Lavasa corporation limited (LCL) cannot undertake any construction activity, the ministry of environment and forests (MoEF) has said in a report submitted to the Bombay high court. In a 74-page report submitted on Monday, MoEF has said that the construction by LCL is ‘unauthorised, in violation of the three environmental impact assessment (EIA) notifications and is also environmentally damaging.’

The report said that taking into account the facts and circumstances, the MoEF is prepared to consider the project on merits with imposition of various terms and conditions.

They include ‘the payment of substantial penalty for the violation of environmental laws, which is inconvertible.’ Apart from the penalty, ‘creation of an environmental restoration fund (ERF) by LCL with sufficiently large corpus which would be managed by an independent body with various stake holders under the overall supervision of the MoEF’ is also suggested. The third condition is ‘imposition of stringent terms and conditions to ensure that no further environmental degradation takes place and that any degradation that has already occurred would be rectified within a time bound schedule.’

The order further states that MoEF is prepared to consider the project on merit subject to imposition of penalties, the creation of ERF and formulation of a comprehensive EIA report and management plan for this project.

The order directs that ‘the order of the status quo be continued and reiterated and no construction acitivity by LCL be undertaken.’

LCL has also been directed to submit a detailed project report (DPT) for this project and the revisions from the inception. Information related to all contracts with various contractors for construction and other work has to be submitted too.

The MoEF has also asked for a submission of full plans prepared in relation to the project and all modifications, audited statement for all amounts spent directly or indirectly on the project since inception. Full details of future planning with detailed proposal, phase-wise are also to be submitted.

The ministry said it could consider approving the project because of investments already made, third party rights, employment generated and steps taken to set up a comprehensive hill station development.

The next hearing in the case is scheduled for January 28.