Welcome to the September 2026 edition of our environment, social, and governance (“ESG”) monthly newsletter. In this issue, we highlight key regulatory updates, policy changes, and recent judicial decisions that are shaping India’s environmental compliance landscape.
Regulatory Alerts
On 04 September 2026, the Commission for Air Quality Management in National Capital Region and Adjoining Areas (“CAQM”) released the findings of a Special Industrial Inspection Drive conducted in Nuh, Haryana on 03 September 2026, as part of its efforts to abate industrial air pollution in the National Capital Region (“NCR”). Eight flying squads of the CAQM, along with officials of the Haryana State Pollution Control Board (“HSPCB”) and the State administration, inspected 35 industrial units to assess compliance with environmental norms and the conditions of their consent to operate (“CTO”). Of these, 17 units were found non-complying, 11 units were found complying and 07 units were found closed or non-operational. The violations observed included defective wet scrubbers and non-functional or poorly maintained electrostatic precipitator systems, insufficient stack heights for boilers or thermic fluid heaters, inadequate measures for controlling fugitive dust, non-compliant diesel generator (“DG”) sets, burning of wood and use of unapproved liquid fuel in boilers and thermic fluid heaters, non-installation of online continuous emission monitoring systems, outdated or unsubmitted stack monitoring reports, and operation of machinery not covered under the applicable CTO. The CAQM has stated that all industrial units in the NCR must strictly comply with applicable environmental norms and that such inspection drives will continue across the NCR.
On 07 September 2026, the Ministry of Environment, Forest and Climate Change (“MoEFCC”) notified the Greenhouse Gases Emission Intensity Target (Amendment) Rules, 2026. The amendment substitutes the existing entries in the Second Schedule for the petroleum refinery sector, replacing them with revised entity-wise baseline data and greenhouse gas (“GHG”) emission intensity targets for compliance years 2025-26 and 2026-27. The revised table covers 21 obligated petroleum refinery entities, with entity specific registration numbers. The notification also substitutes the existing table for the textile sector, including the spinning sub-sector, with revised entity wise baseline GHG emission intensity and targets for 2025-26 and 2026-27. These changes establish or revise the applicable emission intensity benchmarks for the specified obligated entities under the GHG Emission Intensity Target framework, which operates as part of the Carbon Credit Trading Scheme (“CCTS”) compliance mechanism.
On 08 September 2026, the CAQM held a review meeting with the HSPCB regarding compliance with its statutory directions mandating registration of all construction and demolition (“C&D”) projects having a plot area of 500 sq. metres or above, and installation of functional video monitoring systems on the State web portal for remote monitoring of dust mitigation measures. During a remote monitoring exercise conducted between 19 and 22 June 2026, the CAQM found that web-camera links at most of the over 2,000 active C&D sites registered in Panipat, Sonipat, Faridabad and Gurugram were non-functional, with functional links available at only 15 sites. Treating the continued discrepancies as wilful non-compliance, the CAQM directed the HSPCB to ensure strict compliance with the CAQM’s orders and statutory directions and to take corrective measures, including closure of non-compliant sites. Further, the concerned authorities have been directed to strengthen monitoring and enforcement mechanisms so that the prescribed dust mitigation measures are effectively implemented at C&D sites.
On 29 September 2026, the CAQM amended Direction Nos. 11 to 18 dated 11 June 2021 to extend the web portal-based registration and monitoring mechanism for dust control at C&D sites beyond municipal limits. The requirements for registration and remote monitoring of C&D projects having a plot area of 500 sq. metres or above, earlier applicable only within the jurisdiction of urban local bodies or municipal areas of the NCR, shall now also apply to such projects situated in urban areas, controlled areas, development areas / industrial development areas, industrial areas / zones and highway corridor zones in the NCR, as recognised under applicable Central or State laws and planning frameworks. The respective NCR State Governments and the Government of NCT of Delhi are required to bring such projects within the existing web portal mechanism, while all other provisions of the original directions remain unchanged.
On 29 September 2026, the CAQM issued Direction No. 104 notifying a revised schedule of the Graded Response Action Plan (“GRAP”) for the NCR with immediate effect, which shall henceforth govern GRAP implementation in the NCR. The revised schedule retains the four-stage framework linked to Delhi’s air quality index (“AQI”), namely Stage I ‘Poor’ (AQI 201 – 300), Stage II ‘Very Poor’ (AQI 301 – 400), Stage III ‘Severe’ (AQI 401 – 450) and Stage IV ‘Severe+’ (AQI above 450), with measures to be invoked in advance based on forecasts. Key measures include, under Stage I, a bar on C&D activities at unregistered projects of 500 sq. metres or above, regulated operation of DG sets and a bar on inter-state buses other than electric, CNG and BS-VI diesel buses plying in Delhi-NCR. Stage II provides for staggered timings for public offices in Delhi, Gurugram, Faridabad, Ghaziabad and Gautam Buddha Nagar. Stage III provides for restrictions on dust-generating C&D activities in entire NCR, closure of stone crushers and mining, restrictions on BS-III petrol and BS-IV diesel four-wheelers, hybrid classes in schools up to Class V and a decision on 50% work-from-home for offices. Stage IV provides for a ban on the entry of non-LNG/ CNG / electric/ BS-VI diesel trucks into Delhi, extension of the C&D ban to linear public projects and hybrid mode for classes in schools for higher classes as well.
The Central Pollution Control Board (“CPCB”) has issued guidelines for handling, storage, management, utilisation and disposal of reject water and discarded elements generated from domestic water purification systems and commercial water purification systems. Among other things, the manufacturers shall (a) obtain Standard Mark under a license from the Bureau of Indian Standards as per the Indian Standard IS 16240 under Scheme – I, Schedule – II of the Bureau of Indian Standards (Conformity Assessment) Regulations, 2018; (b) mention about utilization of reverse osmosis (“RO”) reject water in their product’s manual and promote reuse of RO reject water; and (c) adopt a policy of maximizing use of raw materials having high recycling rate for manufacturing water purifiers.
On 30 September 2026, the MoEFCC through an office memorandum (“OM”) has issued directions with respect to the judgement passed by the Hon’ble Supreme Court of India in the case of Vanashakti v. Union of India & Ors. and connected matters. Through this OM, the MoEFCC has directed that the proposals which were applied under the provisions of the 2017 Notification or the 2021 OM may be dealt with in accordance with the directions contained in the aforementioned judgement and the provisions of the 2017 Notification or the 2021 OM as applicable. The OM then sorts the proposals into these categories: (a) all pending proposals for grant of Terms of Reference (“ToR”) / environmental clearance (“EC”) may be taken to their logical conclusion; (b) all proposals for grant of ToR/EC which were rejected/dismissed, returned, de-listed, solely with reference to the interim order dated 02 January 2024 and/or the judgment dated 16 May 2025 (Vanashakti-I), may be taken to their logical conclusion; and (c) all proposals for which ToR has been granted, may be considered for grant of EC.
On 30 September 2026, India and Japan jointly launched the Operational Manual for the India-Japan Joint Crediting Mechanism (“JCM”). This Operational Manual provides detailed guidelines and procedures for the JCM between India and Japan based on the Memorandum of Cooperation signed between the two nations on 7 August 2025 and the Rule of Implementation adopted by the two nations on 8 June 2026. This Operational Manual is developed and adopted by the Secretariat with prior approval of both the Government of the Republic of India and the Government of Japan.
From the docket
In M/s. Punahchakran Private Limited v. Indotech Waste Solutions & Ors., the Hon’ble Supreme Court of India (“Supreme Court”) allowed an appeal against the judgment of the National Green Tribunal, Principal Bench (“NGT”), by which the NGT had set aside the EC and consent to establish (“CTE”) granted to the appellant for a Common Bio-medical Waste Treatment Facility (“CBWTF”). In this case, the Supreme Court held that: (i) the Revised Guidelines for Common Bio-Medical Waste Treatment and Disposal Facilities, 2016 (“RG, 2016”) is mandatory and its non-publication in the Official Gazette does not affect its mandatory nature; (ii) since the appellant’s CBWTF is located in a rural area, the relaxation granted to it from the land requirement of one acre prescribed for setting up a CBWTF after due consultation with the CPCB and the imposition of additional control measures cannot be faulted; (iii) land allotment for the CBWTF cannot be made a condition precedent either to the making of an application for CTE or to the grant of CTE; and (iv) Clause 2 of the RG, 2016 does not make land procurement or land allocation a strict pre-requisite for initiating the process of obtaining the EC or the CTE.
In Anjani Kumar v. Union of India & Ors., in a public interest litigation, the Supreme Court has granted liberty to the Petitioner to approach the NGT. In this case, the issue related to time-bound compliance with statutory sulphur dioxide emission norms, specifically, the mandatory installation and operationalisation of flue gas desulphurisation (“FGD”) systems at all Category A coal-fired thermal power plants (“TPPs”). The Supreme Court requested the NGT to hear the petitioner on interim relief and pass appropriate orders. The cause of action arose from a notification dated 07 December 2015 issued by the MoEFCC whereby strict emission standards were prescribed to be applicable to all coal-based TPPs with a two-year compliance window. It was submitted before the Supreme Court that this deadline has been repeatedly extended leading to various health hazards, especially respiratory and cardiac illnesses , as a result of which hundreds of persons are alleged to have died.
In Samaj Parivartana Samudaya & Ors. v. State of Karnataka & Ors., the Supreme Court has approved eleven conditions as mandatory in character and as the governing framework for permitting sale or disposal of mineral excavated during the subsistence of expired mining leases. These conditions have been carefully calibrated to reconcile the statutory mandate of Rules 12(1)(gg) and 12(1)(hh) of the Mineral Concession Rules, 2016 with the peculiar circumstance that lessees stood restrained from independently disposing of mineral during the period the Court-monitored e-auction regime that was in force, and to ensure that the safeguards built into the reclamation and rehabilitation and mining plan and annual programme framework, and the requirement of valid environmental and forest clearances, are not diluted. On an independent issue of amalgamation of mining blocks of different categories and virgin forest land for auction, the Supreme Court has permitted Category A, B and C leases to be amalgamated with virgin forest land into compact blocks for auction, rejecting the objection that this would open forests to mining. It held that inclusion in a block confers no right to mine virgin forest without prior approval under the Forest (Conservation) Act, 1980, while clearances for the old lease areas may pass to auction winners under Section 8B of the Mines and Minerals (Development and Regulation) Act, 1957.
In Brihanmumbai Municipal Corporation v. Union of India & Ors., the Brihanmumbai Municipal Corporation (“BMC”) sought the permission of the Hon’ble Bombay High Court to cut 1237 mangroves on an area of 2.7515 hectares for the purpose of constructing a bridge connecting Madh island and Versova over the Malad creek. Permission of this Court was sought, inter alia, in terms of the judgment of a co-ordinate Bench of this High Court dated 17 September 2018 in Bombay Environmental Action Group v. The State of Maharashtra & Ors. The Bombay Environmental Action Group opposed the plea, arguing that the project’s environmental impact had not been carefully considered. The Court noted that coastal and forest clearances had been obtained, that only about 0.2 hectares would be permanently occupied by piers and pylons, and that the BMC had deposited INR 1.42 crore for compensatory planting of 39,000 mangroves over nine hectares. Treating the bridge as a genuine public purpose, the Court allowed the petition, while requiring in-situ restoration of the temporarily affected area and long-term monitoring.
In Food Safety and Standards Authority of India (FSSAI) v. G. Subramania Koushik & Ors., the Hon’ble High Court of Judicature at Madras, dismissed a review petition and two petitions seeking recall of its interim order dated 06 February 2026. By the 06 February 2026 order, the High Court had issued interim directions that (i) in respect of drinking water sold in plastic/PET bottles, the label shall also contain a declaration that the water may contain microplastics/nano plastics; and (ii) similarly, in respect of sugar and salt, the label shall contain a declaration that the sugar/salt may contain microplastics/nano plastics and the FSSAI was accordingly directed to issue appropriate notification to all the concerned manufacturers.
While rejecting these petitions, the High Court observed that in any event, irrespective of the source, if micro/nano plastics are found in the water inside the bottle, the consumer should be informed.
That’s all we have for you this month.
From the notification of the Greenhouse Gases Emission Intensity Target (Amendment) Rules, 2026, the revised GRAP schedule and the CAQM’s tightened oversight of C&D sites across the NCR, the CPCB’s guidelines on reject water from water purification systems and the MoEFCC’s OM implementing the Supreme Court’s judgment in Vanashakti, to the Supreme Court’s judgment setting aside the NGT’s decision in M/s. Punahchakran Private Limited v. Indotech Waste Solutions & Ors., its framework for the disposal of mineral from expired mining leases in Samaj Parivartana Samudaya and the Madras High Court’s refusal to recall its interim directions on microplastic labelling, September has been a busy month for India’s environmental compliance landscape. We hope that this ESG update will prove useful for you and that you will be watching out for this again next month.
Disclaimer
The content provided in this newsletter is intended for general awareness and should not be considered as legal advice. Readers are advised to consult with a qualified legal professional regarding any specific issues mentioned herein. If you have any questions about any of these developments or would like to see something different next month, reach out to us at knowledge@sarthaklaw.com.