Piramal Pharma Escalates Legal Battle to Supreme Court Over Gujarat Plant Closure
Piramal Pharma Ltd has filed an urgent petition with the Supreme Court of India, challenging a directive from the Gujarat Pollution Control Board (GPCB) that mandates the immediate shutdown of its manufacturing facility in Dahej. The pharmaceutical giant is also contesting a related order that permits the encashment of a ₹15 lakh bank guarantee furnished by the company.
Supreme Court Hearing Scheduled
The plea is set for consideration on February 9 before a bench presided over by Chief Justice of India Surya Kant, alongside Justices Joymalya Bagchi and N.V. Anjaria. This move follows the Gujarat High Court's refusal to grant interim relief to the Mumbai-based company on February 5, prompting the escalation to the nation's highest judicial authority.
The Dahej Manufacturing Facility
The contested Dahej plant, situated within the Gujarat Industrial Development Corporation industrial area, represents a critical component of Piramal Pharma's operational network. It is one of the company's ten manufacturing sites across India and specializes in producing key starting materials (KSMs) for complex hospital generics. Notably, it manufactures components for inhaled anaesthetics like sevoflurane, forming part of a vertically integrated inhalation anaesthesia supply chain that culminates at its Digwal facility.
The Dahej unit is certified as a World Health Organization-Good Manufacturing Practices (WHO-GMP) compliant plant. In a stock exchange filing dated February 4, Piramal Pharma stated that the financial and operational repercussions of the plant's closure remain "not ascertainable at this point in time." The company's complex hospital generics business reported revenues of ₹1,948 crore for the first nine months of the 2025-26 fiscal year, marking a modest 1% increase year-over-year.
Origins of the Environmental Dispute
The regulatory action stems from an incident involving the alleged illegal disposal of hazardous waste. According to the Gujarat Pollution Control Board, on January 30, 2026, a tanker transporting spent hydrochloric acid departed Piramal Pharma's Dahej facility en route to an authorized waste treatment plant in Surendranagar district.
The pollution board alleges that villagers in Gandhinagar district witnessed the same tanker dumping chemical waste into a water canal in the early hours of January 31. Based on local complaints, surveillance data, and route analysis, the regulator concluded the tanker had deviated from its approved path. Holding Piramal Pharma accountable as the generator of the hazardous waste, the GPCB initiated emergency measures, issuing a show-cause notice followed by the closure order on February 3.
The board's directive mandated:
- Immediate cessation of all manufacturing operations at the Dahej plant.
- Stoppage of electricity and water supply, except for minimal usage required for a safe shutdown.
- Prohibition on using captive power and diesel generator sets.
Additionally, the pollution body required the company to submit a ₹15 lakh bank guarantee valid for one year, warning that non-compliance could result in penalties, including encashment of the guarantee.
Piramal Pharma's Defense and Legal Journey
In its challenge before the Gujarat High Court, Piramal Pharma categorically denied any involvement in illegal dumping. The company presented GPS tracking data, including information accessible through the pollution board's own monitoring system, to argue that the tanker was never in proximity to the Gandhinagar canal.
According to the company's submission, the tanker was stationary at Bagodara, a location on the approved route, as the driver had paused to rest. Piramal Pharma further contended that it was not afforded a proper opportunity to present its case and argued that shutting down the entire plant was a disproportionate response, especially since the alleged incident involved a third-party transporter.
However, the Gujarat High Court dismissed the petition on February 5, upholding the pollution board's authority to order immediate closure in situations posing a risk of serious environmental harm. The court declined to examine disputed factual matters such as tanker movement within the writ petition and advised Piramal Pharma to seek redressal through the National Green Tribunal, leading to the current Supreme Court appeal.
