Mumbai: Parsvnath Developers Ltd has surrendered six in-principle approvals it had received to set up Special Economic Zones (SEZs) across various regions in the country, a top official said.
“Now since the government of India has put all taxes back into SEZ projects, we decided not to acquire the land and we applied to the government to surrender our six in-principle approvals,” chairman Pradeep Jain told Reuters on Friday.
The company had received in-principle approval to set up SEZs in Moradbad, Jaipur, Pune and Agra, besides in the states of Tamil Nadu, Haryana, he said, adding the realtor has not acquired any land parcels in these regions.
The company did not also make any investments for the planned projects, he added.
“We have decided to cancel it, basically because of the tax and there is no great potential (for SEZs) in the market,” adding the company was unlikely to get tax holidays for SEZs were brought under Minimum Alternate Tax (MAT) ambit.
The finance minister in the country’s budget had proposed to levy a 18.5% MAT on the book profits of SEZ developers, Kunal Dalal, research head at K.R. Choksey said.
This was slated to impact the sector, he added.
At 2.48 p.m, shares of the company were lower by 0.31% at Rs 48.30 in a strong Mumbai market.