In a complete violation of laws that govern environment protection and coastal zone protection in India, Odisha Government has announced its flagship coastal tourism project at Shamukha beach. Located between the city of Puri and Chilaka Lake, Shamukha beach houses about 150 tribal families, is a sand dune area and has mangroves plantation.

A 3,000-crore project that promises luxury hotels, villas, golf course, etc, has been granted Environment Clearance and Coastal Regulation Zone Clearance by the regulating authorities. However, these clearances are completely illegal as they have been granted on the wrong CRZ classification of the area and without following the due procedure, such as conducting a public consultation and absence of rehabilitation policy for tribal population to be displaced.

A petition is being filed in the High Court of Odisha challenging the project on these grounds and seeking proper rehabilitation scheme and its implementation for the tribal population to be displaced