38 Builders in Greater Noida Face 1% Project Cost Fines for Unauthorized Groundwater Extraction

In a significant move aimed at curbing unauthorized groundwater extraction, over 35 builders in Greater Noida are now facing the prospect of paying an environmental compensation amounting to 1% of their project costs. This decision was recommended by the groundwater wing of the Greater Noida Authority, which has proposed a total fine of Rs 144.3 crore for 38 builders who allegedly extracted groundwater without obtaining the necessary permissions.

The backdrop to this development lies in an order from the National Green Tribunal (NGT), which had directed the Central Ground Water Authority (CGWA) to calculate the compensation based on 0.5% of the project cost. However, due to the inability of the Greater Noida Authority to provide details about the duration of water extraction, a blanket fine of 1% was decided upon.

DK Gupta, the Regional Officer for the State Pollution Control Board in Greater Noida, explained, "NGT had asked CGWA to calculate the environmental compensation based on certain factors — the actual amount of groundwater extracted and the period of it. However, the Greater Noida Authority did not have any of this data. None of the project proponents had installed any water meters. So, the actual quantum of extraction and pumping hours could not be assessed. The Authority then came to the conclusion that the amount should align with guidelines of the CPWD, which is 1% of the project cost.”

The issue traces back to June 2022 when environmentalists Prasoon Pant and Pradeep Kumar Dahlia filed a petition with the NGT, alleging that groundwater was being illegally extracted at 63 construction sites in Greater Noida. This prompted the formation of a district-level panel, which included the District Magistrate and officials from the state and central pollution control boards, to investigate the claims. By 2023, the panel confirmed that at least 38 developers, involved in 41 projects, were violating norms regarding groundwater extraction.

Originally, the compensation was to be calculated for 41 builders. However, the Greater Noida Authority did not have the project costs for three builders, leading to the pollution board being tasked with taking action against these three developers.

The decision to impose fines has not gone without controversy. Some builders have denied the allegations, arguing that they did not use groundwater at their project sites. Anuj Choudhary, the Director of Panchsheel Buildtech Pvt Ltd, stated, "We have been accused of extracting water at the site of our project, Panchsheel Hynish. But we have already submitted a receipt to NGT, showing that we used STP water from the Greater Noida Authority. When several builders have gone into insolvency and others are busy clearing dues, how is this compensation justified?”

The debate is further complicated by the differing groundwater levels in the region. In Noida, the pre-monsoon groundwater level rose by around 2 feet in a year — from 77 feet to 75 feet. Conversely, in Greater Noida, there was a slight dip from 44 feet to 44.03 feet, indicating varying degrees of groundwater replenishment and extraction across the areas.

This situation underscores the broader challenges in regulating and managing groundwater resources in rapidly developing urban areas. As authorities and developers continue to clash over environmental compliance and sustainable practices, the outcome of this enforcement action could set a precedent for future cases in the region and beyond.