In a landmark ruling reinforcing environmental governance, the Supreme Court on Monday upheld the authority of pollution control boards to impose restitutionary and compensatory damages for environmental harm, ruling that such powers are both constitutional and statutory.
A bench comprising Justices P.S. Narasimha and Manoj Misra held that under the Water (Prevention and Control of Pollution) Act and the Air (Prevention and Control of Pollution) Act, pollution control boards are empowered to levy damages not only for actual environmental degradation but also as a preventive measure against potential harm.
“Environmental regulators, the Pollution Control Boards, exercising powers under the Water and Air Acts, can impose and collect restitutionary or compensatory damages in the form of fixed sums of money or require furnishing of bank guarantees as an ex-ante measure to prevent potential environmental damage,” Justice Narasimha observed in the judgment.
The bench emphasized that such damages are civil in nature and aimed at restoration and prevention, not punishment. It clarified that these measures are distinct from punitive actions like fines or imprisonment, which must be carried out under the prescribed statutory procedures of the respective Acts.
The court set aside a 2012 Delhi High Court judgment that had restricted the powers of pollution boards to demand environmental damages. It reaffirmed key principles of environmental jurisprudence — particularly the ‘Polluter Pays’ and ‘Precautionary’ principles — as foundational to India’s environmental regulatory framework.
“Environmental regulators have a compelling duty to adopt and apply preventive measures irrespective of actual environmental damage,” the bench noted, adding that ex-ante (before the event) actions are essential tools to safeguard the environment.
The judgment also made it clear that such regulatory powers must be exercised in accordance with rules that ensure transparency, fairness, and adherence to natural justice. “Necessary subordinate legislation in the form of rules and regulations must be notified to guide the exercise of these powers,” the court directed.
Highlighting the statutory recognition of the ‘Polluter Pays’ principle, the court said it can be applied even in cases where environmental damage is only anticipated, or where legal thresholds are not breached but harm still occurs.
Legal experts have hailed the verdict as a significant advancement in India’s environmental law. It is expected to strengthen the role of pollution control boards and reinforce environmental accountability across industries.
