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Pollution control boards (PCBs) can impose environmental compensation: Supreme Court (SC) | Current Affairs | Vision IAS
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Pollution control boards (PCBs) can impose environmental compensation: Supreme Court (SC)

Posted 05 Aug 2025

2 min read

SC in Delhi Pollution Control Committee VS Lodhi Property co. ltd. case overturned Delhi High court ruling which held that only courts could impose environmental compensations (EC).

  • Environmental compensation is a policy instrument for the protection of the environment which works on the Polluter Pay Principal.

Key highlights of the rulings:

  • Statutory mandate: PCBs can impose penalties for environmental compensation in exercise of powers under Section 33A of Water Act, 1974 and Section 31A of the Air Act, 1981.
  • Polluter Pays principle: PCBs can’t impose penalties in every contravention under the Acts but only when environmental harm has been caused by the erring entity.
    • In Indian Council for Enviro-Legal Action v. UoI, SC held that according to Polluter Pays principle, responsibility for repairing the damage is that of offending industry.
  • Appropriate Course of Action: Boards can decide whether a polluting entity needs to be punished by imposition of penalty or if situation demands immediate restoration of environmental damage by the polluter or both.
    • SC in Vellore Citizens’ Welfare Forum v. Union of India (1996) also held that liability for environmental damage includes both a compensatory and remedial aspect.
  • Preventive or ex ante measures can be taken by regulators.

Pollution Control Boards (PCBs) in India:

  • Central PCB: 
    • statutory organization under Ministry of Environment, Forest and Climate Change
    • Constituted under Water (Prevention and Control of Pollution) Act, 1974.
      • Also it was entrusted with the powers under the Air (Prevention and Control of Pollution) Act, 1981.
    • Role: prevents air and water pollutions and Advise the Central Government on any such matter 
  • State Pollution Control Boards (SPCBs): Also constituted under same acts to supplement CPCB to implement Environmental Laws and rules within the jurisdiction of a state.
  • Tags :
  • Environmental Compensation
  • Pollution Control Boards
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