Penalties Can't Be Based on Company Revenue

The Supreme Court slammed the National Green Tribunal (NGT) for imposing a ₹25 crore penalty on Benzo Chem Industrial Private Limited based on its revenue, calling the approach "completely unknown to the principles of law." The Court found the NGT's findings untenable and set aside its order.

The bench highlighted that even if the company was found guilty of violations, the NGT should have issued a notice before imposing such a hefty penalty. The penalty was calculated on the assumption that the company’s revenue ranged between ₹100 crore and ₹500 crore, which the Supreme Court deemed inappropriate.

The Court further noted that the NGT’s orders violated principles of natural justice and lacked due consideration.