Cash crunch forces DLF to forgo 5 SEZs
Faced with an acute cash crunch, the real estate giant, DLF, has offered to surrender five of the nine IT-ITeS notified special economic zones (SEZ) awarded to it.
An official of the commerce & industry ministry said DLF had already completed the paperwork for the surrender. The board of approval (BoA), headed by commerce secretary G K Pillai, that notifies SEZs, is processing the company’s request.
Once an SEZ is cancelled, a company can sell the land acquired by it. “SEZ developers acquired extra land, thinking that land prices would rise. With land prices falling, they now want to sell. They are under pressure from banks,” a senior official and a BoA member told Financial Chronicle.
According to the SEZ Act, the tax-free enclaves cannot be surrendered once they become operational. The official said work on the five SEZs that DLF now wanted to surrender had not begun.
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