NGT Mandates 'Polluter Pays' for Illegal Tree Felling, Orders Interim Compensation of ₹95 Lakh: National Green Tribunal - 2025-03-24

NGT Holds Delhi Government Liable for Illegal Tree Felling, Imposes ₹95 Lakh Interim Environmental Compensation

New Delhi, March 21, 2025 - The National Green Tribunal (NGT) Principal Bench, New Delhi, has delivered a significant judgment holding the Government of National Capital Territory of Delhi (GNCTD) accountable for the illegal felling of trees during the construction of a bus depot in Burari . In a decisive move emphasizing the ‘Polluter Pays Principle’, the Tribunal, comprising Justice Sudhir Agarwal (Judicial Member) and Dr. Afroz Ahmad (Expert Member), has ordered the Transport Department of GNCTD to pay an interim environmental compensation of ₹95.05 lakh and directed a comprehensive assessment of final compensation by the Delhi Pollution Control Committee (DPCC).

Case Background: Complaint Over Tree Felling for Bus Depot

The case originated from an Original Application (OA No. 335/2023) filed by Pramod Tyagi , a resident of Burari , Delhi, highlighting the adverse environmental impact due to the unauthorized cutting of approximately 3000 trees for establishing a Driving Training Institute and a Cluster Bus Depot in Mukundpur, Burari . Tyagi alleged violations of key environmental laws, including the Forest (Conservation) Act, 1980, the Air (Prevention and Control of Pollution) Act, 1981, the Environment (Protection) Act, 1986, and the Delhi Preservation of Trees Act, 1994. He contended that despite permissions for tree felling being granted with conditions for compensatory afforestation and transplantation, these conditions were largely flouted, leading to significant environmental damage.

NGT Intervention and Findings: Violation of Permissions

Taking cognizance of the matter, the NGT directed factual verification, which revealed that while permissions for felling and transplantation of trees were granted, compliance with compensatory afforestation and successful transplantation was severely lacking. A report by the Tree Officer, Delhi, indicated that out of 168 trees designated for transplantation for the Cluster Bus Depot-1 project, only 89 could be identified post-transplantation, and a mere 27 were found to be in good condition. This highlighted a gross failure in transplantation efforts and a likely illegal felling of 79 trees that were meant for transplantation.

Furthermore, despite the condition for compensatory plantation of 4950 saplings, the Transport Department’s report indicated planting only 1000 saplings, with a survival rate of just 830. The NGT observed a “massive violation” in compensatory afforestation, leading to the inescapable inference that trees were cut and transplanted illegally, contravening the permission conditions.

Arguments and Legal Principles: ‘Polluter Pays’ in Focus

Advocate Avdesh Kumar Singh, representing the applicant, argued that the Transport Department’s non-compliance with permission conditions and illegal tree felling had caused significant environmental damage, warranting compensation under the ‘Polluter Pays Principle’. The Transport Department, represented by Ms. Jyoti Mendiratta and Ms. Anaya Basudha, claimed efforts towards compensatory plantation and urged against imposing environmental compensation.

The NGT firmly applied the ‘Polluter Pays Principle’, citing landmark Supreme Court judgments such as Indian Council for Enviro-Legal Action vs. Union of India and Vellore Citizen Welfare Forum vs. Union of India . The Tribunal emphasized that this principle mandates that polluters bear the financial costs of remedying environmental damage.

“The Polluter Pays principle demands that the financial costs of preventing or remedying damage caused by pollution should lie with the undertakings which cause the pollution, or produce the goods which cause the pollution.” – Excerpt from the judgment, quoting legal precedents.

The Tribunal underscored the critical role of trees in maintaining ecological balance, citing their contributions to carbon sequestration, biodiversity, water cycle regulation, and air quality improvement. It detailed the far-reaching environmental and socioeconomic impacts of deforestation, emphasizing that illegal tree felling, regardless of whether in forest or non-forest areas, causes substantial environmental damage.

NGT’s Decision: Interim Compensation and Path to Final Assessment

Acknowledging the absence of specific guidelines for environmental compensation for illegal tree felling by the Central Pollution Control Board (CPCB), the NGT drew reference from a formula approved by the Uttarakhand Pollution Control Board (UKPCB) in OA No.147/2024 (Hardeep Sharma vs. Ramesh Chand Aarya). This formula considers factors like trunk area, species, condition, location, and royalty value to compute environmental compensation.

As an interim measure, the NGT ordered the Transport Department to deposit ₹95.05 lakh with the DPCC within two months. This includes compensation for the illegal felling/non-transplantation of 468 trees at ₹10,000 per tree (₹46.80 lakh) and for the deficit in compensatory plantation of 4825 trees at ₹1,000 per tree (₹48.25 lakh). The DPCC is tasked with computing the final environmental compensation using the UKPCB-approved methodology within three months, after granting a hearing to the Transport Department.

The interim compensation amount will be utilized for environmental remediation as per a plan to be prepared by a joint committee comprising CPCB, DPCC, and the Principal Chief Conservator of Forest, GNCTD, with CPCB as the nodal authority.

Broader Implications: Enforcement of Environmental Norms

This judgment carries significant implications for environmental law enforcement, particularly concerning tree preservation and the ‘Polluter Pays Principle’. The NGT has directed all State Pollution Control Boards and Pollution Control Committees, including CPCB, to adopt the UKPCB's methodology for assessing environmental compensation for illegal tree felling until a uniform national guideline is established.

“Whenever occasion arise, the law requires that Statutory Regulator(s) must act to enforce law and in case of illegal cutting of trees causing damage to environment, one of the functions required to be performed by Statutory Regulator is application of principle of ‘Polluter Pays’.” - NGT's observation on the role of regulatory bodies.

The ruling serves as a stern warning against environmental norm violations and reinforces the accountability of governmental and private entities in adhering to environmental safeguards during developmental projects. It highlights the NGT’s proactive role in ensuring environmental justice and compelling adherence to the ‘Polluter Pays Principle’ for environmental restoration and deterrence.