NGT slaps ₹5 crore interim fine on Punjab pharma unit for flouting norms

NGT directed the Punjab State Pollution Control Board to initiate criminal proceedings against the unit for past violations

The National Green Tribunal (NGT) has imposed an interim fine of ₹5 crore on a pharmaceutical unit in Punjab for “violation of environmental norms”.

The NGT said that the PSPCB “failed to discharge its statutory functions adequately and effectively” (HT File)

While denouncing the conduct of the Punjab State Pollution Control Board (PSPCB) for failing to discharge its statutory functions effectively, the NGT directed the board to initiate criminal proceedings against the bulk drug manufacturing unit, besides determining the final compensation amount.

The NGT was hearing a plea on Nector Life Sciences Limited, located at Haibatpur village in SAS Nagar district, reportedly discharging highly polluted chemical effluent in agricultural fields, causing damage to crops and land.

In an order passed on Thursday, justice Prakash Shrivastava, chairman of the NGT bench, said: “Considering the entire record, we are clearly of the view that the industry has failed to comply with the provisions of environmental laws, particularly the Water Act, and has consistently violated its provisions while its zero liquid discharge (ZLD) status has not been achieved till date.”

The bench, also comprising judicial member justice Sudhir Agarwal and expert member Afroz Ahmad, said the PSPCB “failed to discharge its statutory functions adequately and effectively”. “The PSPCB did not take stringent action by imposing adequate environmental compensation, nor did it initiate criminal action for prosecution of the violator,” the bench added.

The NGT said the unit mainly manufactured antibiotics and wastewater containing antibiotics, such as cephalosporins antibiotics, could be highly toxic and difficult to degrade. “It is thus necessary to examine the effluent or wastewater generated by an industrial unit to see whether treated water contains the residue of the above antibiotic medicine or not,” the NGT said.

Regarding environmental compensation, the tribunal said: “Since in the present financial year, the amount of environmental compensation at 0.5 % of turnover ( ₹1,698.66 crore) comes to about ₹8.5 crore, we find it appropriate to impose an interim environmental compensation of ₹ 5 crore which shall be paid or deposited by the unit with the PSPCB within two months.”

“We also direct the PSPCB to determine the final amount of environmental compensation after collecting information with regard to the turnover from the proponent of the respective year when the violations were found and to impose compensation for such period separately after due opportunity of hearing to the proponent,” it added.

The NGT bench has also directed the PSPCB to initiate criminal proceedings against the unit for past violations and make periodical inspections to ensure that it strictly complied with the environmental laws.

The tribunal further said that the unit has committed several environmental violations, including emission of intermittently black smoke from its boiler, concentration of effluent beyond the prescribed limits, partially operated effluent treatment plant (ETP), lack of proper distribution network to avoid unscientific and illegal discharge, and non-operational multi-effect evaporator (MEE).

“The unit was found to have failed in checking the discharge of ammonia contained water which was found spread outside the premises,” the tribunal said.