Case Note & Summary
The dispute arose from the revocation of Environmental Clearance (EC) granted to a steel plant operated by the Appellant, Electrosteel Steels Limited, following allegations of environmental violations. The Appellant, which employed a significant workforce and produced substantial steel output, had undergone Corporate Insolvency Resolution Process, leading to its acquisition by Vedanta Ltd. The Appellant's operations were under the regulatory oversight of the Jharkhand State Pollution Control Board (JSPCB). The Appellant applied for EC to establish a new plant but later shifted the location without obtaining necessary approvals, leading to allegations of encroachment on forest land. The JSPCB and the Ministry of Environment, Forest and Climate Change (MoEF&CC) issued notices and conducted hearings regarding these violations. The High Court initially granted interim relief allowing the Appellant to operate under supervision, but later discontinued these orders, citing violations of the Environmental Impact Assessment (EIA) Notification and the need for compliance with environmental laws. The Supreme Court upheld the High Court's decision, emphasizing the importance of adhering to environmental regulations and the principle of 'polluter pays'. The court noted that the revocation of EC was justified due to the Appellant's failure to comply with the stipulated conditions, and directed that the matter be resolved in accordance with the law.
Headnote
A) Environmental Law - Environmental Clearance - Revocation of Environmental Clearance - Environment (Protection) Act, 1986, Section 5 - The Appellant's EC was revoked due to encroachment on forest land and shifting of the plant location, violating the conditions of the EC. The court held that the revocation was justified as it was based on substantial violations of environmental laws (Paras 61-62).
Issue of Consideration
Whether the revocation of the Environmental Clearance (EC) and the discontinuation of interim orders were justified under the Environmental (Protection) Act, 1986.
Final Decision
The Supreme Court upheld the High Court's order discontinuing the interim orders and revoking the Environmental Clearance, emphasizing compliance with environmental laws and the principle of 'polluter pays'.
Law Points
- Environmental law
- Environmental Clearance
- Pollution Control
- Corporate Insolvency
- Natural Justice
- Ex post facto clearance
