The Gujarat government has appointed industrialist and veteran banker Uday Suresh Kotak as the chairman of GIFT City, according to an official resolution issued by the Department of Urban Development and Urban Housing and reviewed by news agency ANI.
Kotak replaces former bureaucrat Hasmukh Adhia, who served as the executive chairman of Gujarat International Finance Tec-City, or GIFT City, from June 19, 2023.
“The Government of Gujarat hereby appoints Shri Uday Suresh Kotak as the Chairman of Gujarat International Finance Tec-City Co. Ltd., deputizing Dr. Hasmukh Adhia with immediate effect, till further orders,” the resolution said.
The terms of Kotak’s appointment have not yet been disclosed. A decision is expected to be made later, according to a news report..
What is GIFT City?
Based in Gujarat, GIFT City is India’s first functional smart city and home to the country’s first and only International Financial Services Center (IFSC). It serves as a global hub for financial and IT companies from around the world and offers an ideal ecosystem for domestic and international businesses.
It also offers onshore and offshore financial services with the aim of providing cross-border financial products and solutions in a competitive tax framework. GIFT City also benefits from simplified tax rules and regulatory norms as it seeks to attract global capital and compete against major financial centers such as Singapore and Dubai.
Earlier this month, Finance Minister Nirmala Sitharaman announced that the government has doubled the tax holiday for companies operating from IFSCs in Gujarat and reduced the tax they have to pay after the break, bringing relief and tax certainty to entities operating from the global financial hub.
Entities in the IFSC can now enjoy tax-free operations for a total of 20 years, up from the previous 10, and pay 15% tax on profits after the tax holiday, compared to the previous rates of 25-35%, Mint reported earlier.
All about Uday Kotak
Uday Kotak is the founder and director of Kotak Mahindra Bank and has played a major role in the lender’s growth over the past 38 years.
Earlier, he was the Managing Director and Chief Executive Officer of the bank till September 1, 2023. Later, he was appointed as a Non-Executive Non-Independent Director with effect from September 2, 2023.
Under his leadership, the Kotak Mahindra Group has grown to become one of India’s leading diversified and integrated financial services conglomerates. His financial empire includes alternative investment businesses, asset management and insurance, among others.