The National Green Tribunal has questioned the concept of two-stage forest clearance granted by Ministry of Environment and Forests (MoEF) to industries, saying "you have no business to do what you have been doing".
"Show us under the Forest (Conservation) Act that you can grant two stage forest clearance. It is a question we want an answer to as it has serious consequences. It will have far reaching effect," a bench headed by NGT Chairperson Justice Swatanter Kumar said.
"Prima facie we are of the opinion that you have no business to do what you have been doing. It is not there under the law," Kumar said.
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The MoEF was of the view that it has the power to grant two-stage forest clearance, while the tribunal observed that the ministry does not have such a power under the Forest (Conservation) Act.
The tribunal, made the observation while hearing a plea challenging the forest clearance granted to South Korean major Posco's Rs 51,000-crore mega steel project in Jagatsinghpur district of the state.
Currently, the practice followed by the ministry is that it grants two-stage approval to a project and it is left to the state government concerned to pass a final formal order of forest clearance.
The tribunal has questioned this practice of the MoEF.
In the case of Posco, the state government has not passed a final formal order, and the South Korean company's project has only received the approval of the MoEF.
As per the petitioner Prafulla Samantare, in the absence of a formal order of the state government, Posco does not have any valid forest clearance to cut trees for its project.
It is the contention of Posco that it has a valid stage I and II forest clearance.