Apex Court lifts stay on Mundra SEZ

  • 10/07/2008

  • Times Of India (Ahmedabad)

AHMEDABAD: In a major relief to the Adani group, the Supreme Court on Wednesday vacated the stay order that stalled work at its Rs 7,400-crore multi-product special economic zone at Mundra. A bench headed by chief justice KG Balakrishnan, while dismissing the petition of fishermen as withdrawn, asked the Adani group not to fill the creeks. The apex court, on a plea by fishermen that the project would affect their livelihood and flora and fauna in the region, had last week directed Mundra Port and SEZ (MPSEZ) to maintain status quo with regards to all activities taking place on the land. It had also issued notice to the ministries of commerce, and environment and forest, the Gujarat government, the Adani group and others. Mundra SEZ, established under the SEZ Act of 2005, is proposed to come up in about 6,000 acres of land with a total investment of Rs 7,400 crore. The Adani Group moved the Supreme Court on July 7 seeking vacation of the stay. Pointing out that all the allegations against its SEZ were baseless and aimed at pressurising it for illegal gains, Adani counsel said the company had not indulged in land grabbing but had acquired the land strictly in accordance with law after giving a public hearing and paying compensation and premium for rehabilitation. The application added that the group had already invested over Rs 3,500 crore in port development and planned to invest another Rs 4,000 crore in phases. Besides, the projected total investment in port, SEZ and power plants was Rs 50,000 crore, it added. Meanwhile, the stock price of MPSEZ on Wednesday hit 20% upper circuit on BSE following the news and settled at Rs 554.