After nearly 18 yrs, Goa govt ends Keri SEZ dispute

Panaji: The state cabinet on Wednesday decided to take back 123 hectares of land allotted to Meditab Specialist Ltd for setting up a Special Economic Zone (SEZ) at Keri, in Ponda taluka. Chief minister Pramod Sawant said that govt will come up with an environment-friendly project at Keri.

The cabinet said that the proposal for settlement offered by Meditab Specialist Ltd was accepted, so that the land of 123.2 hectares may be taken back by Goa govt for utilising it for other projects.

“We have done settlement with the company and taken land back,” Sawant said.

As the Goa Industrial Development Corporation (GIDC) did not accept Meditab Specialist Ltd’s offer due to financial constraints, the proposal was brought before the cabinet to decide to make a payment of Rs 33 crore and transfer the land from Meditab to govt.

The Goa SEZ Policy, 2006, was introduced to align with the Special Economic Zones Act, 2005, and SEZ Rules, 2006, enacted by govt of India. This policy sought to boost economic growth and attract investments by establishing SEZs.

As part of this policy, land was allocated to seven promoters. The GIDC allotted over 12 lakh sqm of land in Keri, Ponda to Meditab Specialities Ltd. Due to public opposition to the SEZ Policy, Goa govt issued a white paper in Dec 2007. The paper highlighted concerns about the limited benefits of SEZs and their adverse impact on critical infrastructure, such as water and electricity. Following these findings, govt decided to withdraw the SEZ policy in 2008.

Subsequently, the Goa-IDC issued show cause notices to all SEZ promoters, including Meditab Specialities Ltd, asking why their lease agreements should not be cancelled. A formal cancellation order was issued on June 24, 2008.

The cabinet said that aggrieved by the cancellation order, Meditab Specialities Ltd and other SEZ promoters filed a writ petition in the high court of Bombay at Goa. In Nov 2010, the high court upheld state govt’s decision to withdraw the SEZ policy.

The cabinet mentioned that dissatisfied with the high court judgment, Meditab Specialities Ltd and other SEZ promoters appealed to Supreme Court. The matter is currently pending, the cabinet said.