T.N. Godavarman Thirumulpad v. Union of India
Background
This is an interim order, not a final judgment. States sought larger releases from centrally held funds collected to compensate for diversion of forest land. They argued that the existing annual ceiling left approved forest and wildlife conservation work underfunded, even though the accumulated deposits and their interest had grown substantially.
Decision Breakdown
This is an interim order, not a final judgment. The Court modified its earlier arrangement to permit annual releases, from 2014-15, equal to 10% of the principal standing to each State or Union Territory's credit. Releases had to come from interest, preserve the principal and support approved annual conservation plans, with oversight of earlier spending and priority for the afforestation backlog. Guidelines restricting ineligible expenses and limiting specified administrative purchases had to be issued by 1 May 2014. Other transfers or uses required the Court's permission, and the national advisory body had to submit a monitoring report within three months.
Lesson Learnt
Money collected to offset forest loss must be spent on approved conservation work with financial safeguards; collecting compensation alone does not repair environmental damage.