Need to rethink PILs in the real estate sector

At every single step of economic growth, countries need to make choices between inconsistent objectives. It would be incorrect to state that the real estate sector has not acknowledged environmental sustainability in its decision-making. 

There has been a substantial shift towards more environmentally-sustainable buildings. 

Since the 1960s, Faridabad prospered as an industrial town in close vicinity to Delhi. It has attracted heavy investments and created jobs with large industrial houses along with several medium and small scale entrepreneurs.

Being close to Delhi and located on the Delhi-Agra Highway, Faridabad had everything going well in its favour. But, over a period of time, population swelled and the need for more housing was felt. 

In 1982, the government of Haryana came out with a draft development plan, which visualised planned development and several reputed builders like DLF, Eros Group, BPTP and Omaxe completed their housing projects in Faridabad, making it a perfect destination for middle-class home buyers.

The National Green Tribunal (NGT) has long been a saviour of the environment and has truly set an agenda for environment conservation. 

However, of late, it has become a destination of choice for so-called public-spirited litigants, who have been approaching this forum merely for the sake of publicity and occasionally for extortion. 

In addition to the typical damages usually sought in environmental actions, courts across the country have increasingly allowed aggrieved property owners to recover for the diminution in property value resulting from the stigma that accompanies environmental damages.   

Unfortunately, the Indian legal system does not pay much heed to the credentials of complainants.  Such a situation has led to an alarming growth in public interest litigations (PIL) being filed with a vested interest.  

It has been noticed that majority of such PILs are meant to settle business scores or to cripple opponents. 

However, if an expert’s report or testimony is unclear or not fully reliable, stigma damages are unlikely to be recovered, as the case of Bharti Realty project at Sector-43, Faridabad, demonstrated.

The said project had all licenses and authorisations from the state forest department. However, it came under heavy fire before the NGT when a retired serviceman filed a PIL against it. This, when the revenue estate of the Sarai Khawaja village, which is part of Faridabad Master Plan for more than 35 years, has indicated Sector 43 as a residential zone. It has been categorised in the residential zone of Master Plan of 2011 as well as the draft Master Plan of 2031. 

For long, the construction industry has faced challenges in form of delayed approvals and illegitimate demands. The present NGT Chairperson and retired Supreme Court Judge, Adarsh Kumar Goel, has gone to the extent of saying that almost 50% of litigants before his court were blackmailers.

Expert reports, affidavits, medical and contamination testing may all give credence to a petitioner’s damage claim, but until more law has developed in this area, plaintiffs will likely continue to plead such novel and unique damages in their PILs. 

If India is to grow and create more jobs, then our courts must stop giving judgments merely on public perceptions at the behest of so-called environmentalists.  

Environment and humanity have to co-exist. We have to find a middle path wherein human lives can be benefitted from the environment and vice-versa.  

Author is Director, Eros Group