SC sets aside NGT order against Art of Living, directs DDA to refund ₹5 crore

NEW DELHI: The Supreme Court on Saturday (August 22, 2026) set aside a 2017 order of the National Green Tribunal (NGT) that had held Sri Sri Ravi Shankar's Art of Living Foundation responsible for environmental damage to the Yamuna floodplains during its World Culture Festival in 2016. The Court also directed the Delhi Development Authority (DDA) to refund the ₹5 crore environmental compensation deposited by the foundation.

A Bench of Justice Satish Chandra Sharma and Justice N.K. Singh allowed an appeal filed by Vyakti Vikas Kendra India, an organisation associated with the foundation, challenging the NGT's order. The bench further instructed the DDA to continue its efforts toward the rehabilitation of the Yamuna floodplains, as originally directed by the NGT.

The case dates back to the three-day World Culture Festival held in March 2016 on the ecologically sensitive floodplains of the Yamuna river in Delhi. The event, which attracted thousands of participants and featured cultural performances, raised concerns among environmentalists and activists over the potential damage to the riverine ecosystem.

In 2017, the NGT, acting on petitions, held the Art of Living Foundation accountable for the damage caused to the floodplains and imposed an environmental compensation of ₹5 crore on it. The tribunal also directed the foundation and the DDA to undertake restoration and rehabilitation measures in the area.

The foundation had consistently denied allegations of significant damage, arguing that the event was conducted with due permissions and that it had undertaken restoration work. However, the NGT found that the floodplains had suffered degradation due to the construction and activities during the event.

The Supreme Court's decision to overturn the NGT order comes after a lengthy hearing in which the foundation's counsel argued that the tribunal had erred in its assessment of the evidence and the extent of damage. The Court, in its judgment, observed that the NGT's findings were not sustainable on the basis of the material available.

While setting aside the fine, the Supreme Court made it clear that the rehabilitation of the Yamuna floodplains must continue. The DDA has been tasked with implementing the restoration plans, and the Court has asked the authority to ensure that the environmental integrity of the area is preserved.

The decision has been welcomed by the Art of Living Foundation, which has maintained that it never intended to harm the environment and had cooperated with all regulatory bodies. Legal experts note that the judgment could have implications for how environmental tribunals assess ecological damage, particularly in cases involving public events.

The Yamuna floodplains hold significant ecological value, acting as natural flood buffers and providing habitat for diverse flora and fauna. Their protection has been a subject of multiple judicial interventions, and the Supreme Court has previously emphasized the need to preserve them from encroachment and unregulated construction.

With the refund order, the DDA is expected to return the ₹5 crore amount to the foundation, although the timeline for the same has not been specified. The Court's directive to continue rehabilitation work ensures that the focus remains on restoring the floodplains, even as the legal dispute over liability has been resolved in favour of the foundation.

This ruling underscores the judiciary's role in balancing environmental concerns with the rights of organisations and individuals, while also ensuring that development and public events do not come at the cost of ecological damage. The full text of the judgment is awaited, and its detailed reasoning is likely to offer further clarity on the standards of proof required in environmental matters.