The High Court of Bombay at Goa has quashed and set aside criminal proceedings against Larsen and Toubro Ltd (L&T) for allegedly violating labor laws during the construction of the Atal Setu bridge in Goa. The project was awarded to L&T in 2014 by the Goa State Industrial Development Corporation (GSIDC) after a tender process. GSIDC registered itself as the employer and obtained licenses from the State Labour Commissioner of Goa, despite the Central Government claiming jurisdiction over the project.
The Central Labour Commissioner’s office then initiated criminal proceedings against L&T’s Deputy Managing Director and Project Manager, despite the company having obtained licenses from the State Labour Office. L&T argued that the work was executed by GSIDC, a state body, and therefore the authority for the project lay with the State Labour Department.
The High Court’s Division Bench, comprising Justices M.S. Karnik and Nivedita Mehta, has now quashed and set aside the criminal proceedings, holding that the State Government, not the Central Government, is the appropriate government for the project. The court ruled that the Goan State Labour Department had jurisdiction over the matter, as the project was funded by the state and executed by GSIDC.
The court’s decision is a significant relief for L&T, which would have faced serious consequences if the criminal proceedings had continued. The case highlights the need for clarity on jurisdictional issues between the state and central governments in India, particularly in the context of large-scale infrastructure projects.