Supreme Court Admits Nectar Lifesciences’ Appeal Against NGT Order
K N Mishra
04/Apr/2025

What's covered under the Article:
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Nectar Lifesciences challenges NGT’s ₹5 Cr environmental penalty in Supreme Court; final compensation pending adjudication by PSPCB.
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The case involves environmental violations at the company’s Derabassi unit, as flagged by the Punjab State Pollution Control Board.
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SEBI disclosure includes detailed regulatory actions, financial implications, and legal proceedings initiated against the company.
Nectar Lifesciences Ltd., a prominent pharmaceutical company, has provided a critical update regarding its ongoing litigation and regulatory issues. The company has been embroiled in legal proceedings with the National Green Tribunal (NGT) and the Punjab State Pollution Control Board (PSPCB) over alleged environmental violations. The case involves significant financial implications for the company due to the imposition of environmental compensation.
Background of the Case:
In an earlier disclosure, Nectar Lifesciences Ltd. reported that the NGT had imposed an interim environmental compensation of Rs. 5 crores on the company due to violations of environmental laws at its Derabassi plant. The National Green Tribunal directed the company to deposit this amount with the PSPCB within two months. However, the final environmental compensation amount is still under review and will be determined based on further adjudication by the PSPCB.
Details of the NGT Order:
The NGT's ruling, dated November 21, 2024, mandated the company to pay the interim compensation within the prescribed period. The Tribunal also directed the PSPCB to determine the final compensation after conducting a detailed hearing with the company. The final compensation could either be higher or lower than the interim amount depending on the findings of the PSPCB. If the final compensation amount exceeds the interim amount, the company will have to pay the difference. If the final amount is less, the company will receive a refund for the excess interim compensation paid.
In addition, the NGT directed the PSPCB to conduct periodic inspections of the company's facilities to ensure strict adherence to environmental laws for a period of six months, starting from December 2024. The NGT has also warned of potential criminal proceedings against the company if any further violations are found.
Company's Response and Legal Strategy:
Nectar Lifesciences strongly disputes the findings of the NGT and is actively pursuing legal recourse. The company has filed an appeal before the Hon’ble Supreme Court against the NGT's decision. The Supreme Court has admitted the civil appeal, and the final outcome of the case will depend on the Court's judgment. The company has emphasized that the financial implications of the case will be contingent on the final judgment.
Apart from challenging the interim environmental compensation order, Nectar Lifesciences also has an opportunity to present its case before the PSPCB. This will occur during the adjudication process, where the company can argue for a reduction in the final environmental compensation amount.
The company also pointed out that the proceedings initiated by the NGT could have far-reaching consequences for the company, especially if criminal proceedings are initiated for past violations or if additional environmental issues are discovered in future inspections. This has prompted Nectar Lifesciences to work closely with legal counsel and environmental experts to ensure compliance and address any concerns raised by the regulatory authorities.
Future Developments:
As the case progresses, Nectar Lifesciences Ltd. will continue to challenge the NGT's interim compensation order and engage with the PSPCB to resolve the matter. The company remains committed to complying with all environmental regulations and ensuring that its operations meet the highest standards of environmental responsibility.
The company’s legal and environmental teams are focused on ensuring the matter is resolved favorably and that the final environmental compensation does not have an adverse impact on the company's financial health.
The company has pledged to keep its stakeholders updated on the progress of the case, including any further legal developments or regulatory actions taken by the NGT or PSPCB. As the litigation continues, stakeholders are advised to monitor official disclosures from Nectar Lifesciences for any additional updates or changes related to the case.
In conclusion, while the company faces significant financial uncertainty due to the ongoing litigation, it is confident that its appeal to the Supreme Court will yield a favorable outcome. In the meantime, it continues to cooperate with the PSPCB and address all legal and environmental concerns in a proactive manner.
Nectar Lifesciences Ltd. remains committed to maintaining transparency in its operations and legal proceedings, ensuring that its shareholders and stakeholders are well-informed about any significant changes or developments that may affect the company’s future operations.
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