New Delhi: The Supreme Court on Thursday said that state pollution control boards cannot impose environmental compensation charges without the formulation of subordinate legislation.
A bench of Justices P S Narasimha and Alok Aradhe issued the direction after the Centre said that a new law is being formulated while taking into account several other aspects related to environmental protection.
The bench said the clarification is necessary as several high courts have passed orders staying the collection of environmental compensation charges only on the ground of the formulation of subordinate legislation.
Additional Solicitor General Archana Pathak Dave, appearing for the environment ministry, submitted that deliberations are going on at the highest level and the government is contemplating enacting a new law.
The counsel, appearing for petitioner Delhi Pollution Control Committee (DPCC), said that nobody should go scot-free in the absence of rules.
The bench posted the matter for further hearing on August 10 as it took into account the verdict of August 4 last year by which it held that the pollution control boards can impose and collect as restitutionary and compensatory damages fixed sums of money or require furnishing bank guarantees as an ex-ante measure towards potential environmental damage in the exercise of powers under Sections 33A and 31A of the Water and Air Acts.
On August 4 last year, the bench said the power to impose or collect restitutionary or compensatory damages or the requirement to furnish bank guarantees as an ex-ante measure under Sections 33A and 31A of the Water and Air Acts shall be enforced only after detailing the principle and procedure incorporating basic principles of natural justice in the subordinate legislation.
The top court had said that given their broad statutory mandate and the significant duty towards public health and environmental protection, the pollution control boards must have the power and discretion to decide the appropriate action against a polluting entity.
"It is essential that the Boards function effectively and efficiently by adopting such measures as are necessary in a given situation. The Boards can decide whether a polluting entity needs to be punished by imposition of a penalty or if the situation demands immediate restoration of the environmental damage by the polluter or both," the top court had said last year. The Supreme Court said pollution control boards must exercise their powers transparently and non-arbitrarily, adding that detailed rules and procedures for assessing and levying environmental damages should be formally notified to ensure fairness and legal certainty.