'Parliament’s Liability Cap Does Not Bar Courts From Granting Fair Compensation To Nuclear Accident Victims': SC On SHANTI Act

The Supreme Court in India has raised concerns about whether the new SHANTI Act of 2025, which governs nuclear energy, prevents courts from granting fair compensation to victims of nuclear accidents. During a hearing on a petition challenging several provisions of the bill, Chief Justice Surya Kant expressed that there is "too much apprehension" surrounding the liability provisions.

Kant made it clear, however, that the statutory cap on nuclear operator liability does not necessarily preclude constitutional courts from assessing appropriate compensation for victims. The SHANTI Act, which replaced the earlier Civil Liability for Nuclear Damage Act of 2010, permits private companies to participate in the development and operation of civil nuclear power plants, and provides for limits on the liability of these operators in the event of an accident.

The petition, filed by former bureaucrat EAS Sarma and others, argues that the liability framework could undermine safety incentives and result in inadequate compensation for victims of a major nuclear disaster. The Supreme Court has sought clarification from the Union government on the issue and on the mechanism for appointing members of the nuclear regulatory body under the legislation.