Court directs State Government to grant Essentiality Certificate based on statutory criteria without demanding prior Environmental Clearance and Pollution Control Board approvals.
In a landmark judgment dated September 8, 2026, the Division Bench of the Madras High Court, comprising Chief Justice Sushrut Arvind Dharmadhikari and Justice G. Arul Murugan, clarified the scope and procedural requirements for granting Essentiality Certificates to medical colleges under the Establishment of Medical College Regulations, 1999. The judgment arose from a dispute involving the Chettinad Academy of Research and Education, which challenged the Tamil Nadu State Government’s insistence on Environmental Clearance Certificate and Tamil Nadu Pollution Control Board (TNPCB) approval as preconditions for issuing the Essentiality Certificate necessary for establishing a medical college.
The appellant, having acquired land previously owned by Ponnaiyah Ramajayam Institute of Science and Technology (PRIST Trust) through a SARFAESI Act auction, sought to set up a medical college named Chettinad Institute of Medical Sciences. The PRIST Trust had an Essentiality Certificate granted in 2014 for the same property. However, after the college ceased operations and recognition was withdrawn, the State demanded new environmental and pollution clearances before considering the appellant’s application for a fresh Essentiality Certificate.
The Single Judge had earlier directed the appellant to obtain the Environmental Clearance Certificate and TNPCB approval before the State would process the Essentiality Certificate application. The appellant contended that such environmental approvals were not stipulated requirements under Form 2 of the 1999 Regulations and thus should not be conditions precedent for the Essentiality Certificate. Furthermore, the appellant argued that under Section 13(6) of the SARFAESI Act and the saving clause in Section 60(4) of the National Medical Commission Act, 2019, the Essentiality Certificate granted to the previous institution should transfer to the auction purchaser.
Upon hearing the parties, the Division Bench found that the Single Judge’s order failed to address these substantive grounds. The Court held that the Essentiality Certificate’s statutory framework limits the State Government’s inquiry to assessing medical manpower needs, doctor-population ratios, public interest, site feasibility, and availability of adequate clinical material as per Form 2 of the 1999 Regulations. Environmental clearance and pollution control approvals fall outside this scope and pertain to separate regulatory regimes.
The Court emphasized that withholding or delaying the grant of the Essentiality Certificate on the ground of non-availability of environmental clearances is not justified. It clarified that environmental and pollution approvals are mandatory but should be obtained at appropriate stages under their respective statutes, not as preconditions for the Essentiality Certificate. The judgment also distinguished the Supreme Court’s precedent in Medical Council of India v. V.N. Public Health and Educational Trust (2016), explaining that conditions attached to Essentiality Certificates must relate to statutory criteria and that the principle does not invalidate conditional certificates concerning extraneous factors like environmental clearance.
Consequently, the Madras High Court set aside the Single Judge’s order and directed the State Government to consider the appellant’s application for the Essentiality Certificate strictly based on the criteria in Form 2 of the 1999 Regulations, without insisting on prior environmental or pollution control approvals. The Court left open other ancillary issues for future consideration and refrained from imposing costs.
This judgment underscores the importance of adhering to statutory mandates and prevents administrative overreach by clarifying procedural limits in medical education infrastructure development. It also provides clarity for medical institutions and authorities about the sequencing and scope of regulatory approvals, ensuring that environmental compliance does not unduly delay medical education expansion initiatives.
Bottom Line:
Essentiality Certificate for establishing a medical college - Environmental Clearance Certificate and Pollution Control Board approval are not preconditions prescribed under Form 2 of the Establishment of Medical College Regulations, 1999, for the grant of an Essentiality Certificate.
Statutory provision(s):
Establishment of Medical College Regulations, 1999 (Form 2), Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 Section 13(6), National Medical Commission Act, 2019 Section 60(4)
