S Kumars loses defamation appeal against Narmada activists

Narmada Bachao Andolan cites cheating and fraud cases registered by police in support of its press statement against S Kumars and state financial institutions

Published on:

13 Oct 2011, 10:41 am

The Bombay High Court has dismissed an appeal seeking to restrain activists of the Narmada Bachao Andolan from making defamatory statements against the developer of the Maheshwar hydroelectric project on the river Narmada. The appeal was filed by Shree Maheshwar Hydel Power Corp Ltd (SMHPC), a sister concern of textile company S Kumars, which is constructing the Maheshwar dam in Madhya Pradesh's Khargone district.

NBA said former officials from Madhya Pradesh State Industrial Development Corporation (MPSIDC) are reportedly being investigated by the Economic Offences Wing of the state police department for giving a loan of Rs 44.75 crore to S Kumars' sister concern, Induj Enertech, now renamed Entegra
The loan amount exceeded the legally allowed loan limit of Rs 3 crore and was handed over without securing return of the amount. After obtaining the loan, Shree Maheshwar Hydel Power Corp Ltd (SMHPC) defaulted on repayment
Cases were filed by the Economic Offences Wing of the state police against S Kumars' director, Mukul Kasliwal, under charges of criminal conspiracy, cheating and fraud
When the S Kumars refused to pay back, MPSIDC declared Induj Enertech or Entegra as a wilful defaulter in September 2001 and took over the Maheshwar dam site lands and properties belonging to the S Kumars, bringing the work on the project to a complete halt for five years from 2001 up to November 2005