http://amkanakasez.blogspot.com/2010/11/hc-scraps-land-for-sezs-in-goa.html

HC SETBACK FOR SEZs

HERALD REPORTER
PANJIM, NOV 26
The Bombay High Court at Goa on Friday quashed and set aside the land
allotments to the seven Special Economic Zone (SEZ) developers in the
State.
Justice F M Reis, who passed the judgement as the other Justice A S
Oka is not sitting at Panjim, also asked the developers to apply
afresh for the land.
The court observed that the allotment of lands to the companies has
been made in undue haste without proper scrutiny of their
applications, the allotment of lands has been made arbitrarily, the
procedure adopted in the allotment was not fair and transparent and
the allotments made by the GIDC do not stand the test of
reasonableness.
The order said that the petitioners as well as the Goa Industrial
Development Corporation (GIDC) shall maintain status quo as of today
for a period of four months.
The order means that the petitioners shall not carry on any further
construction on the said lands and shall not create any third party
rights.
On the other hand, the GIDC has also been directed not to dispossess
the petitioners and not to allot the said lands to third parties.
“If within a period of four months from today, fresh allotment is not
made by the GIDC, on expiry of said four months, it will be open for
the GIDC to take steps in accordance with law for taking possession of
the land,” the order states.
The Government of India had approved in principle 7 SEZs for the State
of Goa, out of which three, namely, Meditab Specialities Pvt Ltd,
Peninsula Pharma Research Pvt Ltd and K Raheja Corportion Pvt Ltd,
were notified.
The others were Maxgrow Filease Pvt Ltd, Planetview Mercantile Co Ltd,
Inox Mercantile Co Ltd and Paradigm Logistics and Distributions Pvt
Ltd.
However, bowing to public pressure the State decided to scrap the SEZs
in Goa. The seven promoters who were allotted land by the GIDC have
demanded damages of over Rs 1500 cr from the Goa government.

HC sets aside land allotment for SEZs
TNN, Nov 27, 2010, 05.32am IST

PANAJI: In a major blow to special economic zone (SEZ) developers, the
high court of Bombay at Goa on Friday held that Goa Industrial
Development Corporation (GIDC) had allotted over 30 lakh sq m of land
to promoters illegally and sans proper scrutiny. Upholding the state
government's decision to withdraw the SEZ policy in public interest, a
division bench comprising justices A S Oka and F M Reis said, "The
allotment of lands to the companies has been made in undue haste
without proper scrutiny of their applications. The allotment has been
made arbitrarily. Procedure adopted in the allotment is not fair and
transparent. The allotments made byGIDC do not stand the test of
reasonableness."

The court, in its 195-page judgment, observed that the allotment of
the public properties vested in GIDC can only be made in a fair and
transparent manner and that too in public interest. It further said
that such huge lands which are public properties were allotted for the
asking to companies in a manner not known to law. The allotment of
lands is illegal being arbitrary and unreasonable.

The state government had, on June 15, 2009, withdrawn the state SEZ
policy following a cabinet decision. Subsequently, GIDC had issued
notices to the SEZ promoters seeking to take back the allotted land,
following which the promoters had approached the high court. In the
same case PILs had also been filed by villagers of Keri, Sancoale and
Verna, challenging GIDC's decision to allot land in their respective
villages on lease agreements to the SEZ promoters. The villagers
complained that the land was allotted fraudulently.

The court further held that as far as three notified SEZs are
concerned, the stand of the Central government is that the Goa
government should negotiate with the developers. It also said that the
notifications have been issued on the basis of allotment of lands by
GIDC. As the allotments are held to be illegal, notifications cannot
be acted upon now.

While granting some relief, the court dismissed petitions filed by
three notified SEZs—Meditab Specialities Pvt Ltd, Peninsula Pharma
Research Centre Pvt Ltd and K Raheja Corporation Pvt Ltd — and four
other SEZ promoters — Paradigm Logistic and Distribution Private Ltd,
Planetview Mercantile Company Pvt Ltd, Inox Mercantile Company Pvt Ltd
and Maxgrow Finlease Pvt Ltd.


-- 
SEZ VIRODHI MANCH
[email protected]
visit: http://amkanakasez.blogspot.com

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