03 Feb 2025
This update highlights recent developments in Indian environmental law from January 2025, including judicial pronouncements, legislative measures and regulatory actions.
Partner: Rajat Jariwal, Associates: Prerna Singh and Shatakshi Tripathi
The first month of 2025 saw several important developments in the Indian environmental law regime. On the judicial front, the Supreme Court expressed doubts about the National Green Tribunal’s (NGT) jurisdiction to initiate proceedings under the Prevention of Money Laundering Act, 2002 (PMLA).
On the legislative front, the Ministry of Environment, Forest and Climate Change (MoEF & CC) introduced rules to establish an Extended Producer Responsibility (EPR) framework with respect to the use of vehicles. Further, the Plastic Waste Management Rules, 2016 (PWM Rules) were amended for stricter enforcement.
On the regulatory front, the Central Pollution Control Board (CPCB) introduced a revised categorisation of industries on the basis of their pollution potential. Similar clarifications and/or revisions in categorisation of industries were also issued by multiple State Pollution Control Boards (SPCB).
These key developments are discussed in detail below.
a. Supreme Court clarifies that National Green Tribunal must remand matters of incorrect environmental compensation calculation to State Pollution Control Board for recalculation.
On 9 January 2025, the Supreme Court addressed the proper course of action when the NGT finds that an SPCB has miscalculated environmental compensation. The Court ruled that upon identifying an error, the NGT must remand the matter to SPCB for recalculation.1 Accordingly, the Supreme Court set aside the NGT’s order.
Importantly, the Court raised concerns about the NGT’s jurisdiction to direct the initiation of action under the PMLA, especially in the absence of a First Information Report (FIR) or complaint alleging a scheduled offence. However, the Court did not deal with the issue in detail, given the infirmities present in the NGT order that even otherwise merited being set aside.
The judgment is a welcome clarification on the approach to be adopted by the NGT in the calculation of environmental compensation and conduct of its proceedings.
The MoEF & CC issued the Environment Protection (End-of-Life Vehicles) Rules, 2025 on 6 January 2025.2 These rules aim to streamline the disposal, recycling, and management of end-of-life vehicles and will come into effect from 1 April 2025.
The rules introduce obligations for:
a. producers or vehicle manufacturers,
b. registered owners and bulk consumers,
c. collection centres,
d. registered vehicle scrapping facilities, and
e. automated testing stations.
For the enforcement of these rules, a centralised online portal will be established to facilitate registrations, filing of returns, the exchange of EPR certificates and maintenance of a central data repository for tracking all related activities. Producers, bulk consumers and scrapping facilities will be required to register on the platform and submit proof of compliance with the rules. The rules also introduce a mechanism for imposition of environmental compensation for non-compliance.
These rules mark a significant stride towards uniform enforcement of waste disposal across different waste streams.
In a move to enhance the transparency and accountability of producers, importers, and brand owners regarding plastic packaging, the MoEF & CC issued the Plastic Waste Management (Amendment) Rules, 2025 on 23 January 2025.
From 1 July 2025 onward, producers, importers, and brand owners will be required to print the information required under Rule 11 (marking or labelling of plastic packaging) of the PWM Rules by way of a barcode, product information brochure, or a unique number. This compliance must be intimated to the CPCB which will maintain and publish a list of compliant producers, importers and brand owners on its website. This list will be updated quarterly.
The CPCB has issued a revised methodology for classifying industrial sectors based on their pollution potential, i.e., a combined assessment of water pollutant, air pollutant and waste pollutant scores.3 Each pollutant group receives a score out of 100 and a Cumulative Pollution Index (PI) is calculated accordingly. Based on such PI, industries would be classified as follows:
a. Red: PI >80
b. Orange: PI >55 but <80
c. Green: PI >25 but <55
d. White: PI <25
A ‘Blue’ category has been introduced for Essential Environmental Services (ESS) crucial for managing domestic or household waste. An incentive mechanism has also been established to reward units adopting environmentally friendly practices. This updated framework represents a significant step towards more effective and nuanced environmental regulation in India.
The Central Consumer Protection Authority has issued a corrigendum clarifying the effective date of the Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024. The guidelines, designed to combat misleading environmental marketing practices, are now officially in effect from 15 October 2024.4
By way of an office order, the Haryana State Pollution Control Board (HSPCB) has issued a clarification on the consent requirements for restaurants, dhabas, motels, marriage halls, banquet halls, and party lawns.5
The order explains that that floor area will not be a determining factor for defining restaurants and dhabas. Instead, they will be determined by their seating capacity. A restaurant or dhaba with a minimum seating capacity of 36 people and wastewater generation of less than 10 KLD would be covered under consent management.
On the other hand, motels, marriage halls, banquet halls and party lawns will not be defined by their seating capacity but by their floor area. Such establishments with a minimum floor area of 100 m² and wastewater generation of less than 10 KLD would be covered under consent management.
All units covered under consent management are mandated to install an effluent treatment plant to treat the entire wastewater generated from the kitchen, laundry, and domestic sewage.
On 5 January 2025, the Kerala State Pollution Control Board (KSPCB) issued a circular to revise its categorisation of industries based on their pollution potential.6
The revised list adds 309 new industries to the categorisation, including gamma sterilisation units (White category) and automobile workshops with limited horsepower (Green category, with specific pollution control requirements).
Further, the KSPCB has reclassified gate and grill manufacturing units and has specified that such units with a total horsepower of 7.5 or less (involving grinding, cutting, hammering, and welding without painting) fall under the ‘engineering and fabrication units’ category and would be classified as White. Units exceeding 7.5 horsepower would remain in the Green category.
This revision clarifies the pollution categorisation for various industries, ensuring adherence with the appropriate application process and pollution control measures.
On 9 January 2025, the CPCB issued guidelines for used oil collection, handling, and storage under the EPR framework that primarily categorises collection agents based on their size, transport methods, and operational levels.7
The guidelines aim to provide standardised practices and regulatory requirements for collection agents handling used oil from industrial, commercial, and automotive facilities.
On 17 January 2025, the Securities and Exchange Board of India issued a revised timeline for Environmental, Social and Governance (ESG) rating providers to review ESG ratings following the occurrence of a ‘material event’.8
a. Immediate review for material events: ESG Rating Providers must now conduct a review of the ESG ratings immediately, but not later than ten days, upon the occurrence or announcement or news of a material event.
b. Review based on Business Responsibility and Sustainability Rating publication: For reviews triggered by the publication of a Business Responsibility and Sustainability Rating (BRSR) by the rated entity, the timeframe is immediate, but not later than 45 days of the publication of the BRSR.
This revision aims to ensure timely and responsive ESG rating updates in response to significant developments that may impact a company’s ESG performance.
On 21 January 2025, the Gujarat Pollution Control Board (GPCB) notified a simplified process for grant of consent to non-bedded healthcare units (HCU) and HCUs with less than 30 beds that generate Biological Medical Waste.9
Applications for consent and authorisation for such HCUs will now be processed without any on-site inspection in the initial phase. The processing time for such applications by the Regional Authority has also been reduced to 15 days. Inspections will now be conducted within 90 days after the grant of consent to ensure that the HCUs are compliant with the law. Further, in line with the requirements of the CPCB, HCUs with fewer than 30 beds must appoint a qualified person to oversee the management of biological medical waste.
This accelerated consent process seeks to enable last-mile availability of HCUs while ensuring that environmental and safety standards continue to be met.
On 22 January 2025, the Maharashtra Pollution Control Board (MPCB) issued a directive addressing the concern of industries discharging effluent with Chemical Oxygen Demand exceeding the permissible limits into Common Effluent Treatment Plants (CETP).
The directive mandates that CETPs regularly report to the MPCB about industries that violate effluent discharge standards. Further, CETPs are now authorised to impose penalties on their defaulting member industries.
This move aims to enhance compliance with effluent discharge standards and address the growing concern of untreated effluent discharges from industries. By involving CETPs in the enforcement process, the MPCB seeks to improve efficiency and accountability in pollution control efforts.
On 24 January 2025, the Nagaland Pollution Control Board mandated all dealers of lead acid batteries to compulsorily register themselves, through a newly issued registration form, to continue their business operations in the state.10
This mandatory registration is likely to ensure that the handling, disposal, and recycling of lead acid batteries are undertaken in a streamlined and environmentally friendly manner across the state.
[1]Waris Chemical Pvt Ltd v Uttar Pradesh Pollution Control Board, Civil Appeal No. 6398 of 2024
[2] Ministry of Environment, Forest and Climate Change – Tender PDF
[3] Central Pollution Control Board Publication(PDF)
[5] Haryana State Pollution Control Board Policy Order
[6] Download: Categorisation of Industries Circular – KSPCB
[7]https://eprusedoil.cpcb.gov.in/public/assets/images/Collection_agent_Guidelines.pdf
[10] REGISTRATION FORM OF LEAD ACID BATTERY DEALERS
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