In a legal setback for MGM Healthcare, the Chennai Metropolitan Development Authority (CMDA) has imposed a fine of Rs 5 lakh on the hospital for undertaking construction activities without obtaining proper plan approval.
Following a directive from the Madras High Court, CMDA issued a notice to MGM Healthcare, giving the hospital a 15-day ultimatum to reimburse the penalty or face additional interest charges at a rate of 24% per annum. The ruling by the Madras High Court stems from a petition filed by senior counsel G Rajagopalan concerning noise pollution resulting from the construction of a building by MGM Healthcare on St Mary’s Road in Alwarpet. The court admonished authorities, including CMDA and the Chennai Corporation, for their failure to curb unauthorised constructions and pervasive corruption in the approval process. As a consequence, both CMDA and Chennai Corporation were ordered to pay a fine of Rs 5 lakh each, directed to be remitted to Adyar Cancer Institute. According to the legal notice served to MGM Healthcare by CMDA, the hospital initiated construction before obtaining planning permission, which was only granted on February 23. CMDA contends that despite the application for planning permission being submitted on November 7, 2023, MGM commenced piling works and other preparatory activities as early as July 2023.
In response to the notice, MGM Healthcare claimed in a letter dated December 12, 2023, that it would suspend all construction activities until proper planning and building permissions were secured. However, CMDA alleges that the hospital continued with the construction despite this assurance, prompting the imposition of the penalty. The case underscores the importance of adherence to regulatory protocols and obtaining requisite approvals before commencing construction activities. It also highlights the role of regulatory bodies in ensuring compliance with building regulations and addressing instances of unauthorised development, thereby safeguarding public safety and preserving the integrity of urban infrastructure. As MGM Healthcare grapples with the legal repercussions of its construction violations, the incident serves as a cautionary tale for other entities in the construction industry, emphasising the consequences of flouting regulatory norms and the necessity of diligent compliance with legal requirements.
