A bench of Chief Justice G Rohini and Justice Rajiv Sahai Endlaw said that the permission for bringing up the project, which was granted by the gram panchayat of Sukhna catchment area village and endorsed by Punjab government, is set aside.
It also set aside the environmental clearances given by the authorities concerned for the project.
"The court has examined the area in question, as per the survey of India maps, which indeed falls in the catchment area of Sukhna lake and hence the housing project cannot be allowed," the bench said.