Introduction

The case of Dastak NGO v. Synochem Organics Pvt. Ltd. was adjudicated by the National Green Tribunal (NGT) on June 3, 2021. This landmark judgment addresses the stringent enforcement of environmental regulations pertaining to the manufacturing of formaldehyde in the State of Haryana. The petitioner, Dastak NGO, challenged an order by the State of Haryana that allowed formaldehyde manufacturers to operate for six months without prior Environmental Clearance (EC), contingent upon applying for EC within a 60-day window. The core issues revolve around the mandatory nature of prior EC, the jurisdiction of the State to waive such requirements, and the compliance of manufacturing units with environmental safeguards.

Summary of the Judgment

The NGT, after thorough consideration, quashed the State of Haryana's order dated November 10, 2020, which permitted formaldehyde manufacturers to continue operations without prior EC for a limited period. The Tribunal asserted that the requirement of prior EC is a statutory mandate under the Environment Impact Assessment (EIA) Notification of September 14, 2006, specifically under entry 5(f) of the Schedule, which governs the manufacturing of hazardous chemicals like formaldehyde. The NGT referenced pertinent precedents, notably Alembic Pharmaceuticals Ltd. v. Rohit Prajapati and Ayush Garg v. Union of India, to reinforce its stance that prior EC cannot be dispensed with, regardless of compensatory measures or procedural lapses.

Analysis

Precedents Cited

Two significant cases were pivotal in the Tribunal’s decision:

• Alembic Pharmaceuticals Ltd. v. Rohit Prajapati (2020 SCC OnLine SC 347): In this Supreme Court judgment, it was unequivocally held that prior EC is an indispensable requirement and cannot be bypassed even if compensation is offered for periods of non-compliance. The Court emphasized that environmental regulations are in place to prevent potential hazards proactively.
• Ayush Garg v. Union of India, O.A. No. 840/2019: This case reinforced the principle that the consent to establish or operate under environmental regulations is subject to compliance with statutory mandates, including obtaining prior EC. The Tribunal in Dastak NGO referenced this case to substantiate the position that state authorities lack the jurisdiction to exempt entities from mandatory EC requirements.

Legal Reasoning

The Tribunal meticulously analyzed the legal framework governing environmental clearances, particularly focusing on the EIA Notification of 2006. It concluded that entry 5(f) clearly mandates prior EC for formaldehyde manufacturing units, a hazardous chemical with significant environmental and health implications. The State of Haryana's attempt to grant interim relief by allowing operations without EC was deemed unlawful as it contravened established statutory requirements.

The Tribunal dismissed the State’s reliance on a notification dated September 14, 2006, asserting that any re-drafting or revision of such notifications does not invalidate existing statutory mandates until officially amended and promulgated. Furthermore, the argument that units were operating in good faith with valid Consents to Establish (CTE) or Consents to Operate (CTO) was insufficient to override the explicit requirement for prior EC.

The Tribunal also addressed the defense presented by the respondents—that the State has delegated powers under Section 3(3) of the Environment (Protection) Act to exempt units from seeking EC. The Tribunal found no substantive evidence of such delegation or its exercise, thereby rejecting this contention.

Impact

This judgment has profound implications for environmental governance and industrial compliance in India:

• Strengthening Environmental Regulation: The decision reinforces the mandatory nature of prior EC, ensuring that industries cannot circumvent environmental safeguards even under state dispensation.
• Judicial Oversight: Courts and tribunals are empowered to nullify state orders that conflict with central environmental laws, maintaining the supremacy of statutory mandates over administrative relaxations.
• Accountability of Industries: Manufacturers are compelled to adhere strictly to environmental norms, promoting sustainable practices and accountability in operations involving hazardous substances.
• Future Litigation: The judgment sets a precedent that can be cited in future cases where entities attempt to bypass environmental clearances, thereby shaping the jurisprudence in environmental law.

Complex Concepts Simplified

Conclusion

The judgment in Dastak NGO v. Synochem Organics Pvt. Ltd. is a significant affirmation of the inviolability of environmental regulations in India. By strictly enforcing the requirement for prior Environmental Clearance, the NGT has underscored the priority of environmental protection over industrial conveniences. This decision not only aligns with the principles laid down in previous landmark cases but also sets a robust precedent that reinforces the legal framework governing environmental governance. Industries must now navigate the compliance landscape with greater diligence, ensuring that environmental safeguards are meticulously adhered to, thereby fostering a balance between industrial growth and ecological sustainability.