The Bombay High Court has dismissed a petition from the Maharashtra Industrial Development Corporation (MIDC) aimed at evicting Indiabulls Industrial Infrastructure from a special economic zone (SEZ) project in Sinnar, Nashik.
The ruling upheld prior interim relief granted by the Nashik district judge, which had suspended MIDC’s eviction order from February 29, 2024.
Indiabulls Industrial Infrastructure (IIIL) is now part of Embassy Developments.
The dispute traces back to 2007 when MIDC and Indiabulls signed an agreement to develop nearly 2,500 acres into an SEZ. MIDC held an 11% equity stake, while Indiabulls retained 89%. Lease agreements were executed from 2007 to 2012 for both processing and non-processing areas.
Court documents indicated that the project encompasses 1,265 acres of processing land and 1,234 acres of non-processing land. MIDC stated that portions of the processing area were undeveloped, leading to show-cause notices in 2022-23 and an eviction order last year, while the non-processing zone was fully developed.
MIDC contended that the SEZ was not developed as agreed, while IIIL pointed out that large projects require multiple approvals, and that the non-processing zone was completed. The Nashik district judge offered interim protection in September 2024, which MIDC later contested in the high court.
Additional context includes the sub-leasing of approximately 1,070 acres of the non-processing area to Sinnar Thermal Power, which invested over Rs 9,000 crore in constructing a thermal power plant on-site.
The power company subsequently entered insolvency proceedings, with Mahagenco emerging as the successful bidder. Industry experts noted that the absence of 110 acres required for a railway siding to transport coal impacted the project.
A spokesperson from Embassy Developments commented that recent events mark a significant step toward revitalizing the project. The current management aims to resolve the matter amicably with MIDC, benefiting all involved parties, notably the project-affected people (PAP).
Such a resolution would return PAP land to farmers, complete SEZ debonding, and facilitate industrial use of the land, benefiting stakeholders, including MIDC as a shareholder in the joint venture.
The high court’s ruling allows all arguments to remain open for adjudication in the ongoing civil appeal while preventing any immediate coercive actions against the company.
