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Supreme Court of India

M.C.MEHTAversusUNION OF INDIA AND ORS.

Citation
1996 INSC 1516
Decided
19 December 1996
Disposal
Disposed off

Holding

The Court held that the Calcutta tanneries must be relocated from their present sites, and any tannery that fails to do so shall be closed, with the polluter liable to pay fines, compensation and provide worker benefits.

Summary

The Supreme Court, hearing a public‑interest writ filed by environmental activist M.C. Mehta, examined the pollution caused by about 550 tanneries in the eastern fringe of Calcutta that were discharging untreated effluent into the River Ganga. The Court found that the tanneries were operating without consent under the Water (Prevention and Control of Pollution) Act, 1974 and in violation of the Environment (Protection) Act, 1986. Expert reports (NEERI and the West Bengal Pollution Control Board) concluded that a common effluent treatment plant could not be set up at the existing sites, making relocation the only viable remedy. Applying the polluter‑pays and precautionary principles, the Court ordered unconditional closure of the tanneries unless they relocated to a newly acquired leather complex, imposed a fine of Rs 10,000 per unit and directed compensation to be deposited in an Environment Protection Fund. It also directed worker‑benefit measures, the creation of a single‑window agency for relocation, and transferred further monitoring to the Calcutta High Court’s Green Bench.

Issues considered

  • The legality of the Calcutta tanneries' discharge of untreated effluent under the Water (Prevention and Control of Pollution) Act, 1974.
  • Whether the tanneries violate the mandatory provisions of the Environment (Protection) Act, 1986.
  • Whether a common effluent treatment plant can be established at the existing tannery sites.
  • The applicability of the polluter‑pays and precautionary principles to the tanneries.
  • The appropriate remedial measures, including relocation, closure, fines, compensation and worker rights.

Legislation cited

Subjects

environmental lawwater pollutionpolluter pays principleprecautionary principletanneriesRiver Gangarelocationcommon effluent treatment plantpublic interest litigationArticle 21Article 32environment protection fund

Judgment

                               M.C.MEHTA                                        A
                                     v.
                     UNION OF INDIA AND ORS.

                          DECEMBER 19, 1996

           [KULDIP SINGH AND S. SAGHIR AHMAD, JJ.]                             .B

      Environmental Law :

      Constitution of India, 1950: Articles 21 and 32.

       Ecology--River Ganga-Pollution of-Calcutta tanneries discharged
                                                                                c
untreated noxious and poisonous effluent into River Ganga thereby polluting
land and rive,.......PJL treated as writ petition-Supreme Court monitored this
writ petition for a long time with a view to controlling pollution and save
environment-In view of categoric findings of NEER/ and also reports of
W.B. State Pollution Control Board, possibility of setting up of Common D
Effluent Plant at existing locations of Calcutta Tanneries rnled out-Calcutta
tanneries was extended all possible help to relocate themselves to new com-
plex-But they did not do so despite giving clear undertaking in that behalf to
supreme Court-Held: Calcutta Tanneries even otherwise operated in viola-
tion of mandatory provisions of Water Act and Environment Protection E
Act-One who polluted the environment must pay to reverse damage caused
by his acts (Polluter Pays Principle}--Accordingly, directions issued for un-
conditional closure of all Calcutta tanneries w.e.f. 30.9.1997, relocation,
payment of compensation by them for reversing the damage and for rights
and' benefits to be made available by them to their workmen--f'ollution fine
of Rs. 10,000 each imposed on all Calcutta tanneries-The compensation F
amount and fine to be deposited under "Environment Protection Fund" and
utilised for restoring damaged environment and ecology-"Green Bench" of
Calcutta High Court to monitor further progress-Water (Prevention and
Control of Pollution) Act, 1974--Environment (Protection) Act, 1986.

       The petitioner filed this petition--f'ublic interest-In this Court which G
was initially directed against the tanneries located in the city of Kanpur. While
monitoring the said directions, this Court en,larged the scope of the petition
and the industries located in various cities on the bank of river Ganga were
called upon to stop discharging untreated, noxious and poisonous effluent
into the river, The tanneries located in the four adjoining areas in the eastern ·H
                                        383
    384                   SUPREME COURT REPORTS(l996] SUPP. 10 S.C.R.

A fringe of the city of Calcutta (the Calcutta tanneries) had all along been
    operating in extreme unhygi,enic conditions and were discharging highly toxic
    effluent all over the areas.

          The Calcutta tanneries had been extended all possible help to relo·
    cate themselves but still they did not cooperate in their relocation to the
B   new complex even after giving clear undertaking in that behalf to this
    Court. As per National Environmental Engineering Research Institute
    (NEERI) findings and the reports of the West Bengal State Pollution
    Control Board the possibility of setting up of Common Effiuent Treatment
    Plant at existing locations of the Calcutta tanneries was ruled out.
c         Disposing of the petition, this Court

           HELD : 1.1. This Court has been monitoring this petition for a long
    time primarily with a view to control pollution and save the environment.
    In the process the Calcutta tanneries have been extended all possible help
D   to relocate themselves to the new complex. Despite repeated reports by the
    West Bengal State Pollution Control Board that the Calcutta tanneries
    were/are discharging highly noxious effiuent and are polluting the land and
    the river, this Court did not order the closure of the tanneries because they
    agreed before this Court and had given clear undertaking that they would
E   relocate to the new complex. Inspite of all the efforts made by this Court
    to provide every possible facility to the Calcutta tanneries to shift to the
    new complex they remained wholly non-cooperative. [404-E-G]

           1.2. In view of the categoric findings of the National Environmental
    Engineering Research Institute (NEERI) and also several reports by the
F   West Bengal State Pollution Control Board (Board) there is no possibility
    of setting up of common effiuent treatment plants at the existing locations
    of the Calcutta tanneries. In the facts and circumstances, there is no
    hesitation in holding that the Calcutta tanneries shall have to he relocated
    from their present locations. [405-F]
G       2.1. The Calcutta tanneries are even othenvise operating in violations
  of the provisions of the Water (Prevention and Conrol of Pollution) Act,
  1974. In terms of Section 26 of the Water Act, the Calcutta tannerie8 are
  under an obligation to obtain consent from the Board before they are
  permitted to discharge the trade effiuent into a stream or on land. A large
H number of Calcutta tanneries have not obtained the consent required under
                                M.C. MEHTA v. U.O.I.                          385

     the Water Act. The Calcutta tanneries are also violating the mandatory          A
     provisions of the Environment (Protection) Act, 1986. [407-E-F; 409-F-G]

            2.2. It is settled that once who pollutes the environment must pay to
     reverse the damages caused by his acts (Polluter Pays Principle). Accord-
     ingly, directions _are issued for unconditional closure of all the Calcutta
     tanneries with effect from 30.9.1997, relocation, payment of compensation       B
     by them for reversing the damage and for rights and benefits to be made
     available by them to their workmen. [411-C-H]

             Vellore Citizens Welfare Fornm v. Union of India & Ors., JT (1996) 7
     SC 375, relied on.                                                              C
             M.C. Mehta v. Union of India, [1987) 4 SCC 463, referred to.

             Indian Council for Enviro-Legal Action v. Union of India, JT (1996) 2
     SC 196, cited.
                                                                                     D
             3. Pollution fine of Rs. 10,000 each is imposed on all the Calcutta
     tanneries. The compensation amount recovered from the polluting tan-
     neries shall be deposited under a separate head called "Environment
     Protection Fund" and shall be utilised for restoring the damaged environ-

-    ment and ecology. The "Green Bench" of the Calcutta High Court is to
     monitor further progress in these matters. [413-F -H; 415-C]                    E
             CIVIL ORIGINAL JURISDICTION: Writ Petition (C) No. 3727 of
     1985.

             (Under Article 32 of the Constitution of India.)
                                                                                     F
           M.C. Mehta, in-person, Ms. Seema, Krishan Mahajan, A.M. Khan-
     wilkar, (A.C.), for Petitioner.


--         D.P. Gupta, Solicitor General, K.T.S. Tulsi, Additional Solictor
     General, R. Mohan, P.P. Malhotra, Rajinder Sachar, Shanti Bhushan, R.P.
     Bhatta, L.C. Bihani, G.L. Sanghi, (M/s. Sinha & Das Co., Advs. for State G
     of West Bengal) (V.G. Pragasam) for W.B.P.C.B.) Vijay Panjwani, for
     (C.P.C.B.), A. Sharan, Pradeep Misra, Ranjit Kumar, S. Wasim A. Qadri,
     Ms. Sushma Suri, Ms. Niranjana Singh, S.N .Terdol, B.C. Barua, N.N.
     Gooptu, U.N. Banerjee, Dilip Sinha, J.R. Das, M.J. Paul, Imtaiz Ahmad,
     Ranjan Mukherjee, M.N. Shroff, Jaideep Gupta, Sukant i;>utta, Praveen H
    386                  SUPREME COURT REPORTS[1996) SUPP. 10 S.C.R.

A Kumar, Ms. Suchandra Mukherjee, S.S. Kumar, S.K. Gupta, Ms. Har-
    winder Choudhary, Amar Singh, R.P. Srivastava, Arvind Kumar Sharma,
    LS. Goyal, Ms. Indu Malhotra, K.C. Bajaj, Mrs. AK. Verma, S.
 <. Sukumaran, P.D. Tyagi, Mrs. V.D. Khanna, Sudhir Kulshreshta, D. Prakash
    Reddy, Manoj Swarup, Sanjay Parekh, Bijon Swarup, Sanjay Parekh, Bijon
B Ghosh, D.P. Mukherjee, Sanjoy Ghosh, Rathin Das; S.N. Mathur, E.C.
    Agrawala, S.K. Verma, AK. Jha, S.R. Bhat, Mukul Mudgal, Parijat Sinha,
    R.C. Verma, Arvind Minocha, Kailash Vasdev, Vinoo Bhagat, S.K.
    Dhingra, Praveen Kumar, S.R. Setia, Ashok Gover, S. Markandeya, P.
    Mittra, Manoj Swarup, K.C. Dua, Pramod Swamp, S.L. Aneja, AK. Gupta,
    V.B. Saharya, H.K. Puri, Ms. Madhu Sikri, Devendra Singh, Sunil Jain,
C AK. Sinha P.P. Singh and Rajiv Dutta for the appearing parties.
          The Judgment of the Court was delivered by

           KULDIP SINGH, J. This petition - public interest - under Article 32
    of the Constitution of India was initially directed against the tanneries
D   located in the city of Kanpur. This Court by the order dated September
    22, 1987 (1987 4 SCC 463) (Kanpur tanneries) issued various directions in
    relation to the Kanpur tanneries. While monitoring the said directions, the
    scope of the petition was enlarged and the industries located in various

E
    cities on the bank of river Ganga were called upon to stop discharging
    untreated effluent into the river. In this judgment we are concerned with
    the tanneries located at Tangra, Tiljola, Topsia and Pagla Danga the four
                                                                                  -
    adjoining areas in the eastern fringe of the city of Calcutta (the Calcutta
    tanneries). These areas accommodate about 550 tanneries. According to
    the examination report dated September 30, 1995 by the National Environ-
    mental Engineering Research Institute (NEER!), ninty percent of the
F   Calcutta tanneries use chrome based tanning process, while the remammg
    utilise vegetable tanning process. The present status of the four tannery
    clusters in Calcutta, according to the NEER! report, is as under :



G
            "It was observed by the inspection team that no appropriate was-
            tewater drainage and collection systems are available in any of the
                                                                                  -
            tannery clusters. The untreated wastewater flows through open
            drains causing serious environmental, health and hygiene
            problems. Also, no wastewater treatment facilities exist in any of
            the four tannery clusters."

H The observations by the NEER! team, regarding the Calcutta tanneries in
                       M.C. MEIITAv. U.0.1. [KULDJP SINGH, J.]               '387

      the report are as under :                                                     A
              - " Tannery units are located in highly congested habitations,
              offering little or no scope for future expansion, modernization or
              installation of ETP (s)

              - Tannery units are located in thickly populated residential areas    B
              - Surroundings of the tanneries are extremely unhygienic due to
              discharge of untreated effluents in open drains, stagnation of
              wastewater in low lying areas ·around the tannery units, and ac-
              cumulation of solid waste~in tanneries."
                                                                                    c
      It is thus obvious that the Calcutta tanneries have all along been operating
      in extreme unhygienic conditions and are discharging highly toxic effluents
      all over the areas. This Court on the basis of the material on the record in
      Kanpur-tanneries order observed as under regarding the noxious nature of
      the tannery-effluent :                                                       D
              "It should be remembered that the effluent discharge from ·a
              tannery is ten times noxious when compared with the domestic
              sewage water which flows into the river from any urban area on
              its banks."     ·
                                                                                    E
       Needless to say that the State of West Bengal and the West Bengal
     . Pollution Control Board (the Board) are wholly re-miss in the performance
       of their statutory obligations to control pollution and stop environmental
       degradation.

            On February 19, 1993 the State Government informed this Court that      F
     the Calcutta tanneries were being shifted from their present location and
     the new location would be fully equipped with pollution control devices.
     This Court gave three months time to the State Government to take
     appropriate steps in that direction. The State Government by way of an
     application sought extension of time for the shifting of the Calcutta tan-     G

-.   neries. This Court considered the application on August 13, 1993 and
     passed the following order:

              "The State of West Bengal has moved an application for exten-
              sion of time for the shifting of over 500 tanneries functioning
              on the bank of the river Ganges. This Court by its order dated H
    388                  SUPREME COURT REPORTS[l996] SUPP.10 S.C.R.

A           February 19, 1993 gave three months time to the State of West
            Bengal to take appropriate steps. The relevant part of the order
            is as under:

                      "As regards the industries in Group 'D' Part II of An-
                 nexure 'A', the State Government is said to be taking steps
B                for shifting these industries from the place where thr,y are
                 presently located to another place and to erect a common
                 effluent plant for them in the new place. In that view of the
                 matter, the State of West Bengal shall take appropriate steps
                 within a period of three months."
c           We see no ground to grant 3 years time to the State of West Bengal.
            We direct the West Bengal Pollution Control Board to publish a
            general notice in a Daily paper which is popular in the said area
            consecutively for 3 days directing the tanneries to shift their place
            of working within three months from the date of publication of the
D           notice or in the alternative set up effluent treatment plants to the
            satisfaction of the Board. It shall be clearly stated in the notice
            that in the event of failure the functioning of the industry at present
            place shall be stopped. The Board shall also issue individual
            notices to all the industries within two weeks from the receipt of
E           this order.

                We are prima facie of the view that the Government of West
            Bengal cannot back out from its obligation of providing an alter-
            native place of working to these tanneries in case they wish to shift
            their place of functioning. We direct the Secretary, Small-Scale
F           Industries, Government of West Bengal to be personally present
            in this Court on 24.9.1993 with a proposal regarding the alteriiative
            land or appropriate compensation to be paid to each of the
            industries."

    This Court on September 24, 1993 directed the Board to examine the
G possibility of setting up of common effluent treatment plants for the
  Calcutta tanneries in the four areas. The Board was further directed to
  indicate the cost which was likely to be incurred in the setting up of the
  project. The Calcutta-tanneries were directed to approach NEERI for the
  preparation ofthe projects. Pursuant to the directions of this Court, the
H Board filed affidavit dated October 5, 1993 in this Court. It is stated in the
                 M.C. MEIITAv. U.O:l. [KULDIP SINGH, J.]                 389

said affidavit that the Calcutta tanneries "are operating for a considerable A
period of time with no regard to environmental pollution control ........ .
virtually shiftirig of the tanneries from the present location to another place
and construction of common Effluent Treatment Plants, is the only prac-
ticable solution to control the environmental degradation as a whole". The
relevant part of the affidavit is as under :
                                                                                B
        "3. As per the order of the Hon'ble Supreme court dated 24th
        September, 1993, Technical Officers of the Board have examined
        the possibility of setting up a common Effluent Treatment Plant
        for the tanneries situated in Tiljala, Topsia and Tangra area which
        are located in the eastern fringe of Calcutta.                          c
            A layout map indicating the location of the tanneries in Tiljala,
        Tangra and Topsia area alongwi~h a diagram mentioning the
        number of tanneries in such areas are also enclosed herewith
        collectively and marked as Annexure - 'A'.
                                                                                D
          1 It reveals from the inspection that adequate space is not avail-
        able in Tiljala, Tangra and Topsia area for construction of Com-
        mon Effluent Treatment Plant.

            In this connection it can be mentioned that Tanneries situated E
        at Tiljala, Tangra and Topsia area are operating for a considerable
        period of time with no regard to environment pollution control.

            After the enactment of the Water (Prevention & Control of
        Pollution) Act, 1974 in the State of West Bengal, tanneries of the
        said locality never applied for consent to the State Pollution F
        Control Board. Only in the year 1989, more than one hundred
        tanneries applied for consent to the State Board after long per-
        suasion.

            Considering their practical problem, State Board issued con-
        sent under the Water (Prevention and Control" of Pollution) Act, G
        1974, to tanneries for six months only in the year 1989 with a
        condition that within the validity period of consent i.e. within 6
        (six) months, the said tanneries will construct primary effluent
        treatment plant and submit a scheme of secondary effluent treat-
        ment plant. But unfortunately none of the tanneries situated in the H
    390                  SUPREME COURT REPORTS(1996] SUPP. 10 S.C.R.

A           said area constructed or have taken any s~eps for construction of
            effluent treatment plant.

               Therefore, State Board issued legal notice to the tanneries in
            the year 1992. Show cause notices were also issued by the State
            Board asking why their factory may not be directed to be closed for
B           not putting up right type of effluent treatment plant as per the order
            of Hon'ble Supreme Court dated 1st December, 1992.

                Subsequently more than 275 nos. of tanneries applied for con-
            sent to the State Board but in view of the Hon'ble Supreme Court's
c           order dated 19th February, 1993, "Consent" was not granted to any
            of the tanneries. Moreover tanneries of the said area were directed
            to submit an undertaking in the court stamp paper that they are
            willing to move to any place as fixed up by the Government of
            West Bengal.

D               Accordingly, more than 280 tanneries submitted their under-
            taking in 'Court Stamp Paper' that they are willing to move to any
            place as fixed up by the Government of West Bengal from their
            present location.

               5. That, due to the existence of the tanneries without having
E
            any treatment facilities in Tangra, Tiljala and Topsia area, environ-
            mental degradation in such areas and their surroundings are ex-
            tremely alarming. Virtually shifting of the tanneries from the present
            location to another place and construction of common Effluent
            Treatment Plant, is the only practicable solution to control the
F           environmental degradation as a whole."

        The matter came up for further consideration on October 15, 1993.
  This Court agreed with the above quoted opinion of the Board and came
  to the conclusion that the only viable solution was to relocate the Calcutta
G Tanneries. This Court further passed the following order :

              "Mr. Satendra Nath Ghosh; Secretary, Department of Cottage and
            , Small Scale Industries, Government of West Bengal has stated in
              his affidavit dated September, 1993 that the Government of West
              Bengal has already identified 507.27 acres of land to be acquired
H             for setting up the tanneries complex. He has further stated that on
                 M.C. MEHTAv. U.O.I. [KULDIP SINGH, J.]              391

        technical advice, the Government is thinking of having a bigger A
...
        project and as such the acquisition proceedings in respect of the
        above said land have not been initiated.

            Along with the affidavit a Notification dated July 28, 1992 has
        been annexed. By the said Notification a Monitoring Committee
        for the integrated leather complex to be set up in the District of
                                                                            B
        South 24 Parganas has been constituted. The Committee consists
        of 19 members including the Minister Incharge, Cottage and Small
        Scale Industries, Minister Iii.charge, Sunderbad Development
        Board, Secretary, Cottage and Small Scale Industries, Secretary,
        Commerce and Industries Department, Secretary to the Chief         c
        Minister of West Bengal, the Secretary, Irrigation and Waterways
        Department, Secretary, Environment Department, Secretary,
        Public Health Engineering and various other highly placed officers
        connected with the project. Thereafter the Deputy Secretary to the
        Government of West Bengal in the Department of Land and Land
                                                                            D
        Revenue addressed a letter dated July 13, 1993 to the Collector of
        South 24 Parganas informing him that a decision has been taken
        on the government level to acquire the land measuring 507.27 acres
        in mouzas Karaldanga and others, P.S. Bhangor in the District of
        South 24 Parganas for the integrated leather. complex under the
        provisions of the West Bengal Land Requisition and Acquisition E
        Act 1948 (the Act) as a special case. By another letter dated
        August 23, 1993, the Governor of West Bengal has accorded
        sanction of Rs. 60 lacs for meeting the acquisition expenses
        towards acquisition of land measuring 507.27 acres, under the
        above mentioned Act.
                                                                           F
            It is, thus obvious that the West Bengal Government have
        already taken steps to acquire 507.27 acres ofland for the tanneries
        complex. There is no reason why the plan should not go ahead and
 -""'   be completed within a reasonable time. We direct the Minister,
        Incharge Cottage and Small Scale Industries Department, who is G
        the Chairman of the Committee, to proceed with the Project in
 ·.:"   accordance with the following time schedule.

        1. The Committee shall entrust the project to a technical authority
        like the National Environmental and Engineering Research In- H
    392                 SUPREME COURT REPORTS[l996] SUPP. 10 S.C.R.

A          stitute or any other equally competent authority for preparing a
           project in this respect. The expenditure for getting the project
           prepared shall be met by the West Bengal Government. The
           project should be got prepared on war-footing and be prepared
           within a period of two months of the receipt of this order.

B          2. The procedure for acquiring the land measuring 507.27 acres
           under the Act shall be commenced within one month from the
           receipt of this order and shall be completed expeditiously.

           3. After the acquisition proceedings are completed and land is
C          taken in possession of, the State Government shall get the land
           developed through the authorities under the control of Che State
           Government. This shall be done within three months thereafter.

                As at present we give the above directions to the Monitoring
            Committee. The Secretary, Department of Cottage and Small Scale
D           Industries shall keep on sending the progress report to this Court
            after every four weeks. After the above quoted steps are completed
            in accordance with the schedule given by us, further directions in
            this respect shall be given. We make it clear that any violation of
            this order shall attract the provisions of the Contempt of Court
            Act."
E
          While examining the progress made in the execution of the project
    in terms of the above quoted directions, this Court on February 25, 1994
    passed the following order :

F           "We directed the Minister Incharge, Cottage and Small Industries
            Department, Chairman of the Committee to proceed with the
            projects on war-footing and have the project report prepared
            within the period of two months from October 14, 1993. We have
            been informed by the learned counsel appearing for the State of
            West Bengal that a preliminary report has been received from the
G           Central Leather Research Institute, Madras, but the design and
            estimate are yet to be received. We are of the view that the project
            is not being executed in accordance with the time schedule
            directed by this Court. We request and direct Mr. Probir Sengupta,
            Minister Incharge, Cottage and Small Industries to file an affidavit
H           in this regard within two weeks explaining the progress in the
                 M.C. MEHTAv. U.O.I. [KULDIP SINGH, J.]                393

        project and also the reasons, if any, why the time schedule fixed A
        by this Court is not being followed. We make it clear that the
        affidavit should be filed in this Court on or before 15.3.1994. We
        further direct the Minister Incharge to depute a responsible officer
        to be present in this Court on the date when. we take up the
        affidavit for consideration".
                                                                              B
      Pursuant to the above quoted order of this Court, Probir Sen Gupta,
Minister Incharge, Department· of Cottage and Small Scale Industries,
Governni.ent of West Bengal filed affidavit in his capacity as the Chairman
of Monitoring Committee set up by State Government by the notification
dated July 28, 1992 to monitor the new integrated leather complex. The        C
affidavit stated as under :

        "........... About 1,000 acres of land has already been acquired and
       possession taken for setting up the Calcutta Leather Complex. It
       is stated by the Learned counsel appearing for the Minister that D
        the Calcutta Leather Complex includes the tanneries and all other
       allied leather industries. It is stated that the Project Report in
       respect of the complex has been received from the Central Leather
       Research Institute, Madras. We are of the view that the develop-
       ment of the Complex should be done in a phased manner. Top
       priority has to be given to the tanneries which are to be shifted E
       from Calcutta to the new Complex. The Project which has been
       prepared by the Calcutta Leather Research (in short - CLRI)
       relates to the tanneries as well as other allied industries to be set
       up at the new complex. We direct the State of West Bengal to take
       up that part of the Project for implementation in the first instance p
       which relates to the tanneries. While doing so, if any technical
       difficulty arises, the State of West Bengal may immediately ap-
       proach the CLRI through its Deputy Director, Dr. Mariappan, to
       render the advice asked for within two weeks of the receipt of the
       requisition. Of course, the Institute shall be entitled to its normal
       fees for rendering the advice.                                        G

            Meanwhile, we direct the State of West Bengal to assess the
       need of each of the tanneries either directly or through the As-
       sociation (the learned counsel has informed us that an Association
       is in the process of being formed) regarding the extent of land and H
    394                   SUPREME COURTREPORTS(1996) SUPP.10 S.C.R.

A           other facilities required by them. This is to be done within four
            weeks from today and a report be filed in this Court. We further
            direct the State of West Bengal to take into hand the development
            of the acquired area either directly or through the Association.
            Copy of the order be sent to the West Bengal Government and to
            the Minister personally".
B
          This Court took up the matter for further monitoring on July 29,
    1994. Jyotirmoy Ghosh, Joint Secretary, Department of Cottage and Small
    Scale Industries Government of West Bengal, had filed an affidavit indicat-
    ing the progress made in the relocation of Calcutta tanneries. After ex-
C   amining the contents of the affidavit this Court passed the following order:

            "We are prima facie satisfied that no steps at all have been taken
            by the Govenpnent of West Bengal to comply with our orders
            reproduced above. We issue notice returnable on 19.8.1994 to
            (through speed post/fax) Mr. Prabir Sengupta, Minister lncharge,
D           Department of Cottage and Small Scale Industries, Government
            of West Bengal, and Mr. Jyotirmoy Ghosh, Joint Secretary,
            Department of Cottage and Small Scale Industries, Government
            of West Bengal to show cause why contempt proceedings be not
            instituted against them. Meanwhile, we give them opportunity to
E           file further affidavit showing compliance, if any, of this Court's
            orders made by the State of West Bengal".

         This Court on September 9, 1994 considered the affidavits filed by
    Probir Sen Gupta, Minister Incharge and by Jyotirmoy Ghosh, Joint
    Secretary respectively of the State of West Bengal. After hearing Mr. N.N.
F   Gooptu, learned Advocate General, State of West Bengal, this Court
    passed the following order :

             "We are prima facie satisfied that there has been no effort on the
             part of the West Bengal Govt. to comply with the directions given
             by this Court. Despite our finding, we restrain ourselves and refrain
G            from issuing contempt notice to the Minister and the Joint
             Secretary at this stage.

                We reiterate our earlier direction given on April 15, 1994 and
             expect the State Govt. to comply with the same fully within a period
H            of 8 weeks from today. During the course of arguments, we have


                                                                                     ,.
                                                                                     )
                      M.C. MEHfAv. U.O.I. [KULDIP SINGH, J.]                   395

             given sufficient indication to the learned Advocate General as to A
             how the State of West Bengal is to proceed in this matter. We
             indicate that the State Govt. shall issue individual notices to each
             of the tanneries indicating that as per this Court's order, all the
             tanneries have to be shifted. from their existing place of work to
             the place which has already been acquired by the State Govt. They B
             shall be asked to give their requirements regarding land, financial
             assistance and any other assistance which they need within the
             specified period. The State Govt. shall also indicate thereafter by
             a public notice the mode of transferring the land and the mode of
             payment of the price by the tanneries. Meanwhile, the State Govt.
             shall take immediate steps to develop the land in the sense that it C
             shall start working on the sewage system, water works, electricity
             and other amenities and construction work which is to be done.
             We make it clear that we have only indicated some of the steps
             which are necessary in the process of shifting the tanneries from
             their present place of work. It is for the State Govt. to have a D
             detailed scheme prepared and have the project completed within
             a phased manner.

                 Mr. Harish N. Salve, learned senior counsel appearing for the
.,           Tanneries Association has very fairly stated that they have no
"
             objection in shifting to the new place provided all the facilities are   E
             given to them by the State Govt. He further states that the main
             difficulty in their way is the setting up of an Effluent Treatment
             Plant. The State Govt. shall have an estimate prepared immediately
             regarding the expenditure and the time it is going to take in setting
             up the E.T.P. We shall thereafter apply our mind to find out the         F
             way to pool financial sources from the State Govt., Central Govern-
             ment and the Tanneries themselves".

           On February 20, 1995 this Court was informed that the estimated cost
     of the land in the new complex would be Rupees 860.00 per square meter.
     Learned counsel appearing for the Calcutta tanneries, however, contended         G
     that the price suggested was on the higher side. Various suggestions for
     reducing the cost of land were considered and finally the Court passed the
     following order :

             "Mr. Ajoy Sinha, Principal Secretary to the Government of West H
    396                SUPREME COURT REPORTS(1996) SUPP.10 S.C.R.

A         Bengal and Secretary Department of Cottage and Small Scale
          Industries has filed two affidavits dated February 7, 1995 and
          February 16, 1995 on behalf of the State of West Bengal in
          Tanneries Matter. The affidavits be taken on record.

          We have heard Mr. M.C. Mehta, Mr. Dalip Sinha and Mr. G.
B         Ramaswamy. Mr. Ajoy Sinha has annexed copy of the Notice dated
          January 10, 1995 served on all the tanneries along with the affidavit
          dated February 7, ~995. It has been mentioned in para VI of the
          notice that the estimated cost of the land in the new complex would
          be Rs. 860.00 per sq. metre. It is further stated that this has been
c         worked out on the basis of the total estimate of the cost, which
          according to the State Government, comes to about Rs. 130 crores.
          Mr. G. Ramaswamy, learned senior counsel appearing for the
          tanneries has informed us that during the course of discussion
          between the representatives of the tanneries and the Government
          officials, it was disclosed that cost of the common effluent treat-
D         ment plant to be set up at the new complex would come to about
          Rs. 65 crores. The Co-ordinating Committee of the Calcutta Tan-
          neries has, in its letter dated February 15, 1995, informed the
          Government that they are willing to shift to the new complex. The
          main objection raised by the tanneries is that the price as Rs. 860.00
E         per sq, metre is excessive and very much on the higher side. We
          have no doubt that the Government must have fixed the price per
          square metre on "no profit no loss" basis.

              We are of the view, that the amount of Rs. 65 crores, to be
F         spent on the construction of the common effluent treatment plant,
          should initially be founded by the Government or from some other
          source provided by the Government. After the treatment plant is



G
          constructed and the tanneries are shifted to the new complex an
          "effluent charge" can be levied on the tanneries for reimbursing
          the amount spent on the common effluent treatment plant in a
          phased manner. This arrangement can bring down the initial cost
                                                                                   -
          to be incurred by the tanneries.                                         •

            We issue notice to the Government of West Bengal through
          Dept!. of Industries, Ministry of Environment and Forests - Union
H         Government, the Ganga Project Directorate and the State Pollu-
                      M.C. MEIITAv. U.O.I. [KUIDIP SINGH, J.]             397
             tion Control Board. These authorities shall give their reaction Ito A
·'           our suggestion within a period of two weeks from today. Affidavits
             shall be filed by all these authorities within ten days from today.
             Registry to send copies of this order to all the above-mentioned
             authorities within two days by speed post".

           Pursuant to the order dated February 29, 1995, Ganga Project,         B
     Directorate and Ministry of Environment and Forests filed affidavit
     wherein it was stated that "the amounts provided under the plan are for
     specific items of works approved by the Central Ganga Authority. Under
     the circumstances, It may not be feasible to divert earmarked funds for
     other purposes". On February 24, 1995 this Court passed the following       C
     order:

                 "We are of the view that the Ministry of Environment and
             Forest be requested to reconsider the matter and also the alloca-
             tions it has made for various projects under the Ganga Action Plan ·
             and include if possible the Tanneries Project in West Bengal in D
             the Plan to be executed in the near future. The Ministry must find
             out a way to found the Tanneries Project as suggested by this Court
             in the order dated Feb., 20, 1995. We adjourn the matter for three
             weeks to enable the Ministry and the Ganga Project Directorate
             to reconsider the whole matter and file a fresh affidavit in this E
             Court within the above period. Copy of this order may be sent to
             the Ministry of Environment and Forest and to the Ganga Project
             Directorate".

           Pursuant to the above quoted order of this Court Bhag Singh, Deputy
     Secretary, Ganga Project Directorate filed affidavit dated April 6, 1995.   F
     Para 6 of the affidavit stated as under :

             "It is now submitted that in view of the above observations of the
             Supreme Court, the Ganga Project Directorate in the Ministry of
             Environment & Forests will prepare a scheme of Common Effluent
             Treatment Plant in West Bengal and move for its inclusion in Phase G
             II of Ganga Action Plan. It is further submitted that this scheme
             like other schemes under Ganga Action Plan Phase II will have to
             be funded by the Centre and the State Government on 50:50 basis.
             The proposal for the.scheme will be called from the State Govern-
             ment of West Bengal and after due examination will be submitted H
    398                  SUPREME COURTREPORTS[1996] SUPP.10 S.C.R.

A           for the approval of Expenditure Finance Committee, the Planning
            Commission and the Cabinet Committee on Economic Affairs."


          Agreeing with the Ganga Project Directorate that project would be
    included in the Ganga Action Plan Phase II, this Court on April 7, 1995
B   passed the following order :


            "We agree with the Ministry of Environment & Forests that the
            project of setting up of Common Effluent Treatment Plant for
            about 540 tanneries, to be re-located, be included under Ganga
c           Action Plan Phase II. Mr. Gooptu, learned Advocate General,
            appearing for the State of West Bengal, very fairly states that it
            would be possible for the State of West Bengal to meet 50% of
            the cost of the Project. He further states that the State will arrange
            the funds either from its own sources or from financial institutions
D           or other sources. Therefore, it is agreed by all that the Project of
            setting up of Co=on Effluent Treatment Plant shall be under-
            taken under the Ganga Action Plan Phase II and its total cost of
            Rs. 65 crores shall be met 50% by the Ganga Project Directorate
            and the remaining 50% by the State Government in the manner
            indicated by the learned Advocate General. We reiterate that after
E           the treatment plant is constructed and the tanneries are shifted to
            the new complex, "Effluent Charge" shall be levied on the tanneries
            for reimbursing the amount spent on the co=on Effluent Treat-
            ment Plants in a phased manner. Needless to say that the money
            collected in that manner shall be divided half and half by the State
F           of West Bengal and the Ministry of Environment and Forests. We
            direct the State of West Bengal through the Department of Cottage
            and SJ11all Scale Industries to prepare and send the Project for
            setting up of Common Effluent Treatment Plant for the tanneries
            to the Ganga Project Directorate within one month from the
            receipt of this order. The Ganga Project Directorate shall there-
G           after examine the project within two weeks and send the same for
            approval of expenditure to the Finance Committee of the Planning
            Commission and the Cabinet Committee on Economic Affairs. We
            request the Finance Committee, Planning Commission and the
            Cabinet Co=ittee on Economic Affairs to expedite the sanction-
H           ing of the project as and when it is received by these authorities.
         M.C. MEHfAv. U.O.J. [KULDIPSINGH,J.)                   399

    Mr. Gooptu, leaned Advocate General slates that the total cost     A
of the project has been estimated at Rs. 158 crores. He further
states that the price of the land as Rs. 860 per sq. metre was
determined on the basis of the estimated cost of the leather
Complex. Since Rs. 65 crores are now being spent by the Ganga
Project Directorate, and the State of West Bengal, the total price     B
for the purposes of market value has to be reduced. After doing
this exercise, all present agree that the price comes to Rs. 600 per
sq. metre.

   We direct the State of West Bengal to go ahead with the re-
location of tanneries from the present sites to the new complex by     C
offering the plots to the individu.al tanneries at Rs. 600 per sq.
metre. The State of West Bengal shall keep in mind the require-
ments of each of tanneries so far as the area is concerned, but in
no case the area lesser than the area already occupied by the
tanneries shall be offered to them. ·
                                                                       D
    The State of West Bengal shall issue public notices offering
land in the new complex to the tanneries at Rs. 600 per sq. metre.
We direct the West Bengal Pollution Control Board to issue
individual notices to all the tanneries informing them that the land
is being offered by the State of West Bengal in the new complex. E
The Board shall further inform the tanneries that all necessary
amenities and facilities necessary for setting up of tanneries in the
new complex, shall be provided. The Board shall indicate in the
notices that the offer of the State Government for purchase of plots
in the new complex shall be accepted within two weeks of the
receipt of the notices. We make it clear that the tanneries who fail F
to avail the opportunity offered by the State of West Bengal to
shift to the new complex shall be liable to be closed without any
further notice. Mr. Gooptu, learned Advocate General states that
the plots shall be offered to those tanneries who will deposit 25%
of the total purchase price at the rate of Rs. 600 per sq. metre.     G

    State of West Bengal to file an affidavit by 21st April, 1995
giving the progress made pursuant to this order.

  A copy of this order be sent to all the concerned authorities.
We make it clear right at this stage that the area vacated by the      H
    400                  SUPREME COURT REPORTS[1996] SUPP. 10 S.C.R.

A           tanneries shall be maintained as a green area in any .form at the
            discretion of the State Government.

          Pursuant to the above quoted order, the Board issued notices to all
    the Calcutta tanneries. The Board also issued public notices in four
    newspapers namely. The Statesman (English), The Telegraph (English),
B   Aajkal (Benali) and Ganashakti (Bengali). The notices served on the
    tanneries and published in the newspapers stated that all the Calcutta
    tanneries should approach the State Government for allotment of plots in
    the ne~ integrated leather complex by May 15, 1995 failing which such
    tanneries shall be liable to be closed without any further reference. The
C   affidavit dated May 3, 1995 filed by the Board further stated that "it is
    admitted position that all the tanneries are still operating without any
    pollution control devices and without any statutory permission from the
    State Board, except few units which might have been closed for financial
    or other reasons". This Court on April 21, 1995 passed the following order:

D               Pursuant to this Court's order dated April 7, 1995, an affidavit
            has been filed by Mr. Jyotirmoy Ghosh, Joint Secretary in the
            Government of Cottage and Small scale Industries, Government
            of West Bengal. Mr. N.N. Gooptu, learned Advocate General has
            further explained the various contents of the affidavit to us. We
E           are satisfied that the Government of West Bengal is complying
            with the different directions issued by us in our order dated April
            7, 1995.

                Mr. R. Mohan, learned Senior counsel appearing for the West
            Bengal Pollution Control Board states that pursuant to this Court's
F           order dated April 7, 1995 individual notices have been issued to
            all the tanneries to be re-located.

               Learned counsel for the tanneries has brought to our notice
            that some of the tannery owners are residing within the tannery
            premises. Learned counsel further contends that after the tan-
G           neries are re-located, the residence part of the premises may be
            permitted to remain with them. This matter shall be examined at
            a later stag!l<. Meanwhile, we direct the Labour Commissioner
            Calcutta to depute inspectors to have a survey of the area and find
            out as to how many tanneries-owners are actually residing within
H           the tannery premises and file a report in this case. The report shall
                 M.C. MEHIAv.. U.O.I. [KUIDIP SINGH, J.]              401

        also indicate the actual area occupied for the purpose of A
        residence."

On May 10, 1995 Mr. Ghosh, learned counsel appearing for the Calcutta
tanneries sought extension of the time for depositing 25% of the price of
the land. The amount was to be deposited by May 15, 1995. The time was
extended upto May 31, 1995. This Court on July 14, 1995 passed the          B
following order :

            '!Pursuant to this Court's order dated February 20, 1995 April
        7, 1995, April 21, 1995 and May 10, 1995, State of West Bengal
        was required to file a report in this Court giving the progress made C
        in this respect. The detailed report has not as yet been placed on
        record. We direct the State Government through the Advocate
        General, who is present in Court to file a detailed report indicating
        the area and its situation which has been ear-marked for the
        re-location of the tanneries, a_nd the notice/office which is made
        to the tanneries by way of publicatlon or any other method and all D
        other steps which the State Government has taken in this respect
        in pursuance of our orders. This may be done within two weeks
        from today. It is stated by Mr. N.N. Guptoo learned Advocate
        General that none of the tanneries have come forward to deposit
        25% of the price or is willing to buy the land. We make it clear E
        that the tanneries which are not cooperating with this Court and
        the State Government shall ultimately be liable to be closed un-
        conditionally.

            We give notice to these tanneries through their counsel, who
        are present in Court, to show cause as to why, in view of their F
        conduct, they be not closed forthwith. Arguments on the report
        filed by the State and the notice issued to the tanneries shall be
        heard on 11th August, 1995. The State shall also place on record
        the inspectors' report. Meanwhile, we further give liberty to the
        tanneries to accept the officer in terms of the advertisement and G
        deposit 25% of the price of land with an application for condona-
        tion of delay within three weeks which will be considered by this
        Court.

           Mr. Ashok Sen, Mr. G. Ramaswamy, Mr. AK. Ganguli, Mr.
        D. V. Sehgal and Ms. Harvinder Choudhary, learned counsel H
    402                  SUPREME COURT REPORTS(l996] SUPP.10 S.C.R.

A           appearing for the tanneries have stated that the Government has
            issued certain instructions indicating that the tanneries need not
            shift from the present place. Mr. N.N. Gooptu learned Advocate
            General may take notice of these instructions if any, and clarify
            the position by way of the affidavit."

B On August 11, 1995 Mr. Shanti Bhushan, learned counsel appearing for
  about 208 Calcutta tanneries of Chinese Origin stated that it was techni-
  cally feasible to set up a common effluent treatment plant within the area
  where the tanneries were situated. It was further stated that the tanneries
  were prepared to meet the cost of the project. Although the Board had
C repeatedly stated before this Court that the setting up of the common
  effluent treatment plant/plants at the existing tanneries complexes was not
  possible but despite that this Court gave liberty to Mr. Shanti Bhushan to
  file a short affidavit indicating the details of the project. Thereafter the
  matter came up for further consideration on September 5, 1995 when this
D Court passed the following order :

                "The tanners in the city of Calcutta are primarily located in
            four areas called Tangra, Tiljala, Tapsia, Pagla Danga. Mr. Shanti
            Bhushan, learned counsel appearing for abou.t 208 tanneries
            situated in Tangra has invited our attention to a project for setting
E           up of common ETP which the said tanners have got prepared from
            KROFTA Engineering Ltd., Chandigarh. It is stated that KROF-
            TA are the specialist in designing projects for setting up of effluent
            treatment plants particularly pertaining to tanneries. Mr. Shanti
            Bhushan states that the project is likely to cost about Rs. 5 crores.
F           The total amount shall be pooled by the tanners themselves. Even
            the land which will be required for the project will be purchased
            and utilised by the tanners themselves. According to Mr. Shanti
            Bhushan the plant can be set up at the existing location in Tangra
            where according to him sufficient land is available. It is not possible
            for us to say whether the project as prepared by KROFTA is viable
G           and feasible, keeping in view the location where the tanneries are
            situated. It is suggested by Mr. Shanti Bhushan that NEERI may
            be asked to have a second look at the project prepared by KROF-
            TA. We request Dr. P. Khanna, Director of the NEERI to appoint
            a team of experts to visit the spot and examine the project prepared
H           by KROFTA. We wish to know specifically as to whether the
          M.C. MEHTAv. U.0.1. [KULDIP SINGH, J.]                 403

  project is viable and feasible and can be constructed on the existing A
  location without interfering with the normal life of the residents,
  in that area. Whether the project is capable of controlling pollution
· and odour in totality. It may also be examined whether the project
  caters for the primary as well as secondary stages of the effluent
  treatment. NEERI team may also have the view point of KROFTA B
  Engineering which can also come on the date on which the NEERI
  team proposes to visit. The West Bengal Pollution Cont~ol Board
· and the West Bengal Government may also be consulted by the
  NEERI & Krofta. The NEERI may inform the time and date of
  its visit to the following advocates :
                                                                       c
 1.   Mr. Ashok Sen, Sr. Adv. 19
      Teen Murti Lane,
      New Delhi. Tele.3793259
      Fax. 3792237, 3016936

2.    Mr. Shanti Bhushan, Sr. Adv.                                     D
      Res. B-16, Sector 14 NOIDA.
      Tel. 8527412, 8520348

      Oft C-67, Sector 14, NOIDA
      Tel. 8522668, Fax. 8525729
                                                                       E
      Ch. 412, Lawyers Chambers,
      Delhi High Court,
      New Delhi. 3385266

3.    Mr. G. Ramaswamy, Sr. Adv.
                                                                       F
      Res. A-7, Sector 14, NOIDA
      Tel. 8524357, 8526101

      Off. E-210, Greater Kailash,
      New Delhi. Tel. 6425796, 6428943,
      6476878 (F)                                                      G
4.    Mr. N.N. Guptoo,
      Advocate General,
      State of West Bengal.

5.
                  I
      Mr. Mahesli Chander Mehta,                                       H
    404                   SUPREME COURT REPORTS[1996) SUPP.10 S.C.R. -

A                 Res. 3, Ring Road
                  (next to Vikram Hotel),
                  Lajpat Nagar IV, New Delhi
                  Tel. 6436512

                  Off. 5, Anand Lok, New Delhi
B                 Tel.p445214,6446145

             Since we are already in the process of hearing final arguments and
             there is an urgency in the matter we request Mr. P. Khanna to
             have the matter examined and file a report within three weeks from
             the receipt of this order. Mr. Imtiaz Ahmad, learned counsel will
c            file three copies of the project report along with one copy of the
             brochure pertaining to KROFfA. The Registry shall send by speed
             post/fax one copy of the same to NEERI along with this order

               The expenses of the NEERI shall be borne by Mr. Shanti
             Bhushan's clients.
D
                 We make it clear that other tanneries which are located in
             Tiljala, Topsia and Pagla Darga may, if they have joint project like
             that of Tangra, the same be placed before the visiting team of
             NEERI for their inspection and· report."
E
   This Court has been monitoring this petition for a along time primarily with
   a view to control pollution and save the environment. In the process the
   Calcutta tanneries have been eXtended all possible help to re-locate them-
   selves to the new complex. Despite repeated reports by the Board that the
   Calcutta tanneries were/are discharging highly noxious effluent and are
 F polluting the land and the river, this Court did not order the closure of the
   tanneries because they agreed before this Court and had given clear
   undertaking that they would relocate to the new comple~ lnspite of all the
   efforts made by this Court to provide every possible facility to the Calcutta
   tanneries to shift to the new complex they remained wholly non-coopera-
   tive. With a view to control the pollution generated by the Calcutta tan-
 G neries this Court in the order quoted above agreed to examine the proposal
   regarding setting. up of common effluent treatment plants at the existing
   areas where the tanneries are operating. This Court directed NEERI to
   examine the feasibility of the projects. NEERI submitted its report dated
   September 30, 1995. The report indicates that a four member team in-
.H spected the existing sites of tanneries clusters and examined the issues
                  M.C. MEHTAv. U.0.1. [KULDIP SINGH, J.]                405

relating to the proposed common effluent treatment plants and their            A
locations at Tangra, Tiljola, Topsia and Pagla Danga in Calcutta. The
conclusions reached by the NEERI are as under :

        "5.0 Conclusions

           On review of the proposed CETP schemes for tannery was-             B
        tewater management at Tangra, Tiljola, and Topsia by M/s. Krofta
        Engineering Ltd., Chandigarh and M/s. BOC, Calcutta at Pagla
        Danga; and after detailed discussions with the consultants, the
        inspection team notes that

        - The proposed schemes are neither scientifically sound, nor can
                                                                               c
        be constructed on the existing locations without interfering with
        the normal life of the residents in above mentioned areas

        - The proposed CETP schemes are not capable of treating the
        wastewater laden with high total dissolved solids, chromium, and       D
        nitrogeneous constituents. Thus the proposed CETP designs can-
        not control pollution and odour in totality at the tannery clusters
        at Tangra, Tiljola, Topsia, and Pagla Danga

        - The proposed designs have little scientific basis, and do not
  \     consider the industry - specific requirements of effective was-        E
        tewater treatment in tannery clusters at Tangra Tiljola, Topsia and
        Pagla Danga."

In view of categoric findings of the NEERI and also several reports by the
Board there is no possibility of setting up of common effluent treatment
plants at the existing locations of the Calcutta tanneries. In the facts and   F
circumstances, discussed in this judgment, we have no hesitation in holding
that the Calcutta tanneries shall have to be relocated from their present
locations.

     We may at this stage deal with the contention raised by learned G
counsel for the Calcutta tanneries that the site where the new leather
complex is being set up is a part of the wet land. Pursuant to this Court's
order dated July 14, 1995 Ajoy Sinha, Principal Secretary and Secretary,
Department of Cottage and Small Scale Industries, Government of West
Bengal filed affidavit dated July 29, 1995. Para 7(d) of the affidavit is as
under:                                                                       H -
    406                  SUPREME COURT REPORTS(1996] SUPP.10 S.C.R.

A              "It is further submitted that the said area is clearly outside the
            boundaries of the wetland area as claimed by the writ petitioners
            in O.R. No. 2851 of 1992 in the court of Mr. Justice Umesh
            Chandra Banerjee in the Calcutta High Court. This will appear
            from the map and report submitted by the Collector, South 24
            Parganas which are annexed hereto and marked Letter 'C' and Cl'
B           respectively."

    Along with the affidavit the Principal Secre'tary has annexed letter dated
    July 12, 1995 from District Magistrate, South 24 Pgs. addressed to the
    Principal Secretary. The operative part of the letter is as under :
c           "Kindly recall your verbal instruction in the matter indicated above.
            A sketch map has been prepared on the Thana map showing the
            location of "Wetland" as shown in Annexure - 'C' of the case
            referred above as also the location of the proposed Calcutta
            Leather Complex. It is evident from the sketch plan enclosed
D           herewith that eastern boundary ofthe "Wetland" falls to the West
            and is beyond the boundary of the proposed Calcutta Leather
            Complex site. The technical report prepared by the surveyor is also
            enclosed herewith.

E               Incidentally, it may be mentioned that the bherries mentioned
            in the Writ Petn. are situated within the boundary of Annexure -
            'C' of the Writ Petn. of the case mentioned above.

               It, therefore, shows that the area of the proposed Calcutta
            Leather Complex does not fall within the area of the Wetland."
F
  The Technical Report by the surveyor indicating that the new leather
  complex does not fall within the area of the wetland has also been attached
  along with the affidavit of the Principal Secretary. The site plan enclosed
  with the affidavit clearly shows that the leather complex is outside the
G boundary of the wet land. No material to the contrary has been placed on
  record by the Calcutta tanneries. We, therefore, reject the contention of
  the learned counsel that the new leather complex is a part of the wet land.

          As a result of the monitoring done by this Court towards re-location
    of the Calcutta tanneries the following steps to facilitate the re-location
H   have been undertaken :
                 M.C. MEHTAv. U.0.1. [KUIDIP SINGH, J.)                  407

      1. The State Government has acquired and taken possession of the · A
land for setting up of the new tanneries complex.                         · ·

      2. The State Government has repeatedly offered plots to the Calcutta
tanneries in the new complex but they have not as yet accepted the offers.

      3. 25% of the land-price in the new complex was to be deposited by        B
May 15, 1995 but despite extension asked by the Calcutta tanneries and
granted by this Court the money has not been deposited.

     4. The price of land in the new complex was fixed at Rs. 860 per sq.
meter. At .the asking of the tanneries the price has been reduced to Rs.        C
600 per sq. meter by High Court.

     5. The State Government is ready and willing to extend all the
concessions and benefit necessary in the process of relocation.

      6. A very large number of Calcutta tanneries are operating without        D
setting up of the pollution control devices. Highly noxious and poisonous
effluents are being discharged on the surrounding areas and in the river.

     7. The NEERI and the Board have authoritatively opined that com-
mon effluent treatment plants cannot be constriicted at the sites where the
Calcutta tanneries are at present operating.                                E
      The Calcutta tanneries are even otherwise operating in violation of
the pr<!visions of the Water (Prevention and Control of Pollution) Act, 1974
(the Water Act). Sections 2(dd), (e), (J), (k) 24(1)(a), 25(1), (2) and 26 of
the water Act are as under :
                                                                                F
        "2(dd) "outlet" includes any conduit pipe or channe~ open or
      . closed, carrying sewage or trade effluent or any other holding
    • arrangement which causes or is likely to cause, pollution.

        (e) "pollution" means such contamination of water or such altera-
        tion of the physical, chemical or biological properties of water or G
        such discharge of any sewage or trade effluent or of any other
        liquid, gaseous or solid substance into water (whether directly or
        indirectly) as may, or is likely to, create a nuisance or render such
        water harmful or injurious to public health or safety, or to domes-
        tic, commercial, industri~ agricultural or other legitimate uses, or H,
    408                SUPREME COURT REPORTS[l996] SUPP.10 S.C.R.

A         to the life and health of animals or plants or of acquatic organisms;

          G) "stream" includes -

          (i) nver;

B         (ii) water course (whether flowing or for the time being dry);

          (iii) inland water (whether natural or artificial);

          (iv) sub-terranean waters;

          (v) sea or tidal waters to such extent or, as the case may be, to
c             such point as the State Government may, by notification in
              the Official Gazette, specify in this behalf;

          (k) "trade effluent" includes any liquid, gaseous or solid substance
          which is discharged from any premises used for carrying on any
D         (industry operation or process, or treatment and disposal system),
          other than domestic sewage.

          24. Prohibition on use of stream or well for disposal or polluting
          matter, etc. - (1) Subject to the provisions of this section, -

          (a) no person shall knowingly cause or permit any poisonous,
E
          noxious or polluting matter determined in accordance with such
          standards as may be laid down by the State Board to enter
          (whether directly or indirectly) into any (stream or well or sewer
          or on land);

F         25. Restrictions on new outlets and new discharges. - ((1) Subject
          to the provisions of this section, no person shall, without the
          previous consent of the State Board, -

          (a) establish or take any steps to establish any industry, operation
          or process, or any treatment and disposal system or any extension
G         or addition thereto, which is likely to discharge sewage or trade
          effluent into a stream or well or sewer or on land (such discharge
          being hereafter in this section referred to as discharge of sewage):
          or

          (b) bring into use any new or altered outlet for the discharge of
H         sewage; or
                  M.C. MEHfAv. U.0.1. [KULDIP SINGH, J.)

         (c) begin to make any new discharge of sewage:                         A

            Provided that a person in the process of taking any steps to
        establish any industry, operation or process immediately before the
        commencement of the Water (Prevention and Control of Pollu-
        tion) Amendment Act, 1988, for which no consent was necessary
        prior· to such commencement, may continue to do so for a period         B
        of three months from such commencement or, if he has made an
        application for such consent, within the said period of three
        months, till the disposal of such application.

         (2) An application for consent of the State Board under sub-           C
         section (1) shall be made in such form, contain such particulars
         and shall be accompanied by such fees as may be prescribed.)

        26. Provision regarding existing discharge of sewage or trade
        effluent. - Where immediately before the commencement of this
        Act any person was discharging any sewage or trade effluent into D
        a [stream or well or sewer or on hand), the provisions of section
        25 shall, so far as may be, apply in relation to such person as they
        apply in relation to the person referred to in that section subject
        to the modification that the application for consent to be made
        under sub-section (2) of that section (shall be made on or before E
        such date as may be specified by the State Government by notifica-
        tion in this behalf in the Official Gazette)."

It is obvious from the provisions of the Water Act reproduced above that
in terms of Section 26, the Calcutta tanneries are under an obligation to
obtain consent from the Board before they are permitted to discharge the        F
trade effluent into a stream or on land. According to the affidavits filed by
the Board very large number of Calcutta tanneries have not obtained the
consent reqt!ired under the Water Act. Such tanneries are liable to be
prosecuted under the Water Act.
                                                                                G
      The Calcutta tanneries are also violating the mandatory provisions of
the Environment (Protection) Act, 1986. We direct the Board to examine
individual cases and take necessary action against the defaulting tanneries
in accordance with law.

      This Court in Ve/lore Citizens Welfare Fornm v. Union of India & Ors., H
        410                   SUPREME COURT REPORTS[l996) SUPP. 10 S.C.R.

A       JT (1996) 7 S.C. 375, explained the "Precautionary Principle" and "polluters
        Pays principle" as under :

                "Some of the salient principles of "Sustainable Development", as ·
                culled out from Brundtland Report and other international docu-
                ments, are Inter Generational Equity, Use and Conservation of
B               Natural Resources, Environmental Protection, the Precautionary
                Principle, Polluter Pays principle, Obligation to assist and
                cooperate, Eradication of Poverty and Financial Assistance to the
                developing countries. We are, however, of the view that "The
                Precautionary Principle" and "The Polluter Pays" principle are
c               essential features of "Sustainable Development". The "Precaution-
                ary Principle" - in the context of .the municipal law - means :

                      (i) Environment measures - by the State Government and the
                      statutory authorities - must anticipate, prevent and attack the
                      causes of environmental degradation.
D
                      (ii) Where there are threats of serious and irreversible
                      damage, lack of scientific certainty should not be used as a
                      reason for postponing measures to prevent environmental
                      degradation.
E                     (iii) The "Onus of proof' is on the actor or the developer/In-
                      dustrialist to show that his action is environmentally benign.

                     "The Polluter Pays" principle has been held to be a sound
                 principle by this Court in Indian Council for Enviro - Legal Action
F                v. Union of India, JT 1996 (2) 196. The Court observed, "We are
                 of the opinion that any principle evolved in this behalf should be
                 simple, practical and suited to the conditions obtaining in this
                 country". The Court ruled that "Once the activity carried on is
                 hazardous or inherently dangerous, the person carrying on such
                 activity is liable to make good the loss caused to any other person
G                by his activity irrespective of the fact whether he took reasonable
                 care while carrying on his activity. The rule is premised upon the
                 very nature of the activity carried on". Consequently the polluting
                 industries are "absolutely liable to compensate for the harm caused
                 by them to villagers in the affected area, to the soil and to the
H                underground water and hence, they are bound to take all necessary




    •
                 M.C. MEHTAv. U.O.I. [KULDIP SINGH, J.]                411

        measures to remove sludge and other pollutants lying in the af-       A
        fected areas". The "Polluter Pays" principle as interpreted by this
        Court means that the absolute liability for harm to the environment
        extends not only to compensate the victims of pollution but also
        the cost of restoring the environmental degradation. Remediation
        of the damaged environment is part of the process of "Sustainable     B
        Development" and as such polluter is liable to pay the cost to the
        individual sufferers as well as the cost of reversing the damaged
        ecology.

     The precautionary principle and the polluter pays principle have
been accepted as part of the law of the land."                                C

     It is thus settled by this Court that one who pollutes the environment
must pay to reverse the damages caused by his acts.

      We, therefore, order and direct as under :
                                                                              D
      1. The Calcutta tanneries operating in Tangra, Tiljola, Topsia and
Pagla Danga areas in the eastern fringe city of the Calcutta (about 550 in
number) shall. relocate themselves from their present location and shift to
the new leather complex set up by the West Bengal Government. The
tanneries which decline to relocate shall not be permitted to function at     E
the present sites.

       2. The Calcutta tanneries shall deposit 25% of the price of the land
before February 28, 1997 with the concerned authority. The subsequent
instalments shall be paid in accordance with the terms of the allotment       F
letters issued by the State Government.

      3. The tanneries who fail to deposit 25% of the price of the land as
directed by us above shall be closed on April 15, 1997.

      4. The Board shall issue public notice in two English and two Bengali   G
newspapers for two consecutive days by December 31, 1996 directing the
Calcutta tanneries to deposit 25% of the land-price before the authority
named therein by February 28, 1997. It shall also be stated in the public
notice that the tanneries failing to deposit the amount shall be closed on
April, 15, 1997.                                                              H
    412                   SUPREME COURT REP~RTS(1996] SUPP. 10 S.C.R.

A         5. The Board shall prepare a list of the tanneries which decline/fail
    to deposit 25% of the land-price by February 28, 1997 and send the same
    to the Superintendent of Police and Deputy Commissioner of the areas
    concerned. The Superintendent Police/the Deputy Commissioner con-
    cerned shall close all the tanneries who fail/decline to deposit 25% of the
B   land-price. The said tanneries shall be closed on April 15, 1997.

          6. All the Calcutta tanneries who deposit the 25% of the land- price
    shall be permitted to function at the present sites provided they keep on
    depositing the subsequent instalments in accordance with the terms of the
    allotment letter.
c          7. The State Government shall hand over the possession of the plots
    allotted to the tanneries before April 15, 1997.

          8. The State Government shall render all assistance to the tanneries
    in the process of relocation. The construction of the tannery buildings,
D   issuance of any licences/permission etc. shall be expedited and granted on
    priority basis.

          9. In order to facilitate shifting of the tanneries the State Government
    shall set up unified single agency co!15isting of all the concerned depart-
    ments to act as a nodal agency to sort out all the problems. The single
E   window facility shall be set up by January 31, 1997. We make it clear that
    no further time shall be allowed to the State government to set up the single
    window facility.

         10. The use of the land which would become available on account of
  shifting/relocation/closure of the tanneries shall be permitted for green
F purposes. While framing the scheme the State Government may keep in
  view for its guidance the order of this Court dated July 10, 1996 in IA 22
  in Writ Petition (Civil) No. 4677/1985 relating to the shifting of Delhi
  industries. The shifting tanneries on their relocation in the new leather
  complex shall be given incentives which are normally extended to new
G industries in new industrial estate.
          11. The tanneries which are not closed on April 15, 1997 must
    relocate and shift to the new 1«(3.ther complex on or before September 30,       (
    1997.                          I



H         12. All the Calcutta tanneries shall stop functioning at the present
                  M.C. MEHTAv. U.0.1. [KUlDIP SINGH, J.)                413

sites on September 30, 1997. The closure order with effect from September     A
30, 1997 shall be unconditional. Even if the relocation of tanneries is not
complete they shall stop functioning at the present sites with effect from
September 30, 1997.

     · 13. We direct the Deputy Commissioner/Superintendent Police of
the area roncemed to close all the tanneries operating in Tangra, Tiljola,    B
Topsia and Pagla Danga areas of the city of Calcutta by September 30,
1997. No tannery shall function or operate in these areas after September
30, 1997.

      14. The State Government shall appoint an authority/Commissioner C
who with the help of Board and other expert opinion and after giving
opportunity to the polluting tanneries concerned assess the loss to the
ecology/environment in the affected areas.

      15. The said authority shall further determine the compensation to
be recovered from the polluter - tanneries as cost of reversing the damaged   D
environment. The authority shall lay down just and fair procedure for
completing the exercise.

       16. The amount of compensation shall be deposited wi~h the Collec-
tor/District Magistrate of the area concerned. In the event of non-deposit
the Collector/District Magistrate shall recover the amount from the pol- E
luter-tanneries, if necessary, as arrears of land revenue. A tannery may have
set up the necessary pollution control device at present, but it shall be liable
to pay for the past pollution generated by the said tannery which has
resulted in the environment degradation and suffering to the residents of
the area.
                                                                              F
      _17. We impose pollution fine of Rs. 10,000 each on all the tanneries
in the four areas ofTangra, Tiljola, Topsia and Pagla Danga. The fine shall
be paid before February 28, 1997 in the office of the Collector/District
Magistrate concerned.
                                                                              G
      18. We direct the Collector/District Magistrate of the area concerned
to recover the fines from the tanneries.

     19. The compensation amount recovered from the polluting tanneries
and the amount of fine recovered from the tanneries shall be deposited
under a separate head called "Environment Protection Fund" and shall be H
    414                  . SUPREME COURT REPORTS[1996] SUPP.10 S.C.R.

A utilised for restoring the damaged environment and ecology. The pollution
    fine is also liable to be recovered as areas of land revenue. The taiineries
    which failed to deposit the amount of Rs. 10,000 by March 15, 1997 shall
    be closed forthwith and shall also be liable under the Contempt of Courts
    Act.

B         20. The State Government in consultation with the expert bodies like
    NEERI, Central Pollution Control Board aad Board shall frame
    scheme/schemes for reversing the damage caused to the ecology and
    environment by pollution. The scheme/schemes so framed shall be ex-
    ecuted by the State Government. The expenditure shall be met from the
C   "Environment protection Fund" and from other sources provided by the
    State Government.

          21. The workmen employed in the Calcutta tanneries shall be entitled
    to the right and benefits as indicated hereunder :

D          a. The workmen shall have continuity of employment at the new place
    where the tannery is shifted. The terms and conditions of their employment
    shall not be altered to their detriment.

          b. The period between the closure of the tannery at the present site
    and its restart at the place of relocation shall be treated as active employ-
E   ment and the workmen shall be paid their full wages with continuity of
    service.

           c. All those workmen who agree to shift with the tanneries shall be
    given one years wages as "shifting bonus" to help them settle at the new
    location.
F
        d. The workmen employed in the tanneries which fail to relocate shall
  be deemed to have been retrenched with effect from April 15, 1997 and
  September 30, 1997 respectively keeping in view the closure dates of the
  respective tanneries provided they were in continuous service for a period
G of one year as defined in Section 25B of the Industrial Disputes Act, 1947.
  These workmen shall also be paid in addition six years wages as additional
  compensation.

          e. The workmen who are not willing to shift along with the relocated
    industries shall be deemed to have been retrenched under similarly cir-
H   cumstances as the workmen in (d) above but they shall be paid only one



                                                                                    I
                    M.C. MEHTAv. U.0.1. (KUIDIP SINGH, J.)                415

years wages as additional compensation.                                          A
      f. The shifting bonus and the compensation payable to the workmen
in terms of this judgment shall be paid by May 31, 1997 by the tanneries
which· close on April 15, 1997 and by November 15, 1997 by the other
tanneries closing on September 30, 1997.
                                                                                 B
         g. The gratuity amount payable to any workmen shall be in addition.

       We have issued comprehensive directions for achieving the end result
in this case it is not necessary for this Court to monitor these matters any
further. We are of the view that the Calcutta High Court would be in a
better position to monitor these matters hereinafter. The "Green Bench" is C
already functioning in the Calcutta High Court. We direct the registry of
this Court to send the relevant records, orders, documents etc. pertaining
to the Calcutta tanneries to the Calcutta High Court before January 10,
1997. The High Court shall treat this matter as a petition under Article 226
of the Constitution of India and deal with it in accordance with law and D
also in terms of the directions issued by us. We make it clear that it will
be open to the High court to pass any appropriate order/orders keeping
in view the directions issued by us. We give liberty to the parties to
approach the High Court as and when nece!isary. The matter pertaining t~
Calcutta tanneries is disposed of with costs which we quantity as Rs. 25,000.
                                                                                 E
v.s.s.                                                   Petition disposed of.


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