Acquiring a plant, a company or a land parcel means acquiring its environmental history: contaminated soil, lapsed consents, pending NGT matters, hazardous waste legacies and EPR arrears all follow the asset. Our environmental due diligence combines a Phase I site assessment, regulatory compliance review and liability estimation into a report that investors, lenders and acquirers can use to price the deal, structure indemnities and set post-closing conditions.
Legal basis: Transaction-driven assessment of liabilities arising under the Environment (Protection) Act, 1986, Water Act, 1974, Air Act, 1981, Hazardous and Other Wastes Rules, 2016 (including contaminated-site provisions), EPR regimes and the polluter-pays principle under Section 20 of the National Green Tribunal Act, 2010; IFC Performance Standards and Equator Principles for project finance
Who needs it
- Private equity and strategic acquirers buying manufacturing, chemical, pharma, recycling or infrastructure assets
- Banks, NBFCs and DFIs lending against industrial assets or financing projects under IFC / Equator Principles requirements
- Real-estate developers acquiring former industrial land for redevelopment
- Companies divesting plants that want a vendor due diligence to pre-empt price chips
- Boards approving a merger or slump sale that need environmental liabilities quantified for warranties and indemnities
- Lessees taking over an operating facility whose consents and authorizations must be transferred
Common in:Manufacturing & Industrial UnitsRecyclers & Waste ProcessorsPharma & ChemicalsReal Estate & Infrastructure
Documents required
- 1Site history: ownership records, prior land use, aerial / satellite imagery and local-authority records
- 2All current and past consents, authorizations, EC and clearances with compliance reports
- 3SPCB inspection reports, show-cause notices, directions and correspondence for the past 5–10 years
- 4Details of pending or past litigation before NGT, High Courts or SPCB appellate authorities
- 5Hazardous waste inventory, manifests, storage history and any records of spills or incidents
- 6Underground and above-ground storage tank records and integrity tests
- 7Groundwater and soil quality data, if any, and CGWA NOC status
- 8EPR registrations, targets and annual returns for plastic, e-waste, battery or tyre obligations
- 9Capital expenditure on pollution control and pending regulatory commitments
- 10Environmental insurance policies and Public Liability Insurance
Missing something? We help you obtain or regularise supporting documents before filing.
How we get it done
- 1
Scoping and data request
Week 1We agree the scope with the deal team — asset perimeter, Phase I depth, compliance period and reporting format — and issue a data request list for the data room.
- 2
Records review and regulatory search
Week 1–2Historical records, regulatory files, litigation databases and satellite imagery are reviewed to identify recognised environmental conditions and compliance gaps.
- 3
Site reconnaissance and interviews
Week 2–3Our team inspects the site and surroundings, interviews current and former operators, and documents conditions indicating potential contamination or non-compliance.
- 4
Liability assessment and red-flag report
Week 3–4Findings are ranked by likelihood and financial impact with order-of-magnitude cost estimates for remediation, regularisation and capex, and a red-flag summary is issued to the deal team.
- 5
Phase II recommendation and deal support
Week 4–6Where contamination is suspected, we scope intrusive Phase II sampling. We support SPA negotiations on indemnities, escrow and conditions precedent, and design the post-closing compliance plan.
If you don’t comply
Environmental liabilities transfer with the asset: the acquirer inherits consent non-compliances, pending NGT proceedings and remediation obligations under the polluter-pays principle, and the NGT has imposed environmental compensation running into crores on current owners for legacy contamination. Lenders face impaired collateral and reputational exposure when an asset is shut down by the SPCB. A due diligence that is skipped or superficial converts these into post-closing surprises that the purchase price did not reflect.
Why MYDA Group
Specialists, not generalists
Environmental compliance is our only practice, so your file is handled by people who do this every day.
Fixed fee, written scope
You know the professional fee and the statutory fees before we start. No surprise add-ons.
Inspection and audit-ready
We prepare your site and team for the board visit or certification audit and attend it with you.
Lifetime reminders
Every condition, return and renewal goes into your compliance calendar with alerts.
Frequently asked questions
What is the difference between Phase I and Phase II assessments?
A Phase I Environmental Site Assessment is a non-intrusive review of records, interviews and site inspection to identify recognised environmental conditions — potential contamination or liabilities. A Phase II involves intrusive investigation such as soil borings, groundwater monitoring wells and laboratory analysis to confirm whether contamination exists and estimate its extent and remediation cost. Phase II is triggered only where Phase I finds credible indications.
How long does environmental due diligence take in a live deal?
A desktop and Phase I review for a single site can be delivered in three to four weeks, with a red-flag summary within the first ten working days to feed the deal timetable. Multi-site portfolios and Phase II sampling extend the timeline, and we work in parallel with legal and financial diligence teams to align on findings.
Can environmental liabilities be ring-fenced in the transaction?
To a degree. Specific indemnities, escrow for identified remediation, price adjustments and conditions precedent (such as consent renewals or regularisation of violations) are common. However, statutory liability to the regulator and the NGT attaches to the current occupier or owner regardless of contract, so contractual protection must be backed by a realistic post-closing compliance plan.
Do you also assess social and community issues?
Yes, where the lender or investor applies IFC Performance Standards or Equator Principles, we extend the scope to community grievances, land acquisition history, labour conditions and public-hearing commitments made under the EC, and benchmark the asset against those standards.