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Smart Summary

Factual and Procedural Background

This opinion concerns remedial action against falling groundwater levels in India. The matter originated from a news report titled “Falling Groundwater Level Threatens City” published in the Indian Express on 18.03.1996, prompting the Hon'ble Supreme Court to issue notices to various governmental bodies including the Central Groundwater Board (CGWB) and Delhi agencies. Suggestions were sought from NEERI and the Ministry of Water Resources (MoWR), which acknowledged the problem and prepared a Model Bill for groundwater regulation.

The Supreme Court directed the constitution of an authority under Section 3(3) of the Environment (Protection) Act, 1986 (EP Act), conferring it powers to regulate groundwater management. Despite these directions, over 23 years later, groundwater depletion worsened, and the Central Ground Water Authority (CGWA) showed reluctance to assume responsibility, citing lack of infrastructure and state jurisdiction. Numerous petitions were filed before this Tribunal highlighting illegal groundwater extraction in areas such as NOIDA and Greater NOIDA, with regulatory authorities directed to take action including prosecution and compensation under the ‘Polluter Pays’ principle.

The Tribunal reviewed multiple orders and reports, noted the worsening groundwater situation across various regions, and found the 2018 Notification issued by the MoWR to have liberalized groundwater extraction contrary to conservation principles. The Tribunal also examined reports from the MoEF&CC and CPCB, identifying deficiencies in enforcement mechanisms and recommending further remedial measures and the constitution of a Committee to address groundwater depletion and regulation.

Legal Issues Presented

  1. Whether the Central Ground Water Authority can be constituted and empowered under the Environment (Protection) Act, 1986, to regulate and control groundwater extraction across India.
  2. Whether the 2018 Notification by the Ministry of Water Resources, liberalizing groundwater extraction, is sustainable in law considering principles of sustainable development, precautionary principle, and intergenerational equity.
  3. What mechanisms and regulatory frameworks are necessary to effectively monitor, regulate, and prevent illegal or unsustainable groundwater extraction, particularly in Over-Exploited, Critical, and Semi-Critical (OCS) areas.
  4. What remedial actions, including penalties and compensation, should be imposed on violators of groundwater extraction norms under environmental laws.
  5. Whether there is a need for a robust institutional mechanism and expert Committee to formulate policies and oversee groundwater conservation and management.

Arguments of the Parties

The opinion does not contain a detailed account of the parties' legal arguments.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The Tribunal traced the evolution of groundwater regulation from the Supreme Court’s 1997 directions mandating the constitution of a regulatory authority under the Environment (Protection) Act, 1986. It recognized groundwater as a critical natural resource requiring legal intervention based on sustainability principles such as inter- and intra-generational equity and the precautionary principle.

The Tribunal analyzed the failure of the CGWA to effectively regulate groundwater extraction, noting its repeated disclaimers of responsibility and inadequate enforcement of conditions attached to groundwater extraction permits. The 2018 Notification was scrutinized and found to be contrary to the conservation mandate, as it effectively deregulated groundwater extraction in OCS areas and lacked meaningful monitoring or punitive mechanisms.

Statistical data and reports from the MoEF&CC and CPCB were reviewed, revealing alarming groundwater depletion trends, insufficient regulatory frameworks in many states, and the need for a comprehensive, enforceable policy. The Tribunal emphasized that mere conditions of recharge without enforcement are ineffective safeguards.

Recognizing these deficiencies, the Tribunal directed the constitution of a multi-agency expert Committee to recommend concrete steps for prevention of groundwater depletion, robust monitoring mechanisms, review of the CGWA’s functioning, and implementation of CPCB’s recommendations on environmental compensation and regulatory action.

Holding and Implications

The Tribunal held that the Notification dated 12.12.2018 is unsustainable in law and must not be given effect to due to serious shortcomings that threaten groundwater conservation and the fundamental right to life under Article 21 of the Constitution.

The Tribunal directed that the regulatory authorities act on the CPCB’s interim report to recover environmental compensation from violators and take penal action as appropriate. It constituted an expert Committee with representatives from relevant ministries, scientific institutions, and regulatory bodies to formulate a robust groundwater conservation and regulatory framework, including enforcement and monitoring mechanisms.

The direct effect of this decision is to restrain liberal groundwater extraction practices and strengthen regulatory oversight. No new precedent was set beyond affirming the applicability of established environmental principles and the Supreme Court’s earlier directions. The order underscores the urgent need for institutional reform and coordinated action to address the groundwater crisis in India.

    Shailesh Singh v. Hotel Holiday Regency

    1. Remedial action against falling groundwater levels in the country is the subject matter of consideration before this Tribunal. Taking cognizance of news item under the caption “Falling Groundwater Level Threatens City”, appearing in the Indian Express of 18.03.1996, the Hon'ble Supreme Court issued notice to the Central Groundwater Body and DPCC, Municipal Corporation of Delhi and Delhi Waterworks and Sewerage Disposal Undertaking (now DJB). (1997) 11 SCC 312 Suggestions were sought from NEERI and thereafter from Ministry of Water Resource. The MoWR acknowledged the problem and stated that a Model Bill has been prepared to regulate and control the development of groundwater in their respective areas.

    2. The Hon'ble Supreme Court thereafter observed that an authority needs to be constituted under Section 3(3) of the Environment (Protection) Act, 1986 (EP Act). It was also observed that in view of Entry 13 List I of Schedule VII read with Article 253 of the Constitution of India, the EP Act has overriding effect. As regards the plea that CGWB could not undertake additional burden, it was observed:

    “5………………………. It is stated that the regulation and control of groundwater is the responsibility of the State Government, as water is a State subject. Keeping the present organisational status of the Board, it is stated that the Board will have to be expanded and strengthened adequately to enable it to discharge its added responsibilities. The exact infrastructure for this purpose will have to be worked out. The affidavit further states that the Central Groundwater Board will collaborate and coordinate with the State authorities in the regulation and control of groundwater development.

    6. Management of water resources to achieve overall aspirational goal of sustainable development warrants legal interventions based on the principles of inter and intra-generational equity, the precautionary principle, conservation of natural resources and environmental protection. There is thus adequate reason to take recourse to the Sections 3, 4 and 5 of the Environment (Protection) Act, 1986 for implementing holological approach to water resources management.

    In order to address the complex issues in water resource management it is prudent that the Central Government considers constituting an authority under the Environment (Protection) Act, 1986 and confers on this authority all the powers necessary to deal with the situation created by the depletion of groundwater levels, dwindling surface water resources, deterioration of surface and groundwater quality and haphazard land use. The authority should be headed by a retired (sic) with expertise in the field of hydrology, hydrogeology, information technology.”

    3. The Hon'ble Supreme Court quoted with approval the recommendations of NEERI as follows:

    “7. Recommendations: A Central Water Resource Management Authority, with the composition as delineated in Section 6 above, with mandate for coordination and implementation of all activities of planning, development, allocation, implementation, research and monitoring of all water resources need to be established to promote intra and inter-generational equity, as also to operationalise the precautionary principle in sustainable water resource management. All the States need to constitute similar authorities with functions in the State as of the Central Authority. The mandate of the authority needs to include the following:

    * To deploy river basins as the basis for regional planning for sustainable water resource management (along with commensurate land use)

    * To prepare medium and long-term national land use plans inter alia including agricultural practices, human settlement patterns and industrial typology in consultation with Ministries/Departments concerned based on the regional water supportive capacity

    * To assess the present irrigation practices and cropping patterns, with respect to high water consuming crops and lay down National Agricultural Water Use Policy to encourage judicious use of water resources

    * To keep under review groundwater levels and quality, and surface water quantity and quality to devise and implement pragmatic strategies at plan and programme levels

    * To ensure maintenance of minimum flows in the rivers so as to fulfil the riparian rights, to protect the flood plains, to as also to protect the vital ecological functions of the rivers

    * To ensure techno-economic feasibility and to implement programmes on reuse of appropriately treated sewage for agriculture, reuse of industrial wastewaters as industrial process water, use of treated sewage in social forestry and public parks in municipal areas and reuse of treated wastewater in new housing complexes for non-consumptive usages

    * To protect, conserve and augment traditional water retaining structures

    * To protect, conserve and augment natural and manmade wetlands in the country

    * To promote rain water harvesting in human settlement practices, particularly in cities with more than 10 lakh population in arid/semi-arid regions

    * To promote and implement modern and traditional water harvesting technologies to ensure minimal expenditure in groundwater harnessing

    * To design and implement programmes to arrest alarming rates of decline in snowline in the country

    * To ensure catchment area treatment, including construction of checkdams, contour bunding, control of river bank erosion and plantation of endemic fast-growing tree species to arrest soil and water loss in all river basins

    * To ensure implementation of afforestation programmes for achieving a minimum of 33% forest cover as per the National Forest Policy, 1988

    * To prepare and implement guidelines on water rate structure for various water usages commensurate with the production and scarcity value of the resource

    * To ensure community participation with a view to harnessing traditional knowledge at all stages in the holological approach to water resource management.”

    4. The Hon'ble Supreme Court directed:

    “9. The Central Government in the Ministry of Environment and Forest shall constitute the Central Groundwater Board as an Authority under Section 3(3) of the Act. The Authority so constituted shall exercise all the powers under the Act necessary for the purpose of regulation and control of groundwater management and development. The Central Government shall confer on the Authority the power to give directions under Section 5 of the Act and also powers to take such measures or pass any orders in respect of all the matters referred to in sub-section (2) of Section 3 of the Act.

    10. We make it clear that the Board having been constituted an Authority under Section 3(3) of the Act, it can resort to the penal provisions contained in Sections 15 to 21 of the Act.

    12. The main object for the constitution of the Board as an Authority is the urgent need for regulating the indiscriminate boring and withdrawal of underground water in the country. We have no doubt that the Authority so constituted shall apply its mind to this urgent aspect of the matter and shall issue necessary regulatory directions with a view to preserve and protect the underground water. This aspect may be taken up by the Authority on an urgent basis.”

    5. Even though 23 years have passed after the passing of the judgment of the Hon'ble Supreme Court, the situation of falling groundwater level has not improved and has in fact further deteriorated. Unfortunately, in spite of clear directions of the Hon'ble Supreme Court, the CGWA is not willing to take the ownership of the subject and repeatedly takes the plea that it does not have the infrastructure or that the responsibility of dealing with the problem is of the States and not that of the said authority. It is high time that the working of the CGWA is reviewed and remedial measures are taken including assessment of suitability of the person to head it.

    6. Petitions have been filed before this Tribunal from time to time with the grievance of illegal drawal of groundwater by hotels, industries and builders for commercial purposes. The grievance of the applicants in the present application is that there is fast depletion of ground water in NOIDA and Greater NOIDA, District Gautam Budh Nagar, U.P. There is large scale extraction of groundwater by various construction companies. Directions relating to the water harvesting are not complied with. No measures are properly adopted to stop the fast depleting ground water levels.

    7. This Tribunal has ascertained facts and directed the regulatory authorities to take remedial action by way of closing such drawal, initiating prosecution and recovering compensation on ‘Polluter Pays’ principle. A separate order is being passed in several other matters on the same subject. Original Application No. 59/2012 (M.A. No. 34/2016 & M.A. No. 190/2016), Original Application No. 108/2013, Original Application No. 179/2013, Appeal No. 67/2015, M.A. No. 107/2019, Original Application No. 484/2015 Original Application No. 327/2018, Original Application No. 115/2017, Original Application No. 411/2018, Original Application No. 613/2017, Original Application No. 614/2017 There is need for constant action by the regulatory authorities and mechanism for higher level review of working of such authorities to avoid unnecessary litigation.

    8. We may now refer to some of the proceedings before this Tribunal in the present matter. Significant proceedings are reflected in orders dated 23.04.2015, 26.07.2018, 28.08.2018, 12.11.2018, 03.01.2019 and 07.05.2019. It was noted in the order dated 23.04.2015 that ground water level has gone down in NOIDA by 15 mtrs. between 2007-2014. On 26.07.2018, it was noted that even apart from NOIDA, Greater NOIDA, Delhi and NCR, the situation in OCS region calls for stringent regulation for ground water extraction. In the order dated 28.08.2018, the Tribunal directed the Ministry of Water Resource (MoWR), Government of India, in consultation with the Ministry of Environment, Forest and Climate Change (MoEF&CC) and Ministry of Agriculture (MoA), to review the existing mechanism for effective conservation of ground water resources in OCS. It was directed that the policy framework must include monitoring mechanism by way of provision for coercive measures, consistent with the mandate in the judgement of the Hon'ble Supreme Court of India in M.C. Mehta (supra). The guidelines of CGWA that permission to extract ground water in over exploited, critical and semi-critical (OCS) areas is to be given only for drinking and domestic purposes were noted. OCS areas were identified and notified by the CGWA having regard to the depletion of groundwater level. OCS areas were further classified as ‘notified’ and ‘non-notified’ without any basis and ‘non-notified’ were not being regulated. The Tribunal directed remedial measures to be taken.

    9. On 12.11.2018, the matter was further considered. After making reference to the 2012 Guidelines issued by the CGWA and Draft Guidelines dated 16.11.2015, the Tribunal noted following points:

    i. CGWA was repeatedly disowning its responsibility on the plea that regulation of ground water was a State subject, contrary to the mandate in the judgement of the Hon'ble Supreme Court in M.C. Mehta (Supra).

    ii. CGWA was failing to regulate drawal of ground water in OCS on the ground that it had not issued a notification except for some areas, and without such notification, there was no need for regulating extraction of ground water even in OCS.

    iii. Extraction of ground water for commercial purposes was being allowed in OCS just by a mechanical condition that the ground water will be recharged, without ensuring compliance of such condition.

    iv. Underground water was being allowed to be extracted for illegal constructions, bottling plants, swimming pools etc. without any impact study or effective steps for rain water harvesting for recharge of the ground water.

    v. CGWA was repeatedly taking the plea that charges were being collected for permitting drawal of underground water for commercial purposes in OCS against the Precautionary Principle, Sustainable Development as well as Intergenerational Equity Principles.

    vi. Difficulties of agriculturists needed to be addressed in a phased manner by persuading the agriculturists to switch over to less water consuming crops and to consider use of treated sewage water instead of extraction of fresh underground water, wherever viable.

    vii. Untreated effluents are not to be discharged in the water.

    10. Notification dated 12.12.2018 was issued by Ministry of Water Resources (MoWR) which was considered by this Tribunal vide order dated 03.01.2019. The Tribunal noted from the affidavit filed by the CGWA found that utilizable water in India is 1137 BCM which comprises of 690 BCM of surface water and 447 BCM of replenishable ground water resources. In the year 2009, about 2700 BCM of ground water was available in deeper aquifers, below the zone of water level fluctuations. Thus, ground water over exploitation is recommended to be restricted to sustainability of ground water by annual replenishment in order to facilitate long term sustainability of ground water. It is further stated that per year extraction is 253 BCM which is 25% of the global ground water extraction. Out of total 6,584 assessment units, 1,034 fall in over-exploited category (where extraction is more than 100%of recharge), 253 fall in critical category (where extraction is 90-100% of the recharge), 681 fall under semi-critical category (where extraction is 70-100% of the recharge) and 4,520 are under safe category (where extraction is 90% of the recharge). About 90% extraction is for agricultural purposes, 10% for drinking, domestic and industrial purposes. Industrial use is 5%. Model building bye-laws 2016 include the provision of rain water harvesting in all new buildings on plots of 100 sq. mtrs. and above. Entire storm water is to be captured for water harvesting through suitable structures in all public and open spaces of more than 500 sq. mtrs. Buildings having minimum discharge of 10,000 liters and above are required to have waste water recycling system for horticulture purposes. ‘Mission Water Conservation’ has been introduced by the Ministry of Agriculture, Government of India. Inter-Ministerial Committee has been constituted under the chairmanship of the Secretary, Ministry of Water Resources, Government of India. The Ministry is also carrying out training programme and Information, Education & Communication (IEC) activities for awareness. The Department of Land Resources is implementing water-shed development projects. Certain States have taken initiatives including Punjab Preservation of Subsoil Water Act, 2009 which ban early sowing of paddy nursery and transplantation of saplings. Maharashtra Groundwater (Development and Management) Act, 2009 prohibits drilling of deep wells within for agriculture or industrial usage, pumping of ground water for deep well of depth of 60 mtrs. or more. The CGWA has issued advisories and it requires taking of NOC for ground water withdrawal but the agriculture section is not subjected to ground water regulation on account of socio-economic implications. The steps taken by the CGWA include directions for rooftop rain water harvesting systems, ground water recharge measures along the National highways, State national highways, railway tracks, etc., artificial recharge in over-exploited areas, large and medium industries using ground water to take up the ground water conservation measures. CGWA imposes condition while granting NOC for withdrawal of ground water in States/UTs which do not have functional ground water authorities. NOCs are granted online in a user-friendly manner. Industries in safe category are exempted from NOC but in OCS areas, condition for grant of NOC is rain water harvesting/ground water recharge measures and NOCs are denied in over-exploited areas. Non-water intensive industries drawing ground water up to 100 m/day are exempted from NOC in critical areas, non-water intensive industries drawing up to 50 m/day are exempted from NOC. (In over-exploited areas, non-water intensive industries are exempted which are drawing ground water up to 25 m/day. Permitted water extraction is restricted to 60% of the proposed recharge. Ground water extraction should not be exceeded 1,500m/day for each unit. In semi-critical areas, ground water extraction is restricted to 200% and 100% of proposed recharge for non-water intensive and water intensive industries respectively. In critical areas, ground water extraction is permitted up to 100% and 50% of proposed recharge for non-water intensive and water intensive industries respectively. In over-exploited areas, ground water extraction is permitted up to 50% of the proposed recharge). Till 2015, existing industries were not required to seek any NOC. In compliance of order of the Tribunal dated 15.04.2015, existing industries were brought within the purview of NOC with effect from 16.11.2015.

    11. The Tribunal held that the Notification worsened the situation by liberalizing the extraction of ground water even for commercial purposes in violation of spirit of order of the Hon'ble Supreme Court. The objections against the Notification upheld by the Tribunal were:

    “i. Liberally permitting extraction of ground water and justifying the same on the plea that charges have been prescribed even in OCS areas for commercial/industrial purposes.

    ii. Liberally permitting extraction of ground water on the ground that condition was imposed for rain water harvesting without any data of effective compliance of such conditions or even possibility of this being done.

    iii. Having exempted categories in OCS areas for purposes other than drinking water, including swimming pools, commercial and industrial uses. Reference has been made to the statistics to show deteriorating status of conservation of water and crises of access to water being available to the common man, as well as its requirement for ensuring e-flow in the rivers.”

    12. It was observed:

    “21. The provisions of the impugned notification show that drawal of ground water has been, for all practical purposes, made unregulated in all areas, including the OCS areas.

    22. The so-called regulation is illusory. The so-called conditions are incapable of meaningful monitoring, as shown by past experience also.

    23. The water conservation fee virtually gives licence to harness ground water to any extent even in OCS areas.

    24. There is no institutional mechanism to monitor removal and replenishment of ground water.

    25. Delegation provision is virtual abdication of authority.

    26. There is no check on injection of pollutants in the ground water in the impugned notification. There is no provision with regard to check on water quality and its remediation, if there is contamination.

    29. The MoEF&CC is directed to constitute an Expert Committee by including representatives from IIT Delhi, IIT Roorkee, IIM Ahmedabad, CPCB, NITI Ayog and any other concerned agency or department to examine the issue of appropriate policy for conservation of ground water with a robust institutional mechanism for surveillance and monitoring with a view to enhance access to ground water for drinking purposes in OCS areas by way of appropriate replenishment practices which can be properly accounted and measured for as well as to sustain the floodplains of rivers in terms of e-flows and other water bodies. The MoEF & CC and MoWR may finalize the issue of subject remain inter-se with regard to ground water reserve and its quality.

    31. The Committee may also indicate the projection of its impact study in light of projected data for the next 50 years (in phased manner with action plan for each decade). Thereafter, fresh guidelines be issued by the concerned Ministry and the report furnished to the Tribunal on or before 30.04.2019.

    32. The CPCB may constitute a mechanism to deal with individual cases of violations of norms, as existed prior to Notification of 12.12.2018, to determine the environment compensation to be recovered or other coercive measures to be taken, including prosecution, for past illegal extraction of ground water, as per law. All the matters relating to illegal extraction of ground water by individuals are disposed of with these directions.”

    13. The Tribunal noted the relevant statistics on the subject as follows:

    “2. As per publication of NITI Ayog, India is placed at 120th amongst 122 countries in water quality index. Most states have achieved less than 50% of the total score in augmentation of groundwater resources, highlighting a growing national crisis 54% of India's ground water wells are decreasing in levels and 21 major cities across the country are expected to run out of ground water by 2020. Almost none of the States have built the infrastructure required to recharge groundwater in over exploited and critical areas. Several States such as U.P., Bihar, Rajasthan etc. have not put in place any regulatory framework for managing the groundwater. These states produce 20-30% of India's agricultural output and groundwater accounts for 63% of all irrigation water. Therefore, unsustainable extraction in these states also poses a significant food security risk for the country 3. About 60% of the irrigation needs, 85% of rural drinking water needs and 50% of urban water needs are met through ground water. The CGWB has categorised the areas into the following on the basis of availability of ground water resources:

    Safe (<=90%, No decline in water levels) Critical (>70% and <=100%, decline in water levels) Semi-critical (>100%, decline in water levels) Over-exploited (>100%, decline in water levels)

    4. As per another survey, India extracts most ground water. Globally, 25% of total annual global annual water is extracted in India. The extraction level is going up continuously

    5. Depletion of ground water not only creates crisis for drinking water in absence of inadequate surface water being available in certain areas where there may be drought conditions, but also affects e-flow in rivers and can also increase salinity in soil.”

    14. The Tribunal accordingly held:

    “27. We are satisfied that the Notification dated 12.12.2018 tested on the Precautionary Principle, Sustainable Development as well as Inter-generational Equity Principles is unsustainable in law and instead of conservation of ground water which is necessary for providing access to drinking water in OCS areas, as well also other needs of environment, including sustenance of rivers and other water bodies, it will result in fast depletion of ground water and damage to water bodies and will be destructive of the fundamental right to life under Article 21 of the Constitution of India.

    28. Accordingly, the impugned Notification may not be given effect to in view of serious shortcomings as pointed above so that an appropriate mechanism can be introduced consistent with the needs of environment.”

    15. The matter was thereafter considered on 07.05.2019 and since the report was not furnished by the MoEF&CC, such report was required to be filed. Report of the CPCB filed on 30.04.2019 was found to be unsatisfactory and a fresh report was required to be filed for the following reasons:—

    ldquo;(i) The OCS areas which need regulation for conservation of ground water cannot be further treated separately as notified or non-notified. Conservation of ground water in the said areas is of equal necessity. Depletion of ground water in the said areas affects the sub-terranean flow and results in contamination of ground water and also poses a potential danger for drying up of important natural resource in violation of established principle of ‘Intergenerational Equity’.

    (ii) The compensation to be recovered for illegal extraction has to be deterrent specially when it is for commercial or industrial purpose and linked to the quantum of ground water extracted and the period for which such extraction takes place.

    (iii) Scenario analysis with robust scientific logic is required for all the classes considered in comparable terms which has not been done in the present report.”

    16. Accordingly, affidavit filed by the MoEF&CC on 18.07.2019 and report of the CPCB dated 26.06.2019 have been put up for consideration today. We take up the said reports for consideration.

    17. The report dated 18.07.2019 gives statistics as follows:—

    “As per the latest assessment in categories of OCS areas Delhi is ranked first as 82% of total number of assessed units followed by Rajasthan (81%), Punjab (81%), Haryana (75%), and Tamil Nadu (50%)

    In order to regulate ground water abstraction in Over Exploited/Semi - critical areas, CGWA notifies areas (blocks/talukas/mandals/firkas areas) under Environment (Protection) Act, 1986 for regulation of ground water development and management. In these notified areas, abstraction of ground water is not allowed for any purpose other than drinking and domestic use. For monitoring and supervision of notified area, CGWA has empowered district level authorities of State Government under Section 4 of the Environment (Protection) Act, 1986. CGWA has notified total 162 areas in the country till 2012 out of 1033 identified Over Exploited areas.”

    18. Apart from giving the above statistics the report deals with the review of institutional framework, gaps in groundwater management strategy and makes recommendations providing for levy of water conservation fee, criteria for extraction of groundwater in OCS area, registration of bore-wells, utilization of treated sewage water, shifting of cropping pattern and irrigation practices, optimal use of fresh water and best conservation practices. It is suggested that guidelines be prepared applicable pan India with liberty to lay down more stringent norms by the States depending on local conditions, making water resource estimation every two years, periodic assessment of OCS areas, inviting projects from experts for water management and preparation of decadal action plans.

    19. The report remains deficient as the issue of preventing depletion of ground water has not been duly addressed. The effective enforcement mechanism of conditions subject to which groundwater extraction may be allowed in OCS areas has not been provided. Mere condition of recharge without clear strategy of enforcement is no safeguard for permitting extraction of groundwater. The report leaves many issues to be dealt with by further studies. The need for immediate concrete action to prevent further depletion is not met by the report nor the effective safeguards against abuse of permission for extraction in violation of conditions for extraction and effective remedies against rampant illegal extractions have been suggested. This shows that further remedial action needs to be taken.

    20. The report of CPCB dated 26.06.2019 deals with methodology for assessing environmental compensation (EC), Formula for Environmental Compensation for illegal extraction of ground water, Environmental Compensation Rate (ECRGw) which has been further dealt with in different categories, i.e. ECRGw for Drinking & Domestic use for household purposes and those for institutional activity, commercial complexes, townships etc., ECRGw for Packaged Drinking Water Units, ECRGw for Mining, Infrastructure and Dewatering Projects, ECRGw for Industrial Units, Deterrent factors to compensate losses and environmental damage (for packaging drinking water units, mining, industrial and commercial purposes) and Deterrent Factor. Formula for Environmental Compensation for illegal extraction of ground water is as follows:

    “5. Formula for Environmental Compensation for illegal extraction of ground water

    The committee recommended that the formula considering water consumption, no of days, rates for imposing Environmental Compensation based on the purpose for illegal abstraction of ground water as well as the deterrent factor detailed below:—

    ECgw= Water consumption per day × Environmental Compensation rate for illegal extraction of ground water (ECRgw) × No. of Days × Deterrent Factor

    Where, water consumption is in m3/day and ECRGw in Rs/m3”

    All other details can be seen from the report which is available on the website of CPCB. The report also gives recommendations as follows:

    21. The committee has given following recommendations:

    1. In case of fixation of liability, it always lies with current owner of the premises where illegal extraction of groundwater is taking place.

    2. Violation duration may be assumed as at least one year in case where no evidence for period of installation of borewell could be established.

    3. For illegal industrial ground water abstraction, where metering system is not available, water consumption may be estimated as per consent conditions imposed by SPCB/PCC.

    4. Water intensive industries should only be permitted in safe, semi-critical and critical area, and should not be allowed to establish new industries in overexploited area.

    5. Water in over-exploited area should be permitted only for drinking purposes and industries established in this area without prior consent or NOC from CGWA or another concerned department must be closed down with immediate effect. No expansion in existing industrial activity should be permitted, irrespective of additional water demand arises or not.

    6. Present categorization of area (Over-exploited, Critical and Semi-Critical), as per CGWA shall be considered for calculation of EC, regardless of the area category when the period of violation started.

    7. In case of all existing cases having more than 5000 KLD ground water demand, permission may be given only after examining scientific assessment of water availability and assessing intergenerational equity by CGWA.

    8. The industrial units should be directed to adopt State of the Art technologies, use of surface water, treated waste water and reduce specific water consumption, thereby ground water demand is reduced by 10% over three years' period. The industries also be encouraged to create facilities for storage of excess storm water and adequate measures such as groundwater recharge as well as restoration of lakes/ponds in the vicinity of the industry.

    9. In addition, all repeated violations will attract EC at 1.25 times the previous EC.

    10. Authorities assigned for levy EC and taking penal action are listed below:

    S. No. Actions Authority 1. To seal illegal bore-well/tube-well to stop extraction of water and further closure of project District Magistrate 2. To levy ECgw as per prescribed method District Magistrate/CGWA 3. To levy EC on industries involved in illegal abstraction of Groundwater, as per the method prescribed in report of CPCB - “EC for industrial units” CPCB/SPCB/PCC 4. Prosecution of Violator CGWA under Environment (Protection) Act, 1986 (or) SPCB/PCC under Water (Prevention and Control of Pollution), Act, 1974

    22. CGWA shall maintain a separate account for collection and utilization of environmental compensation levied for illegal extraction of ground water on the violators. For easy understanding w.r.t levying of EC on violators as per the recommendation of CPCB, case studies given at Annexure II may please be referred.

    23. The report may need further consideration by Committee that we propose to constitute, particularly permitting water intensive industries except in safe areas. This recommendation being against the order dated 03.01.2019 of this Tribunal may not be acted upon till further orders. The compensation aspect may be acted upon by the regulatory authorities as an interim measure on same pattern as in O.A. No. 593/2017, Paryavaran Suraksha Samiti v. Union of India Order dated 28.08.2019 and compensation recovered from the violators, for the period of violation, which may be assessed on case to case basis. Once violation is found, the burden of proving that there was no violation earlier, will be on the violator.

    24. We conclude this order with the following directions:

    (i) We constitute a Committee to go into the following questions:

    (a) Steps required to be taken for preventing depletion of ground water.

    (b) Robust monitoring mechanism to ensure that no ground water is unauthorizedly extracted, including review of manning and functioning of CGWA.

    (c) Robust mechanism to monitor conditions laid down for grant of permission for extraction of ground water.

    (d) Recommendations in the report of the CPCB dated 26.06.2019 referred to above.

    (ii) The composition of the Committee will be as follows:—

    (i) Joint Secretary, MoEF&CC

    (ii) Concerned Joint Secretary, MoWR, dealing with the subject

    (iii) CGWB

    (iv) National Institute of Hydrology, Roorkee

    (v) National Remote Sensing Center, Hyderabad

    (vi) CPCB

    The nodal agency will be the Joint Secretary, MoWR for coordination and compliance. The Committee may look into the reports already submitted. The report may be furnished within two months by e-mail at judicial-ngt@gov.in.

    (iii) The report of CPCB with regard to compensation is accepted by way of an interim arrangement and the same may be acted upon by the regulatory authorities and compensation recovered from the violators, for the period of violation, which may be assessed on case to case basis. The report of CPCB that water intensive industries can be allowed even in semi-critical and critical area without any further safeguards may not be acted upon till further orders.

    List for further consideration on 28.11.2019.

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    Shailesh Singh v. Hotel Holiday Regency
    (Sep 11, 2019)