Jaypee, Ultratech faces PIL over Kutch cement unit deal

Cement companies-Jaypee Cement and Ultra Tech Cement on September 19 received a notice from the Gujarat High Court over the deal the two companies entered for a cement factory in Kutch. A public interest litigation (PIL) filed by local villagers, alleges that Jaypee Cement has encroached upon the village land and is dumping waste in their village area.

The court said that any deal between the two companies will be subject to the outcome of the PIL. Recently, Aditya Birla Group firm UltraTech Cement had announced it will acquire Gujarat Cement unit of Jaypee Cement Corp for Rs 3,750 crore. The court has also issued notices to the state government.

The PIL charged that Jaypee Cement has encroached on the 'gaucher' (grazing) land, water bodies and lakes and public roads around the plant. The PIL further says 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 alleges.