The Gujarat High Court on Thursday issued a notice to Jaypee Cement and UltraTech Cement, which have entered into a deal for a cement factory in Kutch, Gujarat, on a public interest litigation (PIL) filed by local villagers alleging Jaypee has encroached upon village land and is dumping waste in the area.
A division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala also said any deal between the two companies will be subject to the outcome of the PIL.
Recently, Aditya Birla Group firm UltraTech Cement Ltd had announced it will acquire Jaypee Cement Corp's Gujarat unit of for Rs 3,750 crore.
The court has also issued notices to the state government.
The PIL, filed by Devalben Rabari, sarpanch of Khari village, and another locals charged Jaypee Cement has encroached on the grazing land, water bodies and lakes and public roads around the plant, through advocate Mehul Sharad Shah.
The PIL further said the company - apart from the land given by state government - acquired agricultural land by executing agreements that land owners will be provided employment. However, it did not fulfil this promise, it alleged.
The PIL also states the company is polluting water bodies and the area around its operations by dumping waste material.
"Because of the mining activities, the cement waste is created and the company is throwing such cement waste in the open land near the agricultural field or near the water bodies," the PIL noted.
"Because of such alkali dust and the particles of the cement, agricultural field and the water bodies are badly affected and it creates pollution in the agricultural fields and (pollutes) the potable water."
The court has sought replies by October 10.
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