What upfront due diligence confirms environmental and zoning compliance?

Before acquiring or leasing industrial land, especially for long-term use or development, upfront due diligence is essential to confirm that the parcel meets environmental standards and zoning regulations. This protects against regulatory delays, financial penalties, or future legal exposure.

Below are the key due diligence steps that ensure the site complies with environmental and zoning requirements:

1. Zoning Classification Verification

• Obtain a certified land use certificate or zoning confirmation letter from the local planning authority (e.g., DTCP, CMDA, SIPCOT).
  
• Check:
  
  • Whether the land is zoned for industrial use (general, heavy, or special).
    
  • Whether any land use conversions or rezoning approvals are pending or required.
    
  • Minimum plot size, setback, and height restrictions under the applicable Development Control Regulations (DCR).

2. Master Plan and Surrounding Use Compatibility

• Review the city or regional master plan to verify:
  
  • Long-term industrial land designation
    
  • Buffer zone requirements (especially near residential or agricultural zones)
    
  • Compatibility with surrounding land use (e.g., other industrial units, infrastructure corridors)
    
• Confirm no conflicts exist that could trigger environmental or legal objections.

3. Environmental Site Assessment (ESA) – Phase I

• Conduct a Phase I ESA to identify:
  
  • Past land uses (e.g., gas station, landfill, chemical use)
    
  • Potential contamination risks (oil, heavy metals, groundwater)
    
  • Regulatory violations or cleanup notices
    
• Should be performed by a certified environmental consultant and include site visits, interviews, and historical records review.

4. Environmental Clearance and Statutory NOCs

• Verify whether the land:
  
  • Falls under EIA Notification category (especially for large or Red Category industries)
    
  • Requires Environmental Clearance (EC) or Consent to Establish (CTE) from the State Pollution Control Board
    
• Check for required approvals related to:
  
  • Groundwater extraction
    
  • Tree felling
    
  • Wetland proximity or eco-sensitive zones (if applicable)

5. Drainage and Topography Assessment

• Assess:
  
  • Whether the site falls in a natural drainage path or a low-lying flood-prone zone
    
  • Need for stormwater management systems (e.g., retention ponds, recharge wells)
    
• Include a topographical survey and hydrological report to support buildability and environmental compliance.