ABSTRACT The underground layers of cities are constantly concreted with urban transformation projects. The studies on built environment mainly focus on the morphological changes, related dispossessions and observable aspects of urban landscape. However, the environmental costs of transformations are not limited to the impacts of above-ground interventions. In Istanbul, the major impact of subterranean interventions is the destruction of water and soil ecosystems as well as its multi-layered heritage as the large-scale urban transformation decisions are primarily applied to historic neighbourhoods where the existing building stock was appropriated by the urban precariat. The urban transformation projects in historic neighbourhoods of Istanbul come into question with socio-economic dispossessions rather than environmental justice. In this manuscript, the main aim is to address the socio-ecological impacts of planning and architectural design decisions disregarding subterranean construction density, through the case of Tarlabaşı in Istanbul. Tarlabaşı represents one of the most emblematic case in Istanbul’s urban resistance history and evokes eco-dystopias, which may be attributed to the decisions that justify stigmatisation. With the context, conceptual frame and scope set by these problem definitions, while considering urban inequality a pre-condition of environmental justice, this manuscript examines the correlation between environmental policies, social stigmatisation and flexed environmental values in planning and architecture culture via local political ecology. The methodology employed in the study is based on qualitative analysis of the stages and legal decisions involved. Archival documents on the study area were used to identify the local variables contributing to the deterioration of socio-ecological unity for future discussions.