The Environment Ministry says that the controversial Lavasa housing project near Pune is unauthorized and violates the Environmental Impact Notifications. In an order issued on Tuesday, the Ministry has directed the Lavasa Corporation Limited not to undertake any construction activity and maintain the status-quo. It says that there has been environmental degradation. The order also says that the Ministry is prepared to consider the project on merits subject to imposition of substantial penalty for the violation of environmental laws and other terms and conditions. These include creation of Environmental Restoration Fund (ERF), formulation of a comprehensive Environmental Impact Assessment (EIA) and the management plan for this project. The Ministry has also imposed stringent norms to ensure that no further environmental degradation takes place. It says that degradation that has already occurred should be rectified within a time-bound schedule.