The Union Ministry of Commerce and Industry has issued a show-cause notice to the Adani Port and Special Economic Zone Limited (APSEZL) for distorting facts,asking why notification for the SEZ should not be withdrawn.
The Union of India additionally filed a caveat in the Gujarat High Court on Saturday,informing the court of the development.
The ministry has sought explanation from the company within 10 days on why the approval granted to the company should not be cancelled and notification for the SEZ withdrawn with immediate effect. The notice is dated June 12.
The Adani Group insisted in a statement that the notice concerns only a new SEZ of 1,840 hectares that was notified in March,and has no relation with the existing operational multi-product SEZ spread over 6,472 hectares,which was notified in 2009. It said port operations and port development activities at Mundra are normal.
In a proposal dated September 23,2011,APSEZL had sought approval for setting up the multi-product SEZ on 1,840 hectares of land,contending that such land is contiguous,vacant and there will not be any public thoroughfare through such land.
However,the examination report filed by Kandla SEZ Development Commissioner nailed discrepancies like the land was not contiguous and is spread over at least 3 separate land parcels,the ministry said.
It is prima facie apparent that APSEZL has deliberately concealed and falsified material facts which have a direct bearing on the grant of approval and subsequent notification, the notice said.
It (company) has also misled this department by furnishing incorrect particulars of land and other related facts,leading to wrongful approval and notification of the land measuring 1840 hectares as an SEZ, the notice issued by Sanjeet Singh,director (SEZ) at the Ministry of Commerce and Industries,said.