NGT stays utilisation of funds transferred to Punjab Govt by PPCB & Forest Department

August 18, 2025

Ludhiana: After Punjab government recently directed Punjab Pollution Control Board (PPCB) and several other departments to transfer funds worth thousand crores to the state treasurey, the National Green Tribunal (NGT) Principal Bench, on Monday, has put a stay on the utilisation of funds around Rs 356 crore which were supposed to be transferred from PPCB and the Department of Forest & Wildlife Conservation.

The matter pertains to the August 7, 2025, orders of the Punjab Chief Secretary directing the transfer of Rs 250 crore from PPCB and Rs 84 crore from the Forest Department into the state’s general account.

The stay came on a petition filed by the Public Action Committee (PAC). The Bench, while issuing notices to the respondents, fixed the next hearing for September 3, 2025.

PAC members Er. Kapil Arora and Kuldeep Singh Khaira, who appeared in person, said they approached the NGT immediately after learning from a news report that the funds were being diverted. They argued that such transfers violated directions of the Supreme Court, the Compensatory Afforestation Act, and PUNCAMPA guidelines.

PAC members Er. Jaskirat Singh and Dr. Amandeep Singh Bains said that PPCB is an autonomous body and funds available with it can only be used for betterment/Restitution of Environment. Further, the funds which are demanded from Forest Department belong to amount received on account of axing of trees as well as transfer of land to other departments and demand of such funds is not correct as fund generated for protecting ecology and providing regeneration should not be treated as a fund under article 266 and article 283 of the constitution.

PAC members claimed that today during the hearing of the matter, the NGT, while issuing orders of notices to the respondents, issued orders of stay on utilisation of such funds by the state government even if they have been transferred.