Pune: The National Green Tribunal (NGT) Western Bench on Tuesday imposed environmental damage compensation (EDC) of ₹7.36 crore on the developers of Prayeja City-I for violations of statutory environmental norms, bringing closure to a long-pending dispute.
Reacting to the NGT order, Sandeep Jani, director, Prayeja Realty Private Limited, said, “I have yet to receive the final order. Further decision will be taken after consulting our legal team.”
The tribunal directed the project proponents to deposit the amount within two months from February 17, the date on which the order was uploaded. The sum will be deposited with the Maharashtra Pollution Control Board (MPCB) and used for environmental restoration in the affected area.
Prayeja City-I, a residential-cum-commercial project at Wadgaon Budruk near Sinhagad Road, is jointly developed by M/s Bhandari Gelada Associates LLP and M/s Prayeja Developers LLP. The tribunal noted that the project, with a total built-up area of 56,292 square metres, was constructed without obtaining prior environmental clearance, consent to establish and consent to operate, as mandated under environmental laws.
The penalty covers a five-year violation period prior to November 16, 2022. The EDC amount of ₹7,36,87,500 was calculated by the state pollution control board as per 2022 guidelines issued by the Central Pollution Control Board (CPCB). The tribunal held that the calculation was correctly carried out and upheld the assessment.
{{/usCountry}}The penalty covers a five-year violation period prior to November 16, 2022. The EDC amount of ₹7,36,87,500 was calculated by the state pollution control board as per 2022 guidelines issued by the Central Pollution Control Board (CPCB). The tribunal held that the calculation was correctly carried out and upheld the assessment.
{{/usCountry}}The case stemmed from a 2020 complaint filed by Pune resident Tanaji Gambhire, alleging environmental violations at the site. In October 2020, the NGT had constituted a joint committee to assess the project and directed the developers to deposit an interim compensation of ₹5 crore. That order was challenged before the Supreme Court.
In January 2021, the Supreme Court set aside the interim compensation after recording an undertaking from the developers that construction would proceed only after complying with statutory requirements, and remitted the matter back to the NGT.
During the proceedings, the developers argued that compensation under the NGT Act could be imposed only for violations within a five-year limitation period. The tribunal accepted this contention while finalising the compensation.
On Prayeja City-II, the tribunal noted that its built-up area does not exceed 20,000 square metres and therefore does not currently require prior environmental clearance. No penalty has been imposed on that project at this stage.