Solid waste management: SC seeks rules for compensation
The Supreme Court on Tuesday directed the Centre to come out with “structured” guidelines for imposing compensation for violations under the Solid Waste Management Rules observing that the same cannot be left to the discretion of regulatory bodies, tribunals and courts
The Supreme Court has directed the central government to establish structured guidelines for imposing compensation on violations of the Solid Waste Management Rules, asserting that the decision should not remain at the discretion of regulatory bodies, tribunals, or courts. Formulating eight guiding principles based on judicial precedents, the bench emphasized the need for a clear and certain regime to determine the imposition of environmental compensation under Rule 17(2) of the 2026 Rules.
The court stated that such clarity would not only serve as a deterrent but also inform individuals about the consequences of their actions. Rule 17 of the 2026 Rules mandates the determination, imposition, and collection of compensation, yet without a framework, this aspect remains ineffective. The court aimed to institutionalize the process of solid waste management in the country, acknowledging that the mission extends beyond rule formulation to ensure its implementation.
The court also highlighted that compensatory measures should be restitutionary and paid in addition to any penalties or fines the polluter is liable to pay, and that the polluter's liability ends only when the damage caused is reversed. The authorities must undertake an exercise to value the damage caused by the polluter and collect the required compensation for environmental restoration.
Both tangible and intangible damages must be considered while determining this amount. Even if no actual harm is caused but is imminent, liability to pay compensation remains necessary. The amount will depend on factors like the financial capacity of the polluter, the cost of assessing the damage and loss, and the cost of remediation or restoration.
The court stressed that environmental compensation must be proportional to the damage caused and have a rational nexus to the pollution. In determining compensation, parameters such as the geographical location of the polluter, the type of entity involved, any undue advantage gained by the polluter, and the health impact on the general public will also be considered.
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