Kanan Devan Hills Plantations Company Private Limited

Repeated allegations have been made in the media over a period of time falsely charging Tata Tea with having encroached illegally on Government land and exploiting such land and natural resources for its commercial benefit. These allegations have been made even at high levels in the Government without justification. The company expected the truth to become evident and hence its silence so far.

It is now determined to put the facts in the public domain so that the people of Kerala can judge for themselves whether the charges levelled against the company are true or false and defamatory.

Here are the facts.

Question 1: Is there any truth behind the allegation that KDHP has encroached upon government land?

Answer: This allegation is absolutely false and to illustrate we reiterate the facts below

In 1971, the Government of Kerala, had passed the KDHP Act of 1971 and under Section 4 of the KDH Act of 1971(No.LB (A) 2-5227/71. and LB (A)12-5178 dated 29th March 1974), the Government took possession of 71,051.22 acres of land and specifically allowed the then Kannn Devan Company (James Finlay & Company Ltd) and Anglo American Company to retain 58,741.82 acres for commercial cultivation. This land remained under the company when ownership and the lease was transferred to Tata Tea Limited in 1982 as concession land. Three other companies - Harrisons, Tallayar Company and Vayalakadavu Estates- were granted possession of 5,016 acres by the Government. The land so taken over by Government in Mankulam has only been marginally allotted to the landless. The major part of this tract of land has not been developed, parts of it have been severely deforested and the bulk of it has remained unproductive.

This company's position has been vindicated when the Additional Chief Secretary to the Government of Kerala filed official documents before the Lok Ayukta on 6th June 2006 and again on 19th December 2008, confirming that Tata Tea, which had inherited the concession land from the Kannan Devan Company held 687.52 acres LESS than what it was entitled to hold under the Orders of the Land Board. The second statement was to the effect that ….

Several surveys have been conducted by the Government over the past 3-4 years during which there was not even one substantiated charge that Tata Tea had significantly encroached any part of the land in the area. The repeated accusations are therefore absurdly false and totally misguided.

Q 2: Is there any truth in the allegation that KDHP manipulated records and sold adjacent land to resort owners?

Ans: This allegation is also absolutely false. Proper documents have been registered with the Sub Registrar's Office, Devikulam, and even a casual perusal of the documents will conclusively prove the baselessness of such allegations. The company has necessary documents in possession and the Government must prove that the company has wilfully manipulated records for sale of land to resort owners.

Q 3: There is an allegation that the company sold lease land in bits and pieces to outsiders and the resorts are all constructed in such lands. Is it true?

Ans: This allegation is also totally untrue. The company has not sold any land to any resort owners. Out of the holding of 58,741.82 acres, the company and its predecessor company, had, over a long period of time transferred an extent of 24.42 acres including building sites to several parties who had been occupying them under the company's license. This includes a total of 18.31 acres transferred to the Munnar Panchayat, the Tamil Nadu Government-owned Cheran Transport Corporation for infrastructure for public use, the Kerala Sports Council and 6.11 acres to shop owners and merchants in Munnar town. These transfers were not made for commercial gain or for resort hotels, but had been executed for development of Munnar Township for the convenience of the residents of Munnar.

Q 4: It is alleged that the land has been handed over to the company without survey and demarcation as stipulated in the Kannan Devan Hills (KDH) Act?

Ans: The allegation is totally baseless. The land has been surveyed and demarcated as required by the KDHP Act. The district Collector passed a proceeding to such effect (No. C3-26816/77 dated 13.10.1977) and areas were notified survey number wise including sub-surveys and only then were they finally handed over to the company and accepted by the company.

The District Collector had passed a proceeding (No. C3-26816/77 dated 13.10.1977) notifying the areas along with the survey numbers and sub-surveys, besides publishing them in the Gazette. The company has never taken over land without survey and demarcation.

Q 5: Has the company converted tea area into fuel and vice versa?

Ans: Yes, the company has converted some tea area into fuel and vice-versa, both for use in the tea factories as well as for supplies to workers and their families as firewood. These fuel areas were developed by the company at its cost for captive fuel wood use. The fuel wood plantation is one of the largest renewable resources for the manufacture of tea. The use of fossil fuels was drastically reduced both to preserve the area from pollution and waste and for cutting down fuel consumption.

Such interchanging is permissible as held by the Land Board and the High Court in its Judgment dated 12.6.2007 in Writ Petition W.P[C] No.19689 of 2007.

Q 6: Whether the check dams in Letchmi Estate and Chittavurrai estates are illegal?

Ans: These check dams have been in existence for the past nearly 70 years. Why were these check dams built many decades ago and repaired from time to time? Much of the water of the river is released for downstream use. The water collected from the check dams is exclusively used as a welfare measure for the thousands of workers and their families in the High Range as well as for wild life as an environment conservation measure. The water has not been used for irrigation or commercial purposes by Tata Ea or KDHP. As noted by the High Court, Tata Tea or its predecessor companies have no private interest otherwise in these dams. The company has specifically offered to the High Court that the Government of Kerala should take over the dams but preserve the same for the use of the workers and their families and for wild life. This has been recorded in the Order of the High Court. The company has no ulterior motive in the construction or the repair of the check dams which has been blown up into a major controversy by politicians for reasons known only to them. Since the matter has been referred to the Division Bench, we do not wish to further elaborate on this issue.

Q 7: What will happen if the bunds/check dams are demolished?

Ans: If the bunds are demolished, the natural water sources will disappear thereby adversely affecting the drinking water supply to human settlements including workers' colonies and to wild life. The Government should ask workers representatives or wild life conservationists whether this will be good for the ecology of the area which has been in place for nearly seven decades, long before Tata Tea was involved in the running of the estates in the High Range.

Q 8: Did the Additional Advocate General give any undertaking to High Court regarding takeover of KDHP Land?

Ans: Yes. High court recorded the undertaking in W.P[C] 19689/2007 as follows:

"Also the learned Additional Advocate General has taken the definite stand that the respondents do not intend to proceed against the petitioners in respect of the lands in their legal possession covered by Exts.P4(a) and P4)b). ……. It can be done; it goes without saying, strictly in accordance with law. I record the submission of the learned senior counsel for the petitioners that the petitioners are only in possession of the lands covered by Exts. P4 (a) and P4 (b) and that they have not trespassed upon any Government land."

Exts P4 (a) and P4 (b) are the orders of the land board dated 29/3/74under which we hold 58741.82 acres.

How many more times are we going to be asked whether there has been large scale encroachment of land by the company in the Munnar area and how many times should we repeat the various official statements and documents available on the subject?

Q 9: Is there any ban on cultivation of any crop other than tea in the Kannan Devan Hills?

Ans: The grant to J.D Munro, who first received the concession area from the Poonjar Raja, had permitted the grantee, his successors and assignees to grow all kinds of crop. Where ever tea is not commercially viable, the company has been replacing areas under tea with fuel wood and vice-versa. Replacement of tea in A suitable alterative area is statutorily permitted. There is no restriction to have intercropping. In fact, inter-cropping is widely encouraged in the industry.

Q 10: Has the company collected any tax from Munnar?

Ans: The company has not collected any tax in Munnar. Only licence fee from occupants of building owned by company is collected, and that too, in most cases, the amount is nominal with absolutely no commercial gain. There are licensees paying Rs. 1 to Rs. 200 per month for a residential accommodation and Rs. 5/- for a market space.

Q 11: What is the position of the 216 acres of land given for colony in Munnar?

Ans: The Company is not directly involved in this land. It was given to the Government. We understand that some of the resorts are now functioning in this land.

Q 12: Did the company encroach and sell 1000 acres of land in Letchmi Estate to outsiders?

Ans: There is absolutely no truth in such an allegation. It would make it clear to anyone perusing the documents of the resort owners that the company had nothing to do whatsoever with the transfer of land in Lakshmi Estate or elsewhere.

Q 13: Whether the company can use its buildings for tourism purposes?

Ans: Yes. The buildings are excluded from the purview of the KDHP Act and there is no legal prohibition for use of these buildings for plantation related tourism. No new construction for tourism purposes has been built by the company. What is wrong if KDHP uses existing unoccupied bungalows as part of plantation tourism?

Q 14 : Whether the company has gifted land/buildings to Trade Union Leaders in Munnar ?

Ans: No. The company has only given buildings for office/living accommodation/office purposes to the three recognized trade unions functioning in this area under licence agreements and licence fee is being collected from them. This practice is followed in all most all industrial areas including public undertakings. The allegation to the contrary is baseless. These three unions represent more than 50,000 workers, staff and their families and hence the necessity for the same.

The preservation of the natural environment in Munnar and Tata Tea.

Steps taken for preserving wild life game wardens, Envirulam National Park, Muthuvan Tribes, wild life association support from Tata Tea. River side measures, fishing restrictions, introduction of Rainbow Trout, hatchery, Nilgiri Tahr etc.

ROLE OF TATAS

It is most regrettable that the House of Tatas has been repeatedly accused of wrongdoing without any basis. The Tata Group has been in existence for over 100 years during which it has conceived and executed not only nation building corporate enterprises like Tata Steel, Tata Power, etc. Tatas have ploughed back much of its earnings and profits for the well being of the people of India as the following will explain.

Structure:

The holding company of the Tata Group is Tata Sons Limited, of which Mr. Ratan N. Tata is the Chairman. Over 66% of the ownership of Tata Sons i.e. more than 2/3rd is held by the Tata charitable foundations viz. Sir Dorabji Tata Trust, Sir Ratan Tata Trust, Jamsetji Tata Trust etc. The Tata Trusts also hold shares in major operating companies and therefore a large part of the profits generated by the operations of the Tata Group go back to the charitable foundations. The Tata Trusts have contributed approx. Rs.185 crores every year to various causes across the country. It is these Foundations that have established institutions such as the Indian Institute of Science in Bangalore (established by the Founder himself), Tata Institute of Fundamental Research (India's premier Physics and Theoretical Sciences Centre), Tata Institute of Social Sciences (the leading Social Research & Teaching Institute), the Tata Memorial Hospital (the country's premiere oncology hospital in Mumbai), besides, the J.N. Tata Endowment for the higher education of Indian students. Many of India's leaders, teachers and scholars have been J.N. Tata Scholars, for example Mr. K.R. Narayanan, former President of India, Dr. Raja Ramanna, former Director of BARC, Dr. Jayant Narlikar, Astrophysicist and many others. Tatas are now establishing a major Cancer Hospital in Kolkata costing the Group nearly Rs.330 crores as a gift to the people of eastern India to be managed by its Trustees.

The charges repeated several times against Tatas in Kerala are bereft of moral purpose or substantiated by facts. There is not a shred of truth in any of them. In terms of transparency, good governance and ethical conduct, the House of Tatas does not have to defend itself as its history is self evident.

Tatas Exit from Plantations:

It is important for the public to know that as Tata Tea developed its global presence with branded tea, it decided to exit from plantations, both in South India and North East India on 1st April 2005. Its first move in Kerala is, once again, way beyond commercial and profit making motives. When it decided to exit from plantations, the company had received several attractive financial offers from various sources in India and outside India which, if accepted, would have resulted in the company making significant profits. Instead it chose to hand over substantial ownership to the workers who were often fourth or fifth generation employees in the tea growing regions. On 1st April 2005 the company's ownership was transferred to Kannan Devan Hills Plantations Limited, owned substantially by workers and staff, with a minor transition holding by Tata Tea.

Thereafter even though Tata Tea had no operational stakes in the High Range it did not abandon its moral commitment to look after the welfare of the tea growing people of Munnar. Accordingly, it continues to fully support the Munnar General Hospital, funded and managed by Tata Tea, the High Range School, which was established by Tata Tea, to give equal rights and education to the children of workers (free), staff and Managers and the Srishti Complex for the advancement of the lives of children and young adults who are disabled or severely challenged. These three institutions are fully funded by Tata Tea and goes beyond commercial or economic ties with its successor company. Those with a conscience can go and look at the facts themselves and ask what does Tata gain from this endeavour.

Other than Munnar:

Munnar is not only the area where Tatas have invested in upgrading the lives of those residing in the areas near its operations. It has invested heavily in towns like Jamshedpur and Mithapur where the workers and their families are looked after. The philosophy of ploughing back profits to society is not confined to individual company's environment but has been extended to the country as a whole in times of natural disasters, in times of medical crises, in responding to urgent national needs - be it scientific or medical - and in helping build a prosperous India.

Conclusion:

What could be the reason for this orchestrated campaign to discredit Tatas in Munnar? We are unable to fathom the reasons for this unjustified attack . One view conveyed to us is that vested interests are orchestrating this campaign so that the land now being legitimately developed by the KDHP could be alienated and treated like the Mankulam area was treated after the KDH Act of 1971 was enacted. Other than the 5000 acres of land earmarked to the landless in the Mankulam area, much of the land taken over by the Government now lies forlorn and bereft of development, where dreams have turned sour. If on false grounds similar action is taken in the High Range again, incalculable damage will be done to what has been preserved as a tribute to nature and wild life. Tata Tea and its successor company viz. KDHP have zealously protected the use of land in the High Range much to the benefit of the state, the community in Munnar and the tea industry. None of the companies which once developed the concession land have ever resorted to illegal encroachment or development for personal gain.