Holding

The Court held that the Supreme Court’s directions for complete conversion to CNG are final, cannot be varied, and the Union’s request for extension is dismissed.

Summary

The Supreme Court examined the Union of India's repeated attempts to extend the deadline for phasing out diesel buses in Delhi and to modify the Court's earlier orders directing a complete conversion to CNG. It held that the directions of the Bhure Lal Committee and the Environment Pollution (Prevention and Control) Authority, issued under the Environment (Protection) Act, are statutory, final and binding, and cannot be altered by any administrative decision. The Court rejected the Union's claim of CNG shortage, noting ample supply and the priority of public health over industrial interests, and applied the precautionary and polluter‑pays principles. It dismissed the Union's application for extension with costs and imposed daily penalties on operators continuing to run diesel buses. Further directions were issued to allocate CNG preferentially to the transport sector, to increase supply, and to devise a scheme for other polluted cities, while also allowing LPG as an alternative fuel.

Issues considered

The Union of India’s right to seek extension or modification of the Supreme Court’s order mandating conversion of diesel buses to CNG.
Whether the statutory directions of the Bhure Lal Committee and the Environment Pollution Authority are binding and can be varied by administrative action.
Whether there is a genuine shortage of CNG supply to the transport sector in Delhi.
Application of the precautionary principle and polluter‑pays principle in the context of vehicular air‑pollution control.
Allocation of CNG between transport sector and industrial users under the constitutional duty to protect public health.

Legislation cited

Constitution of Indias. Article 39(3), s. Article 47, s. Article 48A
Environment (Protection) Act, 1986s. Section 3

Subjects

environmental lawair pollutionvehicular pollutionCNG conversionprecautionary principlepolluter pays principlesustainable developmentpublic healthconstitutional dutyenvironmental protection

Judgment

M.C. MEHTA A
V.
UNION OF INDIA AND ORS.

APRIL 5, 2002

[B.N. KIRPAL, V.N. KHARE AND ASHOK BHAN, JJ.] B

., Constitution of India, !950:

Articles 39(3), 47 and 48-A-Held, these provisions by themselves and
• collectively cast a duty on the State to secure the health of the people, improve C
public health and protect and improve the environment.

Environmental Law:

Air-pollution-City of Delhi-Vehicular pollution-Directions by
Supreme Court to control vehicular pollution in the National capital- D
Directions by Environment pollution (Prevention and Control) Authority to
phase out non-CNG buses-Report of Bhure Lal Committee for conversion to
CNG mode and direction to phase out non-CNG buses with a time frame--
Report accepted by Supreme Court and directions given by it to switch over
to CNG foe/ within a specified time limit-Time for phasing out diesel buses E
expired-Government of NCT of Delhi and Union Government again seeking
extension of time for conversion ofcon1mercial vehicles to CNG-Time again
extended upto 3!.I.2002-1.A. by Union of India for farther extension of
time-Suggestion by Union of india also to permit use of LPG fuel-Held, in
our constitutional set up orders and directions of Supreme Court cannot be
nullified or modified or in any way altered by any administrative decision of F
Central or State Governn1ent-Administrative decision to continue to ply diesel
buses is in violation of Supreme Court's order-LPG should be an alternative
to CNG fuel-IA of Union of India for extension of time rejected-As owners
have continued to ply diesel buses beyond 3I.l.2002 contrary to Supreme
Court's order, for this disobedience, Director of Transport, Delhi will collect G
from them the specified amount-Further directions given to Union of India
to ensure sufficient a/location of CNG to NCT of Delhi and to prepare a
scheme containing time schedule for supply of CNG to other polluted cities of
the country.

Parivesh (September, 200 I issue) published by the Central Pollution Control H
963
964 SUPREME COURT REPORTS [2002] 2 S.C.R.

A Board, referred to.
Environmental Law:

Sustainable development- 'The precautionary principle ' and the 'polluter
pays principle '-Discussed Doctrines.
B
Ve/lore Citizens' Welfare Forum v. Union ofIndia and Ors., [1996] 5 SCC
647, reiterated.

Environment (Protection) Act, 1986: ~-

.C s.3-Vehicular pollution in city of Delhi-Establishment of Bhure Lal
Committee as a result of orders of Supreme Court-C.ommittee recommended ,._
conversion to CNG mode and directed phasing out of non-CNG commercial
vehicles within a time limit-Held, Bhure Lal Committee was established u/s
3-Directions issued by the said Committee are statutory and continue to be
in force-It is not open to Union of India to seek variation of the same without
D any justifiable reason-Environment Pollution (Prevention and Control)
Authority is also a statutory authority constituted u/s 3-Authority also directed
to phase out non-CNG buses-Its directions are final and binding on all
· persons and organisations concerned-Environments Law:
#..
Sector 14 Residents Welfare Association and Ors. v. State ofDelhi and Ors.,
E (1999) 1 sec 161, relied on. ~

CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 13029 of
1985.
..-.
(Under Article 32 of the Constitution of India.)
F
Harish N. Salve, Solicitor General, (A.C.), Mukul Rohtagi, Additional
Solicitor General, Rakesh Dwivedi, T.R. Andhiyarujina, Uday Umesh Lalit,
(AC), Ms Aparajit Singh, Siddarth Choudhary, M.C. Mehta in person, (NP)
for Petitioner, Sushi! Kumar Jain, Ajay Choudhary, Sanjay Bansal, G.K. Bansal,
G Vineet Jhanji, Ms. Shyel Trehan, Ms. Indu Malhotra, S. Wasim A. Qadri,
Abhishek Choudhary, Bipul Kumar, D.S. Mehra, A.D.N. Rao, Y.P. Mahajan,
B.V. Balaramdas, Percy Gandhi, R.N. Karanjewala, Ms. Nandini Gore,
Ms, Pooja Gautam, Ms. Manik Karanjawala, S.K. Puri, Ujjwal Banerjee,
Ms. Anindita Gupta, H.K. Puri, Siddharth Yadav, Ms. Anupama Grover;-Rakesh
K. Sharma, Narendra Venna, Vishal Gupta, Sanjeev K. Kapoor, Sanjay Pathak,
H Anil Kumar Mittal, Prashant Bhushan, Joseph Pookkatt, Presenjit Keswani,
M.C. MEHTAv. U.0.l. 965
Prashant Kumar, Dhruv Mehta, Ms. Anu Mehta, Bipul Kumar, Ms. A. A
Subhashini, Ms. Sheil Sethi, Vijay Panjwani, Sri Narain, Sandeep Narain,
Ms. Anjali, Ms. Rani Chhabra, V.B. Saharya, Rakesh K. Khanna, Reetesh
Singh and Surya Kant for the appearing parites.

The following Order of the Court was delivered
B
Article 39 (e), 47 and 48A by themselves and collectively cast a duty
on the State to secure the health of the people, improve public health and
protect and improve the environment. It was by reason of the lack of effort
on the part of the enforcement agencies, not withstanding adequate laws being
in place, that this Court has been concerned with the state of air pollution in C
the capital of this country. Lack of concern or effort on the part of various
governmental agencies had resulted in spiralling pollution levels. The quality
of air was steadily decreasing and no effective steps were being taken by the
administration in this behalf.

It was by reason of the failure to discharge its constitutional obligations, D

- ·' and with a view to protect the health of the present and future generations, that
this Court, for the first time, on 23rd September, 1986, directed the Delhi
Administration to file an affidavit specifying steps taken by it is for controlling
pollution emission of smoke, noise, etc. from vehicles plying in Delhi.

The concern of this Court in passing various orders since 1986 has only E
been one, namely, to protect the health of the people of Delhi. It is only with
this objective in mind that directions had been issued in an effort to persuade
the governmental authorities to take such steps as would reduce the air pollution.
It is as a result of intervention by this Court that the following measures were
• taken in controlling pollution to some extent.
F
(a) lowering of sulphur content in diesel, first to 0.50% and then to
0.05%;

(b) ensuring supply of only lead free petrol;

- (c) requiring the fitting of catalytic converters;
G

-- (d) directing the supply of pre-mix 2T oil for lubrication of engines

(e)
of two-wheelers and three-wheelers;

directing the phasing out of grossly polluting old vehicles;

(f) directing the lowering of the benzene content in petrol; and
H
966 SUPREME COURT REPORTS [2002) 2 S.C.R.

A (g) ensuring that new vehicles, petrol and diesel, meet Euro-II standards
by September, 2000.

It was during the course of these proceedings that the Bhure Lal Committee
was established under Section 3 of the Environment (Protection) Act, 1986.

B The Environment Pollution (Prevention and Control) Authority is a
statutory authority constituted under Section 3 of the Environment (Protection)
Act, 1986, and its directions are final and binding on all persons_ and
organisations concerned. This position has been reiterated by this Court in
Sector 14 Residents Welfare Association and Ors. v. State of Delhi and Ors.,
(1999] 1 SCC 161. It is the authority which had directed the phasing out of
C non-CNG buses. It is the Bhure Lal Committee which had also recommended ........
the conversion to CNG mode and issued directions that the non-CNG buses
should be phased out.

It is the report of the Bhure Lal Committee which was accepted, and
D orders were passed by this Court on 28th July, 1998, fixing the time limit
within which the switch-over to CNG was to take place. It may be mentioned ../..

here that the need for finding an alternative fuel to diesel had been drawing
the attention of this Court for quite some time. This is evident from the order
dated ~1st October, 1994; in which it was observed as follows:-

E "On an earlier occasion when these matters came up before this Court
it was suggested that to begin with of Government vehicles and public
undertaking vehicles including public transport vehicles could be
equipped with CNG cylinders with necessary modification in the
vehicles to avoid pollution which is hazardous to the health of the
people living in highly polluted cities like Delhi and the other metros
F in the country."

Again, in the order dated 28th March, 1995, and 9th February, 1996,
long before the receipt of the Bhure Lal Committee report, there is a reference
to conversion of government vehicles to CNG, as well as to the installation of
G CNG stations and kits. It is unfortunate that the efforts of the governmental
authorities have not kept pace with the orders passed by this Court. For more
than one year, under one pretext or the other, first the NCT of Delhi and then
the Union of India have been seeking extension of time for conversion of
commerciaf vehicles to CNG. While the anxiety of the Delhi Government to
give it the benefit of doubt, was to see that bus services in this city were not
H disrupted which was the reason that it had sought extensions of the time limit,
M.C. MEHTA v. U.0.1. 967

the response of the Union of India in this regard is baffling, to say the least. A
With a view that the disruption in bus services does not take place and
unnecessary hardship is not caused, this Court has been extending the time
with regard to the conversion of commercial vehicles: Time was first extended
to 30th September, 200 I, and then to 3 I st January, 2002. It is during the
period January, 2001, to February, 2002, that action has been taken by the B
Union of India, which leaves us with no doubt that its intention, clearly, is to
fiustrate the orders passed by this Court with regard to conversion of commercial
vehicles to CNG. The manner in which it has sought to achieve this object is
to try and dis-credit CNG as the proper fuel and, secondly, to represent to this
Court that CNG is in short supply and, thirdly, delay the setting up of adequate C

- dispensing stations.

In 200 I, the Union of India hurriedly set up a Committee headed by Mr.
R.A. Mashelkar to give a report with regard to vehicular pollution. It was
surprising that since 1986, the Union of India had not thought of setting up
such a Committee until after 31st January, 2001, when an order was passed D
in which the apathy on the part of the Government in carrying out the orders
of this court was taken note of, and the authorities were required to comply
with the orders passed. The composition of the Mashelkar Committee was
such that none of its members was either a doctor or an expert in public
health. The said Committee submitted its report, which does not show any
serious concern in protecting the health of the people. The Committee E
recommended that emission norms should be laid down, and that the choice
of the fuel should be left to the users. The Committee seemed to have
overlooked the fact that such norms had been in place for a long time with
hardly any compliance thereof. For instance, the emission norms with regard
' to the quality of air and water have been statutorily provided for but despite p
this, prior to 1996, Delhi was the third most polluted city in the world. It will
not be out of place to mention that there are various emission and other norms
and regulations which are in place, but are invariably breached. The existence
of building regulations have not been able to control rampant unauthorised
and illegal construction, just as the existence of norms relating to effluents
-· have not prevented pollution. Yamuna is no more a holy river, it has been G
relegated to a sewage drain. Norms regarding quality of water and the various

·- orders passed by this Court in another case have not been successful in adding
. any oxygen in the water, the BOD level being zero. Therefore, it is naive of
' the Mashelkar Committee to expect that merely laying down fresh emission
norms will be effective or sufficient to check or control vehicular pollution. H
,.'"-
'
968 SUPREME COURT REPORTS [2002] 2 S.C.R.

A .One of the principles underlying environmental law is that of sustainable
development. This principle requires such development to take place which
is ecologically sustainable. The two essential features of sustainable
development are .
(a) the precautionary principle and
B (b) the polluter pays principle.

The "precautionary principle" was elucidated thus by this court in Vel/ore
Citizens 'Welfare Forum v. Union of India and Ors., [1996] 5 SCC 647, inter
a/ia as follows:

c (1) the State Government and the statutory authorities must anticipate,
prevent and attack the causes of environmental degradation.

(2) Where there are threats of serious and irreversible damage, Jack of
....
scientific certainty should not be used as a reason for postponing
measures to prevent environmental degradation.
D
(3) The "onus of proof' is on the actor or the developer to show that
his action is environmentally benign. ~

(4) It cannot be gainsaid that permission to use automobiles has i'r-
environmental implications, and thus any "auto policy" framed by
the Government must, therefore, of necessity conform to the
E Constitutional principles as well as overriding statutory duties cast
upon the Government under the EPA.
(5) The "auto policy" must, therefore,

(a) focus upon measures to " ... Anticipate, prevent and attack. .. "
F the cause of environmental degradation in this field.

(b) In the absence of adequate information, lean in favour of
environmental• protection by refusing rather than permitting
activities likely to be detrimental.

(c) Adopt the " precautionary principle" and thereby ensure that
G
unless an activity is proved to be environmentally benign in
real and practical terms. It is to be presumed to be
environmentally harmful. ::-..,

(d) Make informed recommendations which balance the needs of
41111
tansportation with the need to protect the environment and
H
M.C. MEHTA v. U.0.1. 969
reverse the large scale degradation that has resulted over the A
years, priority being given to the environment over economic
issues.

Norms for emission and norms for the fuel have existed for over the last
two decades-and the state of the environment is dismal despite the existence
of these nonns. The emission norms stipulated by the Government have failed B
to check air pollution, which has grown to dangerous levels across the country.
Therefore, to recommend that the role of the Government be limited to
specifying norms is a clear abdication of the constitutional and statutory duty
cast upon the Government to protect and preserve the environment, and is in
the teeth of the "precautionary principle''. C

The recommendations made by the Bhure Lal Committee and the
directions issued in 1998 have not been challenged by the Union of India. The
directions issued by the Bhure Lal Committee are statutory and continue to be
in force. It is not, therefore, open to the Union of India to seek variation of
the same without any justifiable reason. Prior to the filling of its affidavit of D
26th April, 2001, the Union of India never opposed change over to CNG. Its
application being I.A. No. 116 for variation was dismissed on 27th April,
200 I. In the order dated 17th September, 200 I, this court observed, while
dealing with another application being I.A. No. 142 in which prayer ( d) was
that the bus operators should have an option of using either CNG or diesel E
with 0.05 sulphur content, that "we do not see any justification to grant prayer
(d) at this stage". Mr. Rohtagi, Addi. Solicitor General submitted that the use
of the expression "at this stage" meant that such a request could be met or
made at a subsequent point of time and that is why the present application
filed on 5th February, 2002 for modification had been filed by the Union of
India. The said plea of Mr. Rohtagi cannot be accepted and is not in accordance F
with the orders passed by this Court. As already noticed, a prayer to this effect
was first made by the Union of India in I.A. No. 116. In the order of 27th
April, 200 l, it was observed that the Court did not think that any modification
of its order dated 26th March, 200 I was required. The application was disposed
of and the request for modification was not accepted. While disposing of the G
application I.A. No. 142 it was first observed in the order as follows:-

- "Our order dated 28.7.1998 with regard to conversion of entire city
bus fleet (OTC and private) to single fuel mode of CNG (direction
'G') does not require any modification Ol"-CRa!lge. That direction
stands." H
970 SUPREME COURT REPORTS [2002] 2 S.C.R.

A When in this order, it was observed that thi;:re was no justification to
grant prayer ( d) "at the stage" it only meant that the question of considering
such a request did not arise specially when similar plea for modification had
been rejected earlier. The expression "at the stage" only meant at this late
stage. The use of the expression "at the stage" cannot be interpreted as ...
r
B permitting the Union of India to once again ask for modification of the Court's I
order with regard to conversion of the city bus fleet to CNG mode.
,
'
The plea of the Government that CNG is in short supply, and that it is
unable to supply adequate quantity is incorrect, and this is clearly a deliberate
,. ;-

attempt to frustrate the orders passed by this Court. Particulars filed in Court
C show that as of today no CNG is being imported. The indigenous produce is
far in excess of what is supplied to the transport sector. It is only a small
fraction of the CNG produced in India which is earmarked for non-industrial
use. Overwhelming quantity is allocated to industries, including the power
sector.

D That there is no shortage of CNG is also evident from the fact that even
during the pendency of these proceedings, while on the one hand it was being
represented to this Court and the Mashelkar Committee that CNG was in short
supply, there was an increase in the allocation of the CNG to ind•1stries. Even
when CNG was-not being supplied to the Pragati Power Station in Delhi, as
E the same has not been commissioned, the CNG eannarked for the power unit
instead of being allocated to the transport sector, was diverted to the industries
in the neighbourhood of Delhi.

If there is a short supply of an essential commodity, then the priority
must be of public health, as opposed to the health of the balance sheet of a
F private company. To enable industries to cut their losses, or make more profit
at the cost of public .health, is not a sign of good governance, and this is
contrary to the constitutional mandate of Article 39(e), 47 and 48A.

While the industries get natural gas at the rate of about Rs. 3 .55 per KG,
G a commercial vehicle owner in Delhi has to pay about Rs. 13.11 per KG
which is four times more than what the industry pays. It was contended by
Mr. Rohtagi that natural gas is supplied to the IGL at the same price at which
it is supplied to the industries. This argument conveniently overlooks the fact
-- '

that IGL is a government company and, therefore, the sale price which the
Government and its company gets on sale of CNG in the transport sector is
.H at least four times more than what it gets from the industries.
M.C.MEHTAv. U.0.1. 971

It is indeed surprising that, ostensibly, with a view to provide more A
' CNG to the transport sector in Delhi, the allotment of CNG to Maruti Udyog
Limited (MUL) has been sought to be cancelled. Normally, it would have
been surprising that if there is shortage of an essential commodity, then the
supply or the sale to the public sector undertaking would be cut, but here, not
only is the supply to the PSU being cut, but also at the same time, supply to B
at least two big business houses has been increased.

It would, under the circumstances, not be incorrect to presume that the
proposal to cut supply of CNG to MUL was for some oblique purpose. Why
should the Government, which is proposing to dis-invest its share in MUL,
take the action of cutting supply of CNG, which would result in increasing its C
expenses and decreasing its value? It is not as if there has been a prorata cut
of all the industrial units in and around Delhi, including MUL, with a view
to increase supply to the transport sector. The proposed cut appears to be
nothing more than an attempt to punish MUL because its Managing Director
is a member of the Shure Lal Committee, which had recommended CNG and,
therefore, the Managing Director and this company must suffer. It is clear that D
.... there is a desire to benefit private industries at the cost of public health and
the public exchequer. A major portion of the CNG goes to industries, and the
government and its undertakings get less than what it would realise from
supplying CNG to the transport sector. Such economics is baffling, to say the
least.
E
Not only is there no shortage of CNG as far as the transport sector is
concerned, but even if there be such a shortage, if crude oil can be imported
and supplied to the refineries for manufacture of petrol and diesel, there is no
reason why CNG, if need be, cannot imported as it ensures less pollution.
'
F
During the course of arguments, literature was filed in Court giving data
from cities all over the world which co-relates increased air pollution with
increase in cardiovascuiar and respiratory diseases and also shows the

-
carcinogenic nature of Respirable Particulate Matter (RSPM)---PMIO (i.e.
matter less than IO microns in size). The scientific studies indicate that air
pollution leads to considerable levels of mortality and morbidity. Fine particulate G
matter, or respirable particulate matter (RSPM)---PM IO (i.e. matter less than
IO microns in size)---is particularly dangerous. The Journal of American
Medical Association (JAMA) has publi.shed in its recent issue the fmdings of
a study involving over 500,000 people, conducted over 16 years, in different
cities of the US. The researchers find that fine particle related pollution leads H
l

r
)
972 SUPREME COURT REPORTS [2002] 2 S.C.R.
I
A to lung cancer and cardiopulmonary mortality. Their research indicates that
with an increase of every 10 microgramme per cum (µg/cum) of fine particles,
the risk of lu~g cancer· increases by 8 per cent.

The USEPA has mandated that annual average levels of PM 2.5 particles
in the air should not exceed 15 µg/cum. The Indian annual national average
B standard for PM l 0 is 60 µg/cum, but most cities, including Delhi register PM
10 levels above 150-200 µg/cum on an annual basis.

A study conducted with regard to children in Bangalore show that the
incident of asthma in percentage of children rose from 9% in 1979 to 29.5%
C in 1999, thereby corresponding increase in vehicles from 1.46 lacs in 1979 to
12.23 lacs in 1999. Similarly, a study by the Chittaranjan Cancer Institute and
Environmental Biology Laboratory of the Department of Zoology of Kolkata
University done between November, 1997 and May 1999, found that about
43% of the children in Kolkata are suffering from respiratory disorders
compared to 14% among the rural children. Alarmingly 94-96% of the children
D were found producing sputum which would usually be reflective of habitual
smokers though only 5.5% of the children were found to be smoking and that
too occasional. As per the study reflected in the Indian Journal of Medical
Research July, 2000, the culprit for the aforesaid was pollution in the ambient
air.

E According to an estimate by the World Bank study using 1992 data, the
annual health cost to India was up to about Rs. 5,550 crores due to ambient
air pollution. Out of this, the health cost of air pollution in Delhi alone was
found to be about Rs. 1000 crores. L

F
The increa1e in respiratory diseases specially amongst the chiidren should
normally be a .cause of concern for any responsible government. The
'
precautionary principle enshrined in the concept of sustainable development r
would have expected the government and the health authorities to take
appropriate action and arrest the air pollution. However, children do not agitate
or hold rallies and, therefore, their sound is not heard and the only concern
G of the Government now appears to be is to protect the financial health of the
polluters, including the oil companies who by present international desirable
standards produce low quality petrol &nd diesel at the cost of public health.

The statistics show that the continuing air pollution is having a more
devastating effect on the people, than what was caused by the Bhopal gas
H tragedy. In that case, the nation, including the Union of India, was rightly
M.C. MEHTA v. U.0.1. 973
agitated and sought action and compensation from the multinational company, . A .
who was held to be responsible for the same. Here, in the case of CNG, the
shoe is on the other foot because the government is not facilitating measures
for clean air and water including the supply to CNG or any other clean
unadulterated fuel. It is due to the lack of proper concern on the part of the
governmental authorities that people are suffering from respiratory and other
diseases. The Bhopal gas tragedy was a one time event which, hopefully, will B
not be repeated, but here, with not enough concern or action being undertaken
by the Union of India, far greater tragedies in the form of degradation of
public health are taking place every day.

Under these circumstances, it becomes the duty of this Court to direct C
such steps lieing taken are necessary for cleaning the air so that the future
generations do not suffer from ill-health.

As in the past, it is imperative, while reiterating the order of 28th July,
1998, to issue further directions in an attempt to improve public health by
decreasing air pollution. We are conscious of the fact that vehicular pollution D
is only one of the causes of air pollution, but Statistics show that, at least in
the metropolitan towns, this is the major source of pollution. In the September,
2001 issue of'Parivesh' a magazine published by the Central Pollution Control
Board relating to air pollution a.'!d human health, dealing with diesel exhaust
particles and its health effects, it was stated at page 34 of the said issue as
follows: E
"The popularity of the diesel engine in heavy duty application in
trucking, rail road, marine transport. DG sets and construction industry
is due to both its fuel efficiency and long service relative to the gasoline
1 engine. Compared with gasoline engine, diesel emissions are lower in F
carbon monoxide (CO), hydrocarbon (HC) and carbon dioxide (C02),
but higher in oxides of nitrogen (NOx) and particulate matter (PM).
Diesel exhaust is a complex mixture of both particulate and gaseous
phase. Diesel exhaust has particulate with mass median diameter of
0.05 to 1.00 micrometer, a size rendering them easily respirable and
capable of depositing in the airways and alveoli. The particles consist G
of a carbonanecous core with a large surface area to which various
hydrocarbons are absorbed, including carcinogenic polycyclic aromatic
hydrocarbons (PAH5) and Nitro-PAH, that have elicited the most
concern with respect to human health. The gaseous phase contains
various products of combustion and hydrocarbons including some of . H
974 SUPREME COURT REPORTS [2002] 2 S.C.R.

A the PAH5 present in the particle phase. Once emitted components of ~
diesel exhaust undergo atmospheric transformation in ways that may
be relevant to human health. For example, nitro-PAHS, created by the
reaction of. directly emitted PAHs with hydroxyl radicals in the
atmosphere can be more potent mutagens and carcinogens and more
bio-available than their precursors. A study undertaken by a Swedish
B Consultancy, Ecotraffic (Peter Anlvik and Ake Branberg, 1999) shows
that the cancer potency of diesel vehicles is more than two times than
that of petrol vehicles in India. But if only the most harmful of the
exhaust emissions, that is particulate emission is considered the
carcinogenic effect of one new diesel car is equivalent to 24 petrol
c cars and 84 new CNG cars on the road."

In the same issue, particulars are given with regard to major air pollution
related diseases in India which are as follows:-

"( l) Acute Respiratory disease:
D 12% of Deaths; 13% of NSD. Largest fraction in the world
Indian ARI in children alone under 5 is responsible for more than
2% of entire GBD.
(2) Chronic Obstructive Pulmonary Disease (COPD):
1.5% of Deaths; 0.9% of NBD
E (3) Lung Cancer
0.4% of Deaths; 0.1 % NBD
(4) Asthma:
0.2% of Deaths; 0.5% of NBD
(5) Tuberculosis; 1
F 8% of Deaths; 5% of NBD; Largest in the world
(6) Perinatal:
6% of Deaths; 7.5% of NBD; Largest in the world
· (7) Cardio Vascular Disease:
17% of Deaths; 5% of NBD
G
I
(8) Blindness: •
0% of Deaths; l % of NBD; Largest in the world NBD/GBD:
National/Global Burden of Disease"
From the aforesaid extracts from the publication of the Central Pollution
H Control Board, it is evident that there was need to control air pollution, and

I
I
.....
M.C. MEHTA v. U.0.1. 975
one of the measures was to reduce the use of diesel. It was with this object A
in view that the Bhure Lal Committee recommended the use of CNG which
was accepted by all the parties including the Union of India when orders were
passed to that effect in July, 1998.
It was submitted on behalf of the Union of India that diesel and CNG
•
are not materially different in the matter of air pollution and instead of 100% B
switchover to CNG if there was a mix of CNG and diesel buses of equal
j proportion the difference would only be of 2% in the pollution levels.
We do not find any valid basis for the aforesaid submission. Data from
the Automotive Research Association of India, Pune shows that the pollution
potential of emissions from CNG is far less than even the Euro-IV standards. C
This is evident from the following table compiled on the basis of the said data.
Comparison of CNG certified test data from Automotive Research
• Association of India (ARAI) with emissions norms for buses.

Sulphur Hydro- Carbon Nitrogen Particulate
level in carbon monoxide oxide matter D
diesel

1992 standards 1 3.5. 14.4 18 No standard

1996 standards 1 2.4. 11.2 14.4 No standard
E
Bharat Stage I, 1.23 49 9 0.40
April 2000 1 .
Bharat Stage II 500 ppm l.t 4.0 7 0.15
(Euro 2 standards (0.05
October 200 I' per cent)
F
Euro 3 350 ppm 0.66 2.1 5 0.10
Standards' (0.035
per cent)

Euro 4 50-10 ppm 0.46 1.5 3.5 0.02

- Standards'

Ashok Leyland.
CNG bus'
(0.005-0-001
per cent)

Nil 0.04* 2.92 2.91 0.01••
G

Telco CNG bus' Nil 0.25* 1.68 3.42 0.03 H
r
976 SUPREME COURT 'REPORTS [2002] 2 S.C.R.

A Note: *Non-Methane Hydrocarbon are a small fraction of total
hydrocarbon in CNG vehicles.

**Certificate from ARAI says· particulates negligible.
..
References:
B 1. CPCB 2000, Environmental Standards for Ambient Air
Automobiles Fuels and Noise, July PCLS/4/2000-2001, p20, p29,
p37, New Delhi.

2. Ministry of Road Transport and High ways. The Gazette of India
Notification, April 24, 2001, GSR 286 (E), New Delhi, mimeo.
c
3. JS McArragher et al 1999, Fuel quality, vehicle technology and
their interactions, CONCA WE, Brussels, p7.

4. Ashok Leyland 2001, Emissions certification data of ARAI, mimeo. 0
(Annexure 1)
D
5. TELCO 2001, Emissions certification data of ARAI, mimeo.

With the emissions from the CNG vehicles being more than comparable
with the EURO-IV standards, the contention of the Union of India that ·a mix
of diesel buses and CNG buses would make a difference of only 2% in the
E pollution levels is patently untenable. In the case of particulates, current CNG
vehicles are 15 times better than Euro-II diesel vehicles (with.500 ppm sulphur)
and only Euro IV diesel vehicles are comparable to CNG vehicles. In fact, the
certificate issued by the Automotive Researc.D Association of India (ARAI) to
the bus manufactures says that particulate emissions were negligible ·and could
not be measured. The aforesaid analysis emphasize the need for change to
F non-liquid fu~l like CNG or LPG so as to improve the air quality in this
country and not merely of Delhi. Such change over may perhaps obviate the
need to manufacture vehicles meeting Euro III or Euro IV standards.

It was as a result of the various orders passed by this Court that the air
G pollution level in the city has been stabilised. In 2000, the levels of annual
average levels ofRSPM declined to 186 µg/cum from 222 µg/cum. This is no
small achievement as the city continues to add over 2,00,000 vehicles each
year and its total vehicular fleet is larger thilll that of Kolkata, Mumbai and
Chennai put together. But even with these efforts, its RSPM pollution remains
roughly 3 times above the national standard for annual average concentration
H of RSPM mandated under the Air Act, 1981.
M.C. MEHTA v. U.0.l. 977
It was repeatedly contended on behalf of the Union of India that no A
other city in the world had introduced CNG buses at the scale directed by this
Court Both the State Government and the Union of India had urged that the
CNG technology was still evolving and experimental. It is no doubt true that
most of the cities of the industrialised world do not have large numbers of
CNG buses, but the share of natural gas buses, needed to meet the stringent
norms in the future, are growing. The data filed indicates that in the United B
States CNG buses account for l 8 per cent of the current bus orders and 28 per
cent of the potential orders. Under pressure to clean up the air because of the
approaching Olympic Games in 2004, Beijing has resorted to an alternative
fuel strategy. Latest figures from Beijing indicates that there will be 18,000
buses fuelled by CNG, LPG and electricity in that city. By 1999, Beijing had C
l 300 CNG buses and the numbers are growing rapidly to meet the Olympic
deadline. Similarly, the Ministry of Environment in South Korea-partly to
·meet the targets in time for 2002 World Cup Soccer aims to induct 20,000
natural gas buses in its fleet and already 3000 such buses are plying. [Source
Moon---:-soo Ahn 2000, Korean CNG bus programme. The Environmental
,> Benefits, Ministry of Environment, Korea, Automotive Pollution Control D
Division, Mimeo.]

From the aforesaid, it is clear that the alternative fuel of CNG, LPG and
electricity is a preferred technology which critically polluted cities like Delhi
need as a leapfrogging technological option. E
This court has shown concern about the reports relating to adulteration
of petroleum products in Delhi. A report was called for from the Bhure Lal
., Committee. The said report confirms that adulteration is taking place. The
sample failure rate in the study which has been carried out was 26 per cent.
The report also indicates that the existing fuel specification standards and the F
tests specified are inadequate for detecting adulteration. Two dummy samples-
one with l 0 per cent and the other with 20 per cent Kerosene were sent to the
Fuel Testing Laboratory, Naida. The result of the test report of the test
laboratory showed that the product met the specification of HSD. However,
a third sample with 15 per cent contamination was declared as not meeting the
HSD specification. This shows that reliance cannot be placed on such G
laboratories which puts in great doubt the entire mechanism for detection of
adulteration. Considering the quantity of Kerosene which is supplied to Delhi
it is not improbable that this is one of the ingredients used, along with naphtha
etc. for adulterating the fuel supplied to ihe customer. Under the circumstances,
merely lowering the sulphur, and the benzene content in diesel and petrol H
978 SUPREME COURT REPORTS [2002] 2 S.C.R.

A respectively will have a little effect unless and until the oil companies can
guaranty that the fuel which was sold from the dispensing stations is pure and
unadulterated. In fact, there is one public sector undertaking which advertises
its petroleum products as "pure for sure". It guarantees that the fuel which
can be obtained from its dispensing stations is unadulterated. This by itself
B clearly indicates acknowledgement by the petroleum industry that adulteration
in not a small measure is taking place and, therefore, the need to advertise the
purity of the products sold by the Bharat Petroleum. It has been alleged; and
there is strong basis for this, that as a result of adulteration, large amounts of
illegal gains and profits are being made. There are various players in this
racket. It is not surprising, therefore, that there is stiff resistance to the
C implementation of the orders of this Court for switch-over to gas which cannot
be adultered and will undoubtedly cause financial loss to the members of the
unholy alliance of adulterators.

As per the available information there seems to be no apparent shortage
of gas. The supply of gas from the South Bassein gas fields has increased over
D the past some years, from 38 mmscmd to 41 mmscmd. Major investment has
. already been sanctioned for expansion of infrastructure to supply natural gas
as well as regassified LNG to northern India.

The Union of India has argued that breakdown in the pipeline would
lead to disruption in supply to the city and could paralyse the transport system
E which would be solely dependent on CNG. However, available information
suggests that the possibility of the pipeline breaking down is remote.
Furthermore, the pipeline itself stores up to 3 months of gas supply needed for
Delhi.
·<"
F The Union Government has to allocate more gas to Delhi to implement
the order of this Court. In January, 2002, the Union Government has roughly
doubled its earlier allocation to Delhi's vehicular fleet. But even this increased
allocation-by diverting gas from a single user, Maruti Udyog Limited-will
be inadequate for implementing the Court's order.

G To meet the needs of current and projected vehicles in the city-the city
requires a mere 4.8 per cent of the current supply of gas by the HBJ pipeline.
The production of gas in the South Bassein gas fields has also increased over ~-,

the last 2-3 years. But the increaseJ production has been allocated_ to industries,
instead of meeting the needs of vehicles arising out of this Court's orders.

H According to available information:
M.C. MEHTA v. U.0.1. 979
Reliance Industries got an additional 0.7 mmscmd; A
Essar got an additional 0.4 mmscmd;

• Gujarat State Fertilizer Corporation got an additional 0.4 mmscmd;

GIPCL (power generating company in Baroda) got 0.5 mmscmd
(this gas is being reported by supplied without any allocation by B
the government and as a "matter of favour")

IPCL-Dahej got an additional 0.85 mmscmd.

As per the latest figures available, there are 3,727 CNG buses on the
road. The additional number of buses, which have to be phased out are 6, 338. C
Once this is done, the total number ofCNG buses on the road will be 10,065.

In the I.A. filed on behalf of the bus manufacturers, it is stated that 1500
chassis which had been ordered are ready for delivery but the persons who
placed orders have not taken the delivery. Therefore, at least 1500 buses can
be replaced immediately. As per the affidavit filed by the manufacturers, D
between Ashok Leyland and TELCO, they have an installed capacity of
1, 100 buses per month. Assuming production of around 70 per cent of the
installed capacity, it would be safe to proceed on the footing that between the
two of them they can provide 800 buses a month. If all the buses operators
chose to buy new buses then @ 800 buses per month, the· entire fleet of
remaining 4838 buses, in addition to the 1500 chassis ready for delivery, can E
be phased out in not more than 7 or 8 months.

The request of the government for phasing out 200 buses a month
appears to be based on some imaginary shortage in the availability of gas.
There is no credible material placed before the Court to show that the
distribution of gas is consistent with the principle of sustainable development. F
Conferring economic advantage upon industry by making available cheap gas
in preference to the need for supplying gas for environmental reason is
inconsistent with the settled Constitutional position.

Even though the time for phasing out diesel buses had expired but in G
view of the situation created by the Government of not cooperating or
complying with the Courts order, a different formula has to be worked out so
as to cause as little inconvenience to the travelling public as possible, while
at the same time punishing the wrong doer. Directions are, therefore, to be
issued regarding the lifting of 1500 buses plus phasing out of 800 buses per
month. The permits to be given are to be time bound and the continued H
980 SUPREME COURT REPORTS [2002] 2 S.C.R.

A operation of the diesel buses till they are replaced would require them to pay
Rs. 500 per bus per day for 30 days of operatfon and thereafter Rs. l,QOO per 1-.I
day and the same is to be deposited with the Director of Transport, Delhi.

Before concluding on this aspect, we may notice that on a query raised
by the Court, the Union of India has infonned the LPG has also been pennitted
B to be used as fuel by the transport sector. This can and should be an alternate
fuel to CNG available to the users as LPG is, at present, environmentally
,_
acceptable. It is for the Government to take steps so as to increase it's supply.
We may here note that there are, as per CPCB data, at least nine other polluted
cities in India where the air quality is critical. These cities are Agra, Lucknow,
C Jharia, Kanpur, Varanasi, Faridabad, Patna, Jodhpur and Pune. But there appears
to be no effective action plan to address the problem of these cities and the
Mashelkar Report ensures their suffering for quite some time. If no immediate
action is taken then it may become necessary for some orders being passed so
as to bring relief to the residents of those cities.

D Lack of adequate supply of CNG has been a cause of concern and has
been referred to in the various orders passed by this Court from time to time.
In the absence of proper response from the governmental authorities, there is
no alternative but to issue the following directions:

I. The Union of India will give priority to transport sector including
E private vehicles all over India with regard to the allocation of
CNG. This means that first the transport sector in Delhi, and in the
other air polluted cities of India, CNG will be allocated and made
available and it is only thereafter if any CNG is available, that the
same can be allocated to the industries, preference being shown to
F public sector undertakings and power projects.

2. I.A. of the Union oflndia for extension of time to run diesel buses
is dismissed with costs of Rs. 20, 000 (Twenty Thousand only). It
is made clear, and it is obvious in our constitutional setup, that
orders and directions of this Court cannot be nullified or modified
G or in any way altered by any administrative decision of the Central
or the State Governments. The administrative decision to continue
to ply diesel buses is, therefore, clearly in violation of this Court's
orders.:.

3. Those persons who have placed orders with the bus manufactures,
H and have not taken delivery of the same shall do so within two
M.C. MEHTA v. U.0.1. 981
weeks from today, failing which their permits shall stand A
automatically cancelled

4. As owners of diesel buses have continued to ply diesel buses
beyond 3 lst January, 2002, contrary to this Court's orders, for the
disobedience of the said orders, the Director of Transport, Delhi,
will collect from them costs at the rate of Rs 500 per bus per day B
increasing to Rs. I, 000 per day after 30 days of operation of the
diesel buses with effect from tomorrow and the same shall be
deposited in this Court by the Director of Transport by the 10th
day of every month.

5. The NCT of Delhi shall phase out 800 diesel buses per month C
starting from !st May, 2002. Till all the diesel buses are replaced
the bus owners who continue to ply the diesel buses shall pay as
per direction No. 4 hereinabove.

6. For implementing these directions, the Union of India and all D
>
governmental authorities, including IGL shall:-

(a) Allocate and make available 16.1 lakh Kg per day ( 2 mmscmd)
of CNG in the NCT of Delhi by 30th June, 2002 for use by the
transport sector,

(b) Increase the above supply of CNG whenever the need arises E
(c) Prepare a scheme containing a time schedule for supply of
CNG to the other polluted cities of India and furnish the same to
this Court by 9th May, 2002 for it's consideration;

(d) It will be open to the Union of India to supply LPG in addition F
to CNG as an alternate fuel or to supply any other clean non-
adulterable fuel as the Bhure Lal Committee may recommend.

7. The NCT of Delhi had announced a scheme for financing CNG
vans, to be run as taxis, for SC/ST. We direct a similar financing
scheme be framed by the Union of India jointly with the NCT of G
Delhi whereby those of the permits of owners of diesel buses are
cancelled due to non-conversion to CNG the same should, in the
first instance, be allotted to SC/ST and to the other weaker sections
of the society. Such a scheme should be prepared and implemented
and a compliance report be filed within four weeks. The costs H
.
982 SUPREME COURT REPORTS . [2002) 2 S.C.R.

A deposited under direction (4) above can be utilised in implementing
the proposed scheme. ...,
To come up on 9th May, 2002 for further orders by which date the
Union of India and the N.C.T. of Delhi will file a further report.

B R.P. Matter is pending.