Rs. 216 crore compensation imposed on Coca Cola company in Kerala

A High Power Committee appointed by the Kerala State Government has recommended to the state to impose fine of Rs. 216. 26 crore to Coca-Cola plant at Palakkad district for damages caused by it.

The High Power Committee headed by Additional Chief Secretary K. Jayakumar submitted a report to the Minister for Water Resources N K Premachandran at Trivandrum on Monday.

According to the Committee’s report it indicated that the cola company had caused multi-sectoral damages amounting to Rs. 216.26 crore through operation of its plant and other actions, and was obliged to pay compensation to the affected people.

Committee further recommended that the State government could either set up a Tribunal under Article 323 B of the Constitution or request the Centre to form an Authority under the Environment (Protection) Act to determine the compensation and enforce payment.

The Authority could be vested with all the powers necessary to deal with the situation created by the company as was done in Tamil Nadu to deal with issues arising from tanneries and other polluting industries. It also suggested that the company, located in a drought-prone area, should not resume its operation.

The Committee observed that the company had violated the Water (Prevention and Control of Pollution) Act, the Environment (Protection) Act, the Factories Act, Hazardous Waste (Management and Handling) Rules, the SC and ST (Prevention of Atrocities) Act, Indian Penal Code, Land Utilisation Order, the Kerala Ground Water (Control and Regulation) Act and Indian Easement Act. “The fact that Coca-Cola factory at Plachimada has caused immense damage to the environment and people and their livelihood and health is supported by impeccable evidence.”

It estimated that the agriculture loss from the activities of the Company would come to Rs. 84.16 crore. Health damages came to Rs. 30 cores and wage loss and opportunity cost to Rs. 20 crore. The cost of providing water to the villagers came to Rs. 20 corres. It also estimated the damage from pollution of water resources to be Rs. 62.10 crore.

“The Committee has come to the conclusion that the company is responsible for these damages and it is obligatory that they pay the compensation to the affected people for the agricultural losses, health problems, loss of wages, loss of educational opportunities and the pollution caused to the water resources. The value of water extracted and depleted has not been calculated though it needs to be compensated.”

The 14-member committee consisted of officials and experts in law, environment, health and water resources.

- Asian Tribune -