In a major setback to the Adani Group’s Adani Ports and Special Economic Zone Ltd (APSEZ) at Mundra, the Gujarat High Court on Monday ordered suspension of commercial and developmental activity by 12 units in the SEZ with immediate effect.
The High Court order, delivered by a Division Bench comprising Chief Justice Bhaskar Bhattacharya and Justice J.B. Pardiwala, came in response to a public interest litigation (PIL) filed by the residents of Navinal village, located inside the SEZ.
“The court maintained that the Adani SEZ and several units had put up their facilities, started development on the plots allotted to them and achieved profits from commercial production before the SEZ received the deemed environmental clearance from the Ministry of Environment and Forests (MoEF),” said Anand Yagnik, counsel for the petitioners, speaking to
“This is clearly a violation of the basic core of the Environment Impact Assessment notification,” he added.
There are 21 units in the Mundra SEZ, in Gujarat’s Kutch district. The Adani group has invested around Rs 7,000 crore in the SEZ.
Apart from developer APSEZ, the units that have been asked to cease operations include Aadi Group, Theramax Ltd, SKAPS Industries, Oilfield Warehouse & Services and Dorf Ketal Speciality Catalyst Pvt Ltd.
Berths ‘not affected’ In a statement, the Adani Group said: “The Court has directed the MoEF to decide on granting of EC (environmental clearance) to Mundra SEZ within 30 days.” None of the berths at the Mundra Port has been affected and operations are normal, it added.
Environmental clearance under the EIA notification has to be obtained before the setting up of a project, including an SEZ.
APSEZ, formerly Mundra Port and Special Economic Zone, did not have clearance to set up a port-based multi-purpose SEZ at Mundra.
The SEZ had received deemed environmental clearance from the MoEF in May 2012, prior to which the SEZ and several units inside it had become functional and started commercial operations.
“As per the EIA notification, environment clearance has to be obtained prospectively and the same can’t be applied retrospectively,” said Yagnik after the court order.
He added that the court has directed the Central Government, MoEF and Gujarat Government to consider issuing a clearance to the remaining units in the next 30 days.
Adani Ports and SEZ shares dropped 3 per cent to Rs 143.80 on the BSE, on Monday..