Pollution Control Boards Can Levy Environmental Compensation, Seek Bank Guarantees: Supreme Court

The Supreme Court has ruled that Pollution Control Boards have the authority to impose environmental compensation and demand bank guarantees as preventive or restorative measures, under S 33A of the Water Act, 1974, and 31A of the Air Act, 1981.

The bench held that such powers are inherent and necessary to ensure effective pollution control, lawful and fall within their statutory powers.  

While upholding the Boards’ powers, the Court made it clear that such authority must be exercised fairly and transparently and not arbitrarily, and directed the government to frame subordinate legislation to guide their use. 

[DPCC v. Lodhi Property Co. Ltd. Etc.]