The bench comprising Justice R K Batta and Justice A A Desai also ordered the company to restore the forest cover after demolishing the complex and to file a compliance report within a week. However the respondents have been allowed six weeks' time to go in for appeal before the Supreme Court.

Work on the prestigious housing project targeted at non-resident Indians and other up-market buyers commenced in January 1997. According to the petitioner, a local developer based in Margao purchased the forest land from the original owner and tied up with the Tatas to set up the project.

Opposition to the project began almost immediately with variousenvironmental groups alleging that the Tatas were illegally felling trees on land classified as an evergreen forest area.

The Tatas suffered their first setback early this year when an expert committee appointed by the court concluded that canopied forests were destroyed to put up the project. The committee comprising the chief conservator of forests in the state and other prominent citizens of Goa also submitted a comprehensive report on the state of forests in Goa.

Though the court did not stay the construction when the petition was first filed, it warned the Tatas that the company would have to proceed with the work at its own risk. In today's judgment, the court quashed all permits granted by various state government departments for the project. Consequently the role of Goa's town and country planning department -- then headed by former chief minister Pratapsinh Rane -- in the project is being reexamined.

The project costing approximately Rs 10 crore and spread over 1,275 sq m of land had drawnresponses from several parties. Most buyers had paid between Rs 20 lakh and Rs 70 lakh per head.