Plea To Use CSR Funds Of Oil Companies On Public Transport: Supreme Court Allows Petitioner To Make Representations

The Supreme Court on Friday (December 13) disposed of a Public Interest Litigation seeking directions for the public and private sector oil companies to contribute under Corporate Social Responsibility (CSR) under the Indian Companies Act, 2013 to public transport services for a few heavily polluted cities to restore and compensate environmental damages occurring due to these companies' fossil fuels.

The writ petition was filed by Dr. Sanjay Kulshretha, who also appeared as petitioner-in-person before a bench of Justices BV Nagarathna and NK Singh. The petition states that the plea has been raised to reduce health hazards due to severe air pollution in Delhi and other polluted cities.

Before the Court, he said: "This air pollution has taken epidemic form in killing 21 lac people in India because of the fine particles. It is not only affecting all age-groups but also affecting the newborn and the foetus...All over the world, the most cost-effective means of reducing pollution is public transport system. Even rich countries are spending more and more money on public transport system."

On this, Justice Nagarathna at the outset clarified: "We cannot direct to spend the CSR funds like this or like that."

Further, the writ petition prayed for the Court to pass directions to the Environment Prevention and Control Authority (EPCA) constituted by the Supreme Court to supervise and make guidelines regarding the appropriate use of this contribution under CSR for the betterment of the public transport system in selected heavily polluted cities.

Dr. Kulshretha added that the funds could be utilised to clear the financial losses suffered by Delhi Metro. He said: "This metro[Delhi] is under losses of 250 crore. DTC is under loss. the combined loss is 750 crores. Most part can be given to public transportation system to attract [people]. There is rich class that needs comfort and safety and then there is poor class. We need to help them."

However, Justice Nagarathna remarked if the petitioner wants environmental protection or clearing DTC's dues. She said: "If they are under losses, if does not mean oil companies have to pay."

Lastly, pass directions to the EPCA to utilize part of CESS lying with CPCB [collected under heads; environment protection charges (EPC) & environmental compensation (EC)] for public transport also besides other environment protection activities.

Stating that the Court cannot direct how companies need to utilise their CSR funds, the Court rather than dismissing the writ petition, disposed it of reserving liberty to the petitioner to make appropriate representation(s) or endeavour to bring to the notice of the concerned authorities including EPCA vis-a-vis the prayers sought by the petitioner herein.

Case Details: TSUNAMI ON ROADS (REGISTERED NGO) THROUGH DR SANJAY KULSHRESTHA v. UNION OF INDIA AND ORS., Diary No. 39633-2024

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