‘Won’t come in way of development’: SC refuses to stall Raj-Adani mining project

Dismissing a plea to stall a coal mining project operated by a joint venture between the Rajasthan government and Adani Enterprises for the state’s power plants, the SC said that it is open to decide all disputes finally, but will not issue any interim order to stop the work.

The Supreme Court on Friday said that it will not come in the way of development even as it is committed to determining people’s rights, as existing under the law.

Under a contract between the Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL), a state-run power generation utility of Rajasthan, and Adani, the latter has to mine and transport the coal to RRVUNL’s power plants in Rajasthan (Burhaan Kinu/HT PHOTO)

Dismissing a plea to stall a coal mining project operated by a joint venture between the Rajasthan government and Adani Enterprises for the state’s power plants, the top court said that it is open to decide all disputes finally, but will not issue any interim order to stop the work.

“We don’t want to come in the way of development and we are very clear on that. We will determine your rights under the law but not at the cost of developments. We won’t be stalling any project unless the illegality is writ large,” said a bench of justices BR Gavai and Vikram Nath, shooting down the interim plea.

The bench also clarified in its order that pendency of a clutch of petitions challenging land acquisition for the Parsa coal block in Chhattisgarh’s Hasdeo Arand forest area will not be construed as any form of restraint against the coal mining activities.

“Leave granted. The interim relief is refused. We clarify that pendency of the petition will not come in the way of the project,” stated the court order.

Under a contract between the Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RRVUNL), a state-run power generation utility of Rajasthan, and Adani, the latter has to mine and transport the coal to RRVUNL’s power plants in Rajasthan. The Parsa coal block is located in Chhattisgarh and was awarded to RRVUNL in 2007.

The petitions, filed by several groups of local residents, mostly tribals, had challenged the process of land acquisition for Parsa coal block, carried out by invoking the 1957 Coal Bearing Act. They argued that the 1957 law can be used only for central government PSUs and not in cases where acquired land ultimately reaches a private company (Adani) for mining.

Representing the residents in the top court, senior counsel Sanjay Parikh and advocate Prashant Bhushan argued that the acquisition is illegal also because Adani has a majority stake of 74% in the joint venture, besides the fact that the consent of the Gram Sabha was also not taken.

"The petitions were opposed by the Centre, the state and the coal mine developer cum operator (MDO) . Solicitor general Tushar Mehta and advocate Kartik Seth appeared for the Rajasthan Rajya Vidyut Utpadan Nigam Ltd (RVUN) while senior counsel Abhishek Manu Singhvi represented the MDO."

The lawyers supported the Chhattisgarh high court judgment of May, in which all issues relating to applicability of the Coal Bearing Act, Forest Rights Act and acquisition of land by the government in a tribal area were decided in favour of the State. The senior advocates added that not only the questions of law were elaborately discussed and settled by the high court, compensation has also been paid to the locals in accordance with the law.

At this point, Bhushan urged the bench not to foreclose certain issues by rejecting the interim plea. The court, however, responded that at best, the petitioners in this case could get enhanced compensation if they finally succeed and thus, the project cannot be stalled.