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This is an archive article published on December 5, 1998

HC strikes down Sahara’s Amby Valley project

MUMBAI, December 4: The Bombay High Court today set aside the permission granted by the state government to Sahara India Housing Limited ...

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MUMBAI, December 4: The Bombay High Court today set aside the permission granted by the state government to Sahara India Housing Limited to develop a hill station near Lonavala.

While deciding on three public interest petitions – two filed by the Bombay Environmental Action Group (BEAG) and one by a group of NGOs comprising Shankar Brahma Samajvijnyan Granthalaya, Parisar and Econet – the division bench of Justice Ashok Desai and Justice P S Patankar quashed the letter of intent issued to Sahara India on January 7 last year. The final hearing of the petitions had concluded around three months ago. However, the bench had kept the judgment in reserve and it was pronounced before the parties concerned in Justice Desai’s chamber today.

The bench headed by Chief Justice M B Shah had admitted the petitions a year ago. However, since no interim relief was granted, the petitioners moved the Supreme Court. But, following Sahara India’s assurance to the apex court that it would not carry out any construction at thesite till the matter was settled, the case was referred back to the high court.

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The litigation revolved around 3,763 acres of land spread across seven villages of Mulshi taluka near Lonavala. Sahara India had bought the land from around 69 individual owners in the early nineties.

While directing the government to conduct a probe into Sahara India’s land deals, the court today observed that the company was a “mere power of attorney holder of the individual purchasers of land” and therefore could not receive a letter of intent.

The court ruled that the letter was illegal and “nothing but an attempt to regularise the illegal development carried out by Sahara.”

Without going into the ecological aspect of the mega project – named by the developers as the Amby Valley project – the division bench restricted itself to the point that Sahara India took advantage of a govenment notification (dated November 26, 1996) which allowed private parties to develop hill resorts. The court observed that since thenotification permitted only owners to develop their land, Sahara group could not claim such a right. Moreover, the company had started construction even before the government notification was issued.

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While striking down the multi-crore hill resort project, the court upheld the validity of the government notification calling for private participation in development of hill stations. The court observed that the government decision would give the much-needed boost to the tourism industry. However, the court has asked the government to impose certain restrictions on private parties which seek to develop hill stations. For instance, the chosen private group must develop certain public amenities (roads, water bodies, open spaces) in the area that they develop. The second condition imposed on private groups is compulsory plantation of trees in the vicinity. “The private parties should be instructed to plant fruit-bearing trees and not mere creepers or ornamental/decorative plants,” the 120-page ordersaid.

A victory for govt policy, says CM

CM Manohar Joshi today expressed satisfaction over the HC upholding government’s Nov 1996 notification regarding development of hill stations through private parties. He said the HC has ruled out the argument that the notification was issued in favour of Sahara India. “I am happy that the HC has upheld our policy. Investors will now participate in development of hill stations,” Joshi said.

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