NGT imposes ₹25 Crore fine on Cola & Pepsi in UP for illegal extraction of groundwater

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The National Green Tribunal (NGT) ordered 2 bottlers in Uttar Pradesh, responsible for the products of Coca Cola and PepsiCo, to pay ₹25 crores as environmental compensation for illegal extraction of groundwater. The NGT ruled that the companies bottling operations were in violation of environmental legislation as they operated without the requisite NOC to withdraw groundwater.

“We are of the view that PPs (Project Proponents) are responsible for illegal extraction of ground water at least after expiry of NOCs, issued to them by CGWA. They continued to extract ground water without any authority. Further, they are also liable to pay environmental compensation for causing loss to environment by failing to comply the most crucial condition of NOCs, i.e., recharge of water,” the judgement said.

Both companies were also accused of breaking the terms of their licences by failing to meet their requirements to recharge ground water. Moon Beverages (Coco Cola) and Varun Beverages (PepsiCo) were thus ordered to pay a total of around ₹25 crores for illegally abstracting groundwater and inflicting environmental harm.

The coram consisted of retired Supreme Court Justice Adarsh Kumar Goel as the Chairperson, Sudhir Agarwal and Brijesh Sethi as judicial members, and Prof A Senthil Vel and Dr Afroz Ahmad as expert members.

The NGT also came down hard on the government regulator Central Ground Water Authority (CGWA), pointing out various flaws in its operations.

“Time and again, acting in a most callous and defiant mode, CGWA has proceeded in its own way, going to the extent of permitting wholly illegally massive exploitation of ground water, that too, in extremely stressed areas, wholly unconcerned with the consequences,” the NGT bemoaned.

The Uttar Pradesh Ground Water Department (UPGWD) was also held accountable as the body attempted to confer authority to the companies for extraction of groundwater without having the jurisdiction to do so.

“They have also contributed and are responsible for causing damage to environment in causing illegal abstraction of ground water for which it may be held accountable,” the NGT said.

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