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Minutes of Meeting of Approval Committee, NSEZdated 11/08/2011Page 2 of7It was made clear that the Zone had shortage of built up space. Also as regards nonsubscriptionof Provident Fund, the Committee was informed by the representative that inthe last year the proprietorship concern had been converted into Pvt. Ltd. Company and thelegal obligation regarding ProvidentFund was being fulfilled by them. The Committeedecided to approve the proposal subject to (i) availability of space and (ii) the matter beingreferred to PF commissioner for necessary action.2. Application of M/ s Citixsys Tech Solutions Pvt. Ltd. for setting up a unit inNoida SEZ for software development and consultancy.On the directions of the BOA, the proposal was reconsidered by the Committee. Therepresentative director was given another opportunity to explain proposal vis-a-vis groundsquoted by the Committee while rejecting it. The representative director conveyed that thespace as small as 100-120 SQ M. was quoted keeping in view the actual requirement and theproposed activities would be carried out from the SEZ . The Committee felt it appropriate toget the ITRs of the promoters checked thoroughly as the same reflects losses which was thereason for doubts as regards source of finances at the disposal of the promoters.In view ofthis, the Committee decided to approve the proposal subject to availability of space of thesize required for the project and satisfactory report from 0/0. Joint Commissioner(IncomeTax), Noida on the records relating ITRs of the promoters/Company,Balance Sheet andClash Flow of the Company for last three years. Letter would be issued to the Applicant topresent himself before the JC(IT) , Noida, on a suitable date and time.3. Application ofM/s Lakshman Overseas (India) for setting up a unit in Noida SEZfor Manufacturing & Trading of consumer electronic items such as CD Player,DVD, electronic products, electronic office equipment, readymade garment,chemicals, calculators, water purifiers, communicators, palm top, laptops,mobiles, spares & accessories & computers, spares and accessories.The Applicant Shri Ashwani Aggarwal, Proprietor of M/s. Lakshman Overseas(India) appeared and presented the proposal before the Committee.discussed and concluded as below:The Committee mainly(i) The proposed activity in the proposal was manufacturing & trading of consumerelectronic items such as CD Player, DVD, electronic products, electronic office equipment,readymade garment, chemicals, calculators, water purifiers, communicators, palm top,laptops, mobiles, spares & accessories & computers, spares and accessories. Most of these

Minutes of Meeting of Approval Committee, NSEZdated 11/08/2011Page 3 of7items were also allowed vide LOA dated 25.10.2002 issued to M/s. Lakshman Overseas,proprietorship concern of Shri Vipul Aggarwal. Shri Vipul Aggarwal along with his fatherShri Ashwani Aggarwal(Applicant) had been charged with mis-declaration of value anddiversion of high value imported goods en-route to NSEZ from Airport and bringing insubstandard/junk goods into the NSEZ for export in the Show Cause Notices dated05.09.2006 and 30.04.2010 of Directorate of Revenue Intelligence(DRI). Further, the LOA ofM/s. Lakshman Overseas was cancelled vide letter dated 23.02.2006, for the violation, aftergiving due opportunity and no appeal had been preferred by the proprietor of M/s.Lakshman Overseas against the order of cancellation of the said LOA. Therefore, theapplicant could not be allowed to carry out the same activity for which he had been chargedof serious violations in the past. As per Rule 18( 4)(f) of the SEZ Rules, 2005, no proposalshall be considered if there is any instance of violation of law or public policy by thepromoters having bearing on the merits of the proposal.(ii)The Hon'ble High Court of Delhi in its Order dated 11.05.2011 directed that asregards properties at Plot No. 19 and 67 in NSEZ, the Petitioners would be given access tothe office premises and be permitted to run their businesses. The Committee was informedthat Plot No. 19 and 67 were allotted on sub-lease basis, and buildings on the plots, as perrecords, were in the name of Shri Vipul Aggarwal, Proprietor, M/s. Lakhman Overseas andhe had already been allowed access into NSEZ as per Hon'ble Court's directions. Though theApplicant in the proposal, Shri Ashwani Aggarwal, was a petitioner in the matter before theHon'ble Court, he had not been issued LOA in the past. Therefore, the Order of the Hon'bleHigh Court does not appear to have any bearing in the instant case. Further, lease rent ofthe premises at Plot No. 19 and 67 were not paid since July, 2005 and total lease rent of Rs.49,64,270 was outstanding as on 11.08.2011 and hence the application could not beconsidered for this ground also.On the above grounds, the Committee did not approve the proposal.4. Application of M/s Smart Identity Devices Pvt. Ltd. for setting up a unit in Noida SEZfor manufacturing of I - Scan and L-scan.The Committee, after deliberations, approved the proposal on the basis of profile ofthe promoters, performance of their trading unit in DTA, subject to availability of space. Thedocuments found deficient would be obtained before the LOA is issued.

Minutes of Meeting of Approval Committee, NSEZ dated 11/08/2011Page 4 of75. Application of Mis DSM International for setting up a unit in Noida SEZ formanufacturing and trading of garment items.The Committee heard submissions of the proprietor of the Applicant firm anddeliberated on the proposal. The Committee approved the proposal only for manufacturinginitially and the proposal for trading would be examined subsequently after seeing theperformance of the unit.6. Mis. Divya Creations (Plot No. 97, NSEZ.)- Inclusion of additional items ofmanufacture in LOA and monitoring of performance.The representative of the Unit explained that due to price rise in the precious metalsespecially gold, there was demand in the international market for alternative jewellery whichwas less expensive. It was explained that base metal would be brass, copper or aluminumand precious metal would be mainly gold. The representative informed that they haveOrders with them. In view of the above, the Committee approved the proposal of the Unit.7. Mis. ANG Auto Ltd. SDF (1-11,12)- change of name & change of directors, andmonitoring of performance & renewal of LOA.The representative of the unit explained that they had changed the name to M/ s.ANG Industries Ltd. as they wanted to diversify from Auto segment to other industries.However, the explanationwas not found sufficient as the Unit changed name frequentlywhich created doubts about the real intention of such changes in the name of theCompany.Therefore, the Committee decided-that the matter, as well as the matter relatingto changes in Board of Directors, would be decided by the DC, NSEZ on the basis ofreport in this regard from Joint Commissioner (Income Tax), Noida. Further, Therepresentative had been directed to make submission to JC (IT) Noida on 18.08.2011. Asregards performance of the unit, the Committee expressed dissatisfaction over downwardslide in performanceof the Unit in every subsequent year during its last 5 year block.However, the Committee decided to renew the LOA for 5 years w.e.f. 04.10.2010.

Minutes of Meeting of Approval Committee, NSEZdated 11/08/2011Page 5 of78. Mis. Davanam Jewellers - granting of Personal Hearing in the SCN issued to theunit.As no representative of the unit appeared before the Committee, the Committeedecided to defer the matter for the next Meeting.9. Mis. RPS Clothing and Linen Pvt. Ltd. - Extension of LOA.No representativefrom the Unit appeared before the Committee. The Committeeconsidered the matter and decided to defer the matter and give final opportunity to the Unitin the next meeting.10. Mis. Rohit Agro Products Ltd. - Monitoring of performance.No representative of the Unit appeared before the Committee. The Committeedecided to issue Show Cause Notice to the Unit to explain why LOA as well as allotmentshould not be cancelled andlor penalty should not be imposed under FTDR Act for nonfulfillmentof terms and conditions of the LOA. The Committee further empowered the DC,NSEZ, to issue the show cause notice and take further necessary action, includingcancellation of LOA and the allotment, in the matter. DC would also take action forcancelling ofIEC.11. MI s. Pitambra Hardware and Metal Exports Pvt. Ltd. - Monitoring ofperformance .As per request of the unit, the matter was deferred to the next meeting.12.Mis. Sunehari Export Ltd.(Unit-1) - Monitoring of performance.The representative of the Company explained that as they were working from twounits in similar type of items, certain clearances relating to Trade Tax Department could notbe obtained. However, the delay of nearly two years' time for complying to exit formalitieswas found unacceptable by the Committee. The Committee concluded that since the LOAwas no longer valid and the same was not renewed, the LOA had already been lapsed andhence should be cancelled. Consequently, the Committee cancelled the allotment of PlotNo. 165, which had been lying unutilized since the year 2002. However, as adequate penalaction was being taken, no penalty under FTCDR) Act was contemplated. The Company

Minutes of Meeting of Approval Committee, NSEZdated 11/08/2011Page 6 of7was directed to apply for transfer of Plot Nos. 155, 156,157 to the Unit-II of the Companywithin one month of communication to the unit regarding cancellation of LOA of Unit-I.Unit-I should submit APRs for the period from 2006-07 to 2010-11 within 15 days from thedate of issue of communication in this regard.13.Mis. Sunehari Export Ltd.(Unit-m - Monitoring of performance.Since the performance of the Unit was very low, the Committee directed to improveperformance as precious Government allotted space was not being utilized by the Uniteffectively. The Committee also directed to submit APRs for 2009-10 and 2010-11 within 15days of issue of communication in this regard.14. Approval of Services:1. Mis. Dharampal Premchand Ltd.: The Committee approved both the lists ofservices of the Unit with a modification that Banking and other financial services andpracticing CA services to be shifted to list of services consumed outside the SEZ.11. MI s. Baba Global Ltd. : The Committee approved both the lists of services of theUnit with a modification that Banking and other financial services and practicingCA services to be shifted to list of services consumed outside the SEZ.111. Mis. Thomson Digital (Unit -ij and (iv) MI s. Thomson Digital (Unit -Il): TheseUnits applied again for approval of their list as the they have DTA unit too. TheCommittee did not approve the lists as default list for all the units would alsoapplicable in their case.v. Mis. Groz Engineering Tools Pvt. Ltd.; The Committee was informed that Servicesat Sl.No.3, 5,8,11 had been permitted as per Default List. The Committee approved otherservicesof the list submittedby the Unit.15. Building Plan of Mis. Stalwart Overseas - Plot No. 12, Noida SEZ:The Committee was informed that the Unit removed deficiencies pointed out bythe panel Architect and deposited requisite fees. The Committee approved the Building Planas submitted by the Unit's promoters.

Minutes of Meeting of Approval Committee, NSEZdated 11/08/2011Page 70f716.Additional itemReview of Performance of Mis. Balaji Universal Tradelink Pvt. Ltd.(TradingUnit) and change of entrepreneur and approval of change in the Board of Directorsof Mis. Balaji Universal Tradelink Pvt. Ltd.The Committee was informed that based on the performance of the Unit in the firstyear, the matter was placed before the Approval Committee in its meeting dated 25.11.2009,for monitoring. The Unit's representative assured that they would achieve positive NFE bythe end of 2009-10. At the end of financial year 2009-10, the Unit not only failed to achievecumulative positive NFE but also ended up increasing negative NFE. In view of negativeNFE for first two years, Show Cause Notice was issued to Mis. Ba1aji Universal TradelinkPvt. Ltd. (Trading Unit), to explain why suitable action should not be initiated and penaltyshould not be imposed for non-fulfilment of terms and conditions of SEZ Act, 2005/SEZRules 2006. During the interaction, Unit's representative informed the Committee that theywere contemplating on debonding of the trading unit as they would not likely to make theirNFE Earnings positive in this unit over the period of five years. The Approval Committeeobserved that the Unit achieved Negative NFE Earnings to the tune of Rs. 1.5 Crore anddecided to impose penalty of Rs. 25,000. Adjudication order of the Show Cause Noticedated 29.11.2010 would be issued by the DC. Further, the matter of change of directorswould be considered by the DC, NSEZ.The Meeting ended with vote of thanks to the Chair.(C.P .S.Joint Developakshi)ent Commissioner~.(S.C. Panda)Development Commissioner*****