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Resource centre on India's rural distress
 
 

Fishermen and farmers sue World Bank lending arm over power plant in India -Matt Kennard and Claire Provost

-The Guardian

NGO EarthRights files complaint against IFC on behalf of those affected, over $450m loan for plant that ‘destroyed livelihoods’; IFC claims immunity

In the first case of its kind against the private investment arm of the World Bank, fishermen and farmers from north-western India are suing the International Finance Corporation (IFC) in a US federal court over a $450m loan for a coal-fired power plant. The communities say the IFC has “destroyed their livelihoods” by reducing fish stocks and damaging the environment in Gujarat. The case is filed in the District of Columbia circuit of the federal court system, as that is where the World Bank is based.

But in a move decried by human rights advocates, the IFC says the complaint, filed by the NGO EarthRights International in April this year on behalf of those affected, “must be dismissed in its entirety” because the IFC is entitled to immunity from prosecution in the US under a treaty signed in 1945.

According to the IFC, the International Organisations Immunities Act of 1945 gives it “the same immunity from suit and every form of judicial process as is enjoyed by foreign governments”. A verdict on whether the IFC’s immunity defence will hold, or whether the court will hear the case, is not expected before January 2016.

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