Is The Environment Relief Fund Being Utilized? Supreme Court Seeks Centre's Comprehensive Response
Supreme Court hears plea concerning Environmental Relief Fund established under the Public Liability Insurance Act, 1991.
The Supreme Court today has directed the Union of India to file a comprehensive affidavit concerning the utilization of Environment Relief Fund meant for victims of accidents in the process of handling hazardous substances.
A CJI Surya Kant led bench was hearing a PIL filed by Gyan Prakash who told court, "Nobody has been paid till now who died due to hazardous substances.."
CJI went on to question the Union's counsel, "You know who is dealing with that amount and who is handling it.."
"What have you done so far?", CJI went on to ask.
The controversy in the case pertains to the Environment Relief Fund, which is collected under the provision Section 146 of Motor vehicles Act and Public Liabilities Insurance Act 1991.
"We are informed by Union of India that total amount collected till 2020 was 81 crores..they are not aware of latest figure and there is nothing on record that any scheme has been formulated..," the bench also comprising Justice Bagchi and Pancholi noted.
Court thus ordered, "We want to know how much amount has been disbursed or utilized from the fund. We therefore direct Union of India to file a comprehensive affidavit in four weeks. We direct the Member Secretary CPCB and Union of India to assist us with the details on utilization of the amount."
The Environmental Relief Fund (ERF) was established under the Public Liability Insurance Act, 1991, to provide financial assistance for environmental restoration and relief in cases of industrial accidents involving hazardous substances. The fund is linked to the Act and is administered by the Central Government. It is utilized for paying relief under the awards made by the Collector under Section 7 of the Act. The fund aims to address damages caused by hazardous substances and ensure that victims receive compensation without unnecessary legal hurdles. The Act mandates industries to maintain liability insurance, fostering a culture of responsibility among business owners who handle hazardous materials.
The plea before Supreme Court argues that the fund is lying unutilised and the purpose for which the law was enacted is not being achieved.
Case Title: GYAN PRAKASH Vs UNION OF INDIA
Bench: CJI Kant, Justice Bagchi and Justice Pancholi
Hearing Date: July 21, 2026