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NGT halts Ghatikia real estate project over environmental clearance violations

#Law & Policy#India
Last Updated : 12th Feb, 2025
Synopsis

The National Green Tribunal (NGT) has halted a real estate project in Ghatikia due to non-compliance with environmental clearance conditions. The developer had completed eight of the 12 planned towers but failed to construct a required stormwater drain before seeking clearance for further work. SEIAA issued a show-cause notice, and after the builder continued construction, a resident lodged a complaint with the NGT. The tribunal ruled that work cannot resume until the developer meets SEIAA's conditions, granting a 15-day window for compliance. The builder's appeal to continue construction was rejected.

The National Green Tribunal (NGT) has ordered a halt to the construction of a large-scale residential project in Ghatikia after the developer failed to comply with environmental clearance conditions set by authorities. The decision follows a complaint regarding the builder's continued construction despite directives from the State Level Environment Impact Assessment Authority (SEIAA), Odisha.


According to sources, the real estate firm had secured approval from the Bhubaneswar Development Authority (BDA) to develop a 12-tower residential complex. The builder completed eight of these towers before seeking environmental clearance from SEIAA, which mandated the construction of a stormwater drain as a prerequisite for further work. This condition was introduced to mitigate potential flooding and environmental risks in the area. However, the developer did not fulfill this requirement, leading SEIAA to issue a show-cause notice on January 27, questioning why the project's environmental clearance should not be revoked due to non-compliance. Despite this notice, construction activities reportedly continued, prompting a formal complaint to the NGT.

A resident of one of the completed towers filed a petition with the NGT, highlighting the developer's disregard for environmental regulations. The complaint raised concerns that the unchecked expansion of the project could have serious consequences for the surrounding areas, potentially worsening waterlogging and putting additional strain on infrastructure. Upon reviewing the case, the NGT observed that the project's environmental clearance was subject to SEIAA's conditions, which included obtaining an occupancy certificate for the completed towers, securing consent to operate for at least four towers, constructing the mandated stormwater drain, and ensuring the conversion of land use to residential (homestead). The tribunal noted that despite a delay of over one and a half years, the developer had not met these obligations and reiterated that compliance with these conditions was essential before any further construction could take place.

During the hearing, the builder's legal counsel argued against an immediate construction ban, claiming that halting work would negatively impact labourers engaged in the project. However, the NGT dismissed this argument, emphasising that regulatory compliance must take precedence over construction timelines. The tribunal made it clear that unless the SEIAA conditions were met, the project could not proceed. To ensure adherence, the NGT granted the developer a 15-day window to comply with SEIAA's directives. If the builder fails to meet these conditions within this period, the environmental clearance may be revoked entirely, leading to significant legal and financial repercussions for the project. Meanwhile, despite multiple attempts to seek a response, the real estate firm's chief executive remained unavailable for comment.

This case highlights the growing scrutiny of environmental compliance in real estate development. The NGT's intervention underscores the importance of adhering to regulatory conditions before proceeding with construction. For developers, failing to meet these obligations not only risks legal action but also affects project timelines and investor confidence. As authorities tighten enforcement, such rulings set a precedent for stricter environmental oversight in urban expansion projects.

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