The government has cancelled the Adani Group’s 1,840-hectare special economic zone (SEZ) in Mundra, Gujarat on grounds that it had violated norms and rules. A government official said the Adani Ports and Special Economic Zone violated rules on contiguity of land, and also a rule that an SEZ site needs to be vacant before an approval can be sought to set up a duty-free enclave.

Ahmedabad-based Adani group led by billionaire Gautam Adani is operating India’s largest private port in Mundra, Kutch and is developing a multi-product SEZ on the Mundra coast.

Sources said the company can however approach the Board of Approval, the nodal authority for SEZs in India, with a fresh application after fulfilling the norms.

“The company has over 6,473 hectares of land notified as multi product SEZ, which has no relation with the aforesaid 1,840 hectares multi-product SEZ,”  the company said in a statement. “We had sought clearance for this additional land ... for expansion in future. The clearance was turned down as the authorities felt that the proposed area lacked contiguity. We will seek clearance for this additional 1,840 hectares in due course.”