Suit against UltraTech, Jaypee deal

Guj HC issues notices to both the companies on PIL filed by local villagers

The Rs 3,750-crore deal between Jaypee Cement and Aditya Birla Group's UltraTech Cement for the former's plant in Gujarat has run into legal trouble. The Gujarat High Court on Thursday ordered the deal involving transfer of a cement plant in the Kutch from Jaypee to UltraTech would be subject to the outcome of a public suit filed by local villagers of Abdasa taluka in the region.

A division bench of Chief Justice Bhaskar Bhattacharya and judge J B Pardiwala has issued notices to the two companies and the Gujarat government. The next hearing is on October 10.

The villagers in their suit have asked Jaypee to resolve the problems of encroachment and pollution before selling the unit. The suit was filed by Kharai Juth gram panchayat, where Jaypee's unit is located in the Abdasa taluka of Kutch, through lawyer Mehul Sharad Shah. It alleges Jaypee has encroached upon grazing land, water bodies and public roads.

The suit has asked the court to intervene to get the land freed and check pollution, caused mainly by mining and dumping of alkali dust. The conflict began when Jaypee laid off local labourers. In the suit, villagers have not only complained about encroachment and pollution but also raised questions on the transfer of the lease land.