Beware of Dummy STP & ETP Plants – Hidden Risks & How to Avoid Them
How the Dummy-Plant Scam Works
- Cheap Quote: Broker promises a ₹3 lakh “STP” that will pass inspection.
- Cosmetic Setup: Undersized tanks, painted pipes, no real aeration.
- One-Day Demo: Plant runs potable water during PCB visit—results look perfect.
- Vanishing Act: Contractor disappears; plant fails within weeks.
Hidden Costs & Legal Risk
| Risk | Penalty / Impact |
|---|---|
| PCB Surprise Audit | ₹5–25 lakh + shutdown |
| NGT Notice | Environmental compensation & criminal liability |
| High Water Bills | No reuse; 30–40 % higher OPEX annually |
| Brand Damage | Loss of green ratings & tenders |
Real-Life Example
A 60-room hotel bought a “dummy” 10 KLD STP. Within 8 months PCB re-inspected, imposed a ₹12 lakh fine and shut the property until a real plant was installed. Total loss: ₹38 lakh.
Red Flags to Watch
- 🧾 No P&ID or detailed BOQ
- 📏 Tank volumes don’t match design flow
- 💵 Suspiciously low CAPEX (<₹6 lakh for 10 KLD)
- 🔌 No automation / single switch control
Choose a Genuine Supplier
- ✔ Demand drawings, guarantees, and serial-numbered equipment.
- ✔ Ask for live project references.
- ✔ Ensure performance testing before hand-over.
Need Help? Get a Free Compliance Audit
Call/WhatsApp: +91-94644-88006 — we’ll inspect your site and deliver a genuine solution anywhere in India.
Frequently Asked Questions
What is a dummy STP or ETP plant?
It’s a non-functional setup installed only to pass PCB/NGT inspection, often using undersized tanks or second-hand pumps.
What penalties can I face for a dummy plant?
Fines up to ₹25 lakh, plant closure, environmental compensation, and possible criminal liability.
How do I verify a genuine STP/ETP supplier?
Demand detailed P&ID, BOQ, performance guarantees, past client references, and a live test during hand-over.