Delhi Sewerage Charges Implementation Case

In a significant legal development, the Supreme Court of India recently delivered a judgment on the implementation of sewerage charges in Delhi. This case, involving various ministries and authorities in the NCT of Delhi, addresses key issues related to environment compensation fees and sewerage infrastructure. The judgment aims to ensure fair and effective collection of fees from households generating sewage. Stay informed on this vital ruling impacting the residents of Delhi.


  • The cost of the project is 3659 crores which includes establishing new STP’s, interceptors, and sewer lines in the first phase.
  • Finances for the project will be obtained from the Ministry of Water Resources under the National Mission for Clean Ganga.
  • Chief Secretary, Delhi Jal Board, and Delhi Municipal Corporations were directed to levy sewerage charges within two months.
  • DERC mentioned that revenue from electricity sales cannot be used for environment compensation fees.
  • DDA has unauthorized colonies contributing heavily to sewage generation; DDA was directed to release funds.
  • Various ministries and authorities in Delhi are to share the liability for the project’s cost based on the first phase.
  • Environment compensation fee costs cannot be passed on to consumers as a tariff hike.
  • O.A. No.300 of 2013 filed regarding encroachments on drains and river pollution issues.
  • Various expert committees were directed to ensure all households generating sewage pay environmental compensation.
  • Issues regarding drains, pollution in river Yamuna, and beautification of river banks were divided and addressed.
  • NCT of Delhi, Delhi Jal Board, Municipal Corporations, and other authorities are required to collect environmental compensation from households on the Polluters Pay Principle.
  • Encroachment on drains compromising drainage efficiency and biodiversity was a key concern.
  • The Appellant, an electricity distribution licensee, filed an appeal against the order dated 08.05.2015.
  • The Tribunal accepted the reports of the Expert Committees after scrutiny.
  • The Tribunal issued directions for the phased implementation of the judgment dated 13.01.2015.
  • Monthly compensation payable by households in NCT Delhi is directly proportionate to property tax or water bill, whichever is higher.
  • Households not paying water bill or property tax in unauthorized colonies are required to pay Rs. 100 or Rs. 500 per month.
  • The Court stayed the operation of the judgment dated 13.01.2015 on 13.10.2015, which was modified on 18.01.2016.
  • The determination of the compensation amount is based on the construction existing on the plot.
  • The progress in the execution of the directions issued by the Tribunal is periodically reviewed.

Also Read: Case of Technical Equipment Officer Appointment Criteria Dispute


  • The DERC asserted that imposing additional tariff burden on consumers for environment compensation fee collection goes against the purpose of Delhi Electricity Reforms Act, 2000 and Electricity Act, 2003.
  • The Tribunal’s direction on 11.09.2019 for introducing sewerage charges by the Government of NCT of Delhi should be implemented.
  • The Tribunal’s direction on 08.05.2015 stands modified and does not need to be implemented.
  • The final judgment in O.A. No.6 of 2012 and O.A. No.300 of 2013 was on 13.01.2015, with subsequent directions on environment fee in 2015 and sewerage charges in 2019.
  • Due to interim orders, the direction from 2019 could not be implemented earlier, and it is now to be implemented within two months from the latest order.

Also Read: Supreme Court Judgement on Transfer of Mining Environmental Clearances


Case Number: C.A. No.-009276-009290 / 2015

Click here to read/download original judgement

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