Kochi, Dec 19 (PTI) The Kerala High Court on Friday set aside a state government order permitting the setting up of a liquor plant in Elappully village of Palakkad district, saying that the various factors on which the sanction was granted were not "factually correct in their entirety."
The government order was quashed by a bench of Justices Sathish Ninan and P Krishna Kumar on a batch of pleas challenging the preliminary sanction given to the project.
The bench noted that the plant was being set up in the Elappully Grama Panchayat area, while permission had been granted to establish the unit in the adjacent Kanjikode Panchayat.
It also observed that the Kerala Water Authority (KWA) had initially given "explicit consent" to provide water to the brewery but later retracted its commitment in court, which had been one of the bases for the government’s approval.
"…we find that the various factors which weighed with the government while issuing the government order are not factually correct in their entirety. Therefore, the government order issued based on such facts is liable to be quashed," the bench said.
"In the result, the writ petitions are allowed. The government order dated January 16, 2025, granting preliminary sanction to the company for the establishment of an ethanol unit will stand quashed," it added.
At the same time, the court clarified that its order would not preclude the government from fresh consideration of any application, if made, based on necessary inputs.
The order came on several public interest litigations (PILs) filed by residents of Elappully Grama Panchayat, either individually or through associations, challenging the government order granting preliminary sanction to Oasis Commercial Pvt Ltd to set up an ethanol plant, multi-feed distillation unit, Indian Made Foreign Liquor bottling unit, brewery, malt spirit plant, and brandy/winery plant at Kanjikode at a cost of around Rs 600 crore.
The petitioners had claimed that the government order foreclosed the statutory rights and obligations of the local authorities, who are mandated to grant various permissions for setting up such units.
They also argued that the company had not submitted any application to local bodies for the requisite approvals.
The bench, however, did not agree, saying that unless prior approval from the government was obtained, there was no point in the company seeking sanction from local bodies.
"Even that apart, such rights could not be foreclosed through a government order. Therefore, such apprehension is misconceived," the court said.
The High Court’s decision was welcomed by the Congress, with Leader of Opposition in the state assembly V D Satheesan claiming that the permission was cancelled by the court on the same grounds that the UDF had raised against the brewery.
He also said the government sanction was set aside by the court because the unit was being brought in "without transparency, following procedures, or conducting a study."
Senior Congress leader Ramesh Chennithala said he was pleased that his fight, since his time as opposition leader, against the government’s move to grant permission to breweries and distilleries, "has paid off."
He alleged there was "massive loot and corruption" in connection with the project and demanded that the government withdraw from it. Chennithala also claimed the state government granted sanction for the project without carrying out any studies, in an area like Elappully, which suffers from a severe shortage of drinking water.
Meanwhile, State Excise Minister M B Rajesh, at a press meet in Thiruvananthapuram, said that the court had not found any fault in the government’s decision.
He contended that the court acknowledged the permission was not illegal, but was set aside because the KWA had backtracked from its commitment, and the company was trying to set up the unit in Elappully when permission had been granted for Kanjikode.
The state cabinet, in January, had approved a proposal by Oasis Commercial Pvt Ltd to set up the liquor plant, subject to compliance with existing guidelines and conditions, in Elappully village.
However, the project has faced stiff opposition from the Elappully Panchayat, which claimed that setting up the brewery would adversely affect the environment and agriculture of the village and the surrounding area within a 15-kilometre radius.