Bhubaneswar, May 4: The Puri district administration has sealed Hotel Sterling Resort located on the outskirt of the pilgrim town for alleged violation of several laws and obstruction of river course.

Speaking to The Telegraph, Puri district collector Arvind Agrawal said the company had violated several laws starting with the Coastal Regulation Zone norms, Environment Protection Act and revenue laws.

"It has constructed a road on the bed of Mangala river that falls into the sea. It has also dug up a new river mouth. This will adversely affect the local eco-system as the sweet water of the area will turn saline. Residents of around 15 villages will be affected".

The resort was sealed last night on the orders of sub-divisional magistrate Madhusudan Das after the tourists lodged in the hotel were shifted to other accommodations.

The sub-divisional magistrate directed the inspector in-charge of Baliapanda police station to seal the hotel after his field visit, said a senior official of the district administration. Apart from the sealing of the resort, the police also seized an excavator from the spot.

The managing director of Sterling Holiday Resort Private Limited has been asked by the sub-divisional magistrate to appear in person on May 12.

A senior official said the district administration has acted upon the reports of additional tehsildar of Brahmagiri, Puri divisional forest officer and executive engineer of water resources department.

The divisional forest officer in his report said the construction of the road was in violation of Coastal Regulation Zone norms and Environment Protection Act as the area fell in Coastal Regulatory Zone-1. It would have adverse impact on the local eco-system.

The report of the executive engineer of the water resources department said the move of the hotel would attract saline ingress resulting in artificial flood and coastal erosion.

Jagananth Bastia, president of Beach Protection Council of Odisha, welcomed the move of the district administration. "It will save the coast and the people of nearby villages", he said.

However, the hotel management was not available for comments. Members of the Hotel and Restaurant Association, too, refused to comment.