Supreme Court upholds NGT’s judgment revoking CRZ clearance for an edible oil storage facility in the CRZ area around Chennai Port

K.T.V. Health Food Pvt. Ltd. v. Union of India & Ors.; Judgment dated 01 February, 2023

The Supreme Court of India (“Supreme Court”) has upheld the National Green Tribunal (“NGT”) order wherein it was held that the coastal regulation zone (“CRZ”) clearance granted to an edible oil storage facility near the Chennai Port is illegal. The Court interpreted the CRZ Notification, 2011 (“CRZ Notification”) and observed that the storage facility of the appellants is not located inside the Chennai port. NGT had noted that the authority had the power to grant an ex post facto clearance under Para 4.3 of the CRZ Notification, but the clearance in this case is illegal as the project in question is not located in the Chennai Port and is, thus, not a permissible activity under the CRZ Notification. The Supreme Court found this argument valid and upheld the NGT’s direction to demolish the storage facility in CRZ area. The Court granted six months to the appellant for complying with the NGT’s order.

In relation to the pipeline meant for the transfer of edible oil to the storage tank, the Court observed that the District Coastal Zone Management Authority shall take a decision as to whether its usage as a pipeline per se is a permissible activity in the CRZ area. In this case, the Court was considering an appeal against the NGT order which set aside the proceedings of the Coastal Zone Management Authority wherein ex post facto clearance was granted for laying a pipeline for the transfer of edible oil from Chennai Port to the storage terminal tank and for the establishment of a storage transit terminal by the appellant.

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