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Lavasa ProjectThe CAG view and MOEFs stand

In the light of Lavasa controversy, we have taken the endeavor to find

out the main causes of the dispute and identify the stand of various

parties involved, namely, the business, the government, the political

environment and the society at large. In this report, I would like to

highlight the governments stand by the findings of the Comptroller and

Auditor General of India (CAG) and the actions taken by the Ministry of

Environment and Forests (MOEF) and there implications.

Lavasa Project Overview

Lavasa is a private, planned city being built near Pune. A 25,000 acres

(100 km2)

or 8,000 acres (32 km

2) project being developed by HCC, this

as-yet-incomplete city has been controversial for multiple reasons

including procurement of land, harm to the environment, and loans

acquired through political corruption. In late 2010 the Indian

Environment and Forests Ministry ordered that construction cease

because the project violated environmental laws. As of late 2011, this

order has been rescinded, but the project's scale may have been

reduced and an IPO may not occur.

CAG Report

Claiming that the Lavasa project was driven by private interests rather

than the public one, the CAG report said that expression of interests

were not invited by the government for the development of Lavasa,

thus made the process non-transparent. The report also stated that the

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government had planned to develop all the six hill stations in Pune and

not considered the other hilly areas in the state, thus proving that the

development was in the interest of the developer. The report stated

that Lavasa had purchased the 22.47 hectare land at Mugaon village

from four tribals, when acquisition of tribal land was not permissible

legally. Slamming the government for the irregularity in issuing

environment clearance to the project, the report said: The

government avoided clearance from the ministry of environment and

forests (MoEF) on the grounds that the development would not be

beyond 1,000 meters. But looking at the huge ramification in terms of

eco-sensitive area on which it was being developed, a MoEF sanction

was a must.

MOEFs Stand

The MOEF ordered the construction cease because no environment

clearance from Centre was taken. Since the area is rich in

environmental resources and cultural heritage of the tribals, this cease

was said justified. Also, one more reason was the misinterpretation of

the MOEF directives by the environment department. This cease was

enforced in late 2010.

By 2011 end, the MOEF gave the go ahead for Lavasa under certain

restrictions, such as-

1.Stopping the hill cutting activities2.Building sewage treatment plant3.CSR initiative for the displaced villagers

This move has been seen as the result of political pressure on MOEF.

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