Government of India Introduces Electronic Bond-cum-Legal Undertaking for SEZ Developers and Units

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Dated: 26.03.2026

Government of India Introduces Electronic Bond-cum-Legal Undertaking for SEZ Developers and Units

The Ministry of Commerce & Industry, Department of Commerce (SEZ Section), has issued a significant update regarding the execution of the Bond-cum-Legal Undertaking (BLUT) required under the Special Economic Zones (SEZ) Act, 2005 and SEZ Rules, 2006. This update, outlined in Instruction No. 123 (No.K-43022/130/2024-SEZ), dated February 2026, introduces a streamlined and modernized process for submitting BLUTs electronically.

Key Highlights of the Notification:

Supersession of Previous Instructions: The new directive replaces Instruction No. 2 dated 24.03.2006, which previously governed the submission of BLUTs. This marks a significant shift towards digitization and simplification of compliance processes for SEZ developers and units.
Electronic Submission of BLUT: SEZ developers and units can now submit their Bond-cum-Legal Undertaking electronically. The format and manner of submission will be specified periodically, ensuring alignment with evolving digital systems.
Introduction of e-BLUT: The electronic Bond-cum-Legal Undertaking (e-BLUT) can be executed through digital mechanisms such as e-stamps or other electronic systems. This is in line with the government’s push for digital transformation and integration with platforms like ICEGATE, which already accept electronic bonds.
Elimination of Traditional Paper-Based Requirements: The requirement to execute BLUTs on non-judicial stamp paper and have them notarized by a Notary Public has been officially removed. This change reduces administrative burdens and enhances efficiency for SEZ developers and units.
Approval by Competent Authority: The notification has been issued with the approval of the Competent Authority, ensuring its legal validity and immediate implementation.

Implications for SEZ Developers and Units:

This move is expected to significantly simplify the process of compliance for SEZ developers and units. By transitioning to electronic submission, the government aims to reduce paperwork, save time, and enhance transparency in the execution of legal undertakings. The integration with platforms like ICEGATE further ensures seamless processing and alignment with existing electronic systems.

How to Execute e-BLUT:

While the exact format and procedure for submitting e-BLUTs will be specified in due course, developers and units can expect the following:

Use of e-stamps or other digital mechanisms for execution.
Submission through electronic platforms such as ICEGATE, which already supports electronic bonds.
No requirement for physical stamp papers or notarization.

Conclusion:

The introduction of electronic Bond-cum-Legal Undertakings is a welcome step towards modernizing compliance processes for SEZ developers and units. By leveraging digital technologies, the government is fostering ease of doing business and reducing administrative hurdles. SEZ stakeholders are encouraged to stay updated on further instructions regarding the format and submission process for e-BLUTs.

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Source: Ministry of Commerce & Industry

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