SC questions nuclear accident compensation cap under SHANTI Act

The Supreme Court on Monday sought clarification from the Centre on whether the SHANTI Act bars constitutional courts from awarding fair compensation in case of a nuclear accident. A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana issued a limited notice while hearing a plea by former bureaucrat EAS Sarma and others.

Petitioner's advocate Prashant Bhushan argued that the Act caps operator liability at Rs 4,000 crore, which is paltry compared to potential damages of tens of thousands of crores. Times Now reports the cap as Rs 3,000 crore, while Times of India puts it at Rs 4,000 crore. Bhushan said this could make foreign suppliers lax on safety. The bench also asked the Centre to clarify whether appointing Atomic Energy Regulatory Body members on the Atomic Energy Commission's recommendation creates a conflict of interest.

The SHANTI Act replaced the 2010 nuclear liability law and allows private firms to set up nuclear plants. The court observed that Parliament capping operator liability does not prevent courts from granting just compensation. The next hearing is awaited.