Securing solution, avoiding pollution..! Gujarat's fishermen win over IFC’s claim for absolute immunity from suit..!

Ahmedabad, April 3: Securing the Indian fishermen belonging to the Kutch district of Gujarat, the United States Supreme Court claimed that the International Finance Corporation (IFC), an arm of the World Bank, financing the construction of a power plant at Mundra, Gujarat, is entitled only to limited or restrictive immunity that foreign governments currently enjoy.

 

 

Further declaring the IFC’s claim invalid for absolute immunity from suit, filed by local farmers and fishermen alleging air, land and water pollution in the surrounding area of the plant, the court rubbed of the allegations in relation. The plaintiffs were led by Waghers, a group of Muslim fishermen who have been fishing in the Mundra waters for generations.

Chief Justice John Roberts delivered the opinion of the court, in which Justices Thomas, Ginsburg, Alito, Sotomayor, Kagan and Gorsuch joined. Justice Breyer filed a dissenting opinion.

It was in 2015, a group of farmers and fishermen who live near the plant, as well as a local village, sued the IFC, claiming that pollution from the plant, such as coal dust, ash and water from the plant’s cooling system, had destroyed or contaminated much of the surrounding air, land and water.

The IFC finances private sector development projects in poor and developing countries around the world. About ten years ago, the IFC financed the construction of the coal fired Tata Mundra Power Plant in Gujarat, by providing $450 million in loans in 2008 to Coastal Gujarat Power Limited.

Under the terms of the loan agreement, Coastal Gujarat was required to comply with an environmental and social action plan designed to protect areas around the plant from damage. However, according to IFC’s internal audit, Coastal Gujarat failed to comply with the said requirements. The audit report criticised the IFC for inadequately supervising the project.

Citing these major environmental damages having raised due to huge industrial projects, the Centre and the state government is up to aid the fishermen, as a result of the functioning of the Mundra plant.