The Hindu Business Line : SC allows NTC mills, buyers to submit development plans

THE Supreme Court today permitted five NTC Mills and developers, who had purchased land belonging to these mills in Mumbai, to submit development plans to the authorities concerned for approval and for seeking environmental clearance.

A Bench comprising Mr Justice S.B. Sinha and Mr Justice P.P. Naolekar passed this interim order during the course of hearing of a batch of appeals against a Bombay High Court judgment scrapping the Rs 20,000-crore project to develop land belonging to 58 sick textile mills located in Mumbai.

The Bench also stayed that portion of the High Court order holding that the sale of surplus land by NTC was contrary to the Board for Industrial and Financial Reconstruction (BIFR) scheme and apex court orders. It said the interim order would be subject to the final outcome of the appeals.

The Bench made it clear that the developers could go ahead with the demolition of the buildings, but could not proceed with any new construction (except construction of compound wall) on these land. Further, there would be no third-party negotiations and buyers would have to proceed on their own risk.

BMC to consider development plans: The development plans would be considered by the Brihan Mumbai Corporation (BMC) as per the revised guidelines introduced in 2003 relating to the open land issue, the Bench said.

The Bench was hearing petitions filed by Bombay Dyeing and Manufacturing Company Ltd, National Textile Corporation (NTC) and other mills affected by the October 17 High Court order.

HC order: Acting on a petition filed by the Bombay Environmental Group, the High Court had held that the five NTC mills — Apollo, Mumbai, Elphinstone Mill Number 3, Jupiter and Kohinoor — were sold without complying with the conditions laid down by the BIFR. Assailing the impugned judgment, the appellants in their SLPs contended that the High Court had erred in the interpretation of the Rules and had also ignored the ground reality about the existing third-party rights created by the developers in the mills land. NTC argued that the High Court was wrong in coming to the conclusion that the sale of the five mills was contrary to the BIFR scheme as well as the May 2005 orders of the Supreme Court. It pointed out that the apex court had permitted NTC to sell the land belonging to these five mills and had ordered that in case the High Court ruled against it, NTC would be required to make up for the open space from the land available in other mills belonging to it.

The mills further argued that ever since the strike by workers in the early 1980s, the cotton textile industry had been under pressure on various fronts. The amendment was proposed only to allow the mills to sell their surplus land.

The SLPs sought quashing of the judgment and an interim stay of its operation. Further arguments will continue tomorrow.

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