The Maharashtra Environment Department is set to revise bank guarantees and penalties for polluting industries after a CAG report highlighted lapses involving ₹272.47 crore in uncollected guarantees and weak enforcement

The Maharashtra Environment Department has decided to revise bank guarantees and fines imposed on polluting industries after a CAG report flagged lapses involving Rs 272.47 crore in uncollected guarantees, officials have said.

The move aims to increase accountability among industries discharging pollutants, with a committee set up to recommend a new structure for bank guarantees and penalties within three months, they said on Monday.

According to the CAG report tabled during the recently concluded Budget session of the state legislature, as many as 2,678 bank guarantees of Rs 272.47 crore were not obtained in physical form, making them unverifiable.

It also noted that forfeiture orders could not be executed in several cases due to non-collection of guarantees, and Rs 17.98 crore from forfeited guarantees was incorrectly credited instead of being utilised for environmental remediation.

The audit report further pointed to a short recovery of Rs 7.56 crore in consent fees, stating that environmental compensation of Rs 183.25 crore imposed on 339 industries remained un-recovered, with notices later withdrawn without adequate justification.

An official from the Environment Department noted that the revised bank guarantee structure would factor in pollution levels across regions, with higher rates proposed for critically polluted areas.

"There will not be random rates. We are considering higher guarantees in areas with higher pollution levels, such as Chandrapur," the official said.

The official added that an online system would be introduced to monitor the collection of bank guarantees and penalties, reducing human intervention and improving transparency.

The decision follows a meeting held last week under Maharashtra Environment Minister Pankaja Munde, attended by senior officials, including Environment and Climate Change Department Secretary Jayashree Bhoj, and representatives of the Maharashtra Pollution Control Board.

Officials noted that the current policy, under which industries are required to submit bank guarantees equivalent to 10 per cent of their investment in pollution control systems, has remained unchanged since 2013.

Discussions were held on increasing this amount to ensure stricter compliance with environmental norms.

Munde directed officials to undertake a comprehensive study and submit recommendations within three months.

"The objective is to ensure industries prioritise pollution control, while keeping the policy industry-friendly," she said, asking officials to examine Central Pollution Control Board guidelines and practices followed in other states.

The move follows a Supreme Court order in August 2025, which allows environmental regulators, including pollution control boards, to impose environmental compensation and seek bank guarantees as preventive measures against environmental damage.

Published on April 7, 2026