Madras HC orders Spic to pay Rs.163.73 crores as rent lease

CHENNAI: The Madras High Court has directed the Southern Petrochemical Industries Corporation (SPIC) to pay Rs.168.73 crores as lease rent to the Tamil Nadu government and the court also directed the State to initiate appropriate action to recover the arrear dues.

Spic manufactures fertilizers that are used for agricultural purposes and there is a need to look into the benefits to agriculture observed Justice S M Subramaniam while pronouncing the judgment.

The judge also directed the State to constitute an expert committee within four weeks to conduct field inspections and assess the extent of Government lands under the occupation of Spic to determine the required extent of government lands for storing effluent water by the company and submit a report.

The judge also directed the government to enter into a lease agreement with Spic to the extent of government land required for storing effluent water by fixing usual conditions and lease rent.

The remaining government lands under the occupation of Spic are directed to be resumed immediately and to be utilised for other public purposes and directed the Spic to pay the arrear dues within two weeks.

The Spic moved the Madras High Court (MHC) to direct the State to grant assignment of the Poromboke lands of an extent of 415.19 acres in Mullakadu Village, Tuticorin.

In 1975, the government allowed the Spic to use sand quarry lands at Mullakadu Village for storing effluent water and slurry emanating from its fertilizer plant, and the assistant collector of Tuticorin allowed Spic to enter upon the land without an assignment order.

However, in 1993 the then Collector of Tuticorin issued a demand notice to Spic to pay the lease rent from 1975 to 2008 a sum of Rs.168,73,96,880. Aggrieved by this the Spic moved the MHC to quash the demand notice and grant the assignment for the land.