HC asks Adani SEZ to get environment nod, freezes construction

The Gujarat High Court on Tuesday directed the industrial units within the Adani Port Special Economic Zone (APSEZ) to stop operations until environmental clearance is obtained for it from the Union Government.

The order of the division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala would affect 12 units.

"There shall not be any further activity in the form of construction, etc, including the functioning of the units in the area in question," the division bench said.

"APSEZ has no environmental clearance and the units are operating in the absence of a valid environmental clearance from the Central Government," the court said, adding that APSEZ must obtain environmental clearance first.

"According to the Environment Impact Assessment notification, 2006, in order to have right of creation of infrastructural facilities over the land allotted, prior approval of the Central Government is necessary before making any construction, and without having acquired such right, the APSEZ, the allottee from the government, could not have conveyed such rights to its lessee," the court said.

The judges also directed the Centre to decide, within a month, whether the environmental clearance should be granted.

"Central Government should take a decision of its own as to whether environmental clearance should be granted in favour of the APSEZ, and if yes, then on what terms and conditions," the bench said.

"The Central Government is directed to take a decision of its own so far as the issue of grant of environmental clearance is concerned considering the position prevailing as of date and also the aspects highlighted in this judgement, within a period of thirty days," the HC said. Further, the court said, "while taking into consideration the issue of grant of environmental clearance, it would be open for the Central Government to even take into consideration the Sunita Narain Committee report as discussed in our judgment."

The committee had been appointed by the MOEF earlier to inspect the project.

APSEZ was earlier called MPSEZ (Mundra Port Special Economic Zone).

Today's order came in response to a Public Interest Litigation filed by villagers of Navinal village in Mundra tehsil of Kutch district, where the SEZ is located, alleging that companies located within the zone were operating and even importing and exporting goods though it does not have an environmental clearance from the Ministry of Environment and Forests.

The petitioners include Jajubha Bhimji Jadeja, Kumbhar Ismail Hasan, Mahipatsingh Ranubhai Jesar and Bhagubha Madhubha Chavda.

In February 2013, the court had asked Ahlstom Fiber Composites, Adi Oil, Empezar, Avesta Eng, Ashapura Garment, Terram Geosynthetic, Theramax, SKAPS Industries, Oilfield Warehouse and Services, Dorf Ketal Specialty Catalyst, Anjani Udyog and Oriental Carbon Chem to stop operations at the Mundra Port in Kutch district, pending clearance from MOEF.

Meanwhile, APSEZ said in a statement that "none of the berths at the Mundra Port are affected by this order. The operations at Mundra Port are absolutely normal".