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Madras High Court· 08 September 2026

Can the State Government withhold an Essentiality Certificate for want of environmental clearance, where that clearance is not a Form 2 requirement?

Chettinad Academy of Research and Education v. The State of Tamil Nadu
WA.83/2026 · 2026:MHC:3645 · W.A.No.83 of 2026
Coram: Justice G.Arul Murugan · Justice Sushrut Arvind Dharmadhikari
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Answer

The State Government cannot withhold an Essentiality Certificate for want of environmental clearance, where that clearance is not a Form 2 requirement.

No. The State Government cannot withhold an Essentiality Certificate for want of environmental clearance, where that clearance is not a Form 2 requirement. Form 2 confines the enquiry to local manpower deficiency, doctor-population ratio, public interest, site feasibility and clinical material. Environmental compliances are mandatory before construction or commissioning under distinct statutes, but the lack of them at the threshold cannot defer processing of the certificate.

Headnote

Establishment of Medical College Regulations, 1999 — Form 2 — Establishment of New Medical Institutions Regulations, 2023 — regs.2(f), 9(a) — Essentiality Certificate — Scope of the State's enquiry — Environmental clearance — Establishment of Medical College Regulations, 1999 — Form 2 — The State's enquiry is delegated and confined — Held: The State's role is confined to assessing local medical manpower deficiency, doctor-population ratio, public interest, site feasibility and clinical material; it cannot act arbitrarily or insist upon parameters outside Form 2 or the governing legislation. (¶17) Environmental clearance — Not a qualifying criterion under Form 2 — Held further: Environmental clearance and Pollution Control Board approval, though mandatory before construction or commissioning, are not qualifying criteria under Form 2, and their absence cannot ground a refusal to process the certificate. (¶18) Essentiality Certificate — Conditional grant — Condition outside Form 2 — Held further: A certificate conditional upon a mandatory Form 2 requirement is no certificate at all; that narrow proposition does not extend to a condition lying wholly outside Form 2. Writ appeal allowed. (¶12)

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In the Court's own words
Paragraph 17Applying the statutory framework, we find that the role of the State Government in issuing an Essentiality Certificate is well- defined. The statutory delegation under Form-2 of the Regulations, 1999 limits the inquiry to be conducted by the State to assessing local medical manpower deficiencies, doctor-population ratios, public interest/desirability, site feasibility and the availability of adequate clinical material. The State Government should act within the delegated capacity to evaluate local needs and feasibility. It cannot act arbitrarily or insist upon parameters outside the scope of Form 2 or the governing Parliamentary legislation.
Paragraph 18While 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.
Acts & Sections
Form 2 Establishment of Medical College Regulations, 1999reg.2(f) Establishment of New Medical Institutions Regulations, 2023reg.9(a) Establishment of New Medical Institutions Regulations, 2023s.60(4) National Medical Commission Act, 2019

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Also decided in this judgment
Does a condition attached to an Essentiality Certificate render it void unless the condition concerns a mandatory Form 2 requirement?Must an Essentiality Certificate be valid at the time the application to establish a medical institution is submitted?
Plain-language answer prepared by the LexStreak Editorial Desk — verify against the judgment. Source: Madras High Court. Corrections