goods and services rendered from the SEZ to the DTA are treated as imports into India. The category SEZ covers a broad range of more specific zone types, including Free Trade Zones (FTZ), Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports, Urban Enterprise Zones and others. Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a multinational corporation (MNC). In the Peoples Republic of China, Special Economic Zones were founded by the central government under Deng Xiaoping in the early 1980s. The most successful Special Economic Zone in China, Shenzhen, has developed from a small village into a city with a population over 10 million within 20 years Today, there are approximately 3,000 SEZs operating in 120 countries, which account for over US$ 600 billion in exports and about 50 million jobs. By offering privileged terms, SEZs attract investment and foreign exchange, spur employment and boost the development of improved technologies and infrastructure. There are 13 functional SEZs and about 61 SEZs, which have been approved and are under the process of establishment in India. The SEZ policy was first introduced in India in April 2000, as a part of the Export-Import (EXIM) policy of India. Considering the need to enhance foreign investment and promote exports from the country and realizing the need that level playing field must be made available to the domestic enterprises and manufacturers to be competitive globally, the Government of India in April 2000 announced the introduction of Special Economic Zones policy in the country deemed to be foreign territory for the purposes of trade operations, duties and tariffs. To provide an internationally competitive and hassle free environment for exports, units were allowed be set up in SEZ for manufacture of goods and rendering of services. All the import/export operations of the SEZ units is on self-certification basis. The units in the Zone are required to be a net foreign exchange earner but they wouldl not be subjected to any pre-determined value addition or minimum export performance requirements. Sales in the Domestic Tariff Area by SEZ units is subject to payment of full Custom Duty and as per import policy in force. Further Offshore banking units are being allowed to be set up in the SEZs.

The policy provides for setting up of SEZs in the public, private, joint sector or by State Governments. It is also being envisaged that some of the existing Export Processing Zones would be converted into Special Economic Zones. Accordingly, the Government has converted Export Processing Zones located at Kandla and Surat (Gujarat), Cochin (Kerala), Santa Cruz (Mumbai-Maharashtra), Falta (West Bengal), Madras (Tamil Nadu), Visakhapatnam (Andhra Pradesh) and Noida (Uttar Pradesh) into a Special Economic Zones. In addition, 3 new Special Economic Zones were approved for establishment at Indore (Madhya Pradesh), Manikanchan Salt Lake (Kolkata) and Jaipur and have already commenced operations. India is one of the first countries in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports. Asias first EPZ was set up in Kandla in 1965. With a view to create an environment for achieving rapid growth in exports, a Special Economic Zone policy was announced in the Export and Import (EXIM) Policy 2000. Under this policy , one of the main features is that the designated duty free enclave to be treated as foreign territory only for trade operations and duties and tariffs. No licence required for import. The manufacturing, trading or service activities are allowed. To provide a stable economic environment for the promotion of Export-import of goods in a quick, efficient and hassle-free manner, Government of India enacted the SEZ Act, which received the assent of the President of India on June 23, 2005. The SEZ Act and the SEZ Rules, 2006 (SEZ Rules) were notified on February 10, 2006. The SEZ Act is expected to give a big thrust to exports and consequently to the foreign direct investment (FDI) inflows into India, and is considered to be one of the finest pieces of legislation that may well represent the future of the industrial development strategy in India. The new law is aimed at encouraging public-private partnership to develop world-class infrastructure and attract private investment (domestic and foreign), boosting economic growth, exports and employment. The Ministry of Commerce and Industry lays down the regulations that govern the setting up and administering of the SEZs. The Central Government isfunctioning, while the State Governments play a significant lead role in the development of SEZs in their respective States by stipulating the conditions to be adhered to by an SEZ and granting the necessary approvals. The policy framework for SEZs has been enacted in the SEZ Act and the supporting procedures are laid down in SEZ Rules. Histroy of Special Economic Zones (SEZ) The world first known instance of SEZ have been found in an industrial park set up in Puerto Rico in 1947. In the 1960s, Ireland and Taiwan followed suit, but in the 1980s China made the SEZs gain global currency with its largest SEZ being the metropolis of Shenzhen. From 1965 onwards, India experimented with the concept of such units in the form of Export Processing Zones (EPZ). But a revolution came in 2000, when Murlisone Maran, then Commerce Minister, made a tour to the southern provinces of China. After returning from the visit, he incorporated the SEZs into the Exim Policy of India. Five year later, SEZ Act (2005) was also introduced and in 2006 SEZ Rules were formulated.

Salient features of SEZ The salient features of the Indian SEZ initiative further include the following points: 1. Unlike most of the international instances where zones are primarily developed by governments, the Indian SEZ policy provides for development of these zones in the government, private or joint sector. This is meant to offer equal opportunities to both Indian and international private developers. 1. 100 per cent FDI is permitted for all investments in SEZs, except for activities included in the negative list. 1. SEZ units are required to be positive net foreign-exchange earners and are not subject to any minimum value addition norms or export obligations. 1. Goods flowing into the SEZ area from a domestic tariff area (DTA) are treated as exports, while goods coming from the SEZ into a DTA are treated as imports. In addition to the duty exemptions, the units in the Indian SEZs do not have to pay any income tax for the first five years and only pay half their tax liability for the next two. SEZ developers also enjoy a 10-year tax holiday. The size of an SEZ varies depending on the nature of the SEZ. At least 50 per cent of the area of multi-product or sector specific SEZs must be used for export purposes. The rest can include malls, hotels, educational institutions, etc. Besides providing state-of-the-art infrastructure and access to a large, well-trained and skilled workforce, the SEZ policy also provides enterprises and developers with a favourable and attractive range of incentives. Benefits of SEZ Apart from providing state-of-the-art infrastructure and access to a large well-trained and skilled work force, the SEZ also provides enterprises and developers with a favorable and attractive framework of incentives which include 100% income tax exemption for a period of five years and an additional 50% tax exemption for two years thereafter. Similarly, 100% FDI is also provided in the manufacturing sector. Exemption from industrial licensing requirements and no import license requirements is also given to the SEZ units. The area under SEZ covers a wide range of zones, including Export Processing Zones (EPZ), Free Zones (FZ), Industrial Estates (IE), Free Trade Zones (FTZ), Free Ports, Urban Enterprise Zones and others. Usually the goal of an SEZ structure is to increase foreign investment in the country.

At present there are fourteen functional SEZs located at Santa Cruz (Maharashtra), Cochin (Kerala), Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam (Andhra Pradesh), Falta and Salt Lake (West Bengal), Nodia (Uttar Pradesh), Indore (Madhya Pradesh), Jaipur (Rajasthan), etc. Attractive incentive and great investment opportunities have attractive many business tycoons to step into the SEZ all over the country. The first step was taken by the Mahindra World City at Chennai. The SEZ was promoted by Mahindra & Mahindra Ltd and later on by the Tamil Nadu Industrial Development Corporation. Mahindra & Mahindra Ltd holds 89% equity in the same. Later on, Reliance Industries also signed a pact with the Haryana government for setting up of the Rs. 25,000 crore multi products SEZ near Gurgaon in 2006. It is compulsory for every SEZ units in India to achieve positive net foreign exchange earning. For this particular purpose, a legal undertaking is required which has to be executed by a separate unit of the Development Commissioner. The is responsible for providing periodic reports to the Development Commissioner and Zone Customs State Governments play a very active role to play in the establishment of SEZ unit. Any proposal for setting up of SEZ unit in the Private / Joint / State Sector is routed through the concerned State government who in turn forwards the same to the Department of Commerce with its recommendations for consideration. Before recommending any proposals to the Ministry of Commerce & Industry (Department of Commerce), the States Government properly checks all the necessary inputs such as water, electricity, etc required for the establishment of SEZ units. The State Government has to forward the proposal with its recommendation within 45 days from the date of receipt of such proposal to the Board of Approval. The applicant also has the option to submit the proposal directly to the Board of Approval. Representative of the State Government, who is a member of the Inter-Ministerial Committee on private SEZ, is also consulted while considering the proposal.

Special Exconomic Zones Terms And Conditions

Only units approved under SEZ scheme would be permitted to be located in SEZ. 1. The SEZ units shall abide by local laws, rules, regulations or laws in regard to area planning, sewerage disposal, pollution control and the like. They shall also comply with industrial and labour laws as may be locally applicable. 2. Such SEZ shall make security arrangements to fulfill all the requirements of the laws, rules and procedures applicable to such SEZ. 3. The SEZ should have a minimum area of 1000 hectares and at least 35 % of the area is to be earmarked for developing industrial area for setting up of processing units. 4. Minimum area of 1000 hectares will not be applicable to product specific and port/airport based SEZs. 5. Wherever the SEZs are landlocked, an Inland Container Depot (ICD) will be an integral part of SEZs.

Administrative Set up for Special Economic Zones The functioning of SEZs is governed by a three-tier administrative set-up. The Board of Approval is the apex body and is headed by the Secretary, Department of Commerce. The Approval Committee at the Zone level deals with approval of units in the SEZs and other related issues Board of Approval The Board of Approval has been constituted by the Central Government in exercise of the powers conferred under the SEZ Act. All the major decisions are taken by the Board of Approval. The Board of Approval has 19 Members Unit Approval Committee

All the request for setting up of units in the SEZ are approved at the Zone level by the Approval Committee consisting of Development Commissioner after a discussion with the Customs Authorities and representatives of State Government. All post approval clearances in matters related to importer-exporter code number, change in the name of the company or implementing agency; broad banding diversification, etc. are given at the zonal level by the Development Commissioner. A separate units is also there who monitor the performance of the SEZ units on a periodic basis and is governed by the Approval Committee. SEZ units are liable for penal action under the provision of Foreign Trade (Development and Regulation) Act, in case of any violation in the rules formulated by the Approval Committee. SEZs / EOUs, each zone are headed by a Development Commissioner, who is also heading the Unit Approval Committee. Development Commissioner is the nodal officer for SEZs and help in resolution of problem, if any, faced by the units or developer. In all SEZs, the statutory functions are controlled by the Government while the rest of the operations are privatized Advantages and Disadvantages of SEZ A SEZ unit which has been set up for carrying on manufacturing, trading or service activity has both advantages as well as disadvantages. SEZ advantages are quite far more as compared to its disadvantages which are almost negligible. 15 year corporate tax holiday on export profit 100% for initial 5 years, 50% for the next 5 years and up to 50% for the balance 5 years equivalent to profits ploughed back for investment. Allowed to carry forward losses. No licence required for import made under SEZ units. Duty free import or domestic procurement of goods for setting up of the SEZ units.

 Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years. Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc. Exemption from Central Excise duty on the procurement of capital goods, raw materials, and consumable spares, etc. from the domestic market. Exemption from payment of Central Sales Tax on the sale or purchase of goods, provided that, the goods are meant for undertaking authorized operations. Exemption from payment of Service Tax. The sale of goods or merchandise that is manufactured outside the SEZ (i.e, in DTA) and which is purchased by the Unit (situated in the SEZ) is eligible for deduction and such sale would be deemed to be exports. The SEZ unit is permitted to realize and repatriate to India the full export value of goods or software within a period of twelve months from the date of export. Write-off of unrealized export bills is permitted up to an annual limit of 5% of their average annual realization. No routine examination by Customs officials of export and import cargo. Setting up Off-shore Banking Units (OBU) allowed in SEZs. OBUs allowed 100% income tax exemption on profit earned for three years and 50 % for next two years. Exemption from requirement of domicile in India for 12 months prior to appointment as Director. Since SEZ units are considered as public utility services, no strikes would be allowed in such companies without giving the employer 6 weeks prior notice in addition to the other conditions mentioned in the Industrial Disputes Act, 1947. The Government has exempted SEZ Units from the payment of stamp duty and registration fees on the lease/license of plots. External Commercial Borrowings up to $ 500 million a year allowed without any maturity restrictions. Enhanced limit of Rs. 2.40 crores per annum allowed for managerial remuneration.

 Revenue losses because of the various tax exemptions and incentives. Many traders are interested in SEZ, so that they can acquire at cheap rates and create a land bank for themselves. The number of units applying for setting up EOUs is not commensurate to the number of applications for setting up SEZs leading to a belief that this project may not match up to expectations Special Economic Zones SEZ Establishment Procedure A SEZ unit can be set up any where in India after fulfilling the following requirements: 1. According to SEZ Act 2005, a Special Economic Zone can be established either jointly or severally by the Central Government, State Government, or any other person involve in the manufacturing of goods. Even a foreign company can also set up SEZ in India. 2. After identifying the proper area a person wishing to establish a SEZ unit may make a proposal to the State Government 3. Notwithstanding anything contained in sub-section (2), any person, who intends to set up a Special Economic Zone, may, after identifying the area, at his option, make a proposal directly to the Board for the purpose of setting up the Special Economic Zone: 4. In case, a State Government intends to set up a Special Economic Zone, it may after choosing the area, forward the proposal directly to the Board of Approval for the purpose of setting up the Special Economic Zone: 5. Every proposal under sub-sections (2) to (4) shall be made in such form and manner containing such particulars as may be prescribed. 6. The State Government may, on receipt of the proposal made under sub-section (2), forward the same together with its recommendations to the Board within a fix period as may be prescribed. 7. Without prejudice to the provisions contained in subsection (8), the Board may, after receipt of the proposal under sub-section (2) to (4), approve the proposal subject to such terms and conditions as it may deem fit to impose, or modify or reject the proposal. 8. The Central Government may prescribe the following requirement for establishment of a Special Economic Zone, namely:o The minimum area of land and other terms and conditions subject to which the Board shall approve, modify or reject any proposal received by it under sub-section (2) to (4) ; and

o The terms and conditions, subject to which the Developer shall undertake the authorised operations and his obligations and entitlements. Provided that different minimum are of land and other terms and conditions referred to in clause (a) may be prescribed by the Central Government for a class or classes of Special Economic Zones. 9. If the Board, Approves without any modification, the proposal received under sub-section (2) to (4), it shall communicate the same to the Central Government; Approves with modifications the proposal received under sub-section (2) to (4), it shall, communicate such modifications to the person or the State Government concerned and if such modifications have been accepted by such person or the State Government, the Board shall communicate the approval to the Central Government; Rejects the proposal, received under sub-section (2) to (4), it shall record the reasons therefore and communicate the rejection to the Central Government which shall intimate to the State Government or the person concerned. 10. The Central Government shall, on receipt of communication under clause (a) or clause (b) of sub-section (9), grant, within such time as may be prescribed, a letter of approval on such terms and conditions and obligations and entitlements as may be approved by the Board, to the Developer, being the person or the State Government concerned: Provided that the Central Government may, on the basis of approval of the Board, approve more than one Developer in a Special Economic Zone in cases where one Developer does not have in his possession the minimum area of contiguous land, as may be prescribed, for setting up a Special Economic Zone and in such cases, each Developer shall be considered as a Developer in respect of the land in his possession. 1. Any person who, or a State Government which, intends to provide any infrastructure facilities in the identified area referred to in sub-section (2) to (4), or undertake any authorised operation may, after entering into an agreement with the Developer referred to in sub-section (10), make a proposal for the same to the Board for its approval and the provisions of sub-section (5) and sub-sections (7) to (10) shall, as far as may be, apply to the said proposal made by such person or State Government. 2. Every person or a State Government referred to in subsection (11), whose proposal has been approved by the Board and who, or which, has been granted letter of approval by the Central Government, shall be considered as a Co-Developer of the Special Economic Zone. 3. Subject to the provisions of this section and the letter of approval granted to a Developer, the Developer may allocate space or built up area or provide infrastructure services to the approved units in accordance with the agreement entered into by him with the entrepreneurs of such Units.

Following necessary document are required before making the final proposal for the SEZ units1. 15 copies of the application shall be submitted to the Chief Secretary of the State, which shall indicate: 2. Name and address of the applicant 3. Status of the promoter (whether private/public or joint sector/ NRIs or state government) 4. Project report The documents for establishment of SEZ shall be submitted with the following details: 1. Location of the proposed Zone with details of existing infrastructure and that proposed to be established, 2. Area of the proposed SEZ and its distance from the nearest Sea Port/Airport/Rail/Road head etc. 3. Financial details and mode of financing the project and viability of the project. 4. Details of foreign equity, if any 5. Whether the zone will allow only certain specific industries or will be a multi-product zone. The State Government shall, forward it along with their commitment to the following to the Department of Commerce, Government of India:

That the area proposed under Special Economic Zone shall be free from any environmental restrictions; Water, electricity and other services would be provided as required; Full exemption shall be given in electricity duty and tax on sale of electricity for self generated and purchased power; Exemption from State Sales Tax, octroi, mandi tax, turnover tax and taxes, duty, Cess, levies on supply of goods from Domestic Tariff Area to SEZ units; That single point clearances system and minimum inspections requirement under State Laws/Rules would be provided. Generation, transmission and distribution of power shall be allowed within the SEZ; The Zone will be declared as a Public Utility Service under the Industrial Disputes Act; All powers under Industrial Dispute Act, 1947 shall be delegated to Development Commissioner. o Section 11(1) of Special Economic Zones Act, 2005 provides that the Central Government may appoint any of its officers not below the rank of Deputy Secretary to the Government of India as the Development Commissioner of one or more Special Economic Zones

Government of India after considering the above proposals may grant in-principle approval for setting up of SEZs. The in-principle approval shall be valid for a period of one year. However, this validity period may be extended by the Department of Commerce, as it may thinks fit. According to Section 3(7) of Special economic Zones Act, 2005, the Board of Approval may accept, modify or reject the proposal depending upon various circumstances. In case of

acceptance, approval is valid for a period of 3 years within which time effective steps shall be taken by the developer to implement the project. Although, this time period can be extended the Department of Commerce depending upon various circumstances. Special Exconomic Zones SEZ Act 2005 Introduction The policy relating to SEZs was earlier contained in Foreign Trade Policy. However, to give a long term and stable policy framework with minimal regulation, the SEZ Act was enacted. In 2005, a comprehensive Special Economic Zones Act 2005 was passed by Parliament in May 2005. The SEZ Act 2005 and the rules of the SEZ Act came into force from February 10, 2006. Investment of the order of Rs 100,000 crore over the next three years with an employment potential of over 500,000 was also expected from the new SEZs, apart from indirect employment during construction period of the SEZs Key Issues The SEZ Act deals primarily with the following matters: Establishment of the SEZ and the various authorities constituted in this connection. Appointment of the Developer, Co-developers and approval for units to be located in the notified area. Exemptions, drawbacks and concessions including exemptions from customs duty (on goods brought into or exported from the SEZ), excise, service tax, securities transaction tax, sales tax and income tax. Offshore Banking Unit & International Financial Services Centre. Setting up of offshore banking units / International Financial Services Centre in SEZs. Notified Offences & Civil Suits. A single enforcement agency/officer for certain notified offences as well as the designation of courts by the state governments for such offences committed in and for civil suits arising in SEZs. Governance: An important feature of the Act is that it provides a comprehensive SEZ policy framework to satisfy the requirements of all principal stakeholders in an SEZ the developer and operator, occupant enterprise, out zone supplier and residents. Earlier, the policy relating to the EPZs/ SEZs was contained in the Foreign Trade Policy while incentives and other facilities offered to the SEZ developer and units were implemented through various notifications and circulars issued by the concerned ministries/departments. This system did not give confidence to investors to commit substantial funds for development of infrastructure and for setting up units. Another major feature of the Act is that it claims to provide expeditious and single window clearance mechanisms. The responsibility for promoting and ensuring orderly development of

SEZs is assigned to the board of approval. It is to be constituted by the central government. While the central government may suo motu set up a zone, proposals of the state governments and private developers are to be screened and approved by the board. At the zone level, approval committees are constituted to approve/reject/modify proposals for setting up SEZ units. In addition, the Development Commissioner (DC) and his/her office is responsible for exercising administrative control over a zone. The labour commissioners powers are also delegated to the DC. Finally, clause 23 requires that designated courts will be set up by the state governments to try all suits of a civil nature and notified offences committed in the SEZs. Affected parties may appeal to high courts against the orders of the designated courts. Incentives: The Act offers a highly attractive fiscal incentive package, which ensures 1. Exemption from custom duties, central excise duties, service tax, central sales taxes and securities transaction tax to both the developers and the units; 2. Tax holidays for 15 years (currently the units enjoy a seven year tax holiday), i e, 100 per cent tax exemption for 5 years, 50 per cent for the next five years, and 50 per cent of the ploughed back export profits for the next five years1; and 3. 100 per cent income tax exemption for 10 years in a block period of 15 years for SEZ developers. Special Economic Zones SEZ Controversy Land, especially agricultural land is a very sensitive issue in India. There are millions of people whose livelihood depends on agricultural land. But the introduction of SEZ in India has resulted in the dispossession of agricultural land and has affected the livelihood of farmer at large. In against of this, farmers first protested to safeguard their interests through litigation and court cases challenging the establishment of SEZs. But later on, the resistance against SEZ in India became massive when political parties also joined the farmers. Jamnagar Incidence In November 2006, farmers from the Jamnagar District in Gujarat moved the High Court of Gujarat and later to the Supreme Court in order to challenge the setting-up of a 10,000-acre (approx. 4,000-ha) SEZ by Reliance Infrastructure. They claimed that the acquisition of large tracts of agricultural land in the villages of the district not only violated the Land Acquisition Act of 1894, but was also in breach of the public interest. This led the Government to consider putting a ceiling on the maximum land area that can be acquired for multi-product zones and decide to go slow in approving SEZs. The Nandigram violence is another famous incidence related to SEZ controversy. Nandigram is a rural area in Purba Medinipur district of the Indian state of West Bengal. It is located about 70

km south-west of Kolkata, on the south bank of the Haldi River, opposite the industrial city of Haldia. In 2007 the West Bengal government decided to allow Salim Group to set up a chemical hub at Nandigram under the SEZ policy. Farmers of that village were against it. So, on the order of the Left Front government on 14 March, 2007, more than 3,000 heavily armed police stormed the Nandigram area. The main objective was to remove the protestors in order to expropriate 10,000 acres of land for a Special Economic Zone (SEZ) to be developed by the Indonesian-based Salim Group. During this incidence, police shot dead at least 14 villagers and wounded 70 more including children and women. The above given examples show the controversies associated with SEZs. No doubts that these commercial hubs started with a lot of premature praise and have now became a bone of contention which is readily exploited by the political forces to the detriment of the peasants, who fear losing their means of livelihood Supreme Court on Land Acquisition The Supreme Court (SC) has sought amendment of a century-old Land Acquisition Act to alleviate the hardships of the original owners of the land acquired. The solution is to make the land-losers beneficiaries of the acquisition so that they welcome the acquisition in future, a bench of former Chief Justice of India KG Balakrishnan, justices RV Raveendran and DK Jain said, while castigating the Bangalore Development Authority (BDA) and the Karnataka government on massive acquisition of farmers land without forming any scheme. The judgment, that could impact the future dispensations on acquisition of land for commercial purposes like SEZ, stressed that development authorities exist to serve the people and not viceversa. The court issued certain guidelines on the mechanism to be adopted for acquisition of land for commercial purposes. It said the state should ensure that the farmer who parts with his land gets reasonable compensation promptly at the time of dispossession, so that he can make alternative arrangements for his rehabilitation and survival. Judges pointed out that the poor farmer who loses his land is reluctant to approach courts as he does not want to incur the wrath of those who have benefited from the wrong action. As a result, land acquirers and authorities supporting them get away with their illegal acquisitions. In case of acquisition for setting up industries or special economic zones, the government should play not only role of a land acquirer but also the role of a protector of the land-losers.

As most agriculturists who lose their lands do not have the expertise or the capacity for a negotiated settlement, the state should act as a benevolent trustee and safeguard their interests, it added. The bench said Land Acquisition Collectors should also become Grievance Settlement Authorities. If the government or Development Authorities act merely as facilitators for industrial or business houses, mining companies and developers or colonisers, to acquire large extent of land ignoring the legitimate rights of land-owners, it leads to resistance, resentment and hostility towards acquisition process, the court warned. In case of acquisition for urban development like housing societies, the land losers can be given a share in the development itself. The bench also recommended a model acquisition of large scale land for planned urban development by forming residential layouts Apex court refuses to stay land acquisition process for SEZ New Delhi, June 2,2010 The Supreme Court refused to stay the land acquisition process relating to the Mukesh Ambani-promoted Mumbai Special Economic Zone in Raigad district of Maharashtra. The Mumbai SEZ had sought the stay on the grounds that if the acquisition is not completed by June 8, the entire process will lapse under the Land Acquisition Act, 1894. A Bench headed by Justice Markandey Katju, while adjourning the matter till June 5, gave liberty to the Ministry of Commerce and Industry, Maharashtra Government and others to file replies in the meantime