Shah had served a notice under Section 133 of the Criminal Procedure Code on the company on December 1, asking it to take certain operational measures or face action, including a shut-down if necessary. The company was asked to show cause why the order should not be enforced by presenting its representative before the district magistrate.

The company told Shah and GPCB representatives of the progress it had made in the last one week. ``We will follow whatever is technically feasible from the DM's notice, '' the representative said.

The company would continue to be under observation, GPCB regional officer J B Patel said, adding that it had been asked to give periodical reports of the progress it makes in improving its operations. He claimed that the company had admitted operational deficiencies leading to liberation of EM.

The GPCB and the CPCB had held GGCL responsible for the leakage of EM which, when mixed with natural gas, helps detection of leaks. EM was being released into the air during dozing operation (mixing of EM with natural gas), the report said, holding the management guilty of ``utter negligence towards the plant's operation''.

The GPCB has also served another notice under the Environment Protection Act on the company. It was earlier planning to book the company under Air Pollution Act, but later settled for EPA.

Patel said another company was kept under the watch following reports that foul smell was emanating from Kosamba. Since Kosamba is not under the jurisdiction of Surat GPCB, it has joined hands with its Bharuch counterparts to keep a tab on the company.

GGCL vice-president K P Sinha, however, maintained, ``There is no conclusive proof against the company as yet. We are taking technically feasible additional measures suggested by the DM for technical upgradation.''

He said the company had more or less dropped the idea of engaging Watson and company as consultants and could go in for technical consultants for suggestions on operational efficiency. ``The GGCL has already engaged Watson for a similar study'', Sinha said.