Case Note & Summary
The present civil appeal arises from an order of the National Green Tribunal (NGT) dated 11 February 2019, which held that the increase in total construction area of the appellant's residential redevelopment project from 32,395.17 square metres to 40,480.88 square metres constituted an 'expansion' under the Environmental Impact Assessment (EIA) Notification, 2006. The appellant, Keystone Realtors Pvt. Ltd., had initially received a Commencement Certificate on 8 June 2010 for a project with a total construction area of 8,720.32 square metres. Subsequently, the project was expanded, and the appellant applied for and obtained an Environmental Clearance (EC) on 2 May 2013 from the State Level Environment Impact Assessment Authority (SEIAA) for a total construction area of 32,395.17 square metres. Later, by a letter dated 24 September 2013, the appellant informed the Environment Department of the Government of Maharashtra that the construction area was being further increased by 8,085.71 square metres, making the total 40,480.88 square metres, and sought an 'amendment' to the EC. The SEIAA granted the amendment on 13 March 2014, treating it as a marginal increase. The first respondent, a resident of the area, challenged the amended EC before the NGT. The NGT held that the increase was an expansion requiring compliance with Paragraph 7(ii) of the EIA Notification, which mandates submission of Form 1 and appraisal by the State Level Expert Appraisal Committee (SEAC). The NGT directed the appellant to deposit Rs. 1 crore with the Central Pollution Control Board and appointed an expert committee to study the impact. The appellant appealed to the Supreme Court. The Supreme Court framed the issue as whether the amended EC granted without following the procedure under Paragraph 7(ii) was valid. The appellant argued that the increase was marginal and within the threshold, and that the amendment was valid. The respondents contended that any increase beyond the capacity for which EC was granted constitutes expansion requiring fresh clearance. The Supreme Court analyzed Paragraph 2 and Paragraph 7(ii) of the EIA Notification and held that the increase in construction area from 32,395.17 sq m to 40,480.88 sq m was an expansion under Paragraph 2, as it increased the capacity beyond that for which prior EC was granted. The Court noted that the appellant did not submit an updated Form 1 and the SEIAA granted the amendment without SEAC recommendations, violating the procedure. The Court dismissed the appeal, upholding the NGT order, and directed the appellant to comply with the NGT's directions, including deposit of Rs. 1 crore and cooperation with the expert committee.
Headnote
A) Environmental Law - Environmental Clearance - Expansion of Project - Paragraph 2 and Paragraph 7(ii) of EIA Notification, 2006 - Schedule Entry 8(a) - The increase in total construction area from 32,395.17 sq m to 40,480.88 sq m, being an increase beyond the capacity for which prior EC was granted, constitutes an 'expansion' under Paragraph 2 of the EIA Notification. The procedure under Paragraph 7(ii) requiring submission of Form 1 and appraisal by SEAC must be followed. The SEIAA cannot grant an 'amendment' to EC without following the prescribed procedure. (Paras 6-9, 11-13)
Issue of Consideration
Whether the increase in total construction area of a building project from 32,395.17 sq m to 40,480.88 sq m constitutes an 'expansion' under Paragraph 2 of the EIA Notification, 2006, requiring compliance with the procedure under Paragraph 7(ii) of the said Notification.
Final Decision
The Supreme Court dismissed the appeal, upholding the NGT order. The Court held that the increase in construction area was an expansion under Paragraph 2 of the EIA Notification, and the amended EC granted without following Paragraph 7(ii) procedure was invalid. The appellant was directed to comply with the NGT's directions, including deposit of Rs. 1 crore with CPCB and cooperation with the expert committee.
Law Points
- Environmental Clearance
- Expansion of Project
- EIA Notification 2006
- Paragraph 2
- Paragraph 7(ii)
- Schedule Entry 8(a)
- Prior Environmental Clearance
- Amendment of EC
- Procedure for Expansion



