Important point
The illegal industrialization in residential/non conforming area in Delhi has commenced and has continued and the Authority, the Governments and its agencies have been totally negligent in discharge of its functions.

Headnote:Constitution of India-Article 32-Delhi Development Act, 1957-Delhi Municipal Corporation Act, 1957-Unauthorized industrial activity in Delhi in residential area-Industrial activity in residential/non-conforming areas-Orders passed from time to time-Hazardous and noxious industries and heavy and large industries (‘H’ category) have been shifted out of Delhi-‘F’ category and ‘B’ to ‘E’ category (light and service industries) and household industries (‘A’ categories industries) still remaining mostly in residential areas-Most of continued industrial activity is in contravention of law-Facts demonstrate that State Government and Delhi Development Authority have been wholly remiss of all its functions, duties and obligations-Central Government has been shifted its stand-Illegal industrialization in residential/non-conforming area continuing-National capital Regional Planning Board taking initiative to encourage shifting of industries to National Capital Region-Directions issued accordingly.
       Held : Except household industry, all other industrial units which have come up in residential/non-conforming areas in Delhi after 1st August, 1990 have to stop functioning. Unfortunately, the Governmental authorities have not lived up to the confidence that was reposed in them when the Court had stepped aside and left the matter to Government in the year 1996, as noticed hereinbefore. On the other hand, in the year 2002 while these matters were pending, commercial use of industrial area was sought to be regularized by DDA on payment of some amounts. On an application filed by learned Amicus Curiae public notice to the above effect was stayed. Later it was withdrawn by the authority. The action not only was utterly illegal but also shows total non-application of mind. Thus, going by the past experience, it would also be necessary to not only monitor but also to fix responsibility so that illegal activity does not continue any further and stops within the time schedule for its cessation fixed in this order. We also wish to make it clear that those who have set up industrial units after 1st August, 1990 have no right for allotment of a plot in an industrial area. This would, however, not debar the Government/authorities to allot to such oustees plots in industrial area but that under no circumstances should delay the closure process. Before we part, a word deserves to be said about Mr. Ranjit Kumar, learned senior counsel who has assisted this Court as Amicus Curiae. Learned Senior counsel has very effectively and ably assisted this Court both on facts and law. We place on record our deep appreciation for the able assistance rendered by Mr. Ranjit Kumar. In conclusion, having regard to the aforesaid, we issue the following directions:
        1. All Industrial Units that have come up in Residential/non-conforming areas in Delhi on or after 1st August, 1990 shall close down and stop operating as per the following schedule:
        (a) Industrial Units pertaining to extensive industries (‘F’ category) within a period of four months.
        (b) Industrial Units pertaining to light and service industries (category ‘B’ to ‘F’) within five months.
        (c) Impermissible household industries (category ‘A’) within six months.
        (d) 6,000 industrial units on waiting list for allotment of industrial plots within 18 months.
        2. The Central Government is directed to finalise the list of permissible household industries falling in category ‘A’ within a period of three months.
        3. 6,000 industrial units on waiting list shall be allotted industrial plots within one year.
        4. The Delhi Government may announce a policy within six weeks giving such incentives as it may deem fit and proper to those industrial units which came to be established after 1st August, 1990 and may close down on their own before the expiry of the time fixed in this order. The non-announcement of incentives by the Government shall not, however, delay the closure process.
        5. The water and electricity connection of the industrial units found operating after the due date of closure shall be disconnected forthwith and in any case not later than a month of the date fixed for closure in Direction No.1 above. If the industrial activity still continues, the premises shall be sealed within a period of not later than another one month.
        The seal shall be removed and water and electricity connection restored only after filing of an undertaking by the industrial unit not to recommence any sort of industrial activity before an officer nominated for the purpose by the Delhi State.
        6. The Central Government is directed to finalise within six months appropriate steps to be taken for making NCR region a success for industrial activity by removing the hurdles pointed out by the industry. The Governments of the adjoining States of UP, Rajasthan and Haryana are directed to extend full cooperation.
        7. The Municipal Corporation of Delhi shall consider within three months the aspect of withdrawal of exemption notification as suggested in the affidavit of its Town Planner filed on 28th October, 2002.
        8. We appoint a Monitoring Committee comprising (i) Chief Secretary of Delhi (ii) Commissioner of Police, Delhi (iii) Commissioner, Municipal Corporation of Delhi and, (iv) Vice-Chairman of Delhi Development Authority. This Committee would be responsible for stoppage of illegal industrial activity. It would, however, be open to the aforesaid members of the Monitoring Committee to appoint responsible officers subordinate to them to oversee and ensure compliance of the directions contained in the judgment.
        9. The first Progress Report by the Committee shall be filed by 31st August, 2004 and thereafter it shall be filed at least once in a period of every two months. (Paras 69 and 70)

Judgment

Y.K. Sabharwal, J.-This case about unauthorized industrial activity in Delhi in residential area has a protracted background. The present examination is confined to the issue of industrial activity in residential/non-conforming areas to decide what directions may be issued to put an end to such illegal activity. As a result of orders passed from time to time, hazardous and noxious industries and heavy and large industries (‘H’ Category) have been shifted out of Delhi. Some of extensive industries (‘F’ category) have also been shifted out of Delhi. As per the State Government, non-polluting ‘F’ category industries have not been yet shifted. The question is what should be done about continued unauthorized use contrary to Master Plan and Zonal Plan by remaining ‘F’ category and ‘B’ to ‘E’ category (light and service industries) and household industries (‘A’ category industries). These industries are continuing in residential/non-conforming areas. Such activity is mostly in residential areas. It is not in dispute that most of continued industrial activity under consideration is in contravention of law except only few household industries which are continuing in residential areas. To decide the question, it is necessary to first briefly notice orders passed by this Court during last about one decade.

2. In the various orders passed in the year 1995, this Court noticed that a large number of industries were located in residential/non-conforming areas in violation of the Delhi Master Plan formulated under the Delhi Development Act, 1957 (for short, ‘DD Act’), Delhi Municipal Corporation Act, 1957 (for short, ‘DMC’ Act) and other statutory provisions. Noticing that the Master Plan stipulates setting up of industries only in conforming areas, i.e., the industrial areas earmarked for that purpose, it was indicated that the industries in non-conforming areas have to stop functioning. The first concern of the Court was to stop the functioning of ‘II’ category industries, since most of it were discharging highly toxic affluent. It was noticed that as per the affidavit filed by Mr. D.S. Negi, Secretary (Environment), Government of Delhi, it was estimated that there were 93,000 industries which were operating in Delhi and majority of these were in non-conforming use zones. Public notices by the Government invited all industries operating in non-conforming use zone to give option to shift to available industrial plots in the industrial estates. The response from the industry was very poor. The industries operating in Delhi were called upon by issue of public notices in newspapers to furnish information in respect of the product manufactured, activity carried on, area, size, number of persons employed, power load, year of commencement etc. Out of 93,000 industries, only 513 industries and 382 persons responded. It was noticed that MCD was granting licences and registering various industrial units in non-conforming areas and permitting the industries to be set up in residential areas. Naturally, a surprise was expressed by this Court that on the one hand, the Court was issuing orders to reallocate the existing industries that were operating in the residential/non-conforming areas and on the other hand MCD was permitting setting up of new industries in residential areas. According to the MCD, it was done under the directions of the State Government. The MCD was directed not to register or grant licence to any industry in the non-conforming/residential area.

3. We may also make a brief reference to the orders that were passed in the year 1996. In the order dated 19th April, 1996, noticing the contention of Solicitor General for India that certain household industries can be permitted to operate not only in residential area but in residential premises itself, the Court observed that the provisions of the Master Plan have to be complied with and in case any non-residential activity is permitted in residential area under the Master Plan that c

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2004 Supreme(SC) 681

Important pointThe illegal industrialization in residential/non conforming area in Delhi has commenced and has continued and the Authority, the Governments and its agencies have been totally negligent in discharge of its functions.

Cases Referred (9)

Important point
The illegal industrialization in residential/non conforming area in Delhi has commenced and has continued and the Authority, the Governments and its agencies have been totally negligent in discharge of its functions.