Adani Vizhinjam Port: Kerala High Court halts "unwarranted" interference by Panchayat in grant of quarry licence

The Kerala High Court recently quashed conditions imposed by the Nagaroor Grama Panchayat in a quarrying licence granted to M/s Adani Vizhinjam Port Pvt Ltd. (Adani), considering that the State had already cleared Adani for such activities as part of the Vizhinjam seaport project. [M/S Adani Vizhinjam Port Pvt Ltd.].When the State's statutory authorities have already given clearance for quarrying to Adani, it was unnecessary for the Panchayat to interfere with the same or constitute a committee to decide on related matters, held Justice N Nagaresh..“These are all issues falling within the powers of the statutory authorities specifically designated for the purpose. When the State Environmental Impact Assessment Authority, the Director of Mining and Geology and the District Collector who is the Chairman of the District Disaster Management Authority have given clearances to the petitioner (Adani), constitution of a committee by the Panchayat to determine these issues is unwarranted,” the High Court said..The Court was considering a plea filed by Adani challenging four conditions imposed by the Nagaroor Grama Panchayat in a resolution to grant Adani license for quarrying.Adani had been selected as the concessionaire for the Vizhinjam seaport project, the construction of which began on December 5, 2015. The port is being currently developed in landlord model with a Public Private Partnership component on a design, build, finance, operate and transfer (DBFOT) basis.The Nagaroor Grama Panchayat had sought to impose certain conditions for quarrying activities after Adani applied for a trade licence. The conditions included the setting up of a committee under the aegis of the District Collector to determine aspects such as the environmental impact of the project, the possibility of a disaster, the amount of mining carried out, etc. The panchayat also called on Adani to carry out Corporate Social Responsibility (CSR) spending in the area and to compensate anyone affected by any disaster ensuing from the project. The Panchayat also directed Adani to withdraw the police protection order issued by Adani against the president of the Panchayat. The local body added that the licence granted to Adani would be reviewed if these conditions are not complied withAdani moved the High Court challenging the Panchayat's conditions, contending that the local body did not have any powers to impose such conditions under the Kerala Panchayat Raj Act, 1994. The High Court, in turn, found that these were all issues falling within the powers of the State's statutory authorities. The Court further noted that the State government had already given priority to Adani in quarrying activities on government land..The High Court concluded that the conditions stipulated by the Panchayat were highly arbitrary and illegal and would not stand the scrutiny of law..Therefore, it set aside the Panchayat's resolution to the extent it imposed conditions for the grant of permission to Adani for its quarrying activities. .Adani was represented by advocates Roshen D Alexander, Tina Alex Thomas, Kochurani James, and Harimohan. The Nagaroor Grama Panchayat is represented by advocate Siju Kamalasanan..[Read Judgment]