Supreme Court Halts NGT’s Rs 12,000 Crore Penalty on Maharashtra for Mismanagement of Waste

In a pivotal development, the Supreme Court intervened on Tuesday, putting a pause on the National Green Tribunal’s (NGT) 2022 directive that demanded the State of Maharashtra to deposit a staggering Rs 12,000 crore in a specially designated account. The NGT had imposed this hefty penalty, citing the state’s alleged failure in appropriately managing both solid and liquid waste, resulting in severe environmental repercussions.

Representing Maharashtra, Senior Advocate Mukul Rohatgi contested the imposed amount, emphasizing a pending review before the NGT. Rohatgi articulated, “There are so many zeroes in the fine that counting them becomes a formidable task. A review is currently underway before the NGT.”

The bench, composed of Chief Justice of India DY Chandrachud, Justice JB Pardiwala, and Justice Manoj Misra, issued a notice in response to Rohatgi’s plea and temporarily stayed the NGT’s enforcement.

The NGT’s order, grounded in Section 15 of the NGT Act, aimed to address the environmental harm caused by the alleged negligence in waste management. The substantial compensation, totaling Rs. 12,000 crores, was intended to be deposited within two months into a segregated account. The Chief Secretary was entrusted with overseeing the allocation of these funds for restoration initiatives, encompassing sewage treatment, operational enhancements, compliance with standards, and effective sewage and sludge management in rural areas.

The NGT’s rationale for the imposed compensation was outlined as follows: “We determine compensation payable by the State of Maharashtra. In respect of gap in treatment of liquid waste and sewage…compensation works out to Rs. 10840.66 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.”

For solid waste management, the NGT’s directives encompassed the establishment of waste processing plants and the remediation of 84 designated sites. Adherence to Central Pollution Control Board (CPCB) guidelines for bio-remediation and bio-mining processes was mandated, with recovered materials to be utilized through authorized channels. The NGT emphasized the execution of the restoration plan within a stipulated timeframe, with the possibility of additional compensation for continued violations.

This legal saga, encapsulated in the case of ‘The State of Maharashtra v National Green Tribunal Diary No. 44889-2023,’ unfolds against the backdrop of environmental stewardship and regulatory scrutiny.

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