Supreme Court quashes NGT’s 145-page order, says tribunal exceeded jurisdiction in directing ED investigation

New Delhi, August 26, 2025 – The Supreme Court on Monday strongly criticized the National Green Tribunal (NGT) for ordering the Enforcement Directorate (ED) to investigate a polluting company. The court declared that the directive was beyond the tribunal’s jurisdiction and a clear violation of law. The apex court also quashed the NGT’s 145-page order, noting it showed no proper “application of mind.” The judges further held that the ruling was not proportionate to the issues it sought to address.

A bench comprising Chief Justice B.R. Gavai and .Justice Vinod Chandran ruled that the NGT overstepped its authority by directing ED action under the Prevention of Money Laundering Act (PMLA). He reminded the tribunal that its powers extend only to cases of environmental protection, forest conservation, and sustainable development.

Court’s Observations

The Supreme Court ruled that the NGT must act strictly within the powers granted under Section 15 of the NGT Act.“The NGT does not have the power to prosecute individuals under PMLA. That jurisdiction lies elsewhere. It must confine itself to its designated role of ensuring environmental compliance,” the bench said.

The court said the ₹50 crore penalty was unsustainable as it lacked a clear link to proven environmental damage or company turnover. “The methodology adopted by NGT for imposing such penalties was legally untenable and disconnected from the facts,” the court remarked.

Criticism of Tribunal’s Approach

The Supreme Court added that tribunals must not exceed their mandate by giving expansive interpretations of the law.“Judicial discretion should remain tied to statutory powers. Courts and tribunals must refrain from general rhetoric and instead focus on specific facts,” the bench observed.

It also criticized the NGT for “judicial overreach,” cautioning that such orders undermine the credibility of environmental governance. “The NGT should not function as a parallel enforcement agency. Its role is adjudicatory, not prosecutorial,” the judgment noted.

Wider Implications

The ruling is expected to have wide implications for how tribunals function in relation to other enforcement agencies. By striking down the order, the Supreme Court reaffirmed that tribunals cannot extend jurisdiction into areas reserved for other bodies.

Legal experts said the judgment will set a precedent, stopping tribunals from invoking powers beyond their scope. A senior lawyer noted it reinforces the doctrine of separation of powers.

Moving Forward

The verdict makes clear that environmental penalties must rest on measurable damage, not assumptions. The ruling may also push the NGT to review its methods of assessment in pollution cases.

For the company, quashing the ₹50 crore penalty offers relief. However, the court clarified that proven violations under proper jurisdiction can still attract penalties.

By balancing environmental protection with judicial propriety, the Supreme Court reaffirmed its role as the final interpreter of law, keeping justice within constitutional limits.

Source: