PIL Against Kansai Nerolac For Allegedly Breaching Lease Terms By Selling Land

In a recent twist of events in Maharashtra, Kansai Nerolac Paints Limited finds itself at the center of a legal battle. A Public Interest Litigation (PIL) has been filed against the company, accusing it of breaching lease terms. The crux of the matter? Kansai Nerolac allegedly closed down a factory and sold the associated land, triggering a formal complaint from the paint employees’ union.

The PIL, championed by Niwara Abhiyan, a workers’ union, contends that Kansai Nerolac violated the lease agreement signed with the BMC (Brihanmumbai Municipal Corporation). The union argues that this breach also runs afoul of the exemption granted under the Urban Land Ceiling Act (ULCA). Their plea? Utilize the land for public purposes, especially for housing the company’s workers.

The past speaks a lot, let’s see what all happened. Under the ULCA 1976, which states that private entities were restricted to a mere 1,000 sqm of land, with any surplus land required to be handed over to the government. Kansai Nerolac has managed to secure concessions from the government, but recent land transactions have raised eyebrows and legal concerns.

Back in 1937, the BMC gave land to Kansai Nerolac to establish a manufacturing unit and living spaces for working. Fast forward to the year 2003, the Lower Parel factory shut down, which created a saddening effect where they were left with no space and there were financial losses.

The PIL now calls on the Bombay High Court to intervene. The BMC is working and discussing what to hold and release. Chief Justice DK Upadhyaya and Justice Arif Doctor are overseeing the case, with government pleaders expected to respond by January 31, 2024.

Their grievance includes allegations of improper land acquisition and non-compliance with ULCA regulations. Despite the factory closure in 1999, no corrective action was taken, creating a tangled web regarding land usage.