CAG Says 47 SEZ Allocation Files Missing For Auditing

01 August, New Delhi

The Comptroller and Auditor General of India in its report for fiscal 2012-13 on the performance of Special Economic Zones (SEZs) has observed that 47 files were not produced for auditing.

On scrutiny, it said, it has been found that all the files except five are available in the department and were made available for auditing.

The remaining five files relating to the setting up of Central Government SEZs, which are of 30-50 years old, could not be located.

As per record retention schedule of Department of Commerce, the retention period of these files has expired.

As per Entry No. 18 of the State List in the 7th schedule of the Constitution of India, land is a state subject.

Land for SEZs is provided by the concerned state governments.

The Board of Approval (BoA) on SEZs only considers those proposals which have been duly recommended by the state governments.
Since land is a state subject, state governments are free to frame any law/rule on the subject. If any violation of the SEZ provisions are noticed action is taken under the SEZ laws.

Minister of State (Independent Charge) for Commerce and Industry Nirmala Sitharaman gave this information in a written reply to the Lok Sabha earlier this week.

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