Madras High Court Rules Environmental Clearance Not Required for Essentiality Certificate of Medical Institutions
The Madras High Court has held that an Environmental Clearance Certificate and approval from the Tamil Nadu Pollution Control Board are not mandatory prerequisites for obtaining an Essentiality Certificate for establishing a medical institution, clarifying that such environmental compliances, while required under separate statutes for construction and commissioning, do not form part of the qualifying criteria under Form 2 of the Establishment of Medical College Regulations, 1999.
Courts & Judiciary
Sep 9, 2026·
The Madras High Court recently held that an Environmental Clearance Certificate and approval from the Tamil Nadu Pollution Control Board are not necessary documents for obtaining an Essentiality Certificate for establishing a medical institution. The bench comprising Chief Justice SA Dharmadhikari and Justice G Arul Murugan passed this order while hearing a writ petition filed by Chettinad Academy of Research and Education against a communication from the Principal Secretary, Health and Family Welfare Department, Government of Tamil Nadu, which had insisted on the production of these two certificates before processing the Essentiality Certificate application.
Background of the Case
Chettinad Academy had acquired the property previously owned by Ponnaiyah Ramajayam Institute of Science and Technology (PRIST Trust) through an e-auction conducted under the SARFAESI Act. PRIST Trust had been granted an Essentiality Certificate in August 2014 for setting up a medical college with an annual intake of 150 students. Although the college operated for a few years, it was denied recognition by the Medical Council of India for the academic years 2017-18 and 2018-19 due to non-compliance with prescribed norms, following which it ceased operations.
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After acquiring the property, Chettinad Academy approached the National Medical Commission seeking permission to admit 150 students for the academic year 2025-26. In response, the State Health Department required the institution to obtain an Environmental Clearance Certificate and a certificate from the Tamil Nadu Pollution Control Board as preconditions for granting the Essentiality Certificate. This requirement was challenged before the Single Judge, who dismissed the plea and directed the institute to secure the said certificates. Aggrieved by this order, Chettinad Academy filed an appeal before the Division Bench of the Madras High Court.
Arguments Advanced by the Parties
The petitioner contended that the Essentiality Certificate originally issued to PRIST Trust had neither been withdrawn nor cancelled, and that under the provisions of the SARFAESI Act, all statutory approvals attached to an asset are transferred to the auction purchaser. Accordingly, the Essentiality Certificate continued to remain valid and enforceable. Furthermore, it was argued that neither environmental clearance nor Pollution Control Board approval finds mention in Form 2 of the Establishment of Medical College Regulations, 1999, which outlines the criteria for evaluating an application for an Essentiality Certificate. Therefore, these documents could not be made a prerequisite for its grant.
The State, in its counter, maintained that the Essentiality Certificate is not a mere formality and that the State’s satisfaction in granting it cannot be divorced from broader statutory compliances, including environmental norms. It argued that ensuring environmental safeguards is integral to the establishment of any institution, particularly one involving public health and safety.
Court’s Observations and Reasoning
The Division Bench noted that while the Single Judge had acknowledged the arguments raised by both the petitioner and the State, it had not weighed them against each other or arrived at a conclusive finding on the core issue. The High Court observed that this failure to address the substantive grounds raised by the parties rendered the Single Judge’s order unsustainable.
On the merits, the Court clarified that although Environmental Clearance Certificates and Tamil Nadu Pollution Control Board approvals are mandatory under distinct environmental statutes before constructing or commissioning a medical institution, they are not prescribed as qualifying criteria in Form 2 for the evaluation of an Essentiality Certificate. The Bench emphasized that the absence of such environmental clearances at the threshold stage cannot be used by the State as a ground to withhold or delay the processing of an Essentiality Certificate application.
The Court further stated: “While environmental compliances (such as the Environmental Clearance Certificate and Tamil Nadu Pollution Control Board approval) are mandatory before constructing or commissioning a medical institution under distinct environmental statutes, they are not qualifying criteria prescribed under Form 2 for evaluating the grant of an Essentiality Certificate. The lack of an environmental clearance at the threshold cannot serve as a ground for the State to withhold or defer the processing of an Essentiality Certificate.”
Operative Outcome
The Madras High Court allowed the appeal filed by Chettinad Academy of Research and Education, quashed the order of the Single Judge, and directed the State Health Department to process the Essentiality Certificate application without insisting on the prior production of an Environmental Clearance Certificate or a certificate from the Tamil Nadu Pollution Control Board. The Court made it clear that while such environmental clearances remain obligatory under environmental laws for actual construction and operation, they are not conditions precedent for the grant of an Essentiality Certificate.
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