NGT orders Amazon to pay Rs 6 lakh compensation for violating sewage treatment plant norms

The National Green Tribunal (NGT) recently upheld an order directing e-commerce giant Amazon to pay compensation for violation of sewage treatment plant (STP) standards at its fulfillment center in Bilaspur, Haryana (Amazon Seller Services Private Limited v. Haryana State Pollution Control Board & Anr.).

Chairman Prakash Srivastava (judge member) and expert member Dr Senthil Vel, however, it reduced the amount of compensation payable from around ₹ 13 lakh to ₹ 6 lakh after reconsidering the number of days since the breach.

The NGT noted that in a written recommendation, the Expert Appraisal Commission (EAC) had initially set the number of days of infringement at 32 days, based on the date of Amazon’s first response. However, later in the report, this number was changed to 70, based on the date of Amazon’s second response.

The Court noted this error in its May 28 decision.

“This approach of the EAC is clearly wrong and therefore the EC’s assessment within 70 days based on the EAC recommendation without taking into account the EAC error cannot be sustained.” NGT took place.

On February 22, 2024, the Haryana State Pollution Control Board (HSPCB) ordered Amazon to pay ₹ 13,12,500 as Environmental Compensation (EC) for violating STP standards. Aggrieved, Amazon moved NGT to seek relief.

Amazon claimed that when the HSPCB took the sample from its STP, the unit was in the maintenance phase. Amazon argued that the sample was not taken in accordance with regulations.

It further claimed that, according to third-party tests, the effluent in the treated water was within recommended limits.

Moreover, Amazon emphasized that the initial proceedings included 32 days of infringement, which were incorrectly extended to 70 days.

On the other hand, HSPCB informed the Tribunal that it had not received any information regarding maintenance activities. The pollution control body added that Amazon presented arguments on the issue after deliberation.

Further, Amazon in its reply admitted the non-compliance and therefore another sample was collected after Amazon submitted performance bond and sample testing fee, HSPCB added.

The HSPCB also defended itself against adopting the number of days of violation as 70 on the ground that the second sample was taken after 70 days.

The NGT noted that Amazon had not initially disputed the test reports in its first response to the HSPCB.

It further noted that there was no credible evidence to support Amazon’s claim that the STP installation was undergoing maintenance at the time the sample was taken.

It further highlighted that the test reports submitted by Amazon were dated earlier than those conducted by HSPCB.

The NGT, therefore, held that the HSPCB reports were conclusive and that it was right to impose EC levy on Amazon.

However, since the HSPCB had wrongly calculated the number of days of infringement, the NGT partially allowed Amazon’s appeal and reduced the EC amount payable to ₹6 lakh.

Amazon was represented by supporters Ravish Kumar and Nidhi Raj Bindra.

HSPCB was represented by advocate Rahul Khurana and HSPCB Regional Officer Nuh (RO) Vipin Kumar.