Have complied by law: Mundra Port & SEZ

Niraj Shah, CNBC-TV18

In what could become a long-drawn battle and a major concern for investors of Mundra Port and SEZ, the Supreme Court has put a stay on all construction activity on the SEZ land.

The Supreme Court has stayed construction activity in the 6,000 acre Mundra SEZ. The stay followed a Public Interest Litigation (PIL) filed by a fisherman living in the area, which alleges that the SEZ seems to have no environmental clearance.

For four weeks there will be no construction at the Mundra Port SEZ. Discounted Cash Flow (DCF) estimates peg the value of SEZ and port business on a like-to-like value. Contribution to DCF valuation stands at around a third of the total value.

Biggest concern for Mundra Port was unfavourable regulation regarding the working of SEZs. It will make a petition to SC with their stand and say they have complied by the law.

"We understand from media reports that an ex-parte application for stay has been granted by the Supreme Court against carrying out construction activities in SEZ at Mundra. We are awaiting the papers from the Supreme Court. We have complied with various procedures and formalities for setting up SEZ at Mundra and will submit the details to the Honorable SC shortly with a request to vacate the ex-parte stay. The port at Mundra is operating normally," said a spokesperson from Mundra.