Supreme Court Stays NGT Order Imposing Rs 12,000 Crore Cost On State Of Maharashtra For Improper Management Of Solid & Liquid Waste

The Supreme Court on Tuesday (28.11.2023) stayed the order of the National Green Tribunal (NGT) which had in 2022, directed the State of Maharashtra to deposit a cost of Rs 12,000 crore in a 'ring fenced account' for failure to treat solid and liquid waste generated in the state. 

Senior Advocate Mukul Rohatgi, appearing for the State of Maharashtra, argued against the amount imposed and informed the bench that a review against the same was pending before the NGT. He said–

"There are so many zeroes that I cannot even count in the fine. There is a review pending before the NGT."

The bench comprising Chief Justice of India (CJI) DY Chandrachud, Justice JB Pardiwala and Justice Manoj Misra issued notice on the plea and stayed the NGT order.

The NGT had levied the substantial Environmental Compensation citing alleged negligence in managing both solid and liquid waste, leading to environmental harm. The fine, imposed under section 15 of the NGT Act, aimed to address the ongoing environmental damage and align with Supreme Court directives mandating the tribunal to oversee adherence to waste management norms. To prevent further harm and restore past damage, the NGT had highlighted the necessity of fixing quantified liability. The compensation, determined by the tribunal, amounted to Rs. 12,000 crores. This sum was to be deposited by the State of Maharashtra within two months into a separate ring-fenced account. The Chief Secretary was directed to oversee the utilization of these funds for restoration measures, including sewage treatment and utilization systems, upgrading operations, compliance with standards, and proper sewage and sludge management in rural areas.

The NGT had stated, “We determine compensation payable by the State of Maharashtra. In respect of gap in treatment of liquid waste and sewage i.e. 5420.33 MLD, compensation works out to Rs. 10840.66crores and compensation for un-remediated legacy waste to the extent of 3,94,19,287 works out roughly to about Rs. 1200 crores. We round off the compensation amount Rs. 12,000/- crores which may be deposited by the State of Maharashtra in a separate ring-fenced account within two months, to be operated as per directions of the Chief Secretary and utilised for restoration measures.”

For solid waste management, the action plan as per the NGT order entailed setting up waste processing plants and remediating 84 sites. It was stated that the bio-remediation and bio-mining processes had to adhere to CPCB guidelines, with recovered materials used through authorized channels. The restoration plan was mandated to be executed in a time-bound manner, with potential additional compensation for continued violations.

“Bio-remediation and bio-mining process need to be executed as per CPCB guidelines and the stabilized organic waste from bio-mining as well as from compost plants need to comply with laid down specifications. Other materials recovered during such processes are to be put to use through authorized dealers, handlers and users. This restoration plan needs to be planned and executed in a time-bound manner without further delay. If violations continue, liability to pay additional compensation may have to be considered. Compliance will be the responsibility of the Chief Secretary,” the NGT bench had said.

Case Title: The State Of Maharashtra v National Green Tribunal Diary No. 44889-2023

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