How to misuse (SEZ) land in 10 simple ways

  • RestrictedLand
  • LandUnused

SEZ land mortaged

  • Divert SEZ land for commercial purposes – i.e. 14% of land i.e. out of 39245.56 ha of land notified in the six States10, 5402.22 ha was diverted for commercial purposes
  • Restricted land allotted for SEZ activity:  9 SEZs were allotted land which was restricted under various statutes (Defence, Forest, Irrigated land) in Andhra Pradesh, Maharashtra and West Bengal involving 2949.61 hectares of restricted land as detailed below:
  • Loans raised on SEZ Land used for non SEZ purposes – 11 Developers/Units in Andhra Pradesh, Karnataka, Maharashtra and West Bengal had raised loans of  6,309.53 crore against mortgage of lease hold government land
  • Non fulfillment of leasing conditions by developer – A developer in AP was given land @ 1 Rupee per acre on the condition it can provide employment for about 60,000 people. Till date only 11,000 people were employed and as such the developer should pay 281.54 crores, which was never recovered
  • Approval of SEZ without required land use permission – Approved SEZ without carrying out the due diligence of verifying the title and usage of the land proposed by the developer nor did it point out the lacunae while monitoring the progress of the SEZ
  • Diversion of land for private industries: 
    • Land earmarked for hospital/training was given to build IT companies
    • Denotified land was allotted to private DTA (Domestic Tariff Area, non SEZ land) industries viz., Alstom, Pepsico, Cadbury, MMD, Unicharm, Colgate, ZTT, IFMR, Kellogg’s, S&J Turney Contractors, Tecpro, Sripower, RMC/WMM, Danjeli, Ayurvet, TII, Godavari Udyog, Thaikikuwa.
    • However, the price at which the land was allotted to DTA Units was not produced to audit
  • Developers approached the government for allotment/purchase of vast areas of land in the name of SEZ. However, only a fraction of the land so acquired was notified for SEZ and later denotification was also resorted to within a few years to benefit from price appreciation
  • Get a second approval despite failing to use the first SEZ land :
    M/s Kakinada SEZ (KSEZ) Andhra Pradesh was granted formal approval for setting up of another multi product SEZ adjacent to the already approved SEZ in Kakinada on 1013.60 hectares of land in February 2012 even though the first SEZ measuring 1035.66 hectares (In principle approval was given in 2002) was not put to use in

Underutilization of land in processing area

In case of Adani Ports, out of the notified (May 2009) area of 6472.86 ha only 833.77 ha was utilized leaving 5639.09 ha (87.11 per cent) un-utilized so far



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