NGT Issues Split Verdict on Environmental Clearance for Coimbatore Township
The National Green Tribunal (NGT) has delivered a split verdict concerning the environmental clearance for a large-scale township project developed by G Square Realtor Pvt Ltd in Coimbatore. The project, which spans across 93.28 hectares, has been the subject of legal contention, with concerns raised about its environmental impact and compliance with regulations under the Environment Impact Assessment (EIA) Notification, 2006.
The township, located in Pattanam, Coimbatore, consists of two phases: ‘G Square City’ and ‘G Square City 2.0’. The project, which offers 240 amenities, including a drive-in theatre, clubhouse, swimming pool, gym, and parks, was originally proposed by Emaar MGF Land Ltd. and received approval from the Directorate of Town and Country Planning in 2021. It was later revised and developed by G Square, with Phase 1 comprising 48.73 hectares and Phase 2 expanding to 110 acres. The controversy arose when social activist R. Kalyanaraman filed a petition, arguing that the project, due to its combined area exceeding 50 hectares, required prior environmental clearance. He claimed that the development had been started without necessary clearance and that the natural stream and rainwater system on the land had been concealed.
In the case, G Square’s counsel argued that the two phases were separate projects, with Phase 2 being developed only after receiving the required approvals and being physically separated by public roads and private lands. They stated that the project had not breached any legal thresholds, as Phase 1 alone was below the 50-hectare limit for environmental clearance. On February 8, the NGT issued its ruling. Justice Pushpa Sathyanarayana, in her judgment, upheld the position of G Square. She noted that Phase 1 had received all necessary approvals and complied with the legal thresholds for environmental clearance. As for Phase 2, she confirmed that the project had started after acquiring all the requisite approvals, and the physical separation between the two phases confirmed they were not part of a single continuous development. Justice Sathyanarayana dismissed the petition and ordered the applicant to pay ₹1,00,000 to the Tamil Nadu Pollution Control Board for green belt development, citing that issues such as waste management were governed by municipal regulations, outside the scope of the NGT’s purview.
However, the expert member, Satyagopal Korlapati, disagreed. He argued that the separation of the project into two phases was a deliberate strategy by G Square to evade environmental clearance, as the combined area of the two phases surpassed the threshold. He referred to the practice of “cake-slicing,” where large projects are divided into smaller segments to circumvent regulatory requirements. Mr. Korlapati recommended that both phases be treated as a single development and required to undergo an environmental impact assessment. He directed the State Environment Impact Assessment Authority to take action against G Square and halted ongoing construction, also urging the Tamil Nadu Pollution Control Board to levy environmental compensation for the violation.
As the verdict is split, the matter will now be sent to the chairperson of the NGT, Justice Prakash Shrivastava, for further review and a final decision. This case highlights the ongoing challenges faced by large-scale infrastructure projects in balancing development with environmental sustainability. It raises important questions about the transparency of the project approval process and the role of environmental regulations in safeguarding natural resources amidst rapid urbanisation. As the situation continues to evolve, stakeholders will be closely watching the NGT’s final ruling and the potential repercussions for future real estate developments in the region.
