The Supreme Court in its 1996 order had directed that shrimp farms should not be set up near or on agricultural lands, salt pan lands, mangroves, wet lands, forest lands, lands meant for village common purpose or involving the use of ground water.

However, a recent survey by `Coastal Action Net Work' (CAN) , and Campaign Against Shrimp Industries (CASI) a collective of non-governmental organisations (NGOs) has found that in several districts in Tamil Nadu shrimp farms are in operation or under construction in such prohibited areas.CASI convener, Jesu Rathinam says there are about 386 shrimp ponds, though only 12 are legally permitted, in Nagapattinam district on the banks of rivers and creeks and on agricultural lands. In areas like Kiluelur, Karuvelankadai, Tirupoondi, Chinnathumbur over 1,500 acres of agricultural lands are being converted into shrimp farms. The district collector has ordered demolition of some of the illegal shrimp farms, she added.

In Thiruvarur district small shrimp farms are operating on 5 acres to 10 acres of agricultural or government lands used by villagers for common purposes and grazing.

In Thanjavur district after CASI intervention some of the 119 shrimp industries were demolished. Still over 60 are operative.The shrimp farms take over fertile lands, draw up enormous quantity of ground water and let out dirty effluents to nearby water bodies and open grounds causing all round destruction, the activists say.

If the conversion of paddy lands is allowed to continue unbridled the damage to agriculture, Tamil Nadu food production and to means of livelihood of several farm labourers would be irrevocable, they add.