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Environmentalist questions ‘diversion of EC funds’ to departments ‘unrelated to environmental restoration’

HPSPCB replies to an RTI: Rs 4.50 crore of Rs 11.79 crore environment compensation collected given to police, rural development in two years, but recipient departments yet to submit Utilisation Certificates

Himachal Pradesh Chief Minister Sukhvinder Singh SukhuHimachal Pradesh Chief Minister Sukhvinder Singh Sukhu

The Himachal Pradesh government has distributed nearly Rs 4.50 crore of the Rs 11.79 core Environment Compensation (EC) collected from violators of pollution norms to the State Police Department and the Department of Rural Development, and invested Rs 3 crore in Fixed Deposit Receipts (FDRs) in the last two financial years, the Himachal Pradesh State Pollution Control Board (HPSPCB) replied to a Right to Information (RTI) Act application.

However, Environmental activist Kamal Anand from Jalandhar in Punjab, who filed the RTI application before HPSPCB, the nodal agency responsible for recovering EC from projects violating pollution norms, said that the RTI remained silent on the expenditure incurred specifically for environmental restoration, plantation drives, pollution mitigation, or other ecological rehabilitation measures for which such compensation is generally intended.

“The diversion of EC funds to departments unrelated to environmental restoration directly violates the regulatory framework laid down by the National Green Tribunal (NGT),” Kamal claimed.

According to the RTI reply, a total of Rs 11.79 crore was recovered as EC from various project proponents over the last two years. During the same period, the state government also earned approximately Rs 36.58 lakh interest on the EC amount deposited in the HPSPCB account.

“Rs 3.50 crore and Rs 1 crore were paid as Grants to the police department and Rural Development, respectively, for which Utilisation Certificates (UC) are still awaited, and Rs 3 crore has been invested in the shape of FDR,” according to the RTI reply.

As per the RTI reply, HPSPCB collected Rs 3.97 crore Environment Compensation from April 1, 2024, to March 31, 2025. Of this amount, Rs 3 crore was invested in FDRs, while only about Rs 2.44 lakh was shown as expenditure.

HPSPCB also earned an interest amounting to Rs 20.05 lakh on the deposited compensation amount during the same period.

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In the subsequent financial year, from April 1, 2025, to March 31, 2026, the Board received Rs 7.82 crore as Environment Compensation and earned approximately Rs 36.58 lakh interest on the deposited funds. Out of the total amount collected during this period, expenditure worth Rs 4.72 crore was reported.

Account statements and records provided by HPSPCB show the EC was recovered from a wide range of violators, including stone crushers, civic bodies such as municipal councils, nagar panchayats and municipal corporations, agencies responsible for installation and operation of sewage treatment plants (STPs), Special Area Development Authorities (SADA), and other project proponents accused of violating pollution norms.

Anand alleged, “This diversion of funds directly defies the strict regulatory framework established under the NGT’s landmark verdicts, which codified clear guidelines restricting the utilisation of EC funds to a specific and non-negotiable template.” “Above all, why do the departments which received the EC as grants not submit UCs?” Anand questioned.

There was no immediate response from HPSPCB on the matter. However, Member Secretary of the Board, Sushil Kumar Singla, said, “An official response will be provided after examining documents.”

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Director of Environment, Science, Technology and Climate Change (ESTCC) Pushpinder Rana did not respond to repeated phone calls seeking his comment.

Government sources said a high-level committee comprising the chief secretary, the member secretary of the Pollution Control Board and other senior officers takes decisions about the EC funds utilisation.

Saurabh Parashar is an Assistant Editor at The Indian Express, primarily responsible for the publication’s coverage of Himachal Pradesh. He is a seasoned journalist with over 17 years of experience in print media, specializing in crime, legal affairs, and investigative reporting. Professional Background Education: He holds a Master’s degree in Mass Communication from Guru Jambheshwar University of Science & Technology (Hisar) and a Law degree from Himachal Pradesh University (HPU), Shimla. This legal background significantly informs his reporting on complex judicial and administrative matters. Career Path: Before joining The Indian Express in 2017, he spent 12 years with The Times of India. Core Beats: His primary focus is the socio-political landscape of the hill state, with a specific emphasis on the environment, forest conservation, drug menace (specifically "Chitta"), affairs related to tribal and archaeology and the unique challenges of governance in high-altitude regions. Recent Notable Articles (Late 2025) His recent reporting highlights the critical intersection of policy, law, and social safety in Himachal Pradesh: 1. "Himachal’s battle against Chitta: Why the border areas are most vulnerable" (Late 2025): An investigative look at the transit routes from Punjab and the impact on local youth. 2. "Shimla ropeway clears key hurdle as 820 trees face the axe :According to the Forest Survey of India’s 2021 assessment, 47.21 percent of Shimla’s 5,131 sq km geographical area is under forest cover (Nov 17, 2025). 3. "Himachal to handover 2.7427 ha of non-forest land for Shimla Ropeway: Given the land’s non-forest nature, RTDC and the state will not require permission from MoEFCC" (Nov 18, 2025) 4. "How the centuries-old Jodidara tradition is fading in Himachal’s Trans-Giri region: Jodidara: a form of fraternal polyandry—has long been part of Hatti tribal culture in the Trans-Giri region of Himachal Pradesh and adjoining Uttarakhand. It is believed to have evolved to prevent division of ancestral land and maintain unity among brothers in the harsh, mountainous terrain" (Aug 18, 2025) Legal & Agricultural Affairs "Kisan Sabha hails SC’s setting aside Himachal HC order to remove orchards from forest land" (Dec 18, 2025): Covering a major Supreme Court victory for farmers, where a High Court order to remove fruit-bearing apple orchards was overturned. "Himachal Cabinet nod to new tourism policy; focus on home-stays in tribal areas" (Dec 11, 2025): Detailing the legislative push to decentralize tourism and bring economic benefits to Lahaul-Spiti and Kinnaur. 3. Governance & Environment "Forest rights and development: Why Himachal is seeking more leeway from Centre" (Dec 19, 2025): Reporting on the legal hurdles faced by the state in infrastructure projects due to the Forest Conservation Act. "Cloudbursts and resilience: How Himachal’s remote villages are building back better" (Nov 2025): Following up on the long-term rehabilitation efforts after monsoon-related disasters. Crime especially cyber crimes, crypto currency etc: crypto currency: "Agents in uniform, motivational speeches, lavish parties: How a Himachal crypto con went unnoticed:A serial conman, a ‘Nelson Mandela Nobel Peace Award winner', and retired policemen got together to pull off a Rs 1,740-crore fraud" (Nov 10, 2023) Signature Beats Saurabh is recognized for his tenacious reporting on the state's drug epidemic. His deep familiarity with the topography and tribal culture of Himachal allows him to report from remote locations like Spiti, Pangi, Shillai, which are often overlooked by national media. His legal expertise makes him a primary choice for covering the Himachal Pradesh High Court on issues ranging from local body elections to environmental PILs. X (Twitter): @saurabh_prashar . ... Read More

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