Supreme Court stays NGT’s order of ₹20 crore fine on Dhampur sugar mill units in UP

The Supreme Court has stayed the National Green Tribunal’s order imposing a fine of Rs 20 crore on four units of Dhampur Sugar Mills Limited in Uttar Pradesh for persistent violation of environmental laws.

A bench of Justice Indira Banerjee and Justice JK Maheshwari issued notices to the Central Pollution Control Board (CPCB), Central Ground Water Authority (CGWA), UP Pollution Control Board (UPPCB) and others on an appeal filed by Dhampur Chini Mill.

“Notice issued, refundable in six weeks. In the meantime, the order will remain stayed to the extent of payment of compensation of ₹5 crore which has been imposed against each unit and a cost of ₹10 lakh to be paid by the respondent No. 1 3 (Dhampur Sugar Mills Ltd.),” the bench said.

The top court, in its October 8 order, also said that no further steps shall be taken for a period of six weeks by the committee constituted by the NGT to assess the damages.

The Chinese manufacturing company had moved the apex court against the NGT order.

The tribunal, after perusing various inspection reports filed by the Central Pollution Control Board (CPCB) and the Uttar Pradesh Pollution Control Board (UPPCB), observed that the environment has been damaged for a long time.

NGT had imposed environmental compensation of ₹ 5 crore each on Dhampur Chini Mill, District Sambhal; Dhampur Sugar Mills, District Bijnor; Dhampur Distillery Unit, District Bijnor and Dhampur Chini Mill, Mirganj, District Bareilly were directed to pay the amount in 30 days from September 1, 2021.

The tribunal had also constituted a committee of CPCB (nominated by the Chairman), one from UPPCB and concerned District Magistrates to conduct a detailed study on the extent of damage caused to the environment.

The committee will also interact with farmers and local residents who may have suffered loss/damage due to pollution caused by the units.

“We also incur litigation cost of ₹ 10 lakh which shall be paid by Respondent No. 1 to 3 (Dhampur Sugar Mills Limited) to CPCB within a period of one month and the said amount shall be utilized for protection and conservation of environment, NGT said in its order.

The tribunal was hearing a petition filed by Adil Ansari, seeking penal action, including imposition of appropriate environmental compensation, against the units of Dhampur Sugar Mills Limited for non-compliance of environmental norms/laws.

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