Solid Waste Management Rules, 2026 – rr.18(1)-(3), 17(2) – Environmental Compensation – Determination and imposition of – Principles formulated – Central Implementation Committee constituted vide Office Memorandum dtd.09.03.2026 – Under sub-rule 17(2), the Central Implementation Committee is mandated to prepare guidelines for imposition and collection of environmental compensation – Principles laid down: Held: Environmental compensation cannot be seen as a replacement for penalties levied against the erring polluter – It is restitutionary in nature and is paid in addition to the penalty or fine that the polluter is liable to pay – The temporal extent of paying compensation by the polluter ends only when the damage caused is reversed – The appropriate authorities of the State have a duty to undertake an exercise of valuing the damage caused by the polluter and collect such compensation required for restoration of the environment – While determining the amount of environmental compensation, both tangible and intangible damage caused by the polluter must be considered – Even if actual harm is not caused but is imminent or the actions/activities of the polluter have the potential to cause harm, the liability to pay compensation will come into place – Factors such as the financial capacity of the polluter, the cost involved in assessing the damage and loss suffered by individuals and the environment as well as the cost of remediation or restoration are also to be taken into account while valuing such compensation – Any environmental compensation levied must be proportional to the damage caused by the polluter and must have some rational nexus to the pollution caused – All courts and tribunals must record reasons while determining environmental compensation, listing the factors considered, the valuation standard used to assess such damages and the formula or guidelines applied to quantify the compensation payable – Central Implementation Committee can also take guidance from certain Rules already in force viz. Plastic Waste Management Rules enables the Central Pollution Control Board to formulate and notify guidelines for environmental compensation for plastic waste management violations; Revised Guidelines for Assessment of Environment Compensation to be levied for violation of Plastic Waste Management Rules, 2016 laying down a detailed formula to calculate environmental compensation based on various factors; Guidelines for Determination of Environmental Compensation to be recovered for violation of Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016; Environment Protection (Manner of Holding Inquiry and Imposition of Penalty) Rules, 2024 – MoEF&CC to take into account the principles for determination and imposition of environmental compensation, as also the Rules that operate in the field, to formulate the necessary guidelines to be issued u/r.17(2) of the Solid Waste Management Rules, 2026 – MoEF&CC shall file an affidavit and shall place on record the progress in the making and the issuance of the regulations. [Paras 8, 17-25]
As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Divya Pandey. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.
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