Rs 3.10 crore environmental compensation imposed on construction company: Government tells Assembly

Srinagar, Mar 27: The Government has informed J&K Legislative Assembly that around Rs 3.10 Core penalty (Environmental Compensation) has been imposed on a private construction company NKC Projects Pvt Ltd on the orders of Supreme Court for causing huge environmental damage to Shaliganga stream in Budgam.

The company had been given permission (environmental clearance-EC) in the year 2021 to undertake riverbed mining but had violated the standard and specific guidelines of J&K Environmental Impact Assessment Authority -JKSEIAA by using heavy machinery.

The Environmental Clearance granted to NKC Projects Pvt Ltd was challenged before National Green Tribunal -NGT by noted environmental / RTI activist Dr Raja Muzaffar Bhat. The NGT after a series of hearings imposed a blanket ban on mining in 2022. The NKC filed an appeal against the NGTs order in the Supreme Court of India, but the apex court came to the rescue of Shaliganga by upholding the NGTs judgement. The SC in its August 22nd 2025 judgement castigated the Mining Department , J&K State Environmental Impact Assessment Authority – for granting Environmental Clearance without conducting Replenishment Study. The Supreme Court had directed JK Pollution Control Committee-JKPCC to take action against these violations.

National Conference MLA Ali Mohammad Dar, who represents Chadoora Assembly constituency sought details from government about the Environmental Compensation imposed in response to the Supreme Court’s judgement dated August 22, 2025. In its response, the government through the Mining Minister said that around Rs 3.10 crore have been imposed on the company.

In the Civil Appeal No: 855 of 2022 titled State of J&K and others vs Raja Muzaffar Bhat, the Supreme Court in its judgement dated 22.08.2025 directed J&K Pollution Control Committee to take appropriate action against the violators for causing damage to Shaliganga.

The J&K PCC computed the environmental compensation against violators NKC Projects Pvt Ltd to the tune of Rs 3.10 crore. This includes damage caused to Shaliganga at three different spots namely – namely Dreygam downstream for which Rs 87,47398.4 has been imposed as penalty. In Banderpora area Rs 69,99,436.8 have been imposed as compensation and Rs 1,57,35,168 has been imposed as penalty on NKC for damaging the Shaliganga stream near Panzan bridge to Lalgam in Chadoora.

“A lot of delay has been done in imposing environmental compensation on NKC Projects Pvt Ltd. The J&K PCC should have done this soon after NGTs order of 2022. The company after plundering Shaliganga looted Sukhnag stream for 3 years and District Administration Budgam allowed that loot. The work in Sukhnag was also banned by NGT in January 2025 and an independent committee is probing that case as well. Rs 3.10 Crore environmental compensation is not enough as damage caused to Shaliganga is massive. I am yet to receive the official order and once I get that I will consult my legal counsels in Supreme Court and National Green Tribunal-NGT,” said Dr Raja Muzaffar Bhat.