Pune: NGT Slaps ₹7.36 Crore Environmental Compensation On Prayeja City I Developers
Pune: NGT Slaps ₹7.36 Crore Environmental Compensation On Prayeja City I Developers
Pune, February 18, 2026: The Western Bench of the National Green Tribunal (NGT) has imposed an environmental damage compensation (EDC) of ₹7.36 crore on the developers of Prayeja City-I for breaching mandatory environmental regulations, concluding a dispute that has been under litigation for several years.
In its order uploaded on February 17, the tribunal directed the project proponents to deposit the penalty within two months. The amount is to be paid to the Maharashtra Pollution Control Board (MPCB) and will be utilised for environmental restoration in the affected locality.
Responding to the ruling, Sandeep Jani, director of Prayeja Realty Private Limited, said he had not yet received the detailed order and would decide the next course of action after consulting the company’s legal advisors.
Prayeja City-I, a mixed residential and commercial development located at Wadgaon Budruk near Sinhagad Road, is being developed jointly by M/s Bhandari Gelada Associates LLP and M/s Prayeja Developers LLP. According to the tribunal, the project, which has a total built-up area of 56,292 square metres, was undertaken without obtaining prior environmental clearance, consent to establish, and consent to operate, as required under environmental laws.
The compensation pertains to violations spanning a five-year period before November 16, 2022. The EDC amount of ₹7,36,87,500 was calculated by the state pollution control board in accordance with the 2022 guidelines issued by the Central Pollution Control Board (CPCB). The tribunal found the assessment method to be appropriate and upheld the calculation.
The matter originated from a complaint filed in 2020 by Pune resident Tanaji Gambhire, who alleged environmental non-compliance at the project site. In October 2020, the NGT had formed a joint committee to examine the allegations and had directed the developers to deposit an interim compensation of ₹5 crore. That interim order was later challenged before the Supreme Court.
In January 2021, the Supreme Court set aside the interim penalty after recording an undertaking from the developers that further construction would proceed only after fulfilling all statutory requirements. The apex court then remitted the case back to the NGT for further consideration.
During the final hearing, the developers contended that compensation under the NGT Act could only be imposed for violations occurring within a five-year limitation period. The tribunal accepted this argument while determining the final penalty amount.
Regarding Prayeja City-II, the tribunal observed that its built-up area is below 20,000 square metres and therefore does not presently require prior environmental clearance. Consequently, no penalty has been levied on that project at this stage.
