Laws, Courts & Judgments.

NGT Orders Enhanced Compensation and Fixes State Liability for Sambhal Firecracker Blast Victims

New Delhi: The National Green Tribunal (NGT), Principal Bench, New Delhi, has held the State of Uttar Pradesh jointly and severally liable for the inadequate compensation paid to victims of an illegal firecracker godown explosion in Sambhal district in June 2023. Taking suo motu cognizance of a news report, the Tribunal directed significantly higher compensation payouts and stringent measures to prevent such incidents in the future.

The judgment, delivered on April 22, 2025, by a bench comprising Chairperson Justice Prakash Shrivastava , Judicial Member Justice Sudhir Agarwal , Judicial Member Justice Arun Kumar Tyagi , and Expert Member Dr. Afroz Ahmad , underscored the principles of absolute liability for the project proponent and the State's constitutional and statutory obligation to ensure environmental safety.

Case Background: A Deadly Explosion

The incident occurred on June 13, 2023, in Gunnaur township, Sambhal , when an illegal firecracker godown, allegedly operated by Shabir Ali in a residential area without proper permissions, exploded. The blast resulted in four fatalities, including two minors, and left nine others injured. Shabir Ali 's house was completely destroyed, and several neighboring houses sustained damage.

The NGT initiated proceedings after an India Today news item highlighted the tragedy. Investigations revealed that the explosion was caused by the illegal storage and handling of explosive materials. FIRs were lodged, and arrests were made, including that of Shabir Ali . Another 2000 kgs of explosive material was later recovered from a nearby house belonging to Salim s/o Amir Baksh, leading to a separate FIR and arrest.

Inadequate Initial Compensation Sparks NGT Intervention

Following the incident, the District Magistrate, Sambhal , appeared before the Tribunal and reported that while some ex-gratia relief had been sanctioned under State Disaster Relief Fund (SDRF) guidelines – Rs 4 lakh per deceased person and Rs 16,000 per injured person requiring hospitalization for over a week (or Rs 5,400 for less than a week) – no compensation had been disbursed initially. A total of Rs 16 lakh for the deceased and Rs 1.2 lakh for house damage was sanctioned. The DM also sought clarification from the State government on whether compensation was payable for the deaths of the accused's wife and daughter, who were among the deceased.

The NGT found this sanctioned amount "grossly inadequate" and proceeded to determine appropriate compensation based on its established principles for industrial accidents involving hazardous substances.

Legal Principles Applied by the Tribunal

The judgment extensively discussed the legal framework governing hazardous activities and the liability arising from accidents:

1. Absolute Liability: Citing the landmark M.C. Mehta vs. Union of India case (AIR 1987 SC 965), the Tribunal reiterated the principle of absolute and non-delegable duty of enterprises engaged in hazardous activities to compensate victims, irrespective of negligence. Shabir Ali , as the project proponent engaged in an illegal but hazardous activity, was held strictly liable.

2. State and Instrumentalities' Liability: The NGT emphasized that the right to a clean and healthy environment is a fundamental right under Article 21. The State and its instrumentalities have a constitutional obligation under Article 48A and various statutes (Explosives Act, Hazardous Chemical Rules) to protect the environment and ensure safety. The Tribunal held that illegal activities and accidents like this cannot occur without "inaction, negligence, connivance or collusion of the concerned instrumentalities of the State." Therefore, the State is jointly and severally liable to pay compensation for the violation of fundamental rights, a liability that is absolute and not contingent on the violator's or the State's financial capacity.

3. Disaster Management Act, 2005: While acknowledging that 'Fire' is a recognized disaster under SDRF/NDRF guidelines, allowing ex-gratia payments, the NGT clarified that the compensation awarded under its jurisdiction is distinct, potentially higher, and includes a punitive element for criminal negligence.

4. NGT's Jurisdiction (Sections 15 & 17, NGT Act): The Tribunal asserted its statutory power under Sections 15 and 17 of the NGT Act, 2010, to grant relief, compensation, and restitution for environmental damage and accidents involving hazardous substances based on the 'no fault' principle. Schedule II of the Act lists the heads under which compensation can be claimed.

Enhanced Compensation Standards

Referring to its previous judgments in similar industrial accident cases (including firecracker blasts), the NGT reaffirmed its standard compensation scale: * Death: Rs. 20,00,000 per victim. * Injuries: * Burns > 50%: Rs. 15,00,000 * Burns 25-50%: Rs. 10,00,000 * Burns 5-25%: Rs. 5,00,000 * Minor injuries/Outpatients: Rs. 2,00,000

The Tribunal stated that compensation amounts must be higher than welfare measures like those under the Workmen's Compensation Act, 1923, and are partly punitive. It noted that none of the victims or injured were found to be labourers or workmen under the 1923 Act, making compensation under that statute inapplicable.

Specific Directions Issued by the NGT

The NGT issued several key directions:

• To the Chief Secretary, Uttar Pradesh: Review and update mechanisms statewide to check illegal commercial activities in hazardous substances, hold stakeholder meetings, issue appropriate instructions, and periodically oversee enforcement and compliance.
• To the District Magistrate, Sambhal :
  • Ensure payment of the balance Rs 16 lakh each (to reach Rs 20 lakh total) to the legal heirs of the two deceased victims, Shivaiya and Om , for whom partial payment of Rs 4 lakh each had already been sanctioned.
  • Decide the entitlement of compensation for the families of the other two deceased ( Guddo and Anam , wife and daughter of the accused) after giving them a hearing and considering any evidence of their involvement in the illegal activity.
  • Ascertain the nature, percentage of burns, duration of hospitalization, disability (if any), and medical expenses for all nine injured persons. Determine and disburse compensation based on the NGT's specified scale after hearing them.
  • Decide the entitlement of compensation for the damage to Shabir Ali 's house after hearing other family members regarding their involvement in the illegal activity.
  • Get all other neighboring damaged houses examined by technical experts with due notice to the owners. Determine and disburse compensation for damage, even if below the SDRF/NDRF threshold of 15%, as the damage was due to a man-made disaster caused by illegal acts and State negligence/inaction.
• To the UPPCB: Transfer the amount of compensation payable to the victims to the District Magistrate, upon reference, from environmental compensation funds lying with it, particularly if the District Administration faces fund shortages as stated by the DM.
• Recovery: The District Magistrate shall recover the disbursed compensation amount from Shabir Ali as arrears of land revenue to the extent possible. Any balance not recovered from Shabir Ali shall be payable by the State, and this amount should also be transferred to UPPCB's environmental compensation account.
• Legal Aid: The Member Secretary, Uttar Pradesh State Legal Authority, was requested to provide legal aid/advice to the victims (legal heirs, injured, and property owners) to help them secure the directed compensation.

The NGT emphasized that the victims should not suffer due to the District Administration's stated non-availability of sufficient funds or the offender's limited assets. The District Magistrate, Sambhal , was given three months to complete the process and one month thereafter to submit an action taken report.

This judgment reinforces the NGT's consistent stance on high compensation standards for victims of hazardous activities, particularly those conducted illegally, and holds the State accountable for failures in regulatory enforcement that lead to such tragedies.