Skip to main content

US court dismisses Kutch fisherfolks' lawsuit against IFC funding of Tata power plant

By Jag Jivan 
In a major setback to the fisherfolk of Kutch, Gujarat, who have been claiming that their livelihood has been adversely affected by the Tatas' coal-based ultra mega power plant (UMPP) at Mundra, the US District Court of Columbia has given clean chit to the International Finance Corporation (IFC) on the ground that IFC’s "direct involvement" in the Tata Mundra plant did not occur in the US but in India.
Pointing out that the post-approval disbursement of funds could be considered IFC’s failure to ensure proper design, construction, and operation of the plant, the court, however, ruled that mere transfer of funds from the US was not enough to establish “substantial contact” between the US and the complainants.
Fisherfolk Budha Ismail Jam and others filed suit in the US stating that IFC failed to look into destruction of livelihood while funding the project to the tune of $450 million out of tits total cost, $4.14 billion. The Earth Rights International (ERI), a US-based non-governmental, nonprofit organization, specializing in legal actions against perpetrators of earth rights abuses, had taken up the case on behalf of Kutch fisherfolk.
Suggesting that allegations of harm to the fisherfolk were "abstract" in nature as these did not happen in the United States, the court said, even if one accepted that all the allegations were true, the complainant could not established that the lawsuit was “based upon” conduct “carried on” in the US.
In fact, the court argued, the allegation that IFC had failed to ensure the plant was designed, constructed and operated with due care so as not to harm the local community's property, health, and way of life has not been established as having been carried on in the US; "instead, it was focused in India, where the plant is and the harms occurred", it insisted.
The lawsuit had sought to argue that IFC, private arm of the World Bank, was responsible for livelihood loss of Kutch fisherfolk by funding the Tata Mundra project
Given this framework, the court concluded that "the lawsuit does not fall within the Foreign Sovereign Immunities Act's (FSIA’s) commercial activity exception because the suit is not, at its core, based upon activity — commercial or otherwise — carried on or performed in the United States."
"Accordingly", the court ruling, signed by district court judge John D Bates, said, "IFC is immune from suit, and this Court will grant IFC’s motion to dismiss for lack of subject matter jurisdiction." A separate order will be issued on this date.
The lawsuit had sought to argue that IFC, which is the private arm of the World Bank, was "liable for property damage, environmental destruction, loss of livelihood, and threats to human health arising from the construction and operation of the coal-fired Tata Mundra Power Plant in Gujarat, India."
The court previously dismissed the suit arguing that IFC enjoyed absolute immunity under the International Organizations Immunities Act (IOIA). This led the complainants to approach the US Supreme Court, which reversed and remanded the case, holding that international organizations did not enjoy absolute immunity; instead, they enjoyed immunity enjoyed by foreign governments under FSIA.
Back to the Columbia district court, IFC sought to dismiss the complaint, arguing that IFC was immune from suit "even under the more limited immunity granted to foreign governments under the FSIA."
While the complainants countered that IFC was not immune because the suit fell under FSIA’s commercial activity exception, the court rejected it, saying, this did not apply here because the complainants had failed to establish that their suit was based upon conduct carried on in the United States.

Comments

TRENDING

Whither space for the marginalised in Kerala's privately-driven townships after landslides?

By Ipshita Basu, Sudheesh R.C.  In the early hours of July 30 2024, a landslide in the Wayanad district of Kerala state, India, killed 400 people. The Punjirimattom, Mundakkai, Vellarimala and Chooralmala villages in the Western Ghats mountain range turned into a dystopian rubble of uprooted trees and debris.

Election bells ringing in Nepal: Can ousted premier Oli return to power?

By Nava Thakuria*  Nepal is preparing for a national election necessitated by the collapse of KP Sharma Oli’s government at the height of a Gen Z rebellion (youth uprising) in September 2025. The polls are scheduled for 5 March. The Himalayan nation last conducted a general election in 2022, with the next polls originally due in 2027.  However, following the dissolution of Nepal’s lower house of Parliament last year by President Ram Chandra Poudel, the electoral process began under the patronage of an interim government installed on 12 September under the leadership of retired Supreme Court judge Sushila Karki. The Hindu-majority nation of over 29 million people will witness more than 3,400 electoral candidates, including 390 women, representing 68 political parties as well as independents, vying for 165 seats in the 275-member House of Representatives.

Gig workers hold online strike on republic day; nationwide protests planned on February 3

By A Representative   Gig and platform service workers across the country observed a nationwide online strike on Republic Day, responding to a call given by the Gig & Platform Service Workers Union (GIPSWU) to protest what it described as exploitation, insecurity and denial of basic worker rights in the platform economy. The union said women gig workers led the January 26 action by switching off their work apps as a mark of protest.

India’s road to sustainability: Why alternative fuels matter beyond electric vehicles

By Suyash Gupta*  India’s worsening air quality makes the shift towards clean mobility urgent. However, while electric vehicles (EVs) are central to India’s strategy, they alone cannot address the country’s diverse pollution and energy challenges.

'Condonation of war crimes against women and children’: IPSN on Trump’s Gaza Board

By A Representative   The India-Palestine Solidarity Network (IPSN) has strongly condemned the announcement of a proposed “Board of Peace” for Gaza and Palestine by former US President Donald J. Trump, calling it an initiative that “condones war crimes against children and women” and “rubs salt in Palestinian wounds.”

With infant mortality rate of 5, better than US, guarantee to live is 'alive' in Kerala

By Nabil Abdul Majeed, Nitheesh Narayanan   In 1945, two years prior to India's independence, the current Chief Minister of Kerala, Pinarayi Vijayan, was born into a working-class family in northern Kerala. He was his mother’s fourteenth child; of the thirteen siblings born before him, only two survived. His mother was an agricultural labourer and his father a toddy tapper. They belonged to a downtrodden caste, deemed untouchable under the Indian caste system.

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

MGNREGA: How caste and power hollowed out India’s largest welfare law

By Sudhir Katiyar, Mallica Patel*  The sudden dismantling of MGNREGA once again exposes the limits of progressive legislation in the absence of transformation of a casteist, semi-feudal rural society. Over two days in the winter session, the Modi government dismantled one of the most progressive legislations of the UPA regime—the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

Fragmented opposition and identity politics shaping Tamil Nadu’s 2026 election battle

By Syed Ali Mujtaba*  Tamil Nadu is set to go to the polls in April 2026, and the political battle lines are beginning to take shape. Prime Minister Narendra Modi’s visit to the state on January 23, 2026, marked the formal launch of the Bharatiya Janata Party’s campaign against the ruling Dravida Munnetra Kazhagam (DMK). Addressing multiple public meetings, the Prime Minister accused the DMK government of corruption, criminality, and dynastic politics, and called for Tamil Nadu to be “freed from DMK’s chains.” PM Modi alleged that the DMK had turned Tamil Nadu into a drug-ridden state and betrayed public trust by governing through what he described as “Corruption, Mafia and Crime,” derisively terming it “CMC rule.” He claimed that despite making numerous promises, the DMK had failed to deliver meaningful development. He also targeted what he described as the party’s dynastic character, arguing that the government functioned primarily for the benefit of a single family a...