MADURAI
V.V. Minerals, a leading beach sand mineral processor and exporter, has filed a writ petition in the Madras High Court Bench here challenging the suspension of a licence granted to it for operating a beach mineral processing unit at a special economic zone (SEZ) in Nanguneri in Tirunelveli district.
The company, represented by its Managing Partner V. Velmurugan, son of S. Vaikundarajan, urged the court to quash an order passed by MEPZ Special Economic Zone on December 28 suspending the Letter of Approval (LoA) issued in 2011 and another order passed by the Board of Approval on March 27 restraining the firm from carrying out day-to-day operations.
When the case came up before Justice M.V. Muralidaran on Wednesday, the judge directed a Central Government counsel to obtain instructions by Thursday since the petitioner firm had questioned the authority of the officials to suspend the licence on the ground that the Special Economic Zones Act of 2005 did not provide for suspension of the LoA.
In his affidavit, Mr. Velmurugan stated that the LoA was suspended solely on the basis of a letter written by the Tirunelveli Collector to MEPZ SEZ on December 17 as well as another communication from the Additional Commissioner of Customs from Thoothukudi and not on the basis of any violation of the terms and conditions of the LoA.
Hence, the petitioner went on appeal before the Board of Approval under the Union Ministry of Commerce and Industry. Though the Board remanded the matter to the MEPZ SEZ for fresh consideration as per the rules, it ordered that no transaction of the firm would be allowed until the SEZ took a decision on the issue.
Aggrieved over such a restriction imposed on the firm, its Managing Partner contended that hundreds of employees would be rendered jobless and the country would lose valuable foreign exchange if the petitioner company was not allowed to carry out its operations and honour the export commitments.
He also claimed that the orders restraining the company from carrying out regular transactions were grossly illegal and in violation of the principles of natural justice.
