Introduction:

In a significant development, the Supreme Court intervened to stay the National Green Tribunal’s (NGT) direction to initiate action under the Prevention of Money Laundering Act (PMLA) against a company accused of environmental violations. The court’s decision underscores the jurisdictional limitations of the NGT and provides relief to the appellant company, pending further adjudication on the matter.

Arguments:

The case involved allegations of hazardous waste dumping by the appellant company, resulting in a demand for environmental compensation by the Uttar Pradesh Pollution Control Board (UPPCB). The NGT, in its order, invoked the PMLA, reasoning that environmental offenses fell within its purview. The appellant challenged this direction, asserting that the NGT exceeded its jurisdiction.

Court’s Judgement:

The Supreme Court, comprising Justices AS Oka and Ujjal Bhuyan, stayed the NGT’s direction, noting its lack of jurisdiction to invoke the PMLA against the appellant. The court emphasized the need for a prima facie assessment of jurisdictional issues and temporarily halted the enforcement of the NGT’s order, including the payment of environmental compensation. The matter is slated for further deliberation on August 5.