Special Economic Zones (Amendment) Ordinance, 2019 stands repealed; ‘Trusts’ now come within the purview of the Special Economic Zones Act, 2005.
The Special Economic Zones (Amendment) Bill, 2019 (“Bill) was recently introduced in the Lok Sabha, proposing to repeal the Special Economic Zones (Amendment) Ordinance, 2019 (“Ordinance”).
As trusts are common form of operating bodies in the financial sector, it was found necessary to include trusts within the purview of the Special Economic Zones Act, 2005 (“Act”) by amending the definition of ‘person’ under Section 2(v) of the Act. Since, the Parliament was not in session and an urgent legislation was required to be made, the Ordinance had been promulgated, effective from 2nd March, 2019.
Subsequently, the Bill was introduced to replace the Ordinance and has now been notified as the Special Economic Zones (Amendment) Act, 2019 having retrospective effect since 2nd March, 2019 i.e. the date of coming into force of the Ordinance.
Source: Ministry of Law and Justice