Study on ‘economic impact’ of judicial decisions

In News-The NITI Aayog has commissioned a study to examine the “unintended economic consequences” of judicial decisions that have hindered projects on environmental grounds.

Why Needed?

• 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 in effect.

About –

• The study is to be undertaken by the Jaipur-headquartered CUTS (Consumer Unity and Trust Society) Centre for Competition, Investment and Economic Regulation, that also has an international presence.
• Purpose –
  • It will examine the “economic impact” of various judgments delivered by the 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.

• Examination of  five major projects
• It intends to examine five major projects that have been “impacted” by judicial decisions of the Supreme Court or the National Green Tribunal.
  • 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 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.
• Process :
  • It plans to do this by interviewing people who’ve been affected by the closure of the projects, environmental campaigners, experts and assessing the business impact of closure.
•  Objective
  • The objective of the study 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.