Date:04/06/2008 URL: http://www.thehindu.com/2008/06/04/stories/2008060461261300.htm

National

Court gives Goa two weeks time to decide on SEZs

Staff Reporter

PANAJI: The Goa government has obtained two weeks’ time from a Division Bench of the Bombay High Court in Goa to take a decision on its stop-work orders issued to three private developers of Special Economic Zones (SEZs).

The government was on Monday caught in a bind over a communication from the Centre expressing inability to denotify three of the already notified SEZs proposed to come up in Goa.

Following a plea by Advocate-General Subodh Kantak during the hearing of two of the three SEZ cases, the Bench, comprising Justice S.A. Bobde and Justice N.A. Brito, directed the government to decide on the matter.

Stop work orders

Earlier, counsel representing K. Raheja Corporation Pvt. Ltd., Mumbai, one of the three SEZ promoters who have challenged the stop-work orders, brought to the notice of the court that the Union Commerce Ministry had formally written to the Goa government conveying its inability to denotify three SEZs.

In view of the letter, he sought a direction to the State government to vacate its earlier order.

Stating that huge investments in the notified SEZ projects were at stake, the parties — Meditab Speciality Pvt. Ltd., a pharma subsidiary of the Mumbai-based Cipla group, the Mumbai-based K. Raheja corporation Pvt. Ltd., and Mumbai-based Peninsula Pharma Research Centre — challenged the government’s stop-work orders.

Following public pressure and agitations by groups opposed to SEZs, who succeeded in mobilising local people to oppose upcoming SEZ projects, the Digambar Kamat government formally scrapped the SEZ projects on December 31 when agitators threatened to disrupt the new year tourism celebrations. This was followed by the stop-work orders on January 10 this year to the three notified projects, which were carrying on with work at their sites.

Twelve SEZs scrapped

The government scrapped 12 SEZs, which were at different stages of approval and notification, and referred three of the already notified projects back to the Union Board of Approval under the Commerce Ministry for withdrawal of the notification.

Reiterating that it was firm on its decision to scrap the SEZS, the government on Tuesday decided to ask the Central government to review its refusal to de-notify the zones.

After attending a marathon meeting of Cabinet colleagues, Members of Parliament and others convened by him to discuss the situation, Mr. Kamat told journalists here that the government was firm on its decision to scrap the SEZs.