NEW DELHI, June 8: The Supreme Court on Monday upheld a National Green Tribunal (NGT) order holding that a landlord cannot be held liable for environmental violations allegedly committed by a tenant operating a chemical manufacturing unit on rented premises.
A bench of Justices Satish Chandra Sharma and Sanjeev Sachdeva declined to interfere with the NGT’s November 14, 2025 order, dismissing a plea filed by the Gujarat Pollution Control Board (GPCB).
The GPCB had challenged the Tribunal’s decision setting aside its order that held Surat-based landlord Jagmohan Lachiram Jalan liable for environmental violations allegedly committed by his tenant’s chemical unit.
The NGT had ruled that Jalan could not be directed to pay interim environmental damage compensation of Rs 25 lakh for offences attributed to the industrial unit functioning from his property.
The case stemmed from a closure order issued by the GPCB on October 16, 2023, against a company engaged in dye-intermediate manufacturing for operating without obtaining mandatory consent and clearances.
During an inspection, authorities found that effluent samples from the unit exceeded permissible limits, prompting the pollution control board to impose a penalty of Rs 25 lakh.
Jalan contended that he had rented out the premises in 2020 to the director of a private company through a formal agreement and was unaware that the unit was operating without the required permissions.
He subsequently lodged a police complaint against the tenant and approached the Gujarat High Court, which directed the pollution control board to reconsider his representation.
However, the GPCB reaffirmed the penalty in 2024, leading Jalan to challenge the order before the NGT, which ruled in his favour. The Supreme Court has now upheld that decision, bringing the matter to a close. (Agencies)
