Skip to main content

US Supreme Court ruling on World Bank "unlikely" to help Kutch fisherfolk: ICIJ

By Jag Jivan  
A US Supreme Court majority ruling may have stripped the World Bank of absolute immunity enjoyed by the top lending institute, overturning a 74-year-old presumption that international financial institutions could not be sued when their development projects hurt local communities.
However, reports International Consortium of Investigative Journalists (ICIJ), even as the US Supreme Court struck down the World Bank’s claims of blanket immunity, it did not resolve significant legal issues that will determine the outcome of the case being fought in a lower US court regarding the future of Kutch's "minority fishing community", adversely affected by the Tata Mundra Power plant in Gujarat.
The case concerns impact on the livelihood of Waghers, who had fished from makeshift settlements on the coastline of the Gulf of Kutch for about 200 years. The Tata Group received a loan from the World Bank’s private sector lending arm, the International Finance Corporation (IFC), to build a massive coal-fired power plant alongside the Wagher settlements, reporting that there were “no local fishing activities” in the waters near the plant.
"The project proceeded without counting the Waghers as a community that would be negatively affected by the plant and therefore entitled to compensation", ICIJ said, forcing a community representative, Ismail Jam, to approach a US court against the World Bank, which argued it enjoyed immunity from legal proceedings.
According to ICIJ, "Several years after the coal plant began operating, a study commissioned by a local fishing association found it was discharging hot, polluted runoff water into the Gulf of Kutch, driving fish away from the Waghers’ fishing grounds and depleting their already precarious livelihoods."
Quoting an an internal message to staff, ICIJ said, the World Bank vowed that it would not retreat from its development activities as the case played out in lower courts. “This ruling will not affect our ability to deliver for clients and partner countries,” the bank wrote.
ICIJ said, Chief Justice John Roberts, who authored the decision, wrote that it remained unclear which if any types of development loans counted as “commercial,” which is the category of activity by international organizations that are now subject to US lawsuits.
"He also ruled that a lawsuit based on wrongful actions that occurred outside the US may not have a sufficiently strong connection to the US, or to US-based commercial activities, to be admissible in U.S. courts", ICIJ added.
The case will return to a US district court in Washington DC and "it will likely take years until final decisions are reached" that could result in compensation for the community, said ICIJ, quoting Nadia Daar, director of the Washington DC office of Oxfam and an advocate for communities that bring claims against the bank.
According to Daar, real-world consequences are too often lost in discussions about policy.“We’re all here in Washington thinking about the global implications, but this all stems from one community in India that is still waiting to have their livelihoods restored."

Comments

TRENDING

Manufacturing, services: India's low-skill, middle-skill labour remains underemployed

By Francis Kuriakose* The Indian economy was in a state of deceleration well before Covid-19 made its impact in early 2020. This can be inferred from the declining trends of four important macroeconomic variables that indicate the health of the economy in the last quarter of 2019.

Why Indo-Pak relations have been on 'knife’s edge' , hostilities may remain for long

By Utkarsh Bajpai*  The past few decades have seen strides being made in all aspects of life – from sticks and stones to weaponry. The extreme case of this phenomenon has been nuclear weapons. The menace caused by nuclear weapons in the past is unforgettable. Images of Hiroshima and Nagasaki from 1945 come to mind, after the United States dropped two atomic bombs on the cities.

Civil society flags widespread violations of land acquisition Act before Parliamentary panel

By Jag Jivan   Civil society organisations and stakeholders from across India have presented stark evidence before the Parliamentary Standing Committee on Rural Development and Panchayati Raj , alleging systemic violations of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013 , particularly in Scheduled Areas and tribal regions.

Food security? Gujarat govt puts more than 5 lakh ration cards in the 'silent' category

By Pankti Jog* A new statistical report uploaded by the Gujarat government on the national food security portal shows that ensuring food security for the marginalized community is still not a priority of the state. The statistical report, uploaded on December 24, highlights many weaknesses in implementing the National Food Security Act (NFSA) in state.

Incarceration of Prof Saibaba 'revives' the question: What is crime, who is criminal?

By Kunal Pant* In 2016, a Supreme Court Judge asked the state of Maharashtra, “Do you want to extract a pound of flesh?” The statement was directed against the state for contesting the bail plea of Delhi University Professor GN Saibaba. Saibaba was arrested in 2014, a justification for which was to prevent him from committing what the police called “anti-national activities.”

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

Concentration of wealth in India at levels 'comparable to colonial times', says new report

By Jag Jivan  A new report published in March 2026 by the Centre for Financial Accountability and the Tax The Top campaign paints a stark picture of deepening economic disparity in India, documenting a concentration of wealth that it argues is “comparable to colonial times.” Titled Wealth Tracker India | Tax the Top. Close the Gap , the compilation presents data from the World Inequality Database and the Hurun Rich List to illustrate the meteoric rise of the ultra-wealthy alongside the stagnation and debt burdens of the majority.

Protesters in UK cities voice concerns over alleged developments in Bastar region

By A Representative   Demonstrations were held across several cities in the United Kingdom on March 28, as groups and activists gathered to protest what they described as state actions in India under the reported “Operation Kagar.”

Beneath the stone: Revisiting the New Jersey mandir controversy

By Rajiv Shah  A recent report published in the British media outlet The Guardian , titled “Workers carved the largest modern Hindu temple in the west. Now, some have incurable lung disease,” took me back to my visits to the New Jersey mandir —first in 2022, when it was still under construction, though parts of it were open to visitors, and again in 2024, after its completion.