{"id":94108,"date":"2004-05-07T00:00:00","date_gmt":"2004-05-06T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/m-c-mehta-vs-union-of-india-ors-on-7-may-2004"},"modified":"2016-12-20T20:32:56","modified_gmt":"2016-12-20T15:02:56","slug":"m-c-mehta-vs-union-of-india-ors-on-7-may-2004","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/m-c-mehta-vs-union-of-india-ors-on-7-may-2004","title":{"rendered":"M.C. Mehta vs Union Of India &amp; Ors on 7 May, 2004"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">M.C. Mehta vs Union Of India &amp; Ors on 7 May, 2004<\/div>\n<div class=\"doc_bench\">Bench: Y.K. Sabharwal, B.N. Agrawal<\/div>\n<pre>           CASE NO.:\nWrit Petition (civil)  4677 of 1985\n\nPETITIONER:\nM.C. MEHTA\n\nRESPONDENT:\nUNION OF INDIA &amp; ORS.\n\nDATE OF JUDGMENT: 07\/05\/2004\n\nBENCH:\nY.K. SABHARWAL &amp; B.N. AGRAWAL\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>2004 Supp(2) SCR 504<\/p>\n<p>[With Ia Nos.1206, 1204, 1205, 1224, In Wp (C) No.4677\/85, Ia No.1322 In Ia<br \/>\nNo.22 In Wp (C) No.4677\/85, Wp (C) No.98\/2000, Ia No.1367 In Ia No.22 In Wp<br \/>\n(C) No.4677\/85 Ia No.1816 In Wp (C) No.4677\/85, Ia No.1527 In Ia No.22 In<br \/>\nWp (C) No.4677\/85]<\/p>\n<p>The Judgment was delivered by : HON&#8217;BLE JUSTICEY. K. SABHARWAL<\/p>\n<p>Hon&#8217;ble Justice Y.K. SABHARWAL<\/p>\n<p>This case about unauthorized industrial activity in Delhi in residential<br \/>\narea has a protracted background. The present examination is confined to<br \/>\nthe issue of industrial activity in residential\/non-conforming areas to<br \/>\ndecide what directions may be issued to put an end to such illegal<br \/>\nactivity. As a result of orders passed from time to time, hazardous and<br \/>\nnoxious industries and heavy and large industries (&#8216;H&#8217; Category) have been<br \/>\nshifted out of Delhi. Some of extensive industries (&#8216;F&#8217; category) have also<br \/>\nbeen shifted out of Delhi. As per the State Government, non-polluting &#8216;F&#8217;<br \/>\ncategory industries have not been yet shifted. The question is what should<br \/>\nbe done about continued unauthorized use contrary to Master Plan and Zonal<br \/>\nPlan by remaining &#8216;F&#8217; category and &#8216;B&#8217; to &#8216;E&#8217; category (light and service<br \/>\nindustries) and household industries (&#8216;A&#8217; category industries). These<br \/>\nindustries are continuing in residential\/non-conforming areas. Such<br \/>\nactivity is mostly in residential areas. It is not in dispute that most of<br \/>\ncontinued industrial activity under consideration is in contravention of<br \/>\nlaw except only few household industries which are continuing in<br \/>\nresidential areas. To decide the question, it is necessary to first briefly<br \/>\nnotice orders passed by this Court during last about one decade.\n<\/p>\n<p>In the various orders passed in the year 1995, this Court noticed that a<br \/>\nlarge number of industries were located in residential\/non-conforming areas<br \/>\nin violation of the Delhi Master Plan formulated under the Delhi<br \/>\nDevelopment Act, 1957 (for short, &#8216;DD Act), Delhi Municipal Corporation<br \/>\nAct, 1957 (for short, &#8216;DMC&#8217; Act) and other statutory provisions. Noticing<br \/>\nthat the Master Plan stipulates setting up of industries only in conforming<br \/>\nareas, i.e., the industrial areas earmarked for that purpose, it was<br \/>\nindicated that the industries in non-conforming areas have to stop<br \/>\nfunctioning. The first concern of the Court was to stop the functioning of<br \/>\n&#8216;H&#8217; category industries, since most of it were discharging highly toxic<br \/>\naffluent. It was noticed that as per the affidavit filed by Mr. D.S. Negi,<br \/>\nSecretary (Environment), Government of Delhi, it was estimated that there<br \/>\nwere 93, 000 industries which were operating in Delhi and majority of these<br \/>\nwere in non-conforming use zones. Public notices by the Government invited<br \/>\nall industries operating in non-conforming use zone to give option to shift<br \/>\nto available industrial plots in the industrial estates. The response from<br \/>\nthe industry was very poor. The industries operating in Delhi were called<br \/>\nupon by issue of public notices in newspapers to furnish information in<br \/>\nrespect of the product manufactured, activity carried on, area, size,<br \/>\nnumber of persons employed, power load, year of commencement etc. Out of<br \/>\n93, 000 industries, only 513 industries and 382 persons responded. It was<br \/>\nnoticed that MCD was granting licences and registering various industrial<br \/>\nunits in non-conforming areas and permitting the industries to be set up in<br \/>\nresidential areas. Naturally, a surprise was expressed by this Court that<br \/>\non the one hand, the Court was issuing orders to reallocate the existing<br \/>\nindustries that were operating in the residential\/non-conforming areas and<br \/>\non the other hand MCD was permitting setting up of new industries in<br \/>\nresidential areas. According to the MCD, it was done under the directions<br \/>\nof the State Government. The MCD was directed not to register or grant<br \/>\nlicence to any industry in the non-conforming\/residential area.\n<\/p>\n<p>We may also make a brief reference to the orders that were passed in the<br \/>\nyear 1996. In the order dated 19th April, 1996, noticing the contention of<br \/>\nSolicitor General for India that certain household industries can be<br \/>\npermitted to operate not only in residential area but in residential<br \/>\npremises itself, the Court observed that the provisions of the Master Plan<br \/>\nhave to be complied with and in case any non-residential activity is<br \/>\npermitted in residential area under the Master Plan that cannot be stopped.<br \/>\nA High Powered Committee was constituted to examine which type of<br \/>\nindustries can be permitted in the residential area. The State Government<br \/>\nwas directed to issue public notices asking the industries which are<br \/>\noperating in different residential areas of Delhi to approach the Committee<br \/>\nfor necessary permission. It was also made clear that the industries which<br \/>\ndo not obtain permission shall have to stop functioning in residential area<br \/>\nw.e.f. January 1, 1997. It would be useful to extract the relevant part of<br \/>\nthe order dated 19th April, 1996 which reads as under :\n<\/p>\n<p>&#8220;We make it clear and direct that no industry in any residential area of<br \/>\nDelhi\/New Delhi shall be permitted unless it has obtained the clearance of<br \/>\nthe committee and has obtained the necessary licence and the consent from<br \/>\nthe statutory authorities. All those industries which have not obtained<br \/>\nnecessary permission from the committee shall stop operating in the<br \/>\nresidential area w.e.f January 1, 1997. We direct the NCT Delhi to give<br \/>\nwide publicity to this order so that the industries are in a position to<br \/>\nnote that they have to obtain the necessary clearance from the committee.<br \/>\nNeedless to say that while granting permission to an industry to run in a<br \/>\nresidential area, the committee shall keep in view all the conditions laid<br \/>\ndown under the Master Plan including evaluation of impact on municipal<br \/>\nservices and environment needs of the area&#8230;&#8221;\n<\/p>\n<p>The orders were also passed directing the Delhi Government to issue public<br \/>\nnotices in newspapers requiring the industries in residential\/non-<br \/>\nconforming areas to apply for allotment of plots in the Industrial Estate<br \/>\nand also giving undertaking that on such allotment they will shift from the<br \/>\nexisting place. The court thinking that the Delhi Government was now<br \/>\nseriously processing the project of relocating the industries operating in<br \/>\nthe residential\/non-conforming areas of Delhi, left the field for the<br \/>\nGovernment to act on its own and relocate the industry in terms of orders<br \/>\ndated 18th December, 1996. The Government was, however, directed to file<br \/>\nprogress report in this Court every three months.\n<\/p>\n<p>It is a matter of anguish that subsequent events show that the trust that<br \/>\nwas reposed by this Court on the Government was belied in terms of the<br \/>\naction to be taken for implementation of law, namely, the continuance of<br \/>\nindustrial activity in areas in question in conformity with the user<br \/>\nprescribed by the Master Plan. On 8th September, 1999, it was noticed that<br \/>\nthe progress report filed indicated that though some steps had been taken<br \/>\nbut the same had not been taken in the right earnest as a result of which<br \/>\nindustries are continuing to operate in the residential zone. The Court<br \/>\ndirected that if industries in the residential area cannot be shifted and<br \/>\nrelocated for any reason whatsoever by 31st December, 1999, then those<br \/>\nindustries shall be closed down. The Government was directed to give due<br \/>\npublicity in the newspapers so as to make the industry aware. On 10th<br \/>\nDecember, 1999, the State Government came up with an application (IA<br \/>\nNo.1206), inter alia, seeking modification of the order dated 8th<br \/>\nSeptember, 1999 and for extension of time upto March 2004 for shifting of<br \/>\nindustries which had been found eligible for allotment of alternate<br \/>\nindustrial accommodation under the &#8216;Relocation Scheme&#8217; subject to their<br \/>\nfunctioning in conformity with the pollution norms under the existing laws.<br \/>\nAs per what the Delhi Government itself says in this application, survey<br \/>\nconducted by Delhi Pollution Control Committee in the year 1995-96 showed<br \/>\nthat about 1, 26, 000 industrial units were functioning in Delhi out of<br \/>\nwhich approximately 1, 01, 000 were in residential\/non-conforming areas and<br \/>\nonly about 25, 000 in approved industrial areas. The application also<br \/>\nstates that in these 1, 01, 000 illegally operating industrial units, about<br \/>\n7, 00, 000 workers would be employed. It was stated that closure of these<br \/>\nindustries will result in hardship to approximately 7, 00, 000 families.\n<\/p>\n<p>The question would be can the Government plead such a justification for<br \/>\nviolation of law and throw to winds the norms of environments, health and<br \/>\nsafety or is it possible to help the workers even without violating law if<br \/>\nthere is a genuine will to do so. We would answer the question after<br \/>\nnoticing few further facts.In the application (IA 1206) it has been further<br \/>\nstated that out of 52, 000 applications received under the relocation<br \/>\nscheme in December, 1996, approximately 23, 000 have been found to be<br \/>\neligible. The prayer in the application also is that the industrial units<br \/>\nfunctioning in residential areas where concentration of industry is 70%,<br \/>\nshould be continued to operate from their existing location. The applicant<br \/>\nthus seeks INSITU regularization. According to the Government, about 15,<br \/>\n000 industrial units would fall in this category and another approximately<br \/>\n6, 000 industrial units may fall in the category of household industries<br \/>\n(&#8216;A&#8217; category)<\/p>\n<p>At the outset, it deserves to be noticed that assuming, for the present,<br \/>\nthat facts stated above by the Government are correct and the plea of<br \/>\nINSITU regularization is justified then, the immediate question would be as<br \/>\nto what steps were taken by it in respect of remaining illegal and<br \/>\nunauthorized industrial units, which number over 50, 000. The Government<br \/>\nhas no answer, let alone a satisfactory answer even despite lapse of nearly<br \/>\nfive years.\n<\/p>\n<p>Reference may also be made to the progress reports filed in this Court<br \/>\npursuant to the orders dated 18th December, 1996. The first report dated<br \/>\n31st March, 1997 sought extension of time for closure of those industries<br \/>\nwhich had applied for allotment of industrial plots\/flats and had submitted<br \/>\nthe requisite undertakings prescribed by this Court. For them extension was<br \/>\nasked for till such time the industrial accommodation with power<br \/>\nconnections were ready in newly constructed\/developed flatted factory<br \/>\ncomplexes\/industrial estates. Thus, the extension sought was for above<br \/>\ncategory of industrial units and not others. That being the position,<br \/>\nothers could continue the illegal industrial activity only because of<br \/>\ninaction by the Government. It is evidently total non-implementation of the<br \/>\nstatutory provisions. In yet another Report (for the period ending 31st<br \/>\nMarch, 1998), it was stated that survey of industries in all districts has<br \/>\nshown that in respect of 50, 704 industrial units, 21, 681 units have not<br \/>\napplied under the relocation scheme. The same question would again arise<br \/>\nwhy no action has been taken in respect of these industries. The scenario<br \/>\nis same in respect of the progress reports filed upto the period of 30th<br \/>\nSeptember, 1998 regarding the relocation of industries operating in<br \/>\nresidential\/non-conforming areas of Delhi.\n<\/p>\n<p>Before filing IA No.1206 of 1999 or at least in that application itself,<br \/>\nthe Government did not think it advisable to state what action it will take<br \/>\nagainst those who were not found eligible or those who did not even apply<br \/>\nand were continuing industrial activity in violation of law. Further, it<br \/>\ndid not state how many would fall in the category of INSITU regularization<br \/>\nand in &#8216;A&#8217; category industry. In this connection, reference may also be<br \/>\nmade to the observations in the order dated 8th February, 2001 that there<br \/>\nwas an unexplained figure of more than 32, 000 industries in non-conforming<br \/>\nareas which would not be covered by (i) INSITU regularization or (ii) fall<br \/>\nwithin the expected expanded definition of &#8216;household industry&#8217; or (iii)<br \/>\ncome under the category of industries which had applied and had been found<br \/>\neligible for allotment of land. It was noticed that no explanation was<br \/>\ngiven with regard to these industries continuing in the non-conforming<br \/>\nareas. The position after lapse of nearly 3 years is no better.\n<\/p>\n<p>Regarding the total number of industrial units functioning in<br \/>\nresidential\/non-conforming areas, different surveys have given different<br \/>\nfigures, as per the material placed before this Court by Government. There<br \/>\nis also no clarity as to the facts and figures regarding infrastructure<br \/>\netc. in respect of the industrial units being considered for INSITU<br \/>\nregularization. Although in the affidavit filed on 5th August, 2000 by the<br \/>\nPrincipal Secretary and the Commissioner of Industries of the Delhi<br \/>\nGovernment, it was stated that the Government had recommended INSITU<br \/>\nregularization, it has not been stated as to what is the position of the<br \/>\nwater, electricity and other facilities for the industries; what is the<br \/>\nplanning for remaining 30% residents as they may be deprived of<br \/>\nelectricity, water and other facilities on account of over drawl by the 70%<br \/>\nindustrial units. Whether 30% who are using the premises in accordance with<br \/>\nthe permissible use in the Master Plan must continue to suffer at the hands<br \/>\nof those who are functioning in violation of the Master Plan. This question<br \/>\nhas remained unanswered despite elaborate arguments spread over various<br \/>\ndates. On the aspect of INSITU regularization, the stand of the Delhi<br \/>\nDevelopment Authority, as contained in the affidavit of its Commissioner<br \/>\n(Planning) dated 11th September, 2000 was that the DDA was favourably<br \/>\nconsidering INSITU regularization with the following conditions :\n<\/p>\n<p>i) Building norms shall be the same as that for the residential premises.\n<\/p>\n<p>ii) Non-pollutant\/non-hazardous industries would be allowed to operate.\n<\/p>\n<p>iii) Augmentation of infrastructure as per requirement would be undertaken<br \/>\nto meet the growing demand as a result of conversion of these areas into<br \/>\nmanufacturing (light and service) household industries.\n<\/p>\n<p>Despite lapse of about 3 years, nothing significant, either in respect of<br \/>\ninfrastructure or the other conditions, has been done. The second Master<br \/>\nPlan of Delhi was enforced w.e.f. 1st August, 1990. In respect of &#8216;F&#8217;<br \/>\nCategory industries, it provides that no new industrial unit shall be<br \/>\npermitted except in the existing identified extensive industrial areas. In<br \/>\nrespect of such &#8216;F&#8217; category industries which were already existing in non-<br \/>\nconforming areas, the Master Plan provides that the said industrial units<br \/>\nshall be shifted to the permissible industrial use zone within a maximum<br \/>\nperiod of three years after the allotment of plots by various Government<br \/>\nagencies. On one hand, the Master Plan stipulates the shifting of existing<br \/>\n&#8216;F&#8217; category industrial units within a specified time limit and on the<br \/>\nother new industrial units have come up even after enforcement of the<br \/>\nMaster Plan and even in respect of such units the Government has not only<br \/>\nfailed to take action but has also failed to take a positive stand before<br \/>\nthis Court that immediate steps would be taken to stop such blatant<br \/>\nviolations. Further, when the Government is asked to give suggestions<br \/>\nregarding stoppage of functioning of these industrial units, the suggestion<br \/>\nthat comes forth is that the industrial units in residential\/non-conforming<br \/>\nareas which were set up after 1996 may be directed to stop the industrial<br \/>\nactivity contrary to the Master Plan. Those violators who had commenced<br \/>\nindustrial activity in residential\/non-conforming areas after 1st August,<br \/>\n1990 are also not being excluded from the proposal of INSITU<br \/>\nregularization.\n<\/p>\n<p>It is also necessary to note as to what stand from time to time the<br \/>\nMinistry of Urban Development has taken on the aspect of INSITU<br \/>\nregularization. In an affidavit dated 4th December, 2000 filed by its<br \/>\nDeputy Secretary, reliance has been placed by the Ministry upon the<br \/>\nstatement made by its Minister on the floor of the House on November 24,<br \/>\n2000. In that statement, opposing regularization, the Minister said as to<br \/>\nwhat Delhi we want to live, what type of legacy do we wish to bequeath to<br \/>\nposterity and to our children and grand children; Do we want our city to<br \/>\nbecome a junkyard of unauthorized constructions, mirroring civic and moral<br \/>\nchaos, or an orderly and disciplined capital of a Resurgent Republic,<br \/>\nembodying values of justice and honesty on the basis of which we have often<br \/>\nclaimed a pre-eminent position for our culture and civilization. The<br \/>\nstatement further gave facts and figures that 50 million gallons per day of<br \/>\nindustrial waste is going into the Yamuna and said that what is seen<br \/>\nflowing in it today is nothing but sewer and industrial waste. In Okhla<br \/>\nalone, for instance, during March-April, 2000, the bio-chemical oxygen<br \/>\ndemand (BOD) level in the river was about 70 mg. per litre as against a<br \/>\nstandard of 3 mg. per litre, i.e., 25 times more than the permissible<br \/>\nlevel. An apprehension was expressed that if the present attitudes and<br \/>\npractices persist, Delhi would run the risk of having as many as 30 million<br \/>\npeople in the next few years and becoming an ugly, unhealthy, unworkable<br \/>\nand unlivable city. In the process, a fatal blow would also be dealt to the<br \/>\ndevelopment of National Capital Region which comprises a substantial part<br \/>\nof three important neighbouring States of Haryana, Rajasthan and Uttar<br \/>\nPradesh. The affidavit states that in case of large number of residential<br \/>\ncolonies, with so called 70% concentration of industries of which the<br \/>\nentire land use is sought to be changed from residential to industrial,<br \/>\nshould the Master Plan be amended to destroy its very soul and structure or<br \/>\nsubvert the basic norms of health, habitation and environment or reward the<br \/>\nillegal establisher of industries and in the process penalize the law-<br \/>\nabiding residents and condemn them to stay for ever in industrial areas or<br \/>\nforce them to abandon their houses built with hard earned income? It also<br \/>\nstates that no one has made it clear where the residents would be taken,<br \/>\nwhat would be cost of resettlement, who will bear it and how the layouts<br \/>\nand pattern of services and infrastructure, meant for residential colonies,<br \/>\nwould be adjusted to the requirements of industries and consequent traffic<br \/>\nand transport that would flow not only in the colonies in question but also<br \/>\nin their neighbourhood.(Emphasis supplied is ours)<\/p>\n<p>In regard to the nature of survey that had been conducted resulting in the<br \/>\nproposal of INSITU regularization in areas having 70% concentration of<br \/>\nindustries, the affidavit states that demand to secure vital and large<br \/>\nscale changes in the Master Plan, which would have the effect of tearing<br \/>\nits entire fabric apart, is based upon the preliminary and perceptional<br \/>\nsurvey of three officers of the Industries Department of Government of<br \/>\nDelhi. The report itself calls the survey &#8216;preliminary&#8217;. The survey is<br \/>\nneither scientific, nor precise nor reliable. It does not even contain<br \/>\ndetailed particulars of industries &#8211; whether they are polluting or non-<br \/>\npolluting, licenced or unlicensed. The survey also does not indicate as to<br \/>\nhow many industrial units belong to those industrialists who may have<br \/>\nalready obtained the benefits of relocation once, either from the Delhi<br \/>\nDevelopment Authority or from the Industries Department or have secured<br \/>\nspace in flatted factories and have come back again to the non-conforming<br \/>\nareas, while keeping the alternative plots allotted to them for shifting,<br \/>\nor have set up additional unit or units in the residential areas.\n<\/p>\n<p>Now, let us see what Ministry says after about three years in its affidavit<br \/>\ndated 28th July, 2003. The guidelines for Master Plan for Delhi &#8211; 2021<br \/>\nissued by the Ministry were filed along with the said affidavit as also a<br \/>\nletter dated 28th July, 2003 sent by Secretary of the Ministry to the<br \/>\nChairman of DDA. The letter states that the Ministry has made broad<br \/>\nguidelines for the Master Plan which highlight some of concerns that need<br \/>\nresolution as well as possible policy initiatives so as to deal with the<br \/>\nproblem that affect Delhi. The letter further states that this should also<br \/>\naddress the issue of concentration of industries to the extent of 70% or<br \/>\nmore in some non-industrial areas. The guidelines noticed that a major<br \/>\nissue confronting the planned development of Delhi is the apparent and<br \/>\nfrequent violation of the planning and development and control norms. It<br \/>\nstates that there is a growing variation between the plan for Delhi and<br \/>\ncity on the ground and, therefore, it is essential that the Master Plan<br \/>\npolicies should be implementable in an effective manner and vigorously<br \/>\nenforced. The existing legal framework for enforcement of the Master Plan<br \/>\nprovisions including unauthorized construction and encroachment on public<br \/>\nland also needs examination so as to initiate proposals for its<br \/>\nstrengthening where necessary. In the guidelines, there is no specific<br \/>\nreference to regularization as such but evidently there is a slant in that<br \/>\ndirection in the stand of the Ministry. It is, however, nobody&#8217;s case that<br \/>\nany decision about regularization has been taken.\n<\/p>\n<p>Regularization cannot be done if it results in violation of right of life<br \/>\nenshrined in Article 21 of the Constitution. The question will have to be<br \/>\nconsidered not only from the angle of those who have set up industrial<br \/>\nunits in violation of the Master Plan but also others who are residents and<br \/>\nare using their premises as allowed by law. Further, the regularization<br \/>\naffects not only the remaining 30% residents of the areas wherein<br \/>\nregularization may be in contemplation but has affect on the entire area,<br \/>\nparticularly with respect to infrastructure available. In respect of the<br \/>\ninfrastructure in housing components, what provisions should be made has<br \/>\nbeen incorporated in the Master Plan &#8211; 2001 which has to be kept in view.<br \/>\nThe existing availability and projected need of water supply, sewerage,<br \/>\npower and solid waste has been indicated in the Master Plan. None has<br \/>\napplied his mind to any of these aspects.\n<\/p>\n<p>At first instance, a proposal for INSITU regularization in 15 areas was<br \/>\nconsidered. Now 24 areas are sought to be regularized. None of the<br \/>\naforesaid aspect regarding infrastructure has been considered before the<br \/>\nproposal was sent by the State Government and Delhi Development Authority<br \/>\nfor INSITU regularization to the Central Government. How can Government of<br \/>\nIndia agree in principle for INSITU regularisation in isolation without<br \/>\nanyone having examined the relevant considerations. It is evident that<br \/>\nrelevant aspects such as availability of sewerage, drainage, power and<br \/>\nwater have not been examined. Further, a perusal of the survey document<br \/>\nshows that many industrial activities were polluting in nature. The<br \/>\nproposal was considered by Delhi Development Authority on 20th December,<br \/>\n2002. The note dated 20th December, 2002 notices that a large number of<br \/>\nindustrial clusters are existing in various parts of the National Capital<br \/>\nTerritory of Delhi in contravention of land use provisions of the MPD &#8211;<br \/>\n2001 and thereby facing the problem in their continuance on their existing<br \/>\nsite and with a view to resolve this problem a policy needs to be evolved<br \/>\nfor regularization\/redevelopment of the said industrial clusters so that it<br \/>\nmay eventually be considered to be part of the MPD &#8211; 2021. It was decided<br \/>\nthat the redevelopment proposal could be formulated and taken up by forming<br \/>\ncooperative industrial society by the beneficiaries. Total redevelopment<br \/>\nwork will be undertaken by the cooperative society at their own cost.<br \/>\nChanges in land use and enhanced FAR facilities were directed to be paid to<br \/>\nthe concerned authorities by the society. All these proposals, without<br \/>\nexamination of the relevant consideration as noticed hereinbefore, were<br \/>\napproved and were forwarded to the Government of India. All this has<br \/>\nhappened despite the fact that the Ministry of Urban Development, in terms<br \/>\nof its letter dated 8th September, 2000 had informed the Delhi Development<br \/>\nAuthority that the change in the Master Plan was not justified. No detailed<br \/>\njustification for change of land use from residential to industrial and the<br \/>\nparameters on which such change would be based had been given. The matter<br \/>\nhas also not been discussed and deliberated with the Central Pollution<br \/>\nControl Board, Town and Country Planning Organisation and the Delhi Urban<br \/>\nArts Commission. It was not made clear as to what would happen to those who<br \/>\nare using their residential premises in accordance with the provisions of<br \/>\nthe Master Plan. The changes in the Master Plan or its norms to accommodate<br \/>\nillegal activities not only amount to getting reward for illegal activities<br \/>\nbut also results in punishing the law abiding citizens. We may refer to<br \/>\nanother letter dated 15th November, 2001 sent by the Ministry of Urban<br \/>\nDevelopment to Delhi Development Authority on the issue of INSITU<br \/>\nregularization stating that the issue of industrial housing, sanitation,<br \/>\ninfrastructure and adherence of polluting control norms have to be stressed<br \/>\nand detailed in such studies. DDA was also asked to consider whether such<br \/>\nareas where non-conforming industries are presently operating are isolated<br \/>\nblack spot in otherwise purely residential, semi-urban area or whether they<br \/>\nrepresent logical extension of existing industrial neighbourhood. It<br \/>\nreiterated that the quality of life, environment and the rights of the<br \/>\nresidents have to be highlighted in forefront.\n<\/p>\n<p>The question cannot be examined only from the angle of the industry or even<br \/>\nthose who are employed there in the said industries. It is imperative for<br \/>\nthe State Government, Delhi Development Authority as also the Government to<br \/>\naddress itself to the larger question of not only legalizing blatant<br \/>\nillegalities but as to what Delhi is intended to be left for the children<br \/>\nand future generation by permitting industrialisation in residential areas.<br \/>\nThe facts demonstrate that the State Government and Delhi Development<br \/>\nAuthority have been wholly remiss of all its functions, duties and<br \/>\nobligations. The Central Government, for the reasons which are not far to<br \/>\nseek, has been shifting its stand. As against a definite and positive stand<br \/>\ntaken in the years 2000 and 2001 and affidavits filed in this Court, there<br \/>\nis a shift in the stand in the affidavits filed in the years 2002 and 2003.<br \/>\nAs against the principled stand taken in the affidavits filed in the year<br \/>\n2000, now the stand in nutshell is that question would be considered when<br \/>\nMaster Plan for 2021 is finalized. There is no plausible answer to the<br \/>\nquestion as to why in the meanwhile the illegality should continue without<br \/>\nany action. In any case, as at present there is no regularization. The<br \/>\nindustrial activities in residential\/non-conforming zones are wholly<br \/>\nillegal.\n<\/p>\n<p>The Delhi Development Authority has to bear in mind that it has to perform<br \/>\nits function in accord with the provisions of the Delhi Development Act,<br \/>\n1957 which was enacted to provide for the development of Delhi according to<br \/>\nthe plan and for matters ancillary thereto. &#8216;Amenity&#8217;, as provided in<br \/>\nSection 2(a), includes road, water supply, street lighting, drainage,<br \/>\nsewerage, public works etc. &#8216;Building&#8217;, as provided in Section 2(b),<br \/>\nincludes any structure or erection or part of a structure or erection which<br \/>\nis intended to be used for residential, industrial, commercial or other<br \/>\npurposes, whether in actual use or not. The obligation to prepare a Master<br \/>\nPlan is contained in Section 7 of the DD Act. The Master Plan is required<br \/>\nto define the various zones into which Delhi may be divided for the<br \/>\npurposes of development and indicate the manner in which the land in each<br \/>\nzone is proposed to be used. The preparation of the zonal development plans<br \/>\nhas been provided for in Section 8. The said plans provide for the proposed<br \/>\nland use. The Town Planners are supposed to examine various aspects before<br \/>\npreparation of the Master Plan and Zonal Plan and providing the land use.<br \/>\nThe Act provides for a detailed procedure for modification of the Master<br \/>\nPlan and the Zonal Development Plan (Section 11-A). Section 14 forbids use<br \/>\nof land in contravention of the plans. It provides that no person shall use<br \/>\nor permit to be used any land or building otherwise than in conformity with<br \/>\nplan in a zone. Section 29(2) is a penal provision, inter alia, providing<br \/>\nfor the penalty on any person who uses any land or building in<br \/>\ncontravention of Section 14. Section 31-A is the power of the authority to<br \/>\nseal unauthorized development. The illegal industrialization in<br \/>\nresidential\/non-conforming area commenced and has continued and the<br \/>\nAuthority, the Governments and its agencies have been totally negligent in<br \/>\ndischarge of its functions and obligations under the provisions of the DD<br \/>\nAct.\n<\/p>\n<p>Regarding the non-setting up of Industrial Estates in Delhi what the<br \/>\nposition was in 1990, when the second Master Plan was enforced, is apparent<br \/>\nfrom the affidavit dated 2nd February, 2001 filed by the Commissioner<br \/>\n(Planning), Delhi Development Authority. Dealing with the question of<br \/>\nrelocation of non-conforming industries and the setting up of the<br \/>\nindustrial estate in Delhi, that affidavit states :\n<\/p>\n<p>&#8220;Master Plan for Delhi 2001 (MPD-2001), came in force on 1.8.1990,<br \/>\nstipulates earmarking 6 to 7% of land in urban extension and thus the<br \/>\ndevelopment of 16 new light industrial areas (1533 ha.) and another 263 ha.<br \/>\nfor extensive industrial area to be mainly utilized for shifting of<br \/>\nexisting incompatible industrial units. As per MPD-2001 in 1981 there were<br \/>\nabout 46, 000 industrial units out of which 8000 were in non-conforming<br \/>\nareas which were to be shifted. It was reassessed that about 24000<br \/>\nindustrial units will require shifting and by 2001 the total number of<br \/>\nindustrial units will be around 93000. MPD-2001 clearly stipulates that the<br \/>\naction for shifting of polluting industries is to be taken by Delhi<br \/>\nAdministration, as cited below :&#8217;Action shall be taken by Delhi<br \/>\nAdministration to prepare a list of individual noxious and hazardous<br \/>\nindustrial units to be shifted and depending on the polluting\/hazard,<br \/>\nadministration may force these industrial units to shift within a maximum<br \/>\nprescribed period of 3 years.&#8217;<\/p>\n<p>It further stipulates the following policy guidelines :\n<\/p>\n<p>? The hazardous and noxious industrial units are not permitted in Delhi.\n<\/p>\n<p>? No new heavy and large industrial units shall be permitted in Delhi.\n<\/p>\n<p>? No new acid, chemical and paints and varnish industrial units to be<br \/>\npermitted.\n<\/p>\n<p>? No new extensive industrial units shall be permitted except in existing<br \/>\nidentified extensive industrial areas. Existing non-conforming extensive<br \/>\nindustrial units shall be shifted to the extensive industrial use zone<br \/>\nwithin a maximum period of 3 years after the allotment of plots by various<br \/>\nGovernment Agencies.\n<\/p>\n<p>? Non-conforming light and service industrial units with 20 or more workers<br \/>\nshall be shifted to the industrial use zones within a maximum period of 3<br \/>\nyears after the allotment of plots and by providing necessary incentives by<br \/>\nthe various Government agencies in conforming use zones.&#8221;\n<\/p>\n<p>3. Delhi Administration vide Chief Secretary&#8217;s letter dated 17.9.1991<br \/>\naddressed to Vice Chairman, Delhi Development Authority conveyed that &#8216;it<br \/>\nis now the established policy of the Delhi Administration not to develop<br \/>\nany new industrial estates in the Union Territory of Delhi. All non-<br \/>\nconforming light and extensive industrial units would have to close<br \/>\ndown\/shift on their own to areas outside Delhi, as no more industrial areas<br \/>\nare to be developed and (b) further, that in the additional 2% area being<br \/>\nearmarked for service sectors\/establishments industrial activities<br \/>\ncontained in Annexure III-A, III-B and III-C of the revised Master Plan<br \/>\nwould be promoted&#8217;.&#8221;\n<\/p>\n<p>The affidavit further states that the matter was placed before the<br \/>\nAuthority in its meeting dated 7th July, 1992 and the proposal of the Delhi<br \/>\nAdministration with certain conditions was approved. The DDA resolved that<br \/>\nplanning for industrial activity may continue as envisaged under the Master<br \/>\nPlan of Delhi &#8211; 2001 at the rate of 6 to 7% of urban extension area. It<br \/>\nfurther states that pending the said policy decision, no new industrial<br \/>\ndevelopment was taken up and even the industrial area indicated in the<br \/>\ndevelopment plan of Dwarka (181 hectare) was reverted to commercial and<br \/>\nother land uses.\n<\/p>\n<p>In the light of the aforesaid, when even industrial area is reverted to<br \/>\ncommercial and other land use, we fail to understand :\n<\/p>\n<p>1. Why no action was taken to enforce the Master Plan and for stoppage of<br \/>\nthe functioning of the industries in the residential\/non-conforming areas;\n<\/p>\n<p>2. How the industries commenced and continued their illegal activity;\n<\/p>\n<p>3. How can the State Government regularize the illegality even without<br \/>\nexistence and consideration of availability of infrastructure and in<br \/>\ndisregard to the rights of the residents on the ground of 70% concentration<br \/>\nof industry in the concerned area(s).\n<\/p>\n<p>Further, in the light of the letter of the Chief Secretary dated 17th<br \/>\nSeptember, 1991, it is not open to the State Government to argue that for<br \/>\nwant of acquisition of the land, the industrial estates could not be<br \/>\ndeveloped. They had themselves written to DDA not to develop any new<br \/>\nindustrial estate in the Union Territory of Delhi. Even existing industrial<br \/>\narea, as above noted, was diverted. The State Government has been<br \/>\nrepeatedly taking time from the Court for the shifting of the offending<br \/>\nindustrial activity. If it was not the responsibility of the State<br \/>\nGovernment to shift the industry, what was the purpose of filing IA 1206\/99<br \/>\nseeking extension of time upto March 2004 and for seeking modification of<br \/>\nthe order dated 8th September, 1999 whereunder the industries were directed<br \/>\nto be closed by 31st December, 1999. Even at the cost of repetition, we may<br \/>\nagain note that for the present, we are examining the aspect of shifting of<br \/>\nindustries which have come up after 31st December, 1989 in residential\/non-<br \/>\nconforming areas. The letter dated 17th September, 1991 also states that<br \/>\nthe MCD announced its ad hoc registration policy in 1989 with the prior<br \/>\napproval of the Lt. Governor to grant ad hoc registration to units which<br \/>\nhad unauthorisedly established themselves in non-conforming areas till 31st<br \/>\nDecember, 1989. In this situation, we see no reasons why those units which<br \/>\nhave come up after 31st December, 1989 shall not be closed and sternly<br \/>\ndealt with. We are unable to find any equity in favour of such violators of<br \/>\nlaw.\n<\/p>\n<p>The regularization would also result in making the concept of NCR non-<br \/>\nfunctional and inoperative.\n<\/p>\n<p>The National Capital Region Planning Board Act, 1985 (for short, the &#8216;NCR<br \/>\nAct&#8217;) was enacted to provide for the constitution of a Planning Board for<br \/>\nthe preparation of a plan for the development of National Capital Region<br \/>\nand for coordinating and monitoring the implementation of such plan and for<br \/>\nevolving harmonized policies for the control of land uses and development<br \/>\nof infrastructure in the National Capital Region so as to avoid any<br \/>\nhaphazard development of that region and for matters connected therewith or<br \/>\nincidental thereto. The areas within the National Capital Region are<br \/>\nspecified in the Schedule to the NCR Act. National Capital Region comprises<br \/>\nthe area of entire Delhi, certain districts of Haryana, Uttar Pradesh and<br \/>\nRajasthan as provided in the Schedule. &#8216;Regional Plan&#8217; as provided in<br \/>\nSection 2(j) means the plan prepared under the NCR Act for development of<br \/>\nthe National Capital Region and for the control of land-uses and the<br \/>\ndevelopment of infrastructure in the National Capital Region. What the<br \/>\nRegional Plan shall contain is provided in Section 10. Section 10(2)<br \/>\nprovides that the Regional Plan shall indicate the manner in which the land<br \/>\nin the National Capital Region shall be used, whether by carrying out<br \/>\ndevelopment thereon or by conservation or otherwise, and such other matters<br \/>\nas are likely to have any important influence on the development of the<br \/>\nNational Capital Region and shall include the following elements needed to<br \/>\npromote growth and balanced development of the National Capital Region,<br \/>\nnamely :\n<\/p>\n<p>(a) the policy in relation to land-use and the allocation of land for<br \/>\ndifferent uses;\n<\/p>\n<p>(b) the proposals for major urban settlement pattern;\n<\/p>\n<p>(c) the proposals for providing suitable economic base for future growth;\n<\/p>\n<p>(d) the proposals regarding transport and communications including railways<br \/>\nand arterial roads serving the National Capital Region;\n<\/p>\n<p>(e) the proposals for the supply of drinking water and for drainage;\n<\/p>\n<p>(f) indication of the areas which require immediate development as<br \/>\n&#8220;priority areas&#8221;; and<\/p>\n<p>(g) such other matters as may be included by the Board with the concurrence<br \/>\nof the participating States and the Union territory for the proper planning<br \/>\nof the growth and balanced development of the National Capital Region.\n<\/p>\n<p>Section 27 provides that the provisions of the NCR Act shall have effect<br \/>\nnotwithstanding anything inconsistent therewith contained in any other law<br \/>\nfor the time being in force or in any instrument having effect by virtue of<br \/>\nany law other than the NCR Act; or in any decree or order of any Court,<br \/>\ntribunal or other authority.\n<\/p>\n<p>In exercise of power under Section 10 of the NCR Act, the Government of<br \/>\nIndia has prepared a Regional Plan &#8211; 2001 for National Capital Region as<br \/>\napproved by the National Capital Region Planning Board constituted under<br \/>\nSection 3(1) of the NCR Act. Besides others, the Union Minister for Works<br \/>\nand Housing as Chairman of the Board, the Chief Minister of Haryana,<br \/>\nRajasthan, Uttar Pradesh and Delhi are members of the said Board. Regional<br \/>\nPlan &#8211; 2001 recognises the unprecedented growth of Delhi and notices that<br \/>\nthe planned growth of Delhi is possible only in a regional context. In<br \/>\nfact, the need for regional approach was felt as early as 1959 when the<br \/>\ndraft Master Plan of 1962 recommended that a statutory National Capital<br \/>\nRegion Planning Board should be set up for ensuring balanced and harmonized<br \/>\ndevelopment of the Region.\n<\/p>\n<p>The aforesaid plan took into consideration the host of serious problems by<br \/>\nwhich Delhi was besieged and the causes of those problems and the genesis<br \/>\nof Delhi&#8217;s growth on account of rapid urbanization and ability to offer<br \/>\nwide opportunities for large scale employment through specialization and<br \/>\nincreased productivity in manufacturing and supporting services. It noticed<br \/>\nthat till 1951, Delhi was essentially an administrative center with a<br \/>\npopulation of 14.5 lakhs but, the expansion of industry, trade and commerce<br \/>\nproviding opportunities for economic development, in turn, began to<br \/>\ntransform its character from an administrative city to a multifunctional<br \/>\ncity and, exhibited a significant functional shift to industrial character<br \/>\nin 1981 when its population size became 57.3 lakhs, recording a growth of<br \/>\nabout 300% since 1951. It also notices that as Delhi grows, its problems of<br \/>\nland, housing, transportation and management of essential infrastructure<br \/>\nlike water supply and sewerage become more acute. The city lacks reliable<br \/>\nand adequate sources of water, and, thus, has to depend upon the adjoining<br \/>\nStates to meet its water supply requirements. The plan notices the need for<br \/>\nthe development policies, programmes and plans aiming to relieve Delhi from<br \/>\nadditional pressures and avoid adding new pressures. We may note that in<br \/>\nthe affidavit dated 29th September, 2000 filed by the Deputy Secretary of<br \/>\nthe Ministry of Urban Development, it was stated that those requiring plots<br \/>\nof more than 250 sq. metres would be accommodated in the National Capital<br \/>\nRegion where plots of very large size are available with all necessary<br \/>\ninfrastructure facilities. Further, the documents filed along with another<br \/>\naffidavit of the same officer dated 29th November, 2000 show the progress<br \/>\nof certain items of work as noticed in the meeting dated 21st September,<br \/>\n2000 of a cell that had been constituted by the Ministry of Urban<br \/>\nDevelopment which had been appointed as a nodal agency pursuant to the<br \/>\norder of this Court dated 12th September, 2000 in respect of the National<br \/>\nCapital Region. It states :\n<\/p>\n<p>&#8220;V. National Capital Region &#8211; InterfaceAn Interface amongst the<br \/>\nindustrialists of Delhi and those of the three National Capital Region<br \/>\nStates has been organized by the Ministry of Urban Development, through the<br \/>\nNational Capital Region Planning Board on September 30, 2000 at Vigyan<br \/>\nBhawan from 10.00 a.m. onwards. The basic objective of this Interface is to<br \/>\nfacilitate exchange of information amongst the industrialists of the<br \/>\nNational Capital Region and to acquaint them with the facilities that are<br \/>\navailable, including larger size of plots, lower cost of plots and<br \/>\navailability of auxiliary infrastructure in the shape of residential plots<br \/>\nand commercial plots.The Delhi industrialists would be made aware of the<br \/>\nfact that many big industrial houses like Sony, Daewoo Motors etc., are<br \/>\nsetting up their industries in the National Capital Region States and this<br \/>\nwould give rise to demand for ancillary industries. The representatives of<br \/>\nHaryana State Industrial Development Corporation (HSIDC), UP State<br \/>\nIndustrial Development Corporation (UPSIDC) and Rajasthan State Industrial<br \/>\nDevelopment &amp; Investment Corporation (RIICO) would also be attending the<br \/>\nInterface and would indicate the loan facilities that would be made<br \/>\navailable.\n<\/p>\n<p>The National Capital Region Planning Board has facilitated development of<br \/>\n1, 14, 000 residential plots, 17, 000 commercial plots\/office space and 10,<br \/>\n000 industrial plots\/sheds in the National Capital Region.&#8221;\n<\/p>\n<p>In the affidavit dated 4th December, 2000 of the same officer, it has been<br \/>\nstated as under :\n<\/p>\n<p>&#8220;That at the said INTERFACE an exhibition was also organized, where the<br \/>\nagencies of three State Governments &#8211; Haryana, Rajasthan and Uttar Pradesh\n<\/p>\n<p>&#8211; displayed their information in respect of availability of plots as well<br \/>\nas of industrial infrastructure. It was indicated that over 6, 000<br \/>\nindustrial plots of various sizes, ranging from 100 to 1 lakh Sq. Mtrs.<br \/>\nwere available for immediate allotment. Some of these plots were of very<br \/>\nlarge sizes and they could be sub-divided to create a larger number of<br \/>\nplots.\n<\/p>\n<p>That, another meeting of senior officers of the State Governments of three<br \/>\nNational Capital Region States and their Resident Commissioners was called<br \/>\nby the Union Urban Development Minister on November 30, 2000. In this<br \/>\nmeeting, the Government of Haryana indicated that besides vacant plots<br \/>\nalready developed in industrial estates it would, if required, develop 14,<br \/>\n487 acres of land separately and make available as many as 80, 000 plots of<br \/>\naverage size of 500 sq. mtrs. The necessary infrastructure is either<br \/>\navailable or can be made available in a short time.&#8221;\n<\/p>\n<p>The material on record shows that the National Capital Regional Planning<br \/>\nBoard has been taking initiative to encourage the shifting of the<br \/>\nindustries to National Capital Region. It appears that in January 2001,<br \/>\nnumber of plots were available in the States of Rajasthan, Haryana and<br \/>\nUttar Pradesh for industries to shift. The industry was also informed that<br \/>\nlarge plots can be further sub-divided to accommodate more number of small<br \/>\nunits. It does not, however, appear that any significant interest was shown<br \/>\nby the industry. We are not suggesting that there are no problems but the<br \/>\nsame are not insurmountable and can be sorted out. There is no obligation<br \/>\nto provide alternative plots to those who illegally commenced industrial<br \/>\nactivity. The second Master Plan stipulates to provide alternate plots only<br \/>\nto those who had set up industrial units upto 31st December, 1989. As<br \/>\nalready observed earlier, presently we are concerned with shifting of the<br \/>\nindustries which were set up from the year 1990 onwards contrary to the<br \/>\npermissible use in the Master Plan. It is a matter for Government to decide<br \/>\nif it wants to provide alternative industrial plots to those who illegally<br \/>\ncommenced that activity but that cannot further delay the closing of<br \/>\ncontinuing illegal industrial activity. In our view, lack of action and<br \/>\ninitiative by the authorities is the main reason for the industry merrily<br \/>\ncontinuing illegal activity. There is total lack of enforcement of law by<br \/>\nthe concerned authorities.\n<\/p>\n<p>Regarding the availability of alternate industrial plots, it may be useful<br \/>\nto notice the plots that are available in the National Capital Region. The<br \/>\naffidavit filed on 8th May, 2003 on behalf of the NCR Planning Board states<br \/>\nthat plots on 2433.63 acres of land in the National Capital Region were<br \/>\navailable. If there are teething problems, it is for the concerned<br \/>\nauthorities to sort out the same.\n<\/p>\n<p>Laghu Udyog Bharati, an association of small scale industries, has taken<br \/>\nthe stand that the Government has been issuing ad hoc licences and<br \/>\ncollecting taxes from industrial units which would show that the industries<br \/>\nwere working within the knowledge and consent of the Government. The stand<br \/>\ntaken is that since the industries were working with the consent of the<br \/>\nGovernment, it cannot be said that the use by industries is non-conforming.<br \/>\nThe stand is wholly misconceived. An illegality would not become a legality<br \/>\non inaction or connivance of the Government authorities. There cannot be<br \/>\nany doubt that non-conforming industrial activities could not have<br \/>\ncommenced or continued at such a large scale in the capital of the country<br \/>\nif the Government and the concerned authorities had performed their<br \/>\nfunctions and obligations under various statutes. But such a situation<br \/>\ncannot be permitted to continue forever so as to reach a point of no<br \/>\nreturn, where the chaotic situation in city has already reached. The law-<br \/>\nbreakers, namely, the industries cannot be absolved of the illegalities<br \/>\nonly on the ground of inaction by the authorities. It would be useful to<br \/>\nnote as to what is stated in the affidavit of the President of the<br \/>\naforesaid association. It reads :\n<\/p>\n<p>&#8220;The chaotic situation existing today would not have developed had the<br \/>\nauthorities carried out their duties and taken steps to develop industrial<br \/>\nareas as provided for in the MPD-62 as well as the MPD-2001. For the<br \/>\nreasons best known to the authorities, the planned development of Delhi was<br \/>\nnever undertaken. On the other hand, they were busy in granting ad hoc<br \/>\nlicenses for non-conforming areas, electricity connections, water<br \/>\nconnections, collecting electricity, water, property tax at commercial<br \/>\nrates; collection of Sales Tax and Excise from these industries, which were<br \/>\ncoming up. Had the concerned authorities discharged their duties casted<br \/>\nupon them by the two Master Plans, the legal and statutory document for the<br \/>\nplanned development of Delhi to which they were duty bound to perhaps the<br \/>\nsituation, which Delhi is in today, would not have arisen.&#8221;\n<\/p>\n<p>(Emphasis has been supplied by us)<\/p>\n<p>The affidavit further states that &#8220;That it is respectfully submitted that<br \/>\ntill today not only MCD, but also D.V.B., Water Department, Excise and<br \/>\nSales-tax Departments, Factory Departments, Provident Fund and ESI<br \/>\nDepartment have been recognizing the existence of the industries in the<br \/>\nnon-conforming areas and in total each industry is being visited by 53<br \/>\ndepartmental inspectors of the Government.&#8221;\n<\/p>\n<p>From the facts noticed above, it is evident that a casual approach was<br \/>\nadopted in recommending INSITU regularization.\n<\/p>\n<p>A report of group of experts set up for determining polluting industries<br \/>\namongst list of 54 &#8216;F&#8217; category industries under the MPD &#8211; 2001 reported<br \/>\nthat the industrial processes involving or using electroplating, dyeing,<br \/>\npickling, anodizing, coal fired boilers, forging and casting are polluting<br \/>\nin nature and recommended a list of 33 activities to be polluting. The<br \/>\nreport is filed along with the affidavit dated 5th February, 2001 of<br \/>\nCommissioner of Industries of the Delhi Government. The proposal for INSITU<br \/>\nregularization, however, does not even exclude the industries carrying the<br \/>\nsaid activities from regularization. Further the proposal does not state<br \/>\nwhat manufacturing activities are being carried on in 24 areas where the<br \/>\nregularization was contemplated. In fact, in respect of the areas where<br \/>\nINSITU regularization is under contemplation, many manufacturing activities<br \/>\neven going by the report of the group of experts, would be polluting. All<br \/>\nthis shows total non-application of mind.\n<\/p>\n<p>In respect of a large number of unauthorized industrial activities in non-<br \/>\nconforming areas, the Municipal Authorities have expressed helplessness in<br \/>\ntaking action on the apprehension of breakdown of law and order in areas.<br \/>\nThe Municipalities have constitutional responsibilities of town planning.<br \/>\nPart IX-A was inserted by Constitution (74th Amendment) Act, 1992 w.e.f.<br \/>\n1st June, 1993. Article 243W provides for the powers, authority and<br \/>\nresponsibilities of the Municipalities etc. Article 243W reads as under :\n<\/p>\n<p>&#8220;243W. Powers, authority and responsibilities of Municipalities, etc.-<br \/>\nSubject to the provisions of this Constitution, the Legislature of a State<br \/>\nmay, by law, endow-\n<\/p>\n<p>(a) the Municipalities with such powers and authority as may be necessary<br \/>\nto enable them to function as institutions of self-government and such law<br \/>\nmay contain provisions for the devolution of powers and responsibilities<br \/>\nupon Municipalities, subject to such conditions as may be specified<br \/>\ntherein, with respect to-\n<\/p>\n<p>(i) the preparation of plans for economic development and social justice;\n<\/p>\n<p>(ii) the performance of functions and the implementation of schemes as may<br \/>\nbe entrusted to them including those in relation to the matters listed in<br \/>\nthe Twelfth Schedule;\n<\/p>\n<p>(b) the Committees with such powers and authority as may be necessary to<br \/>\nenable them to carry out the responsibilities conferred upon them including<br \/>\nthose in relation to the matters listed in the Twelfth Schedule.&#8221;\n<\/p>\n<p>The Municipal Corporation has the responsibility in respect of matters<br \/>\nenumerated in 12th Schedule of the Constitution of India, regulation of<br \/>\nland use, public health, sanitation, conservancy, solid waste management<br \/>\nbeing some of them. Section 345 of the MCD Act contains the power of the<br \/>\nCommissioner to seal. Section 416(1) provides that no person shall, without<br \/>\nthe previous permission in writing of the Commissioner, establish in any<br \/>\npremises, or materially alter, enlarge or extend, any factory, workshop or<br \/>\ntrade premises in which is intended to employ steam, electric, water or<br \/>\nother mechanical power. Section 417(1) stipulates that no person shall use<br \/>\nor permit to be used premises for any of the following purposes without or<br \/>\notherwise than in conformity with the terms of a licence granted by the<br \/>\nCommissioner in this behalf, namely :\n<\/p>\n<p>(a) any of the purposes specified in Part I of the Eleventh Schedule;\n<\/p>\n<p>(b) any purpose which is, in the opinion of the Commissioner dangerous to<br \/>\nlife, health or property or likely to create a nuisance;\n<\/p>\n<p>(c) keeping horses, cattle or other quardruped animals or birds for<br \/>\ntransportation, sale or hire or for sale of the produce hereof; or<\/p>\n<p>(d) storing any of the article specified in Part II of the Eleventh<br \/>\nSchedule except for domestic use of any of those articles.\n<\/p>\n<p>Section 461 provides for punishment for certain offences. Part I of the<br \/>\n11th Schedule of the MCD Act provides the purposes for which the premises<br \/>\nmay not be used without a licence. The 12th Schedule provides for various<br \/>\npenalties, i.e., fine and imprisonment which may be imposed on<br \/>\ncontravention of various provisions of the MCD Act. It does not lie in the<br \/>\nmouth of the Corporation to plead helplessness to carry out<br \/>\nresponsibilities and obligations under the MCD Act. The sealing of the<br \/>\npremises was done in two phases, i.e., on 7th January 2001 and in second<br \/>\nphase as on 3rd March, 2001. Out of nearly 35, 522, only 5, 139 units were<br \/>\nsealed. It has not been explained whether any sealing was done in the areas<br \/>\nnow under the contemplation for regularization on the ground of 70%<br \/>\nindustrial concentration. The Delhi Government and DDA have also not<br \/>\nexplained that while arriving at figure of 70% industrial concentration,<br \/>\nthe industries which were not operating or those premises which were lying<br \/>\nvacant or those which were sealed in phase 1 and 2, were taken into<br \/>\nconsideration or not. These questions arise since the survey conducted by<br \/>\nthe MCD in some of the areas show that large number of premises were lying<br \/>\nvacant and\/or no industrial activity was going on. Further, the survey also<br \/>\nshows that many industries were carrying on industrial activity which was<br \/>\nper se polluting. In Virender Gaur &amp; Ors. v. State of Haryana &amp; Ors. [ 1995<br \/>\n(2) SCC 577 ], referring to principle No.1 of Stockholm Declaration of<br \/>\nUnited Nations on Human Environment, 1972, this Court observed that right<br \/>\nto have living atmosphere congenial to human existence is a right to life.<br \/>\nThe State has a duty in that behalf and to shed its extravagant unbridled<br \/>\nsovereign power and to forge in its policy to maintain ecological balance<br \/>\nand hygienic environment. Where in the Zonal plan, a land is marked out and<br \/>\nreserved for park or recreational purpose, it cannot be allotted for<br \/>\nbuilding purpose though housing is a public purpose. Further, it was<br \/>\nobserved that though the Government has power to give directions, that<br \/>\npower should be used only to effectuate and further goals of the approved<br \/>\nscheme, Zonal plans etc. and the land vested under the Scheme or reserved<br \/>\nunder the plan would not be directed to be used for any other public<br \/>\npurposes within the area envisaged thereunder. Dealing with the contention<br \/>\nthat two decades had passed, it was held that self-destructive argument to<br \/>\nput a premium on inaction cannot be accepted.\n<\/p>\n<p><a href=\"\/doc\/1937304\/\">In M.I. Builders Pvt. Ltd. v. Radhey Shyam Sahu &amp; Ors.<\/a> [ 1999 (6) SCC 464<br \/>\n], this Court observed that no consideration should be shown to a builder<br \/>\nor any other person where the construction is unauthorized. Judicial<br \/>\ndiscretion cannot be guided by expediency. Courts are not free from<br \/>\nstatutory fetters. Justice is to be rendered in accordance with law.<br \/>\nJudicial discretion wherever it is required to be exercised has to be in<br \/>\naccordance with law and set legal principles. Judicial review is<br \/>\npermissible if the impugned action is against law or in violation of the<br \/>\nprescribed procedure or is unreasonable, irrational or mala fide. In para<br \/>\n73, this Court reiterated that in numerous decisions, it has been held that<br \/>\nno consideration should be shown to the builder or any other person where<br \/>\nconstruction is unauthorized. This dicta is now almost bordering the rule<br \/>\nof law. A discretion which encourages illegality or perpetuates an<br \/>\nillegality cannot be exercised. In M.I. Builders pvt. Ltd. v. Radhey Shyam<br \/>\nSahu &amp; Ors. [ 1999 (6) SCC 532 ], this Court declined to come to the aid of<br \/>\na law-violator.\n<\/p>\n<p>In Administrator, Nagar Palika v. Bharat &amp; Ors. [ 2001 (9) SCC 232 ], this<br \/>\nCourt observed that public interest has to be understood and interpreted in<br \/>\nthe light of the entire scheme, purpose and object of the enactment. The<br \/>\nhazard to health and environment of not only the persons residing in the<br \/>\nillegal colonization area but of the entire town as well as the provision<br \/>\nand scheme of the Act had to be taken into consideration.\n<\/p>\n<p><a href=\"\/doc\/518139\/\">In Faqir Chand &amp; Anr. v. Shri Ram Rattan Bhanot &amp; Anr.<\/a> [ 1973 (1) SCC 572<br \/>\n], dealing with use of premises in Delhi by a tenant contrary to the<br \/>\npurpose for which it could be used in terms of the lease between the<br \/>\nlandlord and the paramount lessor, this Court observed, while dealing with<br \/>\na landlord-tenant dispute that the policy of the Legislature seems to be to<br \/>\nput an end to unauthorized use of leased land rather than merely to enable<br \/>\nthe authorities to get back possession of the leased lands. While dealing<br \/>\nwith the provisions of DD Act and clause (k) of proviso to sub-section (1)<br \/>\nof section 14 of the Delhi Rent Control Act, 1958, it was noticed that the<br \/>\nLegislature has clearly taken note of the fact that the enormous extents of<br \/>\nland have been leased by the three authorities mentioned in that clause,<br \/>\nand has expressed by means of this clause its anxiety to see that these<br \/>\nlands are used for the purpose for which they were leased. It was also<br \/>\nobserved that the authority may not be prepared to accept compensation but<br \/>\nmight insist upon cessation of the unauthorized use. Since the most of the<br \/>\nland used for industrial purpose in residential\/non-conforming areas is<br \/>\nleased land, it was even open to the authorities to cancel the lease on<br \/>\naccount of the misuser.\n<\/p>\n<p><a href=\"\/doc\/955654\/\">In Dr. K. Madan v. Krishnawati (Smt.) &amp; Anr.<\/a> [ 1996 (6) SCC 707 ], it was<br \/>\nheld that observations made in <a href=\"\/doc\/1472390\/\">Punjab National Bank v. Arjun Dev Arora &amp;<br \/>\nOrs.<\/a> [ 1986 (4) SCC 660 ] to the effect that as long as the penalty for<br \/>\nwrongful user is continued to be paid, the deviation of user could be<br \/>\npermitted, do not appear to be in consonance with the decision of the<br \/>\nlarger Bench in Faqir Chand&#8217;s case (supra). On one hand, we have the<br \/>\ndecisions observing that merely by payment of penalty, continued misuser<br \/>\ncannot be permitted and on the other the misuser commenced and continued<br \/>\ncontrary to the land use under the nose of the authorities without any<br \/>\naction being taken.\n<\/p>\n<p><a href=\"\/doc\/979385\/\">In V.M. Kurian v. State of Kerala &amp; Ors.<\/a> [ 2001 (4) SCC 215 ], while<br \/>\nquashing the order passed by the State Government exempting the provisions<br \/>\nof Kerala Building Rules, 1984 for constructing an eight storeyed building<br \/>\ncontrary to the mandatory provisions of the Rules, it was observed that the<br \/>\nRules were mandatory in nature and are required to be complied with. The<br \/>\nconstruction of high-rise building and observance and compliance thereof is<br \/>\nfor public safety and convenience. There cannot be relaxation of the Rules<br \/>\nwhich are mandatory in nature and cannot be dispensed with especially in<br \/>\nthe use of a high-rise building.In the present case, the land cannot be<br \/>\npermitted to be used contrary to the stipulated user except by amendment of<br \/>\nthe Master Plan after due observance of the provisions of the Act and the<br \/>\nRules. Non taking of action by the Government amounts to indirectly<br \/>\npermitting the unauthorized use which amounts to the amendment of the<br \/>\nMaster Plan without following due procedure.\n<\/p>\n<p>In this very matter, dealing with the industries of &#8216;H&#8217; category which now<br \/>\nstand shifted pursuant to the order of this Court, it is pertinent to note<br \/>\nwhat a three Judge Bench of which one of us (B.N. Agrawal, J.) was a member<br \/>\nsaid in relation to entrepreneurial failure and total apathy non-concern<br \/>\nfor social good and benefit by the authorities as under :\n<\/p>\n<p>&#8220;The issues are long pending &#8211; the issues are urgent since the entire<br \/>\nsociety is impaired &#8211; no exception can be taken to the legal battles<br \/>\ninvolved in an adversarial litigation &#8211; this is not one such instance : it<br \/>\nis a true public interest litigation for the protection of the society and<br \/>\nto avoid a deliberate peril arising out of entrepreneurial failure and<br \/>\ntotal apathy and non-concern for social good and benefit. The Delhi<br \/>\nDevelopment Act of 1957 envisaged preparation of a Master Plan for Delhi<br \/>\nwith a definite statutory direction to define various zones into which<br \/>\nDelhi may be divided for the purposes of development and the manner in<br \/>\nwhich the land in each zone is proposed to be used and the stages by which<br \/>\nsuch development shall be carried out. As a matter of fact the Master Plan<br \/>\ncame into existence in 1962 and &#8216;H&#8217; category industries ought to have<br \/>\nshifted out of the area specified therein by 1962 itself. Then came the<br \/>\nMaster Plan of 1990 to combat the existing situation with a specified<br \/>\nperiod of shifting within three years i.e. there was an obligation on the<br \/>\n&#8216;H&#8217; category industries to shift and relocate in terms of the Master Plan<br \/>\nby the year 1993 and the social activist by reason of the failure of the<br \/>\nentrepreneurs, moved this Court in 1995 whereupon, after allowing all<br \/>\npossible opportunities to all entrepreneurs and upon assessment of the<br \/>\nsituation through the appointments of commissions and obtaining various<br \/>\nreports on these aspects, passed the order on 10-5-1996 {<a href=\"\/doc\/1208005\/\">M. C. Mehta v.<br \/>\nUnion of India<\/a> [(1996) 4 SCC 351]} which has till date not been complied<br \/>\nwith &#8211; indeed a sorry state of affairs and a total neglect and apathy<br \/>\ntowards the society, new and novel submissions are advanced as in any<br \/>\nadversarial litigation but unfortunately as noticed above it is too late in<br \/>\nthe day to contend otherwise, apart from what the order contains as of<br \/>\n10-5-1996 {<a href=\"\/doc\/1208005\/\">M. C. Mehta v. Union of India<\/a> [(1996) 4 SCC 351)]}.&#8221;\n<\/p>\n<p>In Indian Council for <a href=\"\/doc\/1818014\/\">Enviro-Legal Action &amp; Ors. v. Union of India &amp; Ors.<\/a> [<br \/>\n1996 (3) SCC 212 ], this Court was concerned with a public interest writ<br \/>\npetition filed by an environmentalist association alleging environmental<br \/>\npollution caused by private industrial units. It was held that the writ<br \/>\npetition is not really for issuance of appropriate writ, order or<br \/>\ndirections against the units\/factories which were running polluting<br \/>\nindustries and had not even installed any equipment for treatment of highly<br \/>\ntoxic effluents by them, but is directed against Union of India, Government<br \/>\nof Rajasthan and Rajasthan Pollution Control Board to compel them to<br \/>\nperform their statutory duties which they had failed to carry out and<br \/>\nthereby seriously undermined the right of life of the residents of Bichhri<br \/>\nand the affected area guaranteed by Article 21 of the Constitution. If this<br \/>\nCourt finds that the authorities had not taken action required of them by<br \/>\nlaw and that their inaction is jeopardising the right to life of the<br \/>\ncitizens of this country or any section thereof, it is the duty of this<br \/>\nCourt to intervene. If it is found that the respondents are flouting the<br \/>\nprovisions of law and the directions and orders issued by the lawful<br \/>\nauthorities, this Court can certainly make appropriate directions to ensure<br \/>\ncompliance with law and lawful directions made thereunder. If an industry<br \/>\nis established without obtaining the requisite permission and clearances<br \/>\nand if the industry is continued to be run in blatant disregard of law to<br \/>\nthe detriment of life and liberty of the citizens living in the vicinity,<br \/>\ncan it be suggested with any modicum of reasonableness that this Court has<br \/>\nno power to intervene and protect the fundamental right to life and liberty<br \/>\nof the citizens of this country.\n<\/p>\n<p>We may also recall what the Constitution Bench said in Oleum Gas Leak case<br \/>\n{<a href=\"\/doc\/1208005\/\">M.C. Mehta v. Union of India<\/a> [ 1987 (1) SCC 395 ]} in relation to<br \/>\nhazardous or inherently dangerous industry, and we quote :\n<\/p>\n<p>&#8220;We are of the view that an enterprise which is engaged in a hazardous or<br \/>\ninherently dangerous industry which poses a potential threat to the health<br \/>\nand safety of the persons working in the factory and residing in the<br \/>\nsurrounding areas owes an absolute and non-delegable duty to the community<br \/>\nto ensure that no harm results to anyone on account of hazardous or<br \/>\ninherently dangerous nature of the activity which it has undertaken. The<br \/>\nenterprise must be held to be under an obligation to provide that the<br \/>\nhazardous or inherently dangerous activity in which it is engaged must be<br \/>\nconducted with the highest standards of safety and if any harm results on<br \/>\naccount of such activity, the enterprise must be absolutely liable to<br \/>\ncompensate for such harm and it should be no answer to the enterprise to<br \/>\nsay that it had taken all reasonable care and that the harm occurred<br \/>\nwithout any negligence on its part. Since the persons harmed on account of<br \/>\nthe hazardous or inherently dangerous activity carried on by the enterprise<br \/>\nwould not be in a position to isolate the process of operation from the<br \/>\nhazardous preparation of substance or any other related element that caused<br \/>\nthe harm the enterprise must be held strictly liable for causing such harm<br \/>\nas a part of the social cost of carrying on the hazardous or inherently<br \/>\ndangerous activity. If the enterprise is permitted to carry on an hazardous<br \/>\nor inherently dangerous activity for its profit, the law must presume that<br \/>\nsuch permission is conditional on the enterprise absorbing the cost of any<br \/>\naccident arising on account of such hazardous or inherently dangerous<br \/>\nactivity as an appropriate item of its overheads. Such hazardous or<br \/>\ninherently dangerous activity for private profit can be tolerated only on<br \/>\ncondition that the enterprise engaged in such hazardous or inherently<br \/>\ndangerous activity indemnifies all those who suffer on account of the<br \/>\ncarrying on of such hazardous or inherently dangerous activity regardless<br \/>\nof whether it is carried on carefully or not.\n<\/p>\n<p>&#8230; We would therefore hold that where an enterprise is engaged in a<br \/>\nhazardous or inherently dangerous activity and harm results to anyone on<br \/>\naccount of an accident in the operation of such hazardous or inherently<br \/>\ndangerous activity resulting, for example, in escape of toxic gas the<br \/>\nenterprise is strictly and absolutely liable to compensate all those who<br \/>\nare affected by the accident and such liability is not subject to any of<br \/>\nthe exceptions which operate vis-a-vis the tortious principle of strict<br \/>\nliability under the rule in Rylands v. Fletcher [(1868) LR 3 HL 330].We<br \/>\nwould also like to point out that the measure of compensation in the kind<br \/>\nof cases referred to in the preceding paragraph must be correlated to the<br \/>\nmagnitude and capacity of the enterprise because such compensation must<br \/>\nhave a deterrent effect. The larger and more prosperous the enterprise, the<br \/>\ngreater must be the amount of compensation payable by it for the harm<br \/>\ncaused on account of an accident in the carrying on of the hazardous or<br \/>\ninherently dangerous activity by the enterprise.&#8221;\n<\/p>\n<p>We may note that some of the industrial activities like the plastic<br \/>\nindustry are inherently dangerous and is being carried on in<br \/>\nresidential\/non-conforming areas. Such industrial activity is also carried<br \/>\non in areas in respect whereof regularization is under contemplation<br \/>\nallegedly on account of 70% concentration of industrial activity in the<br \/>\nresidential area. These facts are evident from the material placed by the<br \/>\nrespondents themselves before this Court.The growth of illegal<br \/>\nmanufacturing activity in residential areas has been without any check and<br \/>\nhindrance from the authorities. The manner in which such large scale<br \/>\nviolations have commenced and continued leaves no manner of doubt that it<br \/>\nwas not possible without the connivance of those who are required to ensure<br \/>\ncompliance of law and reasons are obvious. Such activities result in<br \/>\nputting on extra load on infrastructures. The entire planning has gone<br \/>\ntotally haywire. The law abiders are sufferers. All this has happened at<br \/>\nthe cost of health and decent living of the residents of the city violating<br \/>\ntheir constitutional rights enshrined under Article 21 of the Constitution<br \/>\nof India . Further, it is necessary to bear in mind that the lawmakers<br \/>\nrepose confidence in the authorities that they will ensure implementation<br \/>\nof the laws made by them. If the authorities breach that confidence and act<br \/>\nin dereliction of their duties, then the plea that the observance of law<br \/>\nwill now have an adverse effect on the industry or the workers cannot be<br \/>\nallowed. Within the framework of law, keeping in view the norms of<br \/>\nenvironment, health and safety, the Government and its agencies, if there<br \/>\nwas genuine will, could help the industry and workers by relocating<br \/>\nindustries by taking appropriate steps in last about 15 years. On the other<br \/>\nhand, it encouraged illegal activities.\n<\/p>\n<p>It may be noticed that the proposal of INSITU regularization has also been<br \/>\nopposed by the National Regional Board which has pointed out that the very<br \/>\npurpose of the Act would be defeated by such regularization. It would lead<br \/>\nto further congestion of Delhi instead of decongestion which was the very<br \/>\npurpose for which the Act was enacted. Mr. Mukul Rohtagi, learned<br \/>\nAdditional Solicitor General appearing for Municipal Corporation of Delhi,<br \/>\nMrs. Sheela Sethi, learned counsel appearing for National Regional Board<br \/>\nand Shri Panjwani, learned counsel appearing for Central Pollution Control<br \/>\nBoard have opposed the continued unauthorized use for industrial activity<br \/>\nof residential\/non-conforming areas as also the proposal of INSITU<br \/>\nregularization. It has been contended that such industries should be<br \/>\nimmediately closed down\/shifted. Mrs. Sethi contended that INSITU<br \/>\nregularization would defeat the very purpose of the Act under which NCR was<br \/>\nestablished. The contemplated action of regularization would run counter to<br \/>\nthe object of the Act which is to decongest the city of Delhi from the<br \/>\nindustrial activity. The Act of regularization would result in further<br \/>\ncongesting already highly congested city. Mr. Panjwani contended that the<br \/>\nregularization would further result in air and water pollution and would<br \/>\nalso affect the underground water. Learned counsel further submitted that<br \/>\nfrom material on record, it does not appear that anyone examined as to what<br \/>\neffect the regularization will have on the aspect of pollution. It has been<br \/>\npointed out on behalf of CPCB that such regularization would result in<br \/>\nfurther pollution of air ambient, water pollution besides causing other<br \/>\nenvironmental hazardous. For reasons already stated, we find substance in<br \/>\nthese contentions.\n<\/p>\n<p>Residents of Poorvi Viswas Nagar Samaj Kalyan Samiti have filed Writ<br \/>\nPetition No.98 of 2000 opposing INSITU regularization and pointing out that<br \/>\nthe Viswas Nagar is an approved residential area where residential<br \/>\nbuildings have been constructed by the residents and no industrial activity<br \/>\nis allowed as per law. Many of the plots in which the people are residing<br \/>\nwere purchased by them from the custodian of Evacuees property. It is<br \/>\nfurther pointed out that recently industrial units were established in<br \/>\ncontravention of rules and by adopting unfair means. They have, thus,<br \/>\nobjected to the INSITU regularization.\n<\/p>\n<p>From the aforesaid, it is evident that the industry belonging to &#8216;F&#8217;<br \/>\ncategory in residential\/non-conforming areas could not come up after 1st<br \/>\nAugust, 1990 since even the existing &#8216;F&#8217; category industry in non-<br \/>\nconforming areas was required to be shifted to the permissible zone within<br \/>\na maximum period of three years after allotment of plot. The same is the<br \/>\nposition in respect of light and service industry belonging to &#8216;B&#8217; to &#8216;E&#8217;<br \/>\ncategory except that depending upon number of workers employed, the Master<br \/>\nPlan stipulates different time schedule for these industries to shift.\n<\/p>\n<p>Despite the time span mentioned in 1990 Master Plan having expired and<br \/>\nvarious opportunities having been given during 1995, 1996 and 1997 and<br \/>\nnotices issued, and 13 years having passed, the non-conforming use by the<br \/>\nindustry has continued. A time has come that such non-conforming use must<br \/>\nstop at least by those who commenced it from and after 1st August, 1990.\n<\/p>\n<p>The position in respect of household industries which are permissible, the<br \/>\nquestion of the same not being carried on in residential\/non-conforming<br \/>\narea would not arise. The difficulty arises in carrying on of such activity<br \/>\nof household industry which is not permissible. The State Government sought<br \/>\nexpansion of &#8216;A&#8217; category industries. The Government of India has approved<br \/>\nonly 6 out of list of 41 industries. In case, the remaining are not<br \/>\napproved, impermissible &#8216;A&#8217; category industrial units shall also have to<br \/>\nstop functioning. It is imperative for the Central Government to<br \/>\nexpeditiously decide this issue one way or the other. In short, permissible<br \/>\nhousehold industry activity can go on and impermissible activity has to<br \/>\nstop.\n<\/p>\n<p>The plea of INSITU regularization and mild resistance to shifting has been<br \/>\npropounded only by Mr. Govardhan, learned counsel appearing for Delhi<br \/>\nGovernment. In same fashion it was substantially supported by Mr. Kailash<br \/>\nVasdev, senior advocate appearing for Union of India and Mr. Saharya,<br \/>\nlearned counsel appearing for Delhi Development Authority though without<br \/>\ntaking a definite stand. DDA merely adopted the stand of Union of India.<br \/>\nInsofar as Union of India is concerned having already taken a contrary<br \/>\nstand as above noticed, it adopted a middle path without clearly supporting<br \/>\nor opposing the Delhi Government on the issue of INSITU regularization by<br \/>\ntaking a stand that it has issued guidelines and would consider the<br \/>\nquestion of INSITU regularisation at the time of finalisation of Master<br \/>\nPlan &#8211; 2021. The said Master Plan is not likely to be finalized for another<br \/>\n2 years. In this view, the suggestion of Delhi Government is that pending<br \/>\napproval of proposal of INSITU regularization, the industrial units falling<br \/>\nin that category may not be ordered to be closed\/shifted from<br \/>\nresidential\/non-conforming areas. In other words, it means that the<br \/>\nillegality should be further permitted to be continued till the new Master<br \/>\nPlan is finalized &#8211; whether it takes two years or more. In regard to other<br \/>\nillegal industrial units, the suggestion put forth on behalf of the Delhi<br \/>\nGovernment is that immediate directions for closure\/shifting of only those<br \/>\nindustrial units shall be made which were set up after 31st December, 1996<br \/>\nas under the Order dated 19th April, 1996, the industrial activity in<br \/>\nresidential\/non-conforming areas was directed to be closed after 31st<br \/>\nDecember, 1996. We, however, see no justification for continuance of the<br \/>\nillegal and unauthorized industrial activity in residential\/non-conforming<br \/>\nareas which commenced after 1st August, 1990. It would also apply to<br \/>\nindustries in categories &#8216;B&#8217; to &#8216;F&#8217;. In respect of household industry<br \/>\nbelonging to &#8216;A&#8217; category, it was contended on behalf of the Delhi<br \/>\nGovernment that the number of industries falling in that category is being<br \/>\nexpanded and proposal for additional 41 items for being placed in category<br \/>\n&#8216;A&#8217; has been approved by DDA and the matter is pending with the Government<br \/>\nof India and, therefore, the industrial units carrying any activity falling<br \/>\nin the proposed expanded category should also not be shifted for the<br \/>\npresent. It appears that out of 41 items, the Government of India has<br \/>\ngranted approval in respect of 6 items and, no decision has been taken, one<br \/>\nway or the other, in respect of remaining 35 items. We again reiterate that<br \/>\nthe question is only of stopping unauthorized and illegal activity and not<br \/>\nthat activity which is permissible.\n<\/p>\n<p>We may note another argument put forth on behalf of Delhi Government that<br \/>\nit is not the function and responsibility of the Delhi Government to<br \/>\nenforce the Master Plan, it has no powers to enforce it. We are not only<br \/>\nsurprised but shocked at such a frivolous stand being taken, despite what<br \/>\nis stated in the order passed by this Court on 18th December, 1996. That<br \/>\norder noticed the reason as to why the court thought it appropriate to step<br \/>\naside. It was noticed that seemingly the State Government was seriously<br \/>\nenforcing the law. At that stage, no argument about absence of power was<br \/>\nput forth. If it was not the function and responsibility of State<br \/>\nGovernment and the Government had no power, we wonder the reason why the<br \/>\nGovernment filed IA No.1206 seeking extension of time upto March 2004 to<br \/>\nrelocate the industries. We summarily reject this wholly frivolously<br \/>\nsubmission.\n<\/p>\n<p>Neither on behalf of the Government of India nor on behalf of the Delhi<br \/>\nGovernment nor on behalf of any statutory authority, it could be disputed<br \/>\nthat the unauthorized and illegal industrial activity has commenced and<br \/>\ncontinued in Delhi in blatant breach of the provisions of Master Plan and<br \/>\nno action has been taken by any authority. The responsibility to take<br \/>\naction was sought to be shifted. Each blaming the other. While on behalf of<br \/>\nDelhi Government, as above noticed, it sought to avoid its obligation on<br \/>\nthe ground that it is not the function of the State Government to implement<br \/>\nthe Master Plan. The Government of India avoided its responsibility on the<br \/>\nground that the Central Government is not the implementing agency though<br \/>\nthe manner in which the Central Government has taken a summersault in its<br \/>\nstand already stands noticed. Similarly, the other statutory authorities<br \/>\nhave also avoided to shoulder the responsibility for inaction for the<br \/>\nblatant breach of the legal provisions. Respondents have been taking a<br \/>\nconvenient stand from time to time without any regard for statutory<br \/>\nprovisions and have at least turned their face on the other side knowing<br \/>\nthat blatant breach is being committed, even if we assume that there was no<br \/>\nconnivance with the industry for extraneous considerations. The Master<br \/>\nPlan, 2001 stipulates the shifting of extensive industries (&#8216;F&#8217; category)<br \/>\nto conforming zone within a period of three years after allotment of plots<br \/>\nby authorized Government agencies. In respect of light and service<br \/>\nindustries (&#8216;B&#8217; to &#8216;E&#8221; category), it provides shifting to the industrial<br \/>\nuse zone within a maximum period of three years after allotment of plots<br \/>\nand by providing necessary incentive by various Government Agencies in<br \/>\nconforming use zone. This is in respect of all the industrial units with 20<br \/>\nor more workers. In respect of industrial units with 10 to 19 workers, it<br \/>\nstipulates review after five years giving them chance during this period<br \/>\nfor reallocation in conforming zones. Similarly, industrial units with<br \/>\nworker strength upto nine, it provides for review after 10 years after<br \/>\ngiving them chance during the said period for reallocation in the<br \/>\nconforming zones. The suggestion of Delhi Government is that such all<br \/>\nindustrial units which have come up after 1st January, 1997 shall be<br \/>\ndirected to be closed in the first instance by giving them some time. In<br \/>\nrespect of industrial units which have come up between 1st August, 1990 to<br \/>\n31st December, 1996, it was suggested that the bigger units having more<br \/>\nthan 20 workers may first be directed to be closed, later the units having<br \/>\nworkers between 10 to 19 and last of all those units which have less than<br \/>\n10 workers be directed to be closed. The suggestion is that the shifting<br \/>\nmay be directed in a phased manner.\n<\/p>\n<p>Mr. Govardhan also points out that after the advertisement for reallocation<br \/>\nwas issued in terms of the orders of this Court, about 51, 000 applications<br \/>\nwere received out of which approximately 24, 000 applicants were held to be<br \/>\neligible. In Bawana Industrial Estate, 18, 347 industrial plots are ready<br \/>\nand allotment and possession has been given to 10, 059 industrial units and<br \/>\nremaining have still to take possession. It was further pointed out that<br \/>\nnearly 6, 000 who are found eligible for allotment of industrial plot for<br \/>\nrelocation are on the waiting list awaiting the allotment of the industrial<br \/>\nplot. In respect of these units, it was pointed out that development of<br \/>\nindustrial plot will take about two and a half years.\n<\/p>\n<p>In respect of those not found eligible by the Government for reallocation<br \/>\nand also those who did not apply pursuant to the advertisement, it was<br \/>\nsuggested that they be also given a chance to find out alternate industrial<br \/>\nplot. In respect of the industrial units (&#8216;A&#8217; Category) which may fall in<br \/>\nextended category of 41 items if the extension is not ultimately approved<br \/>\nby the Government of India, they may also have to be phased out. According<br \/>\nto the Delhi Government, about 20, 000 units fall in this category and as<br \/>\nthe matter is pending with the Government of India, directions may be<br \/>\nissued for early decision by Government and in the meanwhile, these<br \/>\nactivities may not be directed to be closed.\n<\/p>\n<p>In short, it was not seriously questioned that for the present except those<br \/>\nindustrial units falling in category &#8216;A&#8217;, 15, 000 industrial units which<br \/>\nfall in the category of INSITU regularization and 6, 000 who are in the<br \/>\nwaiting list, the rest of the industrial units have to close down.\n<\/p>\n<p>In respect of industrial activity in rural area\/Lal Dora, learned counsel<br \/>\nappearing for the Governments and various authorities did not dispute the<br \/>\nsubmission of learned Amicus Curiae that except industry falling in Group<br \/>\n&#8216;A&#8217; and &#8216;A-1&#8217; of category &#8216;A&#8217;, no other industrial activity was<br \/>\npermissible. None made contra submission or brought to our notice any<br \/>\nprovision permitting other industrial activity in the rural area\/Lal Dora.\n<\/p>\n<p>At this juncture, we may also deal with, in brief, the submission urged on<br \/>\nbehalf of Government of India that it is not the implementing agency. One<br \/>\nhas only to refer to Section 41 of the DD Act which empowers the Central<br \/>\nGovernment to issue directions to DDA for the efficient administration of<br \/>\nthe DD Act. Who no such direction was issued, there could be no answer.<br \/>\nThere is also no answer as to what steps were taken to consider the<br \/>\nextension of category &#8216;A&#8217; list after adding to that category six more<br \/>\nhousehold industries in terms of notification dated 10th April, 2001,<br \/>\ndespite lapse of three years. No answer came forth that when the matter of<br \/>\nshifting of remaining &#8216;F&#8217; category units was deferred by the Delhi<br \/>\nGovernment in January 2001 on the purported ground of the Police Force<br \/>\nbeing pre-occupied in making Republic Day arrangements and was dealing with<br \/>\nthe security angle, what made the Central Government not to take up the<br \/>\nissue again with the Lt. Governor of Delhi after the Republic Day functions<br \/>\nwere over. In this regard, we may refer to a letter dated 8th January, 2001<br \/>\nsent by Lt. Governor of Delhi to the Minister of Urban Development,<br \/>\nGovernment of India, stating that the operation for the closure of more<br \/>\npolluting &#8216;F&#8217; category industrial units in non-conforming areas has been<br \/>\ncompleted and for launching of fresh operation to close down the remaining<br \/>\n&#8216;F&#8217; category units, the Police Force being pre-occupied with making<br \/>\nsecurity arrangements for Republic Day function, the fresh operation for<br \/>\nclosure of industrial units would be reviewed later. The later review has<br \/>\nnot seen the light of the day despite expiry of more than three years. It<br \/>\nis evident that, in the meanwhile, the Government of India, as already<br \/>\nnoticed above, has changed its stance and under the garb of issuing<br \/>\nguidelines for the Master Plan for Delhi &#8211; 2021, action against violators<br \/>\nof law has come to a standstill for an indefinite period.\n<\/p>\n<p>Insofar as the Municipal Corporation of Delhi is concerned, we have already<br \/>\nnoticed its stand that non-conforming industrial units falling in category<br \/>\n&#8216;B&#8217; to &#8216;F&#8217; whether polluting or not polluting which have come up in<br \/>\ncontravention of the Master Plan should not be permitted to operate and<br \/>\nshould be closed down. In this connection, reference can be made to a<br \/>\npublic notice issued by MCD informing the general public and<br \/>\nowners\/occupiers\/operators of industrial units situated in non-<br \/>\nconforming\/residential areas that in compliance with the directions of this<br \/>\nCourt, the industrial activity in violation of the Master Plan of Delhi &#8211;<br \/>\n2001 be closed down immediately failing which the Municipal Corporation of<br \/>\nDelhi shall forcibly close such units. All ad hoc licences granted, if any,<br \/>\nshall stand revoked\/cancelled. In respect of the industrial activity in Lal<br \/>\nDora, in the affidavit filed in October, 2002 by Chief Town Planner of<br \/>\nMunicipal Corporation of Delhi it has been stated that the proposal for the<br \/>\nwithdrawal of exemption notification would be placed before the<br \/>\nCorporation. Nothing seems to have been done in that direction. It is not<br \/>\ndisputed that under the garb of exemption notification dated 24th August,<br \/>\n1963, all kinds of buildings have come up in the Lal Dora.\n<\/p>\n<p>Insofar as IA 1527 is concerned, it seems evident that the applicant,<br \/>\nNational Cable Industry, had undertaken to shift to the conforming area and<br \/>\non that ground obtained an order for removal of the seal from its premises<br \/>\nso as to remove the machinery. The industrial unit was carrying on the<br \/>\nactivity which falls in category &#8216;F&#8217;. The premises are in rural area. The<br \/>\nquestion whether the activity that was being carried on was polluting or<br \/>\nnot need not be examined since the application deserves to be dismissed<br \/>\nfirstly on the ground of suppression of material facts inasmuch as it has<br \/>\nnot been mentioned therein that the applicant had given an undertaking that<br \/>\nhe would be shifting his unit to the NOIDA area and secondly on the ground<br \/>\nthat the applicant cannot be permitted to resile from the undertaking. The<br \/>\napplicant has already taken advantage of the undertaking and has removed<br \/>\nthe machinery. In this view, we need not go into the larger question as to<br \/>\nwhich provisions of Municipal Laws will be applicable and which not to the<br \/>\nrural areas or areas in the Lal Dora. The aspect of industrial activity in<br \/>\nthese areas has already been dealt with. Under no circumstances, the<br \/>\napplicant can be permitted to commence manufacturing activity from the<br \/>\npremises in question. The result of the aforesaid discussion is that except<br \/>\nhousehold industry, all other industrial units which have come up in<br \/>\nresidential\/non-conforming areas in Delhi after 1st August, 1990 have to<br \/>\nstop functioning. Unfortunately, the Governmental authorities have not<br \/>\nlived up to the confidence that was reposed in them when the Court had<br \/>\nstepped aside and left the matter to Government in the year 1996, as<br \/>\nnoticed hereinbefore. On the other hand, in the year 2002 while these<br \/>\nmatters were pending, commercial use of industrial area was sought to be<br \/>\nregularized by DDA on payment of some amounts. On an application filed by<br \/>\nlearned Amicus Curiae public notice to the above effect was stayed. Later<br \/>\nit was withdrawn by the authority. The action not only was utterly illegal<br \/>\nbut also shows total non-application of mind. Thus, going by the past<br \/>\nexperience, it would also be necessary to not only monitor but also to fix<br \/>\nresponsibility so that illegal activity does not continue any further and<br \/>\nstops within the time schedule for its cessation fixed in this order. We<br \/>\nalso wish to make it clear that those who have set up industrial units<br \/>\nafter 1st August, 1990 have no right for allotment of a plot in an<br \/>\nindustrial area. This would, however, not debar the Government\/authorities<br \/>\nto allot to such oustees plots in industrial area but that under no<br \/>\ncircumstances should delay the closure process. Before we part, a word<br \/>\ndeserves to be said about Mr. Ranjit Kumar, learned senior counsel who has<br \/>\nassisted this Court as Amicus Curiae. Learned Senior counsel has very<br \/>\neffectively and ably assisted this Court both on facts and law. We place on<br \/>\nrecord our deep appreciation for the able assistance rendered by Mr. Ranjit<br \/>\nKumar.\n<\/p>\n<p>In conclusion, having regard to the aforesaid, we issue the following<br \/>\ndirections :\n<\/p>\n<p>1. All Industrial Units that have come up in Residential\/non-conforming<br \/>\nareas in Delhi on or after 1st August, 1990 shall close down and stop<br \/>\noperating as per the following schedule:\n<\/p>\n<p>(a) Industrial Units pertaining to extensive industries (&#8216;F&#8217; category)<br \/>\nwithin a period of four months.\n<\/p>\n<p>(b) Industrial Units pertaining to light and service industries (category<br \/>\n&#8216;B&#8217; to &#8216;F&#8217;) within five months.\n<\/p>\n<p>(c) Impermissible household industries (category &#8216;A&#8217;) within six months.\n<\/p>\n<p>(d) 6, 000 industrial units on waiting list for allotment of industrial<br \/>\nplots within 18 months.\n<\/p>\n<p>2. The Central Government is directed to finalise the list of permissible<br \/>\nhousehold industries falling in category &#8216;A&#8217; within a period of three<br \/>\nmonths.\n<\/p>\n<p>3. 6, 000 industrial units on waiting list shall be allotted industrial<br \/>\nplots within one year.\n<\/p>\n<p>4. The Delhi Government may announce a policy within six weeks giving such<br \/>\nincentives as it may deem fit and proper to those industrial units which<br \/>\ncame to be established after 1st August, 1990 and may close down on their<br \/>\nown before the expiry of the time fixed in this order. The non-announcement<br \/>\nof incentives by the Government shall not, however, delay the closure<br \/>\nprocess.\n<\/p>\n<p>5. The water and electricity connection of the industrial units found<br \/>\noperating after the due date of closure shall be disconnected forthwith and<br \/>\nin any case not later than a month of the date fixed for closure in<br \/>\nDirection No.1 above. If the industrial activity still continues, the<br \/>\npremises shall be sealed within a period of not later than another one<br \/>\nmonth.\n<\/p>\n<p>The seal shall be removed and water and electricity connection restored<br \/>\nonly after filing of an undertaking by the industrial unit not to<br \/>\nrecommence any sort of industrial activity before an officer nominated for<br \/>\nthe purpose by the Delhi State.\n<\/p>\n<p>6. The Central Government is directed to finalise within six months<br \/>\nappropriate steps to be taken for making NCR region a success for<br \/>\nindustrial activity by removing the hurdles pointed out by the industry.<br \/>\nThe Governments of the adjoining States of UP, Rajasthan and Haryana are<br \/>\ndirected to extend full cooperation.\n<\/p>\n<p>7. The Municipal Corporation of Delhi shall consider within three months<br \/>\nthe aspect of withdrawal of exemption notification as suggested in the<br \/>\naffidavit of its Town Planner filed on 28th October, 2002.\n<\/p>\n<p>8. We appoint a Monitoring Committee comprising (i) Chief Secretary of<br \/>\nDelhi (ii) Commissioner of Police, Delhi (iii) Commissioner, Municipal<br \/>\nCorporation of Delhi and, (iv) Vice-Chairman of Delhi Development<br \/>\nAuthority. This Committee would be responsible for stoppage of illegal<br \/>\nindustrial activity. It would, however, be open to the aforesaid members of<br \/>\nthe Monitoring Committee to appoint responsible officers subordinate to<br \/>\nthem to oversee and ensure compliance of the directions contained in the<br \/>\njudgment.\n<\/p>\n<p>9. The first Progress Report by the Committee shall be filed by 31st<br \/>\nAugust, 2004 and thereafter it shall be filed at least once in a period of<br \/>\nevery two months.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India M.C. Mehta vs Union Of India &amp; Ors on 7 May, 2004 Bench: Y.K. Sabharwal, B.N. Agrawal CASE NO.: Writ Petition (civil) 4677 of 1985 PETITIONER: M.C. MEHTA RESPONDENT: UNION OF INDIA &amp; ORS. DATE OF JUDGMENT: 07\/05\/2004 BENCH: Y.K. SABHARWAL &amp; B.N. AGRAWAL JUDGMENT: JUDGMENT 2004 Supp(2) SCR 504 [With [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-94108","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>M.C. 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