"Can Victims Still Get Just Compensation?" Supreme Court Seeks Centre’s Reply on ₹3,000 Crore Liability Cap Under SHANTI Act!

The Supreme Court of India on Monday issued a limited notice to the Central Government, asking it to clarify whether Indian courts are precluded from awarding fair and just compensation to victims in the event of a nuclear accident under the newly enacted SHANTI Act (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act). A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V. Mohana also sought the Centre's response on potential conflicts of interest regarding how members are appointed to the nation's nuclear watchdog, the Atomic Energy Regulatory Board (AERB).

The top court was hearing a public interest litigation (PIL) filed by a group of prominent scientists, academicians, and former bureaucrats led by former Union Secretary E.A.S. Sarma, represented by advocates Prashant Bhushan and Neha Rathi. The petition argues that the 2025 SHANTI Act-which replaced the older Civil Liability for Nuclear Damage Act (CLNDA) of 2010-violates fundamental rights under Articles 14, 19, and 21 of the Constitution by capping the maximum liability of private nuclear plant operators at ₹3,000 crore. The petitioners argued that real-world nuclear disasters like Fukushima or Chernobyl caused damages exceeding ₹10 lakh crore, warning that setting a low cap effectively encourages operators and foreign equipment suppliers to cut corners on safety.

Addressing these concerns, Chief Justice Surya Kant observed that while Parliament designed the legislation as an economic policy to incentivize private investment and bring advanced nuclear technology to India, capping operator liability does not necessarily curtail the constitutional powers of courts or tribunals to award fair, full, and adequate compensation to victims. The bench also directed the government to clarify Section 17(4) of the Act, which allows the Atomic Energy Commission-the agency responsible for operating nuclear plants-to recommend members for the regulatory board tasked with overseeing those very same plants.