Reliance Industries Ltd [Get Quote] has challenged in the court the Maharashtra government's decision to hold a referendum in 22 villages earmarked for its over 10,000-hectare special economic zone in Raigad district on the outskirts of Navi Mumbai.

These villages cover nearly half the area of the proposed SEZ. The district collector of Raigad, Vinayak Nipun, had announced the referendum -- to find out if the villagers want the tax-free export enclave or not -- last week.

In a writ petition filed in the Bombay High Court on Wednesday, Mumbai SEZ Pvt Ltd, promoted by Reliance Industries, claimed that the referendum violated the memorandum of understanding between the company and the state government.

The petition is likely to come up for hearing on Thursday. An MSEZPL spokesman refused to comment or elaborate on the content of the petition.

However, the government pleader's office confirmed that a petition had been filed against the state government's decision. Advocate General Ravi Kadamk and Assistant Government Pleader SR Nargolkar will appear on the state government's behalf.

According to sources, the petition said that the state government could not announce a referendum without the Centre's consent as the SEZ had received an approval in principal from the central government and the area had been demarcated as an SEZ.

The petition alleged that the state government took the decision under pressure from social activists like ND Patil of the Peasants and Workers Party. Patil had observed a hunger strike during the monsoon session of the Assembly and withdrew his agitation after assurances from Chief Minister Vilasrao Deshmukh.

The activists are demanding that the villages be excluded from the zone on the grounds that irrigated land cannot be acquired for an SEZ.

The villages will gain access to water once the work on the distribution channel of the Hetavane dam is completed.

MSEZPL's petition said the villages in which the state government intended to hold the referendum were not irrigated at the time of the approval in principle or when the MoU was signed.

Speaking to Business Standard, Vaishali Patil, coordinator, Anti Mumbai SEZ Action Committee, said, "Apprehending defeat, MSEZPL is resorting to legal tactics. Today's development has not come as a surprise to us."

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