In a major relief for the Adani group, the Supreme Court, on Wednesday, lifted temporary curbs, imposed early in July, on development of the Rs 7,400-crore Mundra port project in Gujarat. A bench headed by Chief Justice KG Balakrishnan was responding to a plea by the Adani group, which bagged the contract to develop the port in 2001 along with a special economic zone (SEZ) comprising several projects of public importance, including power plants.
A vacation bench of Justice Altmas Kabir and Justice GS Singhvi had stalled the ongoing work on the project on a lawsuit filed by seven fishermen, alleging that the project was detrimental to the flora and fauna in the region. The vacation bench ordered a status quo on implementation of the project without hearing other parties, including the Adani group, the central and Gujarat governments.
The bench of the Chief Justice, while allowing the Adani group to continue work on the Mundra port project, also ordered it to guard against filling and transforming the environment in Navinal Creek which lies in the vicinity. The bench, which also included Justice P Sathasivam and Justice JM Panchal, also asked the Adani group to guard against causing damage to the widespread mangroves in the area. It granted relief to the Adani group after it pointed out to the court that rather than filling or damaging the creek, as alleged by the fishermen, the group has developed the area as one of the best natural harbours – with a 17.5-metre depth required for the anchor and servicing of large vessels.
Appearing for the Adani group, senior counsel Harish Salve refuted the allegations that the ongoing work at the Mundra port had destroyed the mangroves. He said that the mangroves, instead, had grown by nearly 3% due to the ongoing work on the project. Denying the allegations that the Adani group was indulging in land-grabbing and evicting the fishermen, Salve said that the company had acquired the land strictly in accordance with the law and after paying compensation and premium for rehabilitation of fishermen.
The Mundra SEZ project, established under the SEZ Act of 2005, is proposed to come up on close to 6,000 acre with a total investment of Rs 7,400-crore.
The Adani group also pointed out in its application that the Mundra port was in operation since 1998 and all loading and unloading activities, which require constant maintenance and upgrading, were being undertaken in accordance with the law and only after obtaining necessary permission and environmental clearances. The application added that the group had already invested over Rs 3,500 crore and plans to invest another Rs 4,000 crore in a phased manner. Besides, the projected total investment in the port, the SEZ and power plants are worth Rs 50,000 crore.
The Supreme Court has vacated a stay on the work at the Adani group’s Rs 7,400-crore multi-product special economic zone in Gujarat, allowing work to commence again.
