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Ethics and Governance Lavasa

Dec 04, 2014



LAVASA CASE STUDY : A hill city or a controversial city?

Amit Kumar Nayak 20110102 Arun Sharma 20110103

THE CREATORS- HCC & LCLHindustan Construction Company Ltd HCC is an integrated group spanning Engineering & Construction, Real Estate, Infrastructure and Urban development & Management. The HCC group of companies comprises HCC Ltd (Engg & Construction), and its subsidiaries HCC Real Estate Ltd, HCC Infrastructure Ltd, Lavasa Corporation Ltd. and Karl Steiner AG, a recent acquisition in Switzerland. It was founded by Industrialist Seth Walchand Hirachand in 1926


ABOUT LAVASALavasa is free India's first hill city being developed by HCC(Hindustan Construction Company). It is a private , planned city being built near Pune.

A 3 hours drive from Mumbai and an hours drive from Pune, the city is a one fourth of the size of Mumbai.The master plan of Lavasa (25,000 acres/100 km2) is developed by internationally renowned design consultant HOK, USA and is based on the principles of new urbanism that brings together all the components essential to daily life in a more organized manner

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Continued..Lavasa city has been designed on the principles of new urbanism, and is said to offer the best-in-class infrastructure, international educational institutions, leading non-polluting industries, exciting avenues of leisure & tourism and homes for comfortable living.

An ecologically sustainable environment will help you live, work, learn and play in harmony with nature at Lavasa. Over 25,000 lakeside apartments and villas with over 50,000 employment opportunities should be available at Lavasa city.Apart from it's diversity in work possibilities, Lavasa also present some wonderful housing options for permanent residents. Some other famous concepts of hill cities, but all Thursday, 03 May Environmental Management 2012 developed during the British Raj, are Shimla, Kullu and Ooty.

Lavasa City -- A Virtual Tour.flv

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LocationIt is located in the picturesque landscape of the Sahayadri Mountains and is set amidst 7 hills and 60 km. of lakefront. The area that is demarcated for Lavasa is located in the Western Ghats of India, on the banks of the Baji Pasalkar Reservoir behind the Warasgaon Dam which is the primary source of water for nearby city of Pune.Environmental Management

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It is spread amidst 100 sq. kms., which is almost 1/4th the size of mumbai. Lavasa is at its magical best during the monsoon season. The rains arrive, bringing with them the promise of months filled with pattering showers, lush green hills with many waterfalls playfully tumbling down them, and days are spent looking out at the rain through a wet window, smiling at a paradise that has been found. The valley is full of extraordinary flora and fauna. Throughout the year, the temperature remains from 4 to 36 degree Celsius.Environmental Management Thursday, 03 May 2012

Lavasa Corporation Limited, a subsidiary of Hindustan Construction Company Limited (HCC), is developing the project with plush(luxurious) promises of a dream abode. Scheduled to finish by 2021, the first phase, Dasve town, may become operational by mid next year. The companys dreams, however, have become a nightmarish experience for 18 villages from where the land has been acquired to develop Lavasa.These 18 villages, mostly inhabited by tribals, are spread out in the Mulshi and Velhe taluka of Pune district. On speaking to villagers it was found that these villagers were cheated by local agents land records changed, loss of land, bouncing of cheques, threats and living in constant fear.

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Environment Initiatives at Lavasa.flv

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I had over 18 hectares. I sold it to a private agent in 2002 against five cheques totalling Rs 580,000. All of them bounced and I havent received a single penny for my land which is now in the name of the company. I now work as a chowkidar in Pune GYANESHWAR VISHNU SHEDGE, a 60-year-old-villager of Mugaon


I have somehow managed to hold onto my 19 hectares. I wont part with it. Some representatives of the company came to survey my land but I took away their survey machinery. I have three daughters and one son to support LEELABAI BHADU MARGALE, a 33-year-old widow of Mugaon


I have about seven hectares, which I refused to sell to local agents. They threatened to get me killed and I had to run away and stay in the forests for six months DAGDU BHAVDANI, a 65-year-old villager of Mugaon


IntroductionLavasa is a new city / hill station coming up near Pune, a city which would primarily be a luxury tourist & education center. The most powerful man in Maharashtra, Sharad Pawar & his family were always said to be the benefactors & promoters of Lavasa. Lavasa is a hub for world-class educational institutions, hospitality and training centers, it's an arena for the mind where learning is a way of life. Lavasa offers a refreshing climate with vast open spaces provides innumerable recreation and leisure activities like golf, trekking, rappellingto satiate the adventurer in you.Environmental Management Thursday, 03 May 2012

SCAMWhile there were murmurs of Lavasa wrong doings & local opposition for the past year or so, the project only made prime time news when Narayan Rane, the then state revenue minister opened a can of worms and said that the Maharashtra government was probing irregularities in Lavasa. Lavasa has been asked to provide reasons why the government should not raze all construction after 2006.Environmental Management Thursday, 03 May 2012

Lavasa has since replied to the notice, saying It was not necessary for our project to get an EC (Environ Clearance) from the MOEF (Ministry of Environment & Forests). Complaints made by the NGOs are baseless.

Accusations Against Lavasa :Land being acquired by hook or crook.

Inadequate compensation.State machinery used to coerce farmers No proper plans to rehabilitate the farmers affected Land being acquired at government rates when market rates are much higher Most construction without necessary central govt. environment sanctions State environment sanctions rigged / bought. Fundamental issue of whether the state should have in the first place given out prime & fertile agricultural land to a private corporation

Lavasa allowed to build bunds in the Varasgaon backwaters, jeopardizing Punes water supply Land leased includes land under water. The fact that the water is priceless & critical for the Pune area seems to have been ignored. Lavasa to pull 3 TMC water from Pune. Pune already struggling with water supply

Water resources in the area are inadequate to sustain Punes growth as well as Lavasa.Protesters say that Lavasa is being projected as a city for all, when in reality its only a luxury destination for the ultra rich. Thursday, 03 May Environmental Management2012

Lavasa has been granted permissions in quick time by bending / breaking the law. Land leased for 30 yrs by govt. which in fact will never be returned and is as good as sold Land leased at throw away prices Mega corruption for Lavasa approvals & sanctions All new cities developed in the past were developed by the government, Lavasa is a private enterprise. Many find this improper. Lavasa is essentially a city for the rich. The other

Shortsighted. With dam capacities dropping rapidly due to silting, the water storage will keep dropping while Lavasa consumption will keep rising Lavasa constructions along the backwaters are bad for environment & will also stop actions like raising the dam height in the future

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DevelopmentThere is a plan for development

Pune like most Indian cities is being overwhelmed by migrations from other parts of India. Lavasa could take some of the load.Lavasa could bring in tourists from across the globe, would help the economy of the area Lavasa claims that some 97000 jobs will be generated and that for most jobs, locals would be employed. Lavasa provides an alternative for people to stop crowding a few pockets of Pune city & instead move to a new city Lavasa is expected to attract world class education institutions & technology companies to the area Lavasa has the luxury of a fresh start & can fix the things that have gone wrong in most Indian cities Most of rural India struggles to makes ends meet. It is likely that the local people Thursday, 03 May Environmental Management whose lands were bought by Lavasa & who are employed at Lavasa would be 2012

Acts violated by Lavasa Project (Protection) Act, 1986 EnvironmentThe Indian Forest Act and Amendment, 1984The Wildlife Protection Act Rules 1931 and Amendment 1991 The Forest (Conservation) Act and Rules, 1981 The River Boards Act, 1956 The Water (Prevention and Control of Pollution) Act, 1974Environmental Management Thursday, 03 May 2012

Legal Actions against violation of these ActsPenalty or with fine which may extend whosoever person found to be the cause of pollution, may be liable for punishment for a punishment for a term which may extend to five years to one lakh rupees or both(Sec 15, 16, 17). If not comply fine of Rs 5000/day extra, still if not comply for more than one year, then imprisonment may extend up to 7 years.Environmental Management Thursday, 03 May 2012

ActionsMedha Patkar & her team led by Ms. Suniti

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