Guj HC stays construction in APSEZ till environmental clearance from MoEF

The Gujarat High Court on Wednesday stayed construction and further development activities by all units in the Adani Group-owned Mundra Port Special Economic Zone (now Adani Port Special Economic Zone (APSEZ)) in Mundra taluka of Kutch district, till environmental clearance is granted by the Union Ministry of Environment and Forests (MoEF).

The directions were issued on a public interest litigation (PIL) filed last year by villagers of Navinal village in Mundra opposing construction, and other developmental activities that changes the landscape, topography or geography, within land and area of APSEZ. This activities included filling up of Kotari creek, dredging and removal of mangrove forests and other trees.

The petitioners had alleged that one of the unit of the SEZ, Alstom Bharat Forge Power Ltd (ABFPL) was doing construction for their Rs 2,400 crore power equipments manufacturing plant in absence of environmental clearance by the MoEF.

A division bench of acting Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala on Wednesday ruled in favour of the petitioners and stayed construction and development activities within the APSEZ till environmental clearance is granted by the Union Ministry of Environment and Forests.

It further directed that not only ABFPL but any unit inside the APSEZ cannot do construction or undertake development activities with out clearance from the MoEF. The PIL was hence disposed.

"The court observed that a single unit inside the APSEZ does not require individual environmental clearance from the MoEF, but to undertake developmental activities, entire APSEZ first requires environmental clearance from the Centre," lawyer for the petitioners said.

“So long the environmental clearance is not granted by the Central Government in favour of MPSEZ for creation of infrastructural facilities on the land so allotted and consequent to such permission, such facilities have been actually created by the allottee, the latter cannot lawfully lease out the right of enjoyment of the infrastructural facilities to its Lessee (ABFPL),” the court observed.

In the PIL the petitioners had alleged that villagers of Navinal village were collectively deprived of grazing land as the government had sold 231 acres of grazing land out of 276 acres under the village to APSEZ owned by Adani Group, leaving only 45 acres for grazing land for the village.

The petitioner had further alleged that Gujarat government had sold the land of Navinal village to APSEZ in violation of government resolutions of 1950 and 1954 which provide for standard of reservation of grazing land besides laying down the criteria for counting grazing cattle.

"This (HC order) has no impact on ongoing port operations and port development activities at Mundra for which the Company has requisite environmental clearance," a statement by Adani Group said.

"The Hon’ble Gujarat High Court has passed an order in a PIL related to the construction activity by Alstom Bharat Forge Power Limited in SEZ at Mundra. The order states that Alstom Bharat Forge individually do not require any environmental clearance, however, it cannot construct till Mundra SEZ receives environmental clearance," it further stated.

ABFPL is setting up its largest integrated facility for turbine, generators and auxiliaries manufacturing in 120 acres of APSEZ with an annual capacity of 5000 MW.