The apex court imposed the cost while expressing dissatisfaction at the Centre's failure to file the reply and asked it to pay the fine and respond within two weeks to the plea seeking certain amendments in the original suit.
A bench comprising Justices M B Lokur and Deepak Gupta agreed to another plea by Odisha and impleaded Telangana and Chhattisgarh as parties in the case.
The project is under construction in West Godavari District and East Godavari District of Andhra Pradesh and its reservoir spreads to parts of Chhattisgarh and Odisha.
The apex court had earlier sought the Centre's response on another plea alleging violation of rights of Scheduled Tribes (STs) and forest dwellers due to the Polavaram Project.
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The petition has claimed that the project will submerge about 600 habitations in Andhra Pradesh, Chhattisgarh, Odisha and Telangana and also submerge about 8000 acres of forest and 500 acres of the wild life sanctuary.
The Ministry of Environment and Forest had given a direction to stop the construction work of the project on February 8, 2011, but had later kept its own order in abeyance.
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