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The project plans to provide drinking water to several districts, including Kolar, Chikkaballapur, Tumakuru and other districts by diverting the flow of Yettinahole, a major tributary of the Netravathi river.
Petitioners have sought that the project be stalled on several grounds including the threat it poses to the ecological balance of Western Ghats.
The bench, headed by Justice Adarsh Kumar Goel, gave concerned parties a weeks time to submit in writing if they wanted to raise any other issue.