Vedanta Ltd. vs. State of Tamil Nadu [February 29, 2024]
This Supreme Court case concerned Vedanta Ltd.’s challenge to the closure of its Sterlite copper smelting plant in Thoothukudi, Tamil Nadu. The plant, a major source of copper production in India, was ordered to shut down by the Tamil Nadu Pollution Control Board (TNPCB) in 2018 due to alleged environmental violations. The closure followed widespread protests by local residents over pollution concerns, which culminated in violence and loss of life. Vedanta’s attempts to reopen the plant were rejected by both the National Green Tribunal (on jurisdictional grounds) and the Madras High Court, leading to the present appeal.
Key Issues
Whether the closure of the Sterlite plant by TNPCB and the Tamil Nadu government was justified on grounds of environmental violations.
Whether Vedanta’s plea for reopening the plant should be allowed, considering the economic and public interest versus environmental and public health concerns.
The role of judicial review in balancing industrial activity with environmental protection.
Supreme Court’s Analysis
The Supreme Court found that there had been “repeated breaches” and “serious violations” of environmental norms by Vedanta, including misrepresentation and suppression of material facts regarding statutory consents and the operational status of the plant.
The Court observed that while closure of industry is not the first choice, the persistent and severe nature of violations left no alternative for the authorities or the courts, given their duty to protect public health and the environment.
The Court noted that Vedanta had failed to remove hazardous waste (copper slabs) from multiple sites and had operated the smelter despite the expiry of its hazardous waste license.
The bench, led by Chief Justice D.Y. Chandrachud, emphasized that the plant’s economic contributions could not override the “well-settled principles of environmental jurisprudence” and the need to prioritize health and welfare of local residents.
The Court also criticized the TNPCB for lack of alacrity in fulfilling its regulatory duties but ultimately upheld the closure, finding the High Court’s observations justified.
Judgment
The Supreme Court dismissed Vedanta’s appeal, upholding the Madras High Court’s decision to close the plant.
The Court made clear that reopening was not permissible in light of the repeated and grave environmental violations, and that public interest and environmental protection must prevail over economic arguments.
Vedanta’s subsequent review petition was also dismissed, with the Court finding no error apparent on the face of the record and refusing an open court hearing.
Significance
The judgment affirms the primacy of environmental protection and public health in cases of industrial pollution, even when weighed against significant economic interests.
It clarifies that repeated and serious violations by industrial entities will justify closure, and that judicial discretion will not be exercised to grant relief in the face of such conduct.
The decision also underscores the importance of regulatory diligence by authorities like the TNPCB and the judiciary’s role in upholding environmental jurisprudence.
Citation:
Vedanta Limited v. State of Tamil Nadu & Ors., Supreme Court of India, Judgment dated 29 February 2024, [2024 INSC 175].
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