Court Allows Operations of Factories Pending Environmental Clearance

Background

In a significant ruling, the Supreme Court addressed the case involving two manufacturing units operated by M/s Pahwa Plastics Private Limited and M/s Apcolite Polymers Private Limited, which employ around 8,000 workers. The legal question centered on whether these establishments could continue operations without prior Environmental Clearance (EC) while they sought ex post facto EC.

Arguments

The appellants argued that they had obtained Consent to Establish (CTE) and Consent to Operate (CTO) from the Haryana State Pollution Control Board (HSPCB) under the impression that prior EC was not required for their operations. They contended that their units complied with pollution norms and did not cause environmental harm. Conversely, the respondent NGO, Dastak, argued for the closure of these units, emphasizing the necessity of prior EC to prevent potential environmental degradation.

Court's Analysis and Reasoning

The court analyzed the legal framework surrounding environmental regulations, including the Environment (Protection) Act, 1986, and relevant notifications. It acknowledged the misconception by HSPCB regarding the necessity of prior EC for the manufacturing of Formaldehyde. The court emphasized the importance of balancing economic contributions and employment against environmental protection. It noted that while ex post facto EC should not be granted routinely, it could be permissible in exceptional circumstances where the units complied with environmental norms.

Decision

The Supreme Court ruled in favor of the appellants, allowing them to continue operations pending the issuance of EC. The court directed the relevant authorities to decide on the applications for EC within one month, emphasizing that the units should not be penalized for procedural lapses when they had been operating under the belief that they were compliant with the law. This decision underscores the court's recognition of the need to protect livelihoods while ensuring adherence to environmental standards.