Indian court restrains village council from shutting Coke plant for allegedly depleting groundwater

<p>A Southern Indian court on Monday barred a village council from immediately shutting a Coca-Cola plant, ordering government officials to investigate allegations the plant is depleting groundwater reserves.</p><p>The High Court in Kerala state said it will determine next week whether the Perumatty village council has the authority to cancel the plants license.</p><p>In their ruling, Judges Cyriac Joseph and K. Padmanathan Nair directed the state government to conduct a detailed study of council allegations that the companys use of groundwater has dried up nearby farmlands occupied by more than 2,000 people. The order didnt set a deadline for the study.</p><p>The Perumatty council controls a cluster of villages, including the village of Plachimada where the Coca-Cola plant was set up in 1998.</p><p>An official at the Coke plant said the company is extremely happy with the court verdict.</p><p>We will continue our operations in the village with all fairness and without affecting the life of the villagers in any way, said H.K.K. Warrier, a manager at the Coke plant.</p><p>The courts ruling came in response to a petition submitted last month by Coke, which has fought a yearlong battle with the council over the water allegations.</p><p>Representatives of Atlanta-based Coca-Cola testified before the village council last month that the plant was not depleting groundwater and should not be closed.</p><p>At an earlier court hearing, the village council had said the plant was drawing about 400,000 gallons of water every day through dozens of bore wells.</p><p>The plant is located about 90 miles north of Cochin, Keralas business hub.</p><p>Activists, farmers and villagers have staged protests outside the plant. Coke officials have said most of the protesters are paid, or are opposed to the corporation doing business in India on political grounds.</p>