1% of project cost to be imposed as fine on builders extracting groundwater, NGT told
As many as 33 group housing societies were found to be allegedly extracting groundwater illegally in 2023 in Greater Noida West. An environmental compensation of ₹306 crore was also levied by the committee on the errant developers
The Central Ground Water Authority (CGWA) has told the National Green Tribunal (NGT) that 1% of the total project cost will be imposed as ‘environmental compensation’ on developers engaged in illegal groundwater extraction in Greater Noida West.

The NGT is currently hearing a petition by resident Pradeep Dahaliya in 2022 alleging that builders were engaged in indiscriminate groundwater extraction for construction purposes since a long time.
A joint committee meeting, under the chairmanship of district magistrate Manish Kumar Verma, and attended by officials of the groundwater department, Greater Noida authority and Uttar Pradesh Pollution Control Board (UPPCB) was held on June 25 where the local government bodies were asked to assess the environmental compensation to be levied on the developers for illegally extracting groundwater.
As many as 33 group housing societies were found to be allegedly extracting groundwater illegally in 2023 in Greater Noida West. An environmental compensation of ₹306 crore was also levied by the committee on the errant developers.
The departments, however, failed to provide the quantum or period of groundwater extraction by builders.
“CGWA repeatedly requested Greater Noida authority and UP groundwater department to provide quantum and period of groundwater extraction by project proponents. Due to non-receipt of data, CGWA could not assess the environmental compensation to be imposed on developers,” said CGWA in its response before the NGT on July 15.
Officials at Greater Noida authority said the details could not be ascertained due to lack of installation of water meters by developers.
The CGWA further said, “It has been decided that as per the provision of the Central Public Works Department (CPWD), 1% project cost will be imposed as environmental compensation. Implementation has to be undertaken by Greater Noida authority.”
“Of the total 41 projects, 1% amount of the total project cost of 38 project proponents has been communicated to UPPCB. Since, project cost of remaining three projects was not available with the authority, UPPCB has been requested to take decision on their own,” said AP Verma, senior manager (sewer), Greater Noida authority.
“1% amount of the total project cost is a very small amount to be imposed as penalty as these developers have been engaging in the violation for so long. Minimum 5% of the total project cost should be levied on them,” said petitioner Pradeep Dahaliya.
NGT has been seeking response from the developers/builders who are allegedly involved in the illegal groundwater extraction in Greater Noida.
Clarifying about the delay in their response in NGT, some of the counsel for builders told the tribunal in April that the notice was served at closed sites and the redirected notices were received late.
The case will now be heard for further proceedings on October 15, 2024.
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