Are courts precluded from granting fair, just compensation in nuclear accident: SC asks Centre

The Supreme Court on Monday asked the Centre to clarify whether courts are precluded from granting fair and just compensation under the SHANTI Act in case of a nuclear accident.

A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana said it was issuing limited notice and also asking the Centre to clarify whether there was any conflict of interest in appointing members to the regulatory body under the SHANTI Act.

The top court was hearing a plea filed by a group of petitioners, including professors and scientists, led by former bureaucrat EAS Sarma. It submitted that the 2025 Act violated fundamental rights under Article 14, 19 and 21 of the Constitution.

Advocates Prashant Bhushan and Neha Rathi, appearing for the group, said the law caps the liability in case of any accident.

CJI Kant said there was too much apprehension and pointed out that even if Parliament has capped the liability of operators, it does not preclude the court from granting fair and just compensation.

He said Parliament has passed the bill to incentivise the project proponent and bring investment.

Mr. Bhushan submitted that it was like allowing operators to cut corners on safety.

The bench asked the Centre to clarify its position on appointment of members of the Atomic Energy Regulatory Body (AERB) under section 17 (4) of the SHANTI Act on the recommendation of the search and selection panel constituted by the Atomic Energy Commission.

Mr. Bhushan said the Atomic Energy Commission is responsible for running atomic power stations in the country and it cannot recommend members to the regulatory body, which is a conflict of interest.

The SHANTI Act, which replaced the Civil Liability for Nuclear Liability Act of 2010, permits private companies to set up civil nuclear power plants but exempts them from liability beyond ₹3,000 crore in the event of any unfortunate incident at a nuclear power plant.

On May 19, the top court observed that the issues raised in the plea challenging various provisions of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025, touch on the “economic policy”.