Summary of Facts (Respondent)

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Summary of facts(Respondent)

1. The Madni Group of Companies, (herein referred to as the Madni Group) An Indian
Company incorporated under the Companies Act, 2013, came up with an idea of
making profits out of the raising demands of ABX. As the enormous challenge of
COVID-19 struck the overall health of people, the Company came up by way of
extracting Adong(a Variety which has the highest concentration of ZYM) due to the
raised demands of its variety. The Company thereby, launched a project to buy off the
financial shares and acquired 3 out of the 5 local companies which were commercially
involve extraction of Adong and selling it in the form of Adong Capsules.
2. With a view to invest heavily in the business during this unprecedented situation, the
Company acquired the exclusive lease of certain areas of government land which has
the highest production of Adong. Soon after it started its business, A Monthly Trade
Value of Adong was estimated to be above 100 Cr per month.
3. Mr. R.P Das, a Local Environmental and Social Activist, during his initial visit to the
village of those areas, held by the Madni Group was made aware by the Headman
about the entire situation which made him decided to file an application to different
departments seeking information about the business and the arrangements that was
entered between the State Forest Department and the Biodiversity Authority in so far as
exclusively extracting Adong from the forests. In response, it came up to him that there
was an initial agreement made between the State Forest Department and the Madni
Group under which it was expressed by the Madni Group that the commercial
extraction of Adong shall be made in a sustainable manner and Adong Capsules shall
be produced and marketed all over the country.
4. In response to the agreement, The Madni Group had sought an immediate and
expressed permission from the state in order to start their operations and produce
Adong Capsules for the greater good of the people and also executed an undertaking
that within a timespan of 1 Year, the Madni Group shall fulfil all its obligations under
the Biodiversity Act and the State Biodiversity Rules, 2010 and continue their
operations as per the applicable laws.
5. Mr. Das, in a response received from the State Forest Department and the Biodiversity
Authority stated that the Madni Group started its operations in May 2020 and at the
time of filing application in April 2021, it was laid that undertakings were not fulfilled
upon by the Madni Group, resulting to which multiple notices were sent to remind
them of the obligations that were to be fulfilled under the Act and the rules in
convergence to the undertakings. Later, The Madni Group issued a letter to the State
Forest Department and the Biodiversity Board, expressing its views on the provisions

of the Act and the Rules stating as that of inapplicability to the operations and a result
of misinterpretation of provisions.
6. Relevant Information regarding the situation were received, pointing out that
commercial exploitation of resources was made by the Madni Group to earn profit and
a letter was addressed to the Chief Minister of the State and the Minister of Forests,
laying its concern over the rampant violation of applicable laws. The Ministry of
Forests, in turn under the guidance of the Chief Minister, formed a committee to
closely look into the situation that Madni Group was evading the applicable laws and
gain profit. And thereby, imposing restrictions on activities and impose penalties.
7. Pertinent to the situation analysed by the Minister of Forests, A Final Warning-cum-
Demand Letter was issued to the Madni Group in July 2021 for which a 30 days
timespan was given to execute the undertakings and regulate the activities as per the
terms and provisions of the Act. Accounts of the State Biodiversity Board were said to
be furnished with respect to the trade-in of Adong by initiating to deposit an amount
equal to 40% of the total trade carried on for the period of May, 2020 to July 2021, so
that the local communities could be benefited with the deposit made by the Madni
Group.
8. In retaliation to the aforementioned undertakings laid over to the Madni Group, Letters
was issued citing that the State Government has misinterpreted the laws and claims
were made that the provisions of the Act and the Rules were not in accordance to the
matter concerned. The State Biodiversity Board, in an order issued on 11th August
2021, mentioned that the activities/operations of the Madni Group are to be shut with
immediate affect and directed the district administration of the respective districts to
seal and lock the premises of the Company.
9. Meanwhile, Mr. Das wrote a letter to the Chairperson of the Hon’ble National Green
Tribunal to state some unwanted activities carried by the Madni Group and also stated
that senior officials were involved to carry out this process. In return, the respected
Chairperson took a strong note of it and directed the Eastern Zone Bench of the NGT to
initiate a suo-moto proceeding on the said case as O.A.No 122/2021.
10. A Separate Application was filed by two local entities, M/s. Healthvita Pvt. Ltd. and
M/s. Natura Care Pvt. Ltd seeking its impleadment on the ground that the illegal
operations of the Madni Group resulted a loss to their business and defendants were
made stating that proper adherence to the provisions and rules of the Act were made by
them and access to benefit sharing was made to the local communities by the entities
via the Biodiversity Committee.
11. The Madni Group, upon hearing the order dated 11th August, 2021 issued by the State
Biodiversity Board, prompted him to approach the Eastern Zone Bench of the NGT

filing an Original Application assailing the Order, alongside a Miscellaneous


Application for prayer of an interim stay in the Order dated 11th August, 2021 during
the pendency of the Original Application.
12. The Pleadings are completed and have been listed for final hearing before the Eastern
Zone Bench of the National Green Tribunal.
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