In a recent judgment, the Kerala High Court addressed the overreach of Grama Panchayats in matters beyond their statutory authority, particularly concerning environmental clearances and permissions for industrial activities. The case involved a petitioner who had obtained the necessary licenses and environmental clearances from competent statutory bodies to establish a quarrying unit. Despite these approvals, the local Grama Panchayat denied the petitioner permission under Sections 232 and 233 of the Kerala Panchayat Raj Act, 1994, prompting the petitioner to seek judicial intervention.
Justice N. Nagaresh, presiding over the case, observed that certain Panchayats in Kerala have been exceeding their jurisdiction by impeding statutory processes and causing unnecessary litigation for citizens. The court emphasized that Panchayat institutions are limited to the powers explicitly conferred upon them by the legislature and cannot assume the role of protectors of all public interests. In this context, the court stated, "The Panchayats cannot act as if they are protectors and enforcers of all public interests and exercise powers not vested with them."
The court highlighted that specialized bodies like the State and District Environmental Impact Assessment Authorities possess the requisite expertise to grant environmental clearances. When such expert statutory bodies have provided approvals, Panchayat Committees, lacking similar expertise, should not contradict these decisions. The court noted, "Local Self Government Institutions cannot take a view different from the views of other statutory bodies and stop or create hurdles for the entrepreneurs in going ahead with projects which are permitted under laws."
Furthermore, the judgment underscored the importance of supporting entrepreneurship and start-ups. The court asserted that citizens should be able to rely on the decisions and clearances granted by specialized statutory bodies without facing obstruction from local self-government institutions. This stance aims to foster a conducive environment for economic development and ensure that legally permissible projects are not unduly hindered.
In conclusion, the Kerala High Court set aside the Grama Panchayat's order and directed it to grant the necessary permission to the petitioner for conducting business. This ruling serves as a significant precedent, delineating the boundaries of authority for Panchayats and reinforcing the primacy of specialized statutory bodies in matters requiring specific expertise. It also sends a clear message that local self-government institutions must operate within their legislatively defined limits and support lawful entrepreneurial initiatives without overstepping their designated powers.
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