The National Green Tribunal (NGT) criticized the Enforcement Directorate (ED) for its inaction, stating that it encourages the violation of environmental laws. The NGT observed that despite the expansion of the Prevention of Money Laundering Act (PMLA) in 2012, the ED has failed to take action against violators of environmental statutes, leading to continued impunity among polluters. The NGT emphasized that revenue generated from environmental crimes qualifies as ‘proceeds of crime’ under the PMLA.
NEW DELHI: On Wednesday (24th April): The National Green Tribunal (NGT) criticized the Enforcement Directorate (ED) for its inaction in addressing violations of environmental statutes included in the Schedule of the Prevention of Money Laundering Act (PMLA). The NGT stated that the ED’s failure to take action against environmental offenders has emboldened polluters to continue violating environmental laws without facing any consequences.
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The tribunal emphasized that the scope of the PMLA was expanded after the 2012 amendment, and it is imperative for competent authorities to enforce the act against violators of environmental regulations.
The NGT, comprising Chairperson Justice Prakash Shrivastava, judicial member Justice Sudhir Agarwal, and expert member Dr. A Senthil Vel, expressed concern over the narrow focus of the ED’s actions under the PMLA, failing to recognize the broader scope of the amended act. Despite more than a decade having passed since the amendment, the ED has not taken any action against violators of environmental statutes included in Schedule A of the PMLA.
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“The Enforcement Directorate has failed to acknowledge the significant expansion of PMLA 2002, particularly after the amendment Act of 2012, effective February 15, 2013. Despite over eleven years passing since the amendment, no action has been taken against violators of environmental statutes included in the Schedule, Part A of PMLA 2002,” the National Green Tribunal (NGT) remarked.
The NGT emphasized that while offenses under environmental statutes are non-cognizable, they are considered cognizable under PMLA.
“While offenses under Environmental Acts are non-cognizable, they become cognizable under PMLA 2002. The failure of the Competent Authority to take action against environmental violators, despite their offenses being included in PMLA 2002, has emboldened polluters to continue violating environmental regulations without fear of repercussions,” the NGT elaborated.
The NGT pointed out that while offenses under environmental acts are non-cognizable, they fall under the cognizable category under the PMLA. The Tribunal emphasized that the ED’s lack of action against environmental offenders, despite their offenses falling within the purview of the PMLA, has encouraged polluters to continue violating environmental laws without fear of prosecution.
The recent judgment by the NGT involved two separate applications filed by individuals seeking remedial action against sewage discharge into the Yamuna River in Mathura-Vrindavan and Agra, Uttar Pradesh. The Tribunal found that a substantial amount of untreated sewage was being directly discharged into the river due to a lack of treatment plants in both locations. The NGT noted that repeated opportunities given to authorities to prevent pollution of the Yamuna River had been unsuccessful.
Based on the principle of “polluter pays,” the NGT determined that the violators were liable to pay environmental compensation. It used a formula to calculate the compensation, taking into account the quantity of polluting material discharged, the duration of the violation, and a nominal value. As a result, compensation amounts of approximately Rs 58.4 crore and Rs 7.2 crore were imposed on Agra and Mathura-Vrindavan, respectively.
The NGT highlighted that the failure to adhere to environmental regulations led to the commission of scheduled offenses, and the revenue generated from such unlawful activities qualifies as ‘proceeds of crime’ under the PMLA.
“Recording such revenue in accounts implies presenting or asserting it as clean and legitimate property,” the NGT commented.
The NGT directed that the environmental compensation be utilized for the remediation, rejuvenation, and restoration of the environment in the affected regions. A joint committee comprising the Central Pollution Control Board (CPCB), the Uttar Pradesh Pollution Control Board (UPPCB), and relevant district magistrates will prepare a rejuvenation plan. Additionally, the UPPCB was instructed to take punitive action under the Water Act, River Ganga Order 2016, and the Environment Protection Act.
Case Title: Sanjay Kulshresthra and Anr. v Government of Uttar Pradesh and Ors.
