T. N. GODAVARMAN THIRUMULPADversusUNION OF INDIA & ORS.

                    [2014] 14 S.C.R. 279


           T. N. GODAVARMAN THIRUMULPAD                         A
                              v.
                  UNION OF !NOIA &ORS.
(1.A."Nos. 2143 with 2283, 3088, 3461, 3_479, 3693 in 2143,
  827, 1122, 1337, 1473 and 1620 and 1693 in 1473 and           B·
                           3618)
                              h
            (Writ Petition (Civil) No. 202 of 1995)
                      MARCH 12, 2014                            c
    [A. K.PATNAIK, SURINDER SINGH NIJJAR AND
     FAKKIR MOHAMED IBRAHIM KALIFULLA, JJ.] ·
     Environmental Laws:
      Environment (Protection) Act, 1986: Gudalur and Nilgiri D
forests - Public Interest Litigation - Destruction of tropical
rain forest resulting in ecological imbalances affecting lives
and livelihood of the people living in the State of Tamil Nadu
- Compulsory Afforestation Fund - Release of -/As by
different States seeking release of some funds for completing E
the task of compulsory afforestation - Held: Order dated 1O'" •
July 2009 modified - National CAMPA Advisory Council
(NCAC) directed to finalize and issue guidelines before 1st
May, 2014 regarding the activities for which the use of the
CAMPA funds would not be permissible and the activities for F
which a ceiling on the use of the CAMPA funds would apply
- These guidelines to be strictly followed by the State CAMPA
-Ad-hoc CAMPA permitted to release annual amount equal
to 10% of the principal amount lying to the credit of each
State/Union Territory, out of the interest receivable by it with G
effect from financial year 2014-2015 onwards - No money
out of the amounts available with Ad-hoc CAMPA to be
transferred or utilized without the leave of the Supreme Court
- National CAMPA Advisory Council to file a Status Report
                                                                H
                             279
280         SUPREME COURT REPORTS                [2014] 14 S.C.R.

A     within a period of three months regarding the monitoring and
      evaluation of the works being undertaken, by utilizing the
      funds released by CAMPA - Forest Act, 1927 - Forest
      (Conservation) Act, 1980 - Tamil Nadu Hill Stations
      Preservation of Trees Act.
B           The instant writ petition was filed as a PIL under
      Article 32 of the Constitution of India for and on behalf
      of the people living in and around the Nilgiri Forest on
      the Western Ghats. The petitioner sought to challenge
      the legality of the actions of the State of Tamil Nadu, the
C     Collector, Nilgiris District and the District Forest Officer,
      Gudalur and the Timber Committee in destroying the
      tropical rain forest in the Gudalur and Nilgiri areas in.
      violation of the Forest Act, 1927, Forest (Conservation)
      Act, 1980 and Tamil Nadu Hill Stations Preservation of
D     Trees Act and the Environment (Protection) Act, 1986 as
      it has resulted in serious ecological imbalances affecting
      lives and livelihood of the people living in the State of
      Tamil Nadu. The petitioner has alleged that the
      respondents have in collusion with certain vested
 E    interests allowed trespassers to encroach and enter
      upon the forest land forthe purpose of felling trees and
      conversion of forest land into plantations and well
      organized rackets existed between the forest authorities,
      timber contractors and the local authorities which are
 F    facilitating the cutting and removal Of trees and timber
      in gross violation of Forest Coriservation Act.
       The instant Interlocutory Applications were filed
  seeking either general or specific directions in relation
G to various issues concerning the· protection and
  improvement of environment. The Supreme Court has
  been continuously monitoring the enforcement of the
  protected measures directed to be taken by the various
  Central/State authorities on the basis of the
  recommendations made by the relevant expert bodies.
 H
                                            ..
 T. N. GODAVARMANTHIRUMULPAOv. UNION OF INDIA                  281


The Court noticed on 29'" October, 2002, that the amount       A
collected by various States from the user agencies to
whom permissions were granted for using forest land
for non forest purposes was not being utilised for such
compensatory afforestation. The Court directed that the
Ministry of Environment and Forest (MoEF) should               B
formulate a Scheme whereby, whenever any permission
is granted for change of user of forest land for non-forest
purposes, and one of the conditions of the permission
is that, there should be compensatory afforestation, then
the responsibility for the same is that of the user-agency     c
and should be required to set apart a sum of money for
doing the needful. The CEC examined the issue and
recommended that it would be desirable to create a
separate fund for Compensatory Afforestation, wherein
all the money received from the user-agencies would be         o
deposited and subsequently released directly to the
implementing agencies as and when required. The funds
received from a particular State would be utilized in the
same State. There was a consensus among the States
and the Union Territories that such a fund be created. It      E
was also recommended that the funds should not be a
 part of general revenues of the Union or all the States or
of the Consolidated Funds of India. The CEC Report
also contemplated the involvement of user-agencies for
 Compensatory Afforestation. Pursuant thereto, the             F
 MoEF issued a notification on 23'd April, 2004
 constituting a "Compensatory Afforestation Funds
Management and Planning Authority (CAMPA)" as an
authority under Section 3(3) of the Environment
(Protection) Act, 1986. Unfortunately, the said notification   G
only remained on paper and it was not made functional
till date by the MoEF. Huge amount of money received
from the user-agencies towards the NPV, Compensatory
Afforestation etc. were lying with various authorities
without any effective control and monitoring as the            H
                   ..
282      SUPREME COURT REPORTS              [2014] 14 S.C.R.


A  CAMPA notification was not made operational by the
   MoEF. Therefore, by order dated 5'" May, ·2006, the
   Supreme Court accepted a suggestion made by the CEC
   for constitution of an Ad-hoc body till CAMPA becomes
   operational. All State Governments/Union Territories
B were directed to account for and pay the amount
   collected with effect from 30'" October, 2002 in conformity
   with the order dated 29'" October, 2002 to the said Ad-
   hoc body (Ad-hoc CAMPA). The suggestions were made .
   by the CEC that all the monies recovered on behalf of
c the 'CAMPA' and which are presently lying with the
   various officials of the State Government are transferred
   to the bank account(s) to be operated by this body; and
   get audited all the monies received from the user
   agencies on behalf of the 'CAMPA' and the income earned
D thereon by the various State Government officials. These
   suggestions were accepted. In accordance with the
   directions of the Supreme Court, the money already
   received as well as the money being received towards
   the NPV etc. were transferred to the Ad-hoc CAMPA and
E invested in the fixed deposit with National Banks. On 2•d
   April, 2009, MoEF issued "the guidelines of State
   Compensatory Afforestation Fund Management and
   Planning Authority (State CAMPA)". By order dated 10'"
   July, 2009, the Supreme Court directed that the guidelines
F and structure of the State CAMPA as prepared by MoEF
   may be notified and implemented. The Court also
   permitted the Ad-hoc CAMPA to release about Rs.1000
   crore per year for the next five years, in proportion of
 . 10% of the principal amount pertaining to the respective
G States/Union Territories, inter alia, subject to the
   condition that the State Accountant General shall carry
   out, on annual basis, the audit of the expenditure
   incurred every year out of the State CAMPA funds. It was
   further directed that an amount upto 5% of the amount
H released to the State CAMPA, i.e., upto Rs.50 crore per
  T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA            283


  annum, may also be released and utilized by the National A
  CAMPA Advisory Council constituted under the
  Chairmanship of Ministry of Environment and Forest for
  monitoring and evaluation and for the implementation
  of the various schemes as given in the State CAMPA
  guidelines. The State CAMPA was constituted for each B
  State/Union Territory. The Ad-hoc CAMPA released the
  funds to each of the State CAMPAs as per the approved
• Annual Plan of Operation (APO). At present, a total sum
  of Rs.1000 crore is permitted to be released to the State
  per year. The State-wise accounts of the principal c
  amounts and cumulative interest is to be maintained by
  the Ad-hoc CAMPA. The funds are not permitted to be
  utilized for any purpose other than those authorized by
  the Court. The administrative expenses of CAMPA are
  incurred by the CEC. With the establishment of the Ad- o
  hoc CAMPA, huge sums of money have accumulated
  which can be released to the State CAMPA for utilization,
  for protection and for the improvement.of the national
  environment.               ·
       The instant IAs were filed by different States seeking E
 release of some funds for completing the task of
 compulsory afforestation. The CEC also recommended
 that the Supreme Court may in partial modification of its
 earlier order dated 1O'h July 2009 consider permitting the
 Ad hoc CAMPA to annually release from the financial year F
 2014-15 onwards, out of the interest received/receivable
 by it, an amount equal to 10% of the principal amount
 lying to the credit of each of the State/UP at beginning of
 the year to the respective State CAMPA subject to certain
 conditions.                                                  G
      Disposing of the IAs, the Court
     HELD: 1. The recommendation of CEC are
 accepted. The National CAMPAAdvisory Council (NCAC)
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284        SUPREME COURT REPORTS                  [2014] 14 S.C.R.


A will finalize and issue guidelines before 1st May, 2014
  regarding the activities for which the use of the CAMPA
  fun~s will not be permissible (such as foreign study·
  tours) and the activities for which a ceiling on the use of
  the CAMPA funds will apply (such as purchase of
B vehicles and construction of residential I office
  buildings). These guidelines will be strictly followed by
  the State CAMPA. The order dated 10th July, 2009 is
  modified accordingly. The Ad-hoc CAMPA is permitted -
  to release annual amount equal to 10% of the principal
C amount lying to the credit of each State/Union Territory,
  out of the interestreceivable by it with effect from financial
  year 2014-2015 onwards. The release of the said funds
  shall be subjected to certain conditions. It is further
  directed that no money out of the amounts available with
o Ad-hoc CAMPA will be transferred or utilized without the
  leave of this Court. It is further directed thatthe National
  CAMPA Advisory Council will file a Status Report within
  a period of three months regarding the monitoring and
  evaluation of-the works being undertaken, by utilizing
E the funds released by CAMPA. [Paras 31 to 33][304-F-H;
  305-A-D]
           M.C.Mehta v. Kamal Nath & Ors. 1997 (1) SCC
           388: 1996 (10) Suppl. SCR 12 - referred to.
                           Case Law Reference:
 F
         · 1996 (10) Suppl. SCR 12        referred to       Para 16
       CIVIL ORIGINAL JURISDICTION: I.A. Nos. 2143 with
  2283,3088,3461,3479,3693in2143,827, 1122, 1337, 1473
  AND 1620 and 1693 IN 1473 and 3618 in Writ Petition (Civil)
G No. 202 of 1995.
           Under Article 32 of the Constitution of India.
           Manjit Singh, AG, Harish N. Salve, Uday U. Lalit, P.S.
      Patwalia andAnoop G. Choudhari, Sr. Adv. M.K. Subramanian,
H
   T. N. GODAVARMANTHIRUMULPADv. UNION OF INDIA                       285


    Sp. G. P., A. D. N. Rao, Siddhartha Chowdhury, P. K. Manohar, A
· l<eshav Thakur, Saket Sikri, Ms. Ranjeeta Rohatgi, Harris
    Beeran, Ms. C.K. Sucharita, Anil Shrivastava, Riku Sarma,
    Navnit Kumar (For M/s. Corporate Law Group), Gopal Singh,
    Manish Kumar, C.D. Singh, Ms. Sakshi Kakkar, T. Mahipal,
    Ms. Hemantika Wahi, Ms. Preeti Bhardwaj, TarjitSingh, Vinay B
    Kuhar, Ms. Nupur Choudhary, Kamal Mohan Gupta, Ms. Pragati
    Neekhra, Ashok Mathur, Gopal Prasad, Parikshit P. Angad,
    Ms. Anitha Shenoy (For Mr. V.N. Raghupathy),. Ms. Bina
    Madhavan, Naveen Sharma, Ms. Swati B. Sharma, Mishra
    Saurabh, Sanjay Kharde, Aniruddhya P. Mayee, Kh. Nobin c.
    Singh, Ranjan Mukherjee, P.· V. Yogeswaran, Ranjan
   ·Mukherjee, Ms.Anil Katiyar, Shibashish.Mishra, Kuldip Singh,
    Milind Kumar, For M/s.Arp.utham, Aruna & Co., B. Balaji, R.
    Rakesh Sharma, Selvin Raja, Ms. Rachna Srivastava, Utkarsh
  . Sharma, Amit Kumar Singh,Abhishek Choudhary, Ms. Saumya D
    Chakraborty, Anip Sachthey, Col. R. Bala'subramanian, K. V. ·
    Jagdishvaran, Ms. G. Indira, D.S. Mahra, V.G. Pragasam, S.J.
    Aristotle and Prabu Ramsubramanian, Adlis. for the appearing .
    parties.                                                    ·
        The Judgment of the Court was delivered by ·                   E
       SURINDER SINGH NIJJAR, J. 1.This order will
  dispose o!the I.As. noted above.·
          2. Writ Petition (C) No. 202 of 1995 was file~ as a PIL
   under Article 32 of the Constitution of )l)dia for and on behalf of. F
   the people living in and around the Nilgiri Forest on the Western .
   Ghats. The petitioner sought to challenge the legality and the
   validity of the actions ofthe·state of Tamil Nadu, the Collector,
 · Nilgiris District and the District Forest Officer, Gudalur and the
   Timber Committee represented through the Collector, Nilgiris G
   (Respondent Nos. 2_to 5 respectively), in destroying the tropical
   rain forest in the Gudalur and Nilgiri areas in violation ofthe
   ForestAct, 1927, Forest (Conservation) Act, 1980 arid Tamil
   Nadu Hill Stations Preservation of Trees Act and the· ·
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286        S!JPREME COURT REPORTS                  _[2014] 14 S.C.R.


A . Environment (Protection) Act, 1986. This, according to the
    petitioner, has resulted in serious ecological imbalances
    affecting lives and livelihood of the people living in the State of ·
    TamilNadu.
            3. The petitioner has highlighted that the respondents
8    have in collusion with certain .vested interests allowed
     trespassers to encroach and enter upon the forest land for the '
     purpose of felling trees and conversion of forest land into
     plantations. It was pointed out that the encroachers on the
     forest land have been indiscriminately cutting and removing
C valuable Rosewood trees, Teak trees and Ayni trees, which
     are immensely valuable and are found exclusively in the
     aforesaid forest. It was pointed 'out that loss of such trees
     would be permanent and irn~parable to the present and future
     generations to come. The petitioner has clear'ly pleaded that
D the value attached to Rosewood and Teak wood has resulted
     ina    mad
             .  -··
                    rush
                      .  '
                           by timber contractors
                                        ),  .     in collusion with
     Government agencies, for making quick profits without any ·
     regard to the permanent damage and destruction caused to
     the rain forest and to the eco-system of the region. The
E petitioner also pointed out that cutting and removing of trees
     is notlimited only to the mature trees. In their anxiety to make
     huge profits the entire forest areas are being cleared, by
     indiscdminate felling of trees~ The petitioner also pointed out
    that the national policy adopted in the year 1952 provided for
F . the protection and preservation of forests. The existence of
     large areas of land covered under forest is recognized as a
     valuable segment of the national·heritage. The petitioner also
     pointed out that the protection from exploitation of forests, in
     particular natural forests, is imperative as such forests once
G destroy~d can not be regenerated to their natural state. The
     petitioner has pleaded that the destruction of rain forests would
     adversely affect the environment, eco-system, the plants and .
     animals living within the forests. This would result in such
   . destruction, which would ultimately result in drastic changes in
 H
 T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                   287
            (SURINDER SINGH NIJJAR, J.]

the environment and the quality of life of people living in and A
around the forests. The petitioner also highlighted that although
the national policy has provided that 33% of the land mass of
India shall be covered with forests, the present extent of the
forest covered areas was below 15%. The natural rain forest
cover was only around 5%. Such meager forest cover had led B
to the enactment of the Forest (Conservation) Act, 1980.
Statement of objects and reasons of the aforesaid Act is as
follows:-
     .( 1) Deforestation causes ecological imbalance and leads
          to environmental deterioration. Deforestation had       C
          been taking place on a large scale in the country and
          it had caust:id widespread concern.
     (2) With a view to checking further deforestation, the
        President promulgated on the 25th October, 1980, the      D
        Forest (Conservation). Ordinance, 1980. The
        Ordinance made the prior approval· of the Central
        government necessary for de-reservation of reserved
        forests .and for use' of forest-land for· non-forest
        purposes. The Ordinance also provided for the             E.
        constitution of an advisory committee to advise the
        Central Government with regard to grant of such
        approval.    ·
       4. Apart from pointing out the provisions of the aforesaid
Act, the petitioner also protested that the population living in F
the areas mentioned above is being deprived of the right to
live in a clean and pollution free environment and, therefore,
their fundamental rights protected under Article 21 of the
Constitution of India are being violated. The petitioner pointed
out that the preservation and protection of forests is recognized G
as essential for maintaining a clean and pollution free
environment. He further pointed out thatthe rain forests, which
are found only in the southern part of the Western Ghats contain
several rarest species of plants and animals and also the main
                                                                  H
288         SUPREME COURT REPORTS                  .[2014] 14 S.C.R.


A     source of water supply to the rivers flowing from the Ghats.
      The large scale denuding of the green cover on the Western
      Ghats has resulted in shortage of water in the rivers and has
      adversely ;:iffected the people living on the water flowing from
      the rivers.
B       5. This apart, it was pointed out that forests are the main
  source of livelihood for a large number of people, who live
  within and around the forests. It was also pointed out that the
  rain forests are the source of life and the plants and animals
  contained within it are useful for enhanced quality of life enjoyed
c by mankind. The bio-diversity of the rain forest, it was
  emphasized, has to be preserved for the welfare and well being
  of future generations of mankind. The petitioner was
  constrained to move this Court in the present writ petition being
  so perturbed by the large scale destruction of the forests and
D other natural resources found in the three States namely Tamil
  Nadu, Karnataka and Kerala. It was lamented that all the
  protective legislation· enacted by Union of India are nothing
  more than statements ·in the statute books, in as much as the
  forest land and its wealth are being plundered everyday. He
E pointed out that it can no longer be deni_ed that well organized
  rackets exist between the forests authorities, timber contractors
  and th!( local authorities which are facilitating the cutting and
  removal of trees and timber in gross violation of Forests
  Conservation 'Act. The petitioner has given details of the
F manner il'l which individuals, contractors and firms were
  clandestinely permitted to trespass and plunder the forest area
  for the invaluable. Rosewood trees. It was stated that each
  tree commands a price of Rs.15 to 20 Lakhs in the market.
  When all the efforts of all the concerned individuals, NGOs and
G other social activists failed; the petitioners were constrained
  to knock on the doors of this Court byway of writ petition under
  Article 32 of the Constitution of India. The prayers made in the
  aforesaid writ petitions are as under:- ·
            (a) issue an appropriate writ, order or direction directing
H
  T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                       289
                 [SURINDER SINGH NIJJAR, J .]

          the State of Tamil Nadu to take steps to stop all felling A
          and clearing activities in the forests of Nilgiris District .
          in the State of Tamil Nadu.
       (b) issue an appropriate writ, order or direction directing
          the respondents 2 to 5 to stop conversion of forest
          lands to plantation or other purposes.                   ·8
       (c) issue an appropriate writ, or direction directing
          respondents 2 to 5 to take steps to remove all
          unauthorised and illegal occupants of forest land in
          the Nilgiri District of Tamil Nadu.                           c
       (d) issue an appropriate writ, order direction directing
          respondent 2 to 5 to stop the transport and removal of
          timber from the forests in the Nilgiri District.
       (e) issue an appropriate writ, order direction to appoint        D
          a committee for assessing the damage caused to the
          forest in the western ghats in the State of Tamil Nadu,
          Karntaka and Keral and in particular the hills of the
          Nilgiris mountain.
       (f) Pass such other and further orders.                          E
        6. Understandably disturbed by the horrendous fact
  situation narrated in the writ petition, this Court issued notice
. to not ·only the concerned States but also to .other States.
  Thereafter, the writ petition is pending.
                                                                         F
         7. In this writ petition, Interlocutory Applications have been
  filed seeking either general or s·pecific directions in relation to · ·
  various issues concerning the protection and improvement of
  environment. The subjects covered by Interlocutory Applications
  at various stages ranged from protection of existing. forest G
  cover; improvement in the forest cover; protection of lakes,
 .rivers and wild life; and protection of flora and fauna and the
  ecological system of the country. This Court has been
  continuously monitoring the enforcement of the protected

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290         SUPREME COURT REPORTS                [2014] 14 S.C.R.


A      measures directed to be taken by the various Central/State·
      .authorities on the basis of the recommendations made by the
       relevant expert bodies.              ,
          8. On 29'" October, 2002, this Court considered I.A.
    No. 566, in which this Court had taken suo-moto notice on the
8 · Statement of Mr. K.N. Ra\.val, Additional Solicitor General to
    the effect that the amount collected by various States from the
    user agencies to whom permissions were granted for using
    forest land for non-forest purposes, was not being utilized for
    such compensatory afforestation. It was pointed out that
C moneys paid by user agencies to State Governments for
    compensatory afforestation were utilized for such afforestation
    only to the extent of 63% of the funds actually realized by the
    State Governments. The shortfall even at that time was nearly
    Rs. 200 crores. This Court, therefore, recorded that on the
D next date, it would consider as to how this shortfall was to be
    made good. It was directed that the Ministry of Environment
    and Forest should formulate a Scheme whereby, whenever
    any permission is granted for change of user of forest land for
    non-forest purposes, and one of the conditions of the
E permission is that, there should be compensatory afforestation,
    then the responsibility for the same is that of the user-agency
    and should be required to set apart a sum of money for doing
    the needful. It was further provided that in such acase, the
    State Governments concerned will have to provide or make
F available land on which forestation can take place. This land
    may have to be made available either at the expense of the
    user-agency or of the State Governments, as the State
    Governments may decide. It was further directed that the
    scheme which is framed by the MoEF should be such as to
G ensure that afforestation takes place as per the permissions
    which are granted and there should be no shortfall in respect
    thereto.
           9. It was also brought to the notice of this Court on the
      basis of the statement placed on record in l.A.Nos.419 and
H
  T. N. GODAVARMAN THIRUMULPAD v. UNION.OF INDIA                        291
             [SURINDER SINGH NIJJAR, J.]

420 that the funds accumulated for diverting forest area for            A
non-forest purposes, compensatory afforestation, although
actually received, had not been appropriately utilized. The CEC
examined this question. The report; inter alia, provided that
there should be a change in the manner in which the funds are
released by the State Governments relating to Compensatory              B
Afforestation. The CEC recommended that it would be
desirable to create a separate fund for Compensatory
Afforestation, wherein all the money received from the user-
agencies are to be deposited and subsequently released
directly to the implementing ageilcies as and when required.            c
The funds received from a particular State would be_ utilized in
the same State.
       10. There was a .consensus among the States and the
 Union Territories that such a fund be created. It was also
 recommended that the funds should not be a part of general             D
 revenues of the Union or all the States or of the Consolidated
 Funds of India. The CEC Report also contemplated the
 imlolvement of user-agencies for Compensatory Afforestation.
        11. The CEC in its report dated 5'h September, 2002             E
  made eight recommendations which were accepted ·by the
  Union of India in an affidavit filed in response to the aforesaid
. report. The Union of India further stated, in the affidavit, that
  major institutional reorganization of the present mechanism
  has to be undertaken. It was proposed that comprehensive
  rules will be framed which will inter alia relate to the 'procedure   F
  and compensation. It was also proposed thatthere shall be a
  body for the management of the Compensatory Afforestation
  Fund (CAF). The suggestion of the Union of India was that
  CAF would be composed of a Director General of Forest;
  Special Secretary, who would be the ex-officio Chairman and           G
  Inspector General of Forest, who would be the ex-officio
  Member Secretary. The report of the CEC was accepted and
  this Court made the following recommendations :-
       "(a) The Union of India shall within eight weeks from today      H
292       SUPREME COURT REPORTS                   [2014] 14 S.C.R.


A        frame comprehensive rules with regard to the constitution
         of a body and management of the Compensatory
         Afforestation funds in concurrence with the Central
         Empowered Committee. These rules shall be filed in this
         Court within eight weeks form today. Necessary
         notification constituting this body. will be issued
        ·simultaneously.
          (b) Compensatory Afforestation Funds which have not
          yet been "realised as well as the unspent funds already
        - realised by the States shall be transferred to the said
c         body within six months of its constitution by the respective
                     .         '
          states and the user-agencies.           ·
         (c) In addition to above, while according transfer under
         Forest Conservation Act, 1980 for change in user-agency
         from all non-forest purposes, the user agency shall also
D
         pay into the said fund the net value of the forest land_
                               '              .

         diverted for non-forest purposes. The present value is to
         be recovered at the rate of Rs. 5.80 lakhs per hectare to
       - Rs. 9.20 Jakhs per hectare afforest land depending upon
         the quan~ity and density of the land in question converted
 E ,
         for non-forest use. This will be subject to upward revision
         by the Ministry of Environment & Fcrests in ·consultation
         with Central Empowered Committee as and when.
         necessary.
 F         (d)A 'Compensatory Afforestation Fund' shall be created
       .
          'in.which all the' monies
                                  l
                                     received from the user-agencies
                                                             '  •
           towards compensatory afforestation, additional
           compensatory afforestation, penal comp_ensatory
           afforestation, net present value of forest land, Catchment
           Area Treatment-Plan Funds, etc. shall be deposited. The
       _ rules'. procedure and composition of the body for
         · management of the Compensatory Afforestation Fund
           shall be finalised by the Ministry of Environment & Forests
           with the concurrence of Central Empowered Committee
 H
T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                     29·3
           [SURINDER SINGH NIJJAR, J.]

   within one month.                                               A
   (e) The. funds received from the user-agencies in cases
   where forest land diverted falls within Protected Areas
   i.e. area notified under Section 18, 26A or 35 of the Wild
   Life (Protection) Act, 1972, for undertaking activities
   related to protection of bio-diversity, wildlife, etc., shall   B
   also be deposited in this Fund. Such monies shall be
   used exclusively for undertaking protection and
   conservation activities in protected areas of the
   respective Statesl\]nionTerritories.
   (f) The amount received on account of compensatory
                                                                   c
   afforestation but not spent or any balance amount lying' ·
   with the. States/Union Territories or.any amount that is
   yet to be recovered from .the use-agency shall also be
   deposited in this Fund.                   ·
                                                                   D
   (g) Besides artificial regeneration (plantations), the fund
   shall also be utilised for undertaking assisted natural
   regeneration, protection of forests and other related
   activities: For this purpose, site .specific plans should
   be prepared and implemented in a time bound manner.             E
    (h) The user agencies especially .tlie large public sector
    undertaking such as Power Grid Corporation, N.T.P.C.,
    etc. which frequeriJly require forest land for their projects
    should also be involved in undertaking compensatory
    afforestation by establishing Special ~urpose Vehicle. F
    Whereas the private sector. user agencies may be
  . involved in monitoring and most importantly, in protection
    of compensatory afforestation. Necessary procedure for
    this purpose would be laid down by the Ministry of
    Environment & Forests with the concu.rrence of the G
    Cer;itral Empowered Committee.
   (i) Plantations must use local and indigenous species
   since exotics have long term negative impacts on the
   environment.
                                                                   H
294         SUPREME COURT REPORTS                  . [2014] 14 S.C.R.


A
           0) An independent system of concurrent monitoring and
           evaluation shall be evolved and implemented through the
           CompensatoryAfforestation Fund to ensure effective and
           proper utilisation offunds;"
B
         12. Keeping in view the afqresaid representation, the
   MoEF issued a notification qn 23rd April,' 2004 constituting a
   "Compensatory Afforestation. Funds Management and
   Planning Authority (C_Al\l!PA)" .a!? an· authority under Section
c  3(3) of the Environment (Protebtion)Act, 1986. This notification
   provides that there shall be a governing body. Minister of
 · Environment and Forests, Go.vemment of India is the
   Chairman. Apart from the members who are taken from the
   level of Secretary, MoEF to the lev'el·oflnspector General of
D Forest, the governing body also ·ineludes an eminent
   professional ecologist, not being from the Central ~nd the State
   Government for a .period of 2 ,years of time, but for two
   consecutive terms. the .flotificatior;i also .provides for an
   executive body having S!=!Yenmembers with Director General
   of Forests and Special Secretary, MoEF., Government of India
E as the Chairman. The notification. elaborately provides the
   power and functions of the· Go>iernfng Body; power and
   functions of the Executive Body; Maiiagement of the Funds;
   Disbursement of funds; i'iionitoring·ano evaluation of works. It
   also provides that every State or"the Union territory shall have
                                   a
F a Steering Committee arid Management Committee. It also
   provides the powers and funi:ti6ns' of the State Steering .
   Committee and the State Managem'ent Committee. The
   jurisdiction of the C:AMPA is throughout India. Unfortunately,
G the aforesaid notification has only remained on paper and it
   has not been made functional till da!e by t~e MoEF.        ·
             13. This Court again exami.ne.d the entire iss~e in relation
      to the decline in environment quality due to increasing pollution,
      loss of vegetation cover and bioiogical diversitv. excessive
 H
 T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                  295
            [SURINDERSINGH NIJJAR, J.]

concentrations of. harmful chemicals in the ambient A .
atmosphere and in food chains, growing risk of environmental
accidents, and threats to life support system, forthe protection
of which the Environment (Protection) Act, 1986 had been
enacted. A comprehensive judgment was given in LA.No.826
in LA.No.566 in W.P. (C) No.202 1995 on 26'" September, B
2005. The Court noticed the statutory provisions cont;;iined in
the Forest Conservation Act, 1980, Environment (Protection)
Act, 1986, and Water Prevention and Control of Pollution Act,
1974. It also noticed that large sums of money which had been
payable by user-agencies in cases where approval had been c
granted for diverting forest land that stipulated for compensatory
afforestation were not being used. It is further noticed by this
Court that certain rates had been fixed per hectare of forest
land depending on the quality and density of the land in question
converted for non-forestry use. After detailed examination of D
the issues.related to the payment of Net Present Value (NPV)
and Compensatory Afforestation Fund, the Court upheld the
constitutional validity of the payment to CAMPA under the
notification dated 23rd April, 2004. It was held that the payment
of NPV is for the protection of environment. It was further held E
that the natural resources are not the ownership of any one
State or individual, public at large is its beneficiary. Therefore,
the contention that the amount of NPV shall be made over to
the State Government was rejected.
     14. The Court also constituted a Committee of Experts       F
(Kanchan Chopra Committee) to formulate a practical
methodology for determining NPV payable for various
categories of forest and the project which deserves to be
exempted from payment of NPV.
     15. As noticed ea~lier, huge amount of money received       G
from the user-agencies towards the NPV, Compensatory
Afforestation etc. were lying with various.authorities without
any effective control and monitoring as the CAMPA notification
had not been made operational by theMoEF.
                                                                 H
296       · SUPREME COURT REPORTS                   [2014] 14 S.C.R.


 A.·
         16. The Court reiterated the ratio of M.C.Mehta Vs.
   Kamal Nath & Ors.' that it is the duty of the State to preserve
   the natural resources in their pristine purity. The Doctrine of
   Public Trust was re-enforced. It was emphasized that the
 8 Doctrine of Public Trust is founded on the idea that certain
   common properties such as rivers, seashore, forest and the
   air were held by the Government trusteeship for the free and
   unimpeded use of the general public. It was reiterated that our
   legal system based on English Common Law which includes
 C the Doctrine of Public Trust as part of its jurisprudence. The
   State is the trustee of all natural resources which are by nature
   meant for public use and enjoyment. ·
         17. Therefore, this Court recognized the need to take all
 D precautionary measures when forests land are sought to be
   diverted for non-forestry use, the creation of CAF was
   approved. In coming to the aforesaid conclu~ions; the Court
   took into consideration inff')rgenerationalequity. The State was
   required to undertake short term as well as king term measures
 E for the protection of the environment.                      .
           18. As noticed. earlier, this Court by order dated 28'h
      March, 2008 had fixed the rates at which NPVis payable for
      the non-forestry uses· of forest land falling in different Eco-
      classes and density ~ub-classes. The rates vary from Rs.10 .43
  F lakh per hedare to Rs.4.38 lakh per hectare: For-the use of
      forest land falling in the National Parks and Wildlife
      Sanctuaries, the NPV is payable at 10 times and 5 times
      respectively of the normal rates of NPV. By order dated 9th
      May, 2008, this Court has exempted the payment of NPV for
· G non-forestry use of forest land (a) upto one hectare for
      construction of schools, hospitals, village tanks, laying of
      underground pipe lines and electricity distribution lines upto
    . 22 KV, (b) for relocation of villages from National Parks/Wildlife
      Sanctuaries, (c) for collection of bould~rs/silts from river beds,
 H     '1997(1)SCC388
 T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                   297
              [SURINDER SINGH NIJJAR, J.]

(d) for laying of underground optical fibre cables and (e) for    A
pre-1980 regularization of encrci'achments and has granted
50% exemption for underground mining projects.
      19. Although huge sums of money had been received
from user-agencies but there were no effective checks and
balances for its utilization. Therefore, by order dated 5'h May, B
2006, this Court accepted a suggestion made by the CEC
submitted in I.A. No.1473 for constitution of an Ad-hoc body till
CAMPA becomes operational. All State Governments/Union
Territories were directed to account for and pay the amount
collected with effect from 30'" October, 2002 in conformity with C
the order dated 29'" October, 2002 to the aforesaid Ad-hoc
body (Ad-hoc CAMPA). The following two suggestions made
by the CEC were accepted:-
     "(a) ensure that all the monies recovered on behalf of the   0
     'CAMPA' and which are presently lying with the various
     officials of the State Government are transferred to the
     bank account(s) to be operated by this body.
     (b) get audited all the monies received form the user
     agencies on behalf of the 'CAMPA' and the income E
     earned thereon by the various State Government officials.
     The auditors may be appointed by the GAG The audit
     may also examine whether proper financial procedure
     has been following in investing the funds."
      20. The Chief Secretaries of the State Governments/ F.
Administrators of Union Territories were directed to cooperate
with the Ad-hoc CAMPA as well as the Comptroller and Auditor
General. The Ad-hoc CAMPA under the Chairmanship of the
Director General of Forests and Special Secretary, MoEF and
has (a) Inspector G'eneral of Forest (FC), MoEF (b) G
representative of Comptroller and Auditor General of India (c)
nominee of the Chairman of the CEC as its Members. In
accordance with the directions of this Court, the money already
received as well as the money being received towards the
                                                                H
298         SUPREME COURT REPORTS                  [2014) 14 S.C.R.


A     NPV etc .. have been transferred to the Ad-hoc CAMPA and
      invested in the fixed deposit 'JI/Ith National Banks. The money
      lying with theAd-hoc CAMPA towards the NPV etc. received
      from the States (principal amount) and the interest received
      on the fixed deposit (cumulative interest) has substantially ·
B     increased over a period of time and is presently about Rs.
      30,000 crores.             ·
             21 ~On 2"" April, 2009, MoEF has issued '1he guidelines
      of State Compensatory Afforestation Fund Management and
      Planning Authority (State CAMPA)". These guidelines have
c     been prepared on the basis of the discussions held in the
      meeting of the Chief Secretaries that the objective to assist
      the States/Union Territories for setting up the requisite
      mechanism in consonance with the directions issued from time
      to time by this Court The guidelines are general in natu·re and
  D .can be moulded keeping in view the specific needs of any
      particular State/Union Territory. The State CAMPA has been
      set up as an instrument to accelerate aetivities for preservation
      of natural forests, management of wildlife, infrastructure
      development in the sector and other allied works. By order
  E dated 101h July, 2009 this Court directed that the guidelines
     .and structure of the State CAMPA as prepared by MoEF may
      be notified and implemented. The Court also permitted the
      Ad-hoc CAMPA to release about Rs: 1000 crore per year for
      the fiext five years, in proportion of 10%of the principal amount
· F pertaining to the respective States/Union Territories, inter alia,
      subject to the condition that the State Accountant General shall
      carry out, on annual basis, the audit of the expenditure incurred
      every year out of the State CAMPA funds. It was further directed
      that ari amount upto 5% of the amount released to the State
  G CAMPA, i.e., upto Rs.50 crore per annum, may also be
      released and utilized by the National C..A,MPAAdvisory Council
    · constituted under the Chairmanship of Ministry of Environment
      and Forest for monitoring and evaluation and for the
      implementation of the various schemes as given in-the State
  T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                   299
             [SURINDER SINGH NIJJAR, J.]

 CAMPA guidelines.                                                 A
        22. The State CAMPA has been constituted for each
  State/Union Territory. It has a three-tier structure. The Executive
  Committee functions under the Chairmanship of the Principal
  Chief Conservator of Forests is responsible for the Annual
  Plan of Operation (APO) for various works planned to be 8
  undertaken during each year. The Steering Committee under
  the Chairmanship of Chief Secretary is responsible for
  approving the APO for each year. The Chief Minister is the
  Chairman of the Governing Body which is responsible for
  overall guidance and policy.issues. The Ad-hoc CAMPA· C
  releases the funds to each cif the State CAMPAs as per the
  approved APO. At present, a total sum of Rs:1000 crore is
  permitted to be released to the State per year. The State-wise
  accounts of the principal amounts and cumulative interest be
  maintained by theAd-hcic CAMPA. The funds are not permitted D
  to be utilized for any purpose other than those authorized by
. the Court. The administrative expenses of CAMPA are incurred
  by the CEC.                .          ' -                          .
        23. With the .establishment of the Ad-hoc CAMPA, huge
 sums of money have accumulated which can be released to E
 the State CAMPA for utilization, for protection and for the
 inlJ>rovement of the national environment. Now the aforesaid
 applications tiave been· filed by different States seeking
 release of some funds for completing the task of compulsory
 afforestation, as directed by this Court from time to time. The F
 relief claimed in all the applications is almost identical. We
 shall make a reference to the averments made in I.A. No. 3618
 of 20'13 for the purpose of deciding all the applications.
      24. I.A. No. 3618 of 2013 in Writ Petition (C) No. 202 of G
 1995 has been filed by the Staie of Gujarat with the following
 prayer:-
       "i. To direct the Ad-hoc CAMPA to release minimum of
       10% of principal amount deposited ·by the StateslUTs
                                                                    H
300         SUPREME COURTREPORTS                    [2014] 14 S,C.R


A          with Ad-hoc CAMPA and the total amount accrued as
           interest on such deposits to the respective State/UT's
           including to the State of Gujarat without the ceiling of
                               ' .
           Rs.1,000 crore, in order. to ensure effective and timely
           implementation of Compensatory Afforestation Scheme,·
B          Wildlife Conservation and other Forest conservation and
           Protection Measures as envisaged in the CAMPA
           guidelines;
           ii. Pass any ot~er directions deemed fit by the Hon'ble
           Court."
c
            Prayers made in other applications are similar, if not
      identical.                                      ·
         25.       The aforesaid relief is claimed on the basis that
   the amountavailable with CAMPA is substantially higher than
D ·Rs.1,000/- crores, wherein  , the. annual.release
                                             .     .
                                                         from
                                                          -- the Ad-   '

   hoc CAMPA has been restricted to Rs.1,000/- crores p.a. by.
   the orders of this Court. It is further pointed out that only during
   the year 2009-10, 10% of the principal amount, i.e., Rs.24.96
   crores has been released by the Ad-hoc CAMPA to Gujarat
E State. During subsequent years, i.e., 2010-11and2011-12,
   the annual release from ad-hoc CAMPA to Gujarat State had
   come down from 10% to 8% and then to 7%, respectively. For
   the year 2012-13, the amourit released is onJy 6.5% of the
   principal amount. Jt is also submitted by the learned counsel
F appearing for the State of Gujarat that ~t the time when these
   applications were filed in April, 2013, the tofal funds available
   with the Ad-hoc CAMPA were as follows:-
           a. The Princip!il amount at the disposal of ad-hoc
              CAMPA is around Rs.28000 crores.
G
           b. The accrued interest on it is of the order of over
              Rs.4,000 crores.
           c. The annual accrual of ir:iterest on the deposits is of the.
              order of Rs. 2200 crores.
 H
  T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                    301
                [SURINDER SINGH NlJJAR, J.]

        26. Relying on the aforesaid facts and figures, it is A
  submitted by the learned counsel for all the States that the funds
  released to the State CAMPAs are only a fraction of the interest
  accruing in the Ad-hoc CAMPA accounts. It is further submitted
  that the value of the compensatory levies, which have been
  obtained against the diversion of forest l;rnd over a period of B
  many years has eroded substantially. This is added to by the
  continuous inflationary trends, which has made the task of-
. undertaking Compensatory Afforestation very cost intensive.
  Therefore, it is imperative that the funds are made available to
  State CAMPAs in a substantial ratio to the amounts collected C
  from the State/Union Territories. To illustrate this dilemma, the
  applicant has relied on a chart, which is as under:-
                                                (Rs. In Crores)
      Year         Amount             Amount            Shortfall
                required as per     released to                     D
                     APO           Gujarat State
                                      CAMPA
       1               2                 3                  4
    2009-10          43.16             24.96             18.20
    2010-11          43.78             29.16             14.62 .    E
    2011-12          55.08             26.30             28.78
    2012-13          40.61             32.41              8.20
     Total           182.63            112.83      -·    69.80

       27. Relying on the aforesaid chart, it is submitted that
 due to release of insufficient CAMPA funds, all the NPV F
 Projects approved by the Steering Committee could not be
 started. In the year 2009-10, out of 24 NPV Projects only 4
 projects could be implemented. In the year 2011-12, out of 14
 NPV Projects only 12 Projects could be implemented. In the
 year 2012-13, out of 15 NPV Projects only 14 Projects could G
 be implemented. It is pointed out that even in relation to the
 projects, which have been implemented; all the activities in
 support of the projects could not be taken up due to want of
 funds. This has resulted in an overall shortfall in the Forest and
                                                                    H
302         SUPREME COURT REPORTS                  (2014) 14 S.C.R.


A     Wildlife Conservation, which is the prime objective of CAMPA
      funds. Therefore, several State/Union Territory Governments
      including State· of Gujarat have requested the Ministry of ·
      Environment & Forests to increase the annual release from
      the Ad-hoc CAMPA funds to a minimum 10% of the principal
B     amount available with Ad-hoc CAMPA, without any ceiling of
      about Rs.1,000/- crores per annum. However, since no
      response was received from the MoEF, the State of Gujarat
      and other applicant States/Union Governments were
      constrained to file the IAs.
c      28. These applications came up for hearing on 26th
  August, 2013, 20th September, 2013 and 4'h October, 2013.
  Upon examination of the entire matter, a direction was issued
  on 9th December, 2013 tci the Centr$11 Empowered Committee
  (hereinafter referred to as "CEC") to submit its report on the
D applications and the prayers made by the applicant. CEC
  has submitted its report dated 6th January, 2014.
            29. In response to the application filed by the State of
      Gujarat, this Court by order dated 9th December, 2013 had
 E    directed the CEC to submit its report.
            30. In its report dated 6th January, 2014, CEC has
      recommended that the prayer made in the application ought
      to be accepted. The relevant extract of the CEC Report is as
      under:
 F          "11. The CEC, in the above background; recommends
            that this Hon'ble Court may in partial modification of its
            earlier order dated 1Oth July, 2009 consider permitting
            the Ad-hoc CAMPA to annually release from the financial
            year 2014-2015 onwards, out of the interest received I
 G          receivable by it, an amount equal to 10% of the principle
            (sic) amount lying to the credit of each of the State I UT
            at beginning of the year to the respective State CAMPA
          · subject to the following conditions:

 H
T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                    303
            [SURINDER SINGH NIJJAR, J.]

   i)the funds will be released by utilizing interest received    A
      I being received by the Ad-hoc CAMPA. The principle
       (sic) amount lying with the Ad-hoc CAMPA will not be
       released or transferred o.r utilized;
   ii) the funds will be released after receipt of the "Annual
        Plan of Operation" containing details of the              B
        afforestation and other works for the conservcition,
        protection and development of the forests and wildlife
        and approved by the Steering Committee of the
        respective State CAMPA;
                                                           ., c
   iii) the Ad-hoc CAMPA will be at liberty to release the
        funds to the State CAMPAs in one cir more installments
        after considering the utilization of funds earlier
        released;
   iv) the National CAMPA Advisory Council (NCAC) will D
      finalize and issue guidelines before 31st March, 2014
       regarding the activities for which the use of the CAMPA
       funds will not be permissible (such as foreign study
       tours) and the activities for which a ceiling on the use
       of the CAMPA funds will apply (such as purchase of. E
       vehicles and construction of residential I office
       buildings).
     These guidelines will be strictly followed by the State
     CAMPA;                                                .
                                                                  F
   v) the State CAMPAs and the MoEF will expeditiously
      take necessary follow up action on the observations
      made in the "Report of the Comptroller and Auditor
      General of India on Compensatory Afforestation in
      India".                                                     G.
   vi) the back log of Compensatory Afforestation, if any,
       will be tackled on priority basis and for which adequate
       provision will be made in the Annual Plan of Operation
       (APO) by the respective State CAMPAs; and
                                                                  H
304         SUPREME COURT REPORTS                   (2014] 14 S.C.R.


A          vii) the annual release of funds to the National CAMPA
               Advisory Counsel (NCAC) will continue to be upto Rs.
               50 crore and provided the amounts earlier released
               are found to have been substantial utilized." ·
           The aforesaid recommendations have been given by the
8     CEC after setting out the background in which the CAMPA
      was setup.
            31. Mr. Salve learned Amicus Curiae on the hasis of
      the record has submitted that on the directions issued by this
c     Court about Rs.6000 crores are being received by CAMPA
      annually. This amount represents the total amount collected
      for compensatory afforestation fund (principal amount Rs. 3000
      crores annually) and approximately Rs.3000 crores by way of
      interest on fixed deposits annually. This is in addition to the
0     accumulative principal amount which is already invested in
      fixed deposits.He submits that keeping in view the directions
      issued by this Court from time to time for ensuring afforestation
      it would be appropriate to accept the recommendation of the
      CEC. He submits that the scheme proposed by the CEC will
E     gradually increase in the release of funds to the State/Union
      Territory over a period of time and on a sustainable basis. The
      learned Amicus Curiae has, however, suggested that certain
      other safeguards ought to be incorporated to ensure efficient
      management ofthe funds released. Upon consideration of the
 F    entire matter at length, we accept the recommendations made
      by the CEC reproduced above. We, however, modify the
      direction 11 (iv) as under:-                                -
           The National CAMPA Advisory- Council (NCAC) will
           finalize and issue guidelines before 1" May, 2014
G          regarding the activities for which the use of the CAMPA
           funds will not be permissible{such as foreign study tours)
           and the activities for which a ceiling on the use of the
           CAMPA funds will apply (such as purchase of vehicles
           and construction of residential I office buildings).
H
 T. N. GODAVARMAN THIRUMULPAD v. UNION OF INDIA                       305
            [SURINDER SINGH NIJJAR, J.]

      These guidelines will be strictly followed by the State         A
      CAMPA.
      The same shall be treated as directions of this Court.
      The order dated 101" July, 2009 is modified accordingly.
       32. The Ad-hoc CAMPA is permitted to release annual            B
amount equal to 10% of the principal amount lying to the credit
of each State/Union Territory, out of the interest receivable by
it with effect from financial year 2014-2015 onwards. The
release of the aforesaid funds shall be subjected to the
conditions enumerated above.                                          c
      33. It is further directed that no money out of the amounts
available with Ad-hoc CAMPA will be transferred or utilized
without the leave of this Court. It is further directed that the
National CAMPAAdvisory Council will file a Status Report within
a period of three months regarding the monitoring and D
evaluation of the works being undertaken, by utilizing the funds
released by CAMPA.
      34. The Interlocutory Applications are disposed of with
the aforesaid directions.
                                                                      E

Devika Gujral                                     IA's disposed of.