The Supreme Court’s decision to stay the NGT’s directive and question its jurisdiction in the Waris Chemicals case carries significant implications for the intersection of environmental regulations and money laundering laws. The court’s observation that the NGT lacks the authority to invoke the PMLA in environmental cases is likely to shape future legal interpretations and clarify the boundaries of jurisdiction for tribunals.
NEW DELHI: Today (May 13): The Supreme Court, upon reviewing the case, expressed its prima facie disapproval of the NGT’s directive. The court observed that the NGT lacked the authority to take action under the PMLA against the appellant company.
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Consequently, the court stayed the NGT’s directive and the relevant clauses of its order. Justices Abhay S. Oka and Ujjal Bhuyan questioned the inclusion of environmental offenses under the PMLA and concluded that the NGT overstepped its authority. The Tribunal had also imposed a fine of more than ₹25 crore on the company.
“On prima facie, we find that the NGT lacked jurisdiction to issue a directive to commence action under the Prevention of Money Laundering Act, 2002, against the appellant. Therefore, we hereby suspend the directive stated in paragraph 230 of the challenged order. Additionally, we suspend clause (I) of paragraph 232 of the same order,” the Court noted.
The appellant, represented by Advocate-on-Record Subhro Prokas Mukherjee and a team of advocates, challenged the NGT’s decision before the Supreme Court. They argued that the NGT’s interpretation of the PMLA was incorrect and that the tribunal had exceeded its jurisdiction by invoking the PMLA in an environmental case. The appellant contended that the NGT’s order had serious implications for the company and sought relief from the apex court.
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Background:
The case revolves around the imposition of a fine of over Rs 46 crore on Waris Chemicals Private Limited by the Uttar Pradesh Pollution Control Board, Kanpur Dehat (UPPCB). The company was accused of dumping hazardous waste containing chromium in a hamlet, thereby violating environmental regulations. Dissatisfied with the UPPCB’s decision, the company appealed to the NGT, which not only upheld the fine but also invoked the PMLA, arguing that environmental offenses fell within the purview of the PMLA.
Case Title: Waris Chemicals Private Limited v. Uttar Pradesh Pollution Control Board
