In Brief
A real estate developer constructed buildings exceeding the permitted built-up area specified in its Environmental Clearance. The developer argued that non-FSI (non-Floor Space Index) areas should not count as 'built-up area' under environmental law. The Supreme Court rejected this distinction, holding that all covered construction counts as built-up area regardless of FSI status. The Court found the developer had constructed 100,002 sq.mtrs. against the permitted 57,658 sq.mtrs. While demolition would normally be required, the Court allowed regularization to protect thousands of middle-class home buyers who invested life savings, but imposed damages of Rs. 100 crores or 10% of project cost (whichever higher), forfeited all development rights, and banned construction of 454 planned additional units.
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