Team Herald
PANJIM: As Goa Industrial Development Corporation (GIDC) has agreed to pay Rs 300 crore to the promoters of Special Economic Zone (SEZ) to unlock 38 lakh sq mtrs of land allotted to them, Herald takes you back to the day eight years ago when the High Court of Bombay at Goa, had termed the allotment of land to SEZs ‘illegal being arbitrary and unreasonable’. The order that set aside the allotment was, however, stayed by the Supreme Court, which continues to hear the matter even today.
Upholding the State government’s decision to withdraw the SEZ policy in public interest, a division bench comprising justices A S Oka and Justice F M Reis had granted liberty to the SEZ promoters to apply afresh for allotment of the same land for any ‘lawful purpose except for setting up of SEZ’.
“If fresh allotment cannot be made, GIDC will have to refund the amounts received towards deposit, lease premium, interest and rent as per notice dated 13th June 2008 at the time of the companies handing over the possession of lands,” the High Court had said in its 195-page order delivered in November 2010.
The 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 had approached High Court challenging State government decision to withdraw SEZ policy.
“The allotments as well as the lease deeds executed on the basis of the orders of allotment are quashed and set aside,” the Court had said. This was challenged in the Supreme Court that directed the Centre and State to maintain the status quo, while staying the High Court order.
“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. Procedure adopted in the allotment is not fair and transparent. The allotments made by the GIDC do not stand the test of reasonableness,” the Court had observed adding that the allotment of the public properties vested in GIDC can only be made in fair and transparent manner and that too in public interest.
The Court had further pointed out that there was no direction issued by the State government in exercise of powers under Section 16 of the GIDC Act to allot any land for the purposes of setting up SEZs.
“The power under Clause (a) of Section 14 of the transfer of lands vesting in GIDC can be exercised only with a view to ensure establishment, growth and development of industries. Therefore, the exercise of power under Section 14 for grant of land for setting up SEZs will depend on the factual situation such as the purpose for which it is going to be used by the SEZ. If the land is to be allotted or transferred to SEZ predominantly for promoting or establishing or developing industries, then the power to allot can be lawfully exercised,” the Court had maintained.
