He was speaking at the International Conference on Environment organised by the National Green Tribunal (NGT) here.
"Tribunals are doing a great job. But I would like to tell the tribunals and other regulators that regulation should be a facilitation. Regulation should not become strangulation.
"At the same time, disposal of issues helps, otherwise what will happen if you stay something for a certain period... you are staying growth. This has to be understood," he said.
He also stressed the need of having a better public transport system in place to ensure less number of vehicles on roads.
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Lauding the prime minister's Swachh Bharat Mission, the vice president said it was crucial to strike a balance between development and environment.
"We are living under the regime of LPG (Liberalisation, Privatisation and Globalisation). But LPG and SDG (Sustainable Development Goals) must go hand-in-hand. Academic growth should not be seen as independent of environment. What nation needs is sustainable economic growth," he said.
He added that "worsening air quality, extreme water scarcity and humongous waste generation were threatening human existence and environment".
Highlighting the problem of rapid urbanisation, the vice president said people were migrating from rural areas to urban areas for better living.
"But are they having a better living?" he asked.
"People are moving to cities for education, employment, entertainment, economic upliftment and enhancement of facilities. These are the five Es driving people to urban settlements," he said.
"Speaking about population is unpopular these days as people think you are trying to forcefully sterilise them. I am not saying this, people have to understand that land and water are same, but the population is increasing," Naidu lamented.
Chief Justice Dipak Misra said everyone has a right to breathe fresh air and drink pure water, and the tribunals, courts and governments have a "sacrosanct" duty to see that an appropriate standard of environment is maintained.
"The nature tells you every moment and warns you every moment that whatever you are doing, is being watched. The day has come when you have to care for the mother nature every day, every hour, every moment," he said.
"Being one of the most bio diverse nations of the world, India has been on the forefront in leading and joining many initiatives aimed at ensuring environmental sustainability.
"But, now we are facing unprecedented environmental challenges. Our water bodies are getting contaminated. The aquatic environment is under threat like never before," he said.
Attorney General K K Venugopal drew attention towards the "pro-active" role of the Supreme Court in environment-related cases, and said there had been tremendous deterioration of forests due to lack of awareness on ecological issues.
NGT chairperson Justice Swatanter Kumar, who delivered the welcome address, highlighted the role of the green panel in the speedy disposal of environment-related cases.
He said till September, 2017, the panel has disposed 19,970 out of 23,341 cases at a rate of 85.5 per cent.
The function was also attended by Justice Antonio Herman Benjamin of the National High Court of Brazil, Acting Chief Justice of Delhi High Court Gita Mittal, and dignitaries from 35 countries.