Supreme Court Rules on Environmental Clearance: Built-Up Area Interpretation

The Supreme Court of India, in the case of M/S. Goel Ganga Developers India Pvt. Ltd. vs. Union of India & Others, addressed a significant issue related to environmental clearance for construction projects. The judgment revolved around the interpretation of ‘built-up area’ as per the Environment Impact Assessment (EIA) Notification, 2006, and whether certain construction elements should be included in calculating the total built-up area for obtaining environmental clearance.

Background of the Case

The case originated when Goel Ganga Developers India Pvt. Ltd. sought environmental clearance for a large-scale construction project. The dispute arose regarding the inclusion of non-FSI (Floor Space Index) areas while calculating the total built-up area under the EIA Notification, 2006.

The Ministry of Environment, Forests & Climate Change (MoEF) and other respondents contended that even non-FSI areas, such as basements, parking spaces, and other covered constructions, should be included when calculating the built-up area for environmental clearance.

Key Legal Issues Considered

Whether non-FSI areas should be included in the built-up area for obtaining environmental clearance under the EIA Notification, 2006.
Whether the NOIDA Park Case (2011) should have influenced the Court’s interpretation of built-up area in this case.
The role of Floor Space Index (FSI) regulations in environmental clearance decisions.

Arguments by the Petitioner (Goel Ganga Developers India Pvt. Ltd.)

The petitioner argued:

The concept of FSI is different from the built-up area for environmental clearance purposes.
The EIA Notification does not explicitly mandate the inclusion of non-FSI areas in the built-up area calculation.
The judgment in the NOIDA Park Case suggested that there was ambiguity in defining built-up area under the EIA Notification, and this ambiguity should be resolved in favor of the developer.

Arguments by the Respondent (Union of India & Others)

The respondents countered:

The EIA Notification, 2006, clearly states that all covered construction areas should be included in the built-up area.
Excluding non-FSI areas would lead to environmental risks since these areas still contribute to environmental impact.
The NOIDA Park Case did not specifically address the issue of covered construction, and its reference was not relevant to this case.

Supreme Court’s Observations

The Supreme Court examined the language of the EIA Notification, 2006, and previous judicial precedents. The Court made the following key observations:

The EIA Notification categorically states that “all covered construction” should be considered as built-up area.
The concept of FSI is relevant for municipal planning but not for environmental clearance. Environmental concerns arise from the total constructed area, whether it is counted in FSI or not.
The NOIDA Park Case involved different considerations, primarily concerning whether open-to-sky areas should be included in the built-up area. The issue in this case was distinct, as it dealt with covered areas.
Environmental clearance authorities are not bound by local municipal laws regarding FSI calculations.

Final Judgment

The Supreme Court dismissed the application filed by the developer and upheld the requirement that all covered constructions must be included in built-up area calculations. The Court ruled:

“All constructed areas that are covered and not open to the sky must be treated as built-up area for the purpose of obtaining environmental clearance. The exclusion of non-FSI areas from built-up area calculations is contrary to environmental law.”

The Court further clarified:

“Environmental clearance is concerned with the total environmental impact of construction, not just the portion that counts under municipal FSI regulations.”

Implications of the Judgment

For Real Estate Developers: Developers must ensure that all covered construction is included in their environmental clearance applications.
For Environmental Regulation: The ruling strengthens environmental impact assessments by ensuring all significant construction activities are regulated.
For Municipal Authorities: The judgment clarifies that municipal FSI rules cannot override environmental clearance requirements.
For Future Construction Projects: The ruling sets a precedent for more stringent environmental scrutiny in large-scale real estate and infrastructure projects.

Conclusion

The Supreme Court’s ruling in this case reinforces the principles of environmental protection by ensuring that environmental clearance is granted based on total constructed area, rather than selectively applying FSI regulations. By emphasizing the importance of assessing all covered construction, the judgment enhances the accountability of developers and protects environmental interests.

Petitioner Name: M/S. Goel Ganga Developers India Pvt. Ltd..
Respondent Name: Union of India & Others.
Judgment By: Justice Deepak Gupta, Justice Aniruddha Bose.
Place Of Incident: India.
Judgment Date: 11-09-2019.

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