Industrial Effluent - The Legal Chamber

This Supreme Court judgment underscores that the National Green Tribunal must adhere to statutory procedures and principles of natural justice when passing adverse orders. The Supreme Court set aside the NGT's orders, holding that imposing environmental compensation without making the appellant a party, providing a hearing, or following the mandatory sampling process under the Water Act, 1974, renders the decision illegal and void. Facts Of The Case: The case originated from a complaint filed before the National Green Tribunal (NGT) alleging that M/s Triveni Engineering and Industries Ltd. was discharging untreated effluent from its Muzaffarnagar sugar mill, contaminating the local groundwater. The NGT constituted a Joint Committee to inspect the unit. Based on the Committee's reports, w...

In this judgment, the Supreme Court curtailed the National Green Tribunal's (NGT) powers, ruling that environmental compensation cannot be arbitrarily linked to a polluter's turnover, lacking a direct nexus to the actual damage. It also held that the NGT lacks jurisdiction to direct investigations by the Enforcement Directorate under the PMLA, affirming that such actions require a scheduled offence to be registered. The Court emphasized that penalties must be determined based on established methodologies and legal principles, not rhetoric. Facts Of The Case: The case originated from a Public Interest Litigation (PIL) filed by Adil Ansari before the National Green Tribunal (NGT) in 2019 against M/s C.L. Gupta Export Ltd. The allegations were that the company, an exporter of handicraft ite...

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Supreme Court Sets Aside NGT Order, Rules Tribunal Can’t Outsource Its Decision-Making to Committees

Supreme Court Slashes NGT’s ₹50 Crore Fine, Rules Turnover Can’t Dictate Environmental Penalty