Welcome to the May 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
The Commission for Air Quality Management (“CAQM”) through an order dated 13 May 2026 has granted a one (01) month extension (until June 13, 2026) which permitted the use of alternate fuels like high speed diesel (“HSD”), biomass and Refuse-Derived Fuel (“RDF”) pellets in place of natural gas by industries, hotels, restaurants and other enterprises in the National Capital Region (including the NCT of Delhi). This relaxation was granted as an interim arrangement for one month by a previous order dated 13 March 2026 and has been extended in view of the prevailing extraordinary situation arising due to disruptions in global energy supply.
The CAQM through an order dated 15 May 2026 has directed that only 3-wheelers of L5 category (passenger and goods) shall be permitted to be registered in Delhi-NCR in a phased manner. The phase-in dates are: NCT of Delhi from 01 January 2027, High Vehicle Density NCR districts (Gurugram, Faridabad, Sonipat, Ghaziabad and Gautam Budh Nagar) from 01 January 2028, and all other NCR districts from 01 January 2029.
The Department of Environment, Government of the National Capital Territory of Delhi (“GNCTD”) through a notification dated 04 May 2026 has revised the Environment Compensation Charge (“ECC”) applicable to Delhi-bound commercial vehicles. The ECC for Category 2 (Light Duty Vehicles) and Category 3 (2 Axle Trucks) have been increased from INR 1,400 to INR 2,000, while for Category 4 (3 Axle Trucks) and Category 5 (4 Axle Trucks and above) the ECC have been increased from INR 2,600 to INR 4,000. The revised ECC rates shall take effect from 01 April 2026 and will thereafter be enhanced by 5% annually, rounded off to the nearest INR 10.
The Ministry of Environment, Forest and Climate Change (“MoEFCC”) has notified the draft amendments to the Environment Impact Assessment Notification, 2006, which seeks to rationalise the Environmental Clearance (“EC”) validity period for projects involving ports, and harbours, breakwaters, and dredging. The objections or suggestions to the said draft amendments may be received from any person within a period of sixty days and will be taken into consideration by the Central Government.
From the docket
In Neetu Solvents v. Vineet Nagar and Ors., the Hon’ble Supreme Court of India (“Supreme Court”) allowed a batch of civil appeals filed by formaldehyde manufacturing units operating in the States of Rajasthan and Haryana and set aside the National Green Tribunal’s (“NGT”) directions for closure of these units on account of the absence of prior EC. The appellant-units had been established and were operating pursuant to valid Consent to Establish (“CTE”) and Consent to Operate (“CTO”) granted by the respective State Pollution Control Boards (“SPCBs”), which were themselves unaware, at the time of granting such consents, that prior EC was required for formaldehyde manufacturing units under the Environment Impact Assessment Notification, 2006 (“EIA Notification”). Upon recognising the applicability of the EIA Notification, the SPCB’s directed the appellant-units to apply for EC within sixty days. The appellant-units complied, and their EC applications progressed , however, the process was stalled on account of litigation arising from the Vanashakti v. Union of India judgment dated 16 November 2025 and its subsequent review. The Supreme Court held that once CTE and CTO have been granted by the SPCB, the absence of a deemed approval mechanism under the Air (Prevention and Control of Pollution) Act, 1981 is not a relevant consideration for the purpose of impeding operation, and that ex-post facto EC, pursued at the instance of the SPCBs themselves to rectify an administrative oversight, constitutes the appropriate recourse in such circumstances. Accordingly, the Supreme Court directed that: (i) the appellant-units having CTE and CTO issued by the SPCB be permitted to continue operations; (ii) the pending EC applications of the appellant-units are to be decided within one month; (iii) Electricity for the appellant units, if disconnected, be restored subject to payment of arrears; (iv) the Union of India shall inform the appellant-units within three working days of any further steps required to complete the EC process.
In Bhopal Municipal Corporation v. Dr. Subhash C Pandey and Ors. , the Supreme Court has issued comprehensive directions for the implementation of the Solid Waste Management Rules, 2026 (“SWM Rules”), across urban and rural local bodies nationwide. The Supreme Court directed the MoEFCC to delegate powers under Section 5 of the Environment (Protection) Act, 1986, to District Collectors across the country for a period of one year, exclusively for supervising, administering, and implementing the SWM Rules within their respective jurisdictions. Each District Collector has been directed to constitute a ‘Special Cell’ to include Regional Officers of the respective SPCB’s with authority to direct the stoppage of water and electricity connections to bulk solid waste generators who disobey directions or disregard the Rules. The Secretary, MoEFCC, has been designated as the nodal secretary for consolidating and filing reports on behalf of all departments. States have also been directed to advise all Urban Local Bodies (“ULB”) to register on the Central Pollution Control Board’s (“CPCB”) EPR Portal in a time-bound manner.
In “In Re: Illegal Sand Mining in the National Chambal Sanctuary and Threat to Endangered Aquatic Wildlife” the Supreme Court, in a suo motu proceeding concerning illegal sand mining within the National Chambal Gharial Sanctuary. has issued inter alia the following directions: (i) The states of Rajasthan, Madhya Pradesh (“MP”) and Uttar Pradesh (“UP”) shall take immediate steps to fill vacant posts of forest Guards and other frontline enforcement personnel; (ii) Rajasthan, MP and UP shall take immediate steps to establish and operationalise surveillance and monitoring infrastructure in the affected regions, including CCTV surveillance systems, integrated monitoring mechanisms, control centres and allied technological infrastructure on a war footing within six months; (iii) The concerned authorities of the states of Rajasthan, UP and MP shall take strict action against vehicles and machinery involved in illegal mining and transportation activities within and around the affected regions of the National Chambal Gharial Sanctuary; (iv) The concerned States shall ensure initiation of appropriate criminal prosecution under the Motor Vehicles Act, 1988; the Bharatiya Nyaya Sanhita, 2023; the Mines and Minerals (Development and Regulation) Act, 1957; and other applicable statutory enactments, not only against the drivers of the vehicles, but also against the owners, financiers, operators, contractors and all other persons, facilitating the illegal mining network operating in the affected regions; (v) The National Highways Authority of India (“NHAI”) shall, in consultation with the Central Empowered Committee (“CEC”), install high-resolution CCTV cameras equipped with night vision capability on high-mast structures on the NH-44 bridge over the Chambal river near the Morena-Dholpur border; (vi) The NHAI, the concerned State Authorities and the District Administrations shall undertake immediate measures to prevent dumping of waste, debris and other materials into the Chambal River from bridges and other public infrastructure falling within or adjoining the National Chambal Gharial Sanctuary.
In Vijay Kumar v. Government of NCT of Delhi & Ors.; the Principal bench of the NGT disposed of an application alleging the illegal felling of trees over the green belt / forest area of Mangolpuri-Sultanpuri drain. While a Joint Committee was constituted by the NGT found no evidence of illegal felling of trees in 2025, it noted that a 2023 offence involving 40 illegally felled trees remained pending before the tree officer and that the compensatory plantation of 400 native trees directed under Section 31(g) of the Delhi Preservation of Trees Act, 1994 had not been shown to be carried out. Holding that the authorities had failed both to prevent the felling and to take action under the Act, in breach of their obligations under Article 48A of the Constitution, the NGT directed the Principal Chief Conservator of Forest (“HOFF”), NCT Delhi to compile and publish on the Forest and Wildlife Department’s website details of all tree-felling complaints over the last five years and to instruct all tree officers to dispose of such complaints promptly, and directed the Deputy Conservator of Forests (North Division) to ensure compliance with the compensatory plantation order.
In Odisha Jana Adhikar Parisada v. Union of India and Ors., the Eastern Zone Bench of the NGT has issued notice on an appeal challenging the EC granted in favour of the Narayanposhi Iron & Manganese Ore mine for enhancement in production capacity of iron ore from 6 to 10 metric tonnes per annum (“MTPA”) and overburden 4.216 MTPA with total excavation 14.02.2016 ΜΤΡΑ along with Mobile Crushing & Screening Plant, Central Processing Unit (“CPU”) 2000 TPH, Grinding & Beneficiation Plant 6.0MTPA for Mineral Processing & Slurry Pumping Station to transport Iron Ore Concentrate in the ML area 349.254Ha by M/s JSW Steel Ltd located at Sundargarh, Odisha.
That’s all we have for you this month.
From the directions issued by the CAQM and the Department of Environment, GNCTD regarding the phase-wise registration of electric L5 category 3-wheelers and the revision of ECC for Delhi bound commercial vehicles to comprehensive directions issued by the Supreme Court for implementation of the SWM Rules nationwide, May 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 these 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.