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TANAJI BALASAHEB GAMBHIRE VS UNION OF INDIA THROUGH MINISTRY OF ENVIRONMENT AND FOREST - National Green Tribunal
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In today's regulatory landscape, industries face stringent environmental norms to prevent pollution and protect ecosystems. But what happens when violations occur? One critical question businesses and regulators often ask is: what is the formula for calculating environmental damage compensation in the case of environmental norm violations? This post breaks down the standardized approach established by the () and endorsed by the (NGT), offering clarity for compliance and deterrence. 2025 0 Supreme(SC) 253
Whether you're an industrial operator, legal professional, or environmental advocate, grasping this formula can help navigate penalties, remediation, and restoration efforts. Note: This is general information based on established guidelines and should not be considered specific legal advice—consult qualified experts for your situation.
The primary method for computing (EC) stems from a report dated , accepted by the NGT on , in . The formula is straightforward yet comprehensive:
EC = PI × N × R × S × LF
This objective formula emphasizes deterrence, remediation costs, and community losses, aligning with NGT directions from , for to assess and recover EC for environmental damage. Funds are typically deposited into a separate environmental fund for action plans. 2025 0 Supreme(SC) 253
Each element ensures the compensation reflects the violation's severity:
For instance, in cases post-, NGT has upheld this formula's application, as noted in orders like the one dated , specifying it for violations noted on or after . 2025 Supreme(Online)(NGT) 1864 2025 Supreme(Online)(NGT) 2055 2025 Supreme(Online)(NGT) 1648 2025 Supreme(Online)(NGT) 1755
The has widely adopted the formula, but recognizes no single method fits all scenarios. Alternatives include:
In Paryavaran Suraksha Samiti, the NGT reinforced: The said formula is: EC = PI x N x R x S x LF Wherein, EC stands for in INR... 2024 0 Supreme(Gau) 1208 This methodology also outlines action plans for fund utilization, promoting restoration over mere penalties.
Compensation must be based on objective, intelligible criteria, per guidelines. Key factors include:
Arbitrary amounts are discouraged; calculations should be simple and replicable. In collective violations, apportionment follows equality—unequal cannot be treated equally. 2025 0 Supreme(SC) 253
The , , and underpin all assessments. Courts may seek expert input, but no universal formula exists given India's diverse conditions. 2025 0 Supreme(SC) 253
NGT rulings consistently reference the formula. For example, in assessments involving effluent treatment violations, adherence to —like proper notice—is required before imposing EC, quashing hasty fines. 2024 0 Supreme(Gau) 1208
In construction violation cases, NGT imposed damages but rejected unproven concepts like 'Carbon Footprint' without evidence: Court cannot introduce a new concept of assessing and levying damages without expert evidence. 2018 0 Supreme(SC) 799 This underscores reliance on established methods like 's.
Mining or water sectors may use turnover percentages (e.g., 1%) correlated to damage magnitude, but for general industrial violations, the formula prevails. 2009 0 Supreme(Guj) 528
Historical precedents, like Narmada dam clearances, highlight balancing development with mitigation: Merely because there will be a change is no reason to presume that there will be ecological disaster. 2000 7 Supreme 264 Such cases reinforce that EC must cover remediation without halting justified projects.
Proactive compliance audits and ETP/STP maintenance minimize risks.
Staying informed empowers better environmental stewardship. For tailored advice, engage environmental lawyers or regulators.
#EnvironmentalCompensation #NGTFormula #PolluterPays
“Scale of compensation for violations on polluter pays principle Section 5 of the EP Act and in terms of the directions issued in this OA, UKPCB has imposed the environmental compensation taking into account the quantity of illegally mined mineral and applying the formula prescribed by the CPCB. ... Such illegal mining causes damage to the environment, hence, it is not in dispute that action is required to be taken against the violators for imposition of EC. #HL_STAR....
The next ground set up by the appellant in this appeal is that in any case, the formula itself has been accepted by Respondent No.1 vide its Order dated 05.04.2022, which has categorically held that the said formula will be applied for violations noted on or after 02.11.2017, while in the case in hand ... If at all, there were violations of directions of the Order dated 07.04.2017 passed by Respondent No.1, such violation would be covered under Section 15 of Environment#HL_E....
The next ground set up by the appellant in this appeal is that in any case, the formula itself has been accepted by Respondent No.1 vide its Order dated 05.04.2022, which has categorically held that the said formula will be applied for violations noted on or after 02.11.2017, while in the case in hand ... If at all, there were violations of directions of the Order dated 07.04.2017 passed by Respondent No.1, such violation would be covered under Section 15 of Environment#HL_E....
The next ground set up by the appellant in this appeal is that in any case, the formula itself has been accepted by Respondent No.1 vide its Order dated 05.04.2022, which has categorically held that the said formula will be applied for violations noted on or after 02.11.2017, while in the case in hand ... If at all, there were violations of directions of the Order dated 07.04.2017 passed by Respondent No.1, such violation would be covered under Section 15 of Environment#HL_E....
The next ground set up by the appellant in this appeal is that in any case, the formula itself has been accepted by Respondent No.1 vide its Order dated 05.04.2022, which has categorically held that the said formula will be applied for violations noted on or after 02.11.2017, while in the case in hand ... If at all, there were violations of directions of the Order dated 07.04.2017 passed by Respondent No.1, such violation would be covered under Section 15 of Environment#HL_E....
The next ground set up by the appellant in this appeal is that in any case, the formula itself has been accepted by Respondent No.1 vide its Order dated 05.04.2022, which has categorically held that the said formula will be applied for violations noted on or after 02.11.2017, while in the case in hand ... If at all, there were violations of directions of the Order dated 07.04.2017 passed by Respondent No.1, such violation would be covered under Section 15 of Environment#HL_E....
Clearly, Clause 1.5.1 limits the application of the formula to cases where directions are issued by the CPCB under the Environment Protection Act, 198634[Environment Act] and only in respect of specified categories of violations. ... State of Gujarat & Ors., (2004) 6 SCC 402, it was urged that environmental compensation can be justified only upon a specific finding of actual environmental damage. ... Finding the said deposit sufficient to cover past ....
the recovery of the environmental compensation appears to be pittance for want of expert so as to assure the environmental damage caused and appropriate compensation to be recovered from the violators. ... The Authority resolved to carry out exercise of calculation of fines based on area damaged calculating difference in land use change in square meter by satellite imagery (from the year the violation was noticed) along with field verification on case-to-cas....
We also find why the factor of environmental compensation has been taken to be 250 while the formula applied stipulates the factor to be between Rs. 100-500 depending upon the nature of the industry. 1In the present case, the majority of industries are in ‘red’ category and CETP itself is ‘red’ category ... We asked learned Counsel for GPCB why compensation has been assessed only upto 22.11.2019 while the violations are still continuing. ... In view of the above, the GPCB has filed its....
the recovery of the environmental compensation appears to be pittance for want of expert so as to assure the environmental damage caused and appropriate compensation to be recovered from the violators. ... The Authority resolved to carry out exercise of calculation of fines based on area damaged calculating difference in land use change in square meter by satellite imagery (from the year the violation was noticed) along with field verification on case-to-cas....
“The Environmental Compensation shall be based on the following formula: 7. Another important aspect in the order dated in 19.02.2019 is that the learned NGT, Principal Bench, formulated a methodology for assessing the environmental compensation as well as an action plan to utilize the funding. The relevant portion of the order wherein the methodology adopted to assess the environmental compensation, being pertinent to the issue involved is reproduced herein-under: EC = P1 x N x R x S x LF Where, EC is Environmental Compensation in Rupees PI = Pollution Index of industria....
The main case of the original applicant is that the damages should be assessed on a scientific basis by calculating the damage caused to the environment by the project proponent on the basis of ‘Carbon Footprint’. In the absence of detailed submissions, we find ourselves totally unequipped to go into this aspect of the matter. In the absence of detailed submissions, we find ourselves totally unequipped to go into this aspect of the matter. In the absence of detailed submissions, we find ourselves totally unequipped to go into this aspect of the matter. In the absence of det....
P. No. 10585 (W) of 2003 submits that the provisions of Section 7 of the west Bengal (Land Requisition and Acquisition) Mr. Mondal further submits that it appears from the order dated september 20,2003 passed by the Cdllector, Hooghly that the petitioners agreed to accept the damage compensation as determined by the Collector. Act, 1948 are applicable in calculating the damage compensation. However, if any petitioner is aggrieved by the method followed by the Collector, Hooghly, it was open for him to proceed in accordance with the provisions of Section 8 of the West Bengal....
Whether the environmental conditions imposed by the Ministry of Environment have been violated and if so, what is the legal effect of the violations ?
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