New Delhi, Aug. 5 -- Pollution control boards are constitutionally empowered to impose and collect restitutionary or compensatory damages under the Water and Air Acts for actual or potential harm to the environment - not merely punitive penalties - the Supreme Court said in a landmark ruling that redefines the powers of environmental regulators. Delivering a judgment with far-reaching implications for environmental governance, a bench led by justice PS Narasimha declared that such powers are not only legally valid under Sections 33A of the Water Act and 31A of the Air Act, but are also a "necessary concomitant of the fundamental rights of citizens who suffer environmental wrongs and the duties of a statutory regulator." While setting aside a 2012 ruling of the Delhi high court that stripped pollution control boards of their authority to seek environmental damages, the court underscored that remediation and prevention, not just punishment, must lie at the heart of environmental regulation in India. "This order is a very good development. In fact, this was a concern with Air and Water acts because earlier they were excessively focused on punitive action which led to criminalisation. That was not a good tool to drive change. Civil penalties are very important tools to drive action but they were either imposed by NGT or by Supreme Court," said Anumita Roychowdhury, executive director, Centre for Science and Environment. The bench, also comprising justice Manoj Misra, drew a critical distinction between punitive penalties imposed after finding legal violations, and restitutionary damages, which may be imposed even ex-ante - before actual environmental harm occurs. In doing so, the court reinforced the preventive role of regulatory authorities, aligning Indian law with global environmental principles like "polluter pays" and precautionary action. "Environmental regulators can impose and collect restitutionary or compensatory damages in the form of fixed sums or require furnishing of bank guarantees as an ex-ante measure.These powers are incidental and ancillary to their statutory empowerment and are critical to preventing environmental degradation," it held. Importantly, the court clarified that such damages are not punitive fines and therefore do not require the procedural rigour mandated for criminal prosecution. Instead, they serve as compensatory tools aimed at restoring degraded ecosystems or mitigating potential harm. The judgment draws from the Indian constitutional framework, particularly Article 48A (State's duty to protect the environment) and Article 51A(g) (citizens' fundamental duty to safeguard natural resources). The bench reasoned that in the face of climate change and rising pollution, restoration of the environment is a core constitutional obligation and not just a statutory function. "Our constitutionalism bears the hallmark of an expansive interpretation of fundamental rights.But such creative expansion is only a job half done if the depth of the remedies, consequent upon infringement, remain shallow," it noted. The court called environmental protection "perhaps the most significant duty" imposed under Article 51A, and asserted that regulators must be allowed to act with foresight and autonomy. It emphasised the importance of institutional integrity, independence from government and industrial control and domain expertise within the pollution control boards. The judgment further consolidated the "polluter pays" principle into Indian jurisprudence, observing that it applies in three scenarios-when regulatory thresholds are breached causing environmental damage; when no thresholds are breached, yet damage occurs; and when there is a likelihood or risk of environmental damage, even if no harm has occurred yet. In all three instances, the court held, pollution control boards are duty-bound to act, not merely after the fact, but proactively. "Environmental regulators have a compelling duty to adopt and apply preventive measures irrespective of actual environmental damage. A restrictive interpretation of Sections 33A and 31A would encumber the boards' ability to discharge their duty." The court took note of existing guidelines issued by the Central Pollution Control Board in December 2022, pursuant to NGT directions, but insisted they must now be codified as binding rules to lend them legal legitimacy and enforceability....