SRINAGAR: The Jammu and Kashmir Government has directed the National Highways Authority of India (NHAI) to recover Rs 12.30 crore in environmental compensation imposed on construction company NKC Projects Pvt Ltd for violations linked to mining in Shaliganga Nallah.
The disclosure was made in a written reply to a starred question raised by Chadoora MLA Ali Mohammad Dar in the J&K Legislative Assembly.
According to the reply, the J&K Pollution Control Committee (JKPCC) imposed an environmental compensation of Rs 3.10 crore on NKC Projects in February 2026 for violating conditions of its environmental clearance while carrying out extraction from Shaliganga Nallah. The company was required to deposit the amount within three months.
The compensation has since risen to Rs 12.30 crore under the Polluter Pays Principle, according to the petitioner in the Shaliganga mining case, Dr Raja Muzaffar Bhat.
“The compensation was initially Rs 3.10 crore, but as per the formula applied by the J&K PCC, the amount doubles if it is not paid within three months and doubles again after another three months. It has now reached Rs 12.30 crore and remains unpaid,” Bhat said.
The Government said the company had not deposited the compensation and had instead approached the High Court through a writ petition challenging the JKPCC order. The matter, it said, is therefore sub judice.
Bhat, however, questioned the description of the matter as sub judice, saying that the High Court had not stayed the JKPCC’s environmental compensation order.
“How can the Government say the matter is sub judice when the High Court has not stayed the J&K Pollution Control Committee’s environmental compensation order?” Bhat said.
He said the compensation should be recovered and utilised for restoration of the Shaliganga, particularly the Panzan-Chadoora stretch, which he alleged had suffered extensive damage due to mining activities during 2021-22.
The compensation followed prolonged legal proceedings over mining in the Shaliganga. The National Green Tribunal had earlier prohibited the mining activity, while NKC Projects challenged the order before the Supreme Court. Following dismissal of the company’s appeal, the JKPCC proceeded with action against the alleged violations.
The Government’s latest response indicates that NHAI has been asked to recover the environmental compensation from the company’s pending bills. It remains unclear, however, whether NHAI has acted on the JKPCC’s communication and initiated recovery of the amount.
Bhat, who was the respondent in the Supreme Court proceedings concerning the Shaliganga mining case, said the recovery should be pursued without further delay and the funds directed towards ecological restoration of the affected watercourse.
