Tamil Nadu

Oil spill: NGT allows bank guarantee to be encashed to pay compensation

A Special Bench of the National Green Tribunal has directed that the bank guarantee furnished by the shipping companies in the case related to the oil spill arising out of collision of two cargo ships at the Kamarajar Port, Chennai, in 2017 may be encashed and the remaining undisbursed compensation amount may be paid to the affected persons.

The Bench said remediation measures that remain to be taken in terms of the status report may be completed expeditiously utilising the amount allocated for the purpose “in the interest of flora and fauna”.

The Bench noted that as against the total compensation of ₹240 crore, ₹141 crore had been released as per the agreement between the fishing companies and the State government on behalf of the fishermen that was approved by the High Court. The unpaid amount of compensation available to the extent of verified claim may be paid. It directed a joint committee headed by the Principal Secretary, Fisheries department, with the Director of Fisheries and the District Magistrate, Chengalpattu, as members to oversee the process.

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Printable version | Sep 12, 2022 9:16:59 pm | https://www.thehindu.com/news/national/tamil-nadu/oil-spill-ngt-allows-bank-guarantee-to-be-encashed-to-pay-compensation/article65617221.ece