Supreme Court questions SHANTI Act compensation cap, seeks reply

The Supreme Court on Monday sought the Centre’s clarification on whether courts can grant fair and just compensation under the SHANTI Act 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 led by former bureaucrat EAS Sarma.

The court also questioned the appointment of members to the Atomic Energy Regulatory Board (AERB) under section 17(4) of the Act. Advocate Prashant Bhushan argued that the Atomic Energy Commission, which runs nuclear plants, cannot recommend members to the regulator, a conflict of interest. The bench noted that Parliament’s liability cap for operators, set at Rs 3,000 crore, does not preclude the court from ordering higher compensation.

The SHANTI Act, 2025, replaces the 2010 liability law and allows private firms to set up civil nuclear plants. Petitioners submitted it violates fundamental rights under Articles 14, 19 and 21. The court had earlier observed the issues touch on economic policy. The Centre must now respond on the appointments and compensation framework.