Need to find balance between ‘visible’ national interest and ‘hypothetical’ loss in case of nuclear accident, says SC on SHANTI Act

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Justice Joymalya Bagchi connected  the Bench said the 2025 Act would person  to beryllium  examined by the court. “We person  to analyse   whether the provisions of the caller   Act endure  from the vice of unconstitutionality... Whether it is manifestly unjust oregon  arbitrary,” Justice Bagchi observed orally. File

Justice Joymalya Bagchi connected the Bench said the 2025 Act would person to beryllium examined by the court. “We person to analyse whether the provisions of the caller Act endure from the vice of unconstitutionality... Whether it is manifestly unjust oregon arbitrary,” Justice Bagchi observed orally. File | Photo Credit: The Hindu

Chief Justice of India (CJI) Surya Kant connected Friday (February 27, 2026) said a equilibrium has to beryllium struck betwixt “actual, visible, tangible nationalist interest” and “unfortunate, hypothetical loss” portion proceeding a petition highlighting that India’s caller instrumentality connected atomic accidents has placed “abysmally low” liability connected backstage operators and adjacent exempted immoderate accountability connected the portion of the suppliers.

Chief Justice Kant, heading a Bench, pointed retired that bringing atomic powerfulness to India was a necessity to conscionable the nation’s vigor requirements.

“Today, if we bash not bring atomic power, you volition not beryllium capable to conscionable your requirements. You bash not privation to let the ember industry, you cannot compromise connected forestry, you bash not person gas... So, wherever are we going?” the Chief Justice asked the petitioner counsel, advocates Prashant Bhushan and Neha Rathi.

The petition filed by erstwhile IAS serviceman E.A.S. Sarma has challenged the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act of 2025, chiefly connected the crushed that it allowed backstage assemblage and overseas companies to run atomic powerfulness plants successful India and has further capped the liability of these operators astatine an “absurdly debased level and exempted the supplier from immoderate liability”.

Mr. Bhushan pointed retired that the Act capped the government’s residual liability astatine “300 cardinal Special Drawing Rights — a fig that is abysmally debased and efficaciously ensures that victims of death, injury, oregon spot harm cannot retrieve adjacent a tiny fraction of their existent losses”.

The elder lawyer pointed retired that the Chernobyl atomic catastrophe nonaccomplishment was estimated betwixt $235 cardinal to $700 billion, the Fukushima Daiichi atomic powerfulness works mishap that occurred successful Japan successful 2011 estimated the clean-up costs to scope astir $400-445 billion.

“In opposition to this, SHANTI Act, 2025 caps the liability of the largest works relation successful India astatine a specified ₹3,000 crore (i.e., astir $331 cardinal amounting to little than 0.1% of the outgo of harm caused by the accidents astatine Chernobyl oregon Fukushima). The exemption of suppliers from immoderate liability successful the SHANTI Act is bound to promote manufacturers and suppliers to chopped corners successful information truthful arsenic to maximise their profits,” Mr. Bhushan submitted.

Justice Joymalya Bagchi connected the Bench said the 2025 Act would person to beryllium examined by the court. “We person to analyse whether the provisions of the caller Act endure from the vice of unconstitutionality... Whether it is manifestly unjust oregon arbitrary,” Justice Bagchi observed orally.

He said it would person to beryllium examined whether an precocious headdress connected atomic harm indemnity would beryllium violative of Article 21 of the Constitution.

“An relation who does a hazardous enactment has to screen the full liability successful lawsuit of an accident,” Mr. Bhushan submitted.

Published - February 27, 2026 10:34 p.m. IST

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