M/S. Rhythm County v. The Principal Secretary
Background
Two developers challenged environmental compensation imposed by the National Green Tribunal for building without full clearances, arguing the compensation method used was flawed.
Decision Breakdown
The Supreme Court upheld both compensation orders, holding the NGT has wide, principled discretion to size penalties to a project's scale under the polluter-pays principle. There's no requirement for a single rigid formula, and using project cost as a yardstick is legitimate.
Lesson Learnt
Developers cannot escape environmental compensation merely by disputing the calculation formula: regulators have broad discretion to size penalties to a project's scale and conduct.