HC stays stop-work order on Lavasa

The high court here, in an interim order today, stayed the Union ministry of environment and forests’ (MoEF) directive to Lavasa Corporation, an arm of Hindustan Construction Corporation, to stop work at its proposed hill city project in Pune district.

After hearing a petition by Lavasa challenging the order, the HC directed MoEF to give the corporation a hearing on whether it could stay the construction in this manner. MoEF would have to pass the order on this issue by December 16.

Lavasa’s counsel voluntarily committed his client to freezing construction till December 16. The HC would hear the matter further on the same day. The court also directed MoEF to give a hearing to the National Alliance of People’s Movements, the body that had initially complained against the Lavasa project.

MoEF had, on November 25, issued a showcause notice to Lavasa, demanding an explanation on why it had not obtained clearances under the Environment Protection Act, as amended by notifications in 1994 and 2004. It also asked the corporation, which is developing a hill station in Mulshi taluka of Pune district, to stop the construction. Lavasa’s reply alleged malafide intent and said issuance of the notice was meant to stall its proposed Initial Public Offer of equity.

Lavasa Corporation also contended the development at Lavasa City was within the framework of the clearance granted by the state government’s environment ministry. Consent had been granted, it said, by the Maharashtra Pollution Control Board on May 30, 2002, and January 5, 2005. It has also challenged the legality of MoEF notifications.