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Special Economic Zones Act, 2005

31. Constitution of Authority

1.      The Central Government shall, by notification in the Official Gazette, constitute, for every Special Economic Zone established by it before the commencement of this Act or which may be established after such commencement by the Central Government, an Authority to be called the ................................ (name of the Special Economic Zone) Authority to exercise the powers conferred on, and discharge the functions assigned to it under this Act:

Provided that in respect of existing Special Economic Zones established by the Central Government, such Authority shall be constituted by the Central Government within six months from the date of commencement of this Act:

Provided further that until such Authority is constituted, the person or the authority (including the Development Commissioner) exercising control over such existing Special Economic Zones shall continue to exercise such control over the Special Economic Zone till the Authority is constituted.


2.      Every Authority shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with a power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to contract and shall, by the said name, sue and be sued.

3.      The head office of every Authority shall be at such place as the Central Government may specify in the notification referred to in sub-section (1).

4.      Any Authority may, with the previous approval of the Central Government, establish branch offices at other places in India.

5.      Every Authority shall consist of-

a.      The Development Commissioner of the Special Economic Zone over which the Authority exercise its jurisdiction - Chairperson, ex officio;

b.     two officers of the Central Government to be nominated by that Government having knowledge of, or experience in, dealing with matters relating to Special Economic Zones - Members, ex officio;

c.      an officer of the Government of India in the Ministry or Department dealing with commerce on matters relating to Special Economic Zone - Member, ex officio;

d.     not more than two persons, being entrepreneurs or their nominee, to be nominated by the Central Government - Members, ex officio.






6.      The term of office of the Members of an Authority (other than ex officio Members) and the manner of filling of vacancies shall be such as may be prescribed.

7.      An Authority may associate with itself in such manner, subject to such conditions and for such purposes as may be prescribed, any person whose assistance or advice it requires in discharging its functions effectively and that person shall be entitled to receive such allowance or fees as may be fixed by the Authority.

8.      One-third of the total Members of the Authority shall form a quorum, and all the acts of the Authority shall be decided by a majority of the members present.

9.      No act or proceeding of an Authority shall be invalidated merely by reason of-

a.      any vacancy in, or any defect in the constitution of, the Authority; or

b.     any defect in the appointment of a person acting as a Member of the Authority; or

c.      any irregularity in the procedure of the Authority not affecting the merits of the case.










10.   Every Authority shall meet at such times and places and shall observe such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be prescribed.

Special Economic Zones Act, 2005 Back

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