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Synopsis

A division bench of the Bombay High Court comprising Justice GS Patel and Justice Kamal Khata recently observed that municipal corporations cannot demand the renewal of environmental clearance from developers as a prerequisite for processing applications for occupancy certificates.

“We therefore return a specific finding that there is no requirement of revalidation or renewal of Environmental Clearances although a Consent To Operate requires or may require to be renewed periodically. Once that is done, the VVCMC, or for that matter any other Municipal Corporation, or the MPCB cannot insist on a ‘renewal’ of the ‘Environmental Clearance’,” the court observed.

Cosmos Prime Project Ltd had filed a plea before the high court after being denied an occupancy certificate by the Vasai Virar Municipal Corporation (VVCMC). The denial was based on the VVCMC's insistence on the renewal or revalidation of environmental clearance.

The high court, in its ruling, pointed out that the demand by VVCMC for such revalidation of environmental clearance was untenable.

“The Vasai Virar City Municipal Corporation (“VVCMC”) seems to be under the impression that it can make the same untenable demand from every developer by insisting on a revalidation or something like a revalidation of an Environmental Clearance already obtained. Without it, the VVCMC will not process an occupancy certificate application,” the court noted.

The bench in its order referred to a similar case which was before a division bench of Justice GS Kulkarni and Justice RN Laddha wherein the VVCMC had made a statement that without being influenced by the impugned order the application for an occupancy certificate application would be processed.

Cosmos Prime Project Ltd, the petitioner, contended that the sole basis for rejecting their occupancy certificate was the absence of "renewal" of the Environmental Clearance, despite the periodic renewal of the Consent to Operate (CTO).

The division bench said that there was no concept of a constant cycle of environmental clearance.

“This is also logical, because an Environmental Clearance is granted on the project proposal at its inception or proposal stage, in cases where it is mandated. There is no concept of a constant cycle of Environmental Clearances. Adherence to the stipulated norms is ensured by periodic renewals of the CTO. MPCB permission is required for the operationalizing of the MSW/STP etc,” the bench said.

The high court served notice to VVCMC while noting that the court would dispose of the petition unless it is shown that there is a positive statutory requirement for a renewal of an Environmental Clearance.

The bench will hear the matter on 4th September.

Case title: Cosmos Prime Projects Ltd vs VVCMC