In 2022, a resident of Malibu Towne had filed a petition with the NGT, alleging that ten diesel generators were operating illegally in the colony's green belt and that there was rampant dumping of construction and demolition (C&D) waste in the area.

In March 2022, the Haryana State Pollution Control Board (HSPCB) conducted inspections and discovered that Malibu Towne was discharging untreated sewage into its drains. This led HSPCB to issue a closure notice to the colony's developer for failing to obtain the necessary environmental clearances and other permissions in December 2022. Although residents were not directly affected, the board's directive prohibited any new property sales and required that no new possession or occupancy be permitted in the project. Additionally, DHBVN was instructed to refrain from providing any new electricity connections, and all ongoing construction activities were suspended.

After the developer argued that there were no requirements for mandatory environmental clearance when the colony was developed decades ago, the NGT directed SEIAA in July of last year to inspect the case and determine if permission was needed. In March of this year, the green tribunal also summoned officials from the Municipal Corporation of Gurugram (MCG), HSPCB, and the department of country and town planning, after noting that the committee formed to investigate the petition had provided vague and evasive responses.

During a hearing on September 19, Rahul Khurana, representing SEIAA, requested an additional four weeks to reach a conclusion. Acknowledging the urgency of the matter, the NGT emphasized the need for prompt action. Judicial magistrate Sudhir Agarwal and expert member Dr. Afroz Ahmad stated in the order that the process should proceed as indicated. The next hearing scheduled for October 10.