Institute of Legal and Management Studies

The Supreme Court today issued notice on a public interest litigation challenging Jharkhand government's 2023 notification which declared Jamshedpur (Jharkhand) as an 'Industrial Township' and seeking constitution of a Municipal Corporation for the city.

A bench of Justices Surya Kant and N Kotiswar Singh passed the order, tagging the PIL with another similar case pending since 2018.

In response to a submission made by counsel for Tata Steel, Justice Kant said, "This is in continuation of earlier proceedings...now 2023 notification is being challenged...even if notification is not challenged, in our opinion, consequence will remain the same. If provision is struck down, how will notification survive? We are issuing notice."

The petition, filed through Advocate Prashant Bhushan, seeks that Section 481 of Jharkhand Municipal Act, 2011 be declared unconstitutional. It further prays for quashing of Notification dated 28.12.2023 issued by State of Jharkhand declaring Jamshedpur an "Industrial Township".

For context, the proviso to Article 243Q(1) allows a State Governor to notify an area as an Industrial Township, instead of creation of a Municipality, "having regard to the size of the area and the municipal services being provided or proposed to be provided by an industrial establishment in that area and such other factors as he may deem fit".

Section 481 of the 2011 Act similarly empowers the state government to exclude industrial townships from municipal areas. It further allows the State Government to appoint a committee under the chairpersonship of the Deputy Commissioner of the district in which the industrial township is situated to oversee the working of the industrial township.

Besides the above, the petitioner, one Jawaharlal Sharma, demands that the state constitute a municipal corporation for the city of Jamshedpur under Article 243Q(1) of the Constitution of India. He also seeks a direction that the state not renew lease in respect of certain lands in favor of Tata Steel Ltd.

According to the notification, area constituting Jamshedpur Industrial Township, measuring 15,460 acres, is to be controlled and managed by Tata Steel. Further, it shall be overseen by a 27-member Committee (Jamshedpur Industrial Township Committee) chaired by a local minister, and having a Deputy Commissioner and Tata Steel Vice President as vice-chairpersons.

In 2018, the same petitioner had filed another PIL seeking establishment of a duly elected Municipal body for Jamshedpur in accordance with the provisions contained in Part 9A of the Constitution. It was alleged that State Government was colluding with Tata Steels to delay the formation of a Municipality. The said PIL is still pending.

Last year, the Jharkhand High Court deferred hearing in a PIL filed before it challenging the 2023 notification of the state government to await the top Court's decision.

Case Title: JAWAHARLAL SHARMA Versus THE STATE OF JHARKHAND AND ORS., W.P.(C) No. 483/2025