KOCHI: The Kerala High Court on Friday quashed the preliminary sanction given to Oasis Commercial Private Ltd to establish an ethanol unit in Kanjikode, Palakkad, to produce extra neutral alcohol and other liquor products. However, this will not preclude a fresh consideration of any application, by the government, if made, said Justice Sathish Ninan and Justice P Krishna Kumar. “Various factors which weighed with the government while issuing the order, are not factually correct in its entirety. Therefore, the order...is liable to be quashed,” said the court.
The court issued the order on a batch of PILs challenging the preliminary sanction granted to the company to establish an ethanol plant, multi-feed distillation unit, Indian-made foreign liquor bottling unit, a brewery, a malt spirit plant and brandy/winery plant at Elappully panchayat in Kanjikode.
The petitioners said the government order has no legal backing, and preempts the statutory authorities and the local self-government institutions from exercising their powers. The issue assumes significance as Palakkad is a dry area.
The court said the petitioners’ allegation that establishment of the unit will aggravate water scarcity, is a matter of serious concern in Palakkad. The unit would require 5000 KL of water per day. Extraction of such a quantity of water would have serious consequences on the life of residents.
On the source of water, the government order referred to the sanction given by the Kerala Water Authority agreeing to provide required quantities of water, and also the rain water harvesting project proposed by the company. The government order observes that the exploitation of ground water would be avoided. However, the KWA’s affidavit stated “no binding or conclusive consent was given to the petitioner.”
The court said while it noticed that explicit consent was given under the letter dated June 16, 2023, the attempt in the counter affidavit is to shrug off the commitment.