Committee set up by the Supreme Court has found that majority of the units in the district had violated licensing and other standards.
Wood-based industries concentrated in Perumbavoor in the district will have to pay a heavy price for violating norms.
Many of them might have to be shut down if the authorities take stern action for not complying with licensing requirements.
The Central Empowered Committee set up by the Supreme Court, in a pending case on pollution caused by wooden units in Vengola panchayat in the district, has found that the majority of the units had violated licensing and other standards.
Of the 277 units in the panchayat, 121 have not been registered under the Indian Boilers Act, 1923.
This is a severe charge which could invite heavy penalty. The units without registration would be liable to pay Rs.1 lakh plus Rs.1,000 per day for such operation, said senior lawyer V.J. Joseph.
A senior official of the Forest Department said the department was planning action against units that had been functioning without obtaining no-objection certificate. The District Forest Officer, Malayatoor, has been authorised to take appropriate action, the official said.
The committee has concluded that all the units except one have violated the Kerala Land Utilisation Order, 1967, which prohibits conversion of agricultural lands without the permission of the District Collector. The Revenue authorities failed to answer specific queries on the land conversionFallout of the development could affect banks that extended loans to the units set up illegally.