NCR States Must Pay Compensation To Construction Workers Affected By GRAP Closures, Even Without Specific Court Orders: Supreme Court

The Supreme Court on Friday (February 28) directed that NCR states must pay compensation to construction workers affected by the closure of activities due to Graded Response Action Plan (GRAP) measures in Delhi NCR.

A bench of Justice Abhay Oka and Justice Ujjal Bhuyan clarified that compensation should be paid in accordance with its earlier order dated November 24, 2021, which mandated the payment of wages to affected workers using funds collected as labour cess.

The bench emphasized that compensation must be paid even if no specific court order is issued in the future. It reiterated that whenever construction activities are halted due to GRAP measures, affected workers should receive subsistence payments as per the court's directions.

“As far as 2024 and 2025 are concerned we have issued directions to the state to pay compensation. We make it clear that hereafter whenever the construction activities are required to be closed due to implementation of GRAP measures, compensation shall be paid to the affected workers in terms of directions issued by this court dated 24th November 2021. Even if there is no specific direction of the court to pay compensation, the NCR States shall pay compensation”, the Court held.

During the proceedings, the court reviewed the status of compensation payments in Delhi NCR. Haryana informed the court that the last phase of compensation payments was underway. The court noted that for the first and second phases of GRAP 4, compensation had been paid to 2,68,759 and 2,24,881 workers, respectively. Additionally, the process of paying compensation to around 95,000 workers for the January 2025 GRAP 4 period is ongoing. The bench observed that no further direction was needed for Haryana at this stage.

Regarding Delhi, the court examined an affidavit stating that compensation had been paid to 93,272 workers. The verification process for the remaining registered workers is in progress. The court allowed the unions of affected workers to submit details to aid verification and disbursement. The Delhi government was directed to file an updated affidavit by the end of March 2025, detailing the payments made.

For Rajasthan, the court recorded that compensation had been paid to 3,197 workers, and no further direction was required.

Uttar Pradesh informed the court that compensation had been disbursed to 4,88,246, 4,84,157, and 691 workers affected during phases 1, 2, and 3 of GRAP, respectively. The bench noted that no additional direction was needed for Uttar Pradesh at this stage.

The bench also addressed the scope of activities permitted under GRAP. The November 24, 2021 order, referenced by the court, had imposed a ban on construction activities in NCR while allowing non-polluting tasks such as plumbing, interior decoration, electrical work, and carpentry. It also directed states to use labour cess funds to provide subsistence to construction workers and pay wages under the Minimum Wages Act during periods of prohibition.

On Friday, counsel for the National Campaign Committee – Construction Labour argued that non-polluting construction activities should continue even during GRAP 3 and GRAP 4 restrictions. However, the court declined to issue such an order, stating that the GRAP guidelines already specify permissible activities.

The court added, “Learned counsel submits that directions issued in terms of clause 1 of order dated 24th November 2021 should continue to operate. However after the said order GRAP has undergone change. And therefore what will prevail is GRAP measures.”

Vehicular Pollution

Amicus curiae Aparajita Singh informed the bench that several authorities had failed to submit affidavits as directed on January 20, 2025. Singh suggested that the Commission for Air Quality Management (CAQM) be tasked with collecting and compiling the affidavits for the court's review.

On January 20, the Court had issued notices to multiple authorities concerning vehicular pollution, including the Ministries of Road Transport and Highways, Housing and Urban Affairs, Heavy Industries, Petroleum and Natural Gas, and Environment, Forest and Climate Change, as well as the Chief Secretaries of Delhi, Haryana, Uttar Pradesh, and Rajasthan. It also included urban local bodies, town planning agencies, transport departments, and the Delhi Traffic Police.

On Friday, the court noted that except for the Ministry of Road Transport and Highways (MoRTH) and the Ministry of Heavy Industries, no other central entities had submitted their responses. Among state bodies, only Rajasthan, Delhi, and Haryana had complied. The court directed the Supreme Court Registry to issue fresh notices to non-compliant entities, requiring them to submit affidavits within one month. Entities that had already filed responses were directed to submit improved affidavits. The court modified its January 20 order to require all affidavits to be sent to CAQM, which would compile them and provide copies to the amicus curiae.

Background

The MC Mehta case concerns pollution management in Delhi NCR, focusing on issues related to vehicular pollution, transport pollution, solid waste management, and stubble burning.

Previously, the court addressed the non-compliance of states in paying compensation to daily wage labourers affected by construction bans during implementation of GRAP 3 and GRAP 4 measures. It was noted that Uttar Pradesh had paid the lowest amount but covered the largest number of workers, while Haryana and Delhi had also made payments, though inconsistently. The bench directed the Chief Secretaries of Uttar Pradesh, Delhi, and Haryana to appear before the court to ensure compliance.

After that, on February 24, 2024, the court directed all the States and other stake holders to file affidavits on the issues relating to Transport and Payment of Subsistence Allowance to be dealt with on 28th February, 2025.

Case no. –WP (C) 13029/1985

Case Title – MC Mehta v. Union of India

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