2026 Supreme Court mid-year review: Environmental and animal rights - Supreme Court Observer
The question before the Bench of Justices Dipankar Datta and Vijay Bishnoi was whether, in the absence of a legislative framework, the NGT can order an enhanced compensation based on the project cost and annual turnover. The Court affirmed the expansive powers of the NGT to determine compensation payable based on the nature of the project, objective of environmental restitution and the polluter pays principle.
Explanation in simple terms: A court confirmed that India's environmental agency (NGT) can order large pollution penalties even without specific laws guiding them. In this Maharashtra case, the NGT imposed a ₹137-crore fine based on the project's size and the company's earnings. The court supported this approach, saying whoever causes environmental damage should pay for fixing it, regardless of existing legal guidelines.