In Brief
The Supreme Court held that environmental regulators—Pollution Control Boards—can impose and collect restitutionary and compensatory damages (fixed sums or bank guarantees) under Section 33A of the Water Act and Section 31A of the Air Act to address environmental damage or its risk, distinct from punitive penalties. This power is grounded in the Polluter Pays principle embedded in Indian environmental law. However, Boards must exercise this power only when environmental harm is established or imminent, through subordinate legislation incorporating procedural fairness, and with transparency and non-arbitrariness. The Court allowed the DPCC's appeal in principle but barred revival of stale show cause notices from 2006, and ordered refund of amounts already collected lacking legal authority.
The lawyer headnote and full judgment text are available to registered users.