SC dismisses Mumbai SEZ plea for staying land acquisition

SC dismisses Mumbai SEZ plea for staying land acquisition
The Hindu Business Line, June 6, 2009, Page 1

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The verdict puts a question mark on the fate of the Mumbai SEZ Ltd as the project runs the risk of being scrapped

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Mr Mukesh Ambani

Our Bureaus, New Delhi\Mumbai

The Supreme Court on Friday dismissed the Mukesh Ambani-promoted Mumbai SEZ plea for staying the land acquisition process for its project in Raigad, Maharashtra.

This verdict puts a question mark on the fate of the Mumbai SEZ Ltd, promoted by Mr Ambani and his associate Mr Anand Jain, as the project runs the risk of being scrapped.

The acquisition process is to lapse on Monday (June 8), as the two-year deadline set by the Land Acquisition Act would be crossed. If the court had stayed the acquisition proceedings, the statutory deadline for acquiring the land for the project would not have prevailed over the court’s final decision.

The bench, headed by Mr Justice B. Sudarshan Reddy, dismissed the appeal of the company against the order of the Bombay High Court. Earlier, the High Court had declined to interfere in the matter and allowed the firm to approach the Supreme Court.

The company had made a plea for speedy processing of the acquisition pointing out that two years after the State Government issued a declaration of “intention to acquire the land” for the company, the district administration has not made the final award.

Analysts are of the view that the Supreme Court decision is a major setback to Mumbai SEZ. A spokesman for the SEZ said he would not like to make any comment at this stage. However, a source familiar with the development said the promoters along with the State Government may work out a strategy. The SEZ has been facing opposition from farmers and anti-SEZ activists.

Last year, the apex court had transferred a number of SEZ cases to itself from various high courts. All the writ petitions, some of which were by land owners and some others in public interest, challenged the validity and procedure of acquisition of land in several states for building these special zones. The Supreme Court is yet to hear those cases.

The Supreme Court on Friday also issued notice on the Mumbai SEZ petition for transfer of its case to the apex court.

The Mumbai SEZ, which envisages an investment of Rs 40,000 crores, is slated to come up in a 10,000 hectares area in Raigad. The project, which has already been given two extensions, was given clearance in 2005. It was in this context that the company wanted to speed up the acquisition procedure so that it would not lapse. However, it has not got relief either from the High Court or the apex court.

The Maharashtra government had conducted public referendum on the project in September 2008. In the referendum conducted in 22 villages nearly 24,000 farmers took part and 91 per cent voted against the SEZ.