Skip to main content

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

Counterview News   
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

From a cowshed to a home: How Mangaltai's Palawi gives HIV-positive children a second life

By Dr A.V. Yadappanavar *  In a small village called Takli, not far from the temple town of Pandharpur in Maharashtra, there is a home where children who were once abandoned because of their HIV status now find food, medicine, education, and something even rarer — love without fear. The home is called Palawi, and it was founded in 2001 by Mangal Shah, affectionately known as Mangaltai, a social worker who could not look away from children rejected by their own families.

Kutch water crisis deepens: Bhuj lost 54 of its 82 lakes; pastoralists migrate first time since 2018

By Rajiv Shah   A comprehensive new report by Homes In The City (HIC), a Bhuj-based civil society programme, has revealed that despite late monsoon rains easing Kutch's immediate drought conditions, the region faces a deepening water security crisis — with Bhuj having lost more than half of its historic lakes and pastoral communities forced to migrate for the first time since 2018.

An immortal story of sacrifice: Why the world needs Dr. Kotnis again

By Bharat Dogra*  The recent successful BRICS summit, along with the preceding talks that resolved several contentious issues, has helped create conducive conditions for improving India-China relations. This is good news for both countries and for world peace.