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NGT Stays Rs 1 Cr Fine On Reliance Over Vapour Recovery Systems

By PTI July 26, 2024

A vapour recovery system (VRS) is a device that captures displaced vapours emerging from inside a vehicle’s fuel tank when petrol or diesel is filled into it. In October 2018, the tribunal had directed oil marketing companies (OMCs) to install the device.

NGT Stays Rs 1 Cr Fine On Reliance Over Vapour Recovery Systems
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The National Green Tribunal has stayed the Central Pollution Control Board’s direction, imposing a Rs 1 crore fine on Reliance Industries Ltd. for not installing vapour recovery systems at the company's fuel stations and storage terminals across the National Capital Region.

A vapour recovery system (VRS) is a device that captures displaced vapours emerging from inside a vehicle’s fuel tank when petrol or diesel is filled into it. In October 2018, the tribunal had directed oil marketing companies (OMCs) to install the device.

A bench of judicial member Justice Arun Kumar Tyagi and expert member A Senthil Vel was hearing an appeal by Reliance Industries against the CPCB direction dated June 13 to pay environmental compensation (EC) of Rs 1 crore within 15 days for allegedly failing to meet the timeline prescribed by the tribunal for installing VRS.

In an order passed on July 19, the NGT noted the submissions of the company’s senior advocate that Indian Oil Corporation Ltd. (IOCL), Hindustan Petroleum Corporation Ltd. (HPCL), and Bharat Petroleum Corporation Ltd. (BPCL) had appealed against the tribunal’s order in the Supreme Court, which later extended the timeline.

According to the company’s counsel, a show cause notice was not issued before directing the payment of EC, and the direction was liable to be set aside as it was violative of the principle of parity (with the public sector OMCs) and the principle of natural justice.

The tribunal said, "The counsel appearing for CPCB has conceded that no show cause notice was issued by CPCB prior to the issue of the direction... However, he seeks four weeks to record the factual position in this matter."

"List for further consideration on September 20. In the meantime, operation of the impugned direction issued by CPCB shall remain in abeyance," said the NGT.

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