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Sterlite Industries has been asked by the Supreme court of India a subsidiary of UK-based Vedanta Group, to pay Rs 100 crore as compensation for polluting environment through its copper smelting plant in Tamil Nadu but refused to direct its closure.

A bench headed by Justice A K Patnaik said that the environment has been polluted for a long time due to the discharge from the plant of the multinational company and it has to pay compensation.

The court told that the compensation “must act as deterrent” and the amount of compensation should be decided on the basis of financial strength of the company.

It, however, refused to direct closure of the plant and set aside the Madras High Court’s 2010 order on closing it down.

Imposing the compensation on the company, according to the bench, “Amount less than Rs 100 crore would not have the desired impact.”


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