National Green Tribunal Upholds CPCB's Order Imposing Environmental Compensation for Delay in Installing Vapour Recovery Systems
In a significant ruling, the National Green Tribunal (NGT) has upheld the Central Pollution Control Board's (CPCB) decision to impose an Environmental Compensation (EC) of Rs. 1 crore on Bharat Petroleum Corporation Limited (BPCL) for failing to comply with mandatory environmental guidelines. The order, delivered by the Principal Bench in New Delhi, emphasized the binding nature of CPCB's directives, which align with the Hon'ble Supreme Court and NGT's guidelines regarding the installation of Vapour Recovery Systems (VRS) at storage terminals and retail petroleum outlets.
BPCL was mandated to install VRS at its storage terminals by March 2024, as per the CPCB's directions under Section 5 of the Environment (Protection) Act, 1986. Despite being issued a show cause notice and having the opportunity to respond, BPCL failed to meet the prescribed timeline, leading to the imposition of the hefty fine. The Tribunal noted that CPCB acted within its legal framework, adhering to directives from higher judicial authorities, and could not extend the compliance timelines without legal authority.
The case also highlighted procedural compliance with the principles of natural justice, as BPCL had been duly notified and had responded to the show cause notice before the initial order in November 2024. The Tribunal found no procedural violations in the CPCB's actions.
Furthermore, the Tribunal dismissed BPCL's appeal against the subsequent July 2025 order, which reiterated the requirement to deposit the EC, noting that the original order had attained finality and was not contested by BPCL in a timely manner. The Tribunal also pointed out BPCL's failure to submit the required monthly progress reports on VRS installation, marking an additional lapse in compliance.
The judgment underscores the critical importance of adhering to environmental regulations and the judiciary's role in enforcing compliance to safeguard environmental standards. This case serves as a precedent for strict adherence to environmental directives, especially when backed by apex court rulings.
Bottom Line:
Non-compliance with the directions of the Central Pollution Control Board (CPCB) regarding the installation of Vapour Recovery Systems (VRS) at storage terminals and retail petroleum outlets results in the imposition of Environmental Compensation (EC). CPCB is bound by the orders of the Hon'ble Supreme Court and National Green Tribunal, and extensions to timelines cannot be granted without legal authority.
Statutory provision(s): Environment (Protection) Act, 1986 Section 5, National Green Tribunal Act, 2010 Section 18(1), Section 16 (g).
