The bench, comprising chief justice MS Liberhan and justice E Padmanabhan, passed the order after the Nagpur-based National Environmental Engineering Research Institute (Neeri) submitted its report on the plant's functioning.

Neeri has recommended that the court consider closure of the plant till all the elements of environment and disaster management plans arising out of an objective, scientific and comprehensive environment impact assessment (EIA) study was assiduously implemented by Sterlite.

The report said that clearances were given by considering an inadequately prepared EIA report based on just one month's data.

The plant was established within 25 km of an ecologically fragile area ``by relaxing green belt requirements without adequate or acceptable justification'', it said.

It recommended that the state Pollution ControlBoard (PCB) conduct a study of the area which harboured several industries and other trade related to Sterlite industries. It wanted a comprehensive EIA encompassing all operations.

An analysis of waste water samples indicated that the treatment plant was operating inefficiently, as it was not able to conform to the standards stipulated by the PCB for arsenic, selenium an lead in the treated effluents, as also in the effluents stored in surge ponds.

The Neeri team of experts had completed on November 1, their study on the environmental aspects of the Sterlite copper plant. This was following the order of the green bench of the Madras High Court on September 18. The seven-member team had completed their study on the air and water pollution aspects on October 29.

It is reported that Sterlite top brass feels that the court order is not based on accidents but on the Neeri report which has blamed the company for inadequate environmental and safety measures. Sterlite makes one lakh tonnes of copper forinternal consumption and 3.25 lakh tonnes of sulphuric acid as a by-product in its Tuticorin plant.

The copper plant had been the centre of controversy even before its inception. It had come to Tamil Nadu having been rejected by the people of Ratnagiri, where it was originally proposed to be set up. The fisherfolk and others were against it as it posed environmental hazards including air and water pollution.

Environmentalists in Tuticorin have been accusing the plant of releasing noxious gases in the night. Vaiko himself had charged the plant with several gas leaks even before the Ramesh Flowers incident.

Environmental activists in Chennai termed the green bench order as the victory of the people and their right to livelihood over the powers of national and international industrial corporations.