Greater Noida Builders Fined for Unauthorized Groundwater Extraction

In a significant move, 38 builders in Greater Noida have been mandated to pay an environmental compensation equal to 1% of their project cost. This directive comes in response to allegations of unauthorized groundwater extraction, a serious environmental concern that has prompted action from the National Green Tribunal (NGT) and the Greater Noida Authority.
The issue dates back to June 2022, when environmentalists Prasoon Pant and Pradeep Kumar Dahlia filed a petition with the NGT, accusing 63 construction sites in Greater Noida of illegally extracting groundwater. The NGT subsequently formed a district-level panel, including the District Magistrate and officials from the state and central pollution control boards, to investigate these claims. By 2023, the panel concluded that 38 developers, involved in 41 projects, were indeed violating norms by extracting groundwater without proper permissions.
Initially, the NGT had directed the Central Ground Water Authority (CGWA) to calculate the environmental compensation based on 0.5% of the project cost, considering factors like the amount of groundwater extracted and the duration of extraction. However, due to the lack of detailed data from the Greater Noida Authority, this calculation could not be performed accurately. Given the absence of specific data on groundwater extraction and the non-installation of water meters by the project proponents, the Greater Noida Authority decided to impose a blanket fine of 1% of the project cost, aligning with the guidelines of the Central Public Works Department (CPWD).This decision was communicated by DK Gupta, the regional officer for the state pollution control board in Greater Noida.
The compensation was originally intended for 41 builders, but the Greater Noida Authority lacked project cost details for three of them. Consequently, the Uttar Pradesh Pollution Control Board (UPPCB) has been tasked with taking action against these three builders. Some builders have contested the allegations, claiming they did not use groundwater at their project sites. Anuj Choudhary, director of Panchsheel Buildtech Pvt Ltd, stated that they used treated sewage water from the Greater Noida Authority for their project, Panchsheel Hynish, and provided receipts to support this claim. Builders have also expressed concerns about the financial burden of the compensation, especially given the insolvency issues and ongoing dues in the real estate sector.
The unauthorized groundwater extraction has significant environmental implications. In Noida, the pre-monsoon groundwater level rose by around 2 feet in a year, while in Greater Noida, there was a slight dip from 44 feet to 44.03 feet. This highlights the urgent need for sustainable water management practices. The NGT has scheduled further hearings to finalize the compensation amounts and address the objections raised by the builders. This case underscores the importance of regulatory compliance and the need for robust monitoring mechanisms to protect vital natural resources like groundwater.
In conclusion, the imposition of environmental compensation on builders in Greater Noida is a crucial step towards enforcing environmental regulations and ensuring sustainable development practices. The ongoing legal proceedings and future actions will determine the effectiveness of these measures in curbing unauthorized groundwater extraction.
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