Supreme Court Overturns NGT’s Rs. 25 Crore Penalty for Environmental Violations.
27 November 2024
Civil Appeals >> Civil & Consumer Law | Environment Protection >> Environmental Law
This case of Benzo Chem Industrial Private Limited vs Arvind Manohar Mahajan and Others involves appeals challenging two orders passed by the National Green Tribunal (NGT) in 2022, one imposing a penalty of Rs. 25 Crores on the appellant for environmental non-compliance, and the other rejecting a review application. The appellant contends that the NGT’s orders were based on incorrect facts and failed to consider the reports from the Maharashtra Pollution Control Board (MPCB) and the National Environmental Engineering Research Institute (NEERI), which indicated compliance with environmental standards.
The NGT had observed that the appellant’s unit had remained non-compliant with environmental regulations from 2010 to at least 2020, citing various inspection reports. However, the appellant presented evidence, including MPCB inspections, showing compliance during this period. The appellant argued that the NGT’s decision to impose a penalty based solely on the appellant's revenue range (Rs. 100 Crores to Rs. 500 Crores) was flawed, as it lacked any logical connection to environmental damages.
The court criticized the NGT for not adhering to legal principles when imposing the penalty, and for failing to give proper notice before such a heavy fine was levied. Ultimately, the court quashed the NGT’s orders, ruling in favor of the appellant and allowing the appeal. It also stated that if any further environmental concerns arise, they should be addressed through the appropriate legal forum following due process.
Environment (Protection) Act, 1986