In Brief
Electrosteel operated a 1.5 MTPA steel plant in Bokaro after obtaining Environmental Clearance for a site 5.3 km away, but shifted to a different location allegedly encroaching forest land. The High Court discontinued interim orders allowing operation. The Supreme Court held that closure should not be ordered for technical site-shifting violations without opportunity to regularize through revised clearance. The principle of proportionality applies: where plants comply with pollution norms, ex post facto clearance may be granted in appropriate cases. Interim continuation does not prevent future penal action under the polluter pays principle. The Ministry must decide the revised clearance application strictly per environmental norms within three months.
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