Minutes of the 171st meeting of Approval Committee

Minutes of the 171st Unit Approval Committee Meeting of Kandla SEZ held on 29.10.2021 at 11:00 hrs. under the Chairmanship of Shri Akash Taneja,
Development Commissioner, Kandla Special Economic Zone.

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Following were present (via Video Conferencing):

1. Shri. Satyadeep
   : Joint Development Commissioner,
   Mahapatra

KASEZ.

2. Shri. R. H. Meena
   : Additional Commissioner, Customs, Kandla,
   Gandhidham-Representative of

Commissioner of Customs Kandla.

3. Shri. Abhishek Sharma : Joint DGFT,
   Rep. of Jt. DGFT, Rajkot.

4. Shri. M. U. Sumra : RM, DIC, Bhuj.

Absentees:-

1. Director (Banking)
2. SDM
3. I.T.

171.I
Review/Confirmation of the minutes of last meeting (170th UAC) of the Approval Committee:-

Minutes of the last meeting of Approval Committee were confirmed.

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171.1 NEW UNIT APPLICATION

AGENDA ITEM NO. 171.1.1 Application for setting up of a unit in KASEZ namely M/s. Green Polyplast Industries, GIDC area, Plot No. 62, Anjar, Village-Anjar, Kutch-370110.

A proposal was submitted by M/s Green Polyplast Industries, Anjar - Kutch for setting up a unit in Kandla SEZ for trading and warehousing service activity.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta submitted that their proposal is to set up a trading and warehousing unit in KASEZ for food items and spices, etc. He further stated that the main partner of the firm is having 8 years experience in trading activity in plastics, paper products, spices and food products.

The Approval Committee after due deliberation decided to approve the proposal for trading and warehousing service activity except items at Sr. No. 11 to 13 of the Agenda from trading activity and also items at Sr. No. 11 to 13 & item at Sr. No. 17 of the Agenda from warehousing service activity. This approval is subject to the applicant furnishing KYC of their clients on whose behalf they are going to warehouse goods and also subject to standard terms and conditions: -

i) The approval is subject to the condition that the applicant should seek a prior approval of any additional items they intend to warehouse and submit KYC details of clients to the Office of the Development Commissioner before undertaking the authorised warehousing activity.
ii) None of the items which are restricted or prohibited will be allowed to be traded/warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC.
iii) Further, with respect to traded items viz. Paper and allied products, the KASEZ Customs will take the samples at the time of import and export of each consignment which will be sent for analysis of GSM and other aspects. iv) Further, with respect to warehousing of food preparation items the same is allowed subject to compliance of FSSAI norms and all other statutory compliance viz. NOC from Ministry of Health and other concerned agencies before such clearance. v) In case of any discrepancy/mismatch between the ‘Description of Goods’ as provided by the Unit & ‘Description of goods as per DGFT Import Policy’, the later will prevail.

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vi) Further, the items will be subjected to the Policy Conditions specified in DGFT’s ITC HS Code wherever applicable.
vii) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. viii) Further, the applicant will give an undertaking that none of the items proposed are falling under negative list and are not hazardous or require environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

171.2 REQUEST FOR BROADBANDING

AGENDA ITEM NO. 171.2.1 Broad banding of Manufacturing Activity (Addition of 02 new product in unit’s LoA) and addition of items in trading activity in their existing LoA - Request of M/s LMP Overseas, KASEZ.

M/s LMP Overseas, KASEZ is an approved unit for Manufacturing activity, Trading activity and warehousing service activity vide LoA No. KASEZ/IA/18/2020-21 dated 09.10.2020, as amended.

The said unit has now requested for broad banding of their manufacturing activity for addition of 02 items and also addition of 02 items in trading activity in their existing LoA.

Shri Anand Mehta, Authorised Representative of the firm explained their proposal. Shri Mehta stated that they want to include 02 items in their manufacturing activity and 2 items in their trading activity in their existing LoA. He further stated that items proposed will be procured from DTA only and then processed and after processing the same will be exported to overseas market. He further stated that they are already having APEDA registration and ready infrastructure in KASEZ for processing the said items such as de-stoner machine, gravity separator, metal detector, sortex machine and packing machine.

The Approval Committee after due deliberation decided to approve the addition of 02 items in manufacturing activity and addition of 02 items in trading activity in their existing LoA subject to the condition that rice will not be imported and the same will be procured only from DTA and the finished goods will be 100% exported and also subject to standard terms and conditions:-

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i) Any restrictions on import/export of manufacturing items and its raw materials will apply.
ii) allowed to be traded and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. This clause will have overriding effect for any approval granted in LoA now or before. iii) iv) The above permission is also subject to further condition that the unit shall maintain separate accounts for Manufacturing and trading activity and earmark separate space for all the activities.
v) Further, the unit will submit separate APRs for both of their Manufacturing and trading activities.
vi) Further, the applicant will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vii) Further, you will not be allowed to import rice and the same will be procured only from DTA. The finished goods will be for 100% export only. viii) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 171.2.2 Addition of new items in their LoA for Trading and Warehousing Service Activity – Request of M/s. United Safeway India Pvt. Ltd., KASEZ.

M/s. United Safeway India Pvt. Ltd., KASEZ is an approved unit for Trading and Warehousing service activity in Kandla Special Economic Zone vide Letter of Approval No. KASEZ/IA/35/2020-21 dated 02.02.2021, as amended.

The said unit has now requested for addition of 08 items in trading activity and also addition of 08 items in warehousing service activity in their existing LoA.

Shri Balaji Naidu, Director of the company explained their proposal. Shri Naidu stated that they want to include some items in their trading and warehousing service activity in their existing LoA. He further stated that

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they are working in KASEZ since last 1 year and are doing trading/warehousing activity for some items and now they intend to include new products for trading and warehousing service activity.

The Committee asked the applicant that for how many items they are having approval for trading and warehousing activity. Shri Naidu stated that they are having approval for about 150 items for trading and warehousing.

The Committee after due deliberation decided to defer their proposal for further examination and also directed the unit to submit KYC of their clients on whose behalf they warehouse / propose to warehouse goods.

171.3 MISCELLANEOUS ITEMS

AGENDA ITEM NO. 171.3.1 One time permission for export of old used shoes– Request of M/s Star Shine Clothing Pvt. Ltd., KASEZ

M/s Star Shine Clothing Pvt. Ltd, KASEZ is an approved unit for manufacturing activity of all kinds of repaired/ reprocessed garments/secondary textile material/ used clothing/rags/shoddy wool blankets and shawls/clipping industrial wipers and other recyclable textile material and has been issued LoA No. KASEZ/IA/036/2004-05 dated 14.09.2006, as amended from time to time.

Now the said unit has requested to grant them one time permission for Export of 90 MT of used/second hand Shoes accumulated during the process of segregation of Worn Clothing during the last many years.

Shri Zamir Dosani, Authorised Representative of the company explained their proposal. Shri Zamir explained that they have received worn/second hand shoes mixed with worn/used clothing. These have accumulated during the process of segregation of worn clothing and they propose to re-export the shoes instead of disposing them in DTA. They have requested to allow them export of worn/used Shoes.

The Committee noted that worn shoes in bales form also fall under ITC (HS) 6309 0000 i.e. same as worn clothing and it complies with chapter note 3 (b) “Footwear and headgear of any material other than asbestos”.

The Approval Committee after due deliberation approved the request of the unit for one time permission to export 90 MT of used/second hand Shoes as was earlier approved in respect of four worn/used clothing units

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subject to the condition that the unit will submit proof of exports to the office of the Development Commissioner, KASEZ.

AGENDA ITEM NO. 171.3.2 Intimation of change in Directors – Request of M/s. AADK Petroleum Private Limited, KASEZ.

M/s. AADK Petroleum Private Limited, KASEZ is an approved unit for Trading activity vide LoA No. KASEZ/IA/96/796/Vol.I dated 24.07.2007, as amended. This unit was earlier known as M/s Global Commodities Trading Impex and in 165th UAC its name changed as M/s. AADK Petroleum Private Limited.

Now the said unit has intimated regarding the change in Board of Directors of the company wherein two existing Directors have resigned and two new Directors have been appointed and submitted copy of DIR-12 containing particulars of changes among the Directors.

The Committee noted that there is complete transfer of ownership and it was decided to call for the details of import and export transactions made by the company during the last 5 years so as to enable the Committee to decide on further course of action to be taken on the proposal for change in Directors of the company.

Therefore, the Approval Committee after due deliberation decided to defer their proposal for change in Directors of the company.

AGENDA ITEM NO. 171.3.3 Request of M/s. Polyrec Processors Pvt. Ltd., KASEZ for change in Director and shareholding pattern of the company.

M/s Polyrec Processors Pvt. Ltd., KASEZ is an approved unit for manufacturing of Recycling of HDPE / LDPE Scrap in Kandla Special Economic Zone vide Letter of Approval No. FTZ/IA/1542/94/7174 dated 04.10.1994, as amended.

Now the said unit has intimated that due to death of one of their Director, the management has decided to Change the Directorship of the company and appointed wife of the deceased Director as Director of the company and also change in share holding pattern of the company and submitted copies of Form No. DIR-12 of Directors.

The Committee noted that Department of Commerce vide Instruction No. 109 dated 18.10.2021 has issued guidelines regarding change of name,

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change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change in Director and change in shareholding pattern of the company subject to fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021.

The Committee also directed to forward the case of change in Name/Constitution to the Income Tax Department for necessary action at their end.

AGENDA ITEM NO. 171.3.4 Intimation of change in Partnership deed of M/s Kutch Polymers, KASEZ.

M/s Kutch Polymers, KASEZ is an approved unit for manufacturing of All types of reprocessed plastic raw material in granules, Agglomerates, shredding, grinding pieces, crushing chips form, lumps and chunks, etc. in Kandla Special Economic Zone vide Letter of Approval No. FTZ/IA/1689/97/10487 dated 27.01.1998, as amended.

Now, the said unit has intimated regarding change in their partnership firm and intimated that one of their partner has retired from the firm and two new Partners has joined the firm and submitted copy of Form- G issued from Registrar of Firms, Ahmedabad City, Ahmedabad regarding change in their partnership deed.

The Committee noted that Department of Commerce vide Instruction No. 109 dated 18.10.2021 has issued guidelines regarding change of name, change of shareholding pattern, business transfer arrangements, court approved mergers and demergers, change of constitution, change of Directors, etc. may be undertaken by the Unit Approval Committee (UAC).

Therefore, the Approval Committee after due deliberation decided to take on record the proposal of change partners of the firm subject to fulfilment of conditions as stipulated vide Instruction No. 109 dated 18.10.2021.

The Committee also directed to forward the case of change in Name/Constitution to the Income Tax Department for necessary action at their end.

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AGENDA ITEM NO. 171.3.5 Request of M/s Krishna Enterprise, KASEZ for approval of items in their warehousing activity.

The Committee noted that M/s. Krishna Enterprise has requested for permission to warehouse 15 items to be warehoused in KASEZ on behalf of Foreign/DTA clients.

Shri Mahesh Matiya, Proprietor of the firm explained their proposal. He stated that they propose to warehouse goods on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit except items at Sr. No. 1, 2, 3 & 7 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submitting KYC of their clients and also subject to following conditions: -

i) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 171.3.6 Permission to warehouse goods on behalf of DTA client & Foreign Clients – Request of M/s. Central Warehousing & Trading, KASEZ

The Committee noted that M/s. Central Warehousing & Trading, KASEZ has requested permission to warehouse 05 items to be warehoused in KASEZ on behalf of Foreign/DTA clients.

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Shri Darpan Mehta, Partner of the firm explained their proposal. He stated that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and submitting KYC of their clients and also subject to following conditions: -

i) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii) Further, with respect to warehoused items viz. Paper products, the KASEZ Customs will take the samples at the time of import and export of each consignment which will be sent for analysis of GSM and other aspects. iii) iv) v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vi) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 171.3.7 Permission to warehouse goods on behalf of DTA client & Foreign Clients – Request of M/s. Commodities Trading (SEZ Warehousing Division), KASEZ.

The Committee noted that M/s. Commodities Trading (SEZ Warehousing Division) has requested for permission to warehouse 01 item on behalf of DTA/Foreign clients.

Shri Devendra Bansal, Partner of the firm explained their proposal. He stated that they propose to warehouse products on behalf of their clients.

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The Committee after due deliberation decided to permit the item to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and subject to following conditions: -

i) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 171.3.8 Permission to warehouse goods on behalf of DTA client/Foreign clients – Request of M/s. AB Warehousing, KASEZ

The Committee noted that M/s. AB Warehousing has requested for permission to warehouse 12 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Nobody appeared before the Committee to explain their proposal. Therefore, the Committee decided to defer their proposal.

AGENDA ITEM NO. 171.3.9 Permission to warehouse goods on behalf of DTA/Foreign Clients - Request of M/s. Shri Khatushyam Tradelinks, a unit for warehousing service and trading activity, KASEZ.

The Committee noted that M/s. Shri Khatushyam Tradelinks has requested for permission to warehouse 15 items to be warehoused in KASEZ on behalf of Foreign/DTA clients.

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Shri Shyam Bhatia, Proprietor of the firm explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

The Committee noted that the items proposed for warehousing are edible items and require proper storage facility. The Committee asked the proprietor as to whether they are having storage facility as some of the edible items proposed require proper cold storage facility. Shri Bhatia stated that they have been allotted plot in KASEZ and construction of building is under progress and will be completed within 3-4 months.

Therefore, the Committee after due deliberation decided to defer their proposal with direction to the unit to first complete the construction work of their building and then come up with detailed arrangements made for storage of edible items. Further, the Committee noted that the firm has given intimation of commencement of operations and directed the unit to submit the details of business done by them in KASEZ so far.

AGENDA ITEM NO. 171.3.10 Permission to warehouse goods on behalf of DTA Importer/Foreign Clients - Request of M/s. Siddhi Vinayak Enterprises, a unit for manufacturing, trading and warehousing activity, KASEZ.

The Committee noted that M/s. Siddhi Vinayak Enterprises has requested for permission to warehouse 09 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Vishal, Authorised Representative of the firm explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit except items at Sr. No. 5 & 6 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit and subject to the unit fulfilling NFE criteria and submitting KYC of their clients and also subject to following conditions:

i) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii) Further, with respect to warehoused items at Sr. No. 3 of the Agenda, the KASEZ Customs will draw samples for all import consignments.

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iii) iv) v) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. vi) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 171.3.11 Permission to warehouse goods on behalf of DTA/Foreign Clients - Request of M/s. Sunrise Internationals (Unit-II), KASEZ.

The Committee noted that M/s. Sunrise Internationals (Unit-II) has requested for permission to warehouse 03 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

Shri Jaykumar Pillai, Authorised Representative of the firm explained their proposal. He informed that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit except item at Sr. No. 3 of the Agenda on behalf of DTA/Foreign clients as submitted by the unit and subject to the unit fulfilling NFE criteria and subject to following conditions: -

i) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities.

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v) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

AGENDA ITEM NO. 171.3.12 Request of M/s Presto Industries (Exports), KASEZ for approval of items in their warehousing activity.

The Committee noted that M/s. Presto Industries (Exports) has requested for permission to warehouse 13 items on behalf of DTA/Foreign clients.

Shri Kuruvilla Thomas, General Manager of the firm explained their proposal. He stated that they propose to warehouse products on behalf of their clients.

The Committee after due deliberation decided to permit the items to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit subject to the unit fulfilling NFE criteria and subject to following conditions: -

i) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii) iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed are falling under negative list or are hazardous or require environmental clearance for storage/transmission/ handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

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AGENDA ITEM NO. 171.3.13 Ratification of request already approved in file

The Approval Committee ratified the one time permission granted to the following unit by the Development Commissioner, KASEZ.

1. M/s. Sunrise Internationals (Unit-II) – one time permission granted on 11.10.2021 for Polyurethane (ITC HS 39095000), Polyol Mixture (ITC HS 39079900) and Catalyst (ITC HS 38249900) – 4 containers.

TABLE AGENDA- Item No. 171.4.1 Permission to warehouse goods on behalf of Overseas/DTA client – Request of M/s. Milak Warehouse, KASEZ.

The Committee noted that M/s. Milak Warehouse has requested for permission to warehouse 01 item to be warehoused in KASEZ on behalf of DTA/Foreign clients.

The Committee further noted that earlier their request for the said item was not allowed and was deferred for examination in consultation with DGFT as the said item is subject to frequent policy changes as the same are in the category of essential items. The Committee further noted that the unit representative has requested to allow them warehousing of the said item and have also undertaken that the said goods will be imported and warehoused at their warehouse for re-export purpose and no domestic clearance will be undertaken.

The Committee after due deliberation decided to permit the item to be warehoused by the above unit on behalf of DTA/Foreign clients as submitted by the unit and subject to the condition that the proposed item to be warehoused will be 100% imported from abroad and no procurement from DTA and no DTA clearance of the same including waste and rejects will be allowed and also subject to the unit fulfilling NFE criteria and subject to following conditions: -

i) allowed to be warehoused and any restrictions on import/export of any items will apply unless specifically permitted by the UAC. ii)

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iii) iv) Further, the unit will obtain registration/clearance/any other mandatory requirement prescribed under any Act/Rules from concerned agencies before undertaking of such activities. v) items proposed falls under negative list or is hazardous or requires environmental clearance for storage/ transmission/handling and if the items are found in negative list or hazardous in nature, penal action will be initiated against them.

TABLE AGENDA- Item No. 171.4.2 Permission to warehouse goods on behalf of Overseas/DTA client – Request of M/s. Milak Warehouse, KASEZ.

The Committee noted that M/s. Milak Warehouse has requested for permission to warehouse 04 items to be warehoused in KASEZ on behalf of DTA/Foreign clients.

The Committee after due deliberations decided to defer the request of the unit for warehousing goods till the next meeting for further examination.

TABLE AGENDA- Item No. 171.4.3 Modification in the list of items Approved to M/s Madhavpratha Warehousing and Services LLP.

The Committee noted that the proposal of M/s Madhavpratha Warehousing and Services LLP for setting up a Warehousing Service Unit for certain items was approved in the 150th UAC meeting held on 11.11.2019 and the O/o. of the Development Commissioner, KASEZ issued in-principal LoA vide letter dated 19.11.2019. The said unit has been allotted Unit No. 306, Second Floor, Godavari SDF Complex, Phase-II, KASEZ and the unit has now requested for issuance of formal LoA.

The Committee perused the list of items approved by the UAC in the 150th meeting held on 11.11.2019 and noted that some of the items under the Warehousing Service Activity are sensitive in nature.

Therefore, the Committee after due deliberation decided to delete the items mentioned at Sr. Nos. 10, 16, 25, 26, 27, 33, 37, 38, 41, 45, 57 & 66 under the Warehousing Service Activity as the same are sensitive in nature and directed that the formal LoA be issued to M/s. Madhavpratha

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Warehousing and Services LLP with the revised list of items. Further, the unit will obtain PESO certification, wherever applicable, in respect of all the inflammable/explosive items as required under the Petroleum Act, 1934 and rules made thereunder and also obtain No Objection Certificate from the Fire Department before commencing storage/warehousing of inflammable/ explosive goods.

Notwithstanding to the decisions of the Committee, if the DC Office/Approval Committee notices any instance of default in rent or
pending legal proceedings as on date of decision of the Committee or any legal proceedings that may be initiated after the decision of the Committee against the unit/firm/company and/or its Proprietor/Partner/Director, which has a bearing on the decision taken/LoA issued to the firm in any manner, the LoA granted will be liable for action, including cancellation under the FT (D&R) Act and necessary action will be taken against such units in terms of applicable provisions of law.

The meeting ended with vote of thanks of the chair.

     (Akash Taneja) 

Development Commissioner Kandla Special Economic Zone