Adani port moves Supreme Court against NGT order for environmental compensation

The Supreme Court on Tuesday issued notice in an appeal filed by Adani Krishnapatnam Port Limited (AKPL) challenging a February 2025 order of the National Green Tribunal (NGT) which had called for a penalty to be imposed on the company for environmental damage.

The NGT had directed the Andhra Pradesh Pollution Control Board (APPCB) to impose environmental compensation on AKPL for past violations related to coal dust pollution and non-compliance with environmental clearance conditions.

A Supreme Court Bench of Justices PS Narasimha and Atul S Chandurkar sought replies from the respondents. However, the Court refused to stay the NGT's order without hearing the respondents.

The matter pertains to the Tribunal’s order wherein serious concerns were raised about the environmental impact of coal handling operations at the Krishnapatnam Port in Andhra Pradesh.

The proceedings before the NGT were triggered by a complaint from a local resident, Bonigi Rangaiah, who alleged that the port’s bulk handling of coal cargo was generating fine coal dust that was drifting into nearby villages, affecting air quality, vegetation and public health. The complaint also cited the port’s failure to establish a greenbelt buffer zone, the absence of mechanised cargo handling infrastructure and use of private groundwater sources in violation of environmental norms.

Although the complaint was later withdrawn by the applicant after the port reportedly implemented some mitigation measures, the Tribunal noted that substantial past violations had been established in a joint committee report submitted by the Central Pollution Control Board (CPCB), APPCB and the District Collector. The report confirmed that the port had failed to implement various pollution control measures, including mechanisation of coal handling at the south berths, installation of fixed dust suppression systems and development of a 100-metre-wide greenbelt around the coal yard.

In its final order dated February 13, 2025, the Tribunal directed the APPCB to levy environmental compensation for the period of non-compliance. It further mandated that:

• Timelines be fixed for full compliance with earlier directions, including the mechanisation of berths and use of treated municipal sewage for dust suppression.

• Penalties be imposed for any delay in implementation.

• Native tall-growing species such as Bamboo Giganteus and Burflower Tree (Neolamarckia cadamba) be planted as part of the greenbelt.

Challenging these directions, AKPL approached the Supreme Court, arguing that the Tribunal’s findings and penalty directions were unwarranted, especially in light of the subsequent withdrawal of the complaint and the remedial steps already taken.

Senior Advocate Dhruv Mehta, who appeared for AKPL, contended that the entire litigation before the NGT transpired without impleading them or hearing them. He thus sought for a stay on the NGT order.

Mehta was briefed by a team from Karanjawala & Co led by Senior Partner Ruby Singh Ahuja.