Stage set for Lavasa prosecution

State govt to initiate criminal proceedings in Pune court, in line with earlier order; HCC chief says proposed action inexplicable.

The Maharashtra government is set to initiate legal proceedings against Lavasa Corporation in line with the earlier high court order, for violating the Environment Protection Act, 1986. The proceedings would be initiated in a Pune court.

The environment department is discussing whether the criminal prosecution should be against only company directors and officials or also against public servants.

The case pertains to the company’s hill city project, in Pune district. Last year, construction was stopped on an official order, on various charges. State environment minister Sanjay Deotale told Business Standard : “The government is committed to honour the deadline of November 3 set by the high court while issuing its order. The nature of the action will be decided in consultation with the law and judiciary department. We will inform the high court in this regard before November 3.”

A senior state government official, who did not want to be identified, said the government would have to initiate criminal proceedings at Pune as the project is located in that district. “The action will be taken as per the letter addressed by the (Union) ministry of environment and forests (MoEF) of June 10, asking the state government to initiate necessary credible action against Lavasa Corporation for violation of the Environment Protection Act, 1986,” he said.

By the HC order, the state government has to file a case before November 3 and the MoEF has to give its final order by November 10. The official said the government could not consider civil or administrative proceedings at this juncture, given the HC order and also MoEF's letter of June 10.

Y P Singh, a former Indian Police Service officer and one of the petitioners, said that criminal proceedings would have to be launched under Section 15 of the Act in question. “The action involves criminal procedures and prosecution and imprisonment up to five years. We have demanded action against public servants and also against those who were directors of the company in 2004 and the company officials. We have already given a list of 23 persons in the high court for initiating criminal proceedings. The action is cognizable and non-bailable,” he informed.

He said the entire case needed to be investigated and a police report lodged. "However, there is every possibility that the government may initiate criminal proceedings against a few company personnel and not against the public servants, including certain political heavyweights. There is a conspiracy and it needs to be probed thoroughly," he added.

Ajit Gulabchand, chairman of Hindustan Construction Company, of which Lavasa Corporation is an arm, asked it had been targeted. "Why have I been held responsible when the state government had cleared the project and subsequently the MoEF's expert appraisal committee had also given its consent? It was accepted by the MoEF. We have complied with four conditions and the fifth condition was pertaining to the Maharashtra government and for which I will be held responsible. Is this the way investors are treated?" he asked.