The Supreme Court has asked the Union government to clarify two crucial points regarding the SHANTI Act. The bench, headed by Chief Justice Surya Kant, wants to know if courts can award fair compensation despite the Act’s liability cap, and whether there is a conflict of interest in appointing members to the AERB.
Key Developments
- The bench issued a limited notice to the Centre, seeking answers on judicial compensation powers under the SHANTI Act.
- It also queried the appointment process of AERB members under Section 17(4) of the Act, highlighting a possible conflict of interest with the Atomic Energy Commission.
- Petitioners, led by former bureaucrat EAS Sarma, argue that the 2025 Act violates fundamental rights under Articles 14, 19, and 21.
- Advocates Prashant Bhushan and Neha Rathi contend that the liability cap of ₹3,000 crore encourages operators to cut safety corners.
Important Facts
The SHANTI Act replaces the Civil Liability for Nuclear Liability Act. It allows private firms to build nuclear plants but limits their financial responsibility to ₹3,000 crore in case of a mishap. The Supreme Court noted that the issues raised touch upon "economic policy" and therefore have wide‑ranging implications.
Exam Relevance
Understanding the SHANTI Act is vital for GS III (Economy) and GS II (Polity). Aspirants should link the following:
- How liability caps affect investor confidence and public safety.
- The balance between parliamentary legislation and judicial power to ensure justice (Article 21).
- Institutional design: the role of the Atomic Energy Commission versus the regulatory body, highlighting potential conflicts of interest.
Way Forward
The Centre must respond to the Court’s queries. Possible outcomes include:
- Amending the SHANTI Act to allow courts discretionary compensation beyond the cap.
- Revising the appointment mechanism for AERB to eliminate any perceived conflict, perhaps by separating the Commission’s advisory role from regulator selection.
- Strengthening safety oversight to address concerns raised by petitioners and civil society.
For UPSC preparation, keep track of any legislative amendments or Supreme Court judgments on this matter, as they illustrate the dynamic interplay between law, policy, and technology in India’s nuclear energy sector.