NGT imposes ₹25 crore fine on bottlers of Coca-Cola, Pepsi in UP for illegal extraction of groundwater

The National Green Tribunal (NGT) recently ordered two bottling businesses in Uttar Pradesh responsible for the products of Coca Cola and PepsiCo, to pay a total of about ₹25 crores as environmental compensation for illegal extraction of groundwater [Sushil Bhatt vs Moon Beverages Ltd. & Ors.].The NGT ruled that the companies' bottling operations were in violation of environmental legislation issued by the Central Ground Water Authority (CGWA) as they operated without the requisite no objection certificate (NOC) to withdraw groundwater. “We are of the view that PPs (Project Proponents) are responsible for illegal extraction of ground water at least after expiry of NOCs, issued to them by CGWA. They continued to extract ground water without any authority. Further, they are also liable to pay environmental compensation for causing loss to environment by failing to comply the most crucial condition of NOCs, i.e., recharge of water,” the judgement said.Both companies were also accused of breaking the terms of their licences by failing to meet their requirements to recharge ground water. Moon Beverages (Coco Cola) and Varun Beverages (PepsiCo) were thus ordered to pay a total of around ₹25 crores for illegally abstracting groundwater and inflicting environmental harm.The coram consisted of retired Supreme Court Justice Adarsh Kumar Goel as the Chairperson, Sudhir Agarwal and as Brijesh Sethi as judicial members, and Prof A Senthil Vel and Dr Afroz Ahmad as expert members. .The NGT also came down hard on the government regulator Central Ground Water Authority (CGWA), pointing out various flaws in its operations..“Time and again, acting in a most callous and defiant mode, CGWA has proceeded in its own way, going to the extent of permitting wholly illegally massive exploitation of ground water, that too, in extremely stressed areas, wholly unconcerned with the consequences,” the NGT bemoaned..The Uttar Pradesh Ground Water Department (UPGWD) was also held accountable as the body attempted to confer authority to the companies for extraction of groundwater without having the jurisdiction to do so. ."They have also contributed and are responsible for causing damage to environment in causing illegal abstraction of ground water for which it may be held accountable," the NGT said..The tribunal imposed an environmental compensation of ₹1.85 crore on Moon Beverages Ltd located at Greater Noida, ₹13.24 crore on Moon Beverage Ltd’s Sahibabad unit and ₹9.71 crore on Varun Beverages Ltd’s Greater Noida unit..A joint committee comprising the Ministries of Environment, Forests & Climate Change and Jlak Shakti, the Central Pollution Control Board, the Central GroundWater Authority, the Uttar Pradesh Ground Water Department and District Magistrates of concerned districts were also set up to ensure that the compensation received is utilised for recharge of ground water.Advocate Rohit Kumar Tuteja argued for the petitioners. Advocates AK Prasad, Pradeep Misra, Daleep Dhyani, Balendu Shekhar, Raj Kumar, Puja Kalra, Sanjay Upadhyay, R Jawharlal represented the respondents. [Read Judgment]