COCA-COLA AND PEPSICO TO PAY COMPENSATION FOR ILLEGAL EXTRACTION OF GROUNDWATER

Recently, the National Green Tribunal (NGT) ordered two bottling businesses in the state of Uttar Pradesh responsible for Coca-Cola and PepsiCo products, to pay about ₹25 crores as environmental compensation for illegal extraction of groundwater. 

Both companies, Moon Beverages (Coca-Cola) and PepsiCo (Varun Beverages) were ordered to pay a total of ₹25 crores for illegally abstracting groundwater and causing environmental harm. It is alleged that both the companies broke the terms of their licences. 

The NGT also came down hard on the government regulator Central Ground Water Authority (CGWA), stating various flaws in its operations. “Again, acting in a most callous mode, CGWA has proceeded in its way, going to the extent of permitting massive exploitation of groundwater, wholly illegally, that too, in extremely stressed areas". 

The bench further held the Uttar Pradesh Ground Water Department (UPGWD) accountable as it attempted to grant authority to the companies for the extraction of groundwater in the absence of any jurisdiction.

The tribunal ruled that the companies were in violation of environmental legislation issued by the CGWA as they operated without the requisite no NOC to withdraw groundwater. In view of the same, the tribunal imposed a compensation of ₹1.85 crores on Moon Beverages Ltd, Greater Noida, ₹13.24 crore on Moon Beverage Ltd Sahibabad, and ₹9.71 crores on Varun Beverages Ltd Greater Noida unit.