Ethics and

governance

Lavasa Case Study

 ABOUT LAVASA
Lavasa is free India's first hill city being developed by HCC.
It is a private , planned city being built near Pune.
A 3 hours drive from Mumbai and an hour’s drive from
Pune, the city is a one fourth of the size of Mumbai.
The master plan of Lavasa (12,500 acres) 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
 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 developed during the British
Raj, are Shimla, Kullu and Ooty.
 Location
It 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.
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.
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 company’s 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.
CASE STUDY
 Introduction
Lavasa has been known to me for past 5 years or so, as 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, rappelling…to satiate the adventurer in you.
Lavasa- Scam or
Development?
 SCAM
While 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 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.”

. Lavasa has been asked to

provide reasons why the
government should not raze all
construction after 2006.
 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
Lavasa allowed to build bunds in
the Varasgaon backwaters,
jeopardizing Pune’s 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 Pune’s
growth as well as Lavasa.
Protesters say that Lavasa is being
projected as a city for all, when in
reality it’s only a luxury
destination for the ultra rich.
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
Shortsighted. With dam
capacities dropping rapidly
due to silting, the water
storage will keep dropping
while Lavasa consumption
will keep rising

Mega corruption for Lavasa Lavasa constructions along

approvals & sanctions
All new cities developed in the past
were developed by the government,
Lavasa is a private enterprise. Many
find this improper.
the backwaters are bad for
environment & will also
stop actions like raising the
dam height in the future

Lavasa is essentially a city for the

rich. The other segments of society
will exist in Lavasa only to serve the
rich.
 Development
There 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 whose lands were bought by Lavasa & who are employed at Lavasa
would be financially better off than earlier.
 Actions
Medha Patkar & her team led by Ms. Suniti have been
opposing Lavasa since 2008. However only in the last
couple of months has the protest really picked up steam,
with many well known activists like Anna Hazare
joining in and the Ministry of

Environment & Forestry taking a tough stand on Lavasa.

Anna Hazare has written a letter to the Chief Minister &
another letter to the Prime Minister about the Lavasa
matter.

The activists want Lavasa stopped for good. They want

the corruption to be investigated and the guilty to be
punished severely. They say that what’s built illegally
should be pulled down.
 Concerns
Many of our top banks are heavily invested in Lavasa.

A section of the protest seems to have no interest in resolving

the matter. They just want to finish off Lavasa & proclaim
victory.

There has always been a criticism of agitations led by Medha

Patkar that the focus is on blocking rather than solving.

India has a very bad record at bringing the corrupt to book. In

all probability the corrupt big fish will again escape. A few
small players might get prosecuted.

A valid point made by one shahir was that – “Lavasa says they
will give us jobs but what they want in reality is for us to be
dogs at their door, their watchmen, drivers, sweepers… We are
not educated, we wont  get any dignified jobs at Lavasa, we
prefer farming.”
Most farmers have no money management or other skills
& will end up blowing the sum they get after sale and end
up doing menial jobs in Lavasa or in Pune city.

There’s great anger in the people affected.

Laws & Equity have to apply just the same to all. So while
you want justice for the landless labourers & small
farmers there also has to be justice for the big players who
have invested crores into Lavasa.

Although there is no reason to question Medha Patkar’s

integrity, her agitations are so far on the extreme left that
there’s just no scope for a global perspective or private
enterprise.
 Displacement of Villagers
This is not the first time that these
villages are getting displaced. In Villagers say they have lost
the mid-1970s, the state owned land to the project, company
Maharashtra Krishna Valley terms allegation baseless.
Development Corporation (mkvdc)
acquired land from these 18
villages to construct the Warasgaon
irrigation-cum-drinking water dam.

The dam is built on the Mose river

and has its backwater spreading to
18 km. While acquiring land for the
dam, some villagers were
rehabilitated to nearby tehsil s and
some were allotted land upstream
of the dam.
 Video showing conversation with Ajit
Gulabchand regarding LAVASA ISSUE
STAKEHOLDERS
MODEL
 Stakeholder Theory
A stakeholder is anyone who has an interest in what a business
does or an influence upon the business. Large organisations have
many different stakeholder groups.

Some are internal to the business, like employees. Others are

external as they are outside of the business, like government.

It is important to identify and balance the needs and

expectations of these groups, and to act responsibly in view
of all of them in order to avoid conflict and ensure the business
is as prosperous as possible and keeps its ‘licence to operate’.

They are vital to the survival and success of the organization.

Their relationship with the organization enables them to be

benefited by the organizations’s actions and operations.
 PRESENT STATUS
The ministry of Environment and Forest accused the LCL for violating
The environmental laws and the Environment Impact Assessment
Notification (EIA)1994,2004 and 2006.

The LCL in reply to this filed in a writ petition in the Mumbai High court
Against the ministry of environment and forest.

The Honorable High court , on 17th Dec,2010, ordered the ministry to

Send a committee to the lavasa site and inspect the site for at least 3 days
And then submit a report to the ministry for the final analysis of the project.

Till the time the committee does not submit the report, the show cause notice
Is applicable on the project and the LCL and no further construction can be
Done before the ministry gives its final verdict over the project.
 Cont.

The MoEF made a committee of 9 members which included the advisor of the
MoEF Mrs. Nalini Bhatt, and the chairman of the committee Mr. Naresh Dayal.

The committee visited the site from 5th-7th January, 2011 and inspected every
Construction, every site of the project, assessed the environmental state and
Accordingly submitted the report to the MoEF which included a list of damages
That the LCL has caused to the environment conditions .

However the chairman of the committee is being criticized for pointing out very
Minor issue and damages to the environment.

Despite of all these issues , the MoEF is still ready to consider the project on
Merits , provided the company works on some stringent terms and conditions set
By the ministry.
For the purpose of ensuring immediate and proper compliance with the

above , LCL is directed to do the following :

1. Submit the Detailed Project Report (DPR) for the project.

2. Submit information related to all contracts with various contractors

for construction and other works.

3. Submit audited statements for all amounts spent directly or

indirectly
on the project.

4. Submit information related to all contracts entered into for the

purchase/acquisition/lease/transfer of lands.

5. Submit full details of future planning .