NGT Imposes ₹1.7 Crore Fine on Pune Developer for Environmental Damage
The National Green Tribunal (NGT) has penalized a Pune-based real estate developer with a ₹1.7 crore fine for constructing buildings without the necessary environmental clearances. The ruling highlights the importance of adhering to environmental norms in the real estate sector.
Environmental DamageReal EstateNgtPuneConstructionReal Estate PuneAug 30, 2025
The order, delivered by a bench comprising Justice Dinesh Kumar Singh and expert member Vijay Kulkarni, came in response to an application filed by resident Vishal Shantaram Darwatkar. The applicant alleged that the developer had initiated a major residential project on Katraj–Kondhwa Road in Pune, violating statutory environmental regulations.
According to the petition, the developer commenced construction of buildings A, B, and C in 2011, which were completed by 2016. During this period, a cooperative housing society was registered for the residents. Later, in April 2019, the developer started construction on building D, which was completed in July 2023. The developer claimed that the buildings were independent projects, but the tribunal rejected this claim.
The tribunal determined that the four buildings should be treated as a single integrated project. The combined built-up area exceeded 20,000 square metres, which is the statutory threshold requiring prior environmental clearance (EC), consent to establish (CTE), and consent to operate (CTO) from the Maharashtra Pollution Control Board (MPCB) and the State Environment Impact Assessment Authority (SEIAA). Both MPCB and SEIAA confirmed to the tribunal that no such permissions or approvals were granted to the project.
In its judgment, the tribunal stated that the project violated the law from the beginning, and the developer could not be allowed to evade responsibility. The tribunal referred to the Supreme Court’s ruling in Goel Ganga Developers Pvt. Ltd. vs. Union of India (2018), which set the principle of imposing environmental compensation at five per cent of the total project cost for blatant violations.
The NGT calculated the project cost at around ₹34 crore and imposed a compensation of ₹1.7 crore. The developer has been ordered to deposit the amount with MPCB within one month. The pollution board has been directed to use the funds within six months for environmental restoration measures in the affected area and submit a compliance report to the tribunal.
The applicant also highlighted other violations at the project site, including the illegal extraction of groundwater through borewells without permissions, narrowing of a natural water stream which disrupted local hydrology, the absence of a proper sewage treatment plant, and inadequate plantation and green cover. The tribunal noted that these deficiencies further demonstrated the developer’s systematic neglect of environmental safeguards.
The ruling is seen as a significant message to Pune’s real estate industry, which has often been accused of ignoring environmental compliance in the rush to complete large-scale housing projects. The NGT’s decision emphasizes that developers cannot evade legal responsibilities and that strict adherence to environmental norms is a non-negotiable obligation.
Concluding the matter, the NGT disposed of the application with a clear warning to project proponents. The bench emphasized that the compensation levied was not only a penalty but also a measure to ensure restorative justice by channeling the funds towards mitigating the environmental damage caused by unauthorized construction.
Frequently Asked Questions
What is the fine imposed by the NGT on the Pune-based developer?
The National Green Tribunal (NGT) has imposed a fine of ₹1.7 crore on the Pune-based developer for environmental damage compensation (EDC).
What were the violations committed by the developer?
The developer violated environmental regulations by constructing buildings without obtaining necessary clearances, illegally extracting groundwater, narrowing a natural water stream, lacking a proper sewage treatment plant, and having inadequate green cover.
How did the NGT determine the fine amount?
The NGT calculated the project cost at around ₹34 crore and imposed a compensation of ₹1.7 crore, following the principle of imposing environmental compensation at five per cent of the total project cost for blatant violations.
What is the significance of this ruling for the real estate industry in Pune?
The ruling is seen as a significant message to Pune’s real estate industry, emphasizing that developers cannot evade legal responsibilities and must strictly adhere to environmental norms.
What will the compensation be used for?
The compensation will be used for environmental restoration measures in the affected area, and the Maharashtra Pollution Control Board (MPCB) has been directed to utilize the funds within six months and submit a compliance report to the tribunal.
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