CTO Renewal Rejected by SPCB: What Legal Steps Can a Company Take?

For any industry running without interruptions, having a valid Consent to Operate (“CTO”) approved by the State Pollution Control Board (“SPCB”) is a legal necessity. An unexpected rejection of CTO renewal application by SPCB can leave businesses scrambling to understand the legal implications, leading to uncertainty and undue financial and operational stress as well as fear of enforcement action.

A common misconception is that such a rejection means shutting down operations immediately. The legal impact of rejection of CTO renewal application actually varies based on the grounds for rejection, relevant environmental laws at play, compliance requirements pending and remedies available. Order must be reviewed thoroughly to understand what steps to take next.

In many states such as Delhi NCR, Uttar Pradesh, Maharashtra, Haryana, Rajasthan and other industrially developed states, we have seen many cases of clients facing issues regarding pollution clearance permissions, environmental compliance projects, licensing and renewal applications. Common reasons for rejection of renewal application include insufficient documents provided, observations raised by the SPCB during processing of renewal application, environmental violations found, outstanding payments or licenses, pending inspections/issues raised in previous inspection reports, etc.

If the SPCB rejects your company’s Consent to Operate Renewal Application, the last thing you want to do is sit on it. Waiting only puts your company at greater risk. The right legal review at the right time can clarify whether you should respond with a clarification to the SPCB, request for reconsideration of their order or file an appeal before the concerned authority or carry out requisite compliance improvements.

Why Does CTO Renewal Rejection Matter for Companies?

Non acceptance of Consent to Operate Renewal has legal implications on continued operations of the company. The CTO is normally granted under various environmental legislations such as Water (Prevention and Control of Pollution) Act, 1974 and Air (Prevention and Control of Pollution) Act, 1981.

• CTO Granted status of Pollution control system
• Remarks noted in previous inspections
• Units adherence to environmental standards
• Documents provided in application for renewal
• Unit's compliance with previous directions

The company must understand if the rejection was on account of curable issues or if it was a serious regulatory lapse.

Quick Facts 

• CTO approval is granted by the respective State Pollution Control Board.
• Reasons for rejection can be understood from the official order sent by SPCB.
• Environmental compliance history is considered during renewal.
• Businesses do have legal options available based on the merits of the case.
• Pursuing corrective compliance measures may also be advisable prior to any further relief being sought.
• Environmental issues can include governmental agencies and environmental courts/tribunals.

What Are the Common Reasons for SPCB Rejecting CTO Renewal?

CTO renewal can be rejected by SPCB for various reasons. Some usual grounds are incomplete application form, non-submission of reports, violation of pollution control terms, pending observations etc.

Certain establishments might file renewal applications while forgetting to attach compliance evidence with it. Inspection reports, techno-logs, waste audit reports and rebuttal/tackling of previous observations are some grounds on which the permission may get rejected by the authority.

Analyzing the order you will get to know the reason for rejection.