Madras HC imposes Rs 25 lakh fine on MGM Healthcare for unauthorised construction

Published On 2024-03-01 10:30 GMT   |   Update On 2024-03-01 10:30 GMT
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Chennai: In a significant development, the Madras High Court has levied a hefty fine of 25 lakh on MGM Healthcare for undertaking unauthorised construction in Alwarpet, Chennai.

The division bench comprising Justice R Subramanian and Justice R Sakthivel has further imposed fines of 5 lakh each on the Chennai Metropolitan Development Authority (CMDA) and the Greater Chennai Corporation, jointly, and an additional 2 lakh on the Tamil Nadu Pollution Control Board (TNPCB) for their failure to prevent the illegal construction. 
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The fines are directed to be paid to the Adyar Cancer Institute. The full recovery of funds from the personal accounts of officials of the CMDA, the Greater Chennai Corporation, and the TNPCB as they did not take any appropriate steps against the illegal construction, reports the Times of India
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The court was responding to a plea filed by senior advocate G Rajagopalan. The complainant resided in the area and revealed that the unauthorized construction caused significant noise pollution during the night, disturbing the residents. He also complained that piling work was carried out on the construction site for foundation work which created noise.

The construction, related to a multi-speciality hospital on St Mary's Road in Alwarpet, was initiated without obtaining the necessary building approval from the relevant authorities.

On February 8, the court had already restrained MGM Healthcare from proceeding with the construction. It expressed astonishment over how the hospital managed to carry out construction activities since July 2023 without obtaining prior permission from the CMDA. In its verdict, the court specified that the entire fine amount should be recovered from the personal accounts of the officials associated with CMDA, Greater Chennai Corporation, and TNPCB, who neglected their responsibilities in preventing illegal construction, reports The Daily. 

MGM Healthcare has been conducting a lot of infrastructural development for the last few years and has launched a new Hypertension Centre in 2022. 

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