SEZ units will very soon face tough regulations following legal proceedings against five gems & jewellery units for allegedly abusing their licence to import raw materials duty free for supplying imported designer jewellery to local customers. 

The finance and commerce ministries have however decided to introduce a detailed record-keeping for SEZ units. Presently, there is no such requirement for SEZ units. 

"However, cases registered against gems & jewellery units in the Noida SEZ in the National Capital Region and Seepz SEZ in Maharashtra have brought to light the rampant abuse of duty-free import of raw material, forcing the government to keep tabs on all such units," said a government official privy to the development.

Source: Financial Express