SC grants relief to CWC in row with Adani Ports on alleged land takeover

SC also asked the Union government to evolve a mechanism so that its departments don't take different stands before the court. Attorney General R Venkataramani has been requested to examine the issue

The Supreme Court (SC) on Thursday set aside the Gujarat High Court order, which permitted Adani Ports SEZ to reportedly take over 34 acres adjacent to the latter's Mundra Port, which state-run Central Warehousing Corporation(CWC) claimed to be its land. 

The matter has been sent back to the High Court for a fresh decision. The apex court also asked the Union government to evolve a mechanism so that its departments don't take different stands before the court. Attorney General R Venkataramani has been requested to examine the issue.

CWC had moved the apex court saying that Adani Ports Special Economic Zone (APSEZ) had made misrepresentations to the authorities to take away its 34 acres allegedly adjacent to the latter’s Mundra Port in Gujarat.

In its appeal, CWC challenged the Gujarat HC Division Bench’s order that asked CWC to obtain approval or a waiver as an SEZ-compliant unit from the competent authority in respect of its warehouse facility situated on 34 acres in question within SEZ Area developed by APSEZ. 

When CWC failed to get such approval within three months, APSEZ was directed to acquire land of the same size outside SEZ area for the construction of a warehouse facility within one year. 

The appellant (CWC) was set up by the Government of India in 1957 to provide support to the agricultural sector by operating warehouses and Container Freight Stations across the country. It became a statutory corporation in 1962. 

On the other hand, the Gujarat Maritime Board (GMB) granted a lease of undeveloped land within New Mundra Port Limits to Gujarat Adani Port Limited (GAPL) in 2001. The said lease was for 30 years. 

In 2004, GAPL sub-leased a plot of land of about 34 acres to CWC for setting up a warehouse to be used for storage and handling of foodgrains, notified commodities, and related activities. The lease of the land was for a term up to February 16, 2031. After being granted the lease, CWC set up two Godowns each with a capacity of 33,000 MT. 

When the Special Economic Zones Act of 2005 came into force, CWC made a representation to the Ministry of Commerce and Industry for delineation/denotification of the 34 acres of land from the SEZ. Till the year 2017, there was no obstruction to the CWC in utilising the said area. However, in 2017, the CWC was stopped from using the premises by Adani Ports. 

The bench of Justices BR Gavai and CT Ravikumar also expressed their displeasure on Thursday over the contradictory views of the two Ministries in this case. While the Ministry of Commerce and Industry said delineation/denotification of the 34 acres of land from the SEZ was not possible, the Ministry of Consumer Affairs said it was possible. 

Saying that contradictory views of various departments need to be sorted at the government level, the court sent the matter back to the High Court for further consideration.