The Supreme Court has sought a comprehensive explanation from the Union Government regarding the utilisation of the Environment Relief Fund (ERF), expressing concern that a statutory fund created to provide immediate relief to victims of accidents involving hazardous substances has remained largely unutilised. Chief Justice Surya Kant, Justice Joymalya
Bagchi, and Justice N.V. Pancholi directed the Centre to disclose the total amount collected, the present corpus, the funds disbursed, and the mechanism adopted for administering theERF.
The petition highlighted that although Rs. 81 crore have been collected by 2020, there was no evidence that compensation had been paid to victims or their families. The Court also directed the Central Pollution control Board (CPCB) to assist by placing complete details regarding the administration and utilisation of the fund before the bench.
The Public Liability Insurance Act, 1991, mandates to owners handling hazardous substances to obtain insurance and establishes the ERF to provide immediate compensation without requiring victims to undergo prolonged litigation. The case underscores the importance of welfare legislation and their implementation. It takes a stand for governmental accountability. The Supreme Court’s intervention seeks to ensure that the statutory objective of providing financial assistance to victims of industrial accidents is not nullified by the inaction of the administration.
Case : GYAN PRAKASH v. UNION OF INDIA AND ORS. W.P.(C) No. 1093/2019
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