Regulatory Failure - The Legal Chamber

This Supreme Court judgement reaffirms that a valid District Survey Report (DSR), prepared under the EIA Notification, 2016, is mandatory for granting environmental clearance for sand mining. The Supreme Court held that a DSR is legally untenable without a scientific replenishment study, as it forms the foundational basis for determining sustainable extraction limits and ensuring ecological balance. Facts Of The Case: The case originated from the grant of an Environmental Clearance (EC) for sand mining in three blocks on the Shaliganga Nallah in Jammu & Kashmir. The project proponent, contracted by the National Highway Authority of India for a Srinagar ring road, applied for the EC. Initially, the J&K Expert Appraisal Committee (EAC) rejected the proposal in January 2022, citing ...

The Supreme Court ruled that Regulatory Assets, while a valid regulatory tool, must be created only in exceptional circumstances and liquidated in a time-bound manner. It upheld the legal framework under the Electricity Act, 2003, and directed strict adherence to the newly inserted Rule 23 of the Electricity Rules, which mandates a maximum 3% gap in revenue and a 7-year liquidation period for existing assets. The judgment emphasizes the duty of Regulatory Commissions to ensure cost-reflective tariffs and affirms APTEL's power under Section 121 to issue directions against regulatory failure. Facts Of The Case: The case originated from petitions and appeals filed by three private power distribution companies (Discoms) in Delhi—BSES Rajdhani, BSES Yamuna, and Tata Power Delhi—agains...

Tag: Regulatory Failure

Explained: The Supreme Court’s Landmark Ruling on Sand Mining and Environmental Clearance

Who Pays for Unpaid Power Bills? Supreme Court Explains ‘Regulatory Asset’ Mess and Orders a Fix