Supreme Court Overturns NGT’s Rs 3 Crore Fine on Mining Firm for Environmental Damage

The Supreme Court has annulled a National Green Tribunal (NGT) order that imposed a Rs 3 crore fine on M/s Govardhan Mines and Minerals for environmental damage caused by illegal mining activities in Dadam Hills, Tosham, Bhiwani, Haryana. The top court has remanded the case back to the NGT for reconsideration, highlighting procedural concerns in the original ruling.

Chief Justice Sanjiv Khanna, along with Justices Sanjay Kumar and Manmohan, criticized the NGT for not adequately addressing the contentions presented by the mining firm. The justices emphasized that the NGT had relied heavily on a committee’s report without sufficiently engaging with the arguments of the parties involved. “The arguments of the parties need to be dealt with by the first court, which is NGT here,” stated Chief Justice Khanna during the proceedings.

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Senior Advocate Shyam Divan, representing M/s Govardhan Mines and Minerals, argued that the NGT had overlooked the company’s challenges to the committee’s findings. However, the Chief Justice did not accept Divan’s argument of “res judicata,” a legal doctrine that bars re-litigation of the same issue once it has been resolved.

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Previously, on August 26, 2022, the NGT had issued a comprehensive order against the firm for engaging in illegal and unscientific mining operations. This decision followed extensive investigations which reportedly revealed several violations, including unauthorized mining beyond approved boundaries and depths, and non-adherence to environmental norms and mining plans.

The fact-finding committee, led by Justice Pritam Pal, a former judge of the Punjab and Haryana High Court, had found significant breaches of environmental clearances and mining regulations. The violations included failing to maintain a mandatory 7.5-meter green belt and safety zones around the leased area. As a result, the NGT had initially imposed a penalty calculated at 10 percent of the value of the illegally mined material, revising down from an earlier suggestion of Rs 7.5 crores.

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Additionally, the NGT had directed the Haryana government to evaluate the costs required for the restoration of the damaged Aravalli plantation and to recover these costs from the mining firm.

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