The Ministry of Environment and Forests (MoEF) has reportedly ordered penalties for Lavasa Corporation Limited and maintained status quo to continue at the high profile Lavasa township project near Pune.

While submitting its report at the Bombay High Court on Tuesday, the Ministry said the project violates Environmental Impact Assessment Notification of 1994.

The Ministry has ruled against the project saying the construction is 'unauthorised' and 'environmentally damaging'.

It also slapped substantial penalties on the company and ordered to maintain status quo at the site.

But Lavasa Corporation Limited hit out at the Ministry claiming that it does not have objective and measurable norms.

Earlier, on Dec 22, the high court backed the Ministry's stop-work notice on the high profile township project.

The Ministry had reinstated its stop-work notice on Dec. 14 after the Court had stayed it on Dec. 7, asking it to give a hearing to the Hindustan Construction Company (HCC) group-backed Lavasa Corporation.

The company had to stop work on its USD 31 billion township being developed 60 km from Pune after the Ministry of Environment and Forests had slammed it for not obtaining a clearance as per the Environment Protection Act.

In a showcause notice, dated Nov. 25, 2010, the Ministry had asked why certain structures built after 2004 should not be razed and had ordered a stay on all construction. Lavasa had challenged the notice and the stay order in the Bombay High Court.