Supreme Court Links Company Scale to Environmental Responsibility, Upholds ₹5 Crore Fine
February 1, 2026
On January 30, 2026, the Supreme Court confirmed a ₹5 crore environmental penalty on builder Rhythm County for violating green norms in Pune. The National Green Tribunal (NGT) had found that Rhythm County carried out construction at Autade Handewadi without required clearances and ignored stop-work orders from pollution authorities.
A Bench of Justices Dipankar Datta and Vijay Bishnoi said bigger companies with higher turnover must bear more responsibility for environmental damage. They explained that bigger operations consume more resources and produce more waste and emissions.
"If a company profits more from its scale, it is logical that it bears more responsibility for the environmental costs," the Court said. It noted that turnover can directly relate to the magnitude of harm caused.
The NGT in 2022 ruled Rhythm County violated environmental laws, including the Air and Water Acts, and imposed the ₹5 crore compensation. Rhythm County's claim that clearances were unnecessary was rejected. The NGT emphasized statutory compliance cannot be ignored based on convenience, especially when construction continued after official stop-work orders.
This ruling sends a strong message that large players must follow greener rules and pay for the damage they cause.
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Tags:
Supreme court
Environmental Compensation
National green tribunal
Rhythm County
Green Norms Violation
Environmental Responsibility
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