Introduction

Plachimada is a small village in the Palakkad district of the state of Kerala. ‘Plachimada’ has become synonymous with debate on legal regime of control and use of ground water after the Hindustan Coca-Cola Beverages Private Limited (hereafter the Company) started a plant in Plachimada. The plant was commissioned in March 2000 to produce its popular brands such as Coca-Cola, Fanta, Sprite, Limca, Kinley Soda, Maaza and Thumps Up.

The local people in Plachimada started their protest against the Company within two years after the Company started production. The local people complained that the quality and quantity of ground water in the area has deteriorated due to over-exploitation of ground water by the Company. While the public protest against the company was growing, the Perumatty Grama Panchayat (hereafter the Panchayat) refused to renew the license of the Company in 2003.

The refusal to renew the licence of the Company by the Panchayat was the beginning of the legal battle. The issue reached the Department of Local Self Government, Government of Kerala for ‘appropriate orders’ as per the direction of the Kerala High Court. However, the legal battle did not end at the level of the Department of Local Self Government. The issue of ground water depletion and the refusal of the Panchayat to renew the license of the Company came before the Single Judge and subsequently before the Division Bench of the Kerala High Court as appeal. The matter is now pending before the Supreme Court of India.