Summary
On an application confined to Tamil Nadu seeking vapour recovery systems at petrol retail outlets, the National Green Tribunal, Chennai also directed the Central Pollution Control Board and State Boards to make Consent to Establish and Consent to Operate mandatory for new outlets and required all existing outlets to obtain Consent to Operate within six months. Oil marketing companies appealed against the consent directions only. The Supreme Court held that the Tribunal may direct the Board to exercise its powers under Section 5 of the Environment (Protection) Act, 1986, but found the consent directions unreasonable: fuel outlets are a 'green' category exempt from consent management, the Board's 2020 guidelines for new petrol pumps address the concerns, and consents would be cumbersome; those directions were replaced by strict enforcement of the guidelines.
Issues
- Whether the National Green Tribunal has jurisdiction to direct the Central Pollution Control Board to exercise its powers under Section 5 of the Environment (Protection) Act, 1986 to make Consent to Establish and Consent to Operate mandatory for petroleum retail outlets.
- Whether such directions were reasonable when the Board classifies fuel outlets as a green category exempt from consent management and has issued detailed guidelines for new petrol pumps.
Provisions considered
- Sections 14, 15, 20, 25 and 33, and Rule 24 of the 2011 Rules, National Green Tribunal Act, 2010The Tribunal, created as a one-stop forum with original and appellate jurisdiction, wide powers to mould relief, and a preventive and remedial role recognised in Ankita Sinha, was within its powers to issue the impugned directions. (¶¶ 22, 23, 32, 37, 38, 44, 47)
- Sections 3, 5 and 5A, Environment (Protection) Act, 1986The Central Government and its delegates may take all measures and issue directions necessary to protect the environment, and such directions are appealable to the Tribunal; the Tribunal may direct the Board to exercise this power but the direction here was found unnecessary given the Board's guidelines. (¶¶ 33, 34, 36, 46, 47)
- Section 21 of the Air Act and Section 25 of the Water Act, Air (Prevention and Control of Pollution) Act, 1981 and Water (Prevention and Control of Pollution) Act, 1974These provisions underlie Consent to Establish and Consent to Operate, which verify environmental safeguards before and after setting up a unit; the Court explained their purpose but held that imposing them on fuel outlets was not warranted. (¶¶ 39, 40, 41, 43)
Held
- The applicant had not prayed for mandatory consents and his prayers were confined to Tamil Nadu; the Board's directions of 2016 and 2020 classify automobile fuel outlets as green and exempt from consent management, as the Tribunal itself noted, and its apprehension that State Boards would not monitor vapour recovery installation does not justify making consents mandatory. Once the Board's Office Memorandum of 07.01.2020 is scrupulously followed, no consent requirement is warranted; requiring existing outlets to obtain Consent to Operate is very unreasonable and requiring future outlets to obtain both consents is cumbersome and time-consuming. (¶¶ 45, 46, 47)
- The directions on installation of vapour recovery systems in cities with over ten lakh population and turnover above 300 KL per month stand, to be complied with within the fresh timeline in the Board's circular of 04.06.2021, with every State Board legally obliged to ensure compliance. (¶¶ 45, 48)
Result
Appeals disposed of without costs; directions in paragraphs 69(iii) and 69(iv) of the National Green Tribunal, Chennai order dated 23.12.2021 making Consent to Establish and Consent to Operate mandatory set aside and replaced by a direction that the Central Pollution Control Board instruct all State Boards to enforce its Office Memorandum of 07.01.2020 strictly and proceed against erring outlets; the vapour recovery directions in paragraphs 69(i) and (ii) to be fully complied with.