The Hindu Business Line : Keep Jamshedpur out of Central funds ambit for Jharkhand: SC

NEW DELHI: The Supreme Court has allowed the Jharkhand government to receive funds under the Jawaharlal Nehru National Urban Renewal Mission but asked it to keep away steel city Jamshedpur, which is managed by the Tatas.

The Tata group, which claims to have spent more than Rs 49.32 crore on developing infrastructure in the city in 2005-06, has been refusing to give up control of the city and has been opposing the state government's move to create a civic body for Mango, Jugsalai, Jamshedpur and Adityapur notified areas.

The group has been in favour of an “industrial town status'' for the city rather than formation of a municipal corporation. A bench headed by Justice Altamas Kabir allowed the Centre to grant funds under its JNNURM to Jharkhand except for lease-held are a of Jamshedpur, which is under the control of the Tatas.

It allowed the Tatas to retain management of steel city till the disposal of the petition while modifying its earlier status quo passed in January this year that stalled the Jharkhand Government's plan to set up a municipal corporation to govern the city .

The court also allowed the state government to go ahead with an MoU with the Union Urban Development Ministry for grant of funds under the scheme, and posted the matter for final hearing on November 4. The order came on a petition filed by Tata Steel ch allenging the Jharkhand High Court's ruling in September 2006 that remitted the matter to the state government to decide the status of Jamshedpur.

While demanding industrial township status, Tata Steel said it had been maintaining the civic services in the city since its inception for over nine decades and was ready to continue doing so to avoid the civic body's formation. – PTI

Prev: Sanghi brothers clash over property dispute
Next: Property market to pick up soon: Adi Godrej

Business Line | NUS Index |