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Kerala Fights NGT Order on Ring-Fenced Waste Fund

The Kerala government has asked the National Green Tribunal (NGT) to exempt it from establishing a ring-fenced account for liquid waste management funds. The Principal Bench in New Delhi had ordered a centralized state-level account to hold environmental compensation for improper waste management. Kerala's request raises questions about compliance with environmental compensation norms and state fiscal flexibility.

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The Kerala government has formally requested the National Green Tribunal (NGT) to exempt it from creating a ring-fenced account for liquid waste management, according to a dispatch from The Hindu. The plea was made before the Principal Bench of the tribunal in New Delhi, which had earlier directed authorities to establish a single, centralized ring-fenced account at the state level to deposit funds earmarked as ‘environmental compensation’ for improper waste management.

The NGT’s directive, aimed at ensuring financial accountability and dedicated resources for environmental remediation, required states to maintain a separate account for penalties collected from polluters. Kerala’s request for exemption likely stems from concerns over administrative duplication or fiscal constraints, though specific reasons were not immediately detailed. The tribunal’s order is part of a broader push to enforce compliance with solid and liquid waste management rules across India.

The outcome of Kerala’s plea could set a precedent for other states seeking flexibility in managing environmental compensation funds. If granted, it may weaken the NGT’s uniform enforcement mechanism; if denied, it reinforces the tribunal’s authority. The case underscores the ongoing tension between state autonomy and centralized environmental oversight, with implications for waste management accountability nationwide. The NGT is expected to hear the matter in the coming weeks.

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