The Government of India, Ministry of Commerce & Industry, Department of Commerce (SEZ Division) has issued Clarification vide No. K.43013(18)/2/2022-SEZ dated February 15, 2023 regarding the challenges faced by trade with respect to monitoring of the Bond cum Legal Undertaking (“BLUT”) and requirement for additional BLUT.
I am directed to refer to representations received from EPCES and SEEPZ SEZ on the above mentioned subject and to draw attention to the provisions of Rule 22(1)(iv)(d) of SEZ Rules, 2006, wherein it is expressly stipulated that there shall be no debit and credit in the BLUT. Besides, the BLUT amount shall be monitored quarterly or yearly on the basis of the Quarterly Progress Report or Annual Progress Report submitted by the Developer or Unit, as the case may be and in case of any shortfall in the BLUT amount, a fresh or additional Bond-cum-Legal Undertaking shall be furnished.
In view of above, it is clarified that the need for additional BLUT would arise only in cases where the scale of operations have increased from the initial levels for which the BLUT was submitted and additional BLUT should not be sought in a routine manner as long as the unit/developer operates at the same scale of activities as initially envisaged.
The Clarification can be accessed at: http://sezindia.nic.in/upload/uploadfiles/files/BLUT.pdf