Bombay high court stays environment ministry's direction to Lavasa to stop construction

The Bombay high court on Tuesday stayed the ministry of environment and forests’ (MoEF) order of status quo on construction by Lavasa Corporation Limited, observing that no hearing was given to the company. Terming the order “drastic”, the judges remarked, “In this country, even a criminal is entitled to a hearing.”

A division bench of justices DK Deshmukh and ND Deshpande was hearing a petition filed by Lavasa challenging the MoEF’s November 25, 2010, show-cause notice. The notice had questioned why the company did not take any clearance under the Environment Protection Act and a 2004 notification for development of townships. It had also directed the company to stop construction.

The judges said, “In our opinion, independent reasons ought to have been given in the show-cause notice for issuing such a drastic order.” They directed Lavasa to appear for a hearing before the MoEF on December 9. The ministry has been asked to pass an order by December 16. Lavasa will not carry out any construction till that date.

Additional solicitor general Darius Khambata argued that the MoEF is empowered to pass such an order without a hearing under EPA, which gives it sweeping powers. He reiterated that the MoEF is ready to give Lavasa a hearing and pass a final order by December 31.

Lavasa counsel Shekhar Naphade argued that the documents which the MoEF is relying on have not been provided. He said that the ministry should also consider the work that Lavasa has done to improve the environment of the area. He urged that the stay be lifted, as the company was incurring a loss of Rs5 crore daily.

The judges questioned why the MoEF issued the notice last month when work began in 2004. Khambata said that the State Town Planning Authority in 2008 had told Lavasa to take clearance from the MoEF.