Bombay Dyeing challenges govt in mill land issue

Maha govt had said the company had not got the mandatory approvals to develop mill land in Central Mumbai

Wadia group-owned Bombay Dyeing is planning to file a counter affidavit in the Bombay High Court against the one filed by Maharashtra Government, which reportedly said the company has not secured mandatory approvals from authorities to develop mill land in Central Mumbai.

The government, according to a recent media report, said no official approval was granted to the company to modify its development proposal in Dadar Naigaon area in Mumbai. The affidavit said the section officer in the textile department issued permission to the company in August 2004 even before it was approved by the state textile minister and the chief minister.

In a statement Jeh Wadia, MD, Bombay Dyeing clarified that the affidavit pertains to Worli property and not related to Dadar one. Wadia said: "These reports are factually incorrect as the affidavit they referred to does not pertain to either approval for land or construction but pertains to the Company’s textile modernization scheme at its Worli unit. This has no impact whatsoever on the development and construction plan in Dadar, the location of ONE lCC and TWO ICC."

He further added: "As to the affidavit referred to in the press, the Company is unable to comment as the matter is sub-judice. However, the company will be filing a suitable counter affidavit addressing the aliegations made therein," he said.

Bombay Dyeing shares have dipped 3.4 per cent in the last three trading sessions and the stock closed at Rs 102.40 on Friday, 2.85 per cent down from Thursday's close.