High Court orders Sesa, Bandekar and Chowgule to pay Rs. 2 Crores for damage to Sirigao fields

High Court orders Sesa, Bandekar and Chowgule to pay Rs. 2 Crores for damage to Sirigao fields

April 18, 2025 | Porvorim, Goa: In a major victory for environmental accountability and the villagers of Sirigao, the Bombay High Court at Porvorim has directed three mining companies—Sesa Mining Corporation, Rajaram Bandekar, and Chougule and Co.—to pay Rs. 2 crores to the District Mineral Fund (DMF). The funds are to compensate for the severe damage caused to agricultural lands in Sirigao village due to mining operations.

The verdict was delivered by Justices M.S. Karnik and Nivedita Mehta, who ruled firmly against the companies’ claim that they should not be liable for further payments, as they had already contributed to the DMF. The Court emphasized that environmental restoration is not the responsibility of the government or the taxpayer, but of the polluters themselves.

This judgment brings to a close Writ Petition 1/2008, which was originally sparked by a heartfelt letter from villagers of Sirigao. The letter highlighted the degradation of their agricultural lands, especially the Savat and Kharat Khazans, due to nearby mining activity.

Initially, Rs. 4 crores were estimated as the cost of repairing the damage by the Water Resources Department. Half of this amount was advanced from the DMF, with the understanding that the mining companies would reimburse it. While Rs. 2 crores were deposited earlier by the companies, they resisted paying the remaining amount—leading to this legal showdown.

The companies argued that since they contribute to the DMF, that fund should suffice for environmental remediation. But the Court called this a misuse of public resources, stating that such reasoning essentially allows polluters to escape liability using community welfare funds.

The judgment leaned heavily on the “polluter pays” principle, reinforcing that mining—an inherently hazardous activity—brings with it an obligation to repair the damage it causes. The Court noted that trying to shield liability by citing DMF contributions is against the very purpose of the fund, which is meant to support communities, not protect corporations.

Despite overwhelming evidence from NEERI and various government departments pointing to the damage, the companies maintained that villagers were exaggerating the situation for compensation. The State of Goa, through the Advocate General, countered this claim by producing a signed agreement in which the companies accepted responsibility for any damage caused by their mining—even beyond lease boundaries.

This ruling marks a critical moment for environmental justice in Goa and sets a strong precedent for holding polluters accountable.

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