Holding

The Court directed a comprehensive scheme for inventory, disposal, licensing suspension, relocation to industrial estates, and enhanced forest protection measures for the North‑Eastern states.

Summary

The Supreme Court entertained a writ petition under Article 32 concerning massive quantities of illicitly felled timber in the North‑Eastern states. The Court examined the High Power Committee's report and the Ministry of Environment and Forests' perception on the need for urgent disposal, prevention of further loss, and regulation of wood‑based industries. It directed that inventory of all felled timber be certified, seized timber be transported to depots, and that illegal timber be confiscated and disposed as government timber. The Court ordered suspension of all existing licences for wood‑based units, mandated relocation of permissible units to designated industrial estates, and prescribed pricing, licensing, and transport procedures. It also laid down comprehensive measures for forest protection, scientific management, and the use of proceeds from timber sales for plantation and tribal welfare. The petition was disposed with these extensive directions.

Issues considered

How should the illegally felled timber in the North‑Eastern region be inventoried, transported and disposed?
What licensing regime and relocation requirements should apply to wood‑based industries in the region?
What institutional and procedural mechanisms are required for forest protection and scientific management?
What powers should forest officers be vested with for investigation, prosecution and confiscation?
How should the proceeds from the sale of seized timber be allocated?

Subjects

forest protectiontimber disposalillegal loggingenvironmental lawNorth Eastern regionlicensing suspensionindustrial estatessustainable forestry

Judgment

T.N. GODA YARMAN THIRUMULPAD AND ANR. A
..._ v.
UNION OF INDIA AND ORS. ETC.

JANUARY 15, 1998

[J.S. VERMA, en. DR. A.S. ANAND AND B.N. KIRPAL, JJ.] B

Environmental law :

Forest Protection-North Eastern-Region-Felling of trees-Report
of High Power Committee-Felled Timber-Directions given regarding c
disposal of, pricing offelled timer, Licensing, Scientific management offorests
and action against erring officials.

ORIGINAL JURISDICTION: Writ Petition (C) No. 202/1995.

.< Under Article 32 of the Constitution of India . D
•
Ashok Desai, Attorney General, A.K. Goel, Addi. General, Harish N.
Salve, N.N. Geswami, Rajiv Dhawan, Shanti Bhushan, Dipankar P. Gupta, H.
Nabakumar Singh, Prashant K. Goswami, Anil B. Diwan, G.L. Sanghi, T.L.V.
Iyer, Jayant Das, Tapas C. Roy, P.K. Aggarwal, U.U. Lalit, Ms. Meenakshi
Sakhardande, A.D. N. Rao, P. Parmeshwaran, S. Wasim A. Wadri, Ms. Sushma
E
Suri, Mr. U. Hazarika, S.R. Hegde, Ms. Saikia, A.S. Bhasme, Zailre Angami,
C.K. Sasi, Kailash Vasdev, Gopal Singh H. Wahi, S. Hazarika, Ms. Neithono
Rhetse, K.H. Nobin singh, Ms. S. Janani, Ranjan Mukherjee, Rajiv Mehta,
Anil Agarwalla, P.C. Sharma, Gujarmal, K.M.K. Nair, M.L. Lahoty, Himanshu
Shekhar, Mrs. Madhur Dadlani, S.K. Agnihotri, Aruneshwar Gupta, G. Prakash, F
,,x Ms. Beena Prakash, R.K. Mehta, B.S. Chahar, Ashok Mathur, Jasbir Malik, P.P.
Malhotra, K.R. Nagaraja, K.K. Tyagi, Ms. A Subhashini, R.B. Mishra,
Kamlendra Mishra, H.K. Puri, Ujjwal Banerjee, K.B. Rohtagi, Ms. Apama
Rontagi Jain, S.M. Jadhav, D.M. Nargolkar, R.S. Sodhi, B.B. Singh, G.M.
Kawoosa, A. Mariarputham, Ms. Aruna Mathur, Rana Mukherjee, Ms. Sumita
Mukherjee, Goodwill Indeevar, Mahener Vyas, P.K. Nanohar, D.N. Misra, Parag G
P. Tripathi, Vijay Panjwani, D.N. Goburdhan. Ms. Pinky Anand, M.N. Shroff,
'1·- Ms. Shabnam Lone, Ms. Pumima Bhat, R. Sasiprabhu, Manish Garg, Anees
Ahmad, P.H. Parekh,.Sameer Parekh, Zafar Shah, Ms. Rekha Palli, Ms. Indu
Malhotra, S.K. Bhattacharya, S.K. Dhingra, Ashok K. Srivastava, Umesh
Bhagwat Sanjay R. Hegde for the appearing parties. H
211
212 SUPREME COURT REPORTS [ 1998] l S.C.R.

A The following Order of the Court was delivered :

Learned Attorney General submits that the perception of the Ministry
of Environment and Forests is as under :

I. It has been estimated by the HPC that about 1.20 lakhs cubic meters
B of illicitly felled seized timber, belonging to the State Government is lying in
the forests and depots for varying periods of time between 1 to 2 years and
is thereby getting degraded on account of decay and rott.ing of the wood. It
is necessary to dispose it off at the earliest to minimise any further loss in
its monetary value. There is, in addition, considerable quantity of timber
C claimed by the private industry and local people. In view of the approaching
monsoon season (April 98) all such timber needs to be disposed off with
urgency to save further loss in quality, as also in value, albeit with proper
checks and balances.

2. Given the weak infrastructure in the North-Eastern region, it does
D not seem feasible to transport such huge quantities of timber for auction in '•
markets outside the region in a short time. Moreover, there would be uncertainty
of the response in timber markets far away from the source of timber which
has been ·subject to elements of degradation in varying degrees. There is also
the likelihood of local resentment, in an otherwise sensitive area, if all such
E material is removed from the region without processing and value addition,
which could be conceived as creating an adverse effect on the region's
economy.

3. Even though the proliferation of wood-based industries has been
the main cause of degradation of forests in the North-Eastern States,
F considering the extent of forests (64% of the geographical area) and the
dependence of the local people on the forest resources in the region it is
neither feasible, nor desirable, to ban completely either the timber trade or
running of the wood based industries. However, their numbers and capacities
need to be regulated qua the sustainable availability of forest produce and
they are also required to be relocated in specified industrial zones. Moreover,
G the industrlal requirements have to be suborinated to the maintenance of
environment and ecology as well as bonafide local needs.

4. There shall be no fresh fellings in the forests belonging to the
Government, District and Regional Councils till the disposal of their existing
H stocks of legal and illegal timber.
T.N. GODA YARMAN THIRUMULPAD v. U.0.1. 213
In view of the multi-dimensional issues impinging upon forest protection, A
foolproof institutional arrangements need to be put in place, and made
functional under the strict supervision of the North-East Council (NEC).
Technical backstopping in the forestry matter will be provided by MoEF by
opening a separate cell in the Ministry under an officer of the rank of CCF
and starting a satellite office of the Forest Survey of India at Shillong.
B
'"· We appreciate the perception of MoEF as reflected by the learned
Attorney General.

We have heard the amicus curiae, the learned Althomey General and
learned counsel for North-Eastern States. In view of the report of the High C
Power Committee and taking into account the factors which require an order
to be made by the Court for disposal of the felled timber and ancillary matters
which are lying in the North-Eastern States, we consider it apppropriate to
make the following order:-

.·
\< I. Disposal of timber shall commence only after the concerned Principal D
Chief Conservator of Forests irrevocably certifies that inventorisation of all
felled timber in the State has been completed.

2. As a first measure all inventorised timber, including seized timber
lying in the forests should be immediately transported to specified forests
depots. E
3. All illagal/illicit timber found in possession of an offender or
abandoned in the forest shall be confiscated to the State Government and
shall be disposed off in accordance with the procedure to be adopted for
disposal of Government timber.
F
4. Out of the seized timber, logs found suitable for manufacture of
. veneer and plywood shall be processed by the State Governments within their
own factories and by hiring such facilities. The finished product can be
marketed freely.

5. The remaining timber belonging to Government and District Councils
G
shall be first offered for sale to Government Departments for their bonafide
official use and the rest shall be. sold in public auction or through sealed
tenders after fixing floor price by an Expert Committee with a representative
from the MoEF. Private timber owners whose stocks have been cleared by
HPC shall have the option of selling t!J.e timber either in the auctions organised H
214 SUPREME COURT REPORTS (1998] l S.C.R.

A by the State Forest Departments/Forest Development Corporations or directly.

6. The State Governments shall formally notify industrial estates for
locating the wood based industrial units in consultation with the Ministry of
Environment and Forests.

B 7. Timber as per inventory cleared by HPC may be allowed to

(a) be converted/utilised if the unit is located within the notified
industrial estate. As the relocation in proposed industrial estates may take
some time, existing units with only legal stocks may convert this timber, as
one time exception, notwithstanding anything contained in para 12 hereunder,
C till such stocks last subject to the maximum period as per the norms prescribed
by the High Power Committee (vide their III report) or six months whichever
is less. Any stock remaining thereafter shall vest in the State Government.
However, fresh trees/timber will be allotted to these units only when they start
functioning within the designated industrial estates. The territorial Deputy
D Conservator of Forests Divisional Forest Officer shall be responsible for
ensuring that such units process the legal stocks only and will closely
monitor the various transit permits (inward and outward) and maintenance of
the prescribed records. All such records shall be countersigned (with date)
by an officer not less than the rank of an Assistant Conservator of Forests.

E (b) allowed to be sold to other units which are located in these industrial
estates subject to the condition that such transactions are routed through an
authority notified/constituted by the Principal Chief Conservator of Forests.

(c) The State Government shall ensure disposal of illegal timber before
permitting the conversion/disposal of legal/authorised timber available with
F the wood based industries.

8. Transportation of auctioned timber (as well as legal timber) including
sawn timber outside the North-Eastern Region shall only be done through
railways under the strict supervision of the Forest Department. The Railway
Board shall give priority for providing rakes/wagons for such transportation.
G
9. Modalities for transportation of timber/timber products and
alternative modes in case of difficulties in transportation by Railways, will be
worked out by the State Governments in concurrence of the Ministry of
Environment and Forests.

H 10. Existing inventorised stock of timber originating from plantations in
T.N. GODAVARMANTHIRUMULPADv. U.0.1. 215

private and community holdings in the States ofMaghalaya, Mizoram, Tripura, A
Manipur and Nagaland may be disposed of by their owners under the relevant
State laws and rules. In States where such laws and rules do not exist, the
necessary laws and rules may be framed within six months.

Pricing of Timber
B
11. The State Governments shall ensure that timber/forest Produce is
supplied to industries, including Government Undertakings, at full market rate.
The existing royalty shall be reviewed and revised upwardly by a Committee
constituted under the Chairmanship of Principal Chief Conservator of Forests
With representatives form the concerned Departments and Shall also include C
a representative of Ministry of Environment and Forest. The prices of timber
for which royalty has not been realized in full shall also be reviewed by this
Committee and the concerned industry shall be required to pay the revised
price or the royalty (including surcharge, fee etc.,) whichever is higher after
deducting the part royalty already paid.
D
-..:' Licensing

12. Licenses given to all wood based industries shall stand suspended.

13. Wood based industries which have been cleared by the High Power
Committee without any penalty shall have the option to shift to industrial E
estates which shall be identified by the States within 45 days and developed
within six months thereafter.

14. Units which have been penalised because they were found to
exceed normal recovery norms, but were within 15% fo the said norms, will
have a right to approach the High Power Committee on or before 9th February, F
..: 1998. The High Power Committee shall examine all relevant material, in particular
the income tax and excise records for the proceeding three years. The High
Power Committee shall dispose of such applications within 45 days thereafter
and such mills may be granted licence of the High Power Committee finds that
it is not against public interest so to do. G
15. Units which have not furnished details/information to the High
Power Committee so far or which have not been cleared by the High Power
Committee, shall not be granted any licence and the stocks in their custody
if any, shall be confiscated to the State Goverun.ent . In case of leased mills
belonging to corporations/trusts/cooperative societies owned/controlled/ H
216 SUPREME COURT REPORTS (1998] l S.C.R.

A managed by the State Government and where the lessees have shall stand
revoked. Such mills shail, however, be eligible for relicensing subject to the
condition that these mills are not leased out in future except to a entity fully
owned by the Government.

16. Units who do not want to shift to the designated industrial estates
B shall be allowed to wind up as per law.
17. Henceforth, licenses of units shall be renewed annually only in
those cases where no irregularity is detected.

18. There shall be a complete moratorium on the issue of new licenses
C by the State Governments or any other authority for the establishment of any
new wood based industr; [or the next five years after which the situation
shall be reviewed with the concurrence of Ministry of Environment and
Forests.

D 19. Number of wood based industries shall be determined strictly within
the quantity of timber which can be felled annually on sustainable basis as ·,..
determined by the approved working plans from time to time. If it is found
that units after relocation in industrial estate have excess capacity then their
capacities shall be reduced pro rata to remain within the sustainable levels.

E Forest Protection

20. An action plan shall be prepared by the principal Chief Conservator
of Forests/Chief Forest Officer for intensive patrolling and other necessary
protective measures to be undertaken in identified vulnerable areas and
quarterly report shall be submitted to the Central Government for approval.
F The approved plan together with the modifications, if any, shall be acted
upon.

21. To en·sure protection of the forest wealth the forest officers in the
North Eastern States may be empowered with authority to investigate, prosecute
G and confiscate on the lines of the powers conferred on the forest officers in
many other States in the country.

22. The State Governments shall be responsible for providing all
facilities including security and police force to strictly enforce forest protection
measures to stop illicit felling, removal and atilisation of such timber. The
H Chief Secretary shall review the various matters concerning forest protection
-- T.N. GODA YARMAN THIRUMULPAD v. U.0.1. 217

and development in his State at least once every six months with senior forest A
officers upto the rank of Conservator of Forests. Regional Chief Conservator
of Forests of MoEF shall be invited to all such meetings.

Scientific Management of Forest

23. Working plans for all forest divisions shall be prepared by the state B
Governments and got approved from the Government of India. Forest working
shall be carried out strictly in accordance with the approved prescriptions of
the working plans. The working plans should be prepared within a period of
two years. During the interregnum the forests shall be worked according to
an annual felling programme approved by the MoEF which shall be C
incorporated in the concerned working plan. In case a working plan is not
prepared within this time frame, future fellings will remain suspended till the
regular working plan is prepared and got approved.

24. The forests under the District, Regional and Village Councils shall
be worked in accordance with working schemes which shall specify both the D
programme for regeneration and harvesting and whose period shall not be
less than 5 years.

25. The maximum permissible annual yidd in the ad interim measures
suggested above, shall not exceed the annual harvestable yield determined
by Ministry of Environment and Forests. The plantation scheme raised on E
private and community holdings shall be excluded from these requirements
but shall be regulated under respective State rules and regulations.

26. The States shall identify ecologically sensitive areas in consultation
with leading institutions like the Indian Council of Forestry Research and
Education, Wildlife Institute of India, North Eastern Hill University, North F
Eastern Regional Institute of Science and Technology, leading NGos, etc., and
ensure that such areas .are totally excluded from any kind of exploitation. The
minimum extent of such areas shall be I 0% of the total forest area in the State.

Action against officials
G
27. The State Government shall identify within 45 days all those forest
di.visions where significant illegai fellings have taken place and initiate
disciplinary/criminal proceedings against those found responsible. The first
action taken report (A TR) in this regard shall bt ~ubmitted to the Central
Government within three months which shall be followed by quarterly reports H
11
218 SUPREME COURT REPORTS [1998] l S.C.R.

A (QRs.) till the culmination of the matter.

General

28. Timber extraction in forests irrespective of ownership, except in
private plantations, shall be carried out by a State agency only. The States
B shall endeavour to adopt pattern obtaining in the state of Himachal Pradesh
as describ~d in para 2.5.3 of the Rajamani Committee Report.

If there be any local laws/customs relating to the forest in any State,
the concerned State Government may apply to this Court for the needed
C modification, if any, with alternative proposal.

29. The penalties levied on the wood based industries as ordered by
the High Power Committee shall constitute the revolving fund to meet the
expenses involved in collection and transportation of seized illegal timber.
These can be augmented by utilising the funds generated by the initial sales
D of illegal timber already available in the forest depots.

30. Each State shall constitute a State level Expert Committee for matters
concerning the preparation of working plans, their implementation, development
of industrial estates, shifting of industrial units to these estates, rules and
regulations regarding the grant and renewal oflicenses to wood based industry
E and other ancillary matters, under the Chairmanship of Principal Chief
Conservator of Forests and with a nominee of Ministry of Environment and
Forests as one of its members., Any decision of this Committee which is not
acceptable to the State Government shall be referred to the Central Government.

31. The existing permit system in Arunachal pradesh shall stand
F abolished. The State Government may provide financial assistance in cash or
kind in the form of timber only for the bonafide use of the local tribals alone.
Such concessional timber shall not be bartered or sold. Felling of trees for
such purpose shall be carried out only by a Government agency.

32. The total sale proceeds from the sale of seized timber, as well as
G timber products manufactured and disposed by the State Government (vide
para 4) and penalties would be credited to the State Revenues. Out of this,
the State shall utilise one half of the amount for raising forest plantations by ·')
local tribal population and as assistance to the tribals. The remaining one half
of the total sale proceeds, after deduction of the expenses therefrom, would
H go to the State coffers for other developmental activities in the State.
- T.N. GODAVARMAN THIRUMULPAD v. U.0.1. 219
33. (The States shall ensure that sufficient budgetary provisions are A 1
made for the preservation of biodiversity and protection of wildlife. J
34. To ensure that timber/forest produce smuggled across the border
may not be used as a cover for trade in illegal timber, it is directed that all B
such timber seized by Customs/Border Security Force should not be redeemed
in favour of individuals who are smuggling it but should be confiscated and
handed over to the concerned State forest Department along with offenders,
vehicles, tools and implements for prosecution under the relevant acts.
c
35. For the proper and effective implementation of these orders, Ministry
of Environment and Forests will have the liberty to issue suitable directions
consistent with this order.

36. Action taken report be filed by each State Government and the
Ministry of Environment and Forests every two months. D

37. Liberty to apply for modification/clarification in case of need.

(NOTE : In this order the term "State Government" would include
District Council also except where the context implies otherwise.)
E
R.P. Petitons still Pending.