Environmental compensation must adhere to principles of natural justice and proportionality, ensuring that penalties correlate with actual damage and supported by robust evidence.

JUDGMENT :

SANJEEB K. PANIGRAHI, J.

1. The petitioner, in the present Writ Petition, assails the order dated 11.02.2025 passed by the National Green Tribunal, Eastern Zone Bench, Kolkata in Original Application No. 122/2023/EZ, whereby environmental compensation of Rs. 96,28,50,175/- has been imposed on the petitioner on the allegation of excess mining beyond the Consent to Establish (CTE).

I. FACTUAL MATRIX OF THE CASE:

2. Succinctly put, the facts of the case are as follows:

(i) Desirous of granting a lease in respect of Damanbhuin Laterite Stone Quarry, District Khordha, the Tahasildar, Tangi issued a notice for auction, whereupon the petitioner was selected as the preferred bidder. On 12.08.2021, the petitioner was directed to deposit the royalty and execute an agreement.

(ii) The Tahasildar, Tangi obtained environmental clearance for mining of laterite stone at the Damanbhuin Laterite Stone Quarry, District Khordha on 06.07.2021 from the Ministry of Environment, Forest and Climate Change, Government of India. The environmental clearance was subsequently transferred in favour of the petitioner on 15.03.2022.

(iii) Thereafter, the Tahasildar, Tangi and the petitioner executed a mining lease deed dated 25.04.2022 in respect of Damanbhuin Mouza over Plot No. 2161(P) under Khata No. 708, measuring 4.139 hectares or 10.23 acres, Kissam: Gochar, in Tangi Tahasil of District Khordha, commonly known as the Damanbhuin Laterite Stone Quarry.

(iv) In the meantime, on 13.05.2022, the Tahasildar, Tangi granted permission to M/s Agarwala for lifting of ordinary soil or morrum from Plot No. 2161 for the purpose of road construction.

(v) Thereafter, the petitioner was granted the Consent to Establish (CTE) on 29.06.2022 by the Odisha State Pollution Control Board under Section 25 of the Water (Prevention and Control of Pollution) Act, 1974 and Section 21 of the Air (Prevention and Control of Pollution) Act, 1981 for production of laterite stone of 1500 cubic metres per annum.

(vi) The Consent to Operate was granted to the petitioner on 15.07.2022 and was subsequently renewed on 19.06.2023.

(vii) The petitioner commenced mining operations at the Damanbhuin Stone Quarry in July, 2022. Around this period, it was found that one Yudhistir Udaysingh and one Biswanath Behera, residents of village/P.S. Jankia, were engaged in illegal mining over the leasehold area of the petitioner as well as adjoining areas. The said persons extracted laterite ore without the permission or consent of the petitioner and threatened the petitioner and his employees. Accordingly, the agent of the petitioner submitted a representation dated 23.06.2022 to the Tahasildar, Tangi bringing the illegal mining and theft of minor minerals to his notice. The Tahasildar, Tangi directed the Revenue Inspector, Achyutpur to conduct an enquiry and submit a report.

(viii) Upon enquiry, the Revenue Inspector, Achyutpur submitted a report stating that the allegations made by the petitioner were correct. By letter bearing No. 236 dated 23.06.2022, it was reported that the Geologist had concluded that the said persons had illegally mined 16,324 cubic metres of laterite ore.

(ix) On the basis of the said report, the Tahasildar, Tangi lodged a complaint against Yudhistir Udaysingh and Biswanath Behera at Jankia Police Station, Khordha on 24.06.2022, which was registered as FIR N