State Board had earlier issued Office Order No. F.14.(5-Adm)RSPCB/Project/1529-1539 dated 11.08.2023, which directed that the amount of Environmental Compensation (EC) be computed following the principle of natural justice, with an Opportunity of Being Heard (OBH)/Show Cause Notice given to the project proponent before issuance of the final order, mandatorily citing the intended EC amount. The State Board observed that Group In-charges were mentioning only the violation period and calculated EC amount in show cause notices and final directions, without disclosing the detailed calculation. Violators have challenged the Board’s orders before Constitutional Courts and other judicial forums on the plea of non-disclosure of detailed calculation and applicable factors.

The State Board has substituted point no. 2 of the earlier Office Order dated 11.08.2023 as follows:

1. EC shall not be imposed on any industry without providing an Opportunity of Being Heard (OBH).
   b. The show cause notice for intended imposition of EC shall be issued by Headquarters only.
   c. Before issuing final directions, a detailed show cause notice shall be served upon the project proponent, explaining the factual allegations and providing OBH, with the Project Proponent having the liberty to submit a written reply or appear in person before the Member Secretary, RSPCB.
   d. The complete calculation of EC (EC = PI x N x S x LF x RF) shall be mandatorily mentioned in the show cause notice and final order/directions, explaining the factors and values.
   e. The show cause notice shall specifically disclose the basis of the proposed compensation, methodology, formula, parameters, period of violation, data relied upon, and applicable guidelines, circulars or mechanism adopted for computing the amount.
   f. Reasonable time shall be given to the project proponent for OBH, and the project proponent will have to submit written submissions in support of the case.
   g. Any final order/direction levying EC shall specifically deal with objections raised by project proponents regarding the computation and reasons for accepting or rejecting the same.
   h. The final direction shall be a speaking order considering the written reply/documents submitted by the project proponent and decisions taken in the OBH.
   i. Regional Officers shall inform Headquarters immediately if any reply or correspondence is received from project proponents regarding imposition of EC.

All Group In-charges are directed to issue speaking orders in matters pertaining to imposition of EC, as indicated above. This order comes into force with immediate effect, approved by the competent authority and signed by Kapil Chandrawal, Member Secretary. Copy marked to PS to Chairperson, PS to Member Secretary, CEE-I/CEE-II, all Group In-charges, all Regional Officers, and Programmer (IT Cell) for uploading on the State Board website.