The counsel for the residents told a bench headed by NGT Chairperson Justice Swatanter Kumar that the plant is situated in the midst of the habitation and residential area which is strictly impermissible under the Delhi Master Plan.
Senior advocate Amit Chadha, appearing for Sukhdev Vihar Residents Welfare Association, alleged that large number of trucks carry thousands of metric tonnes waste to the plant cause traffic and pollution problems in the area which has hospitals also.
Referring to solid waste management manual prepared by the urban development ministry, he said incineration plants should be located at least 300 to 500 metres away from residential areas.
The area was marked to be a district or city park in the master plan and not as a landfill site or a site for waste processing, he added.
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The hearing remained inconclusive and will continue tomorrow.
The tribunal had earlier rapped the South Delhi Municipal Corporation (SDMC) over "inaccurate" data on various kinds of waste generated in the national capital daily.
The tribunal was hearing a plea filed by Sukhdev Vihar Residents Welfare Association praying for closure of waste-to- energy plant alleging that it uses illegal mass burning technology, causing air pollution.
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