The oil spill that occurred in Ennore in December 2023. File
| Photo Credit: B. Jothi Ramalingam
The southern bench of the National Green Tribunal (NGT) has granted an interim stay on the Tamil Nadu Pollution Control Board’s (TNPCB) order imposing ₹73.68-crore environmental compensation on the Chennai Petroleum Corporation Limited (CPCL) for an oil spill that occurred in December 2023.
The compensation, which includes ₹38.24 crore for environmental damage and ₹35.43 crore for socio-economic impact, was levied by the TNPCB, which estimated that 517 tonnes of oil was spilled from the refinery.
The decision of the bench, comprising Justice Pushpa Sathyanarayana and expert member Satyagopal Korlapati, came after CPCL lfiled an appeal against the order, arguing the TNPCB acted hastily in imposing the compensation before a proper assessment of the damages. CPCL contended it had not been given adequate time to respond to a show-cause notice issued in November 2024 before the penalty was imposed.
During the hearing, the senior counsel representing CPCL requested a stay on the order, contending the compensation was imposed prematurely. However, the TNPCB’s counsel opposed the stay, maintaining that due process was followed.
The bench granted an interim stay on the TNPCB’s order, contingent on CPCL depositing 50% of the environmental damage cost (₹38.24 crore) with the TNPCB within four weeks. If CPCL fails to comply, the interim stay will automatically be vacated. CPCL also has the option to provide a bank guarantee for the required amount.
The case has been adjourned to June 4, 2025, and the TNPCB has been directed to file its response by then.
Published – March 20, 2025 04:33 pm IST