Export Vs Environment: Supreme Court 2016 in R.M. Dhariwal vs UOI Says PlasticWaste Rules Cannot Apply To 100% Export Units. The Supreme Court in R.M. Dhariwal100% EOU vs Union Of India & Ors dealt with conflict between environmental regulationand export business. The Court on 18.07.2016 exempted 100% EOU from Plastic WasteManagement & Handling Rules 2011 for export packaging. The Court relied on BabaGlobal precedent and dismissed MoEF review. The Court held that Rules framed underEPA 1986 for domestic waste cannot restrict exports. This blog explains R.M. Dhariwalon EOU, multilayered plastic, and judicial parity.
Facts: Interim Relief Granted; Review Dismissed. The Supreme Court in R.M.Dhariwal para 2: On 13.10.2015 Court granted interim exemption "during pendency ofpresent proceedings" subject to undertaking.Union of India opposed saying ASG wasnot authorized to give exemption in Baba Global and Ministry cannot grantexemption.The Supreme Court in R.M. Dhariwal para 4: Noted review was filed butdismissed on 14.01.2016. Hence Baba Global order stands.The Supreme Court in R.M.Dhariwal para 5: Made interim order final. "Allow the writ petition in terms of the order inBaba Global Ltd".A common mistake MoEF makes is treating all plastic use same. R.M.Dhariwal distinguishes domestic vs export.
Parity Principle: Baba Global And Harsh International. The Supreme Court in R.M.Dhariwal para 2: "Petitioner before us is also a 100% export oriented unit exporting PanMasala, Gutkha and Tobacco across the globe".In Baba Global, Court acceptedundertaking that no goods will be sold in India. In Harsh International, interim exemptiongranted on 06.12.2013.The Supreme Court in R.M. Dhariwal: "We think it is imperative toimpart parity to all the Writ Petitioners before us".In our practice, this is important forArticle 14. Similarly situated EOUs must get same treatment.Limits Of Exemption: Undertaking Is Key. The Supreme Court in R.M. Dhariwal didnot give blanket exemption. Exemption is conditional:100% EOU status must bemaintainedUndertaking that no goods sold in India Export only - if goods leak intodomestic market, exemption goesThe Supreme Court in R.M. Dhariwal para 2:Exemption on "understanding that it shall strictly abide by all terms contained inUndertaking".Lesson for Industry: Maintain records to prove 100% export. ForRegulators: Frame separate rules for export waste if needed.
Conclusion
R.M. Dhariwal vs Union Of India establishes that 100 percent eou plastic wasteexemption supreme court jurisprudence protects exporters from domesticenvironmental rules. Supreme Court 18.07.2016 confirmed exemption from PlasticWaste Rules 2011 for export packaging. Court upheld parity and dismissed MoEFchallenge. As the law stands, EPA 1986 rules apply to waste generated in India. For100% EOUs, compliance burden reduced if strict undertaking given. The SupremeCourt’s ruling in R.M. Dhariwal balances environmental concerns with exportobligations
