India: Shapoorji Pallonji-01/Pune

Date Filed
08 Dec 2020
Status
Open
Phase
Compliance
Country
India

Case Tracker

Eligibility
Eligibility
Assessment
Transferred
Assessment
Dispute Resolution
Compliance
Appraisal
October 19, 2021-March 21, 2022
CURRENT Status
Appraisal (COMPLIANCE)
October 19, 2021-March 21, 2022

Complaint Overview

Complainant

Individual

Concerns

Land ownership dispute

Cross-Cutting Issues
Land

Project Information

Region
South Asia
Institution
IFC
Name & Number
SPAH 34628
Company
Shapoorji Pallonji
Sector
Infrastructure
Department
Manufacturing, Agribusiness & Services
Category
B
Commitment

$34.44 million equity

Synopsis

Project Overview

IFC has an active equity investment of $34.44 million with Shapoorji Pallonji Company Limited (SPCL) in Pune, India to fund the development of affordable housing units. The IFC investment was made in 2015 and it is part of a $200 million financial platform called Joyville that was established by SPCL.

Complaint

In December 2020, CAO received a complaint from an individual raising concerns that his farmland was forcibly and illegally taken from him and sold to develop and sell affordable housing units. Pending legal disputes over ownership of the land were also cited.

CAO Action

The complaint was found eligible for assessment in December 2020, and the assessment was completed in October 2021. As the parties did not reach a consensus to participate in a dispute resolution process, the case was referred to CAO's Compliance function for appraisal.

On March 16, 2022, CAO completed its compliance appraisal of the complaint regarding IFC’s investment in Shapoorji Pallonji. The appraisal concluded that a compliance investigation is merited regarding the complainant’s allegations of project-related physical and economic displacement, which are related to IFC’s application of its Performance Standard 5 on land acquisition and resettlement. In response to a request from IFC, CAO has deferred the investigation of this issue after consulting with the complainant. The deferral will allow IFC and its client to implement a six-month action plan designed to respond to the complainant’s claim in line with IFC’s environmental and social performance standards and requirements. CAO determined a timeline and framework for monitoring during the deferral period and will release a public report on the outcomes of the deferral after the deferral period.

Status

CAO is monitoring IFC’s completion of its commitments upon its request for a six-month deferral.

  

Status as of March 23, 2022

Case Documents

  • Assessment

    Assessment Report
    CAO Assessment Report - Shapoorji Pallonji, India
    Oct 18, 2021
    English
    CAO Assessment Report - Shapoorji Pallonji, India
  • Appraisal Report(s)
    Compliance Appraisal Report - India Shapoorji Pallonji
    Mar 21, 2022
    English
    Compliance Appraisal Report - India Shapoorji Pallonji