NGT pulls up CPCB over usage of funds

The National Green Tribunal (NGT) has questioned the Central Pollution Control Board (CPCB) over its utilisation of environmental compensation (EC) it has received in lieu of projects across the country — especially those in Delhi — and has sought a detailed audit of the usage of funds within eight weeks, listing the matter for further hearing on May 2.

The green court’s order, dated January 21, came in response to a January 20 report filed by CPCB which stated that of the ₹255.01 crore in EC collected over uptill September 2024, only ₹223.44 crore was sanctioned across 67 projects.

A bench headed by NGT chairperson Justice Prakash Shrivastava in its order said that only a small amount was actually being spent for restoration in areas impacted by specific projects, and that a significant amount was spent to strengthen CPCB’s computer network — a development that will not have a direct impact on the environment and its restoration.

The tribunal also questioned the use of EC by states and Union territories. The CPCB report revealed that Delhi collected ₹112.08 crore in EC in the given time period, but had utilised only 36.06 crore or 32% of the funds collected for “procurement of instruments for water and air labs, installation and operation of CAAQMS & noise monitoring stations, research studies, etc”.

“We find (in most places) that less than 20% of EC collected is utilized and the UTs like Dadra & Nagar Haveli, Jammu and Kashmir & Delhi and states like Maharashtra, Uttar Pradesh, Tamil Nadu have almost nil utilization,” the bench said in its order.

NGT further stated that despite CPCB showing high utilisation of funds on its own account, a large chunk was being utilised in incorrect areas.

“Only a small amount has been spent for the restoration of areas that suffered environmental damage on account of the specific projects relating to which the EC was levied and collected. The amount has been spent by CPCB for strengthening the computer network which does not seem to have a direct correlation with the restoration of damage caused to the environment.” the bench observed.

“CPCB has also spent a substantial amount for its regional laboratories upgradation which otherwise is the statutory responsibility of the CPCB. It has spent the amount for upgradation of SPCBs laboratories such as Punjab,” the bench added, stating states and UTs had their own funds for setting up such labs.

The order said the counsel for the CPCB initially stated regular audits of EC funds were being done by the Comptroller and Auditor General of India (CAG), before withdrawing this statement.

“Hence, we direct the CPCB to disclose full details of the audit of the account of the last ten years and also place on record latest annual audit report,” the NGT said, listing the matter for hearing next on May 2.