Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

Judgment / Order of the Supreme Court

Judgment

R. Mahadevan, J.

Leave granted. Heard all the parties and also perused the materials placed before us, including status reports / affidavits / responses filed by them. For the sake of clarity and better understanding, this judgment has been divided into the following heads:

SL. HEADS PARAGRAPHS NO.

I PREFATORY NOTE 02

II RELIEF SOUGHT 03 – 04

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

III FACTUAL OVERVIEW 05 – 17

A GENESIS OF THE LITIGATION 05 – 06

B VELLORE CITIZENS WELFARE FORUM 07 – 08 CASE

C AFTERMATH OF VELLORE CITIZENS 09 – 17 WELFARE FORUM JUDGMENT

IV RECORD OF PROCEEDINGS AND 18 AFFIDAVITS / REPORTS FILED BY THE AUTHORITIES

V CONTENTIONS OF THE PARTIES 19 – 59

VI ANALYSIS 60 – 91.1

A BASIC PRINCIPLES 60 – 64

B POLLUTION CAUSED BY TANNERIES 65 – 66

C CURRENT STATUS OF POLLUTION 67 – 70

D LIABILITY TO PAY COMPENSATION 71 – 73

E DEEMING FICTION AND 74 – 78 PRECAUTIONARY PRINCIPLE

F DETERMINATION OF COMPENSATION 79 – 81

G GOVERNMENT PAY PRINCIPLE 82 – 83 VIS-À-VIS RESPONSIBILITY OF THE GOVERNMENT

H REDUCTION OF POLLUTION 84 – 87

I PROVISIONS OF THE WATER ACT 88 – 90

VII ECOCIDE 92

VIII DISCUSSION AND FINDINGS 93 – 113

IX CONCLUSION 114

X RESULT AND DIRECTIVES 115 – 118

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I. PREFATORY NOTE

2. Nature and its elements are worshipped as Gods since time immemorial. Our forefathers knew the importance of preserving the environment both for their own well- being and for the benefit of future generations. However, over time, human greed has led us to forget this wisdom, treating nature as expendable at our expense and that of future generations. The degradation of the natural resources and pollutions of different kinds have a cascading effect on the environment, which now is a global issue and poses a threat to the very existence of our planet. Such degradation is the catalyst for the drastic climatic changes and challenges that we are facing now. The pollution and depletion of water resources, more particularly groundwater, is a foreseeable threat to all living beings. India produces 13 percent of the world’s leather and the leather market in India is valued at approximately Rs.40,000 crores1. It is a key foreign exchange earning sector for India being the 2nd largest global exporter and provides employment to lakhs. Tannery clusters are often located in areas with limited opportunities for livelihood. Not only does this industry contribute significantly to the national economy, but the States of Tamil Nadu, Uttar Pradesh, West Bengal and Punjab also have heavy economic dependencies on it. Despite its economic importance, a heavy price is being paid by the residents of areas surrounding tanneries and the workers employed therein, particularly, in terms of health impact, land degradation and an overall decreased quality of life. For years, environmental degradation has been rampant and it is time that a final lid be put to such activities that degrade the environment in violation of law. While acknowledging the economic importance of the industry, this Court shall not be a mute spectator to the environmental consequences and the loss of life and health caused by the waste generated by tanneries. There is an urgent need to strike a balance between competing interests, evolving and implementing sustainable solutions. Development which threatens the existence will serve no purpose. The sustainable development is an imminent requirement. The policies of the States and the actions must thrive towards striking a balance between socio- economic development and preservation of the natural resources for the benefit of the future generations.

1 CLRI Report

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

II. RELIEF SOUGHT

3. The challenge made in these appeals (arising out of SLP Nos.23633- 23634 of 2010) is to the common order dated 28.01.2010 passed by the High Court of Judicature at Madras2, in WP Nos. 8335 of 2008 and 19017 of 2009, whereby, the High Court dismissed the first writ petition filed by the appellant herein viz., Vellore District Environment Monitoring Committee and disposed of the latter writ petition filed by the appellant viz., All India Skin and Hide Tanners and Merchants Association3. Besides, the AISHTMA has preferred an appeal (arising from SLP(C)No.26608 of 2011) against the order dated 08.02.2010 passed by the High Court in dismissing W.P.No.22683 of 2009 filed by them.

4. For ease of reference, the reliefs sought in the aforesaid writ petitions are quoted below:

W.P.No.8335 of 2008: To issue a Writ of Mandamus, directing the respondents to ensure that the compensation payable to all affected individuals/families as contained in the report and Award dated 07.03.2001 passed by the Loss of Ecology (Prevention and Payment of Compensation) Authority4 for the State of Tamil Nadu is paid and all industries in default being subject orders of closure and initiate proceedings under the Revenue Recovery Act, 1890, for recovery of compensation and that compensation be assessed for the further loss caused to individual/ families from 31.12.1998 till date and implementation of appropriate scheme for reversal of damage to ecology and infrastructure be effected within a reasonable time frame and to ensure that there are no discharges from any tanneries in and around Ambur and Vaniyambadi land/water body.

W.P.No.19017 of 2009: To issue a Writ of Certiorari to call for the records relating to the order passed by the respondent / LoEA, dated 05.05.2009 with regard

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to the assessment of damage to ecology in Vellore District beyond 1998 and quash the same.

W.P.No.22683 of 2009: To issue a writ of certiorari to call for the records relating to the award and report for Vellore District, dated 24.08.2009 passed by the respondent / LoEA and quash the same.

III. FACTUAL OVERVIEW

(A) GENESIS OF THE LITIGATION

5. Vellore District is one of the oldest and largest Districts in Tamil Nadu lying on the banks of River Palar. Palar River is the source of drinking water for 30 towns and 50 villages along its banks. This river which was celebrated in literature, poetry, music, is now sullied by the operation of industries, especially, the tanning industry, which has been discharging effluents and dumping solid waste directly into the river and its channels, thereby making it unfit for drinking or agricultural purposes. Tanning industries which are the main source of income for the Vellore District, convert animal hides and skins into leather. Around 45% of the total tanneries in India are located in Tamil Nadu. More than 600 tanneries are situated in various clusters of Vaniyambadi, Ambur, Ranipet, Pernambut in the Vellore District. Though these industries have significant socio-economic impacts through employment and earnings, they have gained a negative image in society due to the pollution they generate.

6. Leather processing involves a series of unit operations, including pre-tanning, tanning, and post-tanning/finishing. At each stage, various chemicals are used, and a variety of materials are expelled, in addition to 35 - 40 litres of water used per kilogram of hide processed. Moreover, excessive amounts of chemicals are used in treatment drums, and it has been reported that 50% of the chemicals used in these processes become wastewater or sludge. The tanning process is almost wholly a wet process that consumes high amount of water, estimated at 34 - 56 of water per ton of hides or skin processed with 85% of the total water consumed being discharged as wastewater. Processed water consumption and consequently wastewater effluent discharge varies greatly between tanneries,

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

depending on the processes involved, raw materials, and products. A survey5 reports that tannery wastewater is highly polluted in terms of suspended solids, nitrogen, sulphate, sulphide, chloride, Biological Oxygen Demand (BOD), Chemical Oxygen Demand (COD), and chromium. The tanning industries have been operating with little or no pollution control for more than a century. It was only after 1980 that the treatment of the tannery wastewater was carried out6.

(B) VELLORE CITIZENS WELFARE FORUM CASE

7. Highlighting the pollution caused by untreated effluents discharged by tanneries and other industries in the State of Tamil Nadu into the River Palar, which is posing a great threat to the ecosystem and resulting in the non-availability of potable water in the area, a Non-Governmental Organization viz., Vellore Citizens Welfare Forum filed a Public Interest Litigation in W.P.(C)No.914 of 1991 before this Court, praying to issue a Writ of Mandamus, directing the respondents therein viz., Union of India and the State of Tamil Nadu, to immediately pay adequate compensation to the victims of pollution and to those who lost their lives, food crops, vegetation, trees, agricultural land, wells and suffered severe hardship due to irresponsible and negligent act of polluting tanneries and recover the amount to be paid in compensation to the affected people from the polluting tanneries. By judgment dated 28.08.19967, the said writ petition was disposed of by this Court with the following directions: “1. The Central Government shall constitute an authority under S.3(3) of the Environment (Protection) Act, 1986 and shall confer on the said authority all the powers necessary to deal with the situation created by the tanneries and other polluting industries in the State of Tamil Nadu. The authority shall be headed by a retired judge of the High Court and it may have other members preferably with expertise in the field of pollution control and environment protection to be appointed by the Central Government. The Central

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Government shall confer on the said authority the powers to issue directions under 5.5 of the Environment Act and for taking measures with respect to the matters referred to in Cls. (v), (vi), (vii), (viii), (ix), (x) and (xii) of subsection (2) of Section 3. The Central Government shall constitute the authority before September 30, 1996.

2. The authority so constituted by the Central Government shall implement the “precautionary principle” and the “polluter pays” principle. The authority shall, with the help of expert opinion and after giving opportunity to the concerned polluters assess the loss to the ecology/ environment in the affected areas and shall also identify the individuals/families who have suffered because of the pollution and shall assess the compensation to be paid to the said individuals/families. The authority shall further determine the compensation to be recovered from the polluters as cost of reversing the damaged environment. The authority shall lay down just and fair procedure for completing the exercise.

3. The authority shall compute the compensation under two heads namely, for reversing the ecology and for payment to individuals. A statement showing the total amount to be recovered, the names of the polluters from whom the amount is to be recovered, the amount to be recovered from each polluter, the persons to whom the compensation is to be paid and the amount payable to each of them shall be forwarded to the Collector/District Magistrates of the area concerned. The Collector/District Magistrate shall recover the amount from the polluters, if necessary, as arrears of land revenue. He shall disburse the compensation awarded by the authority to the affected persons/families.

4. The authority shall direct the closure of the industry owned/managed by a polluter in case he evades or refused to pay the compensation awarded against him. This shall be in addition to the recovery from him as arrears of land revenue.

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

5. An industry may have set up the necessary pollution control device at present but it shall be liable to pay for the past pollution generated by the said industry which has resulted in the environmental degradation and suffering to the residents of the area.

6. We impose pollution fine of Rupees 10,000/- each on all the tanneries in the districts of North Arcot Ambedkar, Erode Periyar, Dindigul Anna, Trichi and Chengai M.G.R. The fine shall be paid before October 31, 1996 in the office of the Collector/District Magistrate concerned. We direct the Collectors/District Magistrates of these districts to recover the fines from the tanneries. The money shall be deposited, along with the compensation amount recovered from the polluters, under a separate head called “Environment Protection Fund” and shall be utilised for compensating the affected persons as identified by the authorities and also for restoring the damaged environment. The pollution fine is liable to be recovered as arrears of land revenue. The tanneries which fail to deposit the amount by October 31, 1996 shall be closed forthwith and shall also be liable under the Contempt of Courts Act.

7. The authority, in consultation with expert bodies like NEERI, Central Board, Board shall frame scheme/schemes for reversing the damage caused to the ecology and environment by pollution in the State of Tamil Nadu. The scheme/schemes so framed shall be executed by the State Government under the supervision of the Central Government. The expenditure shall be met from the “Environment Protection Fund” and from other sources provided by the State Government and the Central Government.

8. We suspend the closure orders in respect of all the tanneries in the five districts of North Arcot Ambedkar, Erode Periyar, Dindigul Anna, Trichi and Chengai M.G.R. We direct all the tanneries in the above five districts to set up CETPs or Individual Pollution Control Devices on or before November 30, 1996. Those connected with CETPs shall have to install in addition the primary devices in the

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tanneries. All the tanneries in the above five districts shall obtain the consent of the Board to function and operate with effect from December 15, 1996. The tanneries who are refused consent or who fail to obtain the consent of the Board by December 15, 1996 shall be closed forthwith.

9. We direct the Superintendent of Police and the Collector/ District Magistrate/Deputy Commissioner of the district concerned to close all those tanneries with immediate effect who fail to obtain the consent from the Board by the said date. Such tanneries shall not be reopened unless the authority permits them to do so. It would be open to the authority to close such tanneries permanently or to direct their relocation.

10. The Government order No.213 dated March 30, 1989 shall be enforced forthwith. No new industry listed in Annexure-1 to the Notification shall be permitted to be set up within the prohibited area. The authority shall review the cases of all the industries which are already operating in the prohibited area and it would be open to authority to direct the relocation of any of such industries.

11. The standards stipulated by the Board regarding total dissolved solids (TDS) and approved by the NEERI shall be operative. All the tanneries and other industries in the State of Tamil Nadu shall comply with the said standards. The quality of ambient waters has to be maintained through the standards stipulated by the Board.”

8. In Paragraph 25 of the aforesaid judgment, this Court further observed as follows: “We have issued comprehensive directions for achieving the end result in this case. It is not necessary for this Court to monitor these matters any further. We are of the view that the Madras High Court would be in a better position to monitor these matters hereinafter. We, therefore, request the Chief Justice of the Madras High Court to constitute a Special Bench “Green Bench” to deal with this case and other environmental matters. We make it clear that it would be open to the Bench to pass any appropriate order/

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

orders keeping in view the directions issued by us. We may mention that “Green Benches” are already functioning in Calcutta, Madhya Pradesh and some other High Courts. We direct the Registry of this Court to send the records to the registry of the Madras High Court within one week. The High Court shall treat this matter as a petition under Art.226 of the Constitution of India and deal with it in accordance with law and also in terms of the directions issued by us. We give liberty to the parties to approach the High Court as and when necessary.”

(C) AFTERMATH OF VELLORE CITIZENS WELFARE FORUM JUDGMENT

9. On transfer, the case was re-numbered as W.P.No.13433 of 1996 and pursuant to the directions of this Court, the Loss of Ecology (Prevention and Payment of Compensation) Authority8 was constituted by the Government of India, vide its Notification in S.O.671 (E), dated 30.9.1996 with the Honourable Mr. Justice P. Bhaskaran, a retired Judge of the High Court, as its Chairperson, inter alia directing to assess the loss to the ecology/environment in the affected areas and also to identify the individuals/families who had suffered because of the pollution and determine the compensation payable to them.

10. By Award dated 07.03.2001, the LoEA identified 29,193 affected individuals /families and determined the compensation at Rs.26,82,02,328/- for the period from 12.08.1991 to 31.12.1998 in respect of 15,164.96 hectares across 186 villages in 7 Taluks of Vellore District. Further, it was made clear that the liability of the polluting industries to compensate the affected individuals/families would continue beyond 31.12.1998 until the damage caused to the ecology and environment by pollution is reversed.

11. Subsequently, the aforesaid award, particularly with reference to apportionment of compensation, was challenged by some of the aggrieved parties in W.P.No.512 of 2002; and the validity of the Notification dated 30.09.1996, appointing the LoEA was also challenged by the AISHTMA by filing W.P.No.7015 of 2000. The High

8 For short, “the LoEA”

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Court disposed of the said writ petitions by order dated 22.03.2002, the relevant portion of which reads as follows: “This matter relates to the polluters-paying the liability. Pursuant to the enquiries made by the authority, which has been constituted consequent to the judgment rendered by the Supreme Court in Vellore Citizens’ Welfare Forum Vs. Union of India (1996) 5 SCC 647, amounts have been determined, and this writ petition has been filed by the Association consisting of 334 tanners. Now, all the learned Senior Counsel appearing for the petitioner submit that they are not contesting the quantum fixed by the authority, but because of the financial strain, the entire amount cannot be deposited in lump sum. Facility to pay in installments is, therefore, pleaded. The Number of tanneries as stated above are 334, of which 151 tanneries are smaller ones. Likewise, there are other two categories also. Having regard to the plea made to facilitate the payment in installments and having regard to the facts and circumstances and also taking the welfare of the affected parties into consideration, as the challenge now ends, because of the acceptance of the persons manning tanneries to pay the amount as determined by the authority, the installments as fixed as follows: Tanners (151 in number) who are ordered to pay up to Rs.2 lakhs, have to pay the amount in a bi-monthly installments of Rs.21,22,672/- each. For the category, whose liability is between Rs.2 lakhs and Rs.20 lakhs (159 in number), the amount shall be payable in 12 bi-monthly installments of Rs.88,35,675/- each. The third category (24 in number), whose liability is over and above Rs.20 lakhs shall pay the amount in 18 bi-monthly installments of Rs.96,37,863/- each. The above schedule is effective from 1st April 2002 and the first of such payment shall be made on or before l0th April 2002, and every bi-monthly installment shall be made after two months thereof, for instance, on or before 10th June 2002, and so on. It is made clear that in default of payment of even one bi- monthly installment, the Collector shall be entitled to realize the balance amount in lump sum from the concerned

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

defaulters. It is needless to mention that this arrangement facilitating the payment in installments is in modification of the earlier order passed on 22.1.2002. The writ petition is disposed of accordingly.”

12. Thereafter, the Vellore Citizens Welfare Forum preferred WP No.23291 of 2006 for a mandamus directing the Ministry of Environment and Forest and the State of Tamil Nadu to make the LoEA a permanent body for the State of Tamil Nadu and to appoint a Managing Committee, Chairperson and members to the same. On 20.12.2007, when the said writ petition came up for hearing, the High Court passed the following order: “Learned counsel appearing for the Loss of Ecology Authority states that the Authority will consider all the applications filed before the cut-off-date, which are pending as well as the applications which are filed after the cut-off- date and decide them in accordance with law and grant compensation wherever the case is made out. Adj to 02.1.2008 to consider the report of the Loss of Ecology Authority relating to location of the hazardous units covered under G.O.Ms.No.213, dated 30.3.1989.”

13. In the meanwhile, alleging that no scheme has been implemented for the reversal of the damage caused to the ecology and environment and that no compensation has been paid for the period from 31.12.1998, the Vellore District Environment Monitoring Committee filed W.P.No.8335 of 2008 as a Public Interest Litigation. Along with the said writ petition, a Miscellaneous Petition in M.P.No.1 of 2008 was also filed praying to direct the LoEA to close down all industries that have not complied with the report and Award dated 07.03.2001, pending disposal of the writ petition. The High Court passed the following order, on 10.04.2008 in the said miscellaneous petition: “(i) The Authority shall make enquiries as to whether the polluters have complied with the condition after 1999 as per the award and fix the compensation payable within four months. (ii)The Authority shall assess the damage caused to the ecology since 1999.

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(iii)The Authority shall frame a scheme for reversal of the damage to ecology within eight weeks and issue the same to the District Collector, who is directed to implement the scheme. (iv)The District Collector shall recover the compensation as assessed by the earlier order from the polluters and pay the same to the affected parties and shall file a status report into this Court. The District Collector shall also strictly and expeditiously comply with the scheme framed and the directions of the Authority.”

14. Seeking to vacate the aforesaid order dated 10.04.2008 passed in MP.No.1 of 2008 in W.P.No.8335 of 2008, the AISHTMA filed M.P.No.2 of 2008, in which, the High Court inter alia directed the LoEA to hear the AISHTMA before proceeding with the exercise directed in the order dated 10.04.2008. The High Court further clarified that the said directions should not be construed by the LoEA as conclusive findings, but should be taken up only to enable it to hold / conduct an enquiry. Thereafter, upon issuing due notice to all the parties, the LoEA passed the order dated 05.05.2009 assessing the damage caused by the tanning industry to the ecology beyond 1998 in the Vellore District. Aggrieved by the same, the AISHTMA preferred WP.No.19017 of 2009 to quash the said order dated 05.05.2009.

15. Consequently, the LoEA passed the order and award dated 24.08.2009, determining a total sum of Rs.2,91,01,278/- as compensation payable to 1377 affected individuals by the same 547 polluters as identified in the original award dated 07.03.2001. Challenging the same, the AISHTMA preferred W.P.No.22683 of 2009 before the High Court.

16. After hearing all the parties, the High Court passed the common order on 08.02.2010 in WP.Nos.8335 of 2008 and 19017 of 2009 and the operative portion of the same reads as follows: “18. In view of the above stated reasons, we do not find any reason to entertain W.P.No.8335 of 2008 and therefore, the same is liable only to be dismissed. Accordingly, W.P.No.8335 of 2008 is dismissed and the consequential proceedings initiated and the order dated 5.5.2009 passed by the third respondent therein viz., the Loss of Ecology (Prevention & Payment of Compensation) Authority,

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

pursuant to the directions in the said writ petition, also stand quashed. In view of the dismissal of W.P.No.8335 of 2008, we do not propose to go into various other aspects argued on either side in respect of the other writ petition in W.P.No.19017 of 2009, since by the dismissal of W.P.No.8335 of 2008, the impugned order in W.P.No.19017 of 2009 is already held to be invalid. With this observation, W.P.No.19017 of 2009 stands disposed of….” By separate order dated 08.02.2010, WP No.22683 of 2009 filed by the AISHTMA came to be dismissed by the High Court, observing that there was no infirmity or illegality in the report and award passed by the LoEA on 24.08.2009.

17. Being dissatisfied with the orders dated 08.02.2010 so passed by the High Court, the appellants are before us with the present appeals.

IV. RECORD OF PROCEEDINGS AND AFFIDAVITS/REPORTS FILED BY THE RESPONDENT AUTHORITIES

18. These matters were listed before this Court right from 2010 and various directions have been passed from time to time and in compliance of the same, the authorities have filed affidavits/ reports then and there, to which, the contesting parties filed their respective replies. For effective adjudication of the issue involved herein, we may state the relevant orders and the affidavits / reports filed by the parties, which read as under: 18.1. Keeping in view the fact that the High Court had passed order as early as in 1998 for payment of compensation and the directions given by this court from time to time, this Court by order dated 20.02.20139, directed the State Government

9 We have heard Shri T. Mohan, learned counsel for the petitioner, Shri Gurukrishna Kumar, learned Additional Advocate Genera1 for the State of Tami1 Nadu and Shri Rajagopalan, learned senior advocate for the petitioners in the connected special leave petition. We have also perused supplementary affidavit dated 19.02.2013 of Shri P. Sankar, Collector, Vellore District, which reveals that a sum of Rs. 4.48 crores is still to be paid to the farmers. Keeping in view the fact that the High Court had passed order as early as in 1998 for payment of compensation and the directions given by this Court from time to time, we direct the State Government to pay the amount of Rs.4.48 crores to the farmers within a period of eight weeks from today. For consideration of other issues, the cases are adjourned to 17.04.2013. It is needless to say that the State Government shall be free to recover the amount from the defaulter tanneries.

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to pay the amount of Rs.4.48 crores to the farmers within a period of eight weeks and recover the same from the defaulting tanneries. 18.2. Pursuant to the order of this Court dated 20.02.2013, the Additional Chief Secretary to Government, Environment & Forest Department, Govt. of Tamil Nadu, in his supplementary affidavit dated 29.11.2013 stated that total compensation amount to be collected from the 547 tanneries as determined by the LoEA vide two awards (Rs.26.82 + Rs.2.91 crores) was 29.73 crores; the amount to be collected from the tanneries for reversal of ecology was Rs.3.66 crores; the total amount recovered as on 22.08.2013 was Rs.27.67 crores; and thus, there was a balance of Rs.5.72 crores, out of which, Rs.4.85 crores were recoverable from the polluting units; after taking earnest steps through the revenue machinery, Rs.1.13 crores were collected and 63 tanneries cleared their balance; and as a result, the remaining amount to be collected is Rs.3.72 crores. The affidavit further proceeds to state that out of 547 tanneries, 359 tanneries cleared their balance, 168 tanneries partially paid their dues and the amount due from 20 tanneries could not be collected in view of the court stay order, closure of tanneries running in the rented premises, bank attachments, and liquidation proceedings; however, the Tahsildars were instructed to invoke Revenue Recovery Act and take qualitative steps to identify the defaulters and collect the balance amount. It was also stated that in order to comply with the order dated 20.02.2013, the Government by G.O(Ms)No.57, Environment and Forests (EC.1) Department, dated 19.04.2013, sanctioned an advance sum of Rs.2.77 crores and disbursed the same along with sum of Rs.1.71 crores collected by the District Administration, to the affected farmers and that, the remaining amount of Rs.1.15 crores is available with the Divisional officers and the same would be disbursed as and when the issues are settled either through court of law or out of court. 18.3. This Court by order dated 05.08.2014, directed the TNPCB and its authorities to file an affidavit within a week giving the time frame by which they intended to stop the pollution of Palar River. Further, liberty was given to the TNPCB to take

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

10 It appears that second respondent - Tamil Nadu Pollution Control Board has given a clean chit to the tanning industries that they are not causing any pollution to the Palar River passing through the District of Vellore. It is not clear from the report whether there is any pollution in the Palar River /water bodies and its tributaries and if there is any pollution the resources through which the pollution is caused. Second respondent - Tamil Nadu Pollution Control Board is directed to make fresh inspection and file a status report along with copy of the inspection report about the pollution of the Palar River within four weeks. 11 Learned counsel for the respondent no. 2 The Tamil Nadu Pollution Control Board reported that no pollution is being caused by the leather and other industries situated nearer to Palar river in the district Vellore, Tamil Nadu. Learned counsel for the petitioner contended that there is still pollution in the river Palar. On the directions of the court, the Tamil Nadu Pollution Control Board-second respondent made inspection and submitted report with regard to stretches 1, 2, 3, 4, 5 and 6 of the river Palar. It is reported that there is no more pollution in river Palar within the stretches aforesaid at the instance of the industries. However, according to the learned counsel for the petitioner, there is still pollution in the river Palar due to which some of the persons recently get affected. In view of the contradictory stand taken by the parties, we are of the view that the report should be obtained from Central Pollution Control Board, New Delhi. We accordingly, implead Central Pollution Control Board through its Chairman, Parivesh Bhawan, CBD-cum-Office Complex, East Arjun Nagar, New Delhi-110032 as party respondent. Let notice be issued on the Central Pollution Control Board returnable in four weeks. Dasti, in addition, is permitted. On their appearance, the Court may direct them to make inspection of river Palar and the industries, municipalities and other sources discharging affluents in the river at various locations of the Vellore district and submit report, analysis along with maps. The State Pollution Control Board will cooperate the Central Pollution Control Board.

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Vellore District Environment Monitoring Committee Rep. by its Secretary Mr. R. Rajebdran v. The District Collector, Vellore District & Others

Urban Local Areas, However, the untreated sewage form the urban local areas are discharged majorly through 51 outfalls located along the River Palar; (vi)the urban local bodies have provided the Micro Compositing Centre (MCC) and Resource Recovery Centre (RRC) for handling and processing of day- today Municipal Sold Wastes generated in the urban local areas and carrying out “Bio Mining Process” to remove the legacy wastes. However, the Municipal Sold Wastes are dumped along the Palar River banks; (vii)Groundwater is suitable for various agricultural activities; and (viii)the yield of cereals such as Rice, Jowar (Cholam), Bajra (cumbu) and Ragi in the District of Ranipet, Vellore and Tirupathur are in the range of State Average Yield. 18.10. The report of CPCB stated that it has been filed based on the monitoring of Groundwater (infiltration wells) and Outfalls (drains)/surface water along the Palar River carried out by TNPCB from time to time and the pollution control measures adopted by Common Effluent Treatment Plants (CETPs) and Individual Effluent Treatment Plants (IETPs) of Tannery units collected from TNPCB. It was further stated in the said report that at present, there are 30 tannery units, out of which 10 units are closed either on its own or directions issued by CPCB and 20 units are operational and that all the 20 units have upgraded Individual Effluent Treatment Plants (IETPs) by installing Multiple Eject Evaporators (MEE) combined with Agitated Thin Film Dryers (ATFD) as part of their Zero Liquid Discharge (ZLD) systems, replacing earlier solar evaporation ponds. This upgradation in treatment system has enhanced salt recovery efficiency and optimized waste management processes. Regarding CETPs, the report states that presently, there are 434 tanneries connected to 8 CETPs and all 8 CETPs in the area have upgraded the ZLD system with improved salt recovery and sludge management and they have installed OCEMS and connected to CPCB and TNPCB servers. Regarding the groundwater (Infiltration Wells)/ monitoring well located along the Palar River, the report states that except for one location (Chakkaramallur in stretch 6), there is an increasing trend of COD concentration ranging from 8 to 296 mg/L; and TDS (2020 to 3552 mg/L) at 8 locations,

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Total Hardness (810 – 1200 mg/L) at 3 locations, Chloride (2275 mg/L) at one location and Alkalinity (910 mg/L) at one location, are not meeting permissible drinking water standards; and that, BOD concentration was found in the range of 2-8 mg/L at all locations of infiltration wells and similar trend was noticed in all the years (2021-2024). However, in monitoring well at Girisamudram, BOD was noticed to be ranging from 6 - 28 mg/L for the year 2023 -2024. That apart, the findings relating to outfalls (drains) in the River Palar are summarized in the report as under: (i)In most of the drains (outfalls) in Stretches 1, 2, 3 & 5, BOD (32.8 - 464 mg/L) and COD (263 -1848 mg/L) are exceeding the General Standards for discharge of Environmental Pollutants to inland surface water, and the concentration of Sulphide (4 - 115 mg/L) is observed higher as compared to 2015 monitoring results. (ii)At a few locations (Stretches 1, 2 & 3), the levels of Chloride (1150 - 2026 mg/L) is also observed higher as compared to 2015 monitoring results. (iii)BOD concentration at 20 outfalls are meeting the general discharge standard, as against 5 outfalls in 2015, which indicates there is a decrease in number of outfalls in which exceedance of BOD standard was reported in 2015. (iv)In the year 2015, TDS at 19 outfalls was ranging from 2104 – 7088 mg/L, but at present high TDS concentration (2156 – 4320 mg/L) found only in 9 outfalls. It indicates improvement in 27 outfalls in comparison with the year 2015. (v)The concentration of TDS at the outfall (inlet of lake) has decreased from 7088mg/L (2015) to 2874mg/L (present). Similarly, the concentration of TDS at the outfall (outlet of lake) has also decreased from 4044 mg/L (2015) to 3796mg/L (present). (vi)Higher Chloride concentration (1016- 1938mg/L) was found in 11 outfalls in the year 2015 and at present Chloride concentration is in the range of 1150 – 2026 mg/L in 04 outfalls only, indicating improvement in 32 outfalls.

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(vii) In comparison with 2015, COD concentration as well as exceedance in number of outfalls remains same. As far as sewage management is concerned, the report states that STP is constructed in two Municipalities i.e. Ambur & Ranipet and is being operated and thus, the untreated sewage directly joins River Patar from Vellore, Vaniyambadi, Melvisharam, Arcot & Walajahpet Municipal limits and treated sewage from Ambur & Ranipet towns.

V. CONTENTIONS OF THE PARTIES

VELLORE DIST. ENVIRONMENT MONITORING COMMITTEE / APPELLANT IN S.L.P.(C) NOS.23633-23634 OF 2010

19. According to the learned counsel, the compensation amounts fixed vide award dated 07.03.2001 by the LoEA were paltry, ranging from Rs. 1,000 per hectare per year (Rs. 83 per hectare per month) to Rs. 14,000 per hectare per year (Rs.1,167 per hectare per month). Furthermore, the measures to recover these amounts were also ineffective. When separate awards were passed for farmers who were left out in the initial assessment pursuant to the order of the High Court in WP No. 23291 of 2006, culminating in an award dated 24.08.2009, the LoEA chose to compensate the farmers from the interest accumulated and compensation deposited before it, as well as from the funds deposited for ecological restoration, instead of collecting the same from the identified errant industries. This resulted in one farmer being compensated from the amount rightfully due to another. Farmers continued to face the brunt of pollution, and received diminished if not nil returns from agricultural lands for decades. Moreover, compensation was frozen for the period upto 1999 and no fresh assessment of compensation for the period beyond 31.12.1998 was undertaken as the pollution continued unabated after that date.

20. It is also stated that the details of the persons affected, who had not received compensation either in part or full, were already available as part of the record in the award dated 07.03.2001. The District Collector was the authority disbursing compensation. The appellant had sought only a mandamus to the revenue authorities to collect the balance compensation amount still due from the identified industrial unit and distribute the same to the farmers identified by the LoEA.

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However, without properly appreciating the claim of the appellant, the High Court dismissed the writ petition filed by them.

21. The learned counsel further submitted that certain polluters were yet to make the necessary payments in accordance with the award dated 07.03.2001. In fact, the High Court in its order dated 30.10.2008 in MP No. 2 of 2008 in WP No. 8335 of 2008 had noticed this aspect and directed the District Collector to recover the award amount from defaulting members of AISHTMA within four weeks. This court vide order dated 20.02.2013, in SLP (C) Nos. 23633-23634 of 2010 directed the State Government to pay a sum of Rs 4.48 crores to the farmers and to recover the same from the default tanneries. But, till date, the compensation amount has not been paid to all the affected parties.

22. It is submitted that the LoEA in its award dated 07.03.2001 held that the liability to pay compensation continues beyond 31.12.1998 until the damage caused to ecology is reversed. In its subsequent award dated 24.08.2009, the LoEA determined compensation for the affected individuals / families who had not been included in the first award, holding that ‘Polluter Pays Principle’ clearly states that the polluter remains to be liable till the ecological damage caused by him is restored; and moreover, the polluter’s liability is an absolute liability. That apart, by quashing the order of the LoEA dated 05.05.2009, the High Court has denied an opportunity to effectively assess compensation beyond 1998.

23. The learned counsel stated that 14 years after the order came to be passed by the High Court, pollution caused by the industries continues unabated, and there has been no assessment of the liability of the industries beyond 31.12.1998 for the damages they have caused to ecology, citizens, farmers and their livelihoods. Therefore, it is contended that once the fact of continuing pollution is demonstrated, as a corollary, liability of polluters both for the closure of their illegal units, and payment of remediation and compensation to the affected persons continues; and that, the damage caused to the environment and ecology cannot be reversed as long as the pollution continues.

24. The observation of the High Court that the industries cannot be blamed for pollution on account of non-implementation of the scheme for reversal of ecology, despite the industries depositing Rs.5 crores, is unmindful of the fact that pollution is still continuing, and any

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meaningful scheme for reversal of ecology can be implemented only when the pollution ceases and hence, the same is unsustainable.

25. The learned counsel submitted that after thorough analysis, the LoEA constituted by the Central Government in terms of the judgment of this Court in Vellore Citizen Welfare Forum (supra), clearly found that pollution was still being caused by the tanneries and the level of pollution due to the discharge of effluents was exceeding permissible limits and the steps taken by the industries to install reverse osmosis plants were at the initial stage with no plant having become operational so far. Consequently, the LoEA passed the order dated 05.05.2009 fixing the liability on the industries to pay compensation to the affected families / individuals. Thus, the order passed by the LoEA based on specific evidence and the actual state of the pollution, cannot be faulted.

26. According to the learned counsel, the liability of the leather tanneries for the pollution caused by them did not cease in the year 1998 by merely paying the compensation amount. The polluting industries are liable to reverse the damage to the environment and ecology as long as the tanneries continue to pollute the environment on (a) polluter pays principle and (b) precautionary principle, both of which have been recognized by this Court. The industries, which are still polluting the environment, cannot absolve themselves of their liability, merely on the ground that some payment was made by them to the Government in terms of directions of this Court. In such circumstances, the order of dismissing the writ petition passed by the High Court stating that the claim lacks necessary particulars or details and is based on mere allegations, is arbitrary and illegal.

27. According to the learned counsel, in order to protect major water sources in the State, the Government of Tamil Nadu issued G.O.(Ms) No. 213 dated 30.03.1989, thereby imposing a total ban on the establishment of highly polluting industries within 1 kilometre of the embankment of water bodies. Highly polluted tanneries were listed in S.No.2 of Annexure-I and the River Palar was listed in S.No.5 of Annexure-II of the said G.O. Further, this Court in Vellore Citizens Welfare Forum (supra), at paragraph 25(10) pointed out that “The Government Order No. 213 dated March 30, 1989 shall be enforced forthwith and that, no new industry listed in Annexure-I to the Notification shall be permitted to be set up within the prohibited area. The authority

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shall review the case of all the industries which are already operating in the prohibited area and it would be open to authority to direct the relocation of any of such industries”. Subsequently, the Government issued G.O.(Ms).No.127 dated 08.05.1998 expanding the above G.O mandating that highly polluting industry (RED category) shall not be permitted within 5 kilometres from rivers Pennaiyar, Palar, Vaigai and Thamirabarani, and thereafter, passed G.O.(Ms).No.223 dated 02.09.1998 modifying the said G.O.(Ms)No.213 mandating that the industries specified in Annexure I of the same, should not be permitted within 5 kms from the embankment of the rivers Cauvery, Pennaiyar, Palar, and Vaigai. However, the State Government has neither prevented the establishment of new activities in the prohibited area nor has it directed the relocation of units that existed on the date of the G.O. In fact, all eight Common Effluent Treatment Plants (CETPs) and several tanneries are located within the prohibited distance from the river. As such, the siting of the industries is illegal and their proximity to the river has exacerbated the impact of the pollution caused. Hence, the operation of CETPs and Tanneries, without the mandatory consent of the Pollution Control Board under the Water (Prevention and Control of Pollution) Act, 1974, the Hazardous Wastes (Management, Handling and Transboundary Movement) Rules, 2008 (now the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016) and in violation of the aforementioned G.Os., must be stopped.

28. It is further submitted that despite the judgment of this Court in Vellore Citizen Welfare Forum (supra) as well as the High Court, the pollution caused by the tanneries continued. Eight CETPs (set up with Government assistance to treat effluent from multiple tanneries) and the Individual Effluent Treatment Plants (IETPs) (established by some tanneries to treat their own effluents) continue to discharge effluent into the environment, particularly, into the River Palar. Even the treated effluent fails to meet the standards prescribed by the TNPCB. Thus, Zero Liquid Discharge (ZLD) has not been achieved till date, and the effluent continues to pollute groundwater through discharge from various components of the effluent treatment system, in violation of the principle of sustainable development.

29. The learned counsel ultimately submitted that 28 years have lapsed since the judgment of this court in Vellore Citizens Welfare Forum (supra), where an opportunity was granted to the polluters to cease

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their illegal activities and operate without causing pollution. Crores of rupees of Government aid were sanctioned for the construction of CETPs, which were illegally sited in close proximity to the river, exacerbating the impact of pollution. The TNPCB, despite noticing violations and recording pollution, has failed to take any action for decades. Even the fact of the violation was not placed before this Court by the respondent authorities. Hence, no equities lie in favour of the CETPs and tanneries as they have profited at the cost of the environment and the thousands of farmers whose lives and livelihood has been destroyed.

30. With these submissions, the learned counsel prayed to set aside the order of the High Court dated 28.01.2010 passed in the writ petitions and consequently, direct the authorities concerned to close the CETPs and tanneries which have continued to discharge effluents and pollute the environment, without achieving ZLD and also assess and award compensation to the affected persons till the damage caused is reversed and the health of ecology is restored and further direct the TNPCB to prosecute the polluting units for violation of sections 24 and 25 of the Water (Prevention and Control of Pollution) Act, 1974.

AISHTMA / RESPONDENT NO.4 IN SLP (C)NO.23633 OF 2010 & RESPONDENT NO.3 IN SLP (C)NO.23634 OF 2010

31. It is submitted that Tanneries have fully paid the total amount of Rs.33.39 crores (Compensation amount of Rs.29.73 crores + Reversal of Ecology of Rs.3.66 crores) determined by the LoEA and the same has been disbursed by the concerned authorities and hence, no further amount is payable by the industries. However, without verifying this fact, the appellant after a period of 14 years, has alleged before this Court that a balance of Rs.15 crores is still payable by the AISHTMA. Even the Government of Tamil Nadu in its supplementary affidavit dated 29.11.2013, stated that after making the full payment as assessed by the LoEA, balance of Rs.1.15 crores is available with them and the same would be disbursed as and when the issues are settled either through court or out of court.

32. It is further submitted that the LoEA in its report titled “ Report & Award – Part II for Vellore District in Tamil Nadu on Reversal of Damaged Ecology” dated 27.09.2001 Annexure IV, recommended 7

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schemes to be implemented by the industries and 8 schemes to be implemented by the government, to prevent further damage to the environment. The LoEA directed the industries and the government to implement these schemes respectively. Accordingly, the industries have diligently adhered to the suggested recommendations and continues to do so in order to ensure a clean environment. As regards the other eight schemes, it is for the government authorities to implement the same, including the disposal of 150000 Tonnes of solid wastes containing about 3% sodium chromate dumped by the Tamil Nadu Chromates and Chemicals Industries, Ranipet.

33. It is submitted that the appellant in SLP (C) Nos.23633 -23634 of 2010 has approached the issue with a “tunnel vision” on the tannery industry, thereby ignoring all other industries and contributors to pollution in the river. Referring to the affidavit filed by the TNPCB, and the report of the CPCB, it is stated that one of the major contributors of pollution is untreated sewage and dumping of solid municipal wastes in the river and its surroundings. Placing reliance on the report of the CPCB, it is submitted that none of the Urban areas in Vellore District have sewage treatment plants and the entire untreated sewage is being let out either through the outfalls or drains eventually leading to the river. Further, in both the urban areas and villages throughout the district many outfalls carry the untreated sewage through organized Municipal Drainage Systems, thereby discharging the untreated sewage directly into the river. Moreover, it is not only the untreated sewage but the total solid wastes garbage generated in the towns are dumped in the river. Despite the responsibility of the municipalities to treat sewage, no steps have been taken, even though the LoEA has framed a scheme way back in 2001. Consequently, the untreated sewage continues to be released directly into the river.

34. It is also submitted that the River Palar, which once had a breadth of 2000 Ft. has been reduced to 200 Ft. in many areas due to encroachments on both banks. That apart, even sand mining is rampant in the district thereby causing irreparable damage to the river. It is reported that sand had been dug up to a depth of nearly 30 ft. As a result, groundwater which was once available at 200 ft, is now only found below 1000 ft. for water. It is further submitted that agriculture activities can easily be noticed in many areas of the river, thereby causing inorganics like fertilizers etc., to directly penetrate

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into water sources. Thus, there are many polluters other than the tannery industries that are causing pollution to the river.

35. Adding further, the learned counsel submitted that the leather industry plays a pivotal role in the Indian economy. With this, India has strong skilled manpower and innovative technology. The country has an eco- sustainable tanning base and modern manufacturing units. According to statistics, approximately 50 thousand workers are employed in the tanning industry and about 1.5 lakhs from the allied Industry & indirectly about 4 lakhs workers are employed across the Vellore district, including leather garment manufacturing, with the majority concentrated in towns like Ambur, Vaniyambadi, Ranipet, Visharam, and Pernambut. Further, the percentage of women in the leather industry in Vellore District, is considered to be high, with estimates suggesting that women make up a significant portion of the workforce, often exceeding 80%, which is due to the dominance of the footwear sector. Therefore, Tannery industry contributes significantly to the economy and employment in the region.

36. It is further submitted that this court, in Vellore Citizen Welfare Forum (supra), directed all Tanneries in 5 Districts of Tamil Nadu to set up Common Effluent Treatment Plants (CETPs) or Individual Effluent Treatment Plants (IETPs), and those connected with CETPs to install additional Pre-treatment Systems in the tanneries and further directed to obtain Consent of the Board to operate. During 1990’s, the Ministry of Environment & Forests (MoEF), Government of India, initiated an innovative financial support scheme for CETPs to ensure the growth of the small and medium entrepreneurs (SMEs) in an environmentally compatible manner. The Tanning Industry took up the responsibility and started setting up CETPs. By the end of 1995/1998, eight CETPs were set up in Vellore District apart from the Individual Treatment Plants (IETPs) set up by large industries for isolated tanneries which could not be connected to CETP. All the above CETPs and IETPs hence adopted the Best Available Technology (BAT) of the time as suggested, approved and monitored by the TNPCB. It is worth mentioning that no Tannery in Tamil Nadu was operating without a proper Treatment Plant from 1998. Further the funding from Government Agencies for the Up-gradation Projects in the CETPs were approved by the TNPCB.

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37. It is also submitted that this respondent entered into an MoU with NEERI (National Environmental Engineering Research Institute) and CLRI (Central Leather Research Institute) to provide technical guidance in meeting the discharge norms prescribed by the TNPCB. The industry in order to demonstrate its bona fide intentions towards establishment of sustainable ecology in their surroundings, voluntarily accepted to set up ZLD for tanneries, though the ZLD concept was not a statutory requirement. Under the ZLD System, pre-treated effluent from Member Tanneries is conveyed to the CETP and the entire effluents received from member tanneries are treated, water recovered are reused and not a drop of water is discharged from the CETPs thus achieving ZLD. Hence, ZLD System enables tanneries to recover and reuse water for their process thus minimizing the drawal of water from water bodies like wells etc.

38. According to the learned counsel, presently there are 8 CETPs to which 459 tanneries are connected and 26 IETPs in the erstwhile Vellore District, all of which have set up ZLD Plants that are successfully operating under the supervision of the TNPCB. The tanning industry in Tamil Nadu is the only sector in India that has implemented ZLD system, having made substantial investment of more than Rs.747.19 Crores for the establishment of the 8 CETPs with financial assistance from the Government of India and the Government of Tamil Nadu. Additionally, Rs.75 Crores has been invested for the establishment of 26 IETPs.

39. It is further submitted that the tanneries incur exorbitant operation and maintenance cost. The O & M cost of the ZLD system is substantial with the cost per cubic meter having increased nearly 10 times since the implementation of the ZLD system. Previously, the O&M cost under conventional treatment system was around Rs.50 - 80 per cubic meter, but with the new system, this cost has risen to approximately Rs.700 to 800 per cubic meter, with energy cost alone accounting for 50% of the total O&M expenses. That apart, the operation and maintenance cost of the CETPs is borne collectively by the members on a pro-rata basis based on the volume of effluent discharged by each member unit.

40. It is also submitted that TNPCB as per the directions of the CPCB has fixed certain parameters to be followed by the Member Units of the CETPs before discharging their effluent to their respective

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CETPs. The functioning of the CETP and IETPs are monitored online by both TNPCB & CPCB. The Electromagnetic Flow Meters and the IP Cameras are connected to the Water Quality Watch Centre of TNPCB and CPCB portal for online monitoring to ensure ZLD at all times. The CPCB continuously monitors online at the outlet of the CETPs. It is further submitted that TNPCB collects the effluent samples every month at various stages and result are shared with the CETP and directions are issued in case of variations in the parameters. Relying on the observation of the High Court in the order in W.P.No.8335 of 2009, it is thus submitted that steps have been taken to prevent pollution.

41. Regarding the Solid Waste Management System, it is submitted that the sludge generated from the treatment system as well as from the Pre-treatment system in Member tanneries is processed using mechanical dewatering system, such as, Filter Press, Screw Press and Centrifuges to reduce moisture content. The sludge having 40% of solids content and 60% of moisture are collected and stored in an impervious, covered roofed sludge storage shed. After drying it is then scientifically disposed of to Cement Industries for Co-processing in their Cement Kiln to convert it into utilizable product as per the Hazardous Waste Authorization issued to the CETPs/IETPs by the TNPCB.

42. It is submitted that as explained supra, the industry implemented, with the assistance and guidance of the premier leather research institute in the country viz; Central Leather Research Institute, scientific, eco-friendly measures in tanneries based on the “reduce, recycle and reuse” (3R) principle in the pre-process, in-process and end-of-pipe stages to reduce pollution load in the discharged effluent; voluntarily stopped using chemicals that do not pass ZDHC- Level 3 certification; converted conventional effluent treatment systems into Zero Liquid Discharge Effluent Treatment Systems using modern, state-of-the- art proven technology and disposes off hazardous solid waste to Pollution Control Board-certified pre-processors to be used in cement kiln industries thus ensuring that ecology is not harmed by the industry on account of its solid waste or liquid waste.

43. It is further submitted that the salt generated by the CETPs from its Multiple Effect Evaporator (MEE) Process are stored in an impervious Salt Storage shed as per the direction of the TNPCB. The CETPs have also prepared a Detailed Project Report (DPR)

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for purification of MEE salt for reuse in the Chlor-alkali industries as per the design of the CSIR-Central Salt and Marine Chemicals Research Institute (CSMCRI) Bhav Nagar, Gujarat and submitted the same to the Department for Promotion of Industry and Internal Trade (DPIIT), a Central Government Department under the Ministry of Commerce & Industry, Govt of India. The report is currently awaiting funding approval under the Indian Footwear and Leather Development Programme (IFLDP) – Sustainable Technology & Environmental Promotion (STEP) sub-scheme after being duly vetted by the CSIR -Central Leather Research Institute (CLRI). It is also submitted that the tannery industry in the erstwhile Vellore District (now trifurcated into three districts) has already paid the compensation as stipulated by the LoEA and implemented all the directions issued by the LoEA, thus completely arresting discharge of treated effluent onto land or into the river.

44. With these submissions, the learned counsel sought to dismiss the appeals filed by the appellant / Vellore District Environment Monitoring Committee.

AISHTMA / APPELLANT IN SLP(C) NO.26608 OF 2011

45. It is submitted that pursuant to the direction of the High Court, a detailed, comprehensive and scientific enquiry was conducted which culminated into an award dated 07.03.2001 to identify the pollution affected individuals or families in the entire Vellore District for the period 1991-1998. The said award has already been duly complied with by the AISHTMA which deposited the pollution fine levied under the said award on individual tanners and has paid the pollution compensation amounts for the affected persons as well as for ecological restoration and reversal schemes. This was done, despite the fact that hundreds of crores of rupees had already been spent by the tanning industry in adopting the latest and most modern pollution controlling techniques.

46. It is further submitted that the LoEA admitted in the award dated 07.03.2001 that it identified 186 villages in 7 taluks of the entire Vellore District as pollution affected ones for the period 1991-1998 with 29,193 individuals or families as beneficiaries to receive pollution compensation from the AISHTMA and therefore, the question of re-conducting this exercise after a gap of 10 years to consider the left-over cases is unsustainable.

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47. It is further submitted that the LoEA illegally empowered itself to re- conduct the entire exercise for the so-called left-over cases which ultimately culminated into an Award dated 24.08.2009. This award was based on the interim order dated 20.12.2007 passed by another bench of the High Court in WP(C) No.23291 of 2006 filed by the Vellore Consumer Forum. In the said interim order, the High Court merely recorded the submission of the Counsel for the LoEA to the effect that the LoEA will consider all the applications filed before the cut-off date which are pending as well as the applications that are filed after the cut-off date and decide them in accordance with law and grant compensation wherever the case is made out. Thus, there was no direction to the LoEA by the High Court to consider the left-over cases and the LoEA misused the directions of the High Court in its attempt to make the tanning industry represented by the AISHTMA as a scapegoat to hide its own wrongful omissions and commissions. Further, in the aforesaid writ petition, neither the appellant nor any other affected tanning industry was made a party and the said writ petition is still pending for final disposal.

48. According to the learned counsel, the report and the award dated 24.08.2009 passed by the LoEA thereby awarding compensation to the tune of Rs. 2.91 Crores to 1382 affected individuals is without jurisdiction, and even if assuming without conceding these to be within jurisdiction, there was violation of the principles of natural justice as the compensation demanded through claim notices were sent to individual tanneries by the LoEA even before passing of the award on 24.08.2009.

49. It is further submitted that the arguments/objections made by the AISHTMA before the LoEA were not considered in the Award dated 24.08.2009 and was rather summarily rejected. That apart, the findings of the LoEA are not only vague but also bereft of any reliable evidence and is based only on conjectures and surmises.

50. It is further stated that post 2003 the AISHTMA and other tanning industries have more capably adhered to the charter on Corporate Responsibility for Environmental Protection (CREP) carved out by the Central Pollution Control Board in the year 2003 for the tanning sector across India, which is very much evident from the implementation status report as on January, 2005 of the Task Force constituted by the Central Pollution Control Board for

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overseeing its CREP recommendations. Even upon considering a presumptuous eventuality that the LoEA has powers to identify the affected individuals through its Award dated 24.08.2009 belatedly and retrospectively for the period 1991-1998; even then also the principle of equity demands that the amount of compensation should be disbursed to the left-over affected persons, etc. from the amount already deposited years ago by the appellant herein under the Award dated 07.03.2001, without mentioning the interest part accrued on such heavy amounts to the tune of many crores. Therefore, no fresh liability should be fastened on the appellant because no relevant material evidence has been adduced by the LoEA that there is a damage to the ecology after 1999 and moreover, once the tanning industry has always fulfilled its part of the liability to bring down pollution levels. Thus, it should not be held liable for wrongful omissions and commissions of others, especially LoEA and the concerned State Govt which were entirely responsible for initiation of timely and expeditious implementation of ecological reversal schemes and programmes.

51. Without considering all these aspects, the High Court erred in dismissing the writ petition filed by AISHTMA by the order impugned herein, which will have to be set aside by this Court.

RESPONDENT NOS.3 & 4 IN SLP (C) NO.26608 OF 2011

52. At the outset, it is submitted that the appellant / AISHTMA is the fourth respondent in SLP (C)Nos.22633-22634 of 2010 and has been actively contesting the same by filing counter affidavits, etc. However, as a counter blast, they preferred this appeal, which was registered as SLP(C)No.26608 of 2011, without there being any order to condone the delay of 439 days in filing the same.

53. It is further submitted that at the instance of the AISHTMA, the award dated 07.03.2001 passed by the LoEA was challenged in W.P.No.512 of 2002, which by order dated 22.03.2002, was disposed of by the High Court, by permitting the tanneries to deposit the compensation determined in instalments. However, the award of the LoEA was affirmed by the High Court and the same reached finality. Hence, the liability of the industries to pay compensation for the environmental damage caused by them is no longer res integra and has been accepted by the appellant AISHTMA.

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54. As far as the award dated 24.08.2009 passed by the LoEA is concerned, the learned counsel submitted that it was only in respect of those who were left out of the earlier award dated 07.03.2001. It pertains to the very same area, following the same methodology, based on inspections conducted by the LoEA and was issued after issuance of notices to the AISHTMA and tanneries. Therefore, the AISHTMA cannot proceed to challenge the very basis of their liability to pay compensation, as these issues have been conclusively decided by this Court in Vellore Citizens Welfare Forum (supra).

55. It is submitted that the AISHTMA attempts to conflate two awards of the Authority, which according to the Respondent Nos.3 and 4, are distinct. Vide award dated 24.08.2009 which was impugned in W.P No. 22638 of 2009, the LoEA dealt with the left-out cases for the period from 12.08.1991 to 31.12.1998. Whereas, the LoEA passed an order dated 05.05.2009 based on the orders in M.P. No. 1 of 2008 in W.P. No. 8335 of 2008, subsequently modified by the High Court in M.P. No. 2 of 2008 in W.P. No. 8335 of 2008, which dealt with liability of the polluters to pay compensation for the period 1999-2008. Thus, both the awards/orders of the authority are distinct.

56. Adding further, it is submitted that paragraph 3.1 of the award of the LoEA dated 24.08.2009 indicates that on scrutiny, out of the 7,937 claims received, 515 were found to be duplicates and the remaining 7,422 claims were processed and intimation of the steps taken by the authority was sent to the AISHTMA. Also, paragraph 4 of the Award proceeds to state that for the 7,422 claims, from the same 7 Taluks covered in the earlier award, once again, field surveys were fixed with advance intimation to the AISHTMA. However, it appears that representatives of the AISHTMA did not participate in the field surveys which were conducted in the presence of revenue officials and water samples were collected from wells to ascertain TDS, based on which the compensation was to be calculated. The LoEA used an extremely conservative yardstick to determine compensation payable per hectare, i.e., a farmer whose livelihood is destroyed by contamination of their water source, rendering the land fallow and uncultivable, was provided a meager sum ranging from Rs.1,000/- a year to Rs.14,000/- a year (Rs.83/- a month to Rs.1,166/- a month per hectare per year

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was quantified). This meager compensation was also computed and awarded only for the period from 12.08.1991 to 31.12.1998. If pollution has stopped and the ecology has recovered, then further compensation is not required. Whereas, it is evident from the reports of the TNPCB and the audit of the CPCB, none of the units have achieved Zero Liquid Discharge, and the pollution continues unabated. It is therefore just and necessary that the compensation be paid to the affected parties till the damage is reversed and the ecology recovers.

57. Therefore, it is submitted that the High Court has correctly dismissed the writ petition, after having held that the award impugned in the writ petition, cannot be termed as a fresh award and that it is a continuation of the earlier award of the year 2001, as it concerns the left-out cases. The High Court rightly placed reliance on the polluter pays principle to hold that the liability continues till the ecological damage caused by the polluter is restored and the liability is an absolute liability. Therefore, the High Court, in line with the judgement in Vellore Citizens Welfare Forum held that the polluters ought to be liable for payment of compensation until the pollution ceases and the ecological damage is restored, and that the compensation paid cannot be considered as one-time payment.

58. According to the Respondent Nos.3 and 4, the present attempt of the AISTHMA is to frustrate poor and marginal farmers who have suffered the fallout of the pollution caused by tanneries, who have profited and prospered by polluting the environment and these entities have saved money by not treating the effluent. Thus, according to the learned counsel, the order of the High Court does not require any interference by this Court.

SUBMISSIONS OF THE RESPONDENT AUTHORITIES

59. Reiterating the contents made in the reports submitted by them, pursuant to the order of this court dated 19.11.2024 regarding the current state of pollution in the Vellore District, the learned counsel for the TNPCB and CPCB have made their respective submissions. They have also submitted that the authorities are intending to comply with any directions / orders, that may be passed by this Court, to sub-serve the interests of justice.

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VI. ANALYSIS

(A) BASIC PRINCIPLES

60. At the outset, it is imperative to establish the three foundational principles viz., (i) Doctrine of Public Trust, (ii) Principle of Sustainable Development, and (iii) Right to healthy environment, that must guide the consideration of other aspects in this case.

PUBLIC TRUST DOCTRINE

61. The Doctrine of Public Trust asserts that vital natural resources such as rivers, seashores, forests, and air are held in trust by the State for the benefit and enjoyment of the public. Rooted in Roman law, which classified these resources as common property (res communis) or unowned (res nullius), and refined by English common law, this doctrine places a fiduciary duty on governments to protect them from privatization or exploitation that compromises public interests. It imposes three key restrictions viz., (a)resources must remain accessible for public use, (b)cannot be sold for private gain, and (c) must be preserved in their natural state. Courts internationally, have extended its scope to protect wetlands, riparian forests, and ecologically fragile lands, emphasizing the need for environmental preservation in light of modern ecological challenges. This evolving interpretation reflects the doctrine’s relevance in maintaining the balance between sustainable development and environmental conservation. In M.C. Mehta v. Kamal Nath12, this court elucidated the doctrine of public trust as follows: “24. The ancient Roman Empire developed a legal theory known as the “Doctrine of the Public Trust”. It was founded on the ideas that certain common properties such as rivers, seashore, forests and the air were held by the Government in trusteeship for the free and unimpeded use of the general public. Our contemporary concern about “the environment” bears a very close conceptual relationship to this legal doctrine. Under the Roman law these resources were either owned by no one (res nullious) or by everyone in common (res communious).

12 (1997) 1 SCC 388

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Under the English common law, however, the Sovereign could own these resources but the ownership was limited in nature, the Crown could not grant these properties to private owners if the effect was to interfere with the public interests in navigation or fishing. Resources that were suitable for these uses were deemed to be held in trust by the Crown for the benefit of the public. Joseph L. Sax, Professor of Law, University of Michigan — proponent of the Modern Public Trust Doctrine — in an erudite article “Public Trust Doctrine in Natural Resource Law: Effective Judicial Intervention”, Michigan Law Review, Vol. 68, Part 1 p. 473, has given the historical background of the public trust doctrine as under: ‘The source of modern public trust law is found in a concept that received much attention in Roman and English law — the nature of property rights in rivers, the sea, and the seashore. That history has been given considerable attention in the legal literature, need not be repeated in detail here. But two points should be emphasised. First, certain interests, such as navigation and fishing, were sought to be preserved for the benefit of the public; accordingly, property used for those purposes was distinguished from general public property which the sovereign could routinely grant to private owners. Second, while it was understood that in certain common properties — such as the seashore, highways, and running water — “perpetual use was dedicated to the public”, it has never been clear whether the public had an enforceable right to prevent infringement of those interests. Although the State apparently did protect public uses, no evidence is available that public rights could be legally asserted against a recalcitrant government.’

25. The public trust doctrine primarily rests on the principle that certain resources like air, sea, waters, and the forests have such a great importance to the people as a whole that it would be wholly unjustified to make them a subject of private ownership. The said resources being a gift of nature, they should be made freely available to everyone irrespective of the status in life. The doctrine enjoins upon

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the Government to protect the resources for the enjoyment of the general public rather than to permit their use for private ownership or commercial purposes. According to Professor Sax the public trust doctrine imposes the following restrictions on governmental authority: “Three types of restrictions on governmental authority are often though to be imposed by the public trust: first, the property subject to the trust must not only be used for a public purpose, but it must be held available for use by the general public; second, the property may not be sold, even for a fair cash equivalent; and third property must be maintained in particular types of uses”.

62. Further, in Vedanta Limited v. State of Tamil Nadu13, it was observed by this Court as follows: “25. In addition, the public trust doctrine, recognized in various jurisdictions, including India, establishes that the state holds natural resources in trust for the benefit of the public. It reinforces the idea that the State must act as a steward of the environment, ensuring that the common resources necessary for the well-being of the populace are protected against exploitation or degradation. These principles underscore the importance of balancing economic interests with environmental and public welfare concerns. While the industry has played a role in economic growth, the health and welfare of the residents of the area is a matter of utmost concern. In the ultimate analysis, the State Government is responsible for preserving and protecting their concerns.”

SUSTAINABLE DEVELOPMENT

63. The doctrine of sustainable development was evolved to strike a balance between economic advancement and environmental safeguards. It envisions development that can be sustained by nature / environment. While the advancement of industries and infrastructure is indispensable for fostering employment and generating revenue,

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