Learn how to identify and report corporate environmental fraud. From factories hiding toxic waste to companies faking pollution control systems, understand how industries deceive regulators and communities. If you are an aspiring environmental lawyer, compliance lawyer, or environmentalist, this guide will be of great help.
Table of Contents
Introduction
My cousin Anu called me last weekend and inquired, “ Do you know that pharmaceutical factory near your holiday home in Lonavala? The one with all those green banners about ‘Clean Manufacturing’ and ‘Nil Pollution’?”
I could hear some tension in her voice. She was an environmental lawyer for the past eight years, and recently quit her corporate job to become a full-time environmental consultant to the industries after seeing too many cases that made her lose faith in the system.
“Yeah, the Greentech Pharma plant. What about it? They seem pretty responsible, always talking about their green initiatives in and around the village and bagging environmental awards.”
“That factory has been dumping untreated hazardous chemical waste into the groundwater for three years. The ‘pollution control system’ they show in their annual reports? It has been broken since 2021. They just turn it on when government inspectors visit.”
I was petrified. I live just two kilometres from that factory. My house gets water from the same aquifer.
“But wait, how is that even possible? Don’t they have to follow environmental rules? What about all those certificates on their website?”
“Those certificates are either fake or expired. The pollution control equipment they claim to have installed? It exists on paper but not in reality. This is called environmental fraud, and it is happening in factories across India every single day.”
I was shocked. “But why would a successful company risk breaking environmental laws? Don’t they make enough money already?”
“Because following environmental laws is an expensive affair. Installing proper pollution control systems, treating waste correctly, and monitoring emissions all cost money. It’s much cheaper to fake compliance and hope nobody notices. Every year, companies across India save crores by lying about their environmental compliances.”
This conversation gave me a fresh perspective on things. I realised that as a regular citizen, I had no idea how to tell if the industries around my home were actually building a safe space or were just pretending to.
The scary part? When industries lie about their pollution control measures, humans get sick. Children develop respiratory problems from hidden air pollution. Farmers lose crops to contaminated water. Entire ecosystems get destroyed while companies claim to be “green.”
That is exactly why Anu decided to help me write this guide. No fancy legal terms. Just some practical insights and advice to spot when companies are lying about their environmental compliance and what actions can be taken against it.
Let’s get started.
What is environmental fraud?
If you actively participate in your kitchen chores, you know that there are certain rules to keep your family members safe and healthy. Just as you must wash your hands, store food properly, and clean your equipment to maintain hygiene and health, industries are also expected to treat their waste, limit emissions, and follow safety protocols to keep the environment safe. Breaking either set of rules puts everyone’s health at risk.
Industrial environmental fraud is when companies violate these environmental regulations and then lie about it to avoid detection.
Just like other fraudsters, industries that commit environmental fraud have clear motives. Some want to save money by avoiding expensive pollution control equipment. Others want to keep operating without proper environmental clearances. Some companies commit fraud to meet impossible production targets set by their parent companies abroad.
Statutory framework: at a glance
Here is what protects you under Indian law:
A. The Constitution of India
- Article 21: Right to life includes the right to a pollution-free environment
- Article 48A: The State must protect and improve the environment
- Article 51A(g): Fundamental duty to protect the environment applies to industries too
B. Primary environmental laws
- Powers: The government can close down polluting industries immediately
- Key provision: “Polluter pays” principle: companies must pay for environmental damage.
- Covers: Industrial wastewater discharge, groundwater contamination
- Mandatory: All industries must obtain consent to discharge effluents
- Powers: Pollution Control Boards can disconnect the water/electricity supply to violating industries
- Covers: Industrial air emissions, toxic gas releases
- Mandatory: Industries must install air pollution control equipment
- Special provision: Emergency powers to close industries causing air pollution emergencies
C. Specialised laws
- Covers: Industrial toxic waste disposal, transportation, treatment
- Mandatory: Industries must obtain authorisation for hazardous waste handling
- Liability: Unlimited liability for environmental damage
- Covers: All major industrial projects must get environmental clearance
- Process: Mandatory public consultation before granting clearances
- Violations: Operating without clearance can lead to permanent closure
- Covers: Environmental compensation, restoration orders
- Powers: Can order companies to pay for environmental damages
- Fast-track: Environmental cases decided within 6 months
- Expertise: Technical and legal members ensure proper assessment
- Criminal provisions
- Bhartiya Nyaya Sanhita, 2023
- Section 270: Public nuisance (includes environmental pollution)
- Section 286: Negligent conduct concerning poisonous substances
- Corporate social responsibility: Large companies must spend on environmental protection
- Director liability: Company directors are personally liable for environmental violations
What does environmental fraud entail?
Let me walk you through the most common ways industries lie about their environmental compliance:
1. Fake pollution control systems
What it is: Industries claiming to have installed pollution control equipment that either does not exist, does not work, or is deliberately shut down most of the time.
But does a pollution control system do? The purpose of this system is to capture and neutralise harmful substances before they are released into the environment.
How it works: Companies show impressive pollution control systems to government inspectors and in their reports, but these systems are either fake installations or are only operated during inspections. The rest of the time, they discharge untreated pollution directly into the air and water.
How to spot it: Look for visible emissions from factory chimneys during off-hours, unusual smells, or discoloured water coming from industrial areas. Real pollution control systems run 24/7, not just during business hours.
Real example
Recently, the National Green Tribunal (NGT) raised concern over the shocking fact that 83% of industrial units were discharging effluents without proper treatment. The NGT called for strict enforcement and immediate corrective action. It also criticised the failure of pollution control boards in monitoring compliance.
2. Fraudulent environmental clearances
What it is: Industries operating with forged environmental permits or continuing operations after their clearances have expired or been cancelled.
How it works: Companies forge Environmental Impact Assessment reports, bribe officials for clearances, or simply operate without any clearances while claiming full compliance. Some continue operating even after their permits are legally cancelled.
How to spot it: All major industrial projects must have valid Environmental Clearance certificates displayed publicly. You can verify these on the Ministry of Environment website using the project’s clearance number.
Real example
An NGT panel report found that Oil India Limited operated a well in Baghjan without mandatory environmental clearances, leading to a deadly fire in 2020 that burned for nearly six months. The report, highlighted in 2024, noted violations of the Environmental Impact Assessment (EIA) Notification, 2006.
3. Hidden toxic waste dumping
What it is: Industries illegally disposing of hazardous waste while reporting proper disposal in their compliance documents.
How it works: Factories dump toxic chemicals in rivers at night, bury hazardous waste in agricultural land, or ship waste to illegal disposal sites, then falsify documentation to show they disposed of waste through authorised channels.
What you can do: If you notice unusual smells, discoloured water, dead animals, or mysterious illness in plants/animals near industrial areas, document everything immediately and report to the pollution control authorities.
Real examples:
In Bichhri village of Rajasthan, Hindustan Agro Chemicals Limited dumped toxic effluents from acid production, polluting groundwater and soil across 350 hectares. It was found that the water in 60 wells was unfit for consumption, and the land was infertile.
4. Emissions monitoring fraud
What it is: Companies manipulating air and water pollution monitoring systems to show false readings while actually exceeding pollution limits.
How it works: Industries install monitoring equipment that can be remotely controlled to show fake readings, or they sample from clean areas instead of actual discharge points. Some companies simply submit fabricated monitoring reports without doing any real testing.
Prevention tip: Real-time pollution monitoring data should be publicly available on State Pollution Control Board websites. If a factory claims to have online monitoring but you cannot find their data online, then that is a red flag.
Real example
In 2020, 37 Indian companies, including Dabur and Godrej, were accused by global investors of hiding emissions data, lacking standardised environmental reporting. This concealed high carbon dioxide equivalent emissions (4,800 megatonnes annually), violating transparency norms.
5. Water pollution cover-ups
What it is: Industries discharging toxic chemicals into water bodies while claiming their wastewater meets all quality standards.
How it works: Companies either don’t treat their wastewater at all, or their treatment systems are inadequate for the type of chemicals they use. They then submit fake water quality reports or discharge waste during times when monitoring is less likely.
How to check: Look for changes in water colour, smell, or aquatic life in rivers, lakes, or groundwater near industrial areas. Dead fish, unusual foam, or water that’s a different colour than normal are clear warning signs.
Real example
As per the report submitted before the NGT in 2017, in Kerala (near Periyar River), around 400 industries in the Eloor-Edayar region allegedly dumped untreated toxic waste.
6. Air pollution concealment
What it is: Industries releasing toxic gases and particulates into the air while claiming to meet air quality standards.
How it works: Companies operate without proper air pollution control equipment, or shut down their pollution control systems during high-production periods. They often release the most toxic emissions at night or during weekends when monitoring is reduced.
How to spot it: Visible smoke or unusual colours from factory chimneys, persistent chemical smells in residential areas near industries, or sudden increases in respiratory problems in the community.
Real example
In 2016, tanneries near Kanpur were found concealing air pollution by releasing untreated smoke and toxic gases, contributing to pollution in the Ganga. The Hon’ble Supreme Court in the very famous M.C. Mehta vs. Union of India (1987 AIR 1086). ordered closures, but some continued operations clandestinely.
What impact does an environmental fraud have?
Let me explain this with the help of a case study that Anu had a chance to work on.
Then, a thriving river community…
The Mandovi River in Goa was crystal clear, teeming with fish and dolphins. Suresh Naik, like 200 other fishing families, made a good living from the abundant waters. His children swam safely in the river. Tourists came for boat rides and fresh seafood. The ecosystem had thrived for generations.
A promise to stay green…
In 2018, three pharmaceutical companies set up along the river, promising “world-class environmental management” and “zero discharge” systems. They showcased impressive wastewater treatment plants and won environmental awards. The community was excited about 500 new jobs and development.
Or a systematic fraud
Behind the green banners, all three companies were:
- Running fake treatment plants that never actually worked
- Dumping untreated chemical waste directly into the river at night
- Submitting completely fabricated pollution monitoring reports
- Coordinating toxic discharge during monsoons to avoid detection
Impact? You may have guessed it
In about 5 years:
- Ecological collapse: The fish population dropped by 90%. The water turned brown and smelled of effluents. Dolphins could not survive and disappeared forever.
- Economic ruin: Like Suresh, all other fishermen’s daily catch dropped from 20kg to 2kg. The fish market emptied. 200 families lost their livelihoods.
- Tourism: Naturally, as the ecosystem died, so did tourism.
- Health crisis: Villagers suffered from waterborne and airborne diseases. Children couldn’t swim due to contaminated water.
The bitter end
When the fraud was exposed in 2021, the companies paid a fine of Rs. 15 lakh and moved elsewhere. They continue operating profitably in other states.
Suresh now works as a construction worker. His fishing boat rots on the contaminated shore. His children moved to cities. Environmental experts say the river may take 20 years to recover, if at all it ever does.
The three companies saved millions by faking compliance while an entire way of life died forever.
This is why industrial environmental fraud matters; once a paradise is lost, it rarely (never) returns.
Whom do I approach with a complaint against environmental fraud?
- National Green Tribunal (NGT): You can approach the NGT under sections 14 and 15 of the National Green Tribunal Act 2010, in case of environmental damage compensation, project violations, and major pollution cases, including forest conservation issues, environmental clearance disputes, biodiversity protection matters, and coastal zone violations.
- Central Pollution Control Board (CPCB): This authority handles cases relating to:
- Industrial emissions exceeding limits
- Untreated effluent discharge
- Hazardous waste violations
- Air quality standard breaches
- State Pollution Control Boards (SPCBs): This authority deals with cases such as:
- Local factory pollution
- Municipal waste management
- Regional air/water quality issues
- Small-scale violations
- Police complaint
- Forest department: You can approach/loop in the forest department in case of:
- Illegal tree cutting or forest clearing
- Encroachment on forest land
- Wildlife habitat destruction
- Violations of forest clearances
What are the steps to file a complaint?
Here is a step-by-step process to file a complaint against environmental fraud:
Before NGT
Step 1: Prepare your case
Gather evidence:
- Detailed description of environmental violation
- Photos and videos of damage
- Location details with GPS coordinates
- Dates and times of violations
- Names of violating parties/companies
- Impact on community health or environment
Required documents:
- Previous complaints filed (if any)
- Environmental clearance documents (if applicable)
- Scientific reports or expert opinions
- Witness statements and contact details
- Government approvals that were violated
Step 2: Online registration
- Visit greentribunal.gov.in
- Click on the “e-filing” icon
- Register as an individual, advocate, or organisation representative
- Fill required details and receive login credentials via email
- Accept the terms and conditions
Step 3: File the petition
- Log in to the application portal
- Click on “petition filing”
- Select appropriate case type:
- Form I: Complaint against environmental violation
- Form II: Appeal against government order
- Fill petition details completely
- Upload all supporting documents
- Save and proceed to payment
Step 4: Payment and submission
Fees:
- Non-compensation cases: Rs. 1,000
- Compensation cases: 1% of compensation claimed (minimum Rs.1,000)
Payment methods: Online payment gateway. Final submission: Review and submit the petition. Acknowledgement: Receive case number and filing receipt.
Step 5: Follow-up
- Track case status online
- Receive hearing notifications via email/SMS
- Attend hearings if required
- Provide additional evidence when requested
- Await the NGT decision (mandated within 6 months
Here is how your petition can look.
Before CPCB/SPCB
Online complaints
- Visit cpcb.nic.in/query-form1.php (for CPCB)
- Or visit your state pollution control board website
- Fill online complaint form with:
- Type of pollution (air/water/noise/waste)
- Location and time details
- Description of violation
- Polluting party information
- Upload supporting evidence
- Submit and receive a complaint reference number
Offline complaints
- Visit the nearest CPCB/SPCB office
- Submit a written complaint with evidence
- Request inspection of the polluting facility
- Follow up on investigation progress
What happens after filing a complaint?
NGT process
- Case registration: NGT registers the case and issues a notice to the respondents
- Initial hearing: Parties present their arguments
- Investigation: NGT may order a site inspection or an expert committee report
- Evidence submission: All parties submit evidence and arguments
- Final hearing: NGT hears final arguments
- Judgment: NGT passes order within 6 months (mandated timeline)
- Enforcement: Orders are binding and enforceable as civil court decrees
CPCB/SPCB process
- Complaint registration: The Board registers the complaint and assigns a reference number
- Initial assessment: Board reviews complaint for jurisdiction and merit
- Site inspection: The Board inspects the alleged violation site
- Investigation report: Board prepares investigation findings
- Notice to violator: Board issues show cause notice
- Response period: Violator given time to respond and comply
- Final Action: Board takes enforcement action (fines, closure, etc.)
What are the powers of the authorities?
- Pollution Control Boards can:
- Conduct surprise inspections without notice
- Collect samples for testing
- Issue immediate closure orders
- Disconnect utilities (water, electricity) to violating industries
- Prosecute company officials criminally
- Courts can order:
- Immediate closure of polluting industries
- Payment of environmental compensation
- Personal prosecution of company directors and officials
- Environmental restoration at company expense
- Appointment of independent monitors
- Citizens can:
- File complaints without being directly affected
- Seek compensation for environmental damage
- Demand criminal prosecution of companies
- Get court orders for environmental monitoring
- Access all environmental information under the RTI Act.
Final thoughts
Living near industrial areas in modern India means you are surrounded by incredible economic opportunities, but also by companies that might be cutting corners on environmental compliance to maximise profits. The good news is that India has some of the world’s strongest environmental laws however, the challenge is making sure they are enforced.
Industrial environmental fraud thrives when communities don’t know their rights or don’t understand how to spot violations. But once you know what to look for and how to take action, you become a powerful force for environmental protection in your area.
Remember these key points:
- Industries are legally required to be transparent about their environmental compliance: if they are being secretive, that’s a red flag.
- You don’t need to be an environmental expert to spot obvious violations like unusual smells, discoloured water, or visible emissions.
- Your complaints carry legal weight: pollution control authorities must investigate every complaint you file.
- Document everything: photos, dates, times, and health impacts are crucial evidence.
- Don’t fight alone, build community coalitions and work with environmental groups for maximum impact.
The industrial fraudsters are counting on your ignorance and inaction. They hope you will just accept pollution as “the price of development” and not question their environmental claims. But you now know better.
When industries follow proper environmental standards, everyone wins – companies make sustainable profits, communities stay healthy, and our environment is protected for future generations. It’s only when companies cheat that we all lose.
Your vigilance and action can force industries to stop lying about their environmental performance and start actually protecting the communities they operate in.
For immediate industrial environmental violations, call your State Pollution Control Board helpline. For urgent health emergencies due to industrial pollution, call the National Disaster Response Force at 011-26701700.
FAQs
- Can I file complaints against industries even if I am not directly affected?
Yes, absolutely. Under Indian environmental law, any citizen can file complaints about industrial pollution regardless of whether they’re personally affected. Environmental protection is considered a public right, and you’re legally entitled to take action against any industrial environmental fraud you become aware of.
- What should I do if I suspect the local pollution control board is corrupt and not taking action?
- File complaints simultaneously with the Central Pollution Control Board
- Approach the National Green Tribunal directly
- File RTI applications to get records of how your complaint was handled
- Contact your MP/MLA to intervene with higher authorities
- Reach out to environmental NGOs and the media for pressure
- Consider filing a complaint with the Central Vigilance Commission if you have evidence of corruption
- How can I tell if a factory’s pollution control equipment is real or fake?
Real pollution control systems operate 24/7, and you can verify this by:
- Checking for real-time pollution monitoring data on government websites
- Looking for consistent operation of equipment (not just during business hours)
- Verifying with independent environmental audits, if available
- Asking to see maintenance records and utility bills for the pollution control systems
- Checking if the company reports consistent pollution control costs in their financial statements
- Can industries be held criminally liable for environmental fraud?
Yes, both the company and individual officials can face criminal prosecution under:
- Environment Protection Act (up to 5 years imprisonment)
- Water and Air Pollution Acts (up to 6 years imprisonment)
- Bhartiya Nyaya Sanhita 2023 provisions for public nuisance and negligence
- Companies Act provisions for corporate fraud
- Company directors can be personally prosecuted and jailed for environmental crimes
- My community has been affected by industrial pollution for years. Can we get compensation?
Yes, you can seek compensation through:
- National Green Tribunal (can order companies to pay for environmental restoration and health damages)
- Civil courts (for personal injury and property damage)
- Environmental liability insurance (if the company has it)
- Government compensation schemes for pollution-affected communities
- Class action lawsuits with other affected community members
- How long does it typically take to get action against industrial environmental fraud?
Timeline varies by authority and severity:
- Pollution Control Boards: Must respond within 7 days, investigate within 30 days
- National Green Tribunal: Decides cases within 6 months
- Criminal prosecution: Can take 2-5 years, depending on court backlogs
- Emergencies: Authorities can order the immediate closure of violating industries
- The key is sustained follow-up and using multiple channels simultaneously for faster results.
- How do I contact the National Green Tribunal?
You can reach NGT through:
- Website: greentribunal.gov.in
- E-filing Support: [email protected]
- Phone: 011-26181506
- Address: Van Vigyan Bhawan, Sector-V, R K Puram, New Delhi-110022
- Where can I file a complaint with the Central Pollution Control Board?
Contact CPCB via:
- Website: cpcb.nic.in
- Online complaint portal: cpcb.nic.in/query-form1.php
- Email: [email protected]
- Phone: 011-24303414
- What should I do in case of an environmental emergency?
For immediate environmental threats:
- Police Emergency: Call 100
- Fire Services: Call 101
- Industrial Accidents: Contact your local district collector
- Health Emergencies: Call the nearest hospital emergency number
- How long do I have to file a complaint with NGT?
You must file your NGT application within 5 years of when the environmental violation first occurred. This is a strict deadline that cannot be extended.
- Is there a deadline for filing CPCB complaints?
There’s no specific deadline for CPCB/SPCB complaints, but you should file as soon as possible after discovering the violation to ensure effective action.
- How long does NGT take to resolve cases?
As per the NGT Act, it is mandated to dispose of cases within 6 months of filing. However, practically, it takes longer.
- What is the timeframe to file an appeal to the Supreme Court from the decision of the NGT?
You can appeal an NGT order to the Supreme Court within 90 days of receiving the NGT decision.
- Do I need a lawyer to file an environmental complaint?
No, you can file complaints directly as an individual. However, for complex NGT cases, legal assistance is recommended.
- What is the difference between NGT and CPCB complaints?
- NGT: For seeking compensation, major environmental disputes, and challenging government decisions.
- CPCB: For reporting pollution violations, industrial non-compliance, and regulatory enforcement.
- Can I file a complaint anonymously?
- NGT: No, you must provide your identity and contact details
- CPCB: Some anonymous complaints accepted, but follow-up may be limited
- Police: Anonymous complaints accepted, but a formal FIR requires identity
- What if I don’t have all the technical evidence?
You can still file complaints based on:
- Visual evidence (photos/videos)
- Community impact observations
- Basic documentation of violations
- NGT and authorities can order technical investigations
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