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Supreme Court of India: Environmental Compensation and NGT Powers Clarified

The Supreme Court set aside the National Green Tribunal's (NGT) imposition of a Rs. 50 crore penalty based on company turnover, holding that penalties must have a rational nexus to environmental harm. The Court also struck down NGT's direction to the Enforcement Directorate to investigate under the Prevention of Money Laundering Act, clarifying NGT's jurisdiction.

Supreme Court of India

Date Added

18 April 2026 at 23:01:26

Why it matters

Clarifies calculation of environmental penalties and limits NGT's powers, ensuring penalties are proportionate and based on actual harm, not revenue.

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