Categories: Business

Legal battle over G Square’s Coimbatore project intensifies after NGT verdict

The National Green Tribunal, Southern Zone, Chennai, has delivered a split verdict on a case related to development of the township project and the construction of buildings in Coimbatore by the Chennai-based G Square Realtor Pvt Ltd without the Environmental Impact Assessment. As there was a conflict in the verdict, the matter has been referred to the NGT’s Chairperson in Delhi.

The project was originally proposed by Emaar MGF Land Ltd on 120 acres for which the Directorate of Town and Country Planning had issued layout approval on March 30, 2021. The Local Planning Authority, Coimbatore, granted final approval for the layout on February 4, 2022. However, G Square acquired the project on February 25, 2022.

The applicant, R. Kalyanaraman, alleged that the project, being a township, required prior environmental clearance. As both Phase 1 and 2 are integrated projects and the total area of the project was over the threshold limit of 50 hectares, it comes under the purview of the EIA Notification.

Justice Pushpa Sathyanarayana, a Judicial Member, said in the order issued on February 8 that G Square’s actions regarding the first phase of the project are in compliance with the law. The assertion that Phase 2 constitutes an extension of Phase 1 is factually incorrect. Phase 2’s development commenced after G Square obtained a separate power of attorney on March 17, 2023, and secured layout approval on March 21, 2023, and registered it with TNRERA on March 30, 2023. These actions occurred well after the completion and sale of Phase 1.

The application was dismissed with costs of ₹1 lakh to the applicant.

However, Satyagopal Korlapati, Expert Member, said, “I have perused the comprehensive opinion delivered by Smt Justice Pushpa Sathyanarayana, Judicial Member of this Bench on the questions referred to in this Original Application. However, I respectfully dissent from the said opinion.”

Sliced the project

G Square deliberately and intentionally sliced the project to avoid obtaining prior environmental clearance by splitting the land undertaken for development within the same Pattanam Village into Phase – 1 (G Square City) and Phase – 2 (G Square City 2.0).

It is held that Phase 1 and Phase 2 are not separate and independent projects and that the project was split into two phases, each slightly less than 50 hectares, to evade the provisions of the EIA Notification, 2006, as amended. The proposed layout area of Phase 1 and Phase 2 put together is 93.28 Hectares, attracting the provisions of the EIA Notification, 2006.

The application is disposed of, holding that the project requires prior Environmental Clearance.

The State Level Environment Impact Assessment Authority, Tamil Nadu, was directed to take action against the company for violating environmental laws following due process of law. It was also directed to stop any ongoing constructions on the project site.

The TNPCB was directed to levy environmental compensation on G Square for commencement of the project without prior Environmental Clearance, following due process of law, Korlapati said.

TS Kiruthiga Devi, Legal head Coimbatore, G Square, told businessline, that the company is confident that the facts presented by G Square and confirmed by Judicial Member Pushpa Sathyanarayana will be confirmed by the Chairperson.

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