Vedanta Sterlite Copper | Supreme Court: Industry Closure Without Specified Violation Hampers Investment

Closure of an industry, without specifying the violation in “clearer terms”, affects the investment made in the Vedanta company, the Supreme Court said Today while hearing Vedanta group firm Sterlite Copper’s plea against shutting down of its smelting plant in Tamil Nadu’s Thoothukudi.

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Vedanta Sterlite Copper | Supreme Court: Industry Closure Without Specified Violation Hampers Investment

NEW DELHI: Today (22 Feb), the Supreme Court requested the state of Tamil Nadu to clarify the infractions committed by the Vedanta copper smelter facility in Tuticorin, Tamil Nadu, in order to substantiate the closure of the industry.

A three-judge bench headed by Chief Justice of India DY Chandrachud asked Senior Advocate CS Vaidyanathan,

“An industry has to comply with the law and cannot say that it will only comply with those provisions which the authorities point out. But when it is the closure of an industry, you must point out what the violation is. Violation has to be stated if you are closing an industry down.”

In response to the CJI’s query, Vaidyanathan stated that Vedanta was indiscriminately dumping gypsum and slag in the area.

“The problem in this country is not absence of law but implementation of law. The pollution control boards do not have required staff and they lack motivation,”
-the CJI said.

The bench also asked the state about dumping of copper slag and whether they were still to be disposed of.

Vaidyanathan said,

“Yes, even today, at 11 sites”.

“Are you not precipitating this? They (plant) are closed since 2018. Now, we are pointing a finger towards you. Why have you not removed this? You said that due to moisture in these dumping sites the groundwater gets contaminated. Now, for five years, leaching is taking place from these 11 sites. Does the state not have a responsibility to remove them,”
-the bench asked.

Leaching removes vital nutrients from the soil, causing potential deficiencies in crops.

Vaidyanathan said he has understood the court’s intention and that the state will give the firm one last chance to remove the slag. In case they don’t, the government will remove it and recover the cost from the company, he said.

“But for the past five years what you were doing? Now, you will again take samples from there and show presence of arsenic, mercury and say there is pollution,”
-the bench said.

The CJI then reiterated his request to Vaidyanathan, stating,

“It has to be proven that there was an irreparable injury caused. If that is the case, then closure of Vedanta is the only option. Tell us that. Also, if an expert committee could go into this.”

Previously, the Supreme Court had suggested the formation of an expert committee to ensure that strict standards could be established, and the industry could operate after compliance.

Vedanta Sterlite Copper | Supreme Court: Industry Closure Without Specified Violation Hampers Investment

Responding to the CJI’s query, Vaidyanathan remarked,

“The High Court has already gone into this, and no expert committee can sit over judgment on the High Court findings.”

This prompted Justice JB Pardiwala to inquire,

“Are there bits of copper slags still lying somewhere?”
-Vaidyanathan replied in the affirmative.

Justice Pardiwala then commented,

“Are you not precipitating this? The unit has been closed since 2018. We are pointing a finger towards you. Leave them. Why did you not remove this? Moisture escaping from 11 different sites has been there for the past five years. Why did not the state remove this?”

Vaidyanathan responded,

“We will give them one last chance and then remove it.”

To which the CJI remarked,

“We are concerned about the indiscriminate dumping in those 11 sites. This has to be explained.”

The arguments remained inconclusive and are set to continue on February 29.

The case dates back to 2018, when the Tamil Nadu Pollution Control Board (TNPCB) ordered the closure of the Sterlite plant after massive protests by local residents who alleged that the facility was causing widespread and severe pollution, leading to the spread of serious diseases among them.

The decision of the Tamil Nadu Pollution Control Board was later upheld by the Madras High Court in August 2020. The company then appealed to the Supreme Court challenging the High Court order.

PREVIOUS REPORTS ON THE CASE

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Vaibhav Ojha

ADVOCATE | LLM | BBA.LLB | SENIOR LEGAL EDITOR @ LAW CHAKRA

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