India, Maharashtra, vijay kumbhar, News, Governance, RTI, Transparency, Civic Issues, Real Estate: Environment clearance

The National Green Tribunal (NGT) has fined Mumbai builder for violation of Environment norms. NGT has also asked Project Proponent to not to create third party interest until he amends the plan and deposits the fine. This and earlier same judgments will have long lasting impact on real estate industry. Especially Pune being hub of illegal real estate projects. Recent judgments on violation of environment norms show that courts are not ready to pardon environment violation on account of fait accompli. And that is the reason project proponents and property buyers need to worry and take precaution.

Photo courtsey www.tolerance.org

There are so many real estate projects that have started or completed without obtaining necessary environment clearance (EC) . Even in some cases builders have forcefully given possession to flat purchasers. Everybody who are about to book, booked or have taken possession in such project need to be cautious because in that case even after taking possession if NGT or court asks to amend plan, property buyers may have to wash their hands of said property.

In this case project was started without obtaining EC and there after EC was given but SEAC turned a blind eye to the construction carried out in violation of environment norms. NGT didn’t cancel said EC but asked project proponent to amend the plan of the sale building, get it approved as per law and asked him not to proceed and not to create third party interest by way of sale, transfer, assignment, lease or parting with possession of any portion of sale building/component in any manner whatsoever shall be made unless the amounts as directed are paid and necessary amends to comply with the directions to provide additional parking spaces are made.

In pune and around more than 150 projects have started construction without obtaining EC and there are some projects to whom EC has been denied. However in these both the cases either project proponent has forcefully given possession or some have willingly taken possession. If we look at recent judgments on violation of environment norms it seems that courts are not ready to pardon environment violation on account of fait accompli. And that is the reason project proponents and property buyers need to worry and take precaution.

Photo courtsey politicalhumor.about.com

NGT also observed that the project proponent violated the EC Regulations, 2006 by undertaking construction before the EC was granted and thereby denied the realistic environmental safeguard to be in place. NGT also said that it may not be possible to determine compensation on account of violations of EC Regulations with consequential untold damage to the environment and with some exactitude, but that should not be the reason for the project proponent to avoid their liability in that regard. The NGT has already held that non-compliance of environment norms would be of serious consequence, not only on environment but upon the society at large.

And hence NGT has asked project Proponent priyali builders to pay and remit a sum of Rs. 3 crores to the Authority, specified under sub-section (3) of section 7(A) of the Public Liability Insurance Act, 1991 ( PLI Act ) to be credited to the Environmental Relief Fund within a fortnight. PLI Act is an An act to provide for public liability- insurance for the purpose of providing immediate relief to the persons affected by accident occurring while handling any hazardous substance and for matters connected therewith or incidental thereto. In this case collector is an authority to recover such fines. NGT has asked this sum to credited in the Environmental Relief Fund within a fortnight.

NGT also asked respondent priyali builders pay an amount of Rs. 32,63,600/- being market price of the deficient recreational area as on March, 2014 to the Maharashtra Pollution Control Board for incurring expenses on Environmental and ecological rehabilitation within a fortnight.

Photo courtsey www.climateactionreserve.org

Recent NGT judgments are eye opener for builders violating environment norms and also for the property buyers who ignore such things, ignorance of law can not can be excuse to pardon to wrong doings. Builders cheat when property buyers become emotional fool. Now its up to property buyers to decide next course of action. Actually stopping such illegal activities is responsibility of concerned authorities and officials but when they become party to such cheating, property buyers need to take this responsibility on own shoulders.

Since last many years there was a Builders Vs Buyers scenario in Indian Real Estate Industry and it seem that this scenario is going to remain there in future also . Because lies and secrecy have become unique selling Propositions (USP) of this industry .Government authorities also keep mum on buyers issues. Why don’t concerned authorities provide necessary information to buyers ?, why builders don’t put real facts before them, why they hide vital information from buyers?

Since my last posts Pune - hub of illegal Real estate activities,More than 150 projects violated Environment clearance norms and what is the future of the projects that have violated environment norms ? I received many phone calls and emails. All the calls and mails mostly were revolving around only environment clearance (EC) problems. For readers’ perusal reproducing four excerpts from those emails and my comments here.

Problem 1 - The Projects to whom State Level Expert Appraisal Committee (SEAC) has recommended Government of Maharashtra to take action for violation of Environment (Protection) Act, 1986 .Can you guide me to find what were the issue in the case and if the case open against the builder or has been cleared or not

My comment– in my post what is the future of the projects that have violated environment norms ? I have made it clear. And best option is to ask this question to the builder because after legal action and clearing objection taken by SEAC he may get EC. Hence it is their responsibility to disclose the information about what action has been taken on the builder, has the builder cleared all the objections and whether EC has been given to him or not.

Problem 2- After going through your blog I asked builder about EC.He said that he has applied for EC & will get the clearance within 115 days.He said that he is not going to start building construction till he get clearance. Now he is asking me to do agreement by demanding 20% amount of flat cost. In this case I am not sure to go for agreement with builder or not. What I should do in this case? Can you please help me in the given situation? I have draft copy of agreement sent by builder, can share it if you allow for it. Can I get your appointment for consultation?

My comment – Builders seems to be law abiding but then why he is asking money in advance. Because environment clearance (EC) should be there prior to starting construction? And what if he doesn’t get it? . Is there any clause mentioned in agreement regarding that aspect?. What will happen if he doesn’t get EC. ( he may be sure about it because of something else).To me it is crime to sell, make agreement or demand money before obtaining all the necessary permissions.

Email 3 -. As a RTI activitist you surely or might have the contact or email id of the group where we can Seek information whether any particular project go to clearance or not.I have already gone through the Maha site link but couldn't find my builder project so just want to re-assure whether my builder got environment certificate or not. Request to share the contact number or email id of the point of contact or SPOC who is responsible to provide environment certificate for residential project going on Pune.

My comment – unfortunately there is no such forum where property buyers can get all the relevant and authentic information.

Unfortunately all these mails talk of only environment clearances and nothing else, as if that is the only thing about which builder has lied and everything else is right. I wonder how do people believe in the builder whose USP ( Unique selling point) is “ telling lies”. Environment clearance is one thing that has come to light but there are many more things that are to be taken care before buying flats.

But big question is why public authorities don’t put information related to real estate projects in public domain?. Reason is simple. Most of the bureaucrats and politicians directly or indirectly get benefits from such projects.

In last many years in India housing for poor or affordable housing has become a serious issue. Many Governments brought many legislation or schemes to promote such housing. Be it urban land ceiling Act ( Funny thing is this act was brought so that poor people should get house and it was repealed for the same reason) , Housing for economically weaker section ( EWS ) , Housing for dis housed (HDH), special Township schemes etc. etc.

Many concessions benefits were given to promote such schemes. The Idea was to make available affordable housing for poor. But that didn’t happen because builder with help of politicians and bureaucrats siphoned off all these concessions and benefits in between. They didn’t reach to whom those were meant for i.e real, poor and needy flat buyer.

For example for special townships builder gets following concessions

i) automatic Non-agriculture permission.

ii) Exemption from Urban Land (Ceiling and Regulation) Act, 1976.

iii) Government land falling under township area leased out to the developer at the current market rate.

iv) The condition that only agriculturist will be eligible to buy agriculture land is not applicable in Special Township Areas.

v) Nno ceiling limit for holding agriculture land to be purchased by the owner/developer for such project.

vi) Floating FSI in the township. Unused FSI of one plot can be used anywhere in the whole township.

vii) The stamp duty rates applicable in the Special Township area are 50% of prevailing rates.

viii) A Special Township Projects are partially exempted from payment of scrutiny fee for processing the development proposal.

ix) 50% concession in payment of development charge.

x) Development of basic infrastructure and amenities.

However there are some conditions also like

(a) Water supply. The developer is required to develop a source for drinking water (excluding ground water source) or get a firm commitment from any water supply authority to meet the daily requirement of 140 litre per person a day. This excludes water required for fire-fighting and gardening. The storage capacity provided should be 1.5 times more than the requirement.

(b) Drainage and garbage disposal. Environment-friendly disposal of sewage and solid waste management as per the norms of the state pollution control board.

(c) The developer has to ensure continuous and good quality power supply through captive power generation, or draw from the existing supply system.

(d) The developer must get prior environment clearance certificate from the Union Ministry of Environment and Forests (MoEF).

(e) Twenty per cent of the area is to be reserved for park/gardens/playgrounds.

(f) Eco-friendly amenities like solar water heating.

(g) 60% of the area to be purely residential and out of the total floor area proposed to be utilized for residential development, 20% of the same to be used for residential tenements of 40 sq m.

(h) Proper road area with the main road being 24 meters wide. etc etc

But what happens in reality. Builders get all the benefits in advance, however when it comes to fulfilment of conditions. Both the builders and authorities keep mum. Whenever builders face some difficulty bureaucrats and politicians come to their rescue. Whenever builder finds any difficulty in getting commencement certificate they introduce a term called “conditional permission“which is totally illegal. Yes there two types of conditions some have to comply before work starts and others have to comply while work in progress.

For first type of conditions there is no excuse. Even then builders start construction and even before that they start selling the flats. But when it comes to the compliance of earlier or latter conditions authorities cry of having no authority to act on non- compliance or violations. When it comes to oblige builders , authorities read too much between the lines but when it comes to held builder responsible for some thing, they don’t even read what has been written in black and white?

For example

1)Central government by a notification on 28 February 2014 conferred state units powers to issue show cause notice to project proponents in case of violation of the conditions of the environment clearances issued by the said Authorities to projects or activities within their jurisdiction and to issue directions to the said project proponents for keeping such environment clearances in abeyance or withdrawing them, if required, for violations. But has any body heard or seen on their website of state units that have kept someone’s EC in abeyance or revoked it ?

2) i) It is mandatory for the project management to submit half-yearly compliance reports

in respect of the stipulated prior environmental clearance terms and conditions in hard and soft copies to the regulatory authority concerned, on 1st June and 1st December of each calendar year.

(ii) All such compliance reports submitted by the project management are public

documents. Copies of the same shall be given to any person on application to the concerned

regulatory authority. The latest such compliance report shall also be displayed on the web site of the concerned regulatory authority.

Have you seen any of these documents on environment department’s website?

As per environ protection act and as per section 4 of Right to Information act all the documents pertaining to various permissions, compliances, authorizations , action taken reports and plans must be in public domain. But what is the reality? . If you go to environment department’s portal, they have uploaded some information but that is insufficient and not in searchable mode, hence people can’t obtain any information they want. If you go to pune collector’s website it also doesn’t help. If you go to pune municipal corporations website, yes they have made available facility to obtain information on commencement certificates given and plans sanctioned thereon but it doesn’t work. Do you all this is just a coincidence? , certainly not.

Now what is the option for the flat buyers?. They must do some homework; consult some legal expert or sensible people before investing their money.

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Pune - hub of illegal Real estate activities,More than 150 projects violated Environment clearance

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Wednesday, September 9, 2015

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