Mumbai: A public interest litigation (PIL) petition has been filed in the Bombay High Court against the Kansai Nerolac Paints Limited for allegedly breaching the lease terms by shutting down the factory and selling the land.
Paint employees' union lodge formal complaint
The paint employees' union has lodged a formal complaint with the Kasarwadavali police station against Kansai Nerolac and Hiranandani Developers, alleging an illegal transaction. There was no response from the company to an email sent by FPJ.
According to the plea before the HC filed by Niwara Abhiyan, a workers’ union, Kansai Nerolac, by selling the lands at Thane and Lower Parel, have breached the lease deed signed with the BMC and violated the exemption granted to it under the Urban Land Ceiling Act (ULCA). The plea seeks that the land be utilised for public purpose more particularly for housing the workers of the company.
Govt grants concession to company
Under the ULCA 1976, a private person or company was permitted to possess only up to 1,000 sqm area. And land in excess to this had to be surrendered to the government. Under Section 20, the company sought concessions from the government, which were granted.
The land was leased to Kansai Nerolac by the BMC in 1937 for setting up a manufacturing unit and housing the workers. It had factories in Thane and Lower Parel in Mumbai.
However, the factory in Lower Parel was shut down in December 2003 as most of its manufacturing work was shifted to either outside Mumbai or to other states. Kansai Nerolac had sold land at Thane in July this year and the land at Lower Parel was sold on December 26.
Non-utilization of property cause huge loss to state exchequer
However, after the company shut down its manufacturing business, the land was lying vacant. Non-utilization of the said property for the aforesaid purposes, has caused huge loss to the state exchequer considering the nominal annual lease rent of Re one and Rs384 charged in respect of the said lands, submitted Advocate Gayatri Singh, appearing for the Niwara Abhiyan.
The PIL prays that the BMC be directed to terminate the lease and restrain Kansai Nerolac from transferring, alienating, selling and or creating any third-party rights in the exempted lands.
A division bench of Chief Justice DK Upadhyaya and Justice Arif Doctor recently directed the additional government pleaders Jyoti Chavan and MP Jadhav to file reply affidavits on behalf of the State-Authorities. The HC has also said that the Maharashtra Industrial Development Corporation (MIDC) may also file its affidavit. The HC had kept the matter for hearing on January 31, 2024.
Employees' Union's formal complaint
Meanwhile, on November 15, Paint Employees' Union lodged a formal complaint against Kansai Nerolac and Hiranandani Developers. As per the complaint, between 1965 and 1972, Kansai Nerolac acquired 27 acres of land from residents and farmers. Consequently, operations commenced. In 1999, the factory at Thane ceased operations, leading to the automatic withdrawal of the concessions granted under the ULCA. Despite this, the company neither returned the land to the government nor did the government take any action against the non-compliance.
Shishir Dhavle, Vice President, Paint Employees' Union, commented, "We filed a formal complaint at Kasarwadvali police station, but they declined to register a criminal case stating that its a civil matter. Subsequently, Union approached the magistrate court under section 156, which was rejected. The court directed us to present evidence under section 200, and we plan to appeal”
Dhavle said that while Hiranandani has initiated activities on the land. While labour issues have been resolved, this concerns land under the ULCA meant for worker housing as well as affordable housing for the public at large still remains unsolved.
