Supreme Court Ruling on Environmental Compensation
The Supreme Court has affirmed that environmental regulators, including Pollution Control Boards, have the authority to impose environmental compensation and require bank guarantees from polluting entities. This is part of preventive measures to address potential environmental damage.
Key Points from the Judgment
- The court clarified that these actions by state boards are lawful under Sections 33A and 31A of the Water and Air Acts.
- The court distinguished between restitutionary/compensatory damages and punitive actions, such as fines or imprisonment.
Polluter Pays Principle
- The court underscored the application of the polluter pays principle in Indian environmental law.
- Compensation can be demanded based on the potential for environmental harm, not just actual degradation.
Case Reference and Background
- The judgment aligns with the National Green Tribunal's view in the Swastik Ispat Pvt Ltd case, supporting the use of bank guarantees for environmental compliance.
- The Delhi Pollution Control Committee's appeal highlighted the High Court's previous ruling, which viewed compensatory damages as penalties under specific chapters of the Water and Air Acts.
