law: Special Economic Zones Act, 2005 
  10. Suspension of letter of
  
  approval and transfer of Special Economic Zone in certain cases 
  1.     
  
    If,
  
  at any time, the Board is of the opinion that a Developer-
  a.     
  
    is
  
  unable to discharge the functions or perform the duties imposed on him by or
  
  under the provisions of this Act or rules made thereunder; or
  b.    
  
    has
  
  persistently defaulted in complying with any direction given by the Board under
  
  this Act; or
  c.     
  
    has
  
  violated the terms and conditions of the letter of approval; or
  d.    
  
    whose
  
  financial position is such that he is unable to fully and efficiently discharge
  
  the duties and obligations imposed on him by the letter of approval, and the
  
  circumstances exist which render it necessary for it in public interest so to
  
  do, the Board may, on application, or with the consent of the Developer, or
  
  otherwise, for reasons to be recorded in writing, suspend the letter of
  
  approval, granted to the Developer for a whole or part of his area established
  
  as Special Economic Zone, for a period not exceeding one year and appoint an
  
  Administrator to discharge the functions of the Developer in accordance with
  
  the terms and conditions of the letter of approval and manage the Special
  
  Economic Zone accordingly.
  1.     
  
  
  2.     
  
    Consequent
  
  upon appointment of an Administrator, the management of the Special Economic
  
  Zone of the Developer referred to in sub-section (1) shall vest in the
  
  Administrator.
  3.     
  
    No
  
  letter of approval shall be suspended under sub-section (1) unless the Board
  
  has given to the Developer not less than three months' notice, in writing,
  
  stating the grounds on which it proposes to suspend the letter of approval, and
  
  has considered any cause shown by the Developer within the period of that
  
  notice, against the proposed suspension.
  4.     
  
    The
  
  Board may, instead of suspending the letter of approval under sub-section (1),
  
  permit it to remain in force subject to such further terms and conditions as it
  
  thinks fit to impose, and any further terms or conditions so imposed shall be
  
  binding upon and be complied with by the Developer and shall be of like force
  
  and effect as if they were contained in the letter of approval.
  5.     
  
    In
  
  case the Board suspends a letter of approval under this section, it shall serve
  
  a notice of suspension upon the Developer and fix a date on which the
  
  suspension shall take effect.
  6.     
  
    Upon
  
  suspension of the letter of approval under sub-section (1), the Special
  
  Economic Zone of the Developer referred to in sub-section (5) shall vest in the
  
  Administrator under sub-section (2) for a period not exceeding one year or up
  
  to the date on which the letter of approval for such Special Economic Zone is
  
  transferred, whichever is earlier, in accordance with the provisions contained
  
  in sub-sections (7) and (9), as the case may be.
  7.     
  
    Where
  
  the Board has given notice for suspension of letter of approval under
  
  subsection (5), the Developer may, after prior approval of the Board, transfer
  
  his letter of approval to any person who is found eligible by the Board for
  
  grant of such approval.
  8.     
  
    If
  
  at any time, it appears to the Board that the purpose of the order appointing
  
  the Administrator has been fulfilled or that for any reason it is undesirable
  
  that the order of appointment should remain in force, the Board may cancel the
  
  order the thereupon the Administrator shall be divested of the management of
  
  the Special Economic Zone which shall, unless otherwise directed by the Board,
  
  again vest in the person, being the Developer, in whom it was vested
  
  immediately prior to the date of appointment of the Administrator.
  9.     
  
    Where
  
  the Board suspends the letter of approval, under this section, in respect of
  
  any Developer, the following provisions shall apply, namely:-
  a.     
  
    The
  
  Board shall invite applications for transferring the letter of approval of the
  
  Developer, whose approval has been suspended and select the person or persons,
  
  in accordance with the procedure as may be prescribed, to whom the letter of
  
  approval of the Developer in the Special Economic Zone may be transferred;
  b.    
  
    upon
  
  selection of person or persons under sub-clause (a), the Board may, by notice
  
  in writing, require the Developer to transfer his letter of approval in a
  
  Special Economic Zone to the person or persons so selected and thereupon the
  
  Developer shall transfer his interests, rights and liabilities in the Special
  
  Economic Zone to any of the persons (hereafter in this section referred to as the
  
  "transferee") who has been selected by the Board on such terms and
  
  conditions and consideration as may be agreed upon between the Developer and
  
  the transferee;
  c.     
  
    all
  
  the rights, duties, obligations and liabilities of the Developer, on and from
  
  the date of suspension of letter of approval or on and from the date, if
  
  earlier, on which his letter of approval in the Special Economic Zone of the
  
  Developer has been transferred to the transferee, shall cease absolutely except
  
  for any liabilities which have accrued prior to that date;
  d.    
  
    the
  
  Board may make such interim arrangements in regard to the operation of the
  
  Special Economic Zone as may be considered appropriate;
  e.     
  
    the
  
  Administrator shall exercise such powers and discharge such functions as the
  
  Board may direct.
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  10.  
  
    The
  
  Board may, in order to promote export or to protect the interest of Units or in
  
  the public interest, issue such directions or formulate such scheme as it may
  
  consider necessary for operation of the Special Economic Zone.