Will challenge NGT order to close down Gujarat plant: JB Chemicals

JB Chemicals & Pharmaceuticals on Wednesday said it will challenge in the Supreme Court an order by the National Green Tribunal (NGT) which has directed closure of its bulk drugs plant at Panoli, Gujarat within a month.

In a regulatory filing, JB Chemicals & Pharmaceuticals said the NGT (West Zone) has via order dated January 8, 2016 termed the environmental clearance given to it by the Centre as "illegal" and "directed the Government of India to revoke within one month the environment clearance granted to the company's plant".

Consequently, the NGT has also "directed the company to close down the activities at the said plant within four weeks", it added.

JB Chemicals, however, said it has been operating the plant with a valid environmental clearance which was accorded to the plant by the Ministry of Environment and Forest in January 1994.

"The company plans to immediately appeal the said order in the Supreme Court and is confident that the Court will grant relief to the company especially in light of various technical and factual aspects involved in the matter," it said.

The NGT order has come after the Paryavartan Suraksha Samiti, Vododara and Peoples Union for Civil Liberties, Ankleshwar challenged the said environment clearance to the manufacturing facility.

During 2014-15, the total sale of bulk drugs manufactured at the said plant amounted to Rs 104 crore. Besides, the company also uses active pharmaceutical ingredients (APIs) produced at this plant for captive consumption.

JB Chemicals & Pharmaceuticals' stock was trading at Rs 263.55, down 3.66%, on the BSE.