NGT Orders Sugar Mill to Pay ₹1.6 Crore for Environmental Damage and Crop Loss

Mumbai: The National Green Tribunal (NGT) has asked TwentyOne Sugar Factory Ltd owned by Congress chief Amit Deshmukh to pay more than ₹1.67 crore as environmental damages and compensation for crop loss. The tribunal, in an order issued on April 30, has directed the factory to deposit ₹1,13,40,000 in two months to the Maharashtra Pollution Control Board (MPCB), with money allocated for environmental restoration to be paid within six months.

Amit Deshmukh, chairman of TwentyOne Sugar Factory located in Nanded district, received the compensation orders after a common petition by 31 affected farmers. The farmers had accused the factory of breaching the conditions of environmental consent by releasing effluents and contaminants without treatment, which polluted surrounding agricultural land and water bodies and caused crop damage.

The order of the tribunal also asks the factory to pay ₹54,43,955 to the Nanded district collector for distribution among the 31 farmers who were harmed by the factory’s pollution. The farmers had asked for damages for their crop losses and for a suspension of the factory’s crushing operation until remedial actions were taken.

During the hearings, the tribunal established two joint committees to evaluate the level of environmental degradation and losses suffered by farmers. Their reports indicated several violations by the factory, such as restarting manufacturing operations without acquiring requisite permission from the MPCB, operating without fitting required effluent treatment units, and releasing effluent and emissions above allowable standards. The reports also indicated cases of accidental releases into the environment.

The combined committee estimated fines to the tune of ₹1,19,40,000, divided as: ₹11,70,000 for operating without permission, ₹46,50,000 for non-installation of treatment units, and extra fines for overdrafts of effluent standards and spurious discharges.

The factory’s defense argued that it had newly acquired the business from Venkateshwara Agro Sugar Products Pvt Ltd and the DVP Group (Dharashiv Sakhar Karkhana Unit III). The new management informed that it invested ₹7.92 crore for the upgradation of the environment management system, including practices for improved process control, effluent treatment, and management of emissions.

In spite of attempts to get a statement, HT could not contact Deshmukh for a response. The NGT order highlights the continued emphasis on environmental responsibility and accountability in the sugar sector, especially for plants headed by senior political leaders.