Monday, May 25, 2026

RTI : Environmentalist questions ‘diversion of EC funds’ to departments ‘unrelated to environmental restoration’ - Written by: Saurabh Parashar

The Indian Express: Chandigarh: Monday, 25 May 2026.
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 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.
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.”
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.