Haryana government asks Maruti to stall construction of an upcoming R&D facility in Rohtak.

In a setback to the government's 'Make In India' drive, Maruti Suzuki has been compelled by the Haryana government to stop all construction work on a facility at Rohtak that was to develop and test cars for India and the world, the first such unit being set up outside Japan by the local auto maker's parent, Suzuki Motor.

The Rs. 3,500-crore-plus R&D project was expected to be operational by next year, but is now on hold as the state government has initiated prosecution against the company for beginning construction without obtaining an environmental clearance and has appealed a Delhi High Court verdict asking it to refrain from taking action against Maruti.

When contacted, a Maruti spokesperson told ET: 'As the matter is pending with the court, it will be inappropriate for us to comment in the matter.' People with knowledge of the matter said the country's largest carmaker has suspended construction of the facility.

Maruti, which has decided to set up its next production hub in Gujarat instead of Haryana, is the latest victim of a policy conundrum introduced by Jayanthi Natarajan, the environment and forest minister in the previous Congress-led government, that forces industries to seek an environmental clearance for building any structure of over 20,000 square metres.

ET