The Kerala government says the dams and fencing are illegal and a breach of the lease agreement with the government. The Tatas have denied any illegal construction.
In a giant move, the Kanan Devan Hills Plantations company has decided to invest Rs 375 crore (Rs 3.75 billion) in Ethiopia to develop 10,000 hectares of tea plantation.
Over the past year, McLeod sold 21 gardens in India, reducing almost 32 million kg in production.
The industry began to upgrade its practices even before the NGO alleged Indian tea contained harmful pesticides.