Login
  • Bookmark
  • PDF
  • Share
  • CaseIQ
 

Tanaji Balasaheb Gambhire v. Union Of India

National Green Tribunal
Sep 27, 2016
Smart Summary (Beta)

Factual and Procedural Background

This application, numbered 184/2015, was filed under Sections 14 and 15 of the National Green Tribunal Act, 2010, by the Applicant Tanaji Balasaheb Gambhire against the 9th Respondent Project Proponent (PP), M/s Goel Ganga Developers India Private Limited. The project proponent had envisaged a commercial and residential construction project at Village Vadgaon Budruk, Sinhagad Road, Pune.

The Applicant alleged that although the 9th Respondent obtained Environmental Clearance (EC) dated 4th April 2008 for construction of 12 buildings comprising 552 flats, 50 shops, and 34 offices with a total built-up area of 57,658.42 sq.m., the Respondent exceeded these limits by constructing 15 buildings with 738 flats and increased commercial spaces without obtaining modified EC.

Inspection by Maharashtra Pollution Control Board (MPCB) on 31st August 2015 revealed non-compliance with EC conditions, including unauthorized additional buildings and increased built-up area. MPCB directed voluntary cessation of construction and later ordered disconnection of electricity to the project on 30th September 2015.

Despite these directions, the Respondent obtained partial Occupancy Certificate and continued construction. The Applicant also alleged failure of statutory authorities including Pune Municipal Corporation (PMC), State Level Environment Impact Assessment Authority (SEIAA), and Department of Environment (DoE) to enforce environmental laws and take appropriate action against violations.

The application sought directions for demolition of illegal structures, initiation of action against the project proponent and authorities for violations, disclosure of projects granted post facto clearance, and imposition of environmental compensation.

Notice was served to nine respondents including Union of India, various state authorities, and the project proponent. The Respondent No.9 initially resisted but later ceased construction voluntarily. The Tribunal heard arguments from all parties and reserved judgment after considering all factual and legal contentions.

Legal Issues Presented

  1. Whether the construction activity of Respondent No.9-PP exceeded the limits sanctioned under the original Environmental Clearance dated 4th April 2008.
  2. Whether the Respondent No.9-PP could proceed with construction without obtaining modified Environmental Clearance for increased scope and scale of the project.
  3. The legality and correctness of the order dated 31st May 2016 passed by the Principal Secretary, Department of Environment, which declared the construction activity to be within permissible limits.
  4. The consequences and appropriate remedial measures for violations of EC conditions and environmental laws by Respondent No.9-PP and failure of statutory authorities to enforce compliance.

Arguments of the Parties

Applicant's Arguments

  • The Respondent No.9-PP violated the EC conditions by constructing 15 buildings instead of 12, increasing flats from 552 to 738, and expanding commercial activities without obtaining modified EC.
  • MPCB inspection and meeting minutes confirmed non-compliance and unauthorized construction, including a building of ground plus 30 floors without consent.
  • Despite directions to stop construction, the Respondent continued activities and obtained partial Occupancy Certificate illegally.
  • Statutory authorities like PMC, SEIAA, and DoE failed to discharge their functions effectively, with PMC granting Completion Certificate despite knowledge of violations.
  • The order dated 31st May 2016 by the Principal Secretary, DoE, was challenged as a result of collusion and misinterpretation of FSI and Built-Up Area (BUA), misleading the Tribunal and authorities.
  • The Applicant sought demolition of illegal structures, environmental compensation, and action against erring officers and authorities.

Respondent No.9-PP's Arguments

  • The project as conceived was legally permissible and construction was within statutory limits.
  • The Floor Space Index (FSI) or Built-Up Area (BUA) utilized was within the sanctioned 57,658.42 sq.m. as per the original EC dated 4th April 2008.
  • The order dated 31st May 2016 by the Secretary, DoE, supported the legality of construction and withdrawal of proposed directions to stop construction.
  • The Completion Certificate granted by PMC for part of the project validated the project’s compliance.
  • The Respondent denied any violation of statutory regulations or EC conditions.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Sterlite Industries India Ltd. v. Union of India, 2013 (4) SCC 575 Strict Liability and awarding damages for non-compliance with Water (Prevention and Control of Pollution) Act, 1974 Used to emphasize imposition of exemplary environmental compensation for violations without exact calculation of damages.
S.P. Muthuraman, 2015 ALL (I) NGT Reporter (2) (Delhi) 170 Environmental compensation and enforcement of environmental standards Referenced for the Tribunal’s authority to impose environmental compensation and regulate unauthorized constructions.
Krishan Lal Gera v. State of Haryana, Appeal No. 22 of 2015 (25 Aug 2015) Environmental compensation for construction without prior environmental clearance Applied to impose a 5% compensation of total project cost and Rs. 5 crores fine on project proponent for violations.
M.C. Mehta v. Kamal Nath & Ors., AIR 2002 SC 1515 Polluter Pays Principle and environmental protection Reinforced the principle that violators must bear costs of environmental damage, supporting Tribunal’s directions.
Jalbiradari and Others v. MoEF, Appeal No.7/2015 (31 May 2016) Quashing environmental clearance and fate accompli situations Considered in context of regulating construction projects already underway without clearance and imposing environmental compensation.
Forward Foundation & Ors. v. State of Karnataka & Ors., O.A. No. 222 of 2014 (7 May 2015) Environmental regulation and enforcement Used to support the principle of sustainable development and enforcement of environmental laws.

Court's Reasoning and Analysis

The Tribunal carefully analyzed the factual matrix and legal submissions, focusing on the distinction between Built-Up Area (BUA) and Floor Space Index (FSI). It noted that the Environmental Clearance dated 4th April 2008 specified a total built-up area of 57,658.42 sq.m. and project configuration including 12 buildings.

The Tribunal rejected the Respondent’s and PMC’s contention that BUA and FSI are synonymous, emphasizing definitions from the Pune Municipal Corporation Development Control Rules, 1982, which clearly distinguish the two terms. The Tribunal found that the Respondent had constructed 15 buildings and increased flats and shops beyond the EC limits without obtaining modified clearance.

The order dated 31st May 2016 by the Principal Secretary, DoE, was critically examined and set aside on grounds of erroneous interpretation of FSI and BUA, non-application of mind, and procedural impropriety since the Tribunal had reserved judgment at that time.

The Tribunal found that statutory authorities, especially PMC and DoE, failed to discharge their duties effectively, whereas MPCB took appropriate action. The Applicant’s case of violation of EC conditions was substantiated, establishing that construction beyond EC limits is illegal and cannot be justified by misinterpretation of technical terms.

Considering the near-completion status of the project and creation of third-party rights, the Tribunal balanced environmental protection principles with practical consequences. It invoked principles of Sustainable Development and Polluter Pays, referencing binding precedents to impose environmental compensation rather than ordering demolition.

Holding and Implications

The Tribunal allowed the application and issued the following directions:

  • The Respondent No.9-PP shall pay environmental compensation of Rs. 100 crores or 5% of the total project cost (whichever is less) within one month for environmental damage caused by unauthorized construction, plus Rs. 5 crores for contravention of environmental laws and failure to obtain consent from MPCB.
  • A fine of Rs. 5 lakhs is imposed on Pune Municipal Corporation for deliberate or negligent suppression of facts, with directions to take action against responsible officers.
  • The Chief Secretary and competent authorities are directed to take notice of the conduct of officers who misled the Department of Environment, particularly the Principal Secretary who authored the order dated 31st May 2016.
  • PMC, DoE, and SEIAA are directed to pay Rs. 1 lakh each as costs to the Applicant within four weeks.

The Tribunal did not order demolition due to the advanced stage of construction and creation of third-party rights, emphasizing remedial and restorative measures instead. The decision underscores the necessity for strict compliance with environmental clearances, proper supervision by authorities, and adherence to the Polluter Pays and Sustainable Development principles. No new precedent was established beyond application of existing legal principles and prior judgments.

Show all summary ...

1. This Application, numbered as 184/2015 invoking jurisdiction of this Tribunal, is under Section

14 and 15 of the National Green Tribunal Act, 2010 (J) Application No.184/2015 3 (for short NGT Act). The Applicant Tanaji Balasaheb Gambhire has sought certain directions against the 9th Respondent Project Proponent (PP) M/s Goel Ganga Developers India Private Limited who is said to have envisaged construction venture to construct a commercial and residential complex.

2. In the Application, the Applicant has sought following directions: A. Direct the Respondents to demolish the illegal structures at the site in question and restore the area to its original position. B. Direct the State Level Impact Assessment Authority and the Maharashtra State Pollution Control Board to initiate appropriate action against the project proponent for violation of the provisions of EIA notification, 2006 and other applicable laws. C. Direct Respondent No.2 to take appropriate action against the State Level Impact Assessment Authority for granting environment clearance in violation of the provisions of EIA Notification, 2006. D. Direct the State Level Impact Assessment Authority and the Maharashtra State Pollution Control Board to disclose all such projects which have been granted post facto clearance or have been constructed without taking prior environment clearance. E. Having regard to the damage to the public health, property and environment, principles of sustainable development and polluter pays principles and direct the Respondent No.9 to (J) Application No.184/2015 4 deposit a heavy amount of compensation to the environment relief fund.

3. In support of the reliefs so sought, he has averred factual and legal aspects to which we shall refer briefly now. a. The 9th Respondent obtained Environmental Clearnace (for short EC) for its project at Survery Nos.35 to 40 in Village Vadgaon Budruk, Sinhagad Road, Pune. The project conceived and approved by said EC is to construct 12 buildings with stilt, basment plus 11 floors vertically for

552 flats, 50 shops and 34 offices. The total plot area is 79,100 sq.mts while the total built-up area is to 57,658.42 sq.mtrs. b. The EC was obtained by the 9th Respondent-PP on 4th April, 2008 and thereafter, PP has commenced construction activity. The Applicant has not brought in question the EC dated 4th April, 2008 but has other serious grievances. c. The Applicant would contend that after the project of 9th RespondentPP has sufficiently progressed, the Member Secretray of Maharashtra Pollution Control Board (MPCB) caused inspection of the construction activity on 31st August, 2015 and thereafter, granted a personal hearing to the Respondent No.9-PP in respect of MPCB findings. The Minutes of the Meeting held on 31st August, 2015 show that the Regional Officer of the MPCB had reported non- compliance of the terms on which EC was granted to the 9th Respondent. In that, there is clear statement that though the EC was for construction of 12 buildings but the Respondent No.9-PP has built 15 buildings and increased (J) Application No.184/2015 5 number of flats from 552 to 738 as also the number of shops was increased from 84 to 111. d. The Minutes of the Meeting further show that the representative of PP had accepted the non- compliance to the conditions of EC in increasing the construction of number of buildings, number of flats, offices and shops. e. The Minutes of the Meeting would also record that consent for additional building of Ground plus 30 Floor was not taken though the civil work of its construction was in progress.

4. The Applicant relies on such material information recorded in the Meeting to contend that there was clear finding on inspection by the competent authority i.e. MPCB that the Respondent No.9-PP had not complied with the conditions of the EC granted. Reference is also made to the fact that MPCB having noticed such non-compliance had directed the Respondent No.9-PP to voluntarily stop construction activity till modified EC is obtained. Consequently, having noticed deliberate violation of the conditions of EC and non-compliance of its voluntary closure directions, MPCB had issued direction not only for stopping further construction activity but directed disconnection of electricity to the project by its Order dated 30th September, 2015.

5. The Applicant further points out that despite such lapses on the part of the Respondent No.9-PP, it (J) Application No.184/2015 6 managed to get the Occupancy Certificate for part of the project which is complete and has virtually occupied it. This, according to the Applicant, is in total violation of the legal mandate that mandatory consent of operate should be obtained before the project activity is undertaken.

6. Amongst other issues raised he points out to the fact that building plan for construction activity of the project was revised by Respondent No.9-PP nine times. This, according to him, illustrates the significant modification in the scale of construction in terms of area, plinth area and floor heights, besides change in lay-out scheme. Refering to condition No.5 of the EC. It is alleged that the scope of the project in terms of built up area has changed. Moreover, the project lay-out as well as number of buildings also has substantially changed. Thus, the Respondent No.9-PP was obliged to obtain modified EC before undertaking such activity which is in total deviation to the original EC. Citing numerous statistical data, the Applicant would further claim that the construction activity carried out by the Repsondent-9 PP has grossly exceeded the scope of the project as approved by EC in terms of built up area and configuration of project.

7. Based on these facts, he would contend that the project activity is not as per the proposal which (J) Application No.184/2015 7 was considered and approved by Ministry of Environment and Forest while granting the original EC on 4th April, 2008 and therefore there is gross violation of EC condition.

8. The other contention urged by the Applicant is to indicate failure on the part of the Statutory Authorities like Pune Municipal Corporation (PMC), State Level Environment Impact Assessment Authority (SEIAA), Department of Environment, State of Maharashtra (DoE) in discharge of its statutory functions. In this regard, he contends that Pune Municipal Corporation (for short PMC) was well aware of such violations but granted Completion Certificate. Reference was made to page-36 of the Rejoinder where it is stated that violation of non- compliance of EC was well within the knowledge of the concerned officer of PMC. He then refers to the action taken by Deputy Engineer of Building Construction Department of PMC who having realised the blanket violation of EC then, had directed Respondent No.9-PP on 20.2.2015 not to continue construction activity without obtaining amended EC. It is alleged, despite such clear direction of the Deputy Engineer, the Respondent No.9-PP continued construction as per its revised approved lay-out by PMC which depended totally on the validity of the EC. Thus, he contends (J) Application No.184/2015 8 that grant of revised lay-out plan by PMC itself is not tenable and consequently the construction activity being illegal needs to be restrained.

9. In this regard he would refer to the order passed by PMC imposing fine of Rs.1,57,00,000/- for illegal occupancy of part of the project building which Respondent No.9-PP without remorse has accepted and deposited on 23rd October, 2015.

10. The Applicant has further alleged total inaction on the part of SEAC and SEIAA and to substantiate his contention refers to the material on record which shows that SEAC sub-committee visited the project site on 29th February, 2014 with an object to verify compliance of the 2008 EC conditions. During such visit, it noticed non-compliance of the EC by Respondent No.9-PP but conveniently failed to record that Respondent No.9-PP had increased the project activity in terms of buildings, built-up area, etc. The report of SEAC Committee is described as cursory, casual, unscientific and against realities. It is only later that SEIAA on the basis of query/complaint of Applicant, on 3rd August, 2015 took action and in this regard proposed directions were issued under provisions of Section 5 of Environment (Protection) Act, 1986, by State Department of Environment (DOE) in August 2015 and thereafter, no follow up action (J) Application No.184/2015 9 was taken in terms of the directions. SEIAA which is competent to take independent decision and action against the violators of EC conditions and Project Proponents has failed to initiate any action. What he tries to say is that SEIAA, being specialised body, should have used its conferred power to take action rather than referring or depending on the action taken by Department of Environment. Thus, he contends that SEAC, SEIAA and DOE have jointly and severally failed to discharge its statutory function in taking appropriate legal permissible action against Respondent No.9-PP restraining such illegal activity for non-compliance thereby enabling the Respondent No.9-PP to further violate the EC mandate. He would contend that by keeping the proceedings before it, SEIAA has virtually allowed the Project Proponent to proceed with the illegal construction thereby wandering DoE direction issued on 3rd August, 2015.

11. On above set of facts, he has sought certain reliefs as recorded by us in the para supra.

12. On admission of this Application, Notice was caused to all the Respondents who are total nine in numbers. Amongst them Union of India through Ministry of Environment and Forest -1st Respondent, The Principal Secretary, Environment Department 2nd Respondent, State Level Environment Impact (J) Application No.184/2015 10 Assessment Authority 3rd Respondent, Maharashtra Pollution Control Board 3rd Respondent, Regional Officer, Maharashtra Pollution Control Board 5th Respondent, Pune Municipal Corporation 6th Respondent, City Engineer, Pune Municipal Corporation 7th Respondent, District Collector, Pune 8th Respondent, M/s. Goel Ganga Developers India Pvt. Ltd. 9th Respondent. Amongst all, initially the Respondent No.9-PP resisted the proceedings but we have noticed a very strange conduct of the Secretary of Department of Environment falling in line with the Respondent No.9-PP as could be seen from the conduct.

13. The record would show that all the Respondents have responded to the Notice in this Application as recorded by us on 23rd December, 2015. Certain observations made in the preamble of that Order at paragraph Nos.1 and 2, would itself show that this Tribunal had taken a note o6 the manner in which the Respondents reacted to initiation of the action by the Applicant. In para No 2-3 at page-

2 of the Order and the last para on the same page, we have summarised what we noticed. Ultimately being convinced that the Applicant had made out prima facie case for grant of interim relief, lest, the Respondent No.9-PP emboldened by the inaction on (J) Application No.184/2015 11 the part of Statutory Authorities as likely to proceed with the construction activity which was shown by the Applicant to be legally impermissible if restrained, orders were passed against Respondent-9 PP. We had also simultaneously directed PMC to ensure that no further construction of whatsoever nature is carried out and called for report from it regarding what is the status of construction at the site within 10 days. As is expected, Respondent No.9-PP entered contest and sought vacating the Interim Order but when confronted with certain factual aspects, made a statement that no construction activity is going on and it has stopped the construction. We feel it will be worth to record that we have taken into consideration contention urged on behalf of the Respondent No.9-PP to seek vacating of the order but we opined that let the pleadings be completed to allow all stakeholders who virtually prosecute and defend action through this Application. We also see from proceeding, considering the urgency, this Application was initially heard on merit in part. This is exactly what the Respondent No.9-PP also submitted on 16th March, 2016 persuading us to expedite the hearing.

14. We have thus heard substantially the learned Counsel for the Applicant, Respondent Nos.1 to 8 and (J) Application No.184/2015 12 the learned Senior Counsel Mr. Mishra assisted by Mr. Sachin Bhalerao for the Respondent No.9-PP.

15. We have given our careful consideration to all the legal and factual contentions urged by learned Advocates. While the learned Counsel for the Applicant relies mainly on the original EC dated 4th April, 2008 and present factual aspect showing there is marked difference in the project itself and the project has virtually changed from what it was originally conceived in terms of increase of number of buildings, plinth area, shops and other commercial activities. We have summarized the contentions of the Applicant and would like to repeat it as the same is relied upon by the Applicant.

16. Now, we need to refer to contentions of Mr. Mishra, the learned Senior Counsel for Respondent No.9-PP who in his persuasive eloquence asserted that project as conceived itself was legally permissible and during construction activity they have ensured there is absolutely no violation of any statutory regulations. He would contend that present construction activity, in terms of the FSI i.e BUA, is within the legally permissible limit and thus, refers to the numerical numbers by which the extent is measured. The affidavit filed in this case by Mr. Atul Jaiprakash Goel representing Respondent No.9-PP contains a (J) Application No.184/2015 13 statement in para-14 to the fact that EC dated 4th April, 2008 issued by MoEF was to allow construction activity comprising of the utilization of the F.S.I (Floor Space Index)/BUA, to the extent of 57,658.42 sq.mtrs., based on the conceptual plan prepared by Respondent No.9. He further states that granting of permission to utilize FSI to the extent of 57,658.42 sq.mtrs was will within the EC limits.

17. On the basis of such statement, Mr. Mishra would submit that at any stretch of imagination, the contention of the Applicant cannot be sustained because he is trying to allege violation when the constructed structure is well within sanctioned FSI/BUA of 57,658.42 sq.mtrs.

18. He would further rely on an order passed by Secretary, Department of Environment on 31st May, 2016 No.C.A.-2015/CR-6/TC-3 which is produced before this Tribunal after this case was reserved for judgment on 23rd May 2016. Relying on it, he would submit that SEIAA who had issued direction on 30th August, 2015 to stop construction activity had referred the matter to Department of Environment for considering explanation of Respondent No.9-PP and pass appropriate order. He submitted that such an exercise by DOE/SEIAA was in terms of the Order (J) Application No.184/2015 14 passed by this Tribunal on 23rd February, 2016 in M.A. No.21/2016 to the following effect: Heard. Perused record. Service of Notice is waived on behalf of MoEF&CC. Replies have been filed by Respondent Nos.2, 3, 4, 5,6, 7 &

9. Law Officer appearing on behalf of Respondent No.8 submits that reply filed by Respondent No.5 MPCB is adopted as the reply of Respondent No.8. Rejoinder dated 22nd February, 2016 to the reply of Respondent No.9 is tendered. Copies of the rejoinder have been furnished to the Respondents. M.A. No.21/2016 This Application has been moved for a mandate not to issue ex-post facto environmental clearance to Project Proponent Respondent No.9. Learned Counsel appearing on behalf of Authorities Respondent Nos.2 and 3 makes a statement that they will be dealing with the application moved by Respondent No.9 for grant of environmental clearance strictly in accordance with law. In view of the statement made, we do not wish to interfere in the process of law. Learned Counsel appearing for the Applicant submits that the Application be disposed of in terms of the statement made by the concerned Authorities Respondent Nos.2 and 3. Accordingly, this Applications stands disposed of with no order as to costs. M.A. No.21/2016 thus stands disposed of. E.A.No. 5/2016 As regards Execution Application No.5/2016, learned counsel appearing on behalf of Applicant seeks liberty to carry out amendment in the Application so as to bring into focus the violation of the interim order dated 23rd December 2015, in relation to specific building construction and remedy available under the National Green Tribunal Act, 2010, before this Tribunal. Liberty granted to the Applicant to make necessary amendment in E.A.. Amendment shall be made within a week. Copies of the amended Application shall be furnished to the learned counsel appearing on behalf of Respondents. Respondents may file replies to the amended Application within a week thereafter. Advance copies of the replies be furnished to the Applicant who may file re-joinder thereto, if any, within three (3) days thereafter. List this case for further consideration on 16th March 2016.

19. Thus he contends that this Tribunal itself had directed the SEIAA to consider request of the Respondent No.9-PP for modification of the EC and (J) Application No.184/2015 15 thus SEIAA being competent authority in that process thought fit to refer the case of the Respondent No.9-PP to Environment Department to take a decision about the violation before considering the request of the Respondent No.9-PP for modification of the EC to allow a larger construction activity.

20. He would submit that extent of 57,658.42 sq.mtrs structure cannot be described as being in excess of the permissible limit of the EC dated 4th April, 2008.

21. With reference to what transpired later, he would submit that Respondent No.9-PP having satisfied the PMC has received the Completion Certificate in respect of part of the building that itself is sufficient to establish its project is assessed as valid, permitting grant of Completion Certificate.

22. At this juncture, we would emphasise that the Applicant had seriously challenged the order passed by Secretary, Environment Department on 31st May, 2016 describing the order as a result of direct collusion between the officer concerned and Respondent No.9-PP to defeat any order that would be passed in this proceedings. He had through his Counsel sought opportunity to file an affidavit against the affidavit of the Respondent No.9-PP who wanted this Tribunal to take note of the order dated 31st May, 2016. (J) Application No.184/2015 16

23. We have perused the proceedings with reference to the relevant date on which the arguments were heard on merit and date of posting of case reserved for judgment. The application was heard on merit on 23rd May, 2016 and reserved for judgment. During such period the order dated 31st May, 2016 has been passed by the Officer referred to above. Besides, the Learned Counsel Mr. Misra on behalf of project proponent requested us to take on record the order dated 31st May, 2016 before passing the Judgment. We took notice of the said order. In these circumstances the Learned Counsel for the applicant took opportunity to file counter to the affidavit filed by the project proponent producing the order dated 31st May, 2016. It is quite evident that the officer concerned who has passed the order in question is representing the respondent no. 2 in this case. Thus, he is deemed to have knowledge of all the stages which this case has passed and the fact that the case was reserved for judgment by the Tribunal. It is in this context the order dated 31st May, 2016 passed during the period case is pending final decision generates questionable circumstances. Further, it is seen that this order i.e. 31st May, 2016 has been passed several months after the DoE issued directions to the project proponent to stop constructions activity on the basis that the project (J) Application No.184/2015 17 activity is contravening the conditions of EC dated 4th April, 2008. In these circumstances we have heard the case again on merit with reference to order passed by Principal Secretary, DoE dated 31st May, 2016 as desired by the project proponent himself.

24. We had allowed sufficient opportunity to Respondent No.9-PP and also Department of Environment and PMC represented by Mr. D.M.Gupte, learned Counsel respectively.

25. It is material to incorporate the relevant portion of the order dated 31st May, 2016 passed by Secretary DoE, Government of Maharashtra for clarity which reads thus: We also refer to the clarification issued by the MoEF, G.O.I. by amendment in EIA Notification 2006 dtd. 4-4-2011, wherein the BUA was defined. Prior to the amendment in EIA Notification 2006 dtd. 4-4-2011 there was an ambiguity in definition of BUA. The EC granted by the MoEF, GOI vide letter dtd. 4-4-2008 for construction of total BUA 57658.42 sq.m. at site was prior to clarification issued by the MoEF, GOI dtd. 4-4- 2011 and on the basis of the conceptual plan. Therefore, the same will apply prospectively and not with the retro-prospective effect. Therefore, it reveals that even though you have constructed 18 buildings at site instead of 12 buildings by changing configuration of buildings, the total BUA (i.e.FSI) constructed at site is 48617.14 sq.m. which is within E.C. limit. It also reveals from the inspection report of the Pune Municipal Corporation dtd. 2-1-2016 that the actual construction carried out at site is 99416.72 sq.m. at plot No.1 and 2 (i.e. FSI-48617.14 sq.m. + Non-FSI 50799.58 sq.m.) but the FSI constructed at site is 48617.14 sq.m. which is less than the total BUA admeasuring 57658.42 sq.m. permitted in the previous EC granted by the MoEF, GOI dtd. 4-4- 2008. Hence, it is hereby concluded that there is no case of violation as prescribed in the EIA Notification, 2006 and accordingly the Proposed Directions issued vide above referred (1) is hereby withdrawn. (J) Application No.184/2015 18

26. From the extracted portion of the order it is clear that Secretary, DOE as virtually declared the activity of the Respondent No.9-PP has wholly legal, permissible and in support thereof has virtually granted a clean chit and certified the project as of now to be well within the permissible limits. It is material to note that the officer concerned has referred to FSI and BUA being same synonym of one aspect. How far this assertion in the order of the officer is legal and factually correct. Hence it needs to be dealt with in detail for the reason, the decision as to whether the construction activity of the Respondent No.9-PP is legal or contravenes any of the environment clearance depend upon clear definition of FSI and BUA in terms of its extent. We had thus called upon PMC to file a statement explaining the distinction between the extent of area covered under BUA (built-up area). We are dismayed at the fact that neither the PMC nor the Environment Department has seriously examined what is F.S.I and BUA. Thus, we gave one more opportunity to which PMC responded through its affidavit dated 17th August, 2016 to which we shall refer.

27. The Deputy Engineer, PMC report which has been relied by Principal Secretary, DOE contains the present level of construction, the comparison of the (J) Application No.184/2015 19 F.S.I and Non F.S.I area gives startling factual information. It needs reference and as is extracted herein: PMC report. Dy. Engineer (BP) dated. 19-12-2015. PMC Report dt. 17-08-2016 Total BUA (i.e. FSI) = 48617.14 sq.m. Built-up Area Plot F.S.I. Non F.S.I 48424.66 630.55 46088.47 4858.57

28. We shall now refer to what the term Built-up area and Floor Spacing Index (F.S.I.) would mean in the domain of assessment of permissibility of the project activity with reference to the environment clearance certificate granted. It would be therefore pertinent to refer to the provisions of Development Building Rules of PMC and the project activity approved by the EC of 2008.

29. The Environment Clearance dated 4th April 2008, has clear project description which unambiguously set the project limits. The project proponent is proposing for construction of group housing project at S.No.35 to 40. Village Vadgaon Budruk, Singhad Road, Pune, Maharashtra at a cost of Rs.10,737.14 lakh. The project involves construction of 12 building with Stilt, basement plus 11 floors for 502 flats,

50 shops and 34 offices. The total plot area is 79,100.0 sq.m. Total built up area as indicated is 57,658.42 sq. m. Total water requirement will be 745 KLD and 400 KLD of waste water will be generated from the buildings which will be treated in Sewage Treatment Plant. The treated wastewater will be used for landscaping, DG set cooling and Horticulture purpose. The solid waste generated from the buildings will be 1500 kg./day and disposed as per the MSW Rules, 2000. The parking space is proposed for parking of 1072 cars. (Emphasis provided) (J) Application No.184/2015 20

30. It is manifest from the above referred EC that while granting the EC, the authority had appraised the project with certain configuration and more pertinently, the Total Built up area. There is no reference to the term FSI area i.e. floor space index area. There is no ambiguity in the contents of EC and therefore, what can be seen from the plain reading of the EC is that the EC granted is circumscribed by the project description including its configuration and the Total built up area.

31. The term built up area has been well established in the parlance of Civil Engineering and Town Planning. The MRTP Act, which regulate Regional and Town Planning in the state, authorise Municipal Corporation to have its own Rules, and PMC has notified the development control rules under the MRTP act in order to regulate the development activities in the corporation area. In order to clarify the existing position and the understanding of the terms, Built-up area and F.S.I., it would be pertinent to refer to the Development Control Rules of the PMC, Pune, 1982. Undoubtedly, both Respondent No.9-PP and PMC are required to comply with the Environment Clearance Regulations in terms of the building permissions granted by PMC to Respondent No.9-PP under the powers conferred upon PMC by the above (J) Application No.184/2015 21 said rules. The said Rules define built up area and FAR/FSI and the relevant definitions from these rules are abstracted below : 2.1.3 : Built up area Area covered immediately above the plinth level by the building or external area of upper floor whichever is more accepting the areas covered by Rule 15.4.2. 2.39 : Floor area Ratio (F.A.R.) -- The quotient obtained by dividing the total covered area (plinth area) on all floors excluding exempted areas as given in Rule No.15.4.2 by the area of the plot. Total covered area on all floors. F.A.R. = ----------------------------------------------- Plot area. Note : The term F.A.R. is synonymous with floor Space Index (F.S.I.)

32. From these definitions it is manifestly clear that the terms built up area and FSI/FAR are distinct and have different interpretation altogether. This would further negate the contention of Respondent No.9-PP that the term built up area was not clarified until the clarification issued by MoEF on 4th April, 2011. There could be ambiguity in calculation of built up area as per earlier Environment Clearance Regulations, but this cannot be stretched under any circumstances to take a plea that the built up area and FSI are synonymous and inter- changeable terminologies. We cannot accept but reject in totality the submissions made by PMC and the Respondent No.9-PP in this regard. (J) Application No.184/2015 22

33. Though, much has been claimed by Respondent No.9-PP regarding the clarificatory notification of MoEF dated 4th April 2011, wherein the term built up area has been clarified, we do not find any confusion or contradiction in definition of terms BUA and FSI. The Respondent No.9-PP is a major developer and must be well versed with these terminologies.

34. From the material referred to above, it leaves no scope for doubt that F.S.I. and BUA are two terms which apply with a distinction defining different extent of area.

35. It will shake the conscious of all concerned when we see a deliberate attempt on the part of DoE, SEAC and SEIAA to confuse the issue virtually falling in line with misleading statements of Respondent No.9-PP and Deputy Engineer, PMC. It is astonishing that both Respondent No.9-PP and Deputy Engineer, PMC refer to BUA as F.S.I. Despite such clear distinction in definitions and interpretations of BUA and FSI, they had attempted to mislead DoE, SEAC and SEIAA in believing that BUA and F.S.I are same. We expect an officer conferred with professional duty as 06 an engineer in the Department of Building Permission of PMC to be very meticulous in at least understanding the terms which make lot of difference (J) Application No.184/2015 23 to the fact of construction. We least expected 06 him as to know the distinction between BUA and FSI, as administration of Corporation would depend upon his professional advice and technical expertise to take action against the erring parties who contravene the mandate of law for safeguarding the interest of citizens which the Corporation is required to protect. We are also constrained to observe that the higher authorities of Building permission department had closed their eyes even when such incorrect affidavits are filed before the Tribunal and such misleading reports are sent to state authorities like DoE, SEAC and SEIAA.

36. Therefore, un-hesitatingly we could observe that the report dated 19th December, 2015 of the Deputy Engineer is a compromised statement to paint a wrong picture of the project firstly to suppress deviation and secondly to create ambiguity in definition of the terms of F.S.I. and BUA to help Respondent No.9-PP to obtain orders from the other authorities. This is unveiled from the affidavit filed by PMC dated 17th August, 2016 in pursuance to our Order dated 2nd August, 2016. The details mentioned therein are as follows: Built-up Area Plot F.S.I. Non F.S.I (J) Application No.184/2015 24 48424.66 630.55 46088.47 4858.57

37. We have also taken a judicial note of the fact that considering such complexity in Environment issues, MoEF had constituted Multi-disciplinary SEAC/SEIAA and had authorised it to take action against violation. SEAC and SEIAA have the necessary experience and expertise to identify violations independently by expert advice and application of mind, based on inputs from field authorities. What we observe here is that Principal Secretary of DoE just relied upon a report filed by junior most official of PMC and without any independent appraisal PS, DoE has held that construction of 18 buildings at site instead of

12 buildings, is allowed within the allowable BUA as per Environment Clearance. We do not find any environment impact appraisal or reasoning for such a finding. When openly excavation of the soil and damage to underground water is being impating the environment. No independent assessment or appraised is done.

38. We are, therefore clear in our mind that Applicant has substantiated that the original project conceived by Respondent No.9-PP had to confine to what was sanctioned under the EC dated 4th April, 2008 and any extra construction or increase in (J) Application No.184/2015 25 building, plinth commercial structures, shops and flats should have support of modified EC. As of now, since no modified EC has been granted, the extent of project activity cannot increase beyond the limit circumscribed by EC dated 4th April, 2008. Any such activity or construction beyond permissible limits cannot be saved by jugglery of words, misinterpreting against the statutory definition of F.S.I. and BUA.

39. We are further satisfied that the Principal Secretary, Environment Department who has authored the order dated 31st May, 2016 has lot to explain for the reason the ultimate declaration made by him in the order declaring construction activity of Respondent No.9-PP to be in permissible limit of F.S.I. is result of his mis-interpretation of the terms F.S.I. and BUA and reflects non-application of mind.

40. The prime issue that arises for consideration in this case is as to whether the construction activity of Respondent No.9-PP, is exceeding the sanction accorded by the EC. Could the Respondent No.9-PP proceed with construction without obtaining modified EC. The answer is obviously No.

41. For the reasons aforesaid, we answer the above issue in the negative hold that the construction activity of Respondent No.9-PP to the extent it exceeds the permissible limits as per EC cannot be saved and (J) Application No.184/2015 26 shall stop, subject to the grant of modified EC by competent authority.

42. From the extracted portion of the order dated 31st May, 2016 of Principal Secretary, Environment Department, it is seen that he has declared construction of 18 buildings on the site instead of 12 buildings is permissible which, according to him, only a changes on configuration of buildings. This opinion undoubtedly is based on his erroneous conclusion that total BUA which is nothing but F.S.I. consumed i.e. 48617.14 sq.mts which is within the EC limit as against the actual construction activity which has exceeded over 100000 sq.mtrs BUA. Hence we set aside that order/communication dated 31st May, 2016.

43. Besides, another issue which confronts us based on these violations is what should be the consequence of such violation. Un-hesitatingly, it can be held that the consequences of such contravention and illegal construction will be adverse on the environment and ultimately it will lead to several incidental causes of action. That will follow if the Respondent No.9-PP is allowed to continue the illegal activity as has been done by order dated 31st May, 2016. The complexity in environmental issues therefore requires a meticulous examination and dispassionately conclusion and finding. (J) Application No.184/2015 27

44. Apart from the legal issues, we further notice that if not illegality in the order of PS DoE in question, it is certainly impropriety because the officer is deemed to have been informed of the fact that this Tribunal is seized of the matter and has reserved the case for judgment on 23.5.2016 after giving full opportunity to Department which the officer in question represents as Respondent No.2. Hence, he cannot plead ignorance of the fact that the case was posted for judgment in the circumstances he should have allowed adjudication by the Tribunal to take final decision on the main issue about the violation of the EC conditions based on the alleged enlarged construction activity. We also do not find merit in contention of learned Sr. counsel Shri. Mishra that such an order is line with the liberty given to SEIAA by Tribunal on 23.2.2016 to deal the application of PP for expansion of project on merit because the order in question is not related to EC but a decision of the proceedings of proposed directions under Environment (Protection) Act, 1986, which were issued by department in August 2015.

45. With these findings, it is now necessary to consider the reliefs sought by the Applicant in this Application. He has sought demolition of the illegal structures and other consequential reliefs. Learned (J) Application No.184/2015 28 counsel appearing for the Applicant has strenuously argued that all these violations have been done by the repsonent-9 PP in total connivance with the authorities mainly the PMC and DoE. He has even cited a visit report of SEAC expert committee to suggest the gross inadequacy in the visit report the committee.

46. It is now a matter of record that the construction of the project in question is near completion and even the occupancy certificate is granted partially. We need to consider the fact that the project in question is primarily a residential project and many individuals have invested their money in the project for meeting need for residential accommodation by having a house in city like Pune. Any order to demolish structure would also adversely affect them. The Respondent-9 has already created 3rd party rights. Though the Respondent-9 has blatantly violated the conditions of EC, we also note the total lack of supervision and enforcement at PMC level has resulted in such illegal activity.

47. The Tribunal is expected to apart on the principles of Sustainable Development and Polluter pays principle. We are conscious of the fact that Polluter pays Principle shall not be construed as pay and pollute principle, and the payment has therefore (J) Application No.184/2015 29 to be exemplary and deterrent in order to pass a clear message that environmental compliance is supreme and the party which is non-complying the environmental standards shall be at economic disadvantage.

48. In this regard, we would like to refer to approach taken by the Honble Principal Bench of National Green Tribunal, New Delhi in Original Application No.24/2011 Samir Mehta Vrs. Union of India & Ors. Where the Bench has noted that : The Supreme Court of India, in the case of Sterlite Industries India Ltd. V. Union of India 2013 (4) SCC 575 had held that where the industry had violated the provisions of the Water (Prevention and Control of Pollution) Act, 1974 and had operated without obtaining consent, it was liable to pay damages of Rs.100 crores for the default period. The Court applied the Rule of Strict Liability but did not strictly compute the damages with exactitude. It only enforced the liability on general principle for awarding of damages for non-compliance to the law in force. In fact, any other approach would run contra to the Principle of Strict Liability. This judgment has been followed by the Tribunal in a large number of cases. Reference can be made to the cases of S.P. Muthuraman 2015 ALL (I) NGT Reporter (2) (Delhi) 170, Krishan Kant Singh V. National Ganga River Basin Authority (2014) ALL (I) NGT Reporter 3 (Delhi) 1 and M.C. Mehta V. Kamal Nath & Ors. AIR 2002 SC 1515. Thus, we are of the considered view that the determined damages of Rs.100 crores should be paid by and recovered from Respondents No.5, 7 and 11, jointly and severally while Respondent No.6 is held liable to pay Rs.5 crores as environmental compensation for dumping of the cargo in the sea and then failing to take any precautionary or preventive measures. The consignment of 60054 MT of coal has caused marine pollution and continues to be a cause and concern for environmental pollution. The Respondents are defaulting entities which have not complied with law and have adopted a most careless and reckless attitude in relation to protecting the marine environment.

49. We also refer to the judgment of Honble Principal Bench in the matter of Krishnlal Gera Vrs. (J) Application No.184/2015 30 State of Haryana (Appeal No.22 of 2015 dated 25th August 2015) wherein the Tribunal has dealt with a matter regarding construction activities without the necessary prior environmental clearance. In para 58 and 59 of the judgment after discussing the legal framework, the Tribunal has imposed environmental compensation cost of 5 % (percent) of the total cost for restoration and restitution of the environment, in addition to payment of Rs.5 crores for violating the Law and starting and completing the project without obtaining environmental clearance, on the project proponent. These directions were issued in consonance with the dictum of Honble Supreme Court. Since the Project Proponent may not be directed to demolish the structure at this stage, but, shall strictly comply with the directions that we propose to pass in the present case. The scope and ambit of such directions has to be in terms of the Act of 1986 circumscribed by the statutory jurisdiction of this Tribunal. Upon detailed discussion of the laws in force, the Tribunal in the case of S.P. Muthuraman (supra) has clearly held that such directions can be issued by the Tribunal.

50. The Principal Bench in Appeal No.7/2015 in the matter of Jalbiradari and Others Vrs. MoEF pronounced on 31st May 2016, has also considered the legal consequences in case of quashing the environmental clearance for construction project, particularly with regard to the fate accompli situation. (J) Application No.184/2015 31

16. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -The inevitable consequence could be the Tribunal has dealt with quashing of the Environmental Clearance and set the project at in or they be directed to maintain status quo as on the date of determination. The Tribunal has dealt with large number of cases filing under the category fate-accompli situation. There are large numbers of projects which have started their construction activity or other activities without even complying Environmental Clearance and the projects were largely completed and then either Environmental Clearance was granted or their cases for granting Environmental Clearance were delisted. In those cases following the principle of Sustainable Development and Polluter Pays Principal, the Tribunal imposed Environmental Compensation on the project proponent for degrading/damaging the environment for starting the project without complying with the provisions of law and for violating the orders and directions. The works of those projects were stopped and a Committee was appointed to revisit for grant/consideration of the Environmental Clearance and fresh Environmental Clearance orders were issued. Even where demolition was required the same was directed. All these cases have been decided by the larger bench of the Tribunal and clearly state the binding precedent. References can be mad made to S.P. Muthuraman v. Union of India & Ors., 2015 ALL (I) NGT REPORTER (2) (DELHI) 170; Krishan Lal Gera

v. State of Haryana & Ors., Appeal No. 22 of 2015 (pronounced on 25th August, 2015) & Forward Foundation & Ors. v State of Karnataka & Ors., O.A. No. 222 of 2014 (pronounced on 7th May, 2015). In these judgments, various judgments of the Honble Supreme Court have been considered by the Bench. The purpose and object of the law including CRZ Notification, Environmental Clearance is to strictly regulate the development so as to prevent causing of damage of the nature and ecology. The cases are not the cases of irreparable or irreversible situations. Largely, the (J) Application No.184/2015 32

90 per cent of the projects were has already been completed except some other parts of the project. There can be proper regulations on these projects, as otherwise it will only lead to colossal waste of public funds. It will result in dual disadvantage, firstly, wastage of public funds and secondly, and more importantly the demolition of the project itself would generate so much of waste and other materials that this will become a huge environmental hazard itself. The cases are not one, which are incapable of reprisal or re- appreciation. Damage to the environment and ecology to some extent has already been caused. It will be more useful to take remedial and restorative steps. They have acted in breach of the law and carried on with their activity in an unauthorized and illegal manner. - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - - - - - - - - - - - - -

51. We are also inclined to adopt the approach taken by the Bench in the interest of justice and fair play and based on the facts and circumstances of the case. The construction activity is not a prohibited activity in the subject, but a regulated activity. We also take a judicial note of the fact that the demolition of structures in question would also result in further environmental damage and generation of construction waste. Other option which could have been explored is asking the government to take over the additional construction and use it for public purpose but as noted above, already third party rights have been created, may be partially.

52. The purpose and object of the law including Environmental Clearance is to strictly regulate the (J) Application No.184/2015 33 development so as to prevent causing of damage of the environment and ecology. Though in the present case substantial damage has been caused to the environment and ecology, it will be more useful to take remedial and restorative steps.

53. The Respondent-9 is a defaulting entity which has not complied with law and has adopted a most careless and reckless attitude in relation to protecting the environment. The other Respondents, particularly the PMC and DoE have been the either the mute spectator or have not performed their statutory duties. However, we would note with appreciation that it is only MPCB that has acted on the complaints of the Applicants and have diligently taken legal actions besides bringing on record the non-compliances by Respondent-9 PP.

54. For the aforesaid reasons, the Applicant succeeds in his legal pursuit to challenge the non- compliance of EC conditions by the Respondent-9 and obtain certain directions. Hence the Application is allowed and we issue following directions:

1. The Respondent No.9-PP shall pay environmental compensation cost of Rs.100 crores or 5 % (Five percent) of the total cost of project to be assessed by SEAC whichever is less for restoration and restitution of environment damages and degradation caused by the project proponent by carrying out the construction activities without the necessary prior (J) Application No.184/2015 34 environmental clearance within a period of one month. In addition to this, it shall also pay a sum of Rs. 5 crores for contravening mandatory provision of several Environment Laws in carrying out the construction activities in addition to and exceeding limit of the available environment clearance and for not obtaining the consent from the Board.

2. In view of our finding that there has been manifest, deliberate or otherwise suppression of facts of illegality in the project activity of Respondent No.9-PP by the officer of PMC, we impose fine of Rs.5 Lakhs upon the PMC and direct Commissioner PMC to take appropriate action against the erring officers. The amount of Rs. 5 Lakh shall be paid within one month.

3. We direct the Chief Secretary, State of Maharashtra and the competent authority to take notice of the conduct of the officers concerned who have misled the Department of Environment in the matter relating to interpretation of F.S.I. and BUA in terms of which order dated 31st May, 2016 has been issued in particular the Principal Secretary, Department of Environment who has authored the order dated 31st May, 2016

4. PMC, DoE and SEIAA are directed to pay cost of Rs. 1 lakh each to the Applicant within 4 weeks.

55. The Application alongwith connected Misc. Applications and Execution Application is therefore disposed accordingly. ....,JM (Dr. Justice Jawad Rahim) ..,EM (Dr.Ajay A. Deshpande) PUNE. DATE: 27th September, 2016