The company has also been issued a show cause notice regarding its alleged non compliance with the provisions of the Environment Protection Act at its Lanjigarh refinery. The Government's decision insists that even the biggest companies must strongly adhere to the law of the land and not take it for granted.
It would be even more fruitful if the Government, in the interest of upholding the law and delivering justice punish the Government officials who helped Vedanta to break the law. It has been argued by some and accepted by the Government that the officials were acting in the best interests of the state and the nation at large. So in effect, they have been given a 'clean chit'. This decision raises the question whether this selective adherence to law involves some politics on part of the Government.
If the Government imposes this kind of punishment retrospectively then India will surely turn into an industrial wasteland as much of Indian industry has thrived in a similar fashion as Vedanta was attempting to.
Had Vedanta succeeded in acquiring this land the Government permission for mining it, it would have left the tribal people of the hills without their land which they consider sacred and as important to their livelihood as their arms and legs. It is in essence "the only place they can call home". They cannot migrate to nearby towns and villages as their lifestyle is totally different than those of people residing in urban and even "modern" rural centers. These tribes are in fact protected by the Schedule V of the Indian constitution and are entitled to some special rights which include the right of not being driven away from their land even in lieu of "suitable compensation".
The failure of Vedanta can be attributed to many reasons, the primary being its inability to create a warm image in the minds of the tribal people through its CSR (Corporate Social Responsibility) initiatives. The primary motive of any CSR initiative is to build positive long term relationships with its stakeholders (which include the surrounding community which it operates within).
If Vedanta had done its CSR properly, it might not have come to this. Thats a very big IF....!
Mitul Choksi
August 26, 2010
2:56 PM Indian Standard Time