SC allows TTZ to process 400 pending MSME applications

The Supreme Court on Thursday permitted the Taj Trapezium Zone Authority to process around 400 pending applications for setting up non-polluting Micro, Small, and Medium Enterprises (MSMEs) in the ecologically sensitive area around the Taj Mahal.

The top court, however, directed that every proposal be scrutinised by experts from the Central Empowered Committee (CEC) and the National Environmental Engineering Research Institute (NEERI), and in case of any objection, the application concerned “shall not be accepted without the leave of this Court”.

A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and V Mohana heard the long-pending matter concerning industrial activity in the 10,400 sq km Taj Trapezium Zone (TTZ), where the court has, since 1996, imposed stringent restrictions to protect the Taj Mahal from pollution.

The bench said while key studies, including the Vision Document for the TTZ, a cumulative impact assessment and NEERI’s final report on the definition of non-polluting industries, are still pending, their pendency should not stall consideration of applications already received by the TTZ Authority.

The bench took note of the submissions of Attorney General R Venkataramani and Additional Solicitor General Aishwayra Bhati that applications for setting up non-polluting MSMEs like flour mills may be considered. Referring to the present status, the bench noted that as of now, the vision document is yet to be finalised and “the cumulative impact assessment study, in terms of the order dated April 22, 2025, is still incomplete”.

It also noted that the final report on the definition of non-polluting industries is yet to be submitted.

“While all three pending initiatives are required to be completed expeditiously and within a reasonable time, we are of the considered view that the pendency thereof ought not to impede the processing of those applications which have already been received by the TTZ Authority. “What is of paramount importance is that the precautionary principle must be strictly followed and adhered to, with the advice and, wherever necessary, under the direct supervision of domain experts. We, therefore, direct that the TTZ Authority may process the pending applications,” the bench ordered.

The bench further directed that in every meeting convened for consideration of such applications, “one expert nominated by the CEC and one expert representative of NEERI shall be invited to participate. No meeting shall be held unless both such experts are present”.

It also made clear that in the event either of the two experts is of the opinion that a particular industry cannot be classified as a non-polluting industry, the concerned application shall not be accepted without the leave of this court.

“In cases where both experts, namely the representatives of NEERI and the CEC, are unanimous, and the TTZ Authority also concurs, such applications may be processed and taken to their logical conclusion, strictly in accordance with law and without any reference to this court,” it directed.

The bench directed that all such decisions have to be uploaded on the website of the CEC, so as to enable public-spirited persons to submit objections or suggestions, if any.

“Any such objections or suggestions shall also be considered by the TTZ Authority, in consultation with the experts nominated by NEERI and the CEC, before a final decision is taken,” it said, adding, “The precautionary principle must be strictly followed and adhered to, with the advice and, wherever necessary, under the direct supervision of domain experts.”

During the hearing, Bhati said no heavy industries were being considered in the TTZ and that only MSMEs were seeking permission.

“There are around 400 applications pending. A complete ban on setting up new industries is impacting livelihoods. How do we curb the aspirations of millions of people?” she said.

Senior advocate Aparna Bhat, appearing for an intervenor, opposed any dilution of environmental safeguards, alleging that industries had earlier been permitted in the Firozabad area despite the Ministry of Environment, Forest and Climate Change advising against their establishment.

The CJI said, “some workable solution is needed with preventive measures” and noted that there appeared to be consensus that only non-polluting industries should be allowed in the TTZ.

The bench initially suggested that experts from the CEC and NEERI could determine on a case-to-case basis whether a proposed industry was non-polluting, observing that the issue also involved the livelihoods of local residents.

Justice Bagchi said the mechanism should be practical and avoid forcing every application to be decided by the top court, suggesting the inclusion of TTZ and NEERI representatives in the decision-making process to eliminate bureaucratic delays.

The bench, in its order, referred to its December 30, 1996 order by which it had prohibited the use of coal and coke in the TTZ and directed 293 industries around Agra to switch to natural gas to reduce pollution while allowing industrial development.