The National Green Tribunal (NGT) has issued notices to the Ministry of Environment, Forest and Climate Change, the Central Pollution Control Board (CPCB), and the State Pollution Control Boards (SPCBs) of Himachal Pradesh, Punjab, Haryana, Delhi, and Chandigarh. The notices concern alleged diversion of environmental compensation funds collected for ecological purposes towards non-ecological activities.
Information was available with The Chenab Times that the principal bench of the NGT was acting on a petition filed by advocate Kamal Anand. The petition highlighted concerns regarding a lack of transparency, traceability, and accountability in the collection, realisation, and utilisation of environmental compensation across various states.
Specifically concerning Himachal Pradesh, the petitioner sought an audit of the Himachal Pradesh State Pollution Control Board (HPPCB). It was alleged that approximately Rs 3.5 crore from these environmental compensation funds had been diverted to the police department. The petitioner has also requested the restitution of this amount to the dedicated environmental account.
Further allegations detailed in the petition state that the HPPCB purportedly paid Rs 25.09 lakh as a litigation fee to lawyers representing the board before the NGT. This expenditure, the petitioner argues, represents a direct contravention of the established norms governing the utilisation of environmental compensation.
The petition also pointed out another financial anomaly where the board reportedly placed Rs 3 crore of environmental compensation funds into fixed deposit accounts. While these funds were earning interest, the petitioner highlighted that the money intended for crucial pollution mitigation and ecological restoration efforts remained unutilised, thereby defeating the core purpose of the compensation mechanism.
Advocate Anand, in his submission, underscored the fundamental principle of “polluter pays”. He argued that environmental compensation collected as a consequence of ecological degradation must be disbursed with utmost transparency and accountability, specifically for the restoration of affected ecosystems. He contended that parking substantial sums in savings or fixed deposit accounts to accrue commercial interest, especially while environmental degradation persists, fundamentally undermines the intent behind such compensation schemes.
The petitioner also asserted that utilising environmental compensation funds for litigation expenses constituted an unlawful diversion and weakened the NGT’s established guidelines on their proper utilisation. He pressed for the immediate formulation and consistent implementation of a stringent, uniform statutory framework applicable nationwide. This framework, he advocated, should govern the collection, time-bound utilisation, and auditing of these vital environmental funds.
In addition to these demands, the petition seeks the establishment of digital transparency dashboards on the official websites of both state and central pollution control boards. These dashboards are intended to provide monthly updates on compensation amounts imposed and realised, expenditure broken down by head, current bank balances, and details of show-cause notices issued to environmental law violators. Such a measure aims to bring greater public scrutiny and accountability to the management of these funds.
The petitioner invoked Section 20 of the National Green Tribunal Act, 2010, to support his arguments. This section emphasizes that environmental compensation serves a dual purpose: acting as a monetary deterrent against polluting activities and providing an immediate source of funding for ecological restoration. However, the petition alleged that the concerned boards had instead transformed this mechanism into a “passive revenue hoarding model,” diverting from its intended objectives.
The NGT’s issuance of notices signifies its serious consideration of the allegations. The tribunal is expected to scrutinize the financial practices related to environmental compensation funds and ensure their adherence to the principles of environmental protection and restoration across the involved states.
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