Centre notifies Rules for use of funds collected through penalties under environmental laws

Among these are also administrative expenses relating to the payment of salaries and other emoluments to the contractual staff and consultants deployed in the project management unit created for the administration of the fund. These expenses shall not exceed five per cent of the amount available in the fund in a financial year with the Centre or the state government.

The Rules define the Union Minister for Environment, Forest and Climate Change as a “competent authority” who may also approve use of funds for “any other purpose” as may be considered necessary by the Centre for the protection and betterment of the environment.

Conducting studies as directed by various courts and tribunals has also been listed as one of the purposes for which the fund can be utilised.

The funds collected through the penalties shall be credited to the consolidated fund of India (CFI) and thereafter transferred to the Public Account of India, as per the Rules made public on January 17.

The Centre had made provisions for the creation of an environmental protection fund in the Jan Vishwas Act, 2023, which paved the way for the decriminalisation of several pollution-linked offences under the Air Act, 1981, the Water Act, 1974, and the EPA, 1986. Penalties for contravention of the provisions of these Acts are in the range of a minimum of Rs 10,000 to Rs 15 lakh.

“The administrator shall remit 75% of the penalty collected in the Fund to the Consolidated Fund of the State of the concerned state and the Union Territory, and 25% of the penalty shall be retained by the Centre,” the Rules stated.

The accounts of the fund will be audited by the Comptroller and Auditor General of India, and the audit reports shall be tabled in the Parliament and state legislatures.