IS THERE A BIG DEAL ON WITH SEZ PROMOTERS? (Herald)

May 11, 2014

 GLENN COSTA

glenn@herald-goa.com

 

PANJIM: Six-and-a-half years after the scrapping of Special Economic Zones or SEZ policy by the government, following a massive agitation and almost around three-and-a-half years after the High Court declared their allotment illegal, the spectre of them coming back – albeit in some other form like old wine in a new bottle  – is looming large again. 

After the High Court order, the majority of the appeals of promoters of the then SEZs and the opponents have been admitted in the Apex Court. The locals had approached the court against the blatantly illegal way the SEZs were allotted, and asked for action against officers responsible. Activists of the SEZ Virodhi Manch, who files individual petitions against separate promoters also submitted that the land was not used for the purpose it was acquired and should be returned back to the owners. The High Court in its orders was very clear that the SEZ allotments were “not done in a manner known to law.”

But now, despite the large scale rancor against the SEZs and public protestation that there will be no SEZs, high-level sources have confirmed the State government is in talks with the SEZ promoters in a bid to get them to withdraw the petition filed in the Supreme Court challenging Government’s decision to cancel SEZ policy in 2008. 

Officials at the Secretariat on condition of anonymity confirmed that Government has taken a policy decision not to have SEZs in Goa, but would instead take over the land and utilize it for industrial development. They confirmed that the government has approached SEZ promoters demanding that the petitions be withdrawn.

SEZ TO PIE: It will basically entail giving them the same land and rebranding the development as a private industrial estate, (PIE) senior sources in the GIDC informed Herald.

GOVT BATS FOR SEZ GUYS: The government is now batting for the SEZ promoters. Officials said that government has already put up case before the Apex Court seeking dismissal of petition filed by the firms, pointing out that several irregularities were committed by former government while allotting SEZ land. 

SEZS STILL NOT DE-NOTIFIED: The State has withdrawn the policy and GIDC had sent show cause notices on January 1, 2008. 

But sources say that the SEZs have not been de-notified by the State government on the pretext that it is sub judice and the possession of all that land is still with the allottees. A response to an RTI application on the status of SEZs by the GIDC on 22.2.2013 states Goa-IDC has not taken any decision to de-notify the SEZ.

As per that information the three SEZ notified as on December 5, 2013 are the 123.2-hectare biotech SEZ of Meditab Specialities in Keri-Ponda, a 107.17-hectare services SEZ of K Raheja Corp Pvt Ltd at Verna and a 20.36-hectare Biotech SEZ of Peninsula Pharma Research Centre Pvt Ltd at Sancoale.

After a humungous 38,40,886 sq mts of land was allotted for SEZs by Goa Industrial Development Corporation (IDC) in 2006, there were massive public protests in 2006-08, the Congress government decided to scrap seven SEZs and withdraw the State SEZ policy. However, by then, three of the seven SEZs were already notified by the Union government and four were under process of being notified. And four were under process of being notified. 

 

 

 

chronology

 

GIDC Board meeting of 28/3/2006 cleared an area of 12.32 lakh sq. mts of and in Keri village allotted to Meditab Specialities Pvt Ltd for a pharmaceutical SEZ and 2,06,350 sq. mts in Sancoale village to Peninsula Pharma for a Research & Development Centre. 

 

 Maxgrowe Finlease Pvt Ltd got 2,00,000 sq mts of land for I T SEZ on 7/6/2006.

 Criminal complaint filed before the police stations and various authorities on 22/10/07. 

 December 3: People stormed the Raheja SEZ.

 Nov 30, 2007: SVM delegation called on the Chief Minister alleging construction and hill cutting by heavy machinery by Rahejas at Verna and Cipla at Keri.

 On Dec 3, 2007: People from different villages stormed the Keri SEZ site. Labourers were forced to stop work and leave the premises and heavy duty earthmoving machineries forced out.

 Dec 10,  2007: The Chief Minister convened a meeting with SEZ promoters and makes a statement to the press that SEZ developers had assured Government that no further work will be carried out till the Government clarifies its stand on SEZs.

 A huge public meeting was organized on 14/12/2007 at Margao. The meeting resolved that if the Govt does not scrap the SEZs and declare its stand on the issue before 31/12/2007 the agitation will be intensified. 

 Dec 31,  2007: The Chief Minister declared that the government had decided to scrap the SEZs in Goa in the present form. 

 January 7, 2008: The Government issued stop work orders to the SEZ promoters asking it to stop work as it had decided to scrap SEZ in the present form.

 January 8, 2008: SVM & villagers entered the Police Headquarters at Panjim for refusing to register the FIR filed by villagers of Loutolim, Verna & Nagoa on 22/10/2007.

 Jan 10,  2008: The Government makes a letter to the Board of Approvals at the Centre requesting it withdraw approval granted to companies for SEZs and to de-notify the SEZs.

 One day later, on Jan 11, 2008, the people storm the Raheja SEZ and forcefully stop the works still going on in full swing even though the stop orders were issued by the Govt. 

 April 28, 2008: Three different PILs were filed in the Bombay High Court, Goa Bench by villagers from the three affected villages against the GIDC, State Govt and the SEZ promoters. 

 June 13, 2008: Cornered by the three petitions filed by the villagers. GIDC issues show cause notices to all seven SEZ companies seeking to revoke the land allotted for SEZs.

 June 28, 2008: The Govt withdraws the stop work orders issued on 7/1/2008 to SEZ promoters after it was found that stop work orders were issued without first issuing a show cause notice as required in law. The govt assures the court that fresh stop work orders shall be issued after following due procedures of law. The court allows the  SEZ promoters to start work at their own risk. 

 July 11, 2008: People from various villages get together and storm the Raheja SEZ at Verna and once again stop work being carried out in view of the withdrawal of stop work order by the govt. 

 June 15, 2009: The Cabinet decides to withdraw the SEZ policy notified in the State. 

 Nov 26, 2010: The Bombay High Court at Goa squashes the allotments by GIDC to the five SEZ companies at Verna, one at Keri and one at Sancoale for setting up SEZs. The judgement allows the SEZ companies to apply afresh and GIDC can allot land to the companies for industrial purposes only. 

 

 

Case in court, deal out of court

 

HC in Nov 2010 passed order quashing the allotments of the land allotted to the SEZ promoters. 

Six of the seven promoters -  K Raheja & Corporation, Peninsula Pharma Research Centre, Planetview Mercantile Co, Inox Mercantile Company and Paradigm Logistics & Distribution approached the SC after High Court 2010 November judgment cancelled allotments. 

In 2011, SC issued notices to the Centre, State and GIDC asking them to maintain status quo, stayed the High Court order. 

Locals also filed a petition asking for orders to return the lands back to the original owners (ii) accountability from persons responsible for illegalities committed not granted by the High Court. 

The case No. before the Supreme Court is No. SLP © No. 36458/2010

 

 

  SEZ promoters may come back in another avatar in a Private Industrial Estate

  Govt asking promoters to withdraw their petition in SC against the HC order cancelling their plot allotments

  Govt has not even de-notified, three of the seven notified SEZs

  Land not taken back even from the four SEZs not notified

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