New Delhi, The National Green Tribunal (NGT) has dismissed an appeal by Bharat Petroleum Corporation Limited (BPCL) against the imposition of a Rs 1 crore fine for failing to install a vapour recovery system in its storage terminals.
A vapour recovery system (VRS) is a process which can arrest the release of harmful organic compounds from petroleum products.
The green body was hearing BPCL’s appeal against the imposition of environmental compensation (EC) by the Central Pollution Control Board (CPCB).
The central pollution watchdog had levied the fine in November 2024 after BPCL failed to set up VRS stage IA (for storage terminals) by the deadline of March, 2024.
In an order dated March 25, made public on Thursday, a bench of NGT Chairperson Justice Prakash Shrivastava and expert members A Senthil Vel and Afroz Ahmad said that BPCL had failed to comply with the CPCB’s directions to install VRS stage 1A in all its terminals within the prescribed timeline.
It noted that the Supreme Court in March 2023 had directed the CPCB to comply with the December 2021 NGT directions regarding the installation of the VRS mechanism.
“Hence, CPCB was bound by order of the Supreme Court and was required to ensure that VRS stage IA (storage terminal) is installed by March 2024, therefore, it is not within the powers of the CPCB to extend the timeline,” the bench said.
It noted that the board on July 23, 2025, sought compliance with its earlier order, further directing the closure of the operation of the non-complying terminal if the EC was not deposited within 15 days.
The tribunal said that BPCL merely challenged the CPCB’s July 2025 order, without assailing the original order imposing the fine.
Underlining that there was no justification to interfere with the July 2025 order, the tribunal said that CPCB’s original order had attained finality.
“It is also noted that the original order dated November 11, 2024, was passed by the CPCB after duly complying with the principles of natural justice and issuing the show-cause notice to the appellant (BPCL), to which the appellant had also filed the reply…,” the tribunal said.
It noted the submissions of the CPCB’s counsel, according to which, BPCL also failed to comply with the board’s directions to submit monthly progress reports about the installation of the VRS mechanism, and instead approached it for an extension after the time limit of March 2024 expired.
“For reasons so assigned and in view of the above analysis, we find no ground to interfere in the impugned order,” the tribunal said, dismissing the appeal.
It, however, allowed BPCL’s plea seeking a four-week extension to pay the fine.
