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IN THE SUPREME COURT OF INDIA Reportable

Can Environmental Clearances Be Granted Without Proper Review? Supreme Court Clarifies

Sanghar Zuber Ismail vs Ministry of Environment, Forests and Climate Change

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Key Takeaways

• A court cannot grant environmental clearance merely based on the project proponent's assurances.
• The National Green Tribunal must independently assess environmental challenges before approving projects.
• Constitutional duties of the National Green Tribunal cannot be delegated to expert committees.
• Environmental clearances require comprehensive evaluation of potential ecological impacts.
• Parties must present complete and accurate Environmental Impact Assessments to the tribunal.

Introduction

The Supreme Court of India recently addressed the critical issue of environmental clearances in the case of Sanghar Zuber Ismail vs Ministry of Environment, Forests and Climate Change. This judgment emphasizes the necessity for thorough and independent evaluations by the National Green Tribunal (NGT) before granting environmental clearances, particularly in projects that may significantly impact the environment.

Case Background

The appeal arose from a judgment of the National Green Tribunal dated June 8, 2021, concerning the expansion of a refinery in Vadinar, Gujarat. The second respondent had been granted environmental clearance to increase the refinery's capacity from 20 MMTPA to 46 MMTPA. The appellant, Sanghar Zuber Ismail, challenged this clearance, arguing that the expansion would adversely affect the marine environment, particularly the mangroves and marine biology in the area.

The NGT had noted the Environmental Impact Assessment (EIA) prepared by CSIR–NEERI and the assurances provided by the project proponent regarding compliance with environmental conditions. However, the NGT ultimately decided not to interfere with the grant of the environmental clearance, directing the project proponent to ensure compliance with all necessary safeguards.

What The Lower Authorities Held

The NGT's decision was based on the assertion that the project was already operational and that there were no ongoing grievances regarding its environmental compliance. However, the NGT's ruling did not adequately address the potential environmental impacts of the proposed expansion. The tribunal's reliance on the project proponent's statements without conducting an independent appraisal of the environmental challenges raised concerns about the adequacy of its review process.

The NGT's approach raised questions about its duty to adjudicate substantive challenges to environmental clearances. The tribunal's reliance on the assurances of the project proponent and the establishment of an expert committee to oversee compliance were seen as insufficient to fulfill its adjudicatory responsibilities.

The Court's Reasoning

The Supreme Court, led by Justice Dhananjaya Y Chandrachud, found that the NGT had failed to exercise its appellate powers appropriately. The Court emphasized that the NGT must independently evaluate the substantive grounds of challenge presented by the appellant. The mere establishment of an expert committee does not absolve the NGT of its duty to adjudicate; the tribunal must make its own determinations based on the evidence and arguments presented.

The Court noted that the NGT's decision was primarily based on the project proponent's assurances, which did not constitute a sufficient basis for granting environmental clearance. The Supreme Court underscored the importance of a comprehensive review of potential environmental impacts, particularly in cases where significant ecological risks are involved.

Statutory Interpretation

The judgment also highlighted the provisions of the National Green Tribunal Act, 2010, particularly Section 16, which outlines the grounds for appeal against environmental clearances. The Court reiterated that the NGT must apply its mind to the substantive issues raised in appeals and cannot delegate its adjudicatory functions to committees, regardless of their expertise.

Constitutional or Policy Context

This ruling reinforces the constitutional mandate for environmental protection and the role of the NGT as an expert body tasked with safeguarding ecological interests. The decision reflects a broader commitment to ensuring that environmental clearances are not granted lightly and that potential harms to the environment are thoroughly assessed.

Why This Judgment Matters

The Supreme Court's ruling in Sanghar Zuber Ismail vs Ministry of Environment, Forests and Climate Change is significant for several reasons. It clarifies the procedural requirements for granting environmental clearances and emphasizes the need for independent assessments by the NGT. This judgment serves as a reminder that environmental protection must remain a priority in the face of industrial expansion and development.

Final Outcome

The Supreme Court allowed the appeal, set aside the NGT's order dated June 8, 2021, and restored the appeal for fresh consideration. The Court maintained that all rights and contentions of the parties on the merits would remain open for adjudication.

Case Details

  • Case Title: Sanghar Zuber Ismail vs Ministry of Environment, Forests and Climate Change
  • Citation: 2021 INSC 431
  • Court: IN THE SUPREME COURT OF INDIA
  • Bench: Justice Dhananjaya Y Chandrachud, Justice M.R. Shah, Justice Hima Kohli
  • Date of Judgment: 2021-08-31

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