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2020 (5) TMI 174 - HC - CustomsEstablishment of Special Economic Zone (SEZ) - Cancellation of Co-developer status of the petitioner - Challenge to approval granted by the respondent No.1-Board to the proposal to grant co-developer status to the respondent No.4 in the SEZ at Dahej - Auction of plot by the bank after the default in payment of the loan taken from SIDBI by the petitioner - HELD THAT:- Though the petitioner was granted approval of co-developer and a co-developer agreement was executed between the petitioner and the respondent No.3, who is a developer.the petitioner did not pay the due outstanding service charges from 2013 onwards. Moreover, thereafter plot allotted to the petitioner was sold in auction and sale certificate was issued in favour of the four persons, who are directors of the respondent No.4-Company. The Board of Approval- respondent No.1 was justified in taking the decision to approve the status of co-developer to the respondent No.4 who was handed over the possession by the SIDBI after the auction sale. Therefore, as per Section 2(f) of the SEZ Act, which defines 'Co-developer' means a person who, or a State Government which, has been granted a letter of Approval under sub-section (12) of section 3 by the Central Government. The contentions raised by the petitioner that provision of Section 10 would be applicable for the suspension and transfer of letter of Approval as a co-developer would not be applicable in the facts of the case as the petitioner has lost the status of codeveloper pursuant to the transfer of plot in question to the respondent No.4 in the auction held by the SIDBI under the provisions of the Securitisation Act - it would be necessary to refer to the provisions of Section 35 of the Act, which provides for finality of the actions taken under the Securitisation Act. Moreover, reference to Rule 2(s) of the Rules which prescribes the procedure for the purpose of suspension and transfer of letter of approval as provided in Section 10 of SEZ Act would also be of no assistance to the petitioner as no action is required to be taken under the provisions of Section 10 of the SEZ Act as the same would not be applicable. The contentions raised on behalf of the petitioner, relying upon Section 10 of the SEZ Act read with Section 2(s) is without any basis - As the petitioner had challenged the action under Securitisation Act before the Debt Recovery Tribunal, and having failed in such action of challenge to get any interim order or final order, the petitioner cannot now challenge the action of the respondent No.1 granting request of approval status of co-developer in favour of the respondent No.4. The contentions raised on behalf of the petitioner are therefore required to be rejected as it was only last attempt to see that the auction sale effected in favour of the respondent No.4 is not being given effect to by the respondent Nos.1 and 3. Though prima facie arguments canvassed on behalf of the petitioner look attractive but considering the facts of the case as well as the provisions of the Securitisation Act and SEZ Act, the same are required to be rejected - As no action is required to be taken under the provisions of the SEZ Act for suspension or transfer or cancellation of letter of Approval in favour of the petitioner which has become redundant and extinguished in view of auction sale by the SIDBI, analyzing and/or applying the provisions of Section 10, 13 and 51 of the Act would be an academic exercise. It emerges from the materials on record, the respondent Nos. 1 and 3 have only given effect to the actions taken by the SIDBI under the Securitisation Act to grant the request for approval of co-developer status to respondent No.4 subject to the conditions specified in the decision dated 04.04.2018 of the respondent No.1 - petition dismissed.
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