Cuttack: The Orissa high court has ordered that status quo be maintained concerning 333.34 acres of land under the control of Ballarpur Industries Limited (BILT) at its defunct paper mill in Choudwar until the court decides whether the land can be used for a different purpose.
The High Court issued the interim order on Thursday while considering a petition alleging BILT’s reported moves to change the category of the land where its now-defunct paper mill stands and convert it into plots for sale. Ramesh Chandra Nayak and six other residents of Choudwar had filed the PIL on April 25 last year.
The Choudwar paper mill was originally set up by Titagarh Paper Mills (TPM). The paper mill, after it was declared sick, was sold to BILT in 1994. The state government at that time gave several concessions, including power tariffs, sales tax concession for 10 years, and a waiver of forest royalty, to the new owner.
The assets of the plant included over 600 acres of land in Choudwar and Angul. Nearly 333.34 acres of the 581.6 acres of land of the paper mill in Choudwar is government land. The paper mill has been lying closed since 2002.
The petition sought direction to the state government to take back all land from BILT and use it for industrial purposes. It was taken up for hearing on Thursday. Advocate BPB Bahali made submissions on behalf of the petitioners. The court was informed that BILT had applied for mutation and change of category to carve out the land into plots for sale.
However, additional government advocate Suman Pattanayak submitted that mutation has not happened. The matter is with the law department. Decision to be taken and instructions issued are awaited, she stated, while seeking an adjournment.
BILT counsel S K Acharya submitted that Ballarpur Industries Ltd was subjected to insolvency proceedings. A resolution plan was approved. The plan took into consideration the company’s interest in the land. As such, it is entitled to mutation and change of category.
Taking note of the submissions of the parties, the two-judge bench of acting Chief Justice Arindam Sinha and Justice M S Sahoo posted the matter to March 19 for hearing on BILT’s “right to deal with the land for a different purpose”.
Asking the state government to submit affidavit by then, the bench said, “State is to respond on petitioners’ contention that alienation for purpose of industry and the purpose lost would thereby render basis for the alienation removed.” The HC also sought affidavit from BILT by the next date of hearing.
