Penalty burden eases on private university that built campus illegally in Aravalis

Time of India

14-07-2025

Gurgaon: The penalty on a private university for using over 13 hectares of protected forest land in Faridabad without full permission is likely to come down sharply after the Centre decided to apply its new, relaxed rules in the case.
Tired of too many ads? go ad free now
The Aravali land, located along the Badkhal-Surajkund Road, was protected under Punjab Land Preservation Act (PLPA), 1900. The university — Manav Rachna International Institute of Research and Studies (MRIIRS) — used this land for construction before getting prior clearance, as mandated, under the Forest Conservation Act, 1980. But after the FCA was amended in 2023, the campus became among the first to get post facto approval.
During a meeting on June 12, the Union environment ministry's advisory committee recommended applying the 2023 forest rules for calculating the fine, replacing the stricter 2019 guidelines. Under the 2019 guidelines, the penal Net Present Value (NPV) — a form of financial compensation — was calculated from the actual date the forest land was used, with an additional 12% simple interest for each year of violation until payment was made.
This meant that if an agency began using the land without formal clearance in 2019, it would incur a penalty for each subsequent year, significantly increasing the financial burden.
However, under the revised 2023 guidelines, the Union environment ministry introduced a key change — penal interest would now be applied only from the date the penalty demand was officially raised, not from the date of the original violation.
Tired of too many ads? go ad free now
This adjustment substantially reduces the total payable amount in delayed cases.
After this change was implemented, the Haryana govt sought clarification from the Centre on which set of rules should apply to the Manav Rachna forest diversion case, where the land was used before final approvals were granted.
The state govt specifically enquired if the stricter 2019 rules or more lenient 2023 norms should govern the calculation of the penal NPV — a decision with financial implications.
This query was a focal point in the June 2025 meeting of the forest advisory committee, where the ministry reaffirmed its Nov 2024 clarification in favour of applying the 2023 norms.
Approval & penalty reduction:
The Centre had granted in-principle approval for the land diversion on Dec 29, 2023, but also flagged that the university violated forest norms by starting work prematurely. The main query was how much the varsity should pay as a penalty (NPV) for using forest land without permission.
This recommendation was made because construction of the university began in 1991, well before the 1996 cut-off date. Last year, Parliament revised the Forest Conservation Act (FCA), stating if construction occurred prior to Dec 12, 1996, the Act would not be applicable.
Under the 2019 rules, the penalty would have been calculated from the year the land was first used — potentially as early as 2019 or 2020 — and would include 12% annual interest, resulting in a total fine of approximately ₹20 crore.
However, under the new 2023 rules, interest is counted only from the date the fine was officially demanded, reducing the fine by 2.5 times — around 60% less than what the institute would have paid earlier.
Activists flag green concerns:
While the move provides relief to the university, it has raised concerns among environmental activists. They argued that it could encourage more illegal use of protected land, particularly in fragile zones like Aravalis.
Former forest conservator (south Haryana) RP Balwan criticised the decision, stating it violates the Supreme Court orders from 2008 and 2019, which prohibit construction in the Aravalis. "The Centre, too, has acknowledged the protected status of Aravali land earlier.
In 2008 and 2009, reports by the Central Empowered Committee (CEC), which guides the govt on key decisions, said the entire Aravali region of Gurgaon and Faridabad are prohibited zones under FCA and construction can only be allowed to install power lines and build village link roads.
So, entertaining the FCA case is wrong, forget about reducing penalties," said Balwan.
Activists also said reducing the penalty by 2.5 times sends a message that violations can be rectified with money, weakening forest land protection. Chetan Agarwal, a forest analyst, said, "The land in question is village Shamlat common land that appears to have been dubiously privatised. The govt should restore the land to the gram panchayat or Faridabad corporation in line with SC judgments in Jagpal Singh v.
State of Punjab (2012) and Jai Singh v.
State of Haryana (2022) and take possession of the buildings in public interest." He proposed that any forest clearance granted to Manav Rachna University should be provisional, subject to the outcome of ongoing or future ownership cases.
What's next?
Before receiving the final clearance, the university must fulfil several conditions. It should plant trees on an equivalent area of non-forest land (14ha), repair damage on 0.19 ha of encroached land, properly mark the diverted land with boundary pillars and comply with the Forest Rights Act and Environment Protection Act. Till these requirements aren't met, the land cannot be legally transferred to the varsity.