The Kerala High Court, on December 19, cancelled the permission order for Oasis Breweries, citing environmental concerns, lack of local consent and violations of rules, especially in connection with water usage and paddy land conversion. Oasis Breweries was all set to come up at Elappulli Panchayat.
However, the High Court has now demanded proper impact studies and halted the State government’s approvals due to procedural anomalies. The court order marks a significant win for the opposition—Bharatiya Janata Party and the Congress-led United Democratic Front(UDF)—and for the local residents who had been protesting against the project.
The Court cited the following reasons for cancellation:
• The government failed to obtain consent from the local panchayat, lacked the required environmental impact studies, and violated provisions of the Protection of Wetlands and Paddy Fields Act 2018.
• Elappulli Grama Panchayat had opposed and rejected the project, challenging the State government’s approval in court and pointing to potential water scarcity and other environmental concerns.
• The project drew the ire of local residents owing to the filling of paddy fields and the huge demand for water despite acute scarcity in the area. It is alleged that the Kerala Water Authority has refused to provide water supply.
• The Government of Kerala had approved the project to increase local spirit production, but it faced backlash from the opposition and environmentalists. There were also reports of disagreements among partners of the ruling Left Democratic Front.
• The issue became a major point of contention, triggering protests, political debates and legal battles over several months.
The High Court opined that it was unfair to grant primary approval to Oasis without any detailed study, and that a decision could be taken only after carrying out comprehensive environmental impact assessments. The primary permission had been granted for land falling under the jurisdiction of the Protection of Wetlands and Paddy Fields Act, 2018.
Local residents had launched agitations against the project citing water scarcity and pollution concerns, but the CM Pinarayi Vijayan government proceeded while ignoring the objections.
Earlier, Oasis Breweries had purchased 26 acres of land in Elappulli to set up the factory. By then, the Elappulli Grama Panchayat Council had come forward with protests, and Panchayat Special Sabhas had also met. Despite this, the Communist government order claimed that the brewery would benefit the agriculture sector.
Partners of the LDF, including the Communist Party of India and the Rashtriya Janata Dal, had initially expressed objections. The CPI State Secretary termed the project “mysterious”.
The ruling CPI (M), the LDF and Chief Minister Pinarayi Vijayan now face mounting pressure following the High Court order, which has effectively halted the project.
Minister M.B. Rajesh, who holds the Excise and Local Self-Government portfolios and has earlier projected himself as a champion of environmental protection, has come under sharp criticism for backing Oasis Breweries in his home district of Palakkad. Leaders of the BJP and the UDF have accused him of going back on his stated positions.
