Legal provisions involved: Sections 15 and 20 of the National Green Tribunal Act, 2010.

Judgement by: Supreme Court of India

Judge/Bench: Justice Dipankar Datta and Justice Vijay Bishnoi

Facts

Two builders in Pune carried out construction projects without fully following environmental rules. They built extra structures, continued construction even after stop-work notices, and did not take proper pollution control permissions. The National Green Tribunal (NGT) imposed heavy environmental compensation; ₹5 crores in one case and about ₹4.47 crores in the other. The builders challenged how this amount was calculated.

Key legal provisions

Sections 15 and 20 of the National Green Tribunal Act, 2010

Issues raised

Whether the NGT can calculate compensation based on project cost or size when there is no fixed formula in the law?

Arguments of the case

The builders said the fine was unfair and not linked to actual environmental harm. The other side argued that bigger projects cause bigger impact and earn more profit, so they should pay more.

Judgement

The Supreme Court dismissed the appeals. It said the NGT has wide powers and can use project cost as a factor, as long as the compensation is reasonable and not arbitrary.

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