New Delhi, March 25 : The Supreme Court on Friday said a manufacturing unit contributing to the economy and providing livelihood to hundreds of people cannot be shut down for the technical irregularity of want of prior environmental clearance (EC).
A bench of Justices Indira Banerjee and J.K.Maheshwari said ex post facto environmental clearance should not be granted routinely, but in exceptional circumstances, taking into account all relevant environmental factors.
“Where the adverse consequences of denial of ex post facto approval outweigh the consequences of regularisation of operations by grant of ex post facto approval, and the establishment concerned otherwise conforms to the requisite pollution norms, ex post facto approval should be given in accordance with law, in strict conformity with the applicable Rules, Regulations and/or Notifications,” it added.
The bench added that the deviant industry may be penalised by an imposition of heavy penalty on the principle of polluter pays and the cost of restoration of environment may be recovered from it.
It said that the question in this case is whether a unit, contributing to the economy of the country and providing livelihood to hundreds of people, set up pursuant to requisite approvals from the statutory authorities concerned, and having applied for ex post facto EC, should be closed down for the technical irregularity of want of prior environmental clearance, even though it may not cause pollution and/or may be found to comply with the required norms.
“The answer to the aforesaid question has to be in the negative,” said the bench.
However, it said: “To protect future generations and to ensure sustainable development, it is imperative that pollution laws be strictly enforced.Under no circumstances can industries, which pollute, be allowed to operate unchecked and degrade the environment.”
The top court set aside a National Green Tribunal order passed on June 3, 2021 for closing down units of Pahwa Plastics Pvt Ltd, for not having prior environmental clearance, though it had applied for it ex post facto and the Central government had found it eligible for it.
“It is reiterated that the 1986 Act does not prohibit ex post facto EC.Some relaxations and even grant of ex post facto EC in accordance with law, in strict compliance with Rules, Regulations, Notifications and/or applicable orders, in appropriate cases, where the projects are in compliance with environment norms, is not impermissible.”
The top court noted that the unit had employed 8,000 workers and the only thing against it was not obtaining the EC, which was a procedural lapse.
Counsel appearing on behalf of the Union of India contended that the appellant had not submitted its final application for EC, after public hearing.
The court directed the Central government to take a final decision on the EC for the production unit within three weeks.
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