Environmental Audit and Environment Statement (Form V)
Every unit that needs consent under the Water Act or the Air Act, or authorisation under the hazardous waste rules, must file an Environment Statement in Form V with the state pollution control board by 30 September each year. Since the Environment Audit Rules, 2025, third-party audits by Registered Environment Auditors are also part of the picture. We prepare the data, file on time and work with your auditors and labs.
What it is
An environmental audit is a check of how your unit actually performs against the environmental laws and the conditions in its consents and clearances. It looks at what goes in (water, raw materials, energy), what comes out (effluent, emissions, waste) and whether the controls you promised are working. In Indian law, the most common form is the annual Environment Statement.
Rule 14 of the Environment (Protection) Rules, 1986 requires every person carrying on an industry, operation or process that needs consent under Section 25 of the Water Act, 1974 or Section 21 of the Air Act, 1981, or authorisation under the hazardous waste rules, to submit an Environment Statement in Form V to the state pollution control board. It covers the financial year ending 31 March and is due on or before 30 September. In Haryana it goes to the Haryana State Pollution Control Board (HSPCB).
On 29 August 2025 the MoEFCC also notified the Environment Audit Rules, 2025 under the Environment (Protection) Act, 1986. They create Registered Environment Auditors who check compliance, take samples and verify self-compliance reports, with audits assigned at random.
Who it applies to
Every unit with a consent
Any factory or facility that needs Consent to Establish or Operate under the Water Act or Air Act. In practice that is most red, orange and green category units in Haryana.
Units that generate hazardous waste
Units holding authorisation under the hazardous waste rules file Form V too. A small paint or chemical unit in an industrial sector of Faridabad can fall in here even with a modest water and air footprint.
Projects running under an EC
Projects holding EC under the EIA Notification, 2006 also file half-yearly compliance reports on PARIVESH, and these are open to third-party verification.
Why it matters
Meet a statutory deadline
Rule 14 requires it every year, whether or not the board asks.
Back up your consent file
The board reads your consent file as a whole. Annual statements that match your consent conditions make renewals and inspections smoother. Take a Faridabad electroplating unit whose Form V shows more water used than its consent allows. The board can read that line too, so it is better found and fixed first.
Catch problems before inspectors do
Comparing water, raw material and waste figures year on year shows losses and control gaps before an inspector does.
Types of environmental audit
| Type | Legal basis | Who does it | When |
|---|---|---|---|
| Environment Statement (Form V) | Rule 14, Environment (Protection) Rules, 1986 | The unit, filed with the state board | Every year by 30 September |
| Third-party environment audit | Environment Audit Rules, 2025 | Registered Environment Auditor, assigned at random | As required under the rules |
| EC compliance report | Para 10, EIA Notification, 2006 | The project proponent, on PARIVESH | Half-yearly |
| Voluntary internal audit | ISO 14001 certification or company policy | Internal team or certification body | As planned |
Documents required
Production records
- Production quantities by product for the year
- Raw material consumption
- Water consumption by purpose
- Fuel and power use
Monitoring and waste
- Effluent and stack monitoring reports from an accredited laboratory
- Hazardous waste generation and disposal records
- Solid waste quantities and disposal route
Approvals on file
- Current consents under the Water and Air Acts
- Hazardous waste authorisation
- EC letter and earlier compliance reports, if any
- Previous year’s Form V
How it works
Collect the year’s data
We gather production, raw material, water and waste figures for the financial year. Because we also handle book-keeping and accounts, we cross-check them against your purchase and sales records.
Match it to your consent conditions
Each figure is compared with the limits in your consents and EC. Here is the catch: a statement can be filed on time and still cause trouble if it quietly shows a breach. So we flag every gap to you first.
Prepare and file Form V
We draft the Environment Statement, take your sign-off and submit it to HSPCB before 30 September.
Support third-party audits
When a Registered Environment Auditor is assigned, we prepare the document set and coordinate visits. Sampling and testing are done by the auditor and accredited labs, not by us.
Timelines
Form V
On or before 30 September, for the financial year ending on 31 March. For FY 2025-26, that is 30 September 2026.
EC compliance reports
Half-yearly on PARIVESH, for projects holding environmental clearance.
Data collection
Start by June, once the year’s books are closed. In practice, units that begin in September end up filing estimates, and estimates are hard to defend.
What happens if you skip it
Penalty under Section 15
Contravening the Environment (Protection) Act or its rules attracts a penalty of not less than ₹10,000, up to ₹15 lakh, plus ₹10,000 a day while it continues.
Closure directions
Section 5 of the Act allows directions for closure of a unit or stoppage of electricity and water supply.
Questions at renewal
Missing statements show up when the board reviews your file, and you will be asked to explain them.
Frequently asked questions
What is the due date for the Environment Statement in Form V?
Form V is due on or before 30 September every year, for the financial year ending on 31 March. So the statement for FY 2025-26 was due by 30 September 2026. It is filed with the state pollution control board, which is HSPCB for units in Haryana. If you missed it, file as soon as possible with the correct data, and we can help you prepare it quickly.
Who has to file an Environment Statement?
Any unit that needs consent under Section 25 of the Water Act, 1974 or Section 21 of the Air Act, 1981, or authorisation under the hazardous waste rules, must file it under Rule 14 of the Environment (Protection) Rules, 1986. That covers most factories that hold Consent to Operate. If you are unsure whether your unit falls in, send us your consent letters and we will confirm it.
What are the Environment Audit Rules, 2025?
They are rules the MoEFCC notified on 29 August 2025 under the Environment (Protection) Act, 1986, creating a system of Registered Environment Auditors. These auditors check compliance, take samples, verify self-compliance reports and carry out audits under waste and green credit rules. Pollution control boards keep their own inspection powers. We track how the rules are being applied and tell you what changes for your unit.
Can we choose our own Registered Environment Auditor?
No, not for audits assigned under the rules. The government has said Registered Environment Auditors will be assigned by a random method, so that the unit being audited does not pick its auditor. This is meant to remove conflicts of interest. What you control is your own readiness: clean records, current consents and monitoring reports. We help you keep that file ready all year.
Is Taxhint a Registered Environment Auditor?
No. We are a CA and CS firm, and we do not carry out sampling, testing or technical audits. Those are done by Registered Environment Auditors, accredited laboratories and consultants. Our role is the data, the drafting and the filing: we prepare your Form V, reconcile production figures with your books, keep the compliance calendar and coordinate with auditors and labs, so the technical work rests on accurate records.
What information goes into Form V?
Form V asks for the year’s water and raw material consumption, pollutants discharged to air and water, hazardous and solid waste generated and how it was disposed of, and the pollution control measures in place. Figures must match your production records and lab reports. We build the statement from your books and monitoring data, so the numbers hold up if the board ever asks for the underlying records.
Do green category units in Haryana need an environmental audit?
If they hold consent under the Water or Air Act, yes, the Form V rule applies. HSPCB has also moved towards self-certification and third-party checks: for applications from 15 November 2025, green MSMEs can get their first CTO on self-declaration, while large green units rely on a Board-empanelled third-party inspection-cum-audit report. Either way, accurate annual data is your best protection, and we help units of every size keep it in order.
Is an ISO 14001 audit the same as an environmental audit?
No. An ISO 14001 audit checks your environmental management system against a voluntary standard, while Form V and audits under the Environment Audit Rules, 2025 are legal requirements. They support each other well, because an ISO system produces the records a legal audit needs. Having ISO certification does not replace the Form V filing due every 30 September, so plan for both.
What happens if we never filed Form V in earlier years?
The gap is a contravention of Rule 14, and Section 15 of the Environment (Protection) Act provides a penalty from ₹10,000 up to ₹15 lakh. The practical fix is to compile and file the missing statements with honest data, starting with the most recent year. We can rebuild past figures from your accounts and records, so the catch-up filings are accurate.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Laboratory monitoring charges and any auditor’s fees are separate and paid directly to them.
Ready to begin?
Send us your consent letters and last year’s production figures, and we will prepare your Form V and set up your environmental compliance calendar.