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LATEST NEWS UPDATES | Coke Kerala bill: Rs 216cr by John Mary

Coke Kerala bill: Rs 216cr by John Mary

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published Published on Feb 24, 2011   modified Modified on Feb 24, 2011
The Kerala Assembly has passed a landmark law that makes Coca-Cola liable for damages of up to Rs 216 crore for alleged pollution and exploitation of groundwater at its bottling plant in northern Palakkad district.

A committee appointed by the state government has quantified the loss caused by the plant to the local community at Rs 216 crore since the soft drinks maker set up the unit in arid Plachimada.

The previous Left government, led by the late E.K. Nayanar, had invited the company to the industrially backward district.

Hindustan Coca-Cola Beverages Limited (HCCB) dismissed the report as scientifically flawed as it was based on activists’ account. It claimed that the plant had been recharging water tables by harvesting rainwater.

But the company said it “remains willing to engage with all stakeholders”.

“This bill is devoid of facts, scientific data or any input from or consideration given to HCCB,” said company public affairs regional manager Ameer Shahul in a release.

He said the company was never offered an opportunity to present facts, engage in dialogue over this issue or share independent data before the bill was tabled or approved.

“Numerous scientific studies have been conducted by various government bodies to look into any environmental concerns but none of them found our operations responsible for any of the damage alleged in this bill.

“The government’s decision to proceed with no regard for facts or real data sets a dangerous precedent,” he said.

The bill was adopted in the absence of the Congress-led Opposition, which had boycotted the House on other counts on the last day of the concluding session of the current Assembly.

The government can now set up a special tribunal to realise compensation for the local community.

The panel, headed by additional chief secretary K. Jayakumar, had assessed that the plant had caused environmental degradation, over-exploited groundwater and wrought extensive damage to farming by discharging sludge containing cadmium and lead.

Coca-Cola had stopped production following a Left campaign. The government even banned the sale of Coke and Pepsi, produced in a neighbouring village. But Kerala High Court quashed the ban.

The legislation empowers the government to set up a three-member tribunal to dispose of petitions for compensation for violations of laws relating to environment, air and water pollution.

The government or any person aggrieved by the decision of the tribunal can appeal against its order in the high court.

If finally accepted as the law of the land the move would set the trend for similar compensation claims by aggrieved parties elsewhere in the country.

The Telegraph, 25 February, 2011, http://www.telegraphindia.com/1110225/jsp/nation/story_13633837.jsp


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