PIL in Guj HC alleges Adani flaunting stay order in APSEZ

While company claims to have obtained deemed environment clearance under rules of EIA Notification, 2006

While the Adani Group-owned Adani Port and Special Economic Zone (APSEZ) claimed that it had obtained deemed environmental clearance as per law, people from Navinal village in Mundra, Kutch where the SEZ is located alleged in a public interest litigation (PIL) that company was flaunting its earlier order of stay on construction and development activities there.

People of Navinal village have filed a public interest litigation (PIL) in the Gujarat High Court claiming that despite court's order of May 9, 2012, restricting any kind of construction or development activities in APSEZ region, there was wide-spread commercial activities going on in the SEZ and the units there were making profits.

The PIL which was filed earlier this year came up for hearing before bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala on Thursday. The bench would continue to here the matter on Friday.

During the course of argument, lawyer Anand Yagnik, representing the villagers, claimed that the Adani Group was confusing the court by showing different orders. "The company (Adani) is misleading the court, as it has obtained environment clearance only for the port and not the SEZ. The APSEZ was formed in 2012 by merging the Adani port and Mundra Port SEZ (MPSEZ)," Yagnik said. He further added that Adani Port, Adani Power and MPSEZ were all separate entities, which would require separate environmental clearances.

In the PIL, villagers have further claimed that APSEZ had allowed other units to come up in the SEZ even prior to the public hearing on environmental clearance (EC) in October 2010. "There are over 21 units functional in SEZ since 2-3 years and out of them most have commenced commercial operations and are making profits," the PIL claimed.

It further alleged that in May 2012 the Gujarat High Court had stayed construction and further development activities by all units including the Adani owned units of the APSEZ while hearing a PIL filed by the same villagers. But, despite the stay order of the High Court, activities continued in the SEZ, which is a gross violation of the court order. The villagers have demanded that all units be directed to stop operations till EC is granted to the entire SEZ.

Meanwhile, APSEZ senior counsel Dushyant Dave, claimed that the company had obtained deemed EC as the Union government did not raise objection in stipulated time period to the recommendation made by the Expert Appraisal Committee (EAC) . According to Dave EAC has recommended EC to APSEZ.

Dave argued that under the Environment Impact Assessment (EIA) Notification, 2006, the government shall, in normal conditions, accept the recommendations of the EAC. And if there is no action by the government in stipulated time, under the rules of EIA notification, it would be deemed that the EAC recommendation has been approved, whatever it may be. And in this case the EAC has recommended EC and CRZ clearance to APSEZ, Dave claimed.

On its part the court pulled up assistant solicitor general Pankaj Champaneri, representing the Central government, for not filing affidavit on the facts of the matter. "If despite our orders you (centre) do not file affidavit, what do we assume of this," the court remarked.

According to APSEZ's official website, the company was initially incorporated as Gujarat Adani Port Limited (GAPL) in 1998 to develop a private port at Mundra. The company commenced commercial operations in October 2001. Mundra Special Economic Zone Limited (MSEZL) was incorporated in November 2003, to set up an SEZ at Mundra. MSEZL was merged with GAPL in April 2006 and the company was renamed as Mundra Port and Special Economic Zone Limited, to reflect the nature of business. The board of MPSEZL on November 21,2011 has approved a proposal to change the company's name to Adani Ports and Special Economic Zone Ltd. and this change in name from MPSEZL to APSEZL has come into effect from January 6,2012.