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The National Green Tribunal (NGT) has imposed a fine of more than 113 crore rupees on a Noida-based real estate company for violating environmental norms. The NGT stated that the inaction by the Enforcement Directorate (ED) in the matter for more than 9 and a half years "encouraged" violations and that when action was eventually taken, it was limited in scope. The ED was accused of "forgetting to take note" of the fact that the scope of the Prevention of Money Laundering Act (PMLA) has been broadened and that revenue earned through such crimes is considered the proceeds of crime under the law.
The NGT heard a petition claiming that Uppal Chadha Hi Tech Developers Pvt. Ltd. was violating environmental norms in its Hi-Tech Township across 14 villages in Ghaziabad and Gautam Buddha Nagar districts of Uttar Pradesh. The bench, comprising Chairperson Justice A.K. Goel and other members, observed that the project proponent (PP) had violated several environmental norms and that remedial action for the restoration of the environment required the PP to pay environmental compensation.
The environmental compensation was calculated at 0.75% of the total project cost, and the NGT ordered the PP to pay 113.25 crore rupees and deposit it with the Uttar Pradesh Pollution Control Board (UPPCB) within three months. The NGT also noted that punitive action, such as criminal prosecution, would also be justified against the PP. The NGT emphasized the importance of levying a substantial amount as environmental compensation, stating that it is not a casual or symbolic amount, but rather a substantive and adequate amount necessary for the restoration of the environment.
The NGT expressed disappointment with the ED's lack of action in the matter, stating that more than 9 and a half years had passed without any action being taken against violators of environmental statutes. It further stated that the inactivity of the ED had encouraged polluters to continue their violations with impunity. The NGT also criticized the Central Pollution Control Board (CPCB) for being "very lenient" towards violators by determining a symbolic amount.
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