HCC slips on possible criminal case on Lavasa promoters

Maharashtra Government is going to initiate a criminal case against Lavasa promoters soon, reports CNBC-TV18.

HCC is holding 61% stake in Lavasa.

Ajit Gulabchand, chairman and Managing Director of HCC said that, "Maharashtra government is acting as an agent of Environment Ministry. Criminal case against Lavasa was not initiated by Maharashtra Govt. Pre-conditions have never been put on projects in MoEF's (Ministry of Environment and Forests) history.

Environment Ministry is discriminating against Lavasa. MoEF does not need to wait for Maharashtra govt to give approval. Lavasa was singled out by Environment Ministry with pre-conditions.

Read full interview of Mr Gulabchand with CNBC-TV18

Read what analysts say:

SP Tulsian, sptulsian.com said that, "Last week we have relief that Hindustan Construction Company (HCC) will see the clearance of their project but with the expectation that Maharashtra government will be initiating criminal action and that will not go well with the market. Whenever we see these kinds of announcements or apprehensions coming in obviously that is very bad for the stock.