A petition in the Supreme Court challenges key provisions of the SHANTI Act, 2025, alleging it weakens supplier liability in case of nuclear accidents. The Court said it will first study the regulatory framework before hearing detailed arguments.
New Delhi: The Supreme Court of India on Friday said it will first carefully study the records before hearing a petition that challenges important provisions of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (SHANTI Act), a new law that allows private companies to participate in India’s nuclear energy sector and changes the liability rules in case of nuclear accidents.
The matter was listed before a Bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi. During the brief hearing, the judges indicated that they would like to go through the complete case file and understand the legal and regulatory framework in detail before proceeding further with arguments.
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The petition has been filed under Article 32 of the Constitution by former civil servant EAS Sarma. It challenges multiple provisions of the SHANTI Act, 2025, including Sections 11, 12, 13, 14, 16, 17, 19, 39, 44, 67, 81 and 87. The petitioner argues that these provisions weaken the liability framework and dilute safeguards in the nuclear energy sector.
While addressing the matter, the Chief Justice observed,
“Let us see the regulatory and precautionary measures. Let us not create a scene that anyone before coming to the country thinks whether or not to,”
indicating that the Court does not want unnecessary panic or adverse international perception before fully understanding the safeguards under the new law.
Justice Bagchi also remarked,
“Now we are in a global village. The regulatory regimes have to be comparable now,”
underlining that India’s nuclear regulatory structure must align with international standards and practices.
The Bench clarified that the case will be taken up at a later stage after the judges complete their initial study of the files.
The petition strongly objects to the new liability framework introduced under the SHANTI Act. It states that the law caps the liability of nuclear operators at the rupee equivalent of 300 million Special Drawing Rights (SDRs). It further claims that the Act exempts equipment suppliers from liability in case of an accident.
According to the petitioner, this is a major departure from the earlier legal position under the Civil Liability for Nuclear Damage Act, 2010, which allowed the operator to recover compensation from suppliers under certain conditions.
Relying on the landmark judgment in M.C. Mehta v. Union of India, also known as the Shriram-Oleum Gas Leak case, the petition argues that nuclear energy activities are inherently dangerous and fall within the category of hazardous industries. The plea contends that reducing or removing supplier liability goes against the principle of absolute liability laid down by the Supreme Court for hazardous activities.
The petition also raises serious concerns about the independence of the Atomic Energy Regulatory Board (AERB). It argues that the provisions dealing with the appointment and removal of AERB members keep the regulator under the effective control of the executive.
According to the petitioner, this compromises regulatory independence. The plea refers to India’s commitments under the Convention on Nuclear Safety and argues that there must be a clear and effective separation between the nuclear operator and the regulator.
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Among the reliefs sought, the petitioner has asked the Court to strike down the challenged provisions of the SHANTI Act. It has also sought a direction to impose joint and several liability on both operators and suppliers in case of nuclear accidents. Further, the petition demands the creation of an independent mechanism for appointing and removing AERB members to ensure autonomy from executive influence.
Additionally, the plea requests the Court to restrain any further expansion of nuclear projects involving private participation until an autonomous and independent regulatory body is established.
Senior Advocate Prashant Bhushan appeared for the petitioner and advanced the submissions before the Court.
The matter is now expected to be listed for detailed hearing after the Bench completes its review of the case material and statutory framework.
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