Supreme Court Sets Aside Interim Compensation of Rs. 2 Crores Imposed on Jaipur Development Authority for STP Non-compliance”

07 May 2024 8:19 AM

By: Admin

In a recent judgment, the Supreme Court of India has set aside the imposition of an interim compensation of Rs. 2,00,00,000/- (Rupees two crores) on the Jaipur Development Authority by the National Green Tribunal. The case stemmed from a finding that the sewage treatment plant (STP) operated by the appellant had been non-compliant for 135 days. The appellant did not dispute this finding but challenged the substantial amount of the imposed compensation.

The Court observed, “After having perused paragraph No.8 of the impugned judgment, we find that there is absolutely no reason recorded by the Tribunal for coming to the conclusion that the appellant is liable to pay a sum of Rs. 2,00,00,000/- towards the interim compensation.” The Court noted that the Tribunal did not provide reasons for rejecting the Committee of Experts’ proposed compensation of Rs. 33,75,000/- (Rupees thirty three lakhs seventy five thousand), which the appellant had already deposited.

Given the lack of recorded reasons for the imposition of the higher compensation amount, the Supreme Court has decided to remand the case back to the National Green Tribunal for a fresh reconsideration of the quantum of interim compensation. The Court emphasized that the Tribunal must hear the parties and decide on the interim compensation issue afresh. Until a new determination is made, the appellant’s deposited amount of Rs. 33,75,000/- shall be treated as interim compensation.

The appeal has been partly allowed by the Supreme Court, which has also urged the Tribunal to expedite the resolution of the interim compensation matter. This decision highlights the importance of providing proper reasoning for the imposition of compensation amounts and ensures a fair assessment of penalties in cases of non-compliance with environmental regulations.

Date of Decision: August 09, 2023.

JAIPUR DEVELOPMENT AUTHORITY vs STATE OF RAJASTHAN & ORS.