M/S. Goel Ganga Developers India Pvt. Ltd. v. Union of India Through Secretary Ministry of Environment and Forests & Ors.
DEEPAK GUPTA, J. 1. Applications for intervention/
impleadment are allowed. Application for amendment of grounds of
appeal in Civil Appeal No.10854 of 2016 allowed.
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2. These matters are being decided by one judgment since they
all arise out of one original application filed by Shri Tanaji Balasaheb
Gambhire (hereinafter referred to as ‘the original applicant’) before the
National Green Tribunal (‘the NGT’ for short) being Appl ication No.
184 of 2015.
3. The original applicant filed an application before the NGT
claiming that the project proponent i.e. M/s. Goel Ganga De velopers
India Pvt. Ltd., had raised construction in violation of the Environmental
Clearance (‘EC’ for short) granted for the project and also in violation
of the various municipal laws. It was prayed that the illegal structures
be demolished; the State Level Environment Impact As sessment
Authority (SEIAA) and the Maharashtra State Pollution Control Board
be directed to initiate appropriate action against the project proponent
for violation of the Environment Impact Assessment (EIA) Notification,
2006; the Union of India be directed to take action against the SEIAA;
and lastly it was prayed that the project proponent be di rected to pay/
deposit a heavy amount of compensation in the environment relief fund.
The NGT vide its order dated 27.09.2016 allowed the application in the
following terms:
“54. For the aforesaid reasons, the Applicant succeeds in his
legal pursuit to challenge the noncompliance of EC conditions by
the Respondent-9 and obtain certain directions. Hen ce 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 prio r
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 Environmental
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 pr oject
activity of Respondent No. 9-PP by the officer of PMC, we
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
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 t he
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 31 st May, 2016 has been issued in
particular the Principal Secretary, Department of Environment
who has authored the order dated 31 st May, 2016.
4. PMC, DoE and SEIAA are directed to pay cost of Rs. 1 lakh
each to the Applicant within 4 weeks.”
4. Aggrieved by the aforesaid order of the NGT, the project
proponent filed Civil Appeal No. 10854 of 2016. The Pune Municipal
Corporation (‘PMC’ for short) also challenged the said order in so far as
it adversely affects the PMC by filing Civil Appeal No. 10901 of 2016.
5. Review application being Application No. 35 of 2016 was filed
by the original applicant before the NGT. This applicati on was partly
allowed on 08.01.2018 and direction No. 1 in the original order dated
27.09.2016 was modified and substituted as under:
“1. The Respondent No.9-PP shall pay environmental
compensation cost of Rs.190 crores or 5% (Five percent) of the
total cost of project to be assessed by SEAC, whichever is more,
for restoration and restitution of environment damage and
degradation caused by the project proponent by carrying out the
construction activities without the necessary prior environmental
clearance within a period of one month. In addition to this, i t
shall also pay a sum of Rs. 5 crores for contravening mandatory
provision of several Environment Laws in carrying out th e
construction activities in addition to and exceeding limit of the
available environment clearance and for not obtaining the consent
from the Board.”
6. Thereafter, the project proponent filed I.A. No. 8000 of 2018
for permission to amend its appeal permitting it to challenge t he order
passed in review application dated 08.01.2018, which we have allowed.
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7. Appeal being Diary No. 3911 of 2018 was filed by the original
applicant challenging the original order dated 27.09.2016 as well as the
order dated 08.01.2018 passed in review application praying that
demolition of the illegal structures be ordered and the compensation be
enhanced to Rs.500 crores.
The Factual Matrix
8. The facts briefly stated are that the project proponent purchased
79,100 sq. mtrs. or 7.91 hectare of land comprised in six Survey No s.
35, 36, 37, 38 39 and 40 in Vadgaon, Pune. These survey numbers were
amalgamated in accordance with the rules and the plot became one plot
of 79,100 sq. mtrs. From the documents placed on record it is apparent
that as per the Development Control Plan for the city of Pune, 3 roads
of the width of 36 mtrs., 30 mtrs. and 18 mtrs. bisected this plot into two
which for the sake of convenience were referred to as Plot No. 1 and
Plot No. 2. As per the Development Plan, there are certain sta tutory
reservations in addition to the roads and some land has to be left out or
reserved for schools, cultural centres, open areas etc.. The remaining
area is referred to as the ‘Balance Plot Area’ which in t his case works
out to 46,993.79 sq. mtrs.. Out of this ‘Balance Plot Area’ 15% is to be
reserved for amenity space and another 10% area is to be compulsorily
left out as open space leaving ‘Net Plot Area’ of 41,455.21 sq. mtrs..
Prima facie these calculations do not appear to be correct. However,
this will not impact the merits of the case. Be that as it may, the undisputed
fact is that FSI has to be calculated on the ‘Net Plot Area’. We may, at
this stage, point out that the aforesaid figures are based on the written
submissions submitted on behalf of the Union of India by the learned
Additional Solicitor General and these figures have not been dis puted
before us.
9. On 12.03.2007, the project proponent applied for sanction of
lay out and building proposal plan on an area of 15,141.70 sq. mtrs.,
originally depicted as Plot No. 3 and the sanctioned FSI was 15313.16
sq. mtrs.. Thereafter, on 05.09.2007, revised lay out plan was submitted
for an area measuring 28,233.23 sq. mtrs. and the sanctioned FSI was
39,526.54 sq. mtrs.. The project proponent applied for EC for the project
and in the proposal dated 27.06.2007, he had shown that he would be
erecting/constructing 12 buildings having 552 flats, 50 shops and 34
offices. The 12 buildings were to have stilts with basement and 11
floors. The total built up area was indicated as 57,658.42 sq. mtrs.. The
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
EC was granted to the project proponent on 04.04.2008. Paras 2 and 3
of the communication granting EC read as under:
“2. The project proponent is proposing for construction of group
housing project at S.No.35 to 40, village V adgaon 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 552 flats, 50 shops and 34 offices. The total
plot area is 79,100.00 sq. m. Total built up area as indicated i s
57,658.42 sq. m. Total water requirement will be 745 KLD and
400 KLD of waste water will be generated from the buildin gs
which will be treated in sewage treatment plant. The tre ated
waste water will be used for landscaping, DG set cooling a nd
Horticulture purpose. The solid waste generated fro m 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.
“3. The EAC after due consideration of the relevant
documents submitted by the project proponent and additional
clarifications furnished in response to its observa tions have
recommended the grant of environmental clearance for the project
mentioned above subject to compliance with the EMP and other
stipulated conditions. Accordingly, the Ministry hereby accords
necessary environmental clearance for the project under category
8 (a) of EIA Notification 2006 subject to the strict compliance
with the specific and general conditions mentioned below:”
10. The EC was granted subject to certain conditions. We may
refer to certain relevant conditions which read as under:
“PART A- SPECIFIC CONDITIONS
I. Construction Phase
xxx xxx xxx
v. sPermission to draw and use ground water for construct ion
work shall be obtained from competent authority prio r to
construction/operation of the project.”
“5. In the case of any change(s) in the scope of the project, the
project would require a fresh appraisal by this Ministry.”
1013
Concept of ‘Built up Area’ under the notification d ated
14.09.2006:
11. It is not disputed that the EC was granted for built up area of
57,658.42 sq. mtrs.. The main dispute is with regard to the interpretation
of the term ‘built-up area’. The case of the project proponent is that the
term ‘built up area’ is synonymous with ‘Floor Space Index’ or FSI and
that the constructed area, which is exempted from FSI area or is a non-
FSI area is not a part of the ‘built up area’. On the other hand, the
submission made by the original applicant as well as by the learned
Additional Solicitor General appearing for the Ministry of Environment,
Forest and Climate Change is that the built up area will cover all
constructed area and the concept of FSI area or non-FSI area is totally
alien to environmental laws. Learned senior counsel for the project
proponent has drawn our attention to the Development Control Rule s
for Pune Municipal Corporation, Pune, 1982 (‘DCR’ for short). Under
the DCR, no building can be constructed without grant of buildin g
permission/commencement certificate by the Pune Mun icipal
Corporation. There is a detailed procedure for obtaining the building
permission/commencement certificate wherein lay out plans , building
plans etc. have to be submitted. The main emphasis was on Rule 2.13
of the DCR, which defines built up area as follows:-
“2.13 Built-up Area – Area covered immediately above the
plinth level by the building or external area of any upper f loor
whichever is more excepting the areas covered by Rule No.
15.4.2.”
Rule 2.39 defines Floor Area Ratio as follows:-
“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.
F.A.R. = Total covered area on all floors
Plot Area
NOTE – The term F.A.R. is synonymous with Floor Space Index
(F.S.I.)”
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
Strong reliance is placed on Rule 15.4.2 which reads as under:-
“15.4.2 In addition to Rule No. 15.4.1.1 (a) (b) and (c) and 17.7.3
the following shall not be included in covered area or F.A.R. and
Built-up Area calculations.”
(a) A basement or cellar space under a building constructed on
stilts and used as parking space, and air-conditioning plant
rooms used as accessory to the principal use;
(b) Electric cabin or substation, watchman’s booth of maximum
size of 1.6 sq.m. with minimum width or diameter of 1.2 m,
pump house, garage shaft, space required for location of
fire hydrants, electric fittings and water tanks;
(c) Projections as specifically exempted under these rules.
(d) Stair case room and/or lift rooms above the top most storey,
architectural features, chimneys, elevated tanks of
dimensions as permissible under these rules.
Note:The shaft provided for lift shall be taken for covered area
calculations only on one floor upto the minimum required
as per these rules.
(e) One room admeasuring 2m x 3m on the ground floor of co-
operative housing societies or apartment owners/co-
operative societies buildings and other multistoreyed building
as office-cum-letter box room.
(f) Rockery, well and well structures, plant, nursery, wate r-
pool, swimming pool, (if uncovered) platform round a tree,
tank fountain, bench, chabutra with open top and unenclosed
sides by walls, ramps, compound wall, gate, slide, swing,
overhead water tank on top buildings;
(g) Deleted.
(h) Sanitary block subject to provision of rules no. 15.4.1 (a)
and Built-up area not more than 4 sq. m.”
12. The contention of learned senior counsel appearing for the
project proponent is that while calculating the bui lt up area the
constructions mentioned in Rules 15.4.1.1 (a), (b) and (c) and Rule 17.7.3
in addition to the areas specifically exempted under Rule 15.4.2 are to
1015
be excluded. He submits that if the built up area is calculated in
accordance with the DCR then the project proponent has till d ate not
constructed the built up area of 57,658.42 sq. mtrs., which it was permitted
to construct under the EC granted to it on 04.04.2008. On the oth er
hand, the stand of the Union of India and the original applicant is that
built up area means all area which is covered regardless of the area
being FSI or non FSI in terms of the EIA Notification of 200 6. The
Building/Construction projects are covered by Item No. 8 of the Schedule
to the EIA Notification dated 14.09.2006. Construction of a proj ect
which is covered under the schedule can be commenced only after
obtaining EC in terms of Para 2 of the said notification . The schedule
itself categorises the various projects and activities into two categories
being ‘Category A’ and ‘Category B’. ‘Category A’ project s require
clearance by the Central Government in the Ministry of Environment,
Forest and Climate Change on the recommendation of the Expert
Appraisal Committee to be constituted by the Central Go vernment
whereas those activities which form ‘Category B’ of th e schedule
including modernization and expansion of such projects require EC from
the State/Union Territory Environment Impact Assessment Aut hority
(SEIAA) and such authority is required to base its deci sion on the
recommendation of the State/Union Territory Level Expert Ap praisal
Committee (SEAC). There is further division of ‘Category B’ into B1
and B2. B1 projects require Environmental Impact Assessment (EIA)
report to be prepared and scoping to be done whereas B2 pr ojects do
not require any Environmental Impact Assessment report. Item No. 8
of the Schedule, with which we are concerned, reads as follows:
(1) (2) (3) (4) (5)
8 Building/Construction projects/Area
Development projects and Townships
8(a) Building and
Construction
projects
> 20000 sq.
mtrs. And
<1,50,000 sq.
mtrs. Of built-
up area#
#(built up area for
covered
construction; in the
case of facilities
open to the sky, it
will be the activity
area)
8(b) Townships
and Area
Developmen
t projects
Covering an
area > 50 ha
and or built
up area
>1,50,000 sq.
mtrs. ++
++
All projects
under Item 8(b)
shall be appraised
as Category B1.
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
13. From a bare perusal of the two hash tags (#) in Column 4 and
5 of Item 8(a), it is apparent that what is shown under Col umn 5 is
actually a continuation of Column 4 and basically it describes or defines
‘built up area’ to mean covered construction and if the facilities are open
to the sky, it will be taken to be the activity area. This by itself clearly
shows that under the notification of 2006, all constructed area, which is
covered and not open to the sky has to be treated as ‘bui lt up area’.
There is no exception for non-FSI area.
14. Indeed, the concept of FSI or non-FSI has no concern or
connection with grant of EC. The same may be relevant for the purposes
of building plans under municipal laws and regulations but it has no linkage
or connectivity with the grant of EC. When EC is to be gra nted, the
authority which has to grant such clearance is only required to ens ure
that the project does not violate environmental norms. While projects
and activities, as mentioned in the notification, may be allowed to go on,
the authority while granting permission should ensure that the adverse
impact on the environment is kept to the minimum. Therefore, the authority
granting EC may lay down conditions which the project proponent must
comply with. While doing so, such authority is not concerned whether
the area to be constructed is FSI area or non-FSI area. Both will have
an equally deleterious effect on the environment. Construction implies
usage of a lot of materials like sand, gravel, steel, glass, marble etc., all
of which will impact the environment. Merely because under the municipal
laws some of this construction is excluded while calculating the FSI is
no ground to exclude it while granting the EC. Therefore, when EC is
granted for a particular construction it includes both FSI an d non-FSI
areas. As far as environmental laws are concerned, all covered
construction, which is not open to the sky is to be treated as built up area
in terms of the EIA Notification dated 14.09.2006.
Notification of 04.04.2011
15. Our attention has been drawn to the notificatio n dated
04.04.2011 issued by the Ministry of Environment and Forests. By means
of this notification, the words of Column 5 against Item 8(a) have been
replaced and substituted as under:
“The built up area for the purpose of this Notification is defined
as “the built up or covered area on all the floors put tog ether
including basement(s) and other service areas, whic h are
proposed in the building/construction projects”.”
1017
This notification clearly defines built up area as all constructed area
including basement and service areas without any exception.
16. Learned senior counsel appearing for the project proponent
has submitted that this notification is only prospective in nature and,
therefore, will not affect the notification of 2006. On the other hand, it
has been submitted by the original applicant that this is only a clarificatory
notification and as such it will come into force with effect from 2006. In
our opinion, it is not at all necessary to decide whether this notification is
clarificatory or is in substitution of the original notification of 2006. We
say this because as held by us above, there is no ambiguity with regard
to the definition of ‘built up area’ even under the notification of 2006 and
it covers all constructed area not open to the sky. The noti fication of
2011 only provides that the built up area or covered area shall be the
area of all floors put together including basement(s) and other service
areas. We may again re-emphasize that this definit ion also is in
consonance with the concept of grant of EC for construction as explained
above and it is obvious that the concept of FSI or non-FSI area is alien to
environmental laws.
Clarification dated 07.07.2017
17.Strong reliance has been placed by the project propo nent on
the office memorandum dated 07.07.2017 issued by Dr. Ashish Kumar,
Joint Director, Ministry of Environment, Forest and Climate Change.
The said office memorandum reads as follows:-
F.No. 22-35/2017-IA.III
Government of India
Ministry of Environment, Forest and Climate Change
(Impact Assessment Division)
******
Indira Paryavaran Bhawan
Jor Bag Road, Aliganj,
New Delhi-110 003
Dated 7 th July, 2017
OFFICE MEMORANDUM
Sub: Clarification on the date of applicability of
notification S.O.(E) 695 dated 04.04.2011 issued by
MoEF & CC defining ‘Built Up Area’ of the project
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
The Ministry is in receipt of a reference dated 03.04.2017
from Confederation of Real Estate Developers Association of
India (CREDAI) seeking clarification on above mentioned
subject. The CREDAI has requested that the definition of Built
Up Area (BUA) given vide notification S.O.695(E) da ted
04.04.2011 should have prospective effect.
2. The matter has been examined in the Ministry. The BUA
defined in the notification S.O. 1533 (E) dated 14 th September,
2006 mentions at Item 8 (a) columns 4 and 5 “built up area for
covered construction, in the case of facilities open to sky, it will
be the activity area”.
3. The Ministry has further defined BUA vide its notification
S.O.695 (E) dated 04.04.2011 which reads as, “the built up or
covered area on all the floors put together including its basement
and other service areas, which are proposed in the building or
construction project.”
4. The definition provided in the Ministry’s notification will have
its effect from the prospective date of the notification only. The
projects which are not covered in the period of above notifications
should be assessed as per the definition of built up area provided
in the building bye-laws or Development Control Regulation
(DCR) of the local authorities in the States.
5. This issues with approval of Competent Authority.
Sd/-
(Dr. Ashish Kumar)
Joint Director
Ph:011-24695474
Email:ashish.k@nic.in
All States/UTs/SIEAAs/MoEF & CC Divisions
It is urged on the basis of the aforesaid memorandum that p rior to the
notification dated 04.04.2011, the built up area had to be calculated and
assessed as per the building bye-laws or the Developme nt Control
Regulations of the local authorities in the States. On behalf of the original
applicant it has been urged that this memorandum is meaningles s and
that it has been issued when the matter was pending before the NGT, at
1019
the instance of one of the Directors of the project proponent, Shri Atul
Goel, who was Joint Secretary of Confederation of R eal Estate
Developers Association of India (CREDAI), Pune.
18. Without going into this aspect of the matter, we are clearly of
the view that such an office memorandum could not and should not have
been issued. The notification dated 14.09.2006 is a statutory notification
issued in terms of Rule 5(3) of the Environment (Protection) Rules, 1986
which provides that before such a notification is issued t he Central
Government has to give notice of its intention of issuing a notification
and objections to the same are invited. No doubt the Central Government
is empowered in public interest to dispense with the requirement of notice
but this obviously has to be done in exceptional cases. The notification
dated 14.09.2006 was issued by the Central Government and published
in the gazette after inviting objections from the pu blic. The first
clarification with regard to this notification was issued on 04.04.2011 to
which we have adverted above. These two decisions of the Central
Government which were notified as per the provisions of law could not
have been set at naught by the Joint Director even if it was issued with
the approval of a higher authority. We are of the view that since such
decision has not been notified in the gazette the statutor y notification
dated 14.09.2006 and its subsequent clarification dated 04.04.2011 could
not have been virtually set aside by this office memorandum.
19. We are also of the view that the so called office memorandum
is not at all clarificatory in nature. As held by us above the notification of
2006 with regard to ‘built up area’ was absolutely clear and needed no
clarification. We fail to understand how the concept of built up area as
understood in the building bye-laws or DCR could be introduced into the
notification of 2006 by this office memorandum which virtually made
the notification of 2006 totally redundant. Therefore, we quash the office
memorandum dated 07.07.2017.
20. This is not the first time that we have noticed such clarificatory
communications being issued by the officials of the Ministry of
Environment, Forest and Climate Change, which virtually have the effect
of nullifying the statutory provisions and notifications. We have adverted
to some of these communications in our judgment in Common Cause
vs. Union of India 1. We expect the officials of the Ministry of
1 (2017) 9 SCC 499
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
Environment, Forest and Climate Change to take a stand which prevents
the environment and ecology from being damaged, rather than issuing
clarifications which actually help the project proponents to flout the law
and harm the environment.
21. In view of the above, we are clearly of the view that the EC
granted to the project proponent on 04.04.2008 was for constructing a
total built up area of 57,658.42 sq.mtrs. and this would include all covered
construction not open to the sky. No artificial division on the basis of
FSI and non-FSI area can be made. Therefore, the NGT w as fully
justified in coming to the conclusion that the construction raised by the
project proponent was in total violation of the EC granted to it.
Environmental Clearance dated 20.11.2017
22. The project proponent has drawn our attention to the EC for
expansion of the project in question granted to it by the Sta te Level
Environment Impact Assessment Authority (SEIAA) on 20.11.2017.
We may note that this clearance indicates that the existing construction
comprises of 738 flats and 115 shops which have been completed, 69
flats and 2 shops which are under construction, meaning thereby that
807 flats and 117 shops are already in existence and in addition thereto
454 more flats and cultural centre are sought to be constr ucted. This
will take the total number of flats to 1261 and number of shops to 117.
We may also notice that the SEIAA has laid down general conditions for
pre-construction phase and the first condition is as follows :-
“(1) This environmental clearance (EC) is issued for total
built up area of 147219.45 m 2 as approved by local planning
authority. It is noted that the total proposed construction area is
147219.45 m 2 which includes the area of previous EC (dated
04.04.2008) 57,658.42 m 2 and the proposed expansion area of
89,561.03 sq.m. However the above area of 147219.45 sq.m. is
notional as the NON FSI area component of the previous EC is
not included in 1,47,219.45 m 2. After considering the NON FSI
area of the previous EC the total built up area bec omes
1,81,230.94 m 2. SEIAA has also taken note of the clarification
issued by MOEF and CC vide office memorandum dated 7 th
July, 2017, stating the definition of built up area will be assessed
as per the building bye-laws or DCR of the local authorities in
the states.”
1021
The aforementioned condition itself clearly shows that the non-FSI area
constructed by the project proponent under first EC of 04.04.2008 has
not been taken into consideration. The project proponent has raised
construction in Plot No. 1 of an FSI area measuring 48,424.66 sq. mtrs.,
and non-FSI area measuring 46,088.47 sq. mtrs.. Therefore, the t otal
construction raised in Plot No. 1 is 94,513.13 sq. mtrs.. In Plot No. 2 the
construction raised on an FSI area is 630.55 sq. mtrs. and on the non-
FSI area is 4,858.57 sq. mtrs. and, therefore, the total construction already
raised in Plot No. 2 is 5,489.12 sq. mtrs.. The total construction raised
by the project proponent is 1,00,002.25 sq. mtrs. against the built up area
of 57,658.42 sq. mtrs. mentioned in the EC of 04.04.2008. This could
not have been ignored by the SEIAA.
23. In case the total construction raised by the project proponent
is taken as 1,00,002.25 sq. mtrs. and if the area o f the proposed
construction is added then the project will fall in B1 category and, therefore,
the SEIAA had no authority to grant EC by treating the proj ect as
falling under Category B2. Furthermore, the EC dated 20.11.2017 is
also illegal as the same has been granted on the presumption of t he
order dated 31.05.2016 passed by the Principal Secretary, Environment
Department, State of Maharashtra holding that the construction of 18
buildings instead of 12 buildings is permissible. The EC completely lost
sight of the fact that the order dated 31.05.2016 was quashed and s et
aside by the NGT in its order dated 27.09.2016. We may note that the
official who passed the order on 31.05.2016 was the same official, who
held the office of Member Secretary of SEIAA, which granted
environmental clearance on 20.11.2017. Therefore, the EC dated
20.11.2017 was beyond the authority of SEIAA and was granted under
a totally false assumption and the same is therefore quash ed and set
aside.
Allegations made by the original applicant against various officials
24 . The NGT in its order dated 27.09.2016, has found that there
was suppression of facts by the officers of PMC. The NGT also directed
the Chief Secretary to the State of Maharashtra to take notice of the
conduct of the officers who were misleading the Dep artment of
Environment. Costs were imposed on the PMC, Departm ent of
Environment and the SEIAA. This has been challenged before us by
the PMC.
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
25. The original applicant both in his original application filed before
the NGT and in appeal filed before us as well as in other proceedings
has made serious allegations against individual officers of the PMC as
well as the SEIAA and specially the Principal Secretary, Environment
Department, Govt. of Maharashtra. However, for reasons best known
to the original applicant none of these individuals has been made a party
in personal capacity in these proceedings. The law is well settled that
no person can be condemned unheard. It would, therefore, not be fair
on our part, to deal with allegations made against individuals who are not
parties to the petition and who have had no chance to reply to the
allegations levelled against them. Therefore, we refrain from commenting
on the conduct of the officials in their individual capacity.
26. However, as far as their official capacity is conc erned, we
are of the view that the NGT was fully justified in coming to the conclusion
that certain officials of PMC were going out of their way to help the
project proponent and we, therefore, uphold the directions given by the
NGT in its order dated 27.09.2016 in this regard. In view of what we
have discussed above, it is more than apparent that despite notifications
of 2006 and 2011 being clear and unambiguous, the officials of P MC
have given an interpretation which was tailor-made to suit the project
proponent. This was being done even before the cla rification of
07.07.2017 was issued. This clearly indicates that some officials of the
PMC were espousing the case of the project proponent at the cost of
the environment.
27. We may also observe that prima facie we are of the view
that the Principal Secretary, Environment Departmen t, Govt. of
Maharashtra has not acted in a fair and transparent manner. The
allegations made by the original applicant cannot be lightly brushed aside.
In the original order dated 27.09.2016, the NGT held as follows :-
“42. From the extracted portion of the order dated 31 st 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
1023
exceeded over 100000 sq.mtrs BUA. Hence we set aside that
order/communication dated 31 st May, 2016.”
The official holding the post of Principal Secretary must have been aware
of these directions because he was a party to the proc eedings before
the NGT. Despite that, while granting fresh EC on 20.11.2017, t his
official noticed that reference to the Environment Depar tment for
verification of files was withdrawn vide letter dated 31.05.2016 and the
matter has been considered afresh. When the letter dated 31.05.20 16
had been quashed the obvious result would be that action had to be
taken in accordance with the earlier directions in the 27 th meeting of
SEAC III (Non-MMR) held from 10 th to 13 th March, 2015 and the 87 th
meeting of SEIAA held on 10 th to 12 th August, 2015. This was not done.
His actions need to be looked into and, therefore, we uphold the direction
given by the NGT directing the Chief Secretary to t he State of
Maharashtra to take notice of the conduct of the concerned officers.
We further direct the Chief Secretary to file detailed report in respect of
the conduct of the then Principal Secretary, Department of Environment
to the NGT within 3 months which will thereafter pass appr opriate
directions in the matter.
Challenge to the order dated 08.01.2018 passed in R eview
Application No.35 of 2016:
28. This order has been challenged both by the project proponent
by amending the appeal and by the original applicant by filing a separate
appeal.
29. Section 19(4)(f) of the National Green Tribunal Act, 2010
provides that the Tribunal shall have the same powers as are vested in
Civil Courts while trying a suit in respect of matters relating to review of
its decisions. Therefore, the power of review vested with t he NGT is
akin to the power vested with the Civil Court. As such, the p rinciples
which govern the exercise of review jurisdiction before a C ivil Court
will apply with equal force to the NGT.
30. Rule 22(2) of the National Green Tribunal (Practices and
Procedure) Rules, 2011 provides that a review application shall ordinarily
be heard by the Tribunal at the same place of sitting which has passed
the order unless the Chairperson may, for reasons to be rec orded in
writing, direct it to be heard by the Tribunal sitting at any other place.
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
Sub-rule(3) of Rule 22 provides that ordinarily review application shall
be disposed of by circulation.
31. Since the powers of review which the NGT exercises a re
akin to those of a Civil Court it would be pertinent to refer to relevant
portions of Order XLVII of Civil Procedure Code, 1908, which read
as follows :-
“1. Application for review of judgment.- (1) Any person
considering himself aggrieved—(a) by a decree or order f rom
which an appeal is allowed, but from which no appeal has been
preferred,(b) by a decree or order from which no appeal is allowed,
or(c) by a decision on a reference from a Court of Small
Causes,and who, from the discovery of new and important matter
or evidence which, after the exercise of due diligence w as not
within his knowledge or could not be produced by him at the
time when the decree was passed or order made, or on account
of some mistake or error apparent on the face of the record, or
for any other sufficient reason, desires to obtain a review of the
decree passed or order made against him, may apply for a review
of judgment to the Court which passed the decree or made the
order.(2) A party who is not appealing from a decree or order
may apply for a review of judgment notwithstanding the pendency
of an appeal by some other party except where the ground of
such appeal is common to the applicant and the appellant, or
when, being respondent, he can present to the Appellate Court
the case on which he applies for the review.
xxx xxx xxx
5. Application for review in court consisting of two or more
Judges.- Where the Judge or Judges, or any one of the Judges,
who passed the decree or made the order, a review of which is
applied for, continues or continue attached to the court at the
time when the application for a review is presented, and is not or
are not precluded by absence or other cause for a period of six
months next after the application from considering the decree or
order to which the application refers, such Judge or Judges or
any of them shall hear the application, and no other Judge or
Judges of the Court shall hear the same.”
1025
32. The project proponent has urged various grounds to challenge
the order passed in the review application. The first ground is that whereas
the original order was passed by a Bench comprising of Dr. J ustice
Jawad Rahim and Dr. Ajay A. Deshpande, the review application was
heard and decided by a Bench comprising of Justice U.D. Salvi and Dr.
Nagin Nanda. It has been urged that Dr. Justice Jawad Rahim continues
to be a Judicial Member of the NGT and, in fact, was sitti ng in the
Western Bench at Pune on 08.01.2018 when the impugned judgment in
review was pronounced by the NGT.
33. We are clearly of the view that a review petition should
normally be heard by the same Bench which originally decided the matter.
A review petition should not be heard by any other Bench unless it is
impossible or totally impracticable for the earlier Bench to hear the matter.
In a review petition, like in the present case, where the review petitioner
contends that certain arguments raised by him have not been considered
then it is only the judges who originally heard the matter who can decide
whether such point was urged or not. In the present case t he review
application was based mainly on the contention that the affidavit dated
18.05.2016 was not taken into consideration by the Bench.
34. It is well known that parties raise various contentions in their
pleadings or in their evidence. On many occasions when arguments are
heard many of the pleas are not urged. Any judicial authority including
the NGT which is presided over by a judicial member w ho may be a
retired judge of this Court or of a High Court is expected to deal with all
contentions raised before it. There is a presumption that judicial authorities
must have dealt with all the contentions raised before t hem. If a party
urges that some of the contentions urged by it have not been taken into
consideration then it has to file a review application and it is but obvious
that such review application should be heard by the same Bench which
had originally heard the matter.
35. Sub-rule (3) of Rule 22 of the National Green T ribunal
(Practices and Procedure) Rules, 2011 clearly lays down that a review
application shall be disposed of by circulation. If the review application
is to be disposed of by circulation then there is no problem in the matter
being circulated before the very same Bench which had ear lier heard
the matter. This can be done even at a place which may be dif ferent
from the original place of hearing. It is only if the Bench decides to give
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
oral hearing in the review application and notice is issued to the opposite
party that sub-rule(2) of Rule 22 will come into operation. According to
sub-rule(2) the matter should ordinarily be heard at the same place of
sitting where it was originally decided. However, this is not a mandatory
direction because sub-rule(2) itself contemplates that the matter shall
‘ordinarily’ be heard at the same place. In tribunals like the NGT where
members may be transferred from one Bench to another or may be
attending a Bench on circuit then problems can sometimes arise. These
issues can be easily resolved by resorting to the latest technology and if
necessary the arguments in such cases can be heard by video
conferencing. The normal rule that the same Bench should hear the
review application should not be disturbed unless it is virtually impossible
for the original Bench to hear the matter or the members of the Bench
themselves opt not to hear the matter.
36. In this behalf, we must remind ourselves that the powe r of
review is a power to be sparingly used. As pithily put by Justice V. R.
Krishna Iyer, J., “A plea for review, unless the first judicial view is
manifestly distorted, is like asking for the moon” 2. The power of review
is not like appellate power. It is to be exercised only when there is an
error apparent on the face of the record. Therefore, judicial discipline
requires that a review application should be heard by the same Bench.
Otherwise, it will become an intra court appeal to another Bench before
the same court or tribunal. This would totally undermine judicial discipline
and judicial consistency.
37.We may refer to the judgment of this Court in Malthesh Gudda
Pooja vs. State of Karnataka and Ors . 3. In that case a writ appeal
was disposed of by a Division Bench comprising of Hon. V. Gopa la
Gowda and L. Narayana Swamy, JJ., at the Dharwad Circuit Bench of
the Karnataka High Court. Thereafter, a review petition was filed before
a Bench comprising of Hon. K. Sreedhar Rao and Ravi Malimath, JJ..
An objection was raised that the review petition should be heard by the
same judges who had originally heard the matter but this objection was
overruled and the review petition was allowed and the appeal was ordered
to be listed afresh before the Division Bench. This appea l was listed
before the Dharwad Circuit Bench consisting of Hon. D.V. Shailendra
Kumar and N. Ananda, JJ.. This Bench held that the order of rev iew
2 (1980) 2 SCC 167
3 (2011) 15 SCC 330
1027
passed was a nullity since the judges who had heard the review should
not have heard the same especially when the judges of the original Bench
were available. The matter came to this Court and this C ourt after
referring to Order XLVII Rule 5 of CPC and Rule 5 of High Court of
Karnataka Rules, 1959 and taking note of the fact that the Chief Justice
of the Karnataka High Court had passed an order that the review petition
be listed as per roster held as follows :-
“18. Order 47 Rule 5 of the Code and Chapter 3 Rule 5 of the
High Court Rules require, and in fact mandate that if the Judges
who made the order in regard to which review is sought continue
to be the Judges of the Court, they should hear the application
for review and not any other Judges unless precluded by death,
retirement or absence from the Court for a period of six months
from the date of the application. An application for review is not
an appeal or a revision to a superior court but a request t o the
same court to recall or reconsider its decision on the limi ted
grounds prescribed for review. The reason for requiring the same
Judges to hear the application for review is simple. Judges who
decided the matter would have heard it at length, applied their
mind and would know best, the facts and legal position in the
context of which the decision was rendered. They will be able to
appreciate the point in issue, when the grounds for review a re
raised. If the matter should go before another Bench, the Judges
constituting that Bench will be looking at the matter for the first
time and will have to familiarise themselves about the entire case
to know whether the grounds for review exist. Further, when it
goes before some other Bench, there is always a chance t hat
the members of the new Bench may be influenced by their own
perspectives, which need not necessarily be that of the B ench
which decided the case.
19. Benjamin Cardozo’s celebrated statement in The Nature of
Judicial Process , (pp. 12-13) is relevant in this context:
“There is in each of us a stream of tendency, whether you
choose to call it philosophy or not, which gives coherence t o
thought and action. Judges cannot escape that current any more
than other mortals. All their lives, forces which they do not
recognise and cannot name, have been tugging at them—inherited
instincts, traditional beliefs, acquired convictions; … In this mental
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
background every problem finds its setting. We may try to see
things as objectively as we please. Nonetheless, we can never
see them with any eye except our own.”
20. Necessarily therefore, when a Bench other than the Bench
which rendered the judgment, is required to consider an application
for review, there is every likelihood of some tendency on the
part of a different Bench to look at the matter slightly differently
from the manner in which the authors of the judgment looked at
it. Therefore the rule of consistency and finality of decisio ns,
makes it necessary that subject to circumstances which ma y
make it impossible or impractical for the original Bench to hear
it, the review applications should be considered by the Judge or
Judges who heard and decided the matter or if one of them is
not available, at least by a Bench consisting of the other Judge.
It is only where both Judges are not available (due to the reasons
mentioned above) the applications for review will have to be
placed before some other Bench as there is no alternative. But
when the Judges or at least one of them, who rendered th e
judgment, continues to be members or member of the court and
available to perform normal duties, all efforts should be made to
place it before them. The said requirement should not be routinely
dispensed with.”
38. A perusal of the above judgment leaves no manner of doubt
that this Court has held that in terms of Order XLVII Rule 5 of CPC, a
review should normally be heard by the same Bench which passed the
original order. We may reiterate the reasons given by this Court. These
are :-
1) The judges who heard the matter originally have applied their mind
and would know best the facts and legal position;
2) They will be in the best position to appreciate the m atter in issue
when a review is filed;
3) If the matter goes before another Bench that Bench will ha ve to
virtually hear the matter afresh;
4) Most importantly, when the matter goes to a new Bench the members
of the new Bench may go by their own perspective and philosophy which
may be totally different to that of the Bench which originally heard the
matter.
1029
We may again re-emphasize that judicial discipline, judicial traditions
and consistency in pronouncements require that the Bench which heard
the matter originally should hear the review petition unless it is virtually
impractical for the original Bench to hear the matter , or where the
members of the original Bench recuse.
39. Another ground raised is that the statutory appeal was already
pending in this Court against the original order when the review application
was taken up for hearing. It is contended, on the basis of Order XLVII
Rule 1(2) of CPC, that review application should not have been taken up
for hearing because the original applicant could have before this Court
taken up all the points which he had taken in his review application.
It is also contended that this is not a case where there is an error apparent
on record and as such the power of review could not have been exercised.
As far as the facts of this case are concerned we are clearly of the view
that the original applicant could have raised all issues which he raised in
review application even by filing a counter affidavit in the appeal filed by
the project proponent or by challenging the original order in this Court as
he has done now. In this context, once this Court was seized of the
matter and all issues were being urged, the NGT shoul d not have
proceeded to hear the review application.
40. We may add that on 21.12.2016, the review application itself
was listed before the Bench of Dr. Justice Jawad Rahim and Dr. Ajay
A. Deshpande, which adjourned the matter to 25.01.2017 to hear it
regarding maintainability of the review application in view of the statutory
appeal provided under the National Green Tribunal Act, 2010. However,
the matter got listed before the other Bench and on 25.07.2017, the said
Bench considered this objection raised by the project proponent in terms
of Order XLVII Rule 1 of the CPC and the Bench held as follows:
“Having perused the record, we find that the Appellant is seeking
quashing of the order of compensation in totality and the Review
Applicant is seeking enhancement of the compensation granted
by the Tribunal. We do not see any commonality in the grounds
resorted to by the Applicant and Appellant in the said Appeal.
Exception to Sub-clause 2 of Order 47 Rule 1 of Code of Civil
Procedure, therefore, does not come to the help of Respondent
No.9. We are, therefore, of the considered opinion that t he
Review Application is maintainable. Plea of non-maintainability
of the Review Application is rejected.”
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
41. We are of the view that the aforesaid finding is inco rrect.
The project proponent had not only challenged the original order of the
NGT on the ground that he had not violated the EC but also on t he
ground that the damages awarded were highly excessive. Ther efore,
the question that what should be the extent of damages was specifically
before this Court. We are therefore, clearly of the opinion that the
Bench hearing the review application erred in holding that the review
application was maintainable despite the appeal pending before this Court.
42. We may also note that the Bench which heard the review has
rejected all other grounds of review mainly on the ground that there is no
error apparent on the face of the record but has only dealt with the issue
of enhancement of damages to be imposed on the basis of ‘C arbon
Footprint’ relying on the affidavit dated 18.05.2016. The Bench noted
that this affidavit had not been taken into consideration by the earlier
Bench. How could the latter Bench hearing the review application know
whether any reference was made to this affidavit at the time of original
hearing or not? In fact, the project proponent urges t hat this affidavit
was never filed on 18.05.2016.
43. Here, it would be pertinent to mention that according to the
original applicant he was given oral permission by the Bench to file such
an affidavit on 23.02.2016. We have perused the order dated 23.02.2016
and find that it makes no mention of any such request being mad e. If
there is no such request then the question of issuing an oral direction to
file such an affidavit does not arise. We may also add that after
23.02.2016, the matter was listed on numerous occasions i.e. 16.03.2016,
05.04.2016, 18.04.2016, 22.04.2016, 02.05.2016 and 05.05.2016 before
the NGT. In none of the orders there is any reference to Carbon Footprint
or to any affidavit to be filed by the original applicant. If an oral permission
had been given, obviously the original applicant would have either filed
an application or would have made a request that he wants to file such
an affidavit.
44. The affidavit in question is dated 18.05.2016 and it is alleged
that it was filed on 18.05.2016. The matter was listed for hearing on
19.05.2016 on which date also there is no reference to any such affidavit.
It would be pertinent to note that in between the project proponent had
filed an M.A. No. 389 of 2016 before the Principal Bench stating that an
interim order dated 23.12.2015 had been passed against it and the matter
was not being heard and, therefore, it may be heard by a Bench presided
1031
over by Dr. Justice Jawad Rahim, who apparently was holding Court in
the Pune Bench at that time and the Principal Bench allowed the same
on 02.05.2016 directing that the matter be listed before the Bench presided
over by Dr. Justice Jawad Rahim. On 19.05.2016, the original applicant
sought time stating that he had filed review application against the order
dated 02.05.2016 before the Principal Bench praying that the ma tter
should be heard by the earlier Bench presided over by Justice U.D.
Salvi and, therefore, the matter could not be heard by Dr. Justice Jawad
Rahim on that day and was further adjourned to 23.05.2016. There is
no reference to Carbon Footprint in the order dated 19.05.2016. On
23.05.2016, the matter was heard by the Bench presided over by D r.
Justice Jawad Rahim and the orders reserved. In this order also there is
no reference to the affidavit with regard to Carbon Footprin t. If the
filing of the affidavit would have been brought to the notice of the Bench,
it would have recorded in the order that some fresh affidavit had been
filed. Subsequently, the project proponent, who is the contesting
respondent, filed an application on 20.07.2016 prayin g that in the
meantime he had obtained permission of the Environment Department
and the SEIAA to which we have adverted hereinabove.
45. The original applicant sought time to file counter affida vit.
The matter was adjourned to 28.07.2016 for re-hearing deleting the same
from reserved list since there were subsequent develo pments. On
28.07.2016 the matter was got adjourned to 02.08.2016 on which date
some execution application for implementation of the interim orders was
taken up and direction was issued to the PMC. The matter wa s again
taken up on 08.08.2016, 19.08.2016 and 24.08.2016 when the hearing
was closed and judgment was pronounced through video conferencing
on 27.09.2016. In none of these orders any mention was made for
Carbon Footprint or to the affidavit on the basis of which t he review
application was filed. On 23.05.2016 the project proponent filed reply to
the affidavit dated 18.05.2016 filed by the original applicant in which
they raised objections that such affidavit was not filed on 18.05.20 16
and the copy of the same was handed over to them on 20.05.2016 and
the original applicant had no permission to file such an affida vit. All
these disputed issues as to whether such an affidavit was filed with the
permission of the Court or it was referred to in the first hearing or in the
second hearing could only be decided by the Bench which had heard the
matter on 23.05.2016 or on 24.08.2016 on which dates the original
application was reserved for orders.
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
46. We are of the considered view that the review applicati on
should have been heard by a Bench headed by Dr. Justice Jawad Rahim
who was admittedly available and in fact continues to be a member of
the NGT. Therefore, we are constrained to set aside the or der passed
in Review Application No.35 of 2016 dated 08.01.2018
Is Demolition the only answer ?:
47. The next issue which arises is that what we should do with
the construction. A large number of flats are already oc cupied and a
large number of persons have paid money for occupying these flats.
Learned counsel appearing for those persons who have purchased the
flats urged that the flats should not be demolished otherwise they shall
be put to great monetary loss. As pointed out above now there are 807
flats and 117 shops which are either constructed or under construction.
These flats are 1, 1.5 and 2 BHK flats and small shops and offices. The
project proponent has already taken money from these pers ons and a
large number of flats and shops have already been occupied and even
where the remaining flats and shops are not occupied, persons belonging
to the middle class have invested their life’s earnings in this project.
Keeping in view the interest of these third parties who were not parties
before the NGT, we are of the view that in the peculia r facts and
circumstances of the case, demolition is not the answer. This would put
innocent people at loss. Normally, this Court is loathe to legalize illegal
constructions but in the present case we have no option but to do so.
48. We hasten to clarify that the project proponent cannot be
permitted to build any more flats. What we are permitting him to do is to
only complete construction of 807 flats, 117 shops/offices and cultural
centre including the club house. We make it clear that he shall not be
allowed to build the two buildings in which he was to construct 454
tenements, and will obviously have to return the money with interest at
the rate of 9% per annum to the individual(s) who have invested in the
same. There is no equity in favour of these persons since the plan to
raise this construction was submitted only after 2014 when the validity
of the earlier EC had already ended. Therefore, though we uphold the
order of the NGT dated 27.09.2016 that demolition is not the answer in
the peculiar facts of the case, we also make it clear that the project
proponent cannot be permitted to build nothing more than 807 flats, 117
shops/offices, cultural centre and club house.
1033
Whether the Original Applicant is entitled to Special Damages :
49. On behalf of the original applicant various issues were raised
before us which had not been raised before the NGT and find no mention
either in the original order or even in the order under review. We are not
considering those issues. It was urged that the project pro ponent has
reduced the area of Cultural Centre. This averment is not correct as
pointed by senior counsel appearing for the Union of India. The
development plan is not only for the area under the project but covers a
much larger area where more than one builder and projects may be
involved. It is not the responsibility of only one builder to provide the
entire community services and these have to be provided pro rata by all
developers of projects in the area. It was also alleged that the builder
had built 3 basements which are illegal. On the other hand i t was
contended by the learned senior counsel for the project proponent that
one of the basements has already been blocked and the o ther two
basements shall also not be put in use and would be completely blocked
off. We make it clear that PMC and SEIAA will ensure that the project
proponent blocks the basements in such a manner that they can never
be put to any use. Another argument raised by the original applicant was
that the project proponent had stated that though he would not use any
ground water, however it has utilized the ground water and violated the
condition of the EC. Reliance is placed on certain photographs showing
water being pumped. On the other hand on behalf of the project proponent
it has been urged that this water was being pumped out from the
excavated area when the building was built and the water l evel had
risen. We cannot decide this disputed question of fact in these proceedings.
50. We may also point out that in this case the original applicant
has tried to project the case as if he is filing the case in the public interest
and has prayed for certain general directions. He has also cl aimed
special damages for himself. The main grievance of the original applicant
is with regard to the violation of the EC and according to hi m these
violations started in the year 2009. The original applicant had applied for
a flat in the project in question and had issued notice to the project
proponent on 21.10.2011 about deficiency in service. This notice was
replied to on 17.11.2011. Thereafter, the original applicant filed Consumer
Complaint No. 95 of 2012 on 22.02.2012. This complaint was decided
on 20.11.2014. Thereafter, the order of the District Consumer Disputes
Redressal Forum was challenged before the State Consumer Redressal
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
Commission both by the project proponent and original applic ant in
February, 2015. It appears that thereafter there were compl aints and
counter complaints filed by the parties against each other and the project
proponent filed a civil suit for defamation against the original applicant
on 02.12.2015 and it was only thereafter on 07.12.2015 an application
was filed in the NGT by the original applicant. We are highlighting these
facts only to emphasize the fact that this litigation is obviously not a
Public Interest Litigation. Therefore, the claim of the original applicant
to award him special damages cannot be accepted.
Quantification of damages:
51. We need to decide and re-assess the issue of damages sin ce
the original applicant has also challenged the original order of the NGT.
While assessing the damages we may note certain facts:-
1) The EC was granted on 04.04.2008 but construction commenced
after issuance of consent to establish dated 20.06.2009 and the EC would
be valid for a period of 5 years from the date of such consent, i.e. upto
19.06.2014;
2) The EC dated 04.04.2008 was granted for construction of bui lt up
area 57,658.42 sq.mtrs., whereas admittedly, as of now the constructed
built up area is 1,00,002.25 sq. mtrs.. Therefore, there is clear-cut violation
of the terms of the EC;
3) Any construction raised after 19.06.2014 is without any EC especially
since we have held that EC granted on 20.11.2017 is invalid.
Carbon Footprint:
52. The main case of the original applicant is that the dam ages
should be assessed on a scientific basis by calculating the damage caused
to the environment by the project proponent on the basis of ‘ Carbon
Footprint’. In the absence of detailed submissions, we find ourse lves
totally unequipped to go into this aspect of the matter.
53. In the original application filed by the original applicant before
the NGT, there is no reference to Carbon Footprint. Even when evidence
was initially led, no reference was made to the same. The concept of
Carbon Footprint was introduced by the original applicant only in his
affidavit dated 18.05.2016. In fact, according to the project proponent
this affidavit was not even filed on 18.05.2016. It appears to us that
there is no order of the NGT specifically permitting the original applicant
1035
to file such an affidavit. The submission of original applicant is that he
was orally permitted to file the same. These disputed questions would
have been only decided by the Original Bench and, therefore, we have
already set aside the order passed in the review app lication dated
08.01.2018.
54. Courts cannot introduce a new concept of assessi ng and
levying damages unless expert evidence in this behalf is led or there are
some well established principles. We find that no such principles have
been accepted or established in the present case. When th ere are no
pleadings in this regard we fail to understand how the concept of Carbon
Footprint can be introduced after evidence has been closed, at the stage
of arguments. We cannot assess the impact in actual terms and, therefore,
we can only impose damages or costs on principles which have been
well settled by law.
55. We may also note that the method to which the origi nal
applicant referred to is not part of any law, rule or executive instructions.
This method is no doubt used to compensate and impose damage s on
nations but we cannot apply this method while imposing damages on a
person who violates the EC. We may also add that the calculation made
by the original applicant in his affidavit dated 18.05.2016 filed before the
NGT are based on assumptions some of which we have not found to be
correct namely – (1) use of ground water; (2) reduction of Cultural
Centre space; (3) construction of basements etc..
56. We may make it clear that we are not laying down the law
that damages cannot be assessed on the basis of Carbon Footprint. In a
case where expert evidence in this behalf is led or on the basis of empirical
data it is established that by applying the principles of Carbon Footprint
damages can be assessed, the Court may, in the facts and circumstances
of the case, rely upon such data but, in the present case, there is no such
reliable material.
57. Having held so we are definitely of the view that the project
proponent who has violated law with impunity cannot be allowed to go
scot-free. This Court has in a number of cases awarded 5% of the
project cost as damages. This is the general law. However, in the present
case we feel that damages should be higher keeping in view the totally
intransigent and unapologetic behaviour of the project proponent. He
has maneuvered and manipulated officials and authorities. Instead of 12
buildings, he has constructed 18; from 552 flats the number of flats has
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
gone upto 807 and now two more buildings having 454 flats are proposed.
The project proponent contends that he has made smaller fl ats and,
therefore, the number of flats has increased. He could not ha ve done
this without getting fresh EC. With the increase in the number of flats
the number of persons, residing therein is bound to increase. This will
impact the amount of water requirement, the amount of parking space,
the amount of open area etc.. Therefore, in the present cas e, we are
clearly of the view that the project proponent should be and is directed
to pay damages of Rs.100 crores or 10% of the project cost whichever
is more. We also make it clear that while calculating the project cost the
entire cost of the land based on the circle rate of the are a in the year
2014 shall be added. The cost of construction shall be calculated on the
basis of the schedule of rates approved by the Public Works Department
(PWD) of the State of Maharashtra for the year 2014. In c ase the
PWD of Maharashtra has not approved any such rates then the Central
Public Works Department rates for similar construction shall be applicable.
We have fixed the base year as 2014 since the original EC expired in
2014 and most of the illegal construction took place after 2014. In addition
thereto, if the project proponent has taken advantage of Tr ansfer of
Development Rights (for short ‘TDR’) with reference to this project or
is entitled to any TDR, the benefit of the same shall be forfeited and if
he has already taken the benefit then the same shall either be recovered
from him or be adjusted against its future projects. The project proponent
shall also pay a sum of Rs. 5 crores as damages, in addition to the above
for contravening mandatory provisions of environmental laws.
58. Normally, this Court is not inclined to grant ex post facto EC.
However, in the peculiar facts of this case we direct that once the project
proponent deposits the amount of damages as directed by us t hen the
project proponent may approach the appropriate authority for grant of
EC. The authority may impose such conditions for grant of EC as it
deems necessary.
Findings and Directions :
59. We summarise our findings and directions as follows:
(i) That built up area under the notification of 14.09.2006 means
all constructed area which is not open to the sky;
(ii) Built up area under the notification of 04.04.2011 means
all covered area including basement and service areas;
1037
(iii) The communication dated 07.07.2017 is totally illegal and
accordingly quashed;
(iv) The original application cannot be treated as a public interest
litigation;
(v) We are not taking note of the allegations levelled against
the individuals who have not been arrayed as parties;
(vi) That the order dated 27.09.2016 of the NGT is upheld except
in so far as Direction No. 1 is concerned;
(vii) The order in review application passed by the NGT on
08.01.2018 is held to be totally illegal and is accordingly set aside;
(viii) We uphold the original order dated 27.09.2016 holding that
the construction raised by the project proponent was in violation
of the environmental clearance granted to it on 04.04.2008. We
uphold the fine imposed upon the PMC and the direction given
to the PMC to take appropriate action against the erring officials.
We also uphold the direction given to the Chief Secretary to the
State of Maharashtra and in addition, direct that th e Chief
Secretary to the State of Maharashtra shall look into the conduct
of the official holding the post of Principal Secre tary
(Environment) to the Government of Maharashtra on 27.09.2016
and will submit his report to the NGT within three months from
today;
(ix) We impose damages of Rs.100 crores or 10% of the project
cost, whichever is higher on the project proponent and in addition
thereto, project proponent will pay Rs.5 crores as levied by the
NGT in its order dated 27.09.2016;
(x) Project proponent shall not be permitted to raise construction
of two buildings having 454 tenements;
(xi) We direct that the project proponent shall only be permitted
to complete construction of a total 807 flats, 117 shops/offices
and cultural centre including club house;
(xii) The project proponent will only be permitted to seek
environmental clearance for completion of the project subject to
payment of costs in the aforesaid terms and it may be granted
ex post facto environmental clearance in the peculiar facts of
M/S. GOEL GANGA DEVELOPERS v. U.O.I.THR. SECY.
MINISTRY OF ENVIRONMENT [DEEPAK GUPTA, J.]
the case, on such terms and conditions as the environmental
authority deems fit and proper;
(xiii) The project proponent is granted six months’ time to deposit
the amount of damages imposed in terms of direction no. (ix)
supra in the Registry of this Court. In case the project proponent
does not deposit the amount within six months then all the assets
of the project proponent i.e. M/s. Goel Ganga Developers India
Pvt. Ltd. as well as its Directors shall be attached and the amount
of damages shall be recovered by sale of those assets. It is
further directed that in case this amount is not deposited within
the period of six months then the licence/registration/permission
granted to M/s. Goel Ganga Developers India Pvt. Ltd. to develop
any “real estate project” within the meaning of the Real Estate
(Regulation and Development) Act, 2016 shall be cancelled and
the project proponent i.e. M/s. Goel Ganga Developers I ndia
Pvt. Ltd. and its Directors shall not be granted permission t o
develop any “real estate project” under the Real Es tate
(Regulation and Development) Act, 2016 without permission of
this Court.
(xiv) The matter be listed on 22.10.2018 for issuing appropriate
directions as to how the amount of damages are to be utilised;
60. All the appeals are disposed of in the aforesaid terms. Pending
application(s) if any, shall also stand disposed of.
Ankit Gyan Appea ls disposed of.