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2008 Supreme(SC) 2125

SUPREME COURT OF INDIA
K.G. Balakrishnan, CJI., S. Kapadia, D.A. Pasayat, K. Balakrishnan, JJ.
T.N. Godavaraman Thirumulpad - Petitioner
Versus
Union of India & others - Respondent
Writ Petition (Civil) No.202 of 1995
Decided On : 08-08-2008

Headnote:

Orissa Forest Act 1972 – Principle of Sustainable Development – Interlocutory Application preferred by M/s. Sterlite Industries (India) Ltd. [SIIL] is a sequel to our Order in I.A. in Writ Petition (C) etc. in the case of T.N. Godavaraman Thirumulpad v. Union of India & others And in the matter of : Vedanta Alumina Ltd. reported in (2008) 2 SCC 222 – Court need not repeat the contents of our Order except to state that in our Order we suggested a Rehabilitation 2 Package and modalities to sub-serve the principle of Sustainable Development – Held, Court is of the view that, at the pre-operational stage, court need not apply the price mechanism suggested by CEC. – If at the end of the Accounting Year of SIIL, CEC finds that the annual profits 10 before tax and interest is depressed by the pricing mechanism mentioned in joint venture Agreement vide clause 2.3.3(a) then it would be open to CEC to move this Court with the suggested price mechanism in its Report. – In fact, in our Order court have directed that the Accounts of SPV to be audited by Auditor General for State of Orissa after they are prepared by the statutory auditors of OMCL. – It would be open even to the statutory auditors of OMCL as well as CEC to inform this Court at the end of the Accounting Year whether annual profits before tax and interest stands depressed for any reason and at that stage court will certainly consider the price mechanism suggested by CEC in its Report placed before us. – I.A Disposed of

ORDER

T.N. Godavaraman Thirumulpad, J.

This Interlocutory Application preferred by M/s. Sterlite Industries (India) Ltd. [SIIL] is a sequel to our Order dated 23.11.07 in I.A. Nos.1324 and 1474 in Writ Petition (C) No.202 of 1995 etc. in the case of T.N. Godavaraman Thirumulpad v. Union of India & others And in the matter of : Vedanta Alumina Ltd. reported in (2008) 2 SCC 222. We need not repeat the contents of our Order dated 23.11.07 except to state that in our Order we suggested a Rehabilitation 2 Package and modalities to sub-serve the principle of Sustainable Development.

2. For the sake of convenience we quote here-in-below the suggestions made in our earlier order dated 23.11.07 which read as under:

    "(i) State of Orissa shall float a Special Purpose Vehicle (SPV) for scheduled area development of Lanjigarh Project in which the stake-holders shall be State of Orissa, OMC Ltd. and M/s. SIIL. Such SPV shall be incorporated under the Companies Act, 1956. The Accounts of SPV will be prepared by the statutory auditors of OMC Ltd. and they shall be audited by the Auditor General for State of Orissa every year. M/s. SIIL will deposit, every year commencing from 1.4.07, 5% of its annual profits before tax and interest from Lanjigarh Project or Rs. 10 crores whichever is higher for Scheduled Area Development with the said SPV and it shall be the duty of the said SPV to account for the expenses each year. The annual report of SPV shall be submitted to CEC every year. If CEC finds non-utilisation or mis-utilisation of funds the same shall be brought to the notice of this Court. While calculating annual profits before tax and interest M/s. SIIL shall do so on the basis of the market value of the material which is sold by OMC Ltd. to M/s. SIIL or its nominee.

    (ii) In addition to what is stated above, M/s. SIIL shall pay NPV of Rs. 55 crores and Rs. 50.53 crores towards Wildlife Management Plan for Conservation and Management of Wildlife around Lanjigarh bauxite mine and Rs. 20 crores towards tribal development. In addition, M/s. SIIL shall also bear expenses towards compensatory afforestation.

    (iii) A statement shall be filed by M/s. SIIL with CEC within eight weeks from today stating number of persons who shall be absorbed on permanent basis in M/s. SIIL including land-losers. They shall give categories in which they would be permanently absorbed. The list would also show particulars of persons who would be 3 employed by the contractors of M/s. SIIL and the period for which they would be employed.

    (iv) The State Government has the following suggestions on this issue:-

    1. The user agency shall undertake demarcation of the lease area on the ground using four feet high cement concrete pillars with serial number, forward and back bearings and distance from pillar to pillar.

    The user agency shall make arrangements for mutation and transfer of equivalent non-forest land identified for compensatory afforestation to the ownership of the State Forest Department.

    The State Forest Department will take up compensatory afforestation at project cost with suitable indigenous species and will declare the said area identified for compensatory afforstation as "protected forest" under the Orissa Forest Act 1972 for the purpose of management.

    The user agency shall undertake Rehabilitation of Project affected families, if any as per the Orissa Rehabilitation and Resettlement Policy 2006.

    The user agency shall undertake Phased reclamation of mined out area. All overburden should be used for back filling and reclamation of the mined out areas.

    The user agency shall undertake fencing of the safety zone area and endeavour for protection as well as regeneration of the said area. It shall deposit funds with the State Forest Deptt. for the protection and regeneration of the safety zone area.

    Adequate soil conservation measures shall be undertaken by the Lessee on the overburden dumps to prevent contamination of steam flow.

    The user agency should undertake comprehensive study

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