The Bombay high court on Tuesday imposed a fine of Rs 1 lakh on Anil Ambani's Reliance Energy Limited for constructing a power substation in suburban Chembur without permission from the civic authorities.

Division bench of Justices J N Patel and Amjed Sayed also dismissed REL's petition challenging demolition notice issued by Municial Corporation of Greater Mumbai.

The amount of cost will be used for welfare of corporation workers, the court instructed.

REL had moved the Bombay high court challenging a MCGM notice directing them to relocate a substation constructed by them at G M Road in Chembur in August last year.

The construction is needed to be demolished for road widening between Ghatkopar and Mulund.

REL had asked for alternate accommodation, but MCGM asked REL to produce documents to prove that it was an authorised construction. REL said that documents were lost during the 2005 floods.

After REL failed to produce any documents, BMC issued a notice for demolition. This order was challenged by REL.

The high court had asked MCGM to verify whether REL had ever obtained permission to construct the substation.

Additional Municipal Commissioner (eastern suburbs), Kishore Gajbhiye, in his affidavit had informed the court that the corporation had not granted any permission for the construction.

Based on this reply, court dismissed REL's petition and imposed the fine.