Environment ministry in its report submitted to the Bombay High Court has mentioned that Lavasa Corporation has violated international environmental laws in building its hill station. It is situated near Pune.

But even after that the ministry has not given any orders for any kind of demolition of the so-called illegal construction. Instead of that they have just suggested that a hefty penalty should be paid by the company and creation of a fund should be done by Lavasa itself so that the damages are fully covered by that.

The ministry has however suggested that a penalty in tune with the project should be generated and that it should not go past Rs. 100 crore. It has also ordered that unless and until the matter if checked by the court no work on the project should be carried on.

All the problems began because Lavasa did not seek any kind of mandatory environmental clearance under the Environment Protection Act, 1986. It is also said to have violated the Environment Impact Assessment (EIA) notifications of 1994, 2004 and 2006.

The Maharashtra government has set up a planning authority to look after the matter.