Supreme Court limits Green Tribunal’s jurisdiction over ED probes, strikes down ₹50 crore fine

The Supreme Court, in a bench led by Chief Justice BR Gavai and Justice K Vinod Chandran, set aside the National Green Tribunal’s (NGT) directive to the Enforcement Directorate (ED) to investigate under the Prevention of Money Laundering Act (PMLA).

Citing the necessity of a scheduled offence FIR for PMLA application, the Court held the NGT exceeded its powers under Section 15 of the NGT Act. It also struck down the NGT’s ₹50 crore environmental penalty on a company, ruling that fines must not link to turnover but to actual pollution impact.

The Court further quashed the NGT’s order to close certain divisions while upholding monitoring rights, and criticised the NGT’s lengthy judgment for excessive rhetoric over facts.

[M/S C.L. Gupta Export Ltd v Adil Ansari & Ors]