State HC reserves decision on Rishikesh housing case

Uttarakhand High Court today reserved its decision on a case related to alleged violation of environmental laws by the state government to give "undue" favour to a private firm in a Rishikesh-based housing project. After hearing the arguments from all the sides, a two-member bench of the court comprising Chief Justice Barin Ghosh and Justice V K Bist reserved its judgement, said Avtar Singh, the counsel for petitioners Uttarakhand Janta Sangharsh Morcha and others. The state government has filed an affidavit informing the court that it has already withdrawn all the concessions given to the private company Citurgia Biochemicals Limited for constructing a housing project in Rishikesh, Singh said.

The NGOs in their petition have claimed industry land cannot be accorded for a housing project along the river Ganga on environmental grounds. Mumbai-based Citurgia Biochemical limited was permitted to use 30 acres of its sick chemical plant in Rishikesh for a housing project.

The petitioners pleaded that the land should be returned to the government and a CBI investigate into the alleged corruption while giving a nod to the firm to proceed wiht the housing project. However, Citurgia Biochemicals opposed the petitioners' demand for returning land to the state, stating the company now wants to revive its unit. But, the court observed that revival of unit is not possible as it is red-category industry, Singh said.

In September, the High Court had issued notices to the Board for Industrial and Financial Reconstruction (BIFR) and the state government in the case. Government's nod was given under a Board for Industrial and Financial Reconstruction (BIFR) revival scheme. The government has so far maintained in the court that it only followed the advice of the BIFR on the matter. The opposition parties led by Congress had accused Chief Minister Ramesh Pokhriyal Nishank of giving undue favours to the private developer in gross violation of stringent environmental laws.