AHMEDABAD, June 21: In an interim order on Thursday, the Gujarat High Court granted permission to Sanghi Industries to go ahead with its construction in the non-Coastal Regulation Zone (CRZ) and revenue land, subject to the final outcome of the petition and on furnishing a bank guarantee of Rs 50 lakh to the state government.

A division bench of Justice B C Patel and Justice M S Shah held that the company could construct the desalination plant and building for its power plant on the non-CRZ and revenue land.

However, if it loses this litigation, it would have to hand over the desalination plant and the power plant to the government without claiming any compensation. The company is to provide potable water to people in the vicinity and to its employees.

For other constructions, the bench held that the company had to carry on at its own risk. Sanghi industries offered that if it lost the case, the constructions would be demolished.

Construction has been permitted only on non-forest land as per the report of the Bhardwaj Committee and can be carried out only after obtaining the requisite permission from the authorities. It has been left open to the state government to monitor the construction activities.

Sanghi Industries had filed an application seeking clarification on an earlier order of April 25, 1996, that since Khauthar was non-forest, revenue land, whether construction on that land was restrained. It also asked for a modification of the order to restrict high tide zone to 100 metres rather than the 500 metres as per the earlier order.

The company also requested for directions to the central government to take a quick decision on its application submitted to the Centre on May 1, 1996 for construction on the CRZ land.

Several public interest litigations had been filed against Sanghi industries seeking directives from the court to restrain the company from constructing anything on forest land or within CRZ.

The court observed that the matter was to be examined from two different angles: whether the land allotted by the state government to the company was `forest' or `reserved forest' land and whether the CRZ notification of the Centre to the state on September 27 would be applicable.

The bench modified the earlier order and restricted the high tide line to 100 metres. It also directed the central government to decide within four weeks on the company's application for construction on the CRZ land. The main matters are to be listed for final hearing after four weeks period.

After the order was announced, the counsel for the central government requested the court to stay the order for a period of four weeks to enable the Centre to take appropriate action.

The court, however, held that the company would have to approach the Centre and other authorities to seek permission for construction activities.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.