The Supreme Court on Tuesday directed the Union government to file a comprehensive affidavit explaining the utilisation of the Environment Relief Fund (ERF), expressing concern over allegations that the statutory fund meant to provide immediate relief to victims of accidents involving hazardous substances has remained largely unutilised.
The Bench of Chief Justice of India (CJI) Surya Kant, Justice Joymalya Bagchi and Justice NV Pancholi passed the order on a public interest litigation filed by one Gyan Prakash. The petitioner contended that no compensation had been paid from the fund to the families of persons who had died due to accidents involving hazardous substances despite the fund having accumulated substantial amounts over the years.
The Bench questioned the Union government about the administration and utilisation of the fund and sought details regarding the authority responsible for its management, the amount collected so far and the steps taken to ensure that eligible victims receive statutory relief. The Centre was further directed to explain the measures adopted for implementing the legislative scheme governing the fund.
The Bench recorded the submission made on behalf of the Union Government that approximately Rs 81 crore had been collected in the Environment Relief Fund up to the year 2020. However, it was stated that the authorities were not aware of the latest amount available in the fund. The Court further noted that no material had been placed on record to indicate that any scheme or mechanism had been formulated for effective disbursement of the money collected.
In view of these submissions, the Supreme Court directed the Union Government to file a comprehensive affidavit within four weeks specifying the total amount collected, the present corpus of the fund, the amount disbursed or otherwise utilised, and the manner in which the fund has been administered. The Court also directed the Member Secretary of the Central Pollution Control Board (CPCB) to assist the Bench and place before it complete details relating to the utilisation of the fund.
The petition raised concerns regarding the implementation of the statutory compensation framework under the Public Liability Insurance Act, 1991, which was enacted to provide immediate relief to persons affected by industrial accidents involving hazardous substances without requiring prolonged civil litigation. The Act obligates owners handling hazardous substances to obtain public liability insurance and establishes the Environment Relief Fund to supplement compensation awarded by the Collector under Section 7 of the Act.
According to the petitioner, the continued non-utilisation of the Environment Relief Fund has defeated the legislative objective of providing prompt and effective financial assistance to victims of industrial accidents and their families. The plea alleges that despite the accumulation of significant public funds over several years, the intended beneficiaries have not received relief, thereby undermining the statutory scheme and the principle of social welfare underlying the enactment.
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