Pune: NGT Slaps Rs 7.36 Crore Fine on Prayeja City for Operating Without Environmental Clearance

Reported by Mubarak Ansari
Pune, 17th February 2026: The National Green Tribunal (NGT), Western Zone Bench, Pune, has imposed a hefty environmental compensation of ₹7,36,87,500 (Rupees Seven Crore Thirty-Six Lakhs Eighty-Seven Thousand Five Hundred) on M/s Prayeja City for carrying out construction without mandatory Environmental Clearance (EC).

The judgment was delivered by a bench comprising Justice Dinesh Kumar Singh (Judicial Member) and Dr. Sujit Kumar Bajpayee (Expert Member) regarding the residential project located at Vadgaon Budruk, Sinhagad Road.

The order came in response to an application filed by environmental activist Tanaji Balasaheb Gambhire (Original Application No. 33/2020). The applicant alleged that the developer, a joint venture of Bhandari Gelada Associates LLP and Prayeja Developers LLP, had constructed the “Prayeja City-I” and “Prayeja City-II” projects illegally.

Gambhire contended that the developer constructed a total built-up area exceeding 20,000 square meters—the threshold requiring mandatory prior EC under the EIA Notification, 2006—without obtaining the necessary approvals or Consent to Operate from the Maharashtra Pollution Control Board (MPCB).

During the hearing, the NGT examined whether the two phases of the construction were a single project or separate entities. The Tribunal ruled that “Prayeja City-I” and “Prayeja City-II” are two separate projects with distinct sanctions and amenities.

Prayeja City-II: The bench found that this phase has a built-up area of 18,461 sq. mtrs., which is below the 20,000 sq. mtr. threshold. Therefore, no prior EC was required for this specific phase at the current stage.

Prayeja City-I: The Tribunal found the developer guilty of constructing a total built-up area of 56,292 sq. mtrs. without obtaining the mandatory prior Environmental Clearance, Consent to Establish, or Consent to Operate.

Penalty Calculation

While the applicant sought damages for a longer period, the Tribunal applied the limitation period prescribed under Section 15 of the NGT Act, 2010. The bench ruled that the penalty could only be levied for violations occurring within the five years prior to November 16, 2022 (when the developer applied for ex-post facto EC).

Using the methodology devised by the Central Pollution Control Board (CPCB), the compensation was calculated for a violation period of 1,965 days, totaling ₹7.36 Crore.

The NGT has directed the project proponent (Respondent No. 13) to deposit the total amount with the Maharashtra Pollution Control Board (MPCB) within two months. The MPCB has been instructed to utilize these funds specifically for the improvement of the environment in the affected area.