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Environmental LawSupreme Court of India

Keystone Realtors Pvt. Ltd. v. Anil V. Tharthare & Ors.

Civil Appeal · 2019 INSC 1312Decided 3 Dec 2019
Civil Appeal No. 2435 of 2019
Dr. Justice D.Y. Chandrachud · Justice Ajay Rastogi

Background

The appellant, developer of a residential redevelopment project in Bandra, Mumbai, received an Environmental Clearance (EC) in 2013 when its construction area was about 32,395 square metres. It later expanded the project further to 40,480 square metres by constructing sixteen additional flats, but instead of undergoing the full fresh environmental review procedure required for an "expansion" under the EIA Notification of 2006, it merely sought and obtained an "amendment" to its existing EC, which the state authority granted by simply recording the new figures without any fresh environmental impact evaluation. A local resident challenged this amended clearance before the National Green Tribunal (NGT), which ultimately held that this increase amounted to an unauthorised "expansion" requiring the full EC procedure, directed the appellant to deposit Rupees one crore with the Pollution Control Board, and set up an expert committee to study the project's environmental impact and suggest remedial measures.

Decision Breakdown

The Supreme Court upheld the NGT's interpretation, holding that any increase in construction area beyond what was originally cleared qualifies as an "expansion" under the EIA Notification requiring a fresh Form 1 application and full evaluation by the Expert Appraisal Committee: a project proponent cannot be allowed to incrementally increase a project's footprint through mere "amendments" to an existing clearance without environmental scrutiny, since that would let developers grow a project from the minimum to the maximum threshold size without ever undergoing real review. The Court traced the regulatory history, noting that a 2009 proposal to exempt "marginal" expansions through self-certification was specifically rejected by an expert committee and never adopted, reinforcing that even modest-looking expansions carry real environmental consequences that deserve scrutiny. Since the appellant had already completed construction by the time of the dispute, undoing the construction was not practical, so the Court upheld the NGT's remedial approach, continuing the expert committee's evaluation and allowing it to recommend compensatory measures, rather than ordering demolition. The appeal was dismissed, with no order as to costs.

Lesson Learnt

Developers cannot sidestep mandatory environmental review by labelling a substantial increase in construction as a mere "amendment" to an existing clearance: any genuine expansion beyond the originally approved scope legally requires a full fresh environmental assessment, and completing construction before a legal challenge is resolved does not immunise a builder from remedial consequences.

Keystone Realtors Pvt. Ltd. v. Anil V. Tharthare & Ors. – Legal Case Shots | LegalAware