TMI BlogAlternate method for transfer of space by an exiting unit under Rule 74 of the SEZ Rules, 2006X X X X Extracts X X X X X X X X Extracts X X X X ..... 4 or 74A of SEZ Rules, 2006 . Representations were received from stakeholders including SGJMA expressing difficulties in following the extant procedures as the exiting units are not able to recover the value of their financial assets. 2. The matter has been examined in consultation with concerned stakeholders. In order to facilitate smooth operation of business activities by SEZ units and for the ease of doing business, following clarifications are issued for transfer of space under the extant provisions of Rule 74 of SEZ Rules, 2006 :- 1. The SEZ Authority shall engage an independent valuer to assess the current value of the physical assets as well as financial assets, in the nature of unutilized portion of any upfront ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that specific category (SDF/Plot, as the case may be) in the previous quarter. 7. The winning bid shall be the highest bid for lease rent payable. 8. If such winning bid is higher than the amount indicated initially by the potential buyer identified by the exiting unit, the bidder who had submitted the highest bid in the e- auction process shall emerge as the successful entity of the e-auction process and shall be issued a LoA by following due process. 9. If the highest bid in the e-auction process is less than the amount indicated initially by the potential buyer identified by the exiting unit, such identified buyer shall emerge successful in the e-auction process and the lease rent shall be the amount indicated initially by the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it by the UAC. 3. On receipt of in-principle approval, the exiting Unit shall complete its process of exit by clearing all statutory and non-stautory dues of Customs, Estate and other concerned authorities, if any. In case of any hypothecation, necessary clearance shall be obtained from the bank or ARC or any other agency, as the case may be. 4. The exiting Unit shall furnish a copy each of following documents to the office of the DC:- (a) Copy of the in-principle approval of the proposed incoming Unit along with valid LoA and valid sub-lease agreement as on date of the exiting Unit. (b) Certificate from independent valuer in respect of total value of the assets (physical and financial). (c) No Dues certificate from the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority the value of the assets - Sdepreciated value of the physical assets left behind as well as fair value of the unutilised portion of financial assets, if any as determined by the independent valuer which would be transferred to the exiting unit by the SEZ Authority. 10. The independent valuer shall follow the following formulation for arriving at the fair value of the unutilised portion of the lumpsum amount made as upfront payment by the exiting unit. The lump-sum amount received at the time of allotment of space could be considered to be in the nature of a lumpsum deposit received from the unit which is to be amortised in equal value per year across the entire tenure of lease based on a straight-line method. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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