Overview

• A Supreme Court bench of Justices P.S. Narasimha and Manoj Misra set aside a 2012 Delhi High Court ruling and affirmed PCB authority under Sections 33A of the Water Act and 31A of the Air Act.
• Boards can impose restitutionary and compensatory damages to restore polluted ecosystems to their original state.
• Regulators may demand bank guarantees as an ex-ante measure to prevent potential environmental harm.
• The judgment embeds the polluter pays and precautionary principles into statutory powers, prioritizing restoration over punishment.
• Full implementation is on hold until subordinate legislation specifies methods for damage assessment, compensation calculation and safeguards for fairness and public involvement.