Supreme Court Upholds NGT Ruling, Says Landlords Not Liable for Tenants’ Environmental Violations
Top court dismisses Gujarat Pollution Control Board's challenge, rules property owner cannot be held responsible for environmental breaches committed by tenant-run chemical unit.
NEW DELHI, June 8: The Supreme Court on Monday upheld a National Green Tribunal (NGT) ruling that absolved a Surat property owner from responsibility for environmental violations allegedly committed by a chemical manufacturing unit operating as a tenant on his premises.
A bench comprising Justices Satish Chandra Sharma and Sanjeev Sachdeva declined to interfere with the Tribunal’s November 14, 2025 order, dismissing a plea filed by the Gujarat Pollution Control Board (GPCB).
The pollution watchdog had challenged the NGT’s decision to set aside its order directing landlord Jagmohan Lachiram Jalan to pay interim environmental damage compensation of Rs 25 lakh.
The dispute stemmed from action taken against a dye-intermediate manufacturing unit after inspections revealed that its effluent discharge exceeded prescribed pollution norms. The unit was also found to be operating without complying with mandatory consent-to-establish requirements.
Following the inspection, the GPCB imposed a penalty and sought to recover the amount from the owner of the premises.
Jalan contended that he had leased the property to the director of a private company in 2020 and was unaware that the facility was allegedly functioning without the required approvals. He subsequently lodged a police complaint against the tenant and challenged the action before the Gujarat High Court, which directed the pollution board to reconsider his representation.
Despite reviewing the matter, the GPCB reaffirmed the penalty in 2024. However, the NGT later held that liability for the alleged violations rested with the operating entity and not the landlord, a view that has now been endorsed by the Supreme Court.
