Supreme Court Overturns NGT's Rs 50-Crore Penalty on Handicraft Exporter

The Supreme Court overturned a National Green Tribunal (NGT) order, imposing a Rs 50-crore penalty on Moradabad-based CL Gupta Export Ltd for environmental violations. The court criticized the NGT's penalty method and emphasized the need for a legal foundation in environmental adjudications. The NGT was urged to act within its legal powers.

The Supreme Court of India has overturned a National Green Tribunal (NGT) decision that imposed a hefty Rs 50-crore fine on Moradabad-based exporter, CL Gupta Export Ltd, for breaches of environmental laws.

In a landmark August 22 verdict, the bench led by Chief Justice B R Gavai criticized the methodology behind the penalty, emphasizing that penalties should be legally grounded, not based solely on a company's turnover. The court underscored the importance of judicious decision-making over mere rhetoric.

The Supreme Court also cautioned the NGT to operate within the boundaries of its authority under Section 15 of the NGT Act 2010, effectively setting aside an associated money laundering investigation against the exporter.

(With inputs from agencies.)