The AG office, which acts as Comptroller and Auditor General's (CAG) distant arm to scrutinise states' work, has inspected various projects done by the MPEDB between 2005-06 and till December 2011.
According to its report, various ecotourism activities like construction of rest houses, homes, jungle camps, huts, approach roads, cycling activities and wilderness camps are among 99 works, either going on or completed, on which Rs 710.65 lakh (Rs 7.1 crore) has been spent.
In its report which was sent to the MPEDB, the AG office has taken note of various online portals through which bookings were made to rest houses in various forest areas under Indore, Hoshangabad, Dewas, Chindwara, Jhabua, Raisen and Chhattarpur districts for promotion of ecotourism.
Prior permission to start ecotourism activities in these areas were not taken from the Centre, the report said.
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A reminder was also issued in March this year to the MPEDB to expedite the response to the objections raised in the reports and send it back to the AG office, the document said.
"No permission was taken under the Forest Conservation Act by the MPEDB to start activities in the name of eco tourism. The state government has flouted all norms and caused damage to the environment," Dubey claimed.
He said a notice has been sent to the state and central government (Ministry of Environment and Forests) to take immediate action on this.