Levy Imposed By Gujarat High Court Challenged

The Gujarat Chamber of Commerce and Industries and several companies in the state yesterday challenged before the Supreme Court the levy imposed on them by a high court for polluting the environment. Hundreds of industries, including the petitioners Deepak Nitrate Ltd, Central Pulp Mills Ltd, Torrent Gujarat Biotech Ltd, Baroda Dairy and Sushma Textiles, challenged the legal authority of the court to impose such a "penalty".

The levy imposed is one per cent of the highest turnover in the past three years of the concerned company. The levy collected so far amounts to some Rs 40 crore and is lying with the high court. Earlier, the Supreme Court had ordered a stay on the collection of the amounts. The levy, if collected from all the concerned units, will raise over Rs 600 crore.

 

The industries argue that the levy of one per cent is neither tax, nor fee, nor penalty. There is no such provision in the Environment Act or any other allied legislations. They argue that the high court has virtually taken over the implementation of the Environment Act. The high court now has to administer the huge fund it has collected. There is no guideline on how to spend it and who will manage it. Management of such funds rest with the executive.

According to the companies, the penal provisions in the environment laws provide for closure of polluting units, prosecution of responsible persons and even imprisonment. But levying one per cent from the industries for restitution of the environment is nowhere stated.