The Supreme Court has issued a notice on a Public Interest Litigation (PIL) challenging the Jharkhand government's 2023 notification, which declared Jamshedpur as an 'Industrial Township.' The PIL also seeks the constitution of a Municipal Corporation for Jamshedpur instead of the Industrial Township model.
A bench comprising Justices Surya Kant and N Kotiswar Singh passed the order, linking the PIL with a similar case that has been pending since 2018. During the hearing, Justice Surya Kant remarked:
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"This is in continuation of earlier proceedings...now 2023 notification is being challenged...even if notification is not challenged, in our opinion, consequence will remain the same. If provision is struck down, how will notification survive? We are issuing notice."
The petition was filed through Advocate Prashant Bhushan, challenging the validity of Section 481 of the Jharkhand Municipal Act, 2011, and seeking to declare it unconstitutional. It also demands the cancellation of the notification dated December 28, 2023, issued by the Jharkhand government, which categorized Jamshedpur as an "Industrial Township."
The PIL emphasizes that Article 243Q(1) of the Constitution allows a state governor to designate an area as an Industrial Township instead of a municipality, but this must be based on factors such as the area size and municipal services provided by an industrial establishment. The petitioner claims that these conditions were not met in the case of Jamshedpur.
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Section 481 of the Act empowers the state government to exclude industrial townships from municipal areas. It also permits the state to form a committee led by the district's Deputy Commissioner to manage the township's functions.
The PIL was filed by Jawaharlal Sharma, who argued that a Municipal Corporation should be established for Jamshedpur under Article 243Q(1) of the Constitution. Additionally, he requested that the state be directed not to renew land leases in favor of Tata Steel Ltd.
As per the notification, Jamshedpur Industrial Township spans an area of 15,460 acres, managed and controlled by Tata Steel. A 27-member Jamshedpur Industrial Township Committee oversees the township, led by a local minister. The Deputy Commissioner and Tata Steel Vice President serve as vice-chairpersons.
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Background and Pending Case
This is not the first time the issue has reached the courts. In 2018, the same petitioner filed a PIL demanding a Municipal Corporation for Jamshedpur, alleging that the state government was colluding with Tata Steel to delay its formation. That PIL is still pending.
Furthermore, in 2023, the Jharkhand High Court deferred the hearing of another PIL on the same notification, choosing to wait for the Supreme Court's decision.
Case Title: JAWAHARLAL SHARMA Versus THE STATE OF JHARKHAND AND ORS., W.P.(C) No. 483/2025
