Can SHANTI Act deter courts from fixing ‘suitable’ compensation for nuclear disasters, SC asks
The Indian Supreme Court is questioning whether the SHANTI Act of 2025 limits the judiciary's power to award compensation to nuclear disaster victims. Legal experts argue the Act's liability caps are insufficient to cover potential damages.
Why it matters
This case addresses the tension between incentivizing industrial investment and ensuring legal accountability for public safety in the nuclear energy sector.
The Supreme Court on Monday asked if statutory thresholds prescribed by the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act of 2025 could possibly forbid constitutional courts from directing payment of suitable compensation to victims in cases of nuclear plant-related accidents.
“What is the prohibition on a constitutional court to grant suitable compensation against a lawful/legal tort? In case of a legal tort, the court can always grant,” Chief Justice Surya Kant, heading a three-judge Bench, said.
The court made the oral remark while issuing notice to the Union government and the Atomic Energy Regulatory Board (AERB) in a petition filed by retired senior bureaucrats and eminent scientists, represented by advocates Prashant Bhushan and Neha Rathi, challenging provisions of the SHANTI Act, 2025, which limit the liability of operators of nuclear installations, suppliers, manufacturers, etc.
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