Jain Housing moves Madras High Court against order to pay environmental compensation of ₹2.19 crore

Jain Housing and Constructions Limited (presently Jain Housing) has moved the Madras High Court against Tamil Nadu Pollution Control Board’s insistence on paying environmental compensation of ₹2.19 crore

Jain Housing and Constructions Limited (presently Jain Housing) has moved the Madras High Court against Tamil Nadu Pollution Control Board’s insistence on paying environmental compensation of ₹2.19 crore for having constructed 620 dwelling units as against environmental clearance granted for only 412 units in Phase I of ‘Jains Pebble Brook’ apartments on Old Mahabalipuram Road (OMR) at Thoraippakkam in Chennai.

A summer vacation Bench of Justices B. Pugalendhi and V. Lakshminarayanan heard preliminary arguments advanced on behalf of the property developer on May 25 and simply adjourned the matter to the first week of June. The judges were of the view that the remedy for the petitioner firm lies before the Supreme Court. Nevertheless, they permitted it to take its chance before the regular bench immediately after vacation.

The court was told the petitioner had obtained environmental clearance in 2005 for constructing 412 dwelling units on 51,020.61 square metres but ended up constructing 620 units within a much lesser area of 48,614.44 square metres. One of the purchasers of the dwelling units had approached the National Green Tribunal in 2018 alleging violation of the environment laws and obtained a direction to the TNPCB to initiate action.

Accordingly, the TNPCB found the property developer had failed to obtain revised environmental clearance from the State Environment Impact Assessment Authority in view of the increase in the dwelling units which, in turn, would lead to an increase in the discharge of solid as well as liquid waste. The inquiry further revealed the petitioner had also not obtained statutory consent from TNPCB and therefore it was liable to pay environmental compensation.

However, on appeal, the Tamil Nadu Pollution Control Appellate Authority on September 29, 2021, reversed the TNPCB’s December 14, 2020 order demanding ₹2.19 crore. Aggrieved over such reversal, the TNPCB moved the NGT and the latter’s southern zone bench in Chennai set aside the appellate authority’s order on April 27 this year and restored the TNPCB’s order imposing environmental compensation on the real estate firm.

Now, challenging the NGT’s order by way of a writ petition, the counsel for the petitioner firm said, the Supreme Court was seized of the issue as to whether a 2016 central notification, exempting certain projects from obtaining consent to establish from the TNPCB, would have prospective or retrospective effect. Yet, the NGT, in the present petitioner’s case had given a categorical finding that it would not have retrospective effect.

Immediately, Justice Lakshminarayanan remarked: “That is exactly why we are asking you to go to the Supreme Court.” Nevertheless, since the counsel said, the High Court too could entertain the writ petition, the judges asked him to take a chance before the regular Bench after the conclusion of the ongoing summer vacation on May 30.