The Ministry of Commerce & Industry, Department of Commerce, has issued Instruction No. 123 dated 23rd February 2026 introducing a major procedural reform for Special Economic Zone (SEZ) Developers and Units. The instruction provides clarification on the execution of Bond-cum-Legal Undertaking (BLUT) under the SEZ Act, 2005 and SEZ Rules, 2006.
As per the new instruction, SEZ Developers and Units may now submit the BLUT electronically, replacing the previously mandatory physical submission process.
According to the instruction issued from Vanijya Bhawan, New Delhi, electronic submission may be made in any format or manner specified from time to time, including mechanisms such as e-stamp or approved digital platforms that are already operational—such as ICEGATE, where electronic bonds are accepted.
The Ministry has also dispensed with the requirement of non-judicial stamp paper and notarization by a Notary Public for executing the BLUT. This measure supersedes the earlier Instruction No. 2 dated 24.03.2006.
The step is expected to enhance ease of doing business, streamline compliance processes for SEZ stakeholders, and align documentation procedures with the Government’s broader digital governance initiatives.
The Instructions can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/02/Instruction-No.-123.pdf
