Zira Liquor Factory Row: NGT defers to Nov 24 on environmental clearance void
Ferozepur, November 8, 2025: The National Green Tribunal (NGT) has deferred to November 24 a decision on whether Malbros International Private Limited can operate its 180 KLD ethanol unit at Mansoorwal Kalan village near Zira, after the Public Action Committee (PAC) raised concerns over the absence of environmental clearance (EC) for fuel-grade ethanol production.
The Zira liquor factory row refers to the long-standing protest by local residents in Punjab against the Malbros liquor factory, alleging it is causing severe groundwater contamination. Protests began due to the polluted, odorous, and discoloured water found in nearby borewells, with chemical analysis later confirming high levels of heavy metals and other pollutants. This has led to legal battles, the factory's closure, and the Punjab government's decision to withdraw its consent to operate, although legal proceedings are ongoing.
In the last hearing, PAC counsel highlighted that the project's existing EC covers molasses, grain or yeast-based ethanol, but not fuel ethanol—the variant the company now seeks to produce exclusively. The bench, headed by Chairperson Justice Prakash Shrivastava and including Justice Arun Kumar Tyagi and expert member Afroz Ahmad, granted the Punjab government a week to file its response, while directing Malbros to address the queries.
The company has proposed permanently shutting down and dismantling its distillery unit, retaining only the ethanol facility operational since 2018 under a zero-liquid discharge (ZLD) system. Production halted in July 2022 amid protests by the Sanjha Zira Morcha, which alleged widespread air, water and soil contamination.
PAC's original 2022 petition accused the plant of polluting groundwater within a 4-km radius through effluent dumping and reverse boring. The state government has opposed any resumption of operations pending compliance verification.
At the September 9 hearing, both PAC and Punjab sought additional time to submit written objections to Malbros' selective restart plan. The tribunal will now take up the matter after reviewing all filings.