In a significant environmental ruling, the Himachal Pradesh High Court has directed infrastructure major M/s Dilip Buildcon Limited to deposit an environmental compensation fine of approximately Rs 89 lakh. The penalty was imposed for the illegal and unscientific dumping of muck into the Bhakra dam reservoir in Bilaspur district.
Court's Directive and Company's Challenge
Passing an order on January 6, a bench led by Chief Justice G S Sandhawalia instructed the company to deposit the fine with the court in a fixed deposit if it wishes to be heard on the merits of the case. The court had previously pointed out during a hearing on December 18, 2024, that non-payment would result in the company not being heard.
Dilip Buildcon, which is executing the crucial Bhanupali-Bilaspur-Beri rail line project for the Railways, has challenged the penalty. In an affidavit filed before the High Court on January 5, the company contested the Rs 85.87 lakh environmental compensation levied by the Himachal Pradesh State Pollution Control Board (HPSPCB) in 2023.
Dispute Over Penalty Calculation
The company's affidavit argues that the penalty is "grossly inflated and the computation method faulty." According to Dilip Buildcon, the amount should not exceed Rs 28.62 lakh, making the HPSPCB's fine nearly three times higher than what they deem appropriate. The affidavit also revealed that a civil writ petition regarding this matter was filed earlier on December 31, 2025.
A contentious point raised by the company involves a partial payment made under duress. The affidavit states that Dilip Buildcon deposited Rs 29.25 lakh in 2024 "under protest and coercion." This payment was made after the electricity supply to the project site was disconnected, bringing all work to a standstill. "The deposit was made only to secure restoration of power and prevent harm to an important infrastructure project," the affidavit clarified.
The Project and Environmental Concerns
The company is working on the Bhanupali-Bilaspur-Beri rail line project, awarded by Rail Vikas Nigam Ltd. The project involves constructing tunnels, bridges, and allied works. Sanctioned back in 2008-09, this 63 km-long line will traverse 15 villages in Bilaspur district. Its path includes five tunnels with a combined length of 10.7 km and over 12 bridges—five major and seven minor.
The core of the dispute remains the alleged illegal dumping of excavated material (muck) into the Bhakra dam reservoir, a critical water body. The HPSPCB's fine was a response to this environmental violation. Dilip Buildcon maintains its stance, stating the reason for not depositing the balance compensation is that the authorities' computation method was "illegal, grossly inflated, arbitrary and erroneous." The High Court's order now sets the stage for the next legal phase, contingent on the company depositing the contested amount.
