NGT slaps builder with ₹1.7crore fine for environmental damage
The National Green Tribunal (NGT), western zone bench, Pune, has imposed penalty on a Pune-based real estate developer as environmental damage compensation (EDC) for carrying out large-scale construction without obtaining mandatory clearances.
Pune: The National Green Tribunal (NGT), western zone bench, Pune, has directed a Pune-based real estate developer to pay ₹1.7crore as environmental damage compensation (EDC) for carrying out large-scale construction without obtaining mandatory clearances.
The order, delivered by a bench comprising Justice Dinesh Kumar Singh as judicial member and expert member Vijay Kulkarni on Thursday, came in response to an application filed by resident Vishal Shantaram Darwatkar.
The applicant alleged that the developer had undertaken a major residential project on Katraj–Kondhwa Road in Pune, flouting statutory requirements under environmental regulations.
According to the petition, the developer commenced construction of buildings A, B, and C in 2011, which were completed by 2016. During this period, in 2014, a cooperative housing society was registered for its residents. Later, in April 2019, the developer initiated construction of building D, which was completed in July 2023. While the developer maintained that the buildings were independent projects, the tribunal rejected the claim.
Treating the four buildings as part of a single integrated project, the tribunal observed that the combined built-up area exceeded 20,000 square metres, which is the statutory threshold that mandates prior environmental clearance (EC) along with consent to establish (CTE) and consent to operate (CTO) from the Maharashtra Pollution Control Board (MPCB) and the State Environment Impact Assessment Authority (SEIAA). Both MPCB and SEIAA confirmed before the tribunal that no such permissions or approvals were granted to the project.
{{/usCountry}}Treating the four buildings as part of a single integrated project, the tribunal observed that the combined built-up area exceeded 20,000 square metres, which is the statutory threshold that mandates prior environmental clearance (EC) along with consent to establish (CTE) and consent to operate (CTO) from the Maharashtra Pollution Control Board (MPCB) and the State Environment Impact Assessment Authority (SEIAA). Both MPCB and SEIAA confirmed before the tribunal that no such permissions or approvals were granted to the project.
{{/usCountry}}The tribunal in its judgement stated that it was a case of right violation from the beginning and the project proponent, who had violated the law with impunity, could not be allowed to go scot-free. The tribunal referred to the Supreme Court’s precedent-setting ruling in Goel Ganga Developers Pvt. Ltd. vs. Union of India (2018), which laid down the principle of imposing environmental compensation at the rate of five per cent of the total project cost in cases of blatant violations.
{{/usCountry}}The tribunal in its judgement stated that it was a case of right violation from the beginning and the project proponent, who had violated the law with impunity, could not be allowed to go scot-free. The tribunal referred to the Supreme Court’s precedent-setting ruling in Goel Ganga Developers Pvt. Ltd. vs. Union of India (2018), which laid down the principle of imposing environmental compensation at the rate of five per cent of the total project cost in cases of blatant violations.
{{/usCountry}}The NGT calculated the project cost at around ₹34 crore and imposed a compensation of ₹1.7 crore. The developer has been ordered to deposit the amount with MPCB within one month. The pollution board, in turn, has been directed to utilise the funds within six months for environmental restoration measures in the affected area and submit a compliance report before the tribunal.
The applicant also pointed out other violations at the project site, including the illegal extraction of groundwater through borewells without permissions, narrowing of a natural water stream which disrupted the local hydrology, absence of a proper sewage treatment plant raising concerns of untreated wastewater being discharged, and inadequate plantation and green cover contrary to environmental norms for residential projects. The environmental watchdog observed that such deficiencies further demonstrated systematic neglect of green safeguards by the developer.
The ruling is being seen as a significant message to Pune’s booming real estate industry, which has often been accused of ignoring environmental compliance in the rush to complete large-scale housing projects.
Concluding the matter, NGT disposed of the application with a clear warning to project proponents. The bench emphasised that developers cannot evade legal responsibilities and that strict adherence to environmental norms is a non-negotiable obligation. The tribunal said that the compensation levied was not only a penalty, but also a measure to ensure restorative justice by channeling the funds towards mitigating the environmental damage caused by unauthorised construction.
