Rs 5-40 lakh bank surety imposed on builders to ensure STPs, ET RealEstate

September 14, 2023

PANAJI: Goa State Pollution Control Board (GSPCB) on Wednesday imposed bank guarantees between Rs 5 lakh and Rs 40 lakh on builders constructing more than 25 units in housing complexes to ensure that sewage treatment plants (STPs) at the complexes function properly.

GSPCB chairman Mahesh Patil said that the board has received many complaints from the public, stating that after builders hand over complexes to housing societies, it is often found that STPs are faulty.

“Considering the complaints, it was decided to impose bank guarantees on builders so that they cannot escape their responsibilities,” Patil said.

Builders have to give bank guarantees based on the cost of projects ranging from Rs 5 crore to over Rs 500 crore, Patil said. “Builders have to pay the bank guarantees when they apply for the consent to establish,” Patil said. “At that stage, board officials will visit the complexes to check whether STPs are working properly.”

Patil said if an STP is out of order, the builder concerned will forfeit the bank guarantee and the amount will be used to repair the STP.

“If a plant is functioning as specified in the rules, the bank guarantee will be returned to the builder concerned,” Patil said.

The new slabs for the bank guarantees are fixed with minimum and maximum amounts to be levied for Red and Orange category industries. The Orange category amount will be 50% of the Red category amount.

“In the case of healthcare establishments, the bank guarantee levied may be Rs 2 lakh for a unit of 50-100 beds and Rs 10 lakh for a unit of 100 beds and more,” Patil said.

Bank guarantees, Patil said, may not be required for Green category industries as they are mostly non-polluting in nature. However, the maximum bank guarantee amount shall not exceed the minimum amount under the Orange category. These guarantees will be taken on a case-to-case basis, as decided by the board’s member secretary and senior environmental engineer, and the taluka assistant environmental engineer concerned.

  • Published On Sep 14, 2023 at 01:00 PM IST

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