Lavasa Corporation, an arm of Hindustan Construction Corporation (HCC) engaged in the development of a hill township in Maharashtra, has accused Union Minister of State for Environment and Forests Jairam Ramesh of malafide intent, claiming that the ministry issued a showcause notice in haste and under pressure from activists to stall its initial public offering (IPO).
“The haste can be shown (in) that before the showcause notice was served on Lavasa, it was informed to political activists like Medha Patkar and Prakash Ambedkar, who, in turn, informed the media, citing (that) the minister himself has given a status quo on the first phase of the project,” Lavasa stated.
“There are some loopholes in Lavasa Corporation’s reply. The ministry is studying it further and a response will be given within the stipulated time,” said Ramesh today, without specifying a timeline.
In its 35-page reply, the developer alleges that the ministry’s action to serve a showcause notice on November 26 was outside its jurisdiction and done without following the principles of natural justice. According to Lavasa, no verification was conducted with respect to the activists’ allegations, even though they were brought to the minister’s notice seven months earlier.
HCC’s share price has slipped 30 per cent from Rs 57.25 on November 23 to Rs 40.05 at Monday’s close on the Bombay Stock Exchange. They hit a 52-week low at Rs 37.55 today. This followed CBI’s nationwide raids and the announcement that it had busted a major housing loan scam.
The company charged the ministry with suppressing major facts such as the Maharashtra Pollution Control Board’s reply to the environment ministry in 2005 that clauses in the 1994 and 2004 notifications were not applicable to the project. Further, the company said the notice did not make any reference to the permissions granted to laying a 110-KV transmission line on Mach 23, 2009, and construction of the Mugaon Tahmini tunnel on June 3.
Lavasa also said the ministry ignored its investment of Rs 3,000 crore made so far in the project. “The notice has been issued with an oblique motive of causing huge, irreparable financial loss to the company,” Lavasa stated.
Ramesh on Sunday said a showcause notice had been issued to Lavasa, as the ministry felt the company was violating forest conservation and environment laws in its township project near Pune.
Ramesh had denied there was any bias or prejudice in issuing the showcause notice. He had said, “When the reply comes, we will follow procedures as per law. No decision will be taken arbitrarily. Lavasa will be given a chance to put forth their point. Action would be taken after due consideration.”
