Project Cost a Valid Factor for Green Compensation: Supreme Court Strengthens NGT’s Powers
Background of the Case The Supreme Court of India has reaffirmed and strengthened the powers of the National Green Tribunal (NGT) to impose environmental compensation (EC) by holding that project cost and scale of operations are valid and relevant factors while computing compensation for environmental violations. The ruling arose from two civil appeals challenging orders of the NGT Western Zone Bench, Pune , which had imposed substantial environmental compensation on two real estate developers in Maharashtra. Facts of the Two Appeals Rhythm County Project Project Cost: ₹335 crore Environmental Compensation Imposed: ₹5 crore (approximately 2% of project cost) NGT Order Date: August 2022 Keystone Properties Project Project Cost: ₹76 crore Environmental Compensation Imposed: ₹4.47 crore (approximately 5.88% of project cost) NGT Order Date: September 2022 Both developers challenged the NGT orders before the Supreme Court, arguing that: The compensation was excessive and disproport...