NGT questions legality of transfer of funds under environment compensation to Kochi Corporation

Fire force personnel trying to douse the blaze that broke out at the Brahmapuram waste treatment plant in March 2023.
| Photo Credit: R.K. Nithin

The National Green Tribunal (NGT) has expressed doubts over the legality of the transfer of funds under the environment compensation account head of the Kerala State Pollution Control Board to the Kochi Corporation following the massive fire at Brahmapuram dumping site in March 2023.

The Principal Bench of the tribunal in New Delhi, which considered a case regarding the utilisation of funds collected under the head of environment compensation by the Central Pollution Control Board (CPCB) and State boards, asked whether such a transfer in the nature of loan was permissible.

The Bench comprising Chairperson Prakash Shrivastava, Sudhir Agarwal (Judicial Member), and A. Senthil Vel (Expert Member) had considered whether the funds earmarked under environment compensation were used for purposes other than the key objective of the restoration of damage caused to the environment.

According to officials of the Kerala State Pollution Control Board, around ₹1 crore was released from the head of environment compensation to the Corporation on the directive of the Department of Environment and Climate Change.

It was done on the condition that the civic body would reimburse the sanctioned amount. The funds were allotted as part of remedial measures taken at the site following the fire. The money had not yet been reimbursed, the officials said.

The Principal Bench, in an order dated January 21, 2025, pointed out that the State authorities had transferred the money to the Corporation, with the condition that the government would reimburse it to the head of environment compensation. “We have serious doubts if such kind of transfer of amount in the nature of loan is permissible,” it said.

The Board authorities said the funds were not given as a loan. They were released as an immediate step to check the impact of the fire, they added. According to official data available with the CPCB, Kerala has a total of ₹9.3 crore collected as environmental compensation as on September 30, 2024. Of this, the State has utilised ₹3.6 crore.

Besides providing assistance to the Corporation, funds had been used for hiring experts and consultants for specific purposes and payment of honorarium.

Published – February 11, 2025 09:43 pm IST

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