Kochi: The Kerala High Court has directed that status quo should be maintained with respect to the cancellation of the licence issued by Perumatty panchayat to Hindustan Coca-Cola Beverages to run its bottling plant at Plaachimada.
The panchayat had sent a notice to the company informing that renewal of licence could not be granted for the reason that the company was over-exploiting water sources, thus causing water shortage in the nearby areas. The company had submitted an application on 26 February 2003 itself for renewal of licence, which was due to expire on 31 March 2003.
Later, the panchayat sent a show-cause notice to the company directing them to offer its explanation within 15 days as to why licence should not be cancelled. The company has challenged both these notices.
The time granted for offering explanation is due to expire as on 24 April 2003. The company has so far not offered any explanation as it had challenged the notices before the high court. In this circumstance, Justice K K Denesan granted the company time till 1 May 2003 to offer explanation. The court also directed the panchayat to consider the explanation, if any, and take appropriate decision within two weeks of the receipt of the explanation.