CHENNAI: The case relating to the sale of 103 acres of government land at Siruseri to a Singapore developer has taken a serious turn with the Centre directing the Tamil Nadu Government to initiate action against the company for violating mandatory provisions of Environment (Protection) Act 1986.

Disapproving of certain ongoing construction activities at the site, the Union Ministry of Environment and Forests wrote to the State Government on December 30, 2005, asking it to direct the "project proponent to stop the construction." The authorities were also asked to disconnect power and water supply.

The communication from the Joint Secretary of the Ministry of Environment and Forests asked the State Government to submit an "action taken report" to the Centre within 15 days from the date of receipt of the direction. In case of non-compliance, it would be constrained to take action under Section 15 of the Environment (Protection) Act.

The communication was addressed to the Principal Secretary of Environment Department, Government of Tamil Nadu, with copies to the State Chief Secretary, the Chairman of the Tamil Nadu Pollution Control Board, the Chairman of the Central Pollution Control Board and the Chief Conservator of Forests (South Zone), Bangalore.

The Centre said it had deputed a team of Central Pollution Control Board personnel to inspect the Siruseri site after the Ministry of Environment and Forests received some "public complaints." It noticed certain "developmental activities" at the site, including the construction of a two-storeyed building, three sheds and godowns, besides machines and materials used for construction.

The team submitted a report to the Centre, stating that Singapore Realty Private Limited was developing a township contrary to the provisions of the Centre's Environmental Impact Assessment Notification 1994.

Two public interest litigation petitions, including one by the Dravida Munnetra Kazhagam treasurer Arcot N.Veerasamy have been filed in the Madras High Court seeking to declare the Siruseri land deal as illegal, alleging that it violated every known legal principle and caused Rs. 190 crore loss to the exchequer.

The petitions said though the market rate of the land at Siruseri was about Rs. 2 crore per acre, the Government had sold the land belonging to the Government and the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) to the Singapore company at the rate of Rs. 15 lakh per acre.

They also took exception to the set of "arbitrary" conditions laid down by the developer and agreed to by the State Government.

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