The National Company Law Appellate Tribunal (NCLAT) has set aside a resolution plan worth ₹135 crores, citing that the de-notification of Special Economic Zone (SEZ) land was incomplete and lacked necessary consents. This ruling emphasizes the importance of satisfying all legal requirements for land-use changes.
NCLAT Quashes ₹135 Cr Resolution Plan Due to Incomplete SEZ De-notification
The National Company Law Appellate Tribunal (NCLAT) recently quashed a resolution plan valued at ₹135 crores, ruling that the de-notification process for Special Economic Zone (SEZ) land was incomplete. The absence of necessary consent from the Gujarat Industrial Development Corporation (GIDC) rendered the proposed land-use change unviable.
The NCLAT's decision underscores the critical legal requirement that all procedures and consents must be properly obtained to effectuate a change in land use associated with SEZs. The body pointed out that the procedural lapses surrounding the land de-notification significantly impacted the credibility and viability of the resolution plan.
This ruling serves as a reminder to practitioners involved in insolvency and corporate law that compliance with statutory obligations relating to land transactions is paramount. Failing to adhere to these regulations could lead to substantial financial implications and the negation of business proposals.
Citations
- NCLAT Order (2026)
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