Supreme Court: Punahchakran Not Required to Have Land Allotted for Environmental Clearance Form 1

In a significant ruling on environmental regulatory procedures, the Supreme Court of India has clarified that prior allotment or legal possession of land is not a mandatory precondition for submitting a Form 1 application to seek Terms of Reference (ToR) under the Environmental Impact Assessment (EIA) Notification, 2006. The bench of Justice J.B. Pardiwala and Justice Manoj Misra set aside the National Green Tribunal’s (NGT) decision to quash the environmental permissions granted to M/s Punahchakran Private Limited for its proposed Common Bio-Medical Waste Treatment Facility (CBWTF) in Uttar Pradesh’s Sambhal District.

The ruling also affirmed the binding nature of the Central Pollution Control Board’s Revised Guidelines for Common Bio-Medical Waste Treatment and Disposal Facilities, 2016 (RG, 2016) despite their non-publication in the Official Gazette, and upheld the validity of a land‑area relaxation granted for a facility located in a rural area.

Background: A Twisted Path to Clearance

Punahchakran applied to the Uttar Pradesh State Industrial Development Authority (UPSIDA) in July 2021 for two adjoining plots (E‑25 and E‑26, totalling 0.89 acres) in the UPSIDC Industrial Area, Babrala, to set up a CBWTF. Before allotment was finalised, it submitted a Form 1 application to the Uttar Pradesh State Environment Impact Assessment Authority (UP SEIAA) and obtained a standard ToR on 17 August 2021.

UPSIDA initially rejected the CBWTF allotment but later allotted the plots for “fabrication of industrial equipment.” After a change in land use was approved, the UPPCB granted a Consent to Establish (CTE) in April 2022, and UP SEIAA issued an Environmental Clearance (EC) in July 2022. These were challenged before the NGT by a competitor, Indotech Waste Solution, and set aside in Aniruda Panwar v. Ministry of Environment, Forests and Climate Change (31 July 2023) on the ground that land procurement was a condition precedent under Clause 2 of the RG, 2016 and that the one‑acre land requirement under Clause 7 had not been met. The NGT, however, granted liberty to re‑apply after procuring additional land or seeking relaxation.

Pursuing that liberty, Punahchakran obtained land‑area relaxation from the CPCB on 17 November 2023, which reduced the requirement from one acre to 0.89 acres subject to stringent additional control measures. On 20 December 2023, a second EC and second CTE were granted based on the original ToR. Indotech again challenged them, and the NGT set them aside on 5 July 2024, finding that the relaxation was invalid as Babrala did not qualify as a rural area and that the authorities had acted with malice in law.

Land Relaxation Valid: Site Located in Rural Village Noorpur

The Supreme Court relied on a factual report from the District Magistrate, Sambhal, which confirmed that the UPSIDC Industrial Area falls within Village Noorpur, under the Noorpur Gram Panchayat, and is situated about 2.6 km from the boundary of Babrala Nagar Panchayat. A gazette notification under the Uttar Pradesh Industrial Area Development Act also identified the area as being in Village Noorpur.

The court held that the precondition for relaxation under Clause 7(b) of the RG, 2016—either location within municipal limits with population over 25 lakh or within a rural area—was satisfied because the site is in a rural area. The relaxation, granted after consultation with the CPCB and accompanied by additional control measures including zero liquid discharge, increased stack height, and real‑time emission monitoring, was therefore legally sound.

Form 1 Application: Identification Sufficient, Not Allotment

Interpreting Clause 6 of the EIA, 2006 and the MoEF&CC Office Memorandum dated 7 October 2014, the court drew a clear distinction between the requirements at different stages of the clearance process. It observed:

Clause 6 of the EIA, 2006 states that an application in Form 1 can be made after the identification of prospective site(s). Therefore, land allotment cannot be said to be a pre-condition for the making of an application under Form 1.”

The court explained that at the Form 1 stage, the applicant need only identify a prospective site for the proposed project. A credible document showing the status of land acquisition becomes necessary only at the appraisal stage (Stage IV). Legal possession through a sale deed or lease deed is not required either before Form 1 or at appraisal.

The court also held that Clause 2 of the RG, 2016 does not make land procurement a strict prerequisite for initiating the EC or CTE process. The expressions “land procured” and “upon allocation of site” must not be interpreted hyper‑technically to impose a higher standard than what the EIA Notification prescribes.

ToR Survives Quashing of First Clearance

The respondent argued that once the first EC was set aside, the underlying ToR automatically became invalid. Rejecting this, the court held that whether the process must restart from Form 1 depends on the nature of the defect that led to the cancellation. If the defect relates only to the appraisal stage and not to the Form 1 or ToR itself, the ToR remains valid.

“Hence, when the EC is set-aside in such cases, the applicant must not be required to mechanically restart the process, particularly when going to the starting line virtually adds nothing to the procedure and is purely redundant,” the court noted.

Since there was no deliberate concealment or false information in the original Form 1 that affected the ToR, and the ToR remained within its four‑year validity period under MoEF&CC OMs dated 29 August 2017 and 8 June 2022, the second EC could validly be based on the first ToR.

Key Observations from the Court

  • On the binding nature of RG, 2016 despite non‑publication in the Official Gazette: “Publication of such technical guidelines i.e. the RG, 2016, on the official website of the CPCB was reasonably sufficient.”
  • On the requirement of land acquisition at the Form 1 stage: “Land allotment cannot be said to be a pre-condition for the making of an application under Form 1.”
  • On the effect of quashing an EC on the ToR: “When the EC is set-aside in such cases, the applicant must not be required to mechanically restart the process, particularly when going to the starting line virtually adds nothing to the procedure and is purely redundant.”

Final Decision

Allowing the appeal, the Supreme Court set aside the NGT’s judgment of 5 July 2024 and restored the second EC and second CTE granted on 20 December 2023. The court directed the Registry to forward a copy of the judgment to the NGT for circulation to all its benches.