Coastal Regulation Zone

The Ministry had originally notified the CRZ Guidelines in 1991 vide Notification No. S.O. 114(E), dated 19th February 1991. These were amended and updated from time to time. There have been about 25 amendments to this Notification between 1991 and 2009, some of which have been emanated from the Supreme Court orders. However, these have now been rescinded by the Coastal Regulation Notification 2011 issued on 6th January 2011. Keeping in mind the special needs of Mumbai, several concessions have been provided to CRZ areas within Mumbai. Let us examine some of the important provisions of the CRZ 2011.

Definition of CRZ
The following areas are declared as CRZ:

(i) the land area from High Tide Line (HTL) to 500 mts. on the landward side along the sea-front. The term HTL means the line on the land up to which the highest water line reaches during the spring tide and so demarcated. HTL will be demarcated within one year from the date of issue of the 2011 notification.

(ii) the land area between HTL to 100 mts. or width of the creek, whichever is less on the landward side along the tidal influenced water bodies (i.e., bays, rivers, creeks, etc. that are connected to the sea and are influenced by tides).

(iii) the land area falling between the hazard line and 500 mts. from HTL on the landward side, in case of seafront and between the hazard line and 100 mts. line in case of tidal influenced water body. ‘Hazard line’ means the line demarcated by the Ministry of Environment through a survey of India. This is a new development probably prompted by the recent tsunamis impacting coastal regions.

(iv) land area between HTL and Low Tide Line (LTL) known as the intertidal zone.

(v) the water and the bed area between the LTL to the territorial water limit or 12 nautical miles in case of sea. This is an important change to expand the CRZ to include territorial waters as a protected zone.

(vi) the water and the bed area between LTL at the bank to the LTL on the opposite side of the bank, of tidal influenced water bodies.

The significance of declaring an area as CRZ is that the Notification imposes various restrictions on the setting up and expansion of industries, operations or processes, etc., in such areas.

Classification of CRZs & Regulations
For the purpose of conserving and protecting the coastal areas and marine waters, the CRZ area is classified into various categories. Depending upon these categories, the development or construction activities therein are also regulated. These are explained below.

CRZ-I
Meaning

CRZ-I includes those areas that are ecologically sensitive and those which play a role in maintaining the integrity of the coast, such as mangroves, in case mangrove area is more than 1,000 sq mts., a buffer of 50 mts. along the mangroves shall also be provided, coral reefs, sand dunes, national parks, wildlife habitats, structures of archaeological importance, heritage sites, etc. It also includes the area between Low Tide Line and High Tide Line. Thus, CRZ-I are the very core areas which are the first point of protection of the coastal line.

Regulation of Construction
No new construction activities are permitted in CRZ-I. Certain exceptions are made for constructions/ industries of vital importance, such as Atomic Energy projects, construction of trans-harbour sea link, development of green field airport at Navi Mumbai, construction of dispensaries/ schools/ bridges/roads, etc., which are required for traditional inhabitants living there, etc.

CRZ-II

Meaning

The areas that have been developed up to or close to the shoreline. Developed area is defined as that area within the existing municipal limits/ urban areas which are substantially built-up and has been provided with drainage, approach roads and other infrastructural facilities, such as water supply and sewerage mains.

Regulation of Construction

Construction is permitted in CRZ-II subject to the following important restrictions:

(a) buildings are permitted only on the landward side of the existing/proposed road, or on the landward side (i.e., towards land) of existing authorised structures. These shall be subject to the existing local town and country planning regulations (such as the Development Control Regulations for Greater Mumbai and other BMC Regulations for buildings), including the existing FSI norms. However, no permission for construction of buildings will be given on the landward side of any new roads which are constructed on the seaward side of an existing road.

(b) reconstruction of authorised building is permitted subject to the existing FSI norms and without any change in present usage.

(c) construction involving more than 20,000 sq mts., built-up area in CRZ-II shall be considered by the Ministry in accordance with its Notification dated 14th September 2006 and in case of projects less than 20,000 sq mts. built-up area shall be approved by the concerned State/Union territory planning authorities in accordance with the 2011 Notification.

CRZ-III

Meaning
These include those areas that are relatively undisturbed and those do not belong to either CRZ-I or II which include coastal zone in the rural areas (developed and undeveloped) and also areas within municipal limits or in other legally designated urban areas, which are not substantially built-up.

Regulation of Construction The Notification provides for several regulations for CRZ-III. Some important regulations for CRZ-III include the following:

(a) NDZ: An area of up to 200 mts. from HTL on the landward side in case of seafront and 100 mts. along tidal influenced water bodies is to be earmarked as ‘No Development Zone’ (NDZ). The significance of NDZ is as follows:

— No construction is permitted within NDZ.

— Repairs or reconstruction of existing authorised structure not exceeding existing FSI/ plinth area/density is allowed.

— Construction/reconstruction of dwelling units of traditional coastal communities, fishermen is permitted, subject to certain restrictions.

— Certain key activities are permitted, such as agriculture, atomic energy generating power by non-conventional energy sources, construction of dispensaries/schools/roads, etc. which are required for the local inhabitants, etc.

(b) Area between 200 mts. to 500 mts. from HTL
— The following activities are permissible:

— Hotels/beach resorts for tourists or visitors subject to certain conditions.

— Notified ports.

— Foreshore facilities for desalination plants and associated facilities.

— Facilities for generating power by nonconventional energy sources.

— Construction of public utilities.

— Reconstruction or alteration of existing authorised building.

CRZ-IV

Meaning
The water area from the Low Tide Line to 12 nautical miles on the sea-ward side and the water area of the tidal     influenced water body from     the mouth of the water body at the sea up to the influence     of     tide    which is measured as 5 parts per 1,000 during the driest season of the year.

Regulation of Construction
Activities     impugning    on     the    sea    and     tidal     influenced water bodies are regulated except for traditional fishing     and     related     activities     undertaken     by     local communities which are subject, however, to certain conditions.

Other areas
    
Meaning
These include those areas which require special consideration for the purpose of protecting the critical coastal     environment and difficulties faced by local communities, such as, the CRZ area falling within municipal limits of Greater Mumbai. This is a new feature     of     the     2011     Notifications     and     a    welcome     move.     For     the     first     time     the     unique     nature of Mumbai’s coastlines and real estate problems have been recognised and addressed.

Regulation of Construction
CRZ areas of Greater Mumbai are further regulated as follows:

(i)   CRZ-I areas
In CRZ-I areas of Mumbai the only activities which can    be    taken    up    are construction    of    roads,    approach    roads    and    missing     link     roads    which    are    approved     in the Developmental Control Regulations of Greater Mumbai. However, all mangrove areas should be notified     and  5 times the number of mangroves destroyed/cut during the construction process should be replanted.

(ii)   CRZ-II areas
In CRZ-II areas of Mumbai, the development can continue     to     be     undertaken     in     accordance    with     the norms laid down in the Town and Country Planning Regulations as they existed on the date of issue of the Notification dated the 19th February, 1991.

 (iii)  Slum Redevelopment
One of the highlights of the CRZ 2011 includes the relaxations granted for slum redevelopment schemes. The features include:

•   To provide a safe and decent dwelling to the slum-dwellers, the State Government may implement slum redevelopment schemes.

•      The stake of the State Government should not be less than 51% in such redevelopment schemes which are in partnership with private sector.

•   The FSI for such schemes should be in accordance with the existing regulations. Thus, an FSI of up to 4 can be availed depending upon the facts. This is a welcome move.

•   All legally regularised tenants must be provided houses in situ or as per norms laid down by the State Government. Projects would be undertaken only after public consultation in which views of the tenants of such building would be obtained.

•   Such schemes would be audited by the Comptroller & Auditor General.

•     All redevelopment schemes would be subject to the Right to Information Act, 2005 in order to improve transparency.

By a very recent Circular, the SRA proposes to do away with the height restrictions imposed in CRZ II areas on buildings provided they are a part of a 33(10) or a 33(14) Scheme.

(iv)    Redevelopment of dilapidated, cessed and unsafe buildings

The Notification also deals with redevelopment of old and dilapidated, cessed and unsafe buildings in the CRZ areas of Greater Mumbai. This again is a welcome move for several buildings along coastal lines, such as Marine Drive, Juhu, Chowpatty, etc. Such redevelopment can be done subject to the following conditions:

•     They shall be allowed to be taken up even with private developers.

•    The FSI shall be in accordance with prevailing norms.

•     Suitable accommodation must be provided to the original tenants during the course of redevelopment.

•     The Ministry may appoint Statutory Auditors empanelled with Comptroller & Auditor General to undertake performance and fiscal audit in respect of such redevelopment schemes.

•     Projects would be undertaken only after public consultation in which views of the tenants of such building would be obtained.

•     All redevelopment schemes would be subject to the Right to Information Act, 2005 in order to improve transparency.

(v)    All open spaces, parks, gardens, playgrounds indicated in development plans within CRZ-II shall be categorised as no development zone.

(vi)    Floor Space Index up to 15% shall be allowed only for construction of civic amenities, stadium and gymnasium meant for recreational or sports-related activities and residential or commercial use of such open spaces shall not be permissible.

Approvals

For all projects attracting the CRZ, 2011 Notification, an application for CRZ clearance must be made to the concerned State or the Union territory Coastal Zone Management Authority. It will make recommendations within a period of 60 days from the date of receipt of complete application to the Ministry or the State Environmental Impact Assessment Authority. The Ministry or the Authority shall consider such projects for clearance based on the recommendations of the concerned CZMA within a period of 60 days. The clearance accorded to the projects under the CRZ Notification shall be valid for the period of 5 years from the date of issue of the clearance for commencement of construction and operation. A procedure for post-clearance monitoring is also provided.

Enforcement

To implement the provisions of the CRZ 2011 Notification, powers prescribed under the Act are available to the Ministry, the Coastal Zone Manage-ment Authorities and the State Government.

Auditor’s duty

The Auditor should enquire of the auditee, in case the auditee is a builder who has constructed a building in coastal zones, whether the conditions of the Notification have been duly complied and whether necessary approvals have been obtained. Non-compliance with this could have serious repercussions for the builder. This also has very important repercussions for flat/office buyers in such a building. The Bombay High Court in the case of Sudhir M. Khandwala, Writ Petition No. 1077 of 2007 refused to stay the demolition of/regularise an unauthorised construction. Hence, a buyer of a premises in a building constructed in violation of the CRZ Regulations could lose his property. Thus, the Auditor can provide a value-added service by alerting his client of the repercussions of buying such a property. In such cases, he may advice his client to obtain a legal opinion.

By broadening his peripheral knowledge, the Auditor can make intelligent enquiries and thereby add value to his services. It needs to be repeated and noted that the audit is basically under the relevant law applicable to an entity and an auditor is not an expert on all laws relevant to business operations of an entity. All that is required of him is exercise of ‘due care’.