CRZ Under Siege: ₹350 Crore Revenue Loss Alleged as Illegal Sand Trade Thrives in Navsari Villages

Navsari | Gujarat — Serious allegations of illegal dredging, large-scale commercial sand trading, manipulation of government records and a suspected loss of more than ₹350 crore to the state exchequer have surfaced from the coastal villages of Dholai, Bigari and Posari in Navsari district’s Gandevi taluka, prompting demands for an independent high-level investigation.

A detailed complaint submitted by Darshan Naik, social activist and senior Congress leader to authorities alleges that prohibited mining-related activities have been operating for years in environmentally sensitive Coastal Regulation Zone (CRZ-I) areas under the guise of dredging operations. The complainants have urged the government to immediately halt ongoing activities and investigate the role of agencies, contractors and officials involved.

According to the complaint, the Mines and Minerals Department repeatedly granted stock registration approvals at multiple locations in Dholai, Bigari and Posari villages. The applicants allege that these permissions were issued on government and private lands without collecting rent or compensation for land use, raising questions about the legality of the process.

The complaint further claims that permissions originally granted by the Fisheries Department for dredging-related activities were allegedly used to extract sand that was subsequently sold commercially. The practice is alleged to have continued since 2015-16, creating a thriving sand trade network supplying material outside Gujarat, including to Mumbai.

“Permissions granted for flood management, river maintenance or traditional fishing needs cannot become a licence for large-scale commercial sand trading,” Naik states.

What has heightened concerns is the allegation that all three villages fall within CRZ-I and other environmentally sensitive coastal zones under the CRZ Notification, 2019, where mining of sand and other minerals is heavily restricted or prohibited. Complainants claim that mandatory CRZ clearances, environmental approvals, mining plans and quarry permissions have either not been obtained or require urgent scrutiny.

Adding to the gravity of the allegations are claims of manipulation of government monitoring systems. The complaint alleges that there is a significant mismatch between stock quantities reflected in the government’s VTMS records and the actual material available on site. It further alleges that false stock entries, fraudulent royalty passes and tampering of official records may have facilitated the illegal movement and sale of sand.

Based on preliminary estimates, the complainants have alleged that royalty and other government revenue losses could exceed ₹350 crore over the last decade.

The complaint has also cited an order of the National Green Tribunal dated May 18, 2022, which stressed strict compliance with CRZ regulations and environmental safeguards in coastal areas.

Among the key demands are a comprehensive audit of all stock registrations granted since 2015-16, verification of environmental and CRZ compliance, comparison of VTMS records with physical stock, recovery of lost government revenue and criminal action against individuals or officials found responsible.

Until the investigation is completed, the complainants have sought an immediate suspension of all stock registration and dredging-related activities in the three villages, arguing that environmental protection, transparency and public revenue are at stake.