Illegal Demolition of Balco Alumina Refinery: Serious Allegations Against Management, Millions in Revenue Loss
Korba, Chhattisgarh: The local management of Vedanta is accused of illegally demolishing the Balco Alumina Refinery and selling it for scrap without government approval. This has led to a loss of millions in revenue for the government. The district INTUC organization has raised serious concerns against Vedanta’s management, highlighting legal violations and corruption.
Established in 1976, the Balco Alumina Refinery was shut down without government consent, raising significant legal and ethical issues. The INTUC press release points out the following key facts:
1. According to the Supreme Court ruling (Case no. (civil) 8 of 2001, Balco Employees Union vs Union of India & ors.), closing the plant without permission is illegal..
2. In 2015, Balco management applied to close the SRS, which was rejected by the state government. Despite this, the refinery was demolished.
3. Cases related to the payment and employment of workers at the Alumina Refinery are pending in the High Court of Bilaspur, with no resolution yet.
4. As per Clause 4.5 of the Sterlite (Vedanta) agreement and Clause 73 of the Articles of Association, presidential approval is necessary before closing or selling any part, which was not obtained.
A local councillor and an advocate accused Balco’s management of providing incorrect information regarding land for the expansion project. They wrote to the administration, stating that management intended to use the land from the demolished Alumina Refinery for expansion. However, no action has been taken on their complaints.
Vedanta management is accused of crossing legal and ethical boundaries by demolishing the Alumina Refinery and selling it for scrap, thus earning millions. This raises serious concerns about legal irregularities and corruption.
