The Central Pollution Control Board (CPCB) has imposed an environmental penalty of Rs 1 crore on Reliance Industries Limited for its failure to install vapor recovery systems at its petrol pumps and petrol storage centers. This system is crucial for capturing hazardous gases emitted during the refilling of petroleum storage tanks, which include harmful substances like benzene and xylene that pose significant health risks.
Reliance Industries has contested the CPCB’s order by filing a petition with the National Green Tribunal (NGT), arguing that the fine was levied without prior issuance of a show cause notice. The hearing for this petition took place on July 19, 2024.
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This legal battle stems from a previous directive issued by the NGT on November 22, 2018, which mandated all oil marketing companies to equip their petrol pumps and storage terminals in the National Capital Region (NCR) with vapor recovery systems by April 30, 2019. The directive was part of efforts to reduce the environmental and health impacts of volatile organic compounds (VOCs) emanating from petrol vapors.
In the event of non-compliance, CPCB was authorized to impose environmental fines. Following this, on June 13, 2024, CPCB found that Reliance Industries had not adhered to the NGT’s timeline for installing these systems, leading to the imposition of the Rs 1 crore fine.
The backdrop of this enforcement action includes a related 2019 petition to the Supreme Court by other major oil companies like Indian Oil Corporation Limited (IOCL), Hindustan Petroleum Corporation Limited (HPCL), and Bharat Petroleum Corporation Limited (BPCL). These companies sought an extension from the Supreme Court on the same NGT order. The Supreme Court, in response, granted an extension on February 14, 2019, but reaffirmed on March 14, 2023, that CPCB should ensure full compliance with the NGT’s order. Consequently, IOCL also faced a similar fine of Rs 1 crore for delays in installing the necessary equipment.
During the recent hearing, the advocate representing CPCB requested four weeks to determine whether a show cause notice had been issued to Reliance Industries before imposing the fine. This issue of procedural fairness is central to Reliance Industries’ appeal against the penalty.
The ongoing legal proceedings highlight the challenges and complexities involved in enforcing environmental regulations, especially in industries dealing with hazardous materials. The next hearing is scheduled for August 20, 2024, which will likely provide further clarity on the enforcement of vapor recovery systems and the procedural aspects of imposing environmental fines. This case not only underscores the regulatory efforts to mitigate pollution but also the legal pathways companies might pursue when contesting such penalties
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