K-Rail Silverline - 'Single Bench Could Not Have Stalled A Prestigious Project' : Supreme Court Refuses To Interfere With Survey Process

The Supreme Court on Monday refused to interfere with the land survey and social impact assessment process for the Silver Line high speed rail corridor project of Kerala Rail Development Corporation (K Rail) in Kerala.

A bench comprising Justice MR Shah and BV Nagarathna dismissed the petitions challenging a division bench order of the Kerala High Court, which set aside a single bench order staying the survey process of the Silverline project.  

The Division Bench had allowed a batch of appeals filed by the State noting that Social Impact Assessment cannot be seen as an empty formality and that the public is entitled to know the adverse impact and consequences they are likely to suffer.

While hearing two special leave petitions against the High Court's order, a Bench comprising Justice MR Shah and Justice BV Nagarathna expressed objection regarding the Single Judge's decision to 'stall a prestigious project'

"The single judge stayed survey of properties of petitioner and any acquisition steps in respect of the proposed semi high speed rail corridor. The Single Judge ought to have appreciated that by such ad interim order the prestigious project couldn't have been stalled. The Division Bench rightly interfered and set aside such an interim order. It's required to be noted that the proceedings at that stage was with respect to Social Impact Assessment studies studies only, which would not cause any prejudice to petitioners. We are in complete agreement with Division Bench's view. No interference of this court is called and SLP stands dismissed", the Bench said.

During the hearing today, Senior Advocate Niranjan Reddy appearing for petitioners submitted that the Division Bench notes that commencement point would be Social Impact Assessment study, but it upheld Government's plea that prior to that study, it can conduct an initial preparatory study which is not under the Land Acquisition Act but under the Kerala Survey and Boundaries Act.

Referring to the interim order passed by the Single judge, Justice Shah remarked 'the High Court has stalled everything and not just the Study. How can such an order be passed in an interim order? Recently we opined in a detailed judgement that projects can't be stalled like this!"

"We don't want to stall any project at all, we are very clear",Justice Shah said.

Mr Reddy submitted that the question is whether social impact assessment study can be undertaken with reference to another enactment(Survey and Boundaries Act) which is not dealing with social impact assessment study.

"What the State is doing now is, proceeding with conducting a survey identifying land, finalising alignment without referring to the Land Acquisition Act, after it finalises this it wants to invoke 2013 provision act and then start social impact study", Mr Reddy said.

"How are you prejudiced? Because of this alignment or survey or study?", the Bench asked.

The Senior Counsel responded saying that the study would see what are possible alternate arrangements to be considered.

"Your objections would be considered at appropriate stage under the Act", the Bench said

The present petitioners, being owners of properties in the districts of Thrissur, Kozhikode and Kottayam, had impugned the actions of Special Tahsildars, Land Acquisition of "unlawfully trespassing" into their properties and laying down boundary stones emblazoned with 'K-Rail' on it, in connection to the land acquisition of properties for the proposed Semi-High Speed Railway Line (Silver Line Project), before the High Court of Kerala

According to the petitioners, immense hardships have been caused to them and other citizens by redrawing of boundaries which has caused much of panic and citizens have been rendered unable to transact on their property as such the procedure adopted by the Respondents is violative of the requirements of Section 11 (4) of the LARR Act 2013.

The petitioners have argued that these acts are being carried out on the pretext of a proposed project, which admittedly does not have approvals or sanctions.

The petitioners have submitted that the case has arisen out of a set of haphazard executive notifications issued by State of Kerala, side stepping the legislative safeguards, so as to expedite project clearances.

Further, all the subsequent submissions defending the actions of the State Government before the High Court aim to justify the said unrelated notifications issued under the guise of undertaking a Social Impact Assessment Study under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 through the procedure under the Kerala Survey and Boundaries Act, 1961.

The petition filed through Advocate Lzafeer Ahmad has argued that the impugned judgments have been passed in complete disregard to the legislative intent and scheme of the LARR Act 2013 and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (Kerala) Rules, 2015 framed by the State Government which is the complete code governing acquisition of land by the State of Kerala for a public purpose including conducting the Social Impact Assessment Study.

Background:

The Silver Line Project is a semi high-speed rail corridor connecting one end of the State to the other and was announced for the first time over 8 years ago.

The Kerala Rail Development Corporation (K-Rail), a joint venture of Indian Railways and the state government, is to implement the project. According to K-rail, the cost of the project was estimated to be around 64,000 crores. Although its Detailed Project Report received a nod from the State cabinet, approval from the Centre is still pending.

The opening move in the project is land acquisition. The Silver Line project demands around 1,383 hectares to be completed, and out of this, a whopping 1,198 hectares are owned by private individuals.

A batch of petitions were filed before Single Bench assailing several steps initiated by the State in its endeavour to materialise the K-Rail project despite sanction from the Centre still pending for the same.

Their primary grievance was in relation to the installation of survey marks by the appellants under Kerala Survey and Boundaries Act, 1961 engraving "K-Rail" in their properties to conduct a Social Impact Assessment (SIA) study for the proposed project.

By the interim order, the Single Judge of Justice Devan Ramachandran kept in abeyance the proceedings initiated by the appellants to survey the properties of the respondents herein, invoking the powers under the Kerala Survey and Boundaries Act, 1961 to undertake the Social Impact Assessment Study, as required under Section 4 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. (LARR Act)

Case Title: VV Varma v State of Kerala & Ors ( SLPC 5391/2022),  Sunil J Arackalan v State of Kerala & Ors ( SLP C 5179/2022)