Developers Held Liable Under 'Polluter Pays' Principle for Environmental Damage: National Green Tribunal - 2025-03-06

Laws, Courts & Judgments.

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Green Wood City Developer Fined ₹10 Crore for Environmental Violations: NGT Upholds 'Polluter Pays' Principle

New Delhi, March 4, 2025 – The National Green Tribunal (NGT), Principal Bench, New Delhi, has delivered a significant judgment holding Godwin Construction Company Pvt. Ltd. liable for environmental damage caused by improper sewage and solid waste management at its Green Wood City project in Meerut. The Tribunal, comprising Hon’ble Mr. Justice Sudhir Agarwal (Judicial Member) and Hon’ble Dr. Afroz Ahmad (Expert Member), ordered the developer to pay an interim environmental compensation of ₹10 Crore and mandated the construction of a Sewage Treatment Plant (STP) within six months.

Case Background: Residents Allege Environmental Degradation

The case originated from an Original Application (OA No. 492/2022) filed by Green Wood City Villa Jan Welfare Society and Green Wood City Residents Welfare Association. Residents complained about unhygienic conditions due to the developer's failure to properly handle sewage and solid waste, alleging open disposal and overflowing sewer lines within the Green Wood City township. They claimed that despite approaching the Meerut Development Authority (MDA) and Uttar Pradesh Pollution Control Board (UPPCB), effective action was lacking.

Joint Committee Report Highlights Deficiencies

Acting on the residents' complaint, the NGT constituted a Joint Committee comprising representatives from MDA, Municipal Corporation Meerut, UPPCB, and the District Magistrate, Meerut. The Committee's report, submitted in November 2022, confirmed several critical issues:

• Improper Sewage Disposal: Sewage was being collected in a pit and discharged into an open drain. While a connection to the MDA's trunk sewer line existed, it was technically inadequate, leading to sewer line overflows.
• Lack of Drainage System: No proper drainage system was developed in the colony, contributing to waterlogging.
• Poor Road Maintenance: Internal roads were damaged and poorly maintained.
• Unscientific Solid Waste Management: Solid waste was being collected in the open without proper containment, causing unhygienic conditions.

Subsequent reports, including one from the District Magistrate, Meerut, further corroborated the initial findings, noting incomplete drainage work and inadequate road infrastructure.

Developer Claims and Authority Responses

Godwin Construction Company contended that MDA was responsible for STP installation and maintenance, and that they had connected to MDA's sewer line. However, MDA clarified that internal development, including sewage treatment, was the developer's responsibility as per the sanctioned plan and agreement. The MDA also highlighted that the developer had failed to obtain a Completion Certificate and had outstanding external development charges.

NGT Emphasizes 'Polluter Pays' Principle and State's Responsibility

The NGT strongly criticized the developer's negligence and the regulatory authorities' inaction. The judgment emphasized that citizens cannot be made to suffer due to profit-oriented developers neglecting their statutory obligations. The Tribunal invoked the 'Polluter Pays' principle, stating:

> "The citizens cannot be made to suffer at the cruel hands of profit oriented developers, who continue to neglect/fail to discharge their contractual/statutory obligations, due to inaction/negligence on the part of the concerned Governmental agencies/instrumentalities of the State…The affected victims of environmental pollution cannot be said to be remediless in case of failure of Governmental agencies/instrumentalities of the State to take appropriate action against the defaulting developer and will be entitled to award of compensation even against the concerned Governmental agencies/instrumentalities of the State besides the defaulting developer."

The NGT highlighted the violation of the Water (Prevention and Control of Pollution) Act, 1974, and the Environment (Protection) Act, 1986, due to the discharge of untreated sewage and lack of environmental clearances. It noted the absence of an Environmental Clearance (EC) under the EIA Notification 2006, and Consent to Establish (CTE) and Consent to Operate (CTO) under the Water and Air Acts.

Tribunal Orders & Directions

In its final order, the NGT issued a series of directives:

1. STP Construction: Godwin Construction Company was directed to construct and operationalize an STP of requisite capacity within six months.
2. Solid Waste Management: The Resident Welfare Association was tasked with implementing scientific solid waste management practices in compliance with Solid Waste Management Rules, 2016, in consultation with UPPCB.
3. Environmental Compensation: The developer was ordered to pay an interim environmental compensation of ₹10 Crore to UPPCB within three months. UPPCB is further directed to calculate the final compensation amount and recover it from the developer.
4. Remediation Plan: A Joint Committee, led by the District Magistrate, Meerut, and including UPPCB, will prepare and execute an Environment Development Plan for remediation using the compensation funds.
5. MDA Action: MDA was directed to ensure that sewage is not collected improperly and to upgrade the connecting pipeline to a higher capacity if required, within two months.

The UPPCB is required to submit a compliance report by August 15, 2025. This judgment serves as a stern reminder to real estate developers about their environmental responsibilities and underscores the NGT's commitment to enforcing the 'Polluter Pays' principle for environmental violations. ```