The Ministry said upon receipt of this report a team of officers was dispatched to investigate the claims.
It said preliminary findings indicate the excavation on the site is connected to development work related to the construction of a commercial property.
Meanwhile, the San Fernando City Corporation (SFCC) has ordered that excavation work be halted until and an investigation into whether proper procedures are being followed is completed.
San Fernando Mayor Kazim Hosein said the City Police visited the site and found evidence that illegal quarrying was taking place in an area cordoned off by galvanized roofing sheets.
The mayor said preliminary investigations found that permission was granted over four years ago by the then Ministry of Planning, Housing and the Environment, for the construction of a three-storey structure that included a basement, 15 feet deep.
He added the San Fernando City Corporation is in the process of notifying Town and Country Planning, the Environmental Management Authority (EMA), Office of Disaster Preparedness and Management (ODPM) and other relevant State agencies.