SC allows units in Adani SEZ to operate with rider

In a major relief to 12 manufacturing units operating out of the Adani group?s Mundra Ports and Special Economic Zone (MPSEZ) in Gujarat, the Supreme Court on Monday permitted them to continue their operations, but barred any further construction activity.

A green bench headed by Justice AK Patnaik while issuing notice to the MoEF, MPSEZ, the Gujarat government and others allowed the already functional units, at the time of passing of the impugned order, to continue operations.

However, it barred any construction activity either in the existing or upcoming units. It also asked the development commissioner to give details of the units which were functioning on January 13, the day when the Gujarat High Court shut several manufacturing units over lack of environmental clearance to the Gautam Adani-controlled SEZ in the Kutch region at Mundra.

The bench also directed MoEF to comply with the direction of HC to consider the grant of environmental clearance to SEZ, one of the largest multi-product special economic zones in the country.

The apex court order came on a bunch of appeals filed by the units whose operations were affected after the HC order that said that the MPSEZ had violated environment norms by allotting land to individual units without the mandatory environment clearance required under the Environment Impact Assessment notification of 2006. It had also directed MoEF to take a decision in 30 days, adding that ?till such appropriate decision is taken by the central government, 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 companies ? Oriental Carbon & Chemical (OCC), Skaps Industries India, Terram Geosynthetic, Ahlstrom Fiber Composites, Ashapura Garments, Dorf Ketal Speciality Catalyst, Thermax and Oilfield Warehouse and Services ? contended that the high court’s direction was contrary to the Environment Impact Assessment Notification 2006, which had granted deemed environmental clearance to the SEZ.

Few of the units solely blamed Adani for the shutdown saying they cannot be penalised as they had obtained necessary permissions from the Gujarat Pollution Control Board and its the MPSEZ which was required to obtain necessary environmental clearance for its SEZ as per the 2006 notification.