NGT levies punitive fines on seven Tamil Nadu builders

Chennai: Hundred of crores worth residential and commercial projects in the state have come under the scanner for allegedly violating provisions of Environmental Protection Act, 1986 and Environment Impact Assessment (EIA) notification of 2006. In a landmark judgment, the Principal Bench of National Green Tribunal (NGT) has imposed a penalty of Rs 76.192 crore on seven private builders, all from Tamil Nadu, for raising unauthorised structures. It's a telling blow on the industry across the country and could well prevent the flourishing business of illegal constructions.  

In a 201-page judgment, a copy of which is available with the Deccan Chronicle, the five-member bench, headed by NGT Chairperson Justice Swatanter Kumar, has quashed two Office Memoranda (O.M.) dated December 12, 2012 and June 27, 2013, of Union Ministry of Environment, Forests and Climate Change (MoEF & CC) terming them as 'ultra vires' the provisions of the Act of 1986 and the EIA notification of 2006. “They suffer from the infirmity of lack of inherent jurisdiction and authority. Consequently, we prohibit the MoEF and the State Environment Impact Assessment Authority (SEIAA) in the entire country from giving effect to these Office Memoranda in any manner, whatsoever”, the order reads.  

As per EIA notification, obtaining prior environmental clearance is mandatory for all construction projects that exceed the area of 20,000 sq.mts. However, these Office Memoranda dilute the provisions of the notification providing builders the scope to get ‘post facto’ environment clearances for projects in which construction has already started or has been completed.The petitioner S.P. Muthuraman of Tirunelveli queried how an environment impact assessment can be done on projects, which have already commenced or completed. “This is absurd and only encourages private builders to flout norms”.

This argument was upheld by the NGT and the seven private builders, who impleaded in the case, were asked to pay environment compensation of 5 per cent of their project value within three weeks to TNPCB ranging from Rs 2 crore to a whopping Rs 36 crore.They were also prohibited from raising any further constructions, creating third party interest and/or giving possession to the purchasers/prospective purchasers without specific orders of the tribunal.

The court also set up a five-member committee to assess the ecological and environmental damage caused by the seven developers and submit the report within 45 days. The committee constitutes TN Member Secretary of SEIAA; Member Secretary of Tamil Nadu Pollution Control Board (TNPCB); professor from Department of Civil Engineering, Environmental Branch, IIT Bombay; representative from MoEF; and representative from Chennai Metropolitan Development Authority (CMDA). The member secretary of TNPCB will be nodal officer of the committee.  

Significantly, the court directed the violators not to pass on this penalty imposed on them to the purchasers / prospective purchasers, as an element of sale. Legal experts say the ramifications of this ‘historic’ judgement will cast a shadow on not just these seven private builders, but on all who choose to violate the law