Revocation of the Environmental Clearance for Residential Project 'Brigade Morgan Heights' in Chennai

The revocation of the Environmental Clearance (EC) for our residential project 'Brigade Morgan Heights' in Perumbakkam Village, Chennai by the State Level Environment Impact Assessment Authority (SEIAA) is legally unsustainable, factually incorrect and arbitrary in nature and Brigade group strongly objects to the same.

We reiterate that the project site is private patta lands, classified as dry lands ("punjai") in revenue records dating back to 1935, and has been in the continuous possession of the current landowners since 1985. Brigade entered into a Joint Development Agreement (JDA) with the Landowner for the land in 2022. Brigade also issued public notices at the time of entering into the JDA and also at the time of securing the EC in leading news papers, and no objections were received whatsoever.

Further, the press release issued by the Environment, Climate Change and Forest Department dated October 28, 2025, clarified that "the lands are private patta lands and that the approvals were given by concerned authorities on private patta lands only and that final wetland boundaries remain undecided". Till date, the project site does not fall within any notified wetland area under the applicable Wetlands (Conservation and Management) Rules, 2017 and no authority has claimed otherwise.

Just three months prior to this cancellation, on February 10, 2026, the Hon'ble Madras High Court dismissed a Public Interest Litigation filed against the project wherein SEIAA, Tamil Nadu State Wetland Authority ("TNSWA") and other government authorities were made parties to the litigation. While dismissing the PIL, the HC concluded that until ground truthing is completed in the Ramsar process, the project lands could not be conclusively designated as wetlands. In the PIL which was heard over a period of 5 months, none of the authorities, including SEIAA and TNSWA made any submissions stating that the project lands were wetlands or that the approvals granted should be cancelled.

Furthermore, the reason for cancellation of the EC cited is based on a generic condition appearing in all ECs issued by the SEIAA stating that "the project proponent shall obtain permission from the Wetland Authority "if applicable". In our specific case, since these are private patta lands and none of the authorities have declared conclusively that the project lands are wetlands, even as recently as during the PIL before the HC, this condition is not applicable.

The SEIAA convened the meeting to discuss the cancellation of EC on 08 May 2026 and issued the cancellation order on 12 May 2026. Brigade Group was not provided with any prior notice, personal hearing, technical discussion, site verification, or an opportunity to submit any documentary evidence or be heard and this revocation order had come as a complete shock. Revoking a validly granted clearance after the bona fide commencement of project activities, where substantial investments have been made, construction ongoing, and third-party rights created, without a fair hearing is procedurally improper and blatantly violates all principles of natural justice.

We are given to understand that the proposed Ramsar site and its corresponding Zone of Influence covers more than 11,000 acres in the heart of South Chennai and that other projects and private landowners are also now being impacted similarly. Hence, this impacts the general public, property owners, developers & builders and impacts the development of entire South Chennai. This is not just an issue that affects Brigade alone.

Given these facts, the basis for the cancellation remains unclear. We are appealing against this order and exploring all appropriate legal and regulatory remedies available before us.

Shares of Brigade Enterprises Limited was last trading in BSE at Rs. 555.05 as compared to the previous close of Rs. 565.95. The total number of shares traded during the day was 58527 in over 2240 trades.

The stock hit an intraday high of Rs. 565.90 and intraday low of 550.15. The net turnover during the day was Rs. 32552450.00.

Source : Equity Bulls

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