Fine for environment law violation can't be based on company's revenue: Supreme Court slams NGT

The Supreme Court criticized the National Green Tribunal (NGT) for basing environmental fines on company revenues, deeming it an arbitrary metric. The matter involved imposing a fine on an organization for violations. The Court emphasized that penalties should be proportionate to the gravity of the violation and not influenced by the company’s financial standing. This judgment aims to ensure fairness in regulatory enforcement and prevent exploitative practices against corporate entities. The ruling reiterates that environmental accountability must be grounded in the extent of environmental harm rather than monetary assessments of a company’s resources. It serves as a warning for tribunals to adopt consistent and legally justified approaches while imposing punitive fines, thereby ensuring balance in environmental jurisprudence.