In fact, that seems to be the exit route suggested by the Centre to the state since the SEZ Act per se doesn’t offer much room for denotifying SEZs. The notification of SEZs by the Centre under the Act is to be guided by these factors — additional economic activity generation, promotion of investment and exports, development of infrastructure and creation of employment opportunities.
If the state can prove it was misled by the SEZ promoters about these factors, then ostensibly, it could be argued that all clearances were invalid. Which is why Nath told Kamat to write a formal letter to the Centre stating the specific reasons for denotifying the three notified SEZs in the state.