By Syed Sammar Mehdi
Srinagar- The Jammu and Kashmir government said on Friday that it has imposed an environmental penalty of about Rs 3.10 crore on a private construction company for damaging the Shaliganga stream in Budgam, following directions from the Supreme Court.
Officials told the Legislative Assembly that the penalty was levied on NKC Projects Pvt Ltd after it was found to have violated conditions tied to its environmental clearance for riverbed mining.
The company received approval in 2021 to carry out mining in the stream. Authorities later found that it used heavy machinery, which went against both standard and specific conditions set by the J&K State Environmental Impact Assessment Authority.
The clearance itself became the subject of a legal challenge filed before the National Green Tribunal by environmental activist Dr. Raja Muzaffar Bhat. After a series of hearings, the tribunal imposed a blanket ban on mining in the area in 2022.
The company appealed that order in the Supreme Court. The court upheld the tribunal’s decision in a judgment dated August 22, 2025, and criticized the mining department and the environmental authority for granting clearance without conducting a replenishment study, a key requirement to assess sustainability. The court also directed the J&K Pollution Control Committee to take action against those responsible for the damage.
Ali Mohammad Dar, a National Conference lawmaker who represents Chadoora, asked the government to provide details of the compensation imposed in line with the court’s order. The mining minister responded that the total environmental compensation assessed against the company stands at about Rs 3.10 crore.
Government records show that the penalty covers damage at three locations along the stream. Authorities assessed about Rs 87.47 lakh for damage at Dreygam downstream. Another Rs 69.99 lakh was imposed for the Banderpora area. The largest share, about Rs 1.57 crore, relates to damage between the Panzan bridge and Lalgam in Chadoora.
The case stems from a civil appeal, State of J&K and others vs. Raja Muzaffar Bhat, in which the Supreme Court directed authorities to act against violations that harmed the stream.
Dr. Bhat said the action came much later than it should have. “A lot of delay has been done in imposing environmental compensation on NKC Projects Pvt Ltd. The J&K PCC should have done this soon after the NGT order of 2022,” he said.
He also alleged that the company continued similar activities elsewhere. “The company after plundering Shaliganga looted Sukhnag stream for three years and the district administration Budgam allowed that loot,” he said. Mining in Sukhnag was later banned by the tribunal in January 2025, and an independent committee is examining that case, he added.
Dr. Bhat said the amount imposed does not reflect the scale of damage. “Rs 3.10 crore environmental compensation is not enough as damage caused to Shaliganga is massive,” he said, adding that he would review the official order and consult legal counsel in the Supreme Court and the tribunal before deciding his next steps.
