CAO Cases

Arne Hoel, The World Bank

South Asia

India / Ramky-03/Gummidipoondi

Complainant
Gummidipoondi village and Corporate Accountability Desk
Date Filed
October 19, 2007
Case Status
Closed
 

Synopsis

Complaint

In August and September 2005, CAO received two complaints (Ramky-01 and Ramky-02) which were subsequently deemed not eligible for assessment. However, in October 2007 a group of residents from the Gummidipoondi village and Corporate Accountability Desk, a non-governmental organization, lodged a third complaint (Ramky-03) with CAO. The complainants asserted that the project violated municipal laws and IFC regulations as a result of the following:

 

1. Statutory permission had not been granted to the company by the local community to proceed with the project; and

 

2. The submission of an incomplete Environmental and Social Impact Assessment (EIA) caused the environmental permitting process to be flawed.

 

CAO Action

The complaint related to an integrated hazardous waste treatment facility operated by the Ramky Group in the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) Industrial Area near Gummidipoondi village. The purpose of this project was to design, build and operate hazardous municipal waste facilities at various locations around India. In March 2008, CAO concluded that the complaint was not amenable to resolution through a negotiated process. As such, CAO compliance conducted an appraisal for audit of the project to determine whether the case merited an audit of IFC.

 

Status

The Appraisal Report for Audit, completed in June 2008, highlighted that a modification to IFC’s proposed commitment with the client resulted in the investment shifting to engineering, procurement and construction signifying no further affiliation with hazardous or municipal waste management. This raised the issue of non-deliverance of promised development outcomes, however IFC was no longer linked to the site near Gummidipoondi. Accordingly, CAO concluded that the complaint did not merit an audit of IFC and closed the case in June 2008.

Project information

Institution
IFC
Project Name & Number
Ramky Infrastructure 23966
Department
Infrastructure
Company
Ramky Infrastructure Ltd.
Sector
Construction and Real Estate
Region
South Asia
Country
India
Environmental Category
B
Commitment
$3 million (Equity)

Case Tracker

Ombudsman

  • Eligible: Completed
  • Assessment Period: Transferred

Compliance

  • Under Appraisal: Closed