Rs 3.10 Crore Environmental Penalty Imposed on NKC Projects for Shaliganga Damage, Govt Informs Jammu Kashmir Assembly | Kashmir Life

SRINAGAR: The Jammu and Kashmir Government on Friday informed the Legislative Assembly that an environmental compensation of approximately Rs 3.10 crore has been imposed on private construction firm NKC Projects Pvt Ltd for causing extensive damage to the Shaliganga stream in Budgam district, in compliance with directions issued by the Supreme Court of India.

The penalty follows a series of legal proceedings stemming from violations committed during riverbed mining operations. The company had been granted environmental clearance in 2021 but was later found to have breached conditions laid down by the JK State Environmental Impact Assessment Authority by deploying heavy machinery and failing to adhere to prescribed safeguards.

The environmental clearance was challenged before the National Green Tribunal by environmental activist Raja Muzaffar Bhat, after which the tribunal imposed a blanket ban on mining activities in 2022. NKC Projects subsequently approached the Supreme Court of India in appeal, but the apex court upheld the tribunal’s decision in its August 22, 2025, judgment, criticising the Mining Department and the environmental authority for granting clearance without conducting a mandatory replenishment study. The court also directed the J&K Pollution Control Committee to initiate action against violators.

Responding to a query raised by National Conference MLA Ali Mohammad Dar, who represents the Chadoora constituency, the government, through the Mining Minister, confirmed that the JK Pollution Control Committee had assessed and imposed environmental compensation amounting to Rs 3.10 crore on the company.

According to official details, the compensation has been calculated for damage caused at multiple locations along the Shaliganga stream. An amount of over Rs 87.47 lakh has been imposed for destruction at Dreygam downstream, nearly Rs 70 lakh for damage in the Banderpora area, and approximately Rs 1.57 crore for violations between Panzan bridge and Lalgam in Chadoora.

The penalty has been levied in connection with Civil Appeal No. 855 of 2022, titled State of JK and others vs Raja Muzaffar Bhat, in which the Supreme Court of India had directed authorities to take appropriate action for ecological damage caused to the stream.

Reacting to the development, Raja Muzaffar Bhat termed the action delayed and inadequate, alleging that enforcement authorities failed to act promptly after the 2022 tribunal order. He further alleged that the company continued extraction activities in the Sukhnag stream for several years, despite environmental concerns, and that a separate probe is underway into those operations following another ban imposed earlier this year.

Bhat maintained that the environmental compensation imposed does not fully reflect the extent of ecological damage caused to the Shaliganga and indicated that he may pursue further legal remedies after examining the official order.