SC Over-Rules HC Verdict In Mill Land Case

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- By Aditi R Raja, December 15, 2005, 10:18 IST

Mumbai: The Supreme Court’s interim order issued today, stayed a Bombay High Court order holding that the sale of textile mill land by the National Textile Corporation (NTC) was contrary to the Board for Industrial and Financial Reconstruction (BIFR) scheme and the apex court order. The SC sanctioned the Brihanmumbai Municipal Corporation (BMC) and other concerned authorities to proceed with the clearance of the development plans of the mills of National Textile Corporation (NTC) and developers of the plots.

A bench, comprising Justice S B Sinha and Justice P P Naolekar, conceded the order to this effect during the hearing of a bunch of petitions of private mill owners and the NTC challenging the Bombay High Court. The bench clarified that this provisional order was subject to the decisive results of the pleas awaiting hearing. The court also directed that there could be no construction or third-party negotiations. The bench stated that the BMC would take into account all development plans as indicated by the revised guidelines of 2003 concerning the open land issue.

The HC had earlier stated that the constructions made by developers stood in violation of government notifications as none have acquired consent from the Ministry of Environment and Forests. The Bombay Environmental Action Group (BEAG) too, had filed a PIL charging that NTC had sold surplus lands of its five mills in violation of the Development Control (DC) Rule 58. NTC has 25 textile mills spread over 285 acres in prime locations of the city estimated to be worth over Rs 5,000 crore.

Besides NTC, various others like Apollo Mills, Mumbai Mills, Elphinstone Mills, Kohinoor Mill no 3, Jupiter Mills, Mafatlal Industries, Simplex Mills, Ruby Mills, Swan Mills, Prakash Cotton Mills and Bombay Dyeing have contested the HC ruling.

The hearing is scheduled to continue tomorrow and will resume again in January after the Court vacations.