Dark Mode
Image
Logo
Supreme Court Permits Representation on CSR Fund Allocation for Public Transport in Pollution-Affected Cities

Supreme Court Permits Representation on CSR Fund Allocation for Public Transport in Pollution-Affected Cities

The Supreme Court of India, on December 13, adjudicated a Public Interest Litigation filed under Writ Petition (Civil) Diary No. 39633/2024 by Dr. Sanjay Kulshrestha, who appeared in person, on behalf of Tsunami on Roads, a registered NGO. The petitioner sought judicial directions under the Companies Act, 2013, obligating public and private sector oil companies to allocate their Corporate Social Responsibility (CSR) contributions toward the enhancement of public transport systems in heavily polluted cities, citing environmental and health imperatives.

 

The petitioner articulated the exigency of addressing the deleterious effects of air pollution, which, as he submitted, "has assumed epidemic proportions, claiming the lives of 21 lakh individuals annually in India due to fine particulate matter." Highlighting public transport as the most economically viable mechanism to mitigate air pollution, he remarked, "Across the globe, even affluent nations are prioritizing substantial investments in public transport systems to reduce environmental pollution."

 

The bench, comprising Justice B.V. Nagarathna and Justice Nongmeikapam Kotiswar Singh, deliberated on the plea, which also proposed utilizing CSR funds to offset financial deficits incurred by entities like the Delhi Metro and Delhi Transport Corporation. The petitioner emphasized, "The Delhi Metro faces losses amounting to ₹250 crores, and DTC ₹500 crores. CSR funds could bridge these deficits to make public transportation more accessible and appealing to diverse socio-economic groups."

 

However, the bench clarified the limitations of judicial authority in directing the allocation of CSR resources. Justice Nagarathna observed, "We cannot dictate how CSR funds are to be spent." She further questioned the linkage between the environmental objectives and the petitioner’s suggestion to resolve financial shortfalls, stating, "If these entities are in financial distress, it does not imply oil companies bear the burden of compensation."

 

The petitioner additionally sought directives to the Environment Prevention and Control Authority (EPCA), constituted by the Supreme Court, to formulate guidelines for the effective utilization of CSR contributions and environmental cess funds held by the Central Pollution Control Board (CPCB). He argued that these resources should supplement efforts to enhance public transport as part of broader environmental protection measures.

 

Concluding the hearing, the Court disposed of the writ petition without dismissing it outright, allowing the petitioner the liberty to present detailed representations before relevant authorities, including the EPCA, for appropriate consideration. In its order, the bench noted, "It is needless to observe that such representation, if made, shall be considered in accordance with the law."

 

Case Title: TSUNAMI ON ROADS (REGISTERED NGO) THROUGH DR SANJAY KULSHRESTHA

                v. UNION OF INDIA AND ORS

Case No. WP (C) Diary No(s). 39633/2024

Bench: Justice B.V. Nagarathna and Justice Nongmeikapam Kotiswar Singh

Comment / Reply From

Newsletter

Subscribe to our mailing list to get the new updates!