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Judgment
In this Application, the applicant has alleged that the Respondent Distillery unit has been producing in excess of the permitted quantity granted as per consent to operate dated 16.02.2018. The appellant has also alleged that the Respondent No. 1 has operated Distillery Unit (Molasses Base) in violation of the consent to operate granted under Section 26 of Water (Prevention and Control of Pollution) Act, 1974 and Under Section 24 of the Air (Prevention of Control of Pollution) Act, 1981. Since validity of earlier consent was up to 31.08.2016, the Respondent No. 1 had applied on 13/07/2016 for renewal of consent to operate under the Water Act, 1974 and Air Act, 1981. Application for grant of consent to operate was placed before the Consent Appraisal Committee, in its meeting held on 30.10.2017 wherein it was decided to issue Show Cause Notice for refusal of consent as the Respondent No. 1 had failed to install the pollution control device Multiple Effective Evaporator (MEE) before 31.10.2016. The Show Cause Notice along with reply submitted by Respondent No. 1 was then placed before the Consent Appraisal Committee meeting held on 17.04.2017 and it was decided to issue final refusal of consent to operate to Respondent No. 1 industry for operating plant without consent and for not providing MEE. Accordingly the Maharashtra Pollution Control Board issued refusal of consent on 19.05.2017.
Subsequently Respondent No. 1 made an application for renewal of consent for 30 KLPD Distillery Unit (Molasses Base) which was placed before the Consent Appraisal Committee in the meeting held on 12.12.2017 wherein it was decided to grant renewal of consent to operate for 30 KLPD Molasses Based Distillery Unit subject to extend existing bank guarantee of Rs. 5 Lakh towards operation and maintenance of pollution control system. Accordingly, the Maharashtra Pollution Control Board granted renewal of consent to operate on 16.02.2018 for manufacture of Rectified Spirit 900 KL/M, Ethanol - 846 KL/M, Fuel oil - 15 KL/M and Impure Spirit 90 ML/M subject to certain terms and conditions which is valid up to 31.08.2018. Renewal of consent is placed as Annexure A-I at Page 17.
Since the validity of earlier consent expired on 31.08.2016 and renewal of consent was granted only on 16.02.2018, therefore, the unit did not have any consent during the period from 01.09.2016 to 15.02.2018.
Therefore, as the industry was operating without consent and not operating MEE the Maharashtra Pollution Control Board had issued direction of closure to the Respondent Industry on 27.04.2018. Subsequently on consideration of reply dated 16.07.2018 the Maharashtra Pollution Control Board on 30.07.2018 withdrew closure order and directed the Respondent Industry to submit a bank guarantee of Rs. 10 Lakh and the existing bank guarantee of Rs. 5 Lakh for operation and maintenance of Pollution Control Systems was forfeited.
It is evident from the documents placed on record that the unit has been in operation even after consent had expired on 31.08.2016 as the Report of the State Excise Inspector, which is on record, shows that the unit was in operation during the year 2016-17 and also in November, 2017, December, 2017 and January, 2018 when unit did not have any valid consent from the Maharashtra Pollution Control Board. The report of the Excise Department clearly shows that there is no correlation between products consented for manufacture and the types of product mentioned in the report. For instances, consent is sought to be granted for production of Rectified Spirit, Ethanol, Fuel Oil and Impure Spirit whereas the report of the Excise Department is about manufacture of Denatured Absolute Alcohol for which there is no consent and therefore, the report itself is quite misleading. Form F-1 for Denatured Absolute Alcohol, signed by Inspector State Excise which has been filed by the Managing Director of the Respondent No. 1 Industry shows that in the month of January, 2018, the quantity of Denatured Absolute Alcohol manufactured was 64,000 Ltr. And in February, 2018 the quantity manufactured was 2,68,000 Ltr. and during the corresponding period in 2016-17 Denatured Absolute Alcohol manufactured in December was 40,000 Ltr., in January 1,74,000 Ltr. and in February 3,80,000 Ltr.
The Conduct of the State Pollution Control Board is also questionable. On the one hand PCB issued Show Cause Notice and refusal of consent order on 19.05.2017 as the industry had failed to install MEE and Pollution Control System and on the other hand the Board renewed the consent on 16.02.2018 retrospectively for the period from 01.09.2016 to 31.08.2018 covering even those period when pollution control device such as MEE was not only not operating but not installed as well. In other words, PCB abetted in Pollution causing activity of the industry. PCB, therefore, could not have renewed the consent retrospectively. At the most consent could have been renewed with effect from 16.02.2018 in accordance with law.
We are, therefore, of the considered opinion that the industry had operated between 01.09.2016 and 15.02.2018 in violation of Water Act, 1974 and Air Act, 1981 without consent to operate granted by the Pollution Control Board. In such view of the matter, we direct the industry to pay environmental compensation of Rs. 10 crore to be deposited with the Central Pollution Control Board within a period of 15 days from the date of this order. If the amount is not deposited within 15 days, the consent to operate would be deemed to have been revoked and industry will shut its operation. With these directions, this OA No. 368/2018 is disposed of, with no order as to cost.