"What is the necessity of this project? The Varasgaon dam which supplies water to Pune city is being diverted to Lavasa project," he alleged while addressing a rally here.
Hazare said these things were being done for the sake of "making money" and cautioned that Pune would be hard-pressed for drinking water supply in the next 10 years as a consequence of the Lavasa project.
Lauding Medha Patkar, one of his team members, the anti- graft crusader said she had taken up the issue of Lavasa and its fallout for the growing population of Pune.
The Gandhian, who was in the city as part of his statewide campaign for a strong anti-corruption ombudsman, said he would soon undertake a nationwide tour to canvass for Janalokpal bill and urged people to get ready for a "jail bharo" agitation for the "second freedom struggle".
Lavasa is a planned city project being built near Pune by Hindustan Construction Company (HCC) and is embroiled into controversy for multiple reasons, including procurement of land and allegations of violation of environmental norms, besides political patronage.