- Government think tank NITI Aayog has asked Jaipur-headquartered research organisation Consumer Unity and Trust Society (CUTS) International to conduct a study on the “economic impact” of various judgments delivered by Supreme Court, the high courts, and quasi-judicial bodies such as the National Green Tribunal (NGT) and the “judicial activism” of such courts and tribunals.
- “Judicial decisions have far-reaching economic impacts which are often not taken into account at the time of decision making. The absence of ex-ante analysis of the economic costs associated with a decision is further exacerbated when judicial activism by courts and tribunals is also in play,” a project brief of the study notes.
Objective of the Study:
- The objective of the study, being funded completely by the NITI Aayog, aims a “narrative building for sensitising the judiciary on the economic impact of their decisions” and the findings will be used as a “training input for judges of commercial courts, NGT, HCs, SC,” according to the documents.
- The study, initially supposed to start in February 2020 and get over by the end of this month, was delayed due to a nationwide lockdown to prevent the spread of Covid-19.
- CUTS International has approached the NITI Aayog with a plea to extend the timelines but is yet to get any response from the think tank, according to sources in the know. The total cost of the project, which was initially Rs 24.8 lakh, is likely to go higher this time around.
The first study is on the economic impact of the ban that was imposed by the apex court in March 2019 on the construction of a greenfield airport at Mopa in Goa. The top court had suspended an economic clearance granted for the airport and had then asked the Expert Appraisal Committee to revisit its decision. The ban on construction was lifted by an order of the top court in January 2020 but had several revised conditions.
The four other judgments, for which the economic impact assessment study will be carried out by CUTS International, include the SC’s February 2018 ban on iron ore mining in Goa, a 2013 NGT ban on sand mining in the Yamuna river in Gautam Buddha Nagar, the recurring SC ban on construction of buildings in Delhi and National Capital Region as well as the apex court’s decision rejecting the opening of Vedanta’s Sterlite copper plant, which has been closed since April 2018.
Projects to be Studied:
- The Study intends to examine five major projects that have been “impacted” by judicial decisions of the Supreme Court (SC) or the National Green Tribunal (NGT).
- Projects to be analysed include the construction of an airport in Mopa, Goa; cessation of iron ore mining in Goa, and the shutting down of the Sterlite copper plant in Thoothukudi, Tamil Nadu.
- The others are decisions by the NGT involving sand mining, and construction activities in the National Capital Region.
Significance:
- The findings will be used as a training input for judges of commercial courts, NGT, High Courts and SC.
- It would contribute to public discourse among policymakers for promoting an “economically responsible approach by judiciary” in its decisions.
- The study is also a part of the larger umbrella project undertaken by NITI Aayog under which it wants to establish a judicial performance index, which would measure the performance of judges at district courts and subordinate levels.
Previous Study:
- In 2017, the same CUTS International had also conducted an assessment study on the economic impact of the SC’s decision to impose a ban on the presence of liquor shops within 500 m of any highway.
- The study showed that cases which involve substantial social and economic dimensions need to be studied in detail to assess whether they are implementable in the first place and whether the loss to the economy outweighs the gains envisaged.
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