06/04/2025, 22:40 Polluter Pays Principle - A look at Indian Environmental Jurisprudence.
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RP Riya Pimple
➤ OECD (1972) + Rio Declaration (1992)
➤ Adopted via: Liability Laws + Emissions Trading + Global Origin + Evolution Polluter → Pays, not Public nor Govt
Pollution Tax (EU, US)
NGT's Formula: Guesswork + Company Size + Project Cost
= Compensation
Indian Council for Enviro-Legal Action v. UOI
Court: Polluter = Pay Compensation 💰 + Restore Restorative Justice + Punitive Action
(1996) Introduction
Environment 🌿
Vellore Citizens Welfare Forum v. UOI (1996)
Samir Mehta: Oil spill → ₹100 Cr compensation.
Economic and Financial aspect of polluter pays
Cases
Environment (Protection) Act, 1986 → Sec 3(3), 5, 15 principle Gurpreet Singh Bagga: Illegal mining → ₹50 Cr per miner.
➤ Water Act, 1974 → Sec 17, 25, 33A
➤ Air Act, 1981 → Sec 21, 22, 31A Uncertain Damage → Still Responsible
➤ Power to Penalize + Shut Polluters 🚫
PPP = Stockholm (1972) 🌍 + EPA (1986) 🛡️ + SC Verdicts 2024 Rules = Polluter Pays → If Unknown, ERF Pays
⚖️
Judicial Goal= Deter Pollution + Restore Nature
Union Carbide/Bhopal Gas Leak – $470M "pittance", PPP Bhopal Case Failure
undermined. Govt 💼 + Weak Deal 🤝 = Victims Ignored + PPP ⛔ Legal empowerment: S14 (Jurisdiction) + S15 (Relief &
Restoration) + S17 (Liability) + S20 (Env. Principles)
Strict Liability Laid the Ground
Dangerous Acts → Foreseeable Damage → Strict Implementation in Practice : Fines + Clean-up Orders +
Case: Rylands v. Fletcher Constitutional aspect and legal basis in India
Liability Shutdowns
Damage Assessment by NGT: Science + Fair
No Escape with Care: Absolute Liability Rules Compensation + Smart Fund Use
MC Mehta v. UOI (Oleum Gas Case) – Introduced Absolute
Hazardous Activity → Harm → Full Liability (Even with National Green Tribunal
Liability in India.
Care) case M.C. Mehta v. UOI 1986
M.C. Mehta v. Kamal Nath – Pollution = Civil Wrong. Pay for the Mess You Made Impact of PPP Enforcement
Pollution Deterrence + Accountability Boost + Real
Restoration
Pollution + Non-compliance ➝ Authority Action (Sec 3, Environment (Protection) Act, 1986
5) ➝ Penalties + Cost Recovery (Sec 15)
PPP ≠ Instant Justice
Delays + Defiance + Deadlock = Weak Enforcement
Effluent Discharge + No Consent (Sec 25) ➝ Shutdown Water (Prevention and Control of Pollution) Act, 1974
Orders (Sec 33A) ➝ Financial Liability
Polluter Pays Principle (PPP) ➤ Hard to trace diffuse/historic/cross-border polluters
Air (Prevention and Control of Pollution) Act, 1981 Legislative Framework Implementation Issues ➤ Cost valuation = complex 🧮
Emissions > Standards ➝ Closure Orders (Sec 31A) +
Emissions > Standards ➝ Closure Orders (Sec 31A) + ➤ Weak enforcement + corruption + legal disparity
Fines
Fines
➤ Global South = heavier burden 🌍⬇️
Hazardous Waste Rules, 2016 Economic & Equity Concerns ➤ Costs ➝ consumers ➝ hits poor hardest
Hazardous Waste + Unsafe Disposal ➝ Generator Liable
Hazardous Waste + Unsafe Disposal ➝ Generator Liable ➤ SMEs struggle, big players dominate 🏢
+ EPR Applied ➝ Cost Recovery by Govt.
+ EPR Applied ➝ Cost Recovery by Govt.
➤ Violates CBDR principle
Jan Chetna v. MoEF Ethical & Moral Criticism ➤ Treated as "license to pollute" 🧾
PPP + Sustainable Development ➝ Judicial Validation ➤ Neglects intergenerational equity 🧒🌳
Hindustan Coca Cola Beverages v. WBPCB ➤ Weak global control (e.g., Paris Agreement limits)
Industry Pollution ➝ PPP Enforced ➝ Cost Assessment Global Governance Gaps ➤ MNCs exploit loopholes 🔍
by WBPCB (Not Court) ➤ Industrial lobbying slows PPP enforcement
Vanashakti v. MPCB Legal & Judicial Framework Supporting PPP in ➤ No uniform PPP law
River Pollution by CETPs + Industries ➝ INR 760M India Legal + Institutional Gaps ➤ Overlaps: CPCB vs SPCBs vs NGT
Compensation (Restitution + Rehab) ➤ Boards = underfunded & powerless
Criticism and Challenges
NGT Bar Assoc. (SZ) v. Tamil Nadu ➤ Big industries escape (e.g., Vedanta)
Illegal Tank Collapse ➝ Suo Motu Action ➝ INR 7.5M ➤ Public enterprises = leniently treated
(Victims + Environment) Selective Enforcement
➤ Informal polluters = ignored
Judicial Framework
Perma Nand Khanta v. Himachal Pradesh
Tourism-Linked Pollution ➝ Green Tax on Vehicles ➝ ➤ Fines = too low (e.g., LG Polymers)
State’s Environmental Fund Compensation & Remediation Issues ➤ Restoration funds = misused/unspent
India-Specific Challenges
➤ Communities = left out 😞
Vardhaman Kaushik v. UOI
Vehicular Pollution ➝ Environmental Compensation ➤ PPP = case-based, not systemic
Charge ➝ SC Upheld with Hike Long-Term Harm Ignored
➤ Climate change = rarely addressed
amuna River Case – NGT (General Order) ➤ Civil society = excluded
Diffuse Pollution + No Clear Polluter ➝ Citizens Pay Transparency + Public Role ➤ No open access to pollution data 📉
Environmental Compensation ➤ PILs = delayed + less impactful
Volkswagen Emission Scandal (2019) ➤ Development > Environment (e.g., EIA 2020)
Cheat Device + Emission Manipulation ➝ ₹500 Cr Fine Policy Conflicts
➤ Poor EPR (e.g., PepsiCo/Coca-Cola non-compliance )
by NGT
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