US judge nixes lawsuit against World Bank over Gujarat power plant | Latest News India - Hindustan Times
close_game
close_game

US judge nixes lawsuit against World Bank over Gujarat power plant

Thomson Reuters Foundation | By, New York
Mar 31, 2016 01:01 PM IST

A US federal judge has dismissed a lawsuit filed by Indian fishermen and farmers against the World Bank over a loan for a power plant in Gujarat they claimed ravaged the environment.

A US federal judge has dismissed a lawsuit filed by Indian fishermen and farmers against the World Bank over a loan for a power plant in Gujarat they claimed ravaged the environment.

The World Bank’s International Finance Corporation (IFC) is shielded by immunity and cannot be sued in the United States, the US district court judge ruled.(webdata - Fotolia)
The World Bank’s International Finance Corporation (IFC) is shielded by immunity and cannot be sued in the United States, the US district court judge ruled.(webdata - Fotolia)

The World Bank’s International Finance Corporation (IFC) is shielded by immunity and cannot be sued in the United States, the US district court judge ruled.

Hindustan Times - your fastest source for breaking news! Read now.

The IFC loaned $450 million to help build the coal-fuelled Mundra power plant, which became fully operational in 2013.

The company that carried out the project, Coastal Gujarat Power Limited, a subsidiary of Tata Power, said it would create jobs, benefit 16 million domestic consumers and provide competitively priced electricity to industry and agriculture.

But fishermen, farmers and others living near the plant said it took a huge toll on the environment.

Saltwater leaking from the plant made groundwater undrinkable and unfit for irrigation, hot water from the cooling system harmed the fish catch and air quality suffered, they said in the US lawsuit filed last year in the District of Columbia.

Their way of life could be “fundamentally threatened or destroyed,” the complaint said, accusing the IFC of irresponsible and negligent conduct in financing and supervising its loan.

But US District Court judge John Bates in a ruling last week said under the International Organisations Immunities Act, the IFC is immune to prosecution in the United States.

The farmers plan to appeal, the US nonprofit EarthRights International, which filed the lawsuit, told the Thomson Reuters Foundation.

“This is a fight for our lives and livelihood,” Gajendrasinh Jadeja, head of Navinal panchayat, a village that is a party in the case, said in an email. “We believe we will prevail,” Jadeja said.

An IFC spokesperson said the organisation would not comment on active legal matters. A plan being implemented by Coastal Gujarat Power, however, includes what she called “mitigation measures,” she said, but she did not elaborate.

The World Bank and IFC have come under criticism by groups that contend their focus on big projects can disrupt the environment and displace people.

The IFC, with 184 member countries, is the “largest global development institution focused exclusively on the private sector in developing countries,” according to its website.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On