HGI Automotives Ltd vs Commission for Air Quality Management - Appeal
Summary
The National Green Tribunal (NGT) is hearing an appeal filed by HGI Automotives Ltd. against a closure direction issued by the Commission for Air Quality Management (CAQM). The CAQM cited the operation of induction furnaces without proper emission controls as the reason for closure, while the appellant claims to use electric furnaces and disputes the findings.
What changed
The National Green Tribunal (NGT) is reviewing an appeal (Appeal No. 25/2026) filed by HGI Automotives Ltd. challenging a closure direction issued by the Commission for Air Quality Management (CAQM) on March 16, 2026. The CAQM's order was based on an inspection that reported the operation of five induction furnaces without stacks and APCD, leading to fugitive emissions. The appellant disputes these findings, asserting that their unit uses electric furnaces, not induction furnaces, and therefore the basis for the closure is incorrect.
The NGT has directed the appellant to file a reply with supporting material before the CAQM, similar to a related case (Appeal No. 24/2026). The impugned order also outlines conditions for environmental compensation and resumption of operations. Compliance officers should monitor the outcome of this appeal and the appellant's response to the CAQM, as it pertains to the accuracy of inspection findings and the correct identification of industrial equipment in air quality enforcement actions.
What to do next
- Monitor NGT proceedings regarding Appeal No. 25/2026
- Review CAQM inspection reports for accuracy of equipment identification
- Ensure proper documentation of furnace types and emission control systems
Penalties
The impugned order provides for the levy of environmental compensation and resumption of operations on compliance with specified conditions.
Source document (simplified)
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M/S Hgi Automotives Ltd vs Commission For Air Quality Management ... on 19 March, 2026
Item No. 41 Court No. 1
BEFORE NATIONAL GREEN TRIBUNAL
PRINCIPAL BENCH, NEW DELHI
Appeal No. 25/2026
(IA No. 206/2026)
M/s HGI Automotives Ltd. Appellant
Versus
Commission for Air Quality
Management in NCR & Ors. Respondent(s)
Date of hearing: 19.03.2026
CORAM: HON'BLE MR. JUSTICE PRAKASH SHRIVASTAVA, CHAIRPERSON
HON'BLE DR. AFROZ AHMAD, EXPERT MEMBER
Appellant: Mr. Pinaki Misra, Senior Advocate with Mr. Sumeer Sodhi, Mr. Arjun
Nanda, Mr. Adiraj Bali & Ms. Vanshika Jhamb, Advs. for Appellant
Respondents: Dr. Abhishek Atrey & Mr. Navneet Gupta, Advs. for CAQM
Mr. Rahul Khurana, Adv. for R - 2 & 4
ORDER 1. By this Appeal filed under Section 18 of the Commission for [Air
Quality Management in National Capital Region and Adjoining Areas Act,
2021](https://indiankanoon.org/doc/66504720/) read with Section 16 of the National Green Tribunal Act, 2010,
appellant has challenged the closure direction dated 16.03.2026 issued by
the CAQM under Section 12 (2)(xi) of the Commission for [Air Quality
Management in National Capital Region and Adjoining Areas Act, 2021](https://indiankanoon.org/doc/66504720/).
- The impugned order reveals that the appellant's unit was inspected
by the Flying Squad of the CAQM on 11.02.2026 when the Stage II GRAP
order was in force and following lapses/non-compliances have noticed
which formed the basis of issuing the impugned order:
"Whereas, it was reported that 05 induction furnace were being
operated (out of the total 06 furnace) without stack and APCD. The
remaining one furnace was found non-operational. Fugitive emissions 1 were observed during inspection. Further, the capacity, number of
furnace and emission limits are not indicated in the CTO".
3. The submission of learned counsel for the appellant is that the
appellant unit does not have the induction furnace, therefore, the very
basis of issuing the closure order is incorrect. He submits that the unit has
the electric furnaces. Therefore, there is also no question of any fugitive
emissions.
- Learned counsel appearing for the CAQM has pointed out that the
show cause notice dated 11.02.2026 was issued to the appellant and the
same was not replied, therefore, the impugned closure order has been
issued.
- In the grounds raised in the memo of appeal also the appellant has
taken the plea that it has electric furnace and the impugned order wrongly
records the induction furnace.
- If the stand of the appellant is that it is not violating any of the norms
and the appellant is only using electric furnace, then the appellant is
required to file reply before the CAQM along with the supporting material.
- It has been pointed out that in other Appeal No. 24/2026 of similar
nature listed today, the Tribunal has permitted the appellant therein to file
the reply to the CAQM and also directed the CAQM to verify the said fact.
- Clause 6 of the impugned order provides for the levy of
environmental compensation and resumption of the operations on
compliance of the conditions mentioned therein. Clause 6 of the impugned
order is as under:
"6. For consideration of resumption of operations in the unit, the following
needs to be complied with:(i) After taking due corrective and preventive measures, in respect
of the non-compliances / violations as noted in the closure
direction, the project proponent shall report the same to the
Regional Officer Faridabad, of the Haryana State Pollution 2 Control Board, also under advise to the headquarter office of the
HSPCB.(ii) The Regional Officer, HSPCB shall thereafter verify the corrective
and preventive measures initiated by the unit / project proponent
and submit a report in this context to the HSPCB headquarter
office along with a recommendation for levying of EC charges, as
per extant guidelines duly taking cognizance of Standard
Schedule for EC charges issued by the Commission vide order
dated 01.01.2025 & 05.06.2025.(iii) The HSPCB shall review the report of the Regional Officer in this
context to ascertain effectiveness of actions initiated for
compliance, levy appropriate EC charges on the project / unit for
all categories of violations as noted in this direction and realise
the same, from the proponent. A recommendation towards
resumption of activities at the site/industrial unit etc. may be
made to the Commission by the HQ office of the HSPCB.(iv) The Project Proponent shall thereafter also report compliance of
all the requisites as above to the Commission, in the form of an
affidavit. The indicative procedure and guidelines for processing
of the cases for resumption, including the format for the affidavit
may be accessed from the Commission's
website www.caqm.nic.in >> Closures/Resumptions >>
GUIDELINES FOR RESUMPTION OF OPERATIONS IN CLOSED
UNITS.(v) In exercise of powers of the Commission under Section 14 of the
Act, the Member of Secretary, HSPCB shall also initiate action for
prosecution under Section 14 of the Commission for Air Quality
Management in National Capital Region and Adjoining Areas Act,
2021 against the said unit".
9. In the present case if the CAQM comes to the conclusion that the
very basis of passing the impugned order was incorrect then the Clause 6
concerning levy of EC may not be attracted.
- Hence, we dispose of the appeal permitting the appellant to file an
appropriate reply along with all the supporting material with the CAQM by
tomorrow.
- The CAQM will verify the disclosure made in the reply and pass
appropriate order within one week.
- Till the next date of hearing the parties are directed to maintain
status quo. If the appellant unit is operating as of now, it will be allowed to
operate, however, subject to compliance of all the environmental norms. 3
- IA No. 206/2026 is accordingly disposed of.
Prakash Shrivastava, CP
Dr. Afroz Ahmad, EM
March 19, 2026 Appeal No. 25/2026 (IA No. 206/2026)
P 4
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