The Government provided the information in response to a starred question by Chadoora MLA Ali Mohammad Dar. The J&K Pollution Control Committee (JKPCC) had initially imposed compensation of Rs. 31 mn on NKC Projects in February 2026 for violating conditions attached to its environmental clearance during extraction work in the waterway.
The company has not deposited the amount and has filed a writ petition in the High Court challenging the JKPCC order. The Government described the matter as sub judice, while the compensation increased to Rs. 123 mn under the Polluter Pays Principle because of the continued non-payment.
Under the applicable formula, the compensation doubles if it is not paid within the stipulated three months and doubles again for every subsequent three-month period. The Government has consequently directed NHAI to recover the revised amount from bills pending for work carried out by the company.
The original action followed the Supreme Court’s dismissal of an appeal by NKC Projects against a National Green Tribunal order that banned mining in Shaliganga in 2022. In its judgment dated August 22, 2026, the Supreme Court directed the JKPCC to proceed against those responsible.
Following the court proceedings, petitioner Dr Raja Muzaffar Bhat approached the JKPCC seeking action against the company. Bhat said the compensation should be recovered and used to restore the Shaliganga at Panzan in Chadoora, which he alleged was severely damaged by the company’s activities during 2021-22. He also questioned whether NHAI had acted on the JKPCC communication requesting recovery from the company’s pending bills.