The Punjab and Haryana High Court has intervened in a significant industrial dispute, staying an order issued by the Manesar Municipal Corporation that directed Ultratech Cement to shut down and dismantle its ready-mix concrete plant located at Naurangpur village in Haryana's Gurgaon district. This judicial intervention provides temporary relief to the cement giant while the legal proceedings unfold.
Court Directs Municipal Corporation to File Reply
In its ruling, the court has specifically instructed the Manesar Municipal Corporation to submit a formal reply by February 25, 2025. The court order explicitly states, "Till the next date of hearing, the execution of the order dated January 9 be kept in abeyance." This effectively suspends the implementation of the controversial demolition directive until further judicial review.
Background of the Controversial Demolition Order
The original order dated January 9, 2025, mandated that Ultratech Cement immediately cease all operations at the facility and proceed with complete demolition of the plant within a strict seven-day timeframe. The municipal corporation had warned that failure to comply would result in the MC taking direct action to either demolish or seal the facility, with all associated costs to be recovered as arrears of land revenue from the company.
Justice Harsh Bunger Grants Stay on Ultratech's Petition
The stay order was passed by Justice Harsh Bunger in response to a comprehensive petition filed by Ultratech Cement challenging the municipal corporation's demolition directive. The company presented a compelling legal argument asserting its right to continue operations at the long-established facility.
Ultratech's Legal Defense and Historical Context
In its detailed plea, Ultratech Cement contended that the RMC plant has been operating lawfully for more than two decades with all necessary statutory approvals in place. The facility was originally established by Grasim Industries Limited, which serves as Ultratech's predecessor-in-interest, after obtaining crucial change of land use permissions in November 1998, followed by building plan approval in December of the same year.
The company emphasized that it currently holds multiple valid regulatory approvals, including:
- A valid 'consent to operate' issued by the Haryana State Pollution Control Board in August 2024, which classifies the RMC unit under the environmentally favorable "green" category
- A current factory license
- Comprehensive fire-safety clearance
- Various other mandatory regulatory approvals
Legal Arguments Presented by Ultratech's Counsel
The legal team representing Ultratech Cement, led by senior advocate Anand Chhiber and assisted by advocate Abhilaksh Gaind, presented several crucial arguments before the court. They highlighted that the Manesar Municipal Corporation itself came into existence only on December 24, 2020, which is significantly later than when the plant was originally established and received its initial approvals under the Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act, 1963.
The counsels specifically cited Section 350D of the Haryana Municipal Corporation Act, arguing persuasively that all actions and permissions granted under the earlier legislation should be deemed valid under the current statutory framework. This legal interpretation forms a cornerstone of Ultratech's defense against the demolition order.
Dispute Over Land Use Classification
Ultratech Cement also challenged the municipal corporation's assertion that the original change of land use approval was intended for a generic "factory" rather than specifically for an RMC plant. The company presented evidence showing that the original approvals and site plans explicitly referenced "Vikram Premium RMC," indicating clear municipal awareness of the facility's specific purpose from the beginning.
Allegations of Procedural Irregularities
The cement manufacturer alleged significant procedural lapses in the municipal corporation's actions. Despite Ultratech submitting all relevant documents in response to municipal notices issued in July and August 2025, the company claims authorities failed to properly consider this documentation before issuing the demolition order after an unexplained six-month delay.
Constitutional and Legal Violations Alleged
Ultratech Cement characterized the demolition order as a serious violation of fundamental principles of natural justice and constitutional rights protected under Articles 14, 19(1)(g), 21, and 300-A of the Indian Constitution. The company argued that demolishing a lawfully established industrial operation would cause irreversible damage not only to the physical infrastructure but also to the legal framework protecting industrial investments in the region.
The case continues to develop as both parties prepare for the next hearing, with the future of the RMC plant hanging in the balance pending further judicial consideration of these complex legal and regulatory issues.
