The BoA (Board of Approvals) at the Center has expressed serious doubts over the "dubious" proposals of the Special Economic Zone developers in the state and also SEZs of the AP Industrial infrastructure Corporation. The main objections raised by the BoA were over the attempts of the prospective SEZ units to own the property as co-developers. The department of commerce either rejected or deferred the proposals of these developers at a recent meeting of the Board of Approvals.

As per the sources, the objections were raised with regard to Mytec Software, Visakhapatnam, Hyderabad Infratech Limited, Gachibowli and Samuha Engineering Industries Limited, Adibhatla Aerospace SEZ. It was pointed out in Mytec Software's case that the APIIC had entered into a lease agreement with the company on March 26, 2009 and the co-developer agreement was executed much later on November 29, 2010. Representatives of the Central Board of Direct Taxes pointed out that there was a doubt as to whether the lease agreement was intended for the purpose of setting up a unit by Mytec Software at all. Similarly, Hyderabad Infratech had joined as co-developer for the SEZ promoted by Phoenix Infocity at Gachibowli.

The Department of Revenue observed that "from the co-developer agreement it appears that the developer is irrevocably assigning all its rights over the property". In some cases, the developers managed to get approval for SEZs but do not have adequate investment to initiate the project. The BoA has decided to examine the agreements to ensure that the transaction did not amount to sale of land which is prohibited as per the SEZ Act.