Can’t cite public protest to deny license for industrial unit: Kerala HC

Kochi: High court has ruled that a local authority cannot, simply due to an unfounded hue and cry from a section of people, deny an entrepreneur their constitutional right as a citizen to establish an industrial unit in accordance with statutory permissions.The bench of Justice P V Kunhikrishnan issued the ruling while allowing a plea filed by Sudheer S and Thajudheen A, natives of Thiruvananthapuram, who challenged the order of the Nellanad gram panchayat in Venjarammoodu that had rejected their license application to establish a hot mix plant within the panchayat. HC also set aside the panchayat's impugned order and directed the deputy director of panchayat, Thiruvananthapuram, and the secretary of Nellanad panchayat to approve the petitioners' application within two weeks, if necessary, after imposing appropriate conditions under the Kerala Panchayat Raj Act.The petitioners stated that, despite having all the necessary and mandatory permissions from authorities, including the district medical officer and Kerala state pollution control board, the panchayat rejected their application, citing public protest. The petitioners had first approached the panchayat for a license in 2017 and obtained a deemed license as the panchayat failed to respond within 30 days. Later, the panchayat rejected the application. Even though the local self-govt institutions' tribunal stayed the decision, the panchayat issued a stop memo, prompting the petitioners to move HC. The court directed the panchayat to reconsider the application, but the panchayat again rejected it, leading to the present petition.While allowing the petition, HC observed that such isolated instances discourage entrepreneurs from investing in Kerala. It noted that while the state — known as God's Own Country — often faces allegations that industries cannot progress due to public protests and trade unionism, industrial growth in Kerala has been commendable in recent times. It credited the state's citizens and successive political leaders, regardless of party affiliation, for convincing people of the importance of industries for economic growth.HC further highlighted that with the assembly election underway in Kerala, elected representatives have a duty to assure voters that once statutory clearance is obtained, entrepreneurs will not face unjust obstacles. While public dissent is an acknowledged and protected aspect of a democratic society, it cannot, in the absence of proven illegality, be allowed to completely block ventures that have complied with all statutory requirements. HC cautioned that allowing such a situation to persist would harm not only the petitioners but also the state economy.