Court Overturns Massive Fine for Tree Felling in Paraguay

The Tribunal de Cuentas has nullified a substantial fine of over G. 17 billion levied by the Municipality of Itacurubí de la Cordillera against the Consorcio Rutas 2 y 7. The fine was originally issued for the unauthorized felling of more than 3,500 trees, significantly exceeding the permitted number.

The dispute began in 2022 when the consortium sought municipal authorization to cut down 7,614 trees. The municipality granted permission for only 4,078 trees through Resolution J.M. N° 161/22. However, the consortium proceeded to fell all 7,614 trees, resulting in an excess of 3,536 trees felled without proper authorization. Consequently, the local magistrate's court imposed the hefty fine on October 24, 2022, citing a violation of Law No. 4928/2013 on Urban Tree Protection.

The consortium appealed the decision, but the administration upheld the fine in November 2022. The company's lawyer then filed an administrative lawsuit, arguing that the fine was arbitrary and disproportionate. The consortium contended that the municipality lacked the authority to regulate tree felling within the framework of the Ruta PY02 Project, asserting that such matters fall under national bodies like the Ministry of Public Works and Communications (MOPC), the Ministry of Environment (MADES), and INFONA.

Furthermore, the consortium argued that the municipality overstepped its jurisdiction, infringing upon state competencies and violating normative hierarchy. They maintained that the tree felling was conducted in accordance with contractual obligations and supported by environmental licenses, management plans, and authorizations from competent national authorities, thus not constituting an infraction.