Chandra Shekhar vs State Of Uttar Pradesh

Grievance in this application is against discharge of untreated effluent by Triveni Sugar Mill at Khatoli, District Muzaffarnagar, Uttar Pradesh, resulting in contamination of groundwater in the area of about one and a half kilometers and upto depth of 50 meters.

The matter was earlier considered on 21.09.2021 and 15.02.2022 in the light of reports furnished by CPCB, State PCB and District Magistrate, Muzaffarnagar, UP and finding violations, the Tribunal sought report about remedial action taken, including compensation on ‘polluter pays’ principle. Relevant extract from order dated 15.02.2022 is as follows:

“xxx ……………………………..xxx………………………………..xxx

The above report shows violation of the environmental norms by the Project Proponent which include illegal disposal of untreated effluent, dilution at outlet with fresh water to conceal real status, absence of flow meter at boiler/mill house to avoid monitoring, absence of record of oil and grease stored, absence of ETP log book. The same need to be remedied in terms of the recommendations in the report. For the past violations, the Committee needs to assess and recover compensation, in accordance with law, having regard to the nature of violation, period of violation, cost of remediation and turnover of the PP. We also find that NOC for extraction of groundwater for five years is contrary to the norms with regard to the period for which such NOC can be given. Let the joint Committee give a supplementary report, a copy of which may also be served on the PP for its response, if any, before this this Tribunal before the next date which may include further action taken by the State PCB, if any. The Committee may also examine the source of Selenium (SE) as found in its report. The report may be filed by 30.04.2022 with a copy to the PP, notifying it of these proceedings. Response of the PP, if any, be filed by 15.05.2022.”

Accordingly, supplementary report has been filed by the joint Committee on 10.08.2022, apart from report of the Ground Water Department, UP. No response has been filed by the PP.

The report mentions that compensation works out to Rs. 34,20,000/- for 114 days of violation @ Rs. 30,000/- per day but it works out to Rs. 18 crores @ 2% of the annual turnover of Rs. 900 crores. The issue has not been finalised as clarification has been sought from the CPCB.

We have heard learned counsel for the State PCB. Having regard to established illegal discharge of untreated effluents, dilution at the outlet to conceal the real status, absence of monitoring, absence of record of oil and grease stored and ETP log book, we are of the view that compensation of Rs. 18 crores @ 2% of annual turnover will be justified. Adhoc compensation without considering magnitude of violation and financial capacity of the PP is against law laid down inter alia in MC Mehta, (1987) 1 SCC 395, Sterlite (2013) 4 SCC 575 and Goel Ganga (2018) 18 SCC 257. The same may be utilized for restoration of environment, particularly the recipient water body. District Environment Plan of the District may also be taken into account. The amount may be deposited by the PP with the District Magistrate, Muzaffarnagar within one month. Utilization of the amount may be within six months in terms of action plan to be prepared by a joint Committee of CPCB, State PCB and District Magistrate, Muzaffarnagar and executed in the manner laid down in the said plan, associating the PP also. The State PCB will be nodal agency for coordination and compliance.

The application is disposed of.

A copy of this order be forwarded to CPCB, State PCB and District Magistrate, Muzaffarnagar by e-mail for compliance.