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Reference: SG/E/2021/09
Received Date: 23 February 2021
Subject: Pune Metro Rail Project
Complainant: Confidential
Allegations: Alleged negative social and environmental impacts of the project
Type: E - Environmental and social impacts of financed projects/operations
Monitoring: Yes
Confidentiality: No
Admissibility*
Assessment*
Investigation*
Dispute Resolution*
Consultation*
Closed*
31/03/2021
29/03/2022
15/04/2023
24/09/2024
11/04/2024
24/09/2024

* Admissibility date reflects the date the case was officially registered. All other dates pertain to the date in which a stage was completed.

Case Description

In February 2021, the Complaints Mechanism received a complaint regarding the Pune Metro Rail project. After extensive communication with the complainant and members of the affected communities, it was established that the complaint contained (A) allegations concerning social impacts at Civil Court station and (B) allegations concerning environmental and social impacts at Mandai station. The Complaints Mechanism issued the initial assessment report in March 2022. Given the complexity and different nature of the issues raised as well as the different groups of affected people, it was decided to proceed in parallel with an investigation for case A and collaborative dispute resolution processes for case B1 and B2. 

Case A: Civil Court station 

Main dates and status 

Investigation: 15/04/2023 

Consultation: 11/04/2024 

Follow-up: Open

At Civil Court station, the complaint is about involuntary resettlement of Project Affected People from Kamgar Putala and Rajiv Gandhi slums for the construction of the Civil Court metro station that is financed by the European investment bank (EIB) as well as for additional infrastructure developments in the area. The allegations concern certain project non-compliances with EIB E&S Standards, namely: (1) acquisition of additional land by the Promoter without appropriate agreements with the Slum Rehabilitation Authority, (2) ineligibility for compensation, (3) inadequacy of compensation, and (4) forced evictions without prior notice to the EIB. 

The Complaints Mechanism performed a compliance review.  With regard to the project’s compliance with the EIB standards, the review concludes that allegation (1) is ungrounded. For the remaining allegations, non-compliances with EIB Environmental and Social Standards were found. With regard to the EIB’s compliance with its own policies and procedures:  

·    At appraisal, the EIB-CM concluded that the Bank did not appraise the prevailing institutional framework/other national/local agencies involved in the resettlement.  

·    During monitoring, the Bank was not informed on time of the replacement of the Project Resettlement Action Plan (RAP) with a new resettlement approach (covering the EIB financed Civil Court metro station and the additional developments in the area), nor of the upcoming lawful evictions. While a more proactive monitoring and verification of the Project compliance could have helped anticipating the eviction, the travel restrictions due to Covid-19 did not allow for site visits and on the ground verifications. As soon as it was informed, the Bank stepped up its monitoring, mobilized social experts and requested corrective actions to be taken. These corrective actions include the implementation and monitoring of a Livelihood Restoration Plan that aims to address the Project’s non-compliances with EIB Environmental and Social Standards and restoring livelihoods not only of the EIB Project Affected People but also of people affected by the developments of these additional infrastructure not associated to the EIB Project.               

Based on its findings, the Complaints Mechanism issued a number of recommendations and suggestions for improvements and will follow up on their implementation. 

Case B1: Mandai station – (i) spice vendors; (ii) a displaced family and (iii) concerns about the felling of trees and the removal of places of worship 

Main dates and status 

Dispute resolution: 09/09/2022 

Closed: 09/09/2022 

Follow-up: Open

The Complaints Mechanism has put in place three parallel dialogues for different groups of affected persons and issues: (i) spice vendors; (ii) a displaced family and (iii) concerns about the felling of trees and the removal of places of worship. The dispute resolution team managed the processes together with a local facilitator and convened the first session of the facilitated dialogue between the complainants and the promoter in person in Pune in April 2022.  As a result of the dispute resolution process, the group of spice vendors has reached an agreement with the promoter in June already. The issues of the family and the concerns regarding felling of trees and the places of worship were addressed by the promoter. The Complaints Mechanism closed these three dispute resolution processes in September 2022.  

Case B2: Mandai station – fruit vendors 

Main dates and status 

Dispute resolution: 24/09/2024

Closed: 24/09/2024

Follow-up:  28/05/2025

A group of unlicensed fruit vendors claimed that they were forcibly removed from the Mandai market area without any compensation. The promoter and the fruit vendors agreed to participate in a facilitated dialogue to find mutually acceptable solutions. Through a collaborative dispute resolution process, assisted by the Complaints Mechanism and a local facilitator, both parties reached a settlement. Consequently, the promoter agreed to compensate the fruit vendors for their business losses. The Complaints Mechanism concluded the dispute resolution process in September 2024 and has ended its monitoring of the implementation of the agreed action points in May 2025.