NGT Dismisses Northern Railway’s Plea, Notes Rs 2.06 Crore Environmental Penalty by DPCC

The National Green Tribunal (NGT) has dismissed an interim application filed by Northern Railway in connection with the alleged illegal operation of one of its railway units without obtaining mandatory environmental permissions in Delhi. The case concerns violations under environmental laws where the railway division was found operating without the required Consent to Operate (CTO).

The matter was heard by a Division Bench comprising Mr. Justice Prakash Shrivastava, Chairperson and Dr. A. Senthil Vel, Expert Member.

The application, IA No. 389/2025, was filed by Northern Railway challenging a show cause notice issued by the Delhi Pollution Control Committee (DPCC) for the imposition of Environmental Compensation (EC).

During the hearing, the Tribunal noted that the interim plea no longer survived because the DPCC had already completed the proceedings and passed a final order imposing an EC of Rs. 2.06 crore. Consequently, the Bench held that the interim application had become infructuous.

Counsel appearing for Northern Railway submitted that the entity would be filing an appeal against the DPCC’s final order shortly.

The order, signed by the Bench, records that “on account of subsequent developments, the interim application does not survive because in the IA the show cause notice for imposition of Environmental Compensation issued by the DPCC was questioned, but in the meanwhile the proceedings are complete, the EC has been imposed, and the Northern Railway is in the process of filing an appeal.” On this basis, the Tribunal dismissed the interim application.

The Tribunal also took note of the DPCC's Action Taken Report dated September 1, 2025, which revealed significant findings.

The report disclosed that Northern Railway had been operating without the requisite CTO, and the activity was classified under the ‘Red Category’; a classification reserved for the most polluting industries.

The DPCC found that the unit had been in violation for a total of 515 days, beginning December 18, 2023 and continuing until May 15, 2025.

In light of these findings, the DPCC imposed an Environmental Compensation of Rs. 2.06 crore, calculated at Rs. 40,000 per day of violation. The penalty was determined in accordance with the DPCC’s Policy dated March 30, 2022, which allows the base rate of compensation to be doubled when the violating entity operates without obtaining a CTO.

The DPCC further stated that the reply submitted by Northern Railway to the earlier show cause notice dated May 9, 2025 was found unsatisfactory. Consequently, an order dated August 21, 2025 was passed finalising the imposition of the compensation amount.

The order also provided the unit with a final opportunity to apply for CTO within 15 days, along with payment of full applicable fees and submission of all required test reports to ensure compliance with environmental standards.

During the hearing, counsel for the DPCC submitted before the Tribunal that a fresh inspection of the railway shed in question would be undertaken to verify whether environmental norms are now being followed. Taking note of this assurance, the NGT directed the DPCC to conduct the inspection and submit a detailed compliance report within six weeks.

The Tribunal’s order thus records two key operative directions: first, the dismissal of Northern Railway’s interim application as infructuous due to the completion of proceedings before the DPCC; and second, a directive to the DPCC to conduct a fresh inspection of the unit to confirm compliance with environmental regulations.

With the interim plea now disposed of, the case will proceed on the basis of the DPCC’s forthcoming inspection report and any appeal that Northern Railway may file against the penalty order.

The Tribunal has listed the matter for further consideration on December 15, 2025.

Case Title: Gaurav Bansal v. Govt. of NCT of Delhi & Ors.

Bench: Mr. Justice Prakash Shrivastava (Chairperson) and Dr. A. Senthil Vel (Expert Member)

Date of order: September 26, 2025