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

Dalit woman student’s death sparks allegations of institutional neglect in Himachal college

By A Representative   A Dalit rights organisation has alleged severe caste- and gender-based institutional violence leading to the death of a 19-year-old Dalit woman student at Government Degree College, Dharamshala, Himachal Pradesh, and has demanded arrests, resignations, and an independent inquiry into the case.

From colonial mercantilism to Hindutva: New book on the making of power in Gujarat

By Rajiv Shah  Professor Ghanshyam Shah ’s latest book, “ Caste-Class Hegemony and State Power: A Study of Gujarat Politics ”, published by Routledge , is penned by one of Gujarat ’s most respected chroniclers, drawing on decades of fieldwork in the state. It seeks to dissect how caste and class factors overlap to perpetuate the hegemony of upper strata in an ostensibly democratic polity. The book probes the dominance of two main political parties in Gujarat—the Indian National Congress and the BJP—arguing that both have sustained capitalist growth while reinforcing Brahmanic hierarchies.

From protest to proof: Why civil society must rethink environmental resistance

By Shankar Sharma*  As concerned environmentalists and informed citizens, many of us share deep unease about the way environmental governance in our country is being managed—or mismanaged. Our complaints range across sectors and regions, and most of them are legitimate. Yet a hard question confronts us: are complaints, by themselves, effective? Experience suggests they are not.

Kolkata event marks 100 years since first Communist conference in India

By Harsh Thakor*   A public assembly was held in Kolkata on December 24, 2025, to mark the centenary of the First Communist Conference in India , originally convened in Kanpur from December 26 to 28, 1925. The programme was organised by CPI (ML) New Democracy at Subodh Mallik Square on Lenin Sarani. According to the organisers, around 2,000 people attended the assembly.

Urgent need to study cause of large number of natural deaths in Gulf countries

By Venkatesh Nayak* According to data tabled in Parliament in April 2018, there are 87.76 lakh (8.77 million) Indians in six Gulf countries, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). While replying to an Unstarred Question (#6091) raised in the Lok Sabha, the Union Minister of State for External Affairs said, during the first half of this financial year alone (between April-September 2018), blue-collared Indian workers in these countries had remitted USD 33.47 Billion back home. Not much is known about the human cost of such earnings which swell up the country’s forex reserves quietly. My recent RTI intervention and research of proceedings in Parliament has revealed that between 2012 and mid-2018 more than 24,570 Indian Workers died in these Gulf countries. This works out to an average of more than 10 deaths per day. For every US$ 1 Billion they remitted to India during the same period there were at least 117 deaths of Indian Workers in Gulf ...

Celebrating 125 yr old legacy of healthcare work of missionaries

Vilas Shende, director, Mure Memorial Hospital By Moin Qazi* Central India has been one of the most fertile belts for several unique experiments undertaken by missionaries in the field of education and healthcare. The result is a network of several well-known schools, colleges and hospitals that have woven themselves into the social landscape of the region. They have also become a byword for quality and affordable services delivered to all sections of the society. These institutions are characterised by committed and compassionate staff driven by the selfless pursuit of improving the well-being of society. This is the reason why the region has nursed and nurtured so many eminent people who occupy high positions in varied fields across the country as well as beyond. One of the fruits of this legacy is a more than century old iconic hospital that nestles in the heart of Nagpur city. Named as Mure Memorial Hospital after a British warrior who lost his life in a war while defending his cou...

History, culture and literature of Fatehpur, UP, from where Maulana Hasrat Mohani hailed

By Vidya Bhushan Rawat*  Maulana Hasrat Mohani was a member of the Constituent Assembly and an extremely important leader of our freedom movement. Born in Unnao district of Uttar Pradesh, Hasrat Mohani's relationship with nearby district of Fatehpur is interesting and not explored much by biographers and historians. Dr Mohammad Ismail Azad Fatehpuri has written a book on Maulana Hasrat Mohani and Fatehpur. The book is in Urdu.  He has just come out with another important book, 'Hindi kee Pratham Rachna: Chandayan' authored by Mulla Daud Dalmai.' During my recent visit to Fatehpur town, I had an opportunity to meet Dr Mohammad Ismail Azad Fatehpuri and recorded a conversation with him on issues of history, culture and literature of Fatehpur. Sharing this conversation here with you. Kindly click this link. --- *Human rights defender. Facebook https://www.facebook.com/vbrawat , X @freetohumanity, Skype @vbrawat

Epic war against caste system is constitutional responsibility of elected government

Edited by well-known Gujarat Dalit rights leader Martin Macwan, the book, “Bhed-Bharat: An Account of Injustice and Atrocities on Dalits and Adivasis (2014-18)” (available in English and Gujarati*) is a selection of news articles on Dalits and Adivasis (2014-2018) published by Dalit Shakti Prakashan, Ahmedabad. Preface to the book, in which Macwan seeks to answer key questions on why the book is needed today: *** The thought of compiling a book on atrocities on Dalits and thus present an overall Indian picture had occurred to me a long time ago. Absence of such a comprehensive picture is a major reason for a weak social and political consciousness among Dalits as well as non-Dalits. But gradually the idea took a different form. I found that lay readers don’t understand numbers and don’t like to read well-researched articles. The best way to reach out to them was storytelling. As I started writing in Gujarati and sharing the idea of the book with my friends, it occurred to me that while...

The architect of Congolese liberation: The life and legacy of Patrice Lumumba

By Harsh Thakor*  Patrice Émery Lumumba remains a central figure in the history of African decolonization, serving as the first Prime Minister of the independent Republic of the Congo. Born on July 2, 1925, Lumumba emerged as a radical anti-colonial leader who sought to unify a nation fractured by decades of Belgian rule. His tenure, however, lasted less than seven months before his dismissal and subsequent assassination on January 17, 1961.