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AHMEDABAD: The Centre has issued a show-cause notice to Adani Port and Special Economic Zone (APSEZ) asking why approval granted for developing an additional area of 1,804 hectares as part of its SEZ should not be cancelled. The Union Ministry of Commerce and Industry's notice says APSEZ provided false information to get permission for additional land adjacent to the existing 6,472-hectare multi-purpose SEZ in Mudra.

The Centre had given approval for the additional land on March 28. The notice is mainly based on a report and inspection by the joint development commissioner of APSEZ, Kandla and director of SEZ after alleged irregularities were noticed. The issue came to light when the developer of Agri Park, neighbouring APSEZ paid a duty of Rs 10.51 crore. Officials found out goods meant for SEZ been used by Agri Park developers.

An inquiry by the ministry revealed that while seeking permission, the company falsely claimed that the land was contiguous, vacant and satisfied all necessary conditions. The company had also claimed that there was no public thoroughfare through the land. Moreover there was no mention of existing structures in the proposal.

The notice also said that contrary to the company's claims, the land had a railway line as well as road crossing running through it. There was also no independent access to it. The ministry has sought a reply within 10 days. The company in a statement said, "This has no relation with the existing operational multi product SEZ over area of 6,472 hectares. The Company is carrying out its activities within the framework of law. The port operations and port development activities at Mundra are normal."