Developing a city comes with its own challenges. One such challenge is the recent set of allegations that have been levelled against Lavasa by some sections of media. These allegations are based on inadequate knowledge of facts and are speculative with respect to various compliances, land purchase issues and political shareholdings.

Here below, are the facts vs. the allegations.

Allegations concerning ownership pattern of LCL

Politicians have stakes in LCL

This is not true. LCL is a subsidiary of HCC, an 84 year old company founded by Walchand Hirachand. HCC holds 64.99%, Avantha Group holds 16.25%, Venkateshwara Hatcheries hold 12.79% and Vinay Maniar holds 5.95%.

Allegations concerning land purchase

Government has given land to LCL

This is wrong. The Government has neither given any land nor has LCL purchased any land from the Government. LCL has directly purchased around 9500 acres of land through private negotiations at the then prevailing market prices, over the last eight years. The land transactions have been conducted within the relevant regulatory framework.

Maharashtra Krishna Valley Development Corporation (MKVDC) has given land at concessional rates.

MKVDC was within its rights to lease the land and the lease was given in 2002 at the prevalent market rates. MKVDC has leased only 141.15 hectares of land to LCL, of which 129 hectares is land under water. LCL has just about 12 hectares of the surrounding land for tourism development. LCL pays a lease rental of 15 % of the market value of the land arrived at the time of entering into the lease.

Lavasa has bought 600 hectares of land from farmers, from the surplus pool allotted by the State Government. Lavasa was required to pay 75% of the price to the state but has paid only 2%.

LCL has purchased around 350 hectares of Class II land by paying 2% premium to the Government. This was as per the ‘challans’ raised for the premium by the Collector’s Office, in accordance with the provisions of Bombay Tenancy & Agricultural Lands Act for bonafide industrial use.

Lavasa has grabbed tribal lands.

No land purchased by LCL has been categorized under the 36A category, which is the tribal land category. In fact, most of the land has been purchased from people having ‘farmer status’ who live in Mumbai, Pune, London, New York, Dubai, etc.

Lavasa has used coercive methods against villagers.

No coercive methods have ever been used. An example being of a villager having a 10 sq. ft. tea stall right in the heart of Dasve town which has now grown into a 20,000 sq. ft. lodge, restaurant and store. This proves that local villagers are not coerced and are in fact experiencing significant economic benefits at Lavasa. LCL also provides housing, healthcare, education, crèche, vocational training, employment opportunities and other essential amenities like roads, water, toilets, etc. to villagers.

Allegations concerning the environment

The project has no environmental clearance.

In accordance with the condition of the State Government’s in-principle approval dated 27th June, 2001, LCL has obtained Environmental Clearance from the State Environment Department in March 2004. This clearance is for 2000 hectares within which the present development activities are confined. As advised by the State Urban Development Department, LCL has applied to the State Level Environment Impact Assessment Authority for future development. The due process for future development is underway.

Lavasa development is not taking environment aspects into consideration.

LCL has obtained all necessary environmental clearances. Soil development including slope stabilization, ground water recharge, erosion control is regularly carried out using innovative techniques like Hydroseeding. Thousands of sq. metres of land at Dasve has already been hydroseeded. Green cover is not only being protected but also enhanced. Lavasa has targeted planting of 30 lakh trees in the next couple of years of which 6 lakh trees have already been planted. The science of Biomimicry is being used for the first time, wherein even architectural development of the city will be based on learnings from Nature. LCL is also working with LEEDS to develop standards for `Green Cities’ and neighborhoods.

Other allegations

Pune water is being diverted to Lavasa thus affecting Pune’s supply.

Lavasa when fully developed will require only 35 MLD (million litres per day) water out of the total 3500 MLD capacity. This is just 1% of the total capacity. Lavasa is further constructing secondary check dams to retain approximately 100 MLD for self sufficiency. 80% of the water used in Lavasa will be recycled.

Incidentally, Pune consumes more than 300 litres water per capita per day as against the national norm of 135 litres and New York city’s 200 litres. Pune also does next to nil recycling of water.

Government has lost stamp duty to the tune of 1000- 5000 crores.

Government of Maharashtra gives Stamp Duty exemption to all tourism projects. With respect to Lavasa, this exemption amounts to Rs. 3 crores only. In fact Government will earn an estimated Rs. 2100 crores stamp duty revenue from Lavasa property sales. Further to this, Government will gain a variety of revenues like income tax, VAT, service tax, etc. resulting into thousands of crores.

Lavasa is a five-star city being developed only for the rich.

This is a myth. Like any other city, Lavasa will cater to the entire spectrum of population. It will have a complete range of facilities for housing, education, hospitality, recreation and tourism for low, middle and high income groups. It will generate up to 1 lakh jobs in the region, thus creating a whole new economy which is inclusive and environmentally sustainable.