Apex Court admits Orissa appeal on Periphery Development
- New Delhi:6/October/2009The Supreme Court has admitted a Special Leave Petition (SLP) of the Government of Orissa on Peripheral Development Fund.
Justice R V Ravindran has granted the leave and SLP was admitted here on 5 October.
The State Government notified the Policy Directive (No 375, dated 15.01.2004), companies operating in the scheduled areas will have to contribute 5 per cent of their profit for periphery development in the 50 km radius of the project.
Orissa High Court has quashed the order in the case of MS Roy & Company vs the Government of Orissa and restricting the latter to collect periphery development fees from companies
District Periphery Development Societies (DPDS), constituted under the Chairmanship of District Collectors or Revenue Divisional Commissioners, are collecting funds from companies for developmental works in some of the districts.
Acting upon the Samatha Judgment of the Supreme Court, the State Government issued the official directive to collect funds for peripheral development.
However Division Bench of Orissa High Court in September, 2008 rejected it on the grounds that the State Government has neither made any legislation in this regard nor made the collection voluntary.
Recently Apex Court in its judgment on Vedanta Alumina Limited (VAL)’s move to acquire Niyamgiri bauxite mines has ordered to pay 5 per cent of its profit or Rs.10 crore, which is higher for peripheral development of the area.
Taking the cue, the State Government has filed the SLP in Supreme Court.