National Green Tribunal
Babu Lal Jajoo vs Chairman National Highway Authority Of ... on 11 May, 2026
Item No.10
BEFORE THE NATIONAL GREEN TRIBUNAL
CENTRAL ZONE BENCH, BHOPAL
(THROUGH PHYSICAL HEARING (WITH HYBRID OPTION)
Original Application No.87/2025(CZ)
Babu Lal Jajoo Applicant(s)
Vs.
Chairman, National Highway Authority
of India & Ors. Respondent(s)
Date of Hearing: 11.05.2026
CORAM: HON'BLE MR. JUSTICE SHEO KUMAR SINGH, JUDICIAL MEMBER
HON'BLE DR. AFROZ AHMAD, EXPERT MEMBER
For Applicant(s): Mr. Lokendra Singh Kachhawa, Adv.
For Respondent(s) : Mr. Ravi Kant Patidar, Adv. with
Mr. Satyam Jain, Adv. for R-1&4
Mr. Rohit Sharma, Adv. for RSPCB
& State of Rajasthan
ORDER
1. Issue raised in this application is violations being done by the National Highways Authority of India while construction of national highways. National Highways are one of the basic requirements for infrastructural development of nation. However, the same cannot be done at the cost of degradation of environment. The plantation work carried out by NHAI along national highways is not as per the norms. The local species of trees are completely ignored, no uniform policy with respect to number of trees to be planted against the trees felled; the survival rate of the compensatory plantation is very low. The information sought under RTI reveals that at some places number of trees planted is less than the number of trees felled and number of trees survived is more than the number of trees planted.
1 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
2. Notices were issued to the Respondent and in compliance thereof reply has been filed. We have heard learned Counsel for the parties and perused the record.
3. The submission of the learned counsel for the applicant are that the notification issued by the Ministry of Road Transport & Highway, New Delhi policy 2015 for main highways, plantation, transplantation, beautification and maintenance provides the guidelines and policy that loss of vegetation is one of the inevitable consequences of Highway Development. It is the responsibility of the highway development agencies to offset this loss by way of following the approach of Corridor Development & Management. The highway development agencies must strive to enhance the aesthetics of the highway corridor at all possible locations. Highways shall not be looked upon merely as a means of transportation, but an integral part and parcel of the physical environment and socio economic milieu. Often, while preparing the Land acquisition Plans for the highway projects, the land needed for the avenue plantation and landscape improvement is not considered during the DPR stage. As a result, after construction, when the planting is actually to start, there is no option but to accommodate planting in whatever space available. The width of the remaining ROW is, many times, not sufficient to accommodate even a single row of plants; whereas at some places, three to four rows can be planted. In order to ensure availability of sufficient width throughout for avenue planting, it is necessary that the requirement of land for tree plantation shall be included in the Land Acquisition Plans prepared by the DPR consultants.
Institutional arrangements and Financing Pattern 2 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
It is experienced that the scenario of road side plantation is not satisfactory in most of the projects implemented through BOT, DBFOT and public funded projects. This is the responsibility of road implementation agencies to develop green corridor along highways for aesthetic enhancement of the project corridors and places of importance by planting selective ornamental trees, landscaping and turfing with grasses and ornamental shrubs, in order to reduce the impact of air pollution and dust as trees and shrubs are known to be natural sink for air pollutants and carbon sequencing. It also reduces noise pollution and provides much needed shade on glaring hot roads during summer. Plantation arrests soil erosion at the embankment slopes, prevents glare from the headlight of incoming vehicles and moderates the effect of wind and incoming radiation. Green corridors guide the drivers for long distance curves and openings. One percent of the Total Project Cost (TPC) as plantation fund which will be kept in a separate account with the Authorised Agency appointed by the Ministry.
Transplantation Occasion may arise when a grown up tree has to be cut for making room for constructing a road, a building or other structure. It will be desirable to save this plant by transplanting it at a suitable site. To do this successfully some time is necessary. In winter when the tree is dormant or less active, it shall be pruned heavily leaving a bare framework of the large branches. A 40 to 50 cm wide trench 1 to 2 m deep shall be dug around the stem as much distance away from it, depending upon the stature of the specimen, cutting all the roots, big and small, in the process. The job of tree transplantation is quite 3 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
complex and requires high quality expertise, technique besides specialised equipment and infrastructure.
4. Learned Counsel for the State PCB Mr. Rohit Sharma, Adv. has argued that the matter relates to the National Highway Authority of India and NHAI is working in accordance with the policy guidelines framed by the National Highway Authority of India. Learned Counsel for the Respondent No.01 & 04 has argued that the Respondent- National Highway Authority of India (hereinafter referred as NHAI) was set up by an act of the Parliament, NHAI Act, 1988 with the following objective:
"An Act to provide for the constitution of an Authority for the development, maintenance and management of national highways and for matter connected therewith or incidental thereto".
NHAI has been entrusted with National Highways Development Project, which along with other minor projects, has vested with the National Highways across India for their development, maintenance and management.
5. It is further submitted that the objective of NHAI is to ensure that all the construction on the its highways conform to the best industry practices with regard to transparency of process, adoption of bid criteria to ensure healthy competition in award of contracts, implementation of projects conform to best quality requirements and the highway system is maintained to ensure best user comfort and convenience. NHAI is committed to maintain road safety standards across these highways and to provide quality infrastructure for economic growth of the nation and to ensure sustainable development in the process.
6. The Respondent at the outset submits that in various states of all over the country consistent efforts have been undertaken by the NHAI for 4 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
plantation along the national highways. The Green Highways (Plantation, Transplantation, Beautification & Maintenance) Policy, 2015 had been laid down by the Ministry of Road Transport & Highways, Government of India whose objectives are as follows:
i. To evolve a policy framework for plantation along National Highways.
ii. To reduce the impact of air pollution and dust as trees and shrubs are known to be natural sink for air pollutants.
iii. To provide much needed shade on glaring hot roads during summer.
iv. To reduce the impact of ever-increasing noise pollution caused due to increase in number of vehicles;
v. To arrest soil erosion at the embankment slopes.
vi. To prevent glare from the headlight of incoming vehicles.
vii. To moderate the effect of wind and incoming radiation.
viii. To create employment opportunities for local people.
PROJECT WISE PLANTATION DETAILS ON NATIONAL HIGHWAYS
7. NH-79 Widening at Kishangarh Gulabpura Section (PIU-Ajmer); 5 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors. 6 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors. 7 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors. 8 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors. 9 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
7. It is further argued that the Respondent has taken necessary permission for felling of the trees from the Competent Authority. It is submitted that the Respondent being an instrumentality of the Central Government ensures strict compliance with the prevalent laws in execution of their development projects and in cases of casualty of the saplings planted, they are re-planted with new saplings. However, it is submitted that the same is attributable to the natural reasons. The main reasons for few casualties of saplings in the concerned projects are as follows:
a. Physiography and nature of soil: The projects being based in the state of Rajasthan, the plantation exercise is difficult considering the physiography and high temperature and lack of other micronutrients in the soil which are important for the plants. Soils of Rajasthan are largely deficient in nitrogen (N), while phosphorus (P) is low to medium in nature but adequate in potassium (K). Salinity and alkalinity are present to some extent in all the zones with wide variation in proportion of problematic soils under salinity or alkalinity.10
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
b. Waterlogging due to heavy rainfall: In the state of Rajasthan for the past 2 to 3 years there has been incessant rainfall in the entire state for example compare to year 2023 in the year 2024 for 42% more rainfall. It is necessary to mention that alongside the highway, the land belongs to the state government and due to waterlogging issues, the survival rate of the plants in the Avenue plantation is affected. It is also relevant to state that in case of casualty of any sapling or plant, re-plantation is done in place of such plant/sapling.
c. Other than the above reasons the sapling planted are eaten by the cattle, stray animals, damaged due to winds, etc. It is necessary to mention that the road concessionaire or plantation agency etc is required to maintain the exact number of plants for a period of five to twenty years depending on the contract. Further the plants are maintained by the under the Green Highways Policy, 2015 as well. The Plantation Agency/Concessionaire is bound by the terms of contract to maintain the plants which are geo-
tagged. Therefore, they are bound by contractual obligations as well as its own economic interests to maintain the plants and ensure minimum casualty. NHAI had also incentivised the plantation by creating a Green Category in the National Highways Excellence Awards which is awarded to the concessionaire who have undertaken exemplary plantation work.
8. It is submitted that the Respondent is under compliance of the Green Highways Policy 2015 as per the submissions in the above paras of the 11 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
present reply. The answering respondent had itself preferred to execute Memorandum of Understanding with the Forest Department itself. NHAI had signed MoUs for roadside plantation during the year which was even before the MoEF&CC letter dated 01.09.2022. The copies of these MoU which have been executed during 2021 are placed at Annexure R/1-6 and Annexure R/1-8. It is pertinent to mention that for plantation works in other projects in the state of Rajasthan as well NHAI has executed the MoUs with the Forest Department.
9. It is further submitted that the circulars dated 02.09.2024 and circular dated 19.12.2024 are not relevant for the consideration of present case, as the same cannot be applied retrospectively, since the projects which have been questioned herein by the applicant had started in the year 2017 and were completed in the year 2022. Now the plantation in such completed projects shall be maintained by the concerned project concessionaire or the forest department depending on the project. The answering respondent will undertake the complete compliance of these circulars which have been issued by the Head Office of National Highway Authority of India in the upcoming projects prospectively and on the existing highways as and when the concession periods are over. In other words, the circulars relied upon by the applicant cannot have retrospective application.
10. The permission dated 16.03.2018 granted by District Collector, Ajmer was for 2572 plants. This permission was granted for the construction of the project NH 79 widening at Kishangarh Gulabpura Section. This project was started on 21.02.2018 and was completed on 20.07.2022. After the completion of the project, the median (shrubs) and avenue plantation undertaken across this stretch of the highway is 57,972 12 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
(Fifty-Seven Thousand Nine Hundred Seventy-Two plants) (54,406 Plants in the median (shrubs) and 3,566 plants in the avenue).
11. It is further submitted that the contention of the applicant that for felling of each and every plant NHAI has to plant 10 more plants is not sustainable and misconceived. The terms and conditions depend upon the specific permission granted by the relevant authority, which may differ from authority to authority. In this regard, it is submitted that in case where the permission for felling of trees is granted by the forest department, it is the forest department which does the plantation for which cost is deposited by NHAI. This shows that every authority does not impose condition of plantation of 10 trees for every tree felled, as forest department itself undertakes plantation at the cost of NHAI.
12. It is further submitted that under five projects falling within the jurisdiction of PIU, Ajmer, a total of 12,413 trees were cut. Against the same, a total of 2,16,478 avenue trees have been planted, out of which 47,353 were planted by the Contractor/Concessionaire and 1,69,125 by the Forest Department pursuant to MOUs executed. It is further submitted that the Project Director, PIU Ajmer, has executed three separate MOUs with the Forest Department for avenue plantation under three different projects. In pursuance thereof, the Forest Department has planted 1,69,125 avenue trees as per the terms and conditions of the said MOUs, and the requisite amount has been duly paid by the Project Director, PIU Ajmer. It is pertinent to mention that the details of such plantation carried out by the Forest Department were also furnished to the applicant by PIU Ajmer vide letter dated 01.05.2025 in reply to para 3 of the RTI application.
13. In state of Rajasthan the permission for tree cutting has been obtained under the provisions of the Rajasthan Tenancy Act, 1955 (Section 84, 13 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
85 and 86) in the revenue area and the Protected Forest Rules, 1955 and the Reserved Forest Rules, 1955 in the forest area. Neither the Act nor the Rules mandate plantation of 10 trees for cutting of a single tree, however the compensation amount as prescribed by the these have been deposited by the answering respondent with the Forest Department in each and every project. Thus the contention of the applicant that the answering respondent has not undertaken adequate plantation or has not complied with the tree felling permission is misconceived and factually incorrect. The project wise details of the amount deposited by the answering respondent with the Forest Department for the compensatory afforestation are as follows:
14. The Respondent has undertaking of Central Government and followed all the rules and guidelines and executed the projects in complete compliance of the law. It is further argued that the concession agreement and MoU with Forest Department have relevant clauses which ensures that the payment for plantation work shall be in fixed installments which are made only after certain progress is undertaken by the Plantation Agency and verified by the NHAI. They are quarterly monitoring review meetings by the NHAI, Head Office where plantation progress reports are submitted for examination as well.14
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
15. The Respondent submits that undertaking of any development activity certain changes are bound to happen in the ecology and environment of the area, however the same cannot put a complete ban on development. In this regards the answering respondent relies on the recent order dated 29.07.2025 passed by the Hon'ble Supreme Court of India in Suo Moto Writ Petition(Civil) No. 2/2019 "In Re: Felling of Trees in Aarey Forest (Maharashtra)" wherein the Hon'ble Supreme Court of India had made following significant observation:
"13. No doubt that the protection of environment is important, as has been consistently held by us that the environmental resources are held in trust for the future generations. However, at the same time, the necessity for carrying out development activities, cannot be ignored. If a country has to progress, the development of infrastructure is also necessary. Unless proper infrastructure is put in place, a country cannot progress. No doubt that while permitting such development, a caution has to be taken that the least damage is caused to the environment. Further, compensatory measures, so as to compensate the loss caused to the environment have to be undertaken. It has always been necessitated that the number of trees to be planted has to be in multiples of trees felled."
16. It is further submitted that the tree felling exercise in the concerned projects was undertaken by the NHAI after obtaining the necessary permissions by the competent authority. The Applicant has only made baseless and frivolous contentions about the answering Respondent. Therefore, in light of the above circumstances it would be necessary to complete the project in a timely manner in the interest of equity and justice. The NHAI unequivocally undertakes to comply with all the prevalent rules and regulations. Apart from the above plantation exercise the answering respondent also undertakes plantation under the various campaigns launched by the government of India such as "Ek Ped Maa Ke Naam" and ―Swachhata Hi Seva‖ campaigns. In these 15 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
campaigns the NHAI undertakes plantation across urban and rural locations nationwide in order to address the pressing need for environmental preservation.
17. The orders with regard to the trees and its felling which are issued in the year 2016 and 2018 have been filed by the Respondent and submitted that the permission from the Forest Department and the Collector has been taken by the Competent Authority. It is further argued that this matter relates to the year 2016 and cognizance under Sections 14 and 15 of the NGT Act cannot be taken and it is time barred.
18. The information with regard to the plantation work has been given in detail with Annexure R-1 which is on record. The memorandum of understanding between the NHAI and State Forest Department for plantation along national highway have been executed between the parties and are on record. The relevant paras are quoted below:
Memorandum of Understanding (MoU) between NHAI and State Forest Department for plantation on NHAI lands
19. The MoU made on 18/06/2021, between the President of Union of India This MoU made on acting through Project Director, PIU- Chittorgarh. of the National Highways Authority of India having its registered office at G 5&6 Sector 10, Dwarka New Delhi 110075 (hereinafter called the NHAI which term shall include the successors) of the one part.
And The Governor of Rajasthan, acting through the Forest Department, Rajasthan. State having its registered office at Aranya Bhawan, Jhalana Dungari, Jaipur (hereinafter called the Forest Department which term shall include his successors of the other part). The MoU 16 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
will be signed between the concerned Project Director. Project Implementation Unit of NHAI or any officer authorized by Regional Officer concerned (not below the rank of project director) & the concerned Forest officer (not below the rank of DFO) having jurisdiction over the project the site.
Whereas
1. NHAI has been established under the National Highways Authority of India Act, 1998 with the main objective of developing, maintaining and managing highways in the country as entrusted/vested by the Central Government.
2. NHAI undertakes projects related to the development of National Highways at various locations all over India. These projects are formulated and implemented according to policy guidelines of the Govt. for meeting the growing needs of the road transport in the country.
3. Forest Department, Rajasthan is the government agency for carrying out the plantation activity in the state and it has sufficient expertise and infrastructure to take up plantations of this magnitude.
4. The NHAI proposes to the Forest Department of Rajasthan state to take up the plantation project implementation period from 2021-22 to 2025-26, from km 972.000 To km 1012.000 along 40 Km of National Highway land of NH 27. The details are as under:-
District wise length and cost break-up is as under 17
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
20. The Forest Department through their local authorities and workers will be responsible for plantation of tree and shrub species and maintain spacing between ROW to ROW and Plant to Plant for implementation of approved Green Highways Projects (GHPs) as enclosed (A copy of the project to be annexed) following the Green Highways Policy 2015 and IRC SP-21 2009 Guidelines and other guidelines as agreed upon in project formulation and implementation during project period. The State Forest Department will also take care for protection of the plantations and trees, fencing, boundary pillars etc.
21. NHAI will release funds to Forest Department according to NHAI office memorandum No 464 dated 19.07.17 with a provision of mobilization advance and subsequent payment schedule of project period subject to submission of Utilization Certificate and verification of plants survival as captured through monitoring mechanism" defined in SOP.
*A joint team of Forest Department and NHAI with geo referenced data will determine survival percentage each time required.
22. Forest Department will ensure that the survival of plants should be nearly 90% at the time of handling over the plantation to NHAI. However in exceptional circumstances, variation of 10% in survival percentage of plants will be allowed. Average height of the plants 18 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
should not be less than height achieved by the same species growing naturally in that area, except for the reasons beyond human control.
23. The Forest Department will be competent to deal any damage or loss of plantation/trees by other than NHAI officials, according to the provisions of the applicable acts and rules of the state.
24. It is further argued on behalf of the Respondent No.03-Principal Chief Conservator of Forest, Jaipur that an MoU is signed between the Forest Department and NHAI for tree plantation along national highways. According to the terms of the Mou, the Forest Department ensures the survival of trees along national highways by planting and maintaining them. It is incorrect to say that trees do not survive. Joint inspections of tree plantations are conducted with NHAI. The Forest Department's monitoring and evaluation team also periodically assesses the survival of trees in these of trees are not in these plantations. It is incorrect to say that native species planted plantations. Native species of trees such as Neem, Bad, Peepal, Gular, Sheesham, Khejri, Rohida, Khair, Karanj, etc. are planted along national highways.
25. In accordance with the Green Highway (Plantation, Transplantation, Beautification and Maintenance) Policy 2015, the Forest Department is carrying out tree plantation work along the National Highways through an MoU with NHAI. The Forest Department accepts the issuance of guidelines as described in this paragraph. The Forest Department is implementing the guidelines issued by the Ministry of Environment, forest & Climate Change (MOEFCC) The Forest Department has developed a model for tree plantation in accordance with the Forestry's guidelines. Only native Ministry of species are planted and latest progress of tree plantation has been filed by the Forest Department. 19 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
26. It is further argued that the Forest Department is planting trees along the national highway in accordance with the MoU signed with NHAI. All standards are being strictly observed. It is further argued that there is a system for monitoring the plantations through joint inspection by representative of NHAI and Forest Department and also for evolution at the State level.
27. The Ministry of Road, Transport and Highways, Planning Zone, New Delhi, published a policy decision for land acquisition, tree felling, utility shifting across the alignment which was published vide office memorandum/notification dated 10th May, 2018, as follows:-
―2. Upgradation project of any National Highway involves, (i) Acquisition of additional land, (ii) Shifting of utilities, (iii) Felling of trees, and (iv) Removal of existing structures which fall in the Right of Way (ROW) of the proposed expansion. Meeting these pre-requisites not only entails heavy cost but also involves a lot of time and effort. Further, the felling of grown-up trees leads to adverse effects on environment. It has been observed that shifting of utilities, felling of trees and structures can be considerably reduced (by about 50%) if the land for expansion of any highway is acquired on one side of an existing road, as against doing the same on both sides.
3. Accordingly, in continuation of the Circular of even number dated February 26, 2018 issued with regard to alignment of NHs, it has been decided that the project implementation agencies shall undertake additional land acquisition on one side of an existing road to the extent feasible for expansion of existing roads to next level of configurations. It may also be noted that the acquisition side shall be decided based on the intensity of the existing utilities and trees (following overall cost savings principle) and such side may change from one stretch to another stretch depending upon the most optimal alignment. Following policy guidelines shall be followed henceforth to minimize the requirement of additional land acquisition, optimization of utility shifting and felling of trees:
(i) For roads being developed as Two-lane with paved shoulders and where traffic is below 5,000 PCUs, the expansion shall be carried out within the existing ROW and land acquisition shall be limited to only 20 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
re-alignments and bypasses. In cases where the ROW permits expansion through eccentric widening (expansion of 3 mtrs on one side), the same shall be adopted as it reduces the need for utility shifting and tree felling to one side of the ROW, thereby reducing costs and saves the environmental footprints.
(ii) For roads being developed as Two-lane with paved shoulders with traffic between 5,000 to 10,000 PCUs, and where the projected traffic may go up to 40,000 PCUs in due course of about next 25-30 years, the additional Land shall be acquired for achieving a total ROW of 45 meters (existing + additional) in such a manner that the present construction (eccentric widening to two lane with paved shoulders) and future expansion (4 lane eccentric widening) would impact utility shifting and tree-felling only on one side of the Right of Way (RoW). In nutshell, the development of the 2-Lane with PS wll be undertaken on one side of the ROW of 45 mtrs so that as & when it matures for 4- laning, the other part of the divided carriageway and the Median do not disturb the existing carriageway of 2-Lane +PS. The additional land acquisition in these cases shall be done only when no parallel alignment is proposed or cannot be developed in future to diversify traffic. In case of traffic diversification potential, the two-lane with paved shoulders shall be developed within the available ROW.
(iii) For expansion of an existing two-lane or two lane with paved shoulders road to 4 lane with paved shoulder Highways, the following guidelines shall be followed for end-lane status and the stage development based on the present traffic (including the induced traffic:
21
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
28. The Ministry of Road, Transport and Highways has further taken a policy decision for plantation, transplantation, beautification and maintenance and relevant provisions for selection of tree species for roadside plantation and schemes are as follows:-
―6. Plantation Scheme 6.1 The plantation scheme has been broadly classified into two categories which are as follows:-
a) Tree planting along the Highway Turfing with grasses and shrub/herb.
b) planting on medians/special landscapes/embankment slopes.
6.2. Selection of Tree Species for roadside plantations:
6.2.1 Plantation is one of the most important constituents of soft landscaping. Trees, shrubs and climbers have been used to enhance the soft natural ambience against harsh elements in most of the enhancement schemes. The planting species are decided based on the physical growth characteristics of trees, like form and shape, foliage pattern, growth rate, branching pattern, soil characteristics and conditions of the strip like water logged areas etc. While selecting the species of trees for landscaping, a great care shall be taken to choose the species, which already exist along the project corridor. On the other hand, if a pure avenue of single species is planted for a considerable length of the road, it gives a harmonious and pleasing 22 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
look. It is, therefore, essential that mixtures of different species shall be avoided and pure avenues of a single species be planted over long stretches of road. This will enhance the aesthetic quality and will also render management easier.
6.2.2 The selection of plant types and planting arrangement shall be based on the following considerations:-
I. Aim and objective of plantation II. Shape and size (size and spread) of the canopy III. Texture and colour of foliage/flower/fruits in different seasons and stages of growth.
IV. Adaptability and suitability to agro-climatic regions/zones V. Growth rate (slow/fast) average age of maturity and replacement cycle VI. After care and maintenance required for sustenance and growth VII. Economic and other social/recreational benefits VIII. Drawbacks and demerits if any, like prone to insects/pests disease, animal grazing and human interference.
6.2.3 The Guidelines on Landscaping and Tree Plantation (IRC:SP:21-
2009), provide for detailed specifications with respect to roadside plantations and Median Plantation.
6.3. Plantation Pattern 6.3.1 The road landscape shall be developed envisaging a holistic approach to the entire stretch. A concept shall be evolved so as to maintain visual characteristics and uniformity in terms of landscape along the stretch. In the absence of uniform land availability for the plantations, different schemes may be worked out in tune with local variations in the design. To achieve this, the entire stretch of the project corridor shall be divided into homogenous landscape sections based on similarity in terms of available width, soil conditions, climate (temperature and rainfall) and topography. A study on the local flora and vegetative cover native to these sections shall be carried out as part of the field surveys to enable a choice of the suitable species for particular section. Depending on the available ROW, plantation pattern shall be worked out as follows:-
The first row along the Highways will be of small to medium sized ornamental trees.23
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
Subsequent rows depending on the availability of width will comprise of ornamental and/or shade bearing species, of more height than those in the first row. In rural sections the last row will always be of shade bearing tall trees.
Planting of shrubs in the median.
Planting of herbaceous species as ground cover in the median, special landscapes, and embankment slopes.
Turfing with grass in the median, special landscapes, and embankment slopes.
6.3.2 Table 1, 2 and 3 list a few species, which can generally be planted throughout India.24
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
............x.............x...............x.................
10. Road Safety The first row of plantation shall be sufficiently away from the roadway so that they are not a hazard to road traffic or restrict the visibility. Most vulnerable location in this regard are the inside of curve, median, junction corner and cut slopes. Trees shall be planted at a minimum distance of 14m from the central line of the extreme traffic lane to provide recovery area for the vehicle that runs off the road. The second row is 3m away from the first row. The third and the subsequent rows is also be 3 m away from the second and so on as per availability of land. Growth of vegetation close on road curve may lead to serious reduction of clear sight distance and may cause accidents. Tall and overgrowth plants on and near the curve is not permissible. In plain terrain, a stopping site distance of 170 m corresponding to the designed speed of 100 Km per hour shall be ensured on all curved sections, on the innermost lane of the curve. Highway medians of upto 1.5 m width shall not be planted, as there is hardly any space left on such medians for maintenance. Undertaking maintenance on such medians from the carriageway may pose safety hazards. In case it is decided to raise plants on medians, permanent pipelines / drip irrigation systems must be laid to avoid use of tankers for watering.
............................
14. Performance Audit The monitoring Agency will conduct performance audit of Executing agencies for various projects on an Annual basis and award of new 25 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
contracts to the agencies will be decided based on their past performance.
..............
17. Compliance to Forest Conservation Act and local laws Before starting any plantation, the local forest department will be consulted for ensuring compliance to any regulation in force that may affect raising, maintenance, and harvesting of the raised plantation. Necessary modifications will be made in the plantation scheme, in consultation with the forest department, to ensure compliance to law and to avoid complications at the time of harvesting and transportation of forest produce. In case the State Government has any provision for registration of such plantations, the same will be ensured under the relevant scheme.
18. Survival The survival shall be 90% after raising the plantation of age one year at any stage during contractual period with normal shape and size.‖
29. Submissions of the learned Counsel for the Respondents are that these are the policy decisions which have been taken by the State Government in consultation with the Central Government, Ministry of Road, Transport and Highways, and the policy decisions unless and until it violates any of the provisions of the law or Constitution mandates, cannot be challenged before the Court and generally the Tribunal is not competent to interfere in the policy decision or the policy taken by the Government.
30. The above view has been supported in the case of Ugar Sugar Works Ltd. v. Delhi Administrative and Ors. MANU/SC/0189/2001 : (2001) 3 SCC 635 the Apex Court has held as follows:
18. ...It is well settled that the Courts, in exercise of their power of judicial review, do not ordinarily interfere with the policy decisions of the executive unless the policy can be faulted on grounds of mala fide, unreasonableness, arbitrariness or unfairness etc. Indeed, arbitrariness, irrationality, perversity and mala fide will render the policy unconstitutional. However, if the policy cannot be faulted on any of these grounds, the mere fact that it would hurt business interests of a party, does not justify invalidating the policy.26
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
26. In the aforesaid paragraph the Apex Court has further held that the Courts are not expected to express their opinion as to whether at a particular point of time or in a particular situation any such policy should have been adopted or not. It is best left to the discretion of the State.
31. In the case of Union of India and Anr. v. International Trading Co. and Anr.
MANU/SC/0392/2003 : (2003) 5 SCC 437, the Apex Court has held as follows:
―15. While the discretion to change the policy in exercise of the executive power, when not trammeled by any statute or rule is wide enough, what is imperative and implicit in terms of Article 14 is that a change in policy must be made fairly and should not give impression that it was so done arbitrarily on by any ulterior criteria. The wide sweep of Article 14 and the requirement of every State action qualifying for its validity on this touchstone irrespective of the field of activity of the State is an accepted tenet. The basic requirement of Article 14 is fairness in action by the state, and non-arbitrariness in essence and substance is the heart beat of fair play. Actions are amenable, in the panorama of judicial review only to the extent that the State must act validly for a discernible reasons, not whimsically for any ulterior purpose. The meaning and true import and concept of arbitrariness is more easily visualized than precisely defined. A question whether the impugned action is arbitrary or not is to be ultimately answered on the facts and circumstances of a given case. A basic and obvious test to apply in such cases is to see whether there is any discernible principle emerging from the impugned action and if so, does it really satisfy the test of reasonableness.‖
32. Broadly, a policy decision is subject to judicial review on the following grounds:
(a) if it is unconstitutional;
(b) if it is dehors the provisions of the Act and the Regulations;
(c) if the delegate has acted beyond its power of delegation;
(d) if the executive policy is contrary to the statutory or a larger policy.27
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
33. In the case of Villianur Iyarkkai Padukappu Maiyam v. Union of India and Ors. MANU/SC/0811/2009 : (2009) 7 SCC 561, the Apex Court has held as follows:
―168. In a democracy, it is the prerogative of each elected Government to follow its own policy. Often a change in Government may result in the shift in focus or change in economic policies. Any such change may result in adversely affecting some vested interests. Unless any illegality is committed in the execution of the policy or the same is contrary to law or malafide, a decision bringing about change cannot per se be interfered with by the court.
169. It is neither within the domain of the courts nor the scope of judicial review to embark upon an enquiry as to whether a particular public policy is wise or whether better public policy can be evolved. Nor are the courts inclined to strike down a policy at the behest of a Petitioner merely because it has been urged that a different policy would have been fairer or wiser or more scientific or more logical. Wisdom and advisability of economic policy are ordinarily not amenable to judicial review. In matters relating to economic issues the Government has, while taking a decision, right to "trial and error" as long as both trial and error are bona fide and within the limits of the authority. For testing the correctness of a policy, the appropriate forum is Parliament and not the courts.
From the aforesaid decisions of the Apex Court, it is clear that a Court can interfere in a policy decision of the Parliament/State Legislatures/Governments if any of the following conditions exist:(I) If the policy fails to satisfy the test of reasonableness, it would be unconstitutional.(II) The change in policy must be made fairly and should not give impression that it was so done arbitrarily on any ulterior intention.(III) The policy can be faulted on grounds of mala fide, unreasonableness, arbitrariness or unfairness etc.(IV) If the policy is found to be against any statute or the Constitution or runs counter to the philosophy behind these provisions.(V) It is dehors the provisions of the Act or Legislations.(VI) If the delegatee has acted beyond its power of delegation.‖ 28 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
34. The order can be challenged under any of the following grounds:
(a) Lack of legislative competence to make the
subordinate legislation.
(b) Violation of fundamental rights guaranteed under the Constitution of India.
(c) Violation of any provision of the Constitution of India.
(d) Failure to conform to the statute under which it is made or exceeding the limits of authority conferred by the enabling Act.
(e) Repugnancy to the laws of the land, that is, any enactment.
(f) Manifest arbitrariness/unreasonableness (to an extent where Court might well say that the legislature never intended to give authority to make such Rules).‖
35. In Union of India Vs. Dinesh Engineering Corpn. & Anr. (2001) 8 SCC 491, the Supreme Court observed as follows:-
―.........Where the decision of the authority is in regard to a policy matter, this Court will not ordinarily interfere since these policy matters are taken based on expert knowledge of the persons concerned and courts are normally not equipped to question the correctness of a policy decision. But then this does not mean that the courts have to abdicate their right to scrutinise whether the policy in question is formulated keeping in mind all the relevant facts and the said policy can be held to be beyond the pale of discrimination or unreasonableness, bearing in mind the material on record.......... . Any decision, be it a simple administrative decision or a policy decision, if taken without considering the relevant facts, can only be termed as an arbitrary decision. If it is so, then be it a policy decision or otherwise, it will be violative of the mandate of Article 14 of the Constitution.‖
36. In Krishnan Kakkanth Vs. Govt. of Kerala, AIR 1997 SC 128; the Hon'ble Apex Court held that the judicial review of policy decision is permissible in exceptional circumstances only when the Court is of the view that the 29 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors. order suffers from arbitrariness and unreasonableness. The Court observed as under:-
―To ascertain unreasonableness and arbitrariness in the context of Article 14 of the Constitution, it is not necessary to enter upon any exercise for finding out the wisdom in the policy decision of the State Government. It is immaterial if a better or more comprehensive policy decision could have been taken. It is equally immaterial if it can be demonstrated that the policy decision is unwise and is likely to defeat the purpose for which such decision has been taken. Unless the policy decision is demonstrably capricious or arbitrary and not informed by any reason whatsoever or it suffers from the vice of discrimination or infringes any statute or provisions of the Constitution, the policy decision cannot be struck down. It should be borne in mind that except for the limited purpose of testing a public policy in the context of illegality and unconstitutionality, Court should avoid embarking on uncharted ocean of public policy.‖
37. In view of the above legal points the policy decisions taken by the government for construction or widening of the road is not required to be interfered with for the reasons that the decision is in public interest.
38. Next issue raised by the learned Counsel for the Applicant in this Original Application is with regard to the audit and accounting of the funds collected under this scheme under the Forest (Conservation) Rules and Act.
39. The Forest (Conservation) Rules, 2003, framed under sub-section (1) of Section 4 of the Forest (Conservation) Act, 1986, (Section 3 provides composition of Forest Advisory Committee headed by Director General of Forests, Ministry of Environment, Forest and Climate Change, including other members and there is another Regional Empowered Committee and Rule 5 provides conduct of business by the Committee. There are provisions of submission of 30 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
provision seeking approval of the Central Government and the Compensatory Afforestation Fund Act, 2016, Rule 3 provides the establishment of national fund as follows:-
"3. Establishment of National Fund. (1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a special Fund to be called the "National Compensatory Afforestation Fund" under the public account of India. (2) The National Fund shall be under the control of the Central Government and managed by the National Authority in such manner as may be prescribed.
(3) On the date of establishment of the National Fund, all monies collected by the State Governments and Union territory Administrations which has been placed under the ad hoc Authority and deposited in the nationalised banks shall be transferred to the National Fund.
(4) There shall also be credited into the National Fund, by each State on yearly basis, ten per cent. of the funds realised from the user agencies in respect of the forest land diverted in their favour, which have been credited directly into the State Fund. (5) There shall also be credited to the National Fund-
(a) grants-in-aid received, if any, by the National Authority;
(b) any loan taken or any borrowings made by the National Authority;
(c) any other sums received by the National Authority by way of benefaction, gift or donations.
(6) The monies received in the National Fund shall be an interest bearing fund under public accounts of India.
4. Establishment of State Fund.-(1) With effect from such date as each State Government may, by notification in the Official Gazette, appoint in this behalf, there shall be established for the purposes of this Act, a special Fund to be called the "State Compensatory Afforestation Fund.......... (name of State)" under public accounts of such State:
Provided that in case of Union territory having no legislature, such fund shall be established under the public account of Union of India with effect from such date as the Union territory Administration may, by notification in the Official Gazette, appoint in this behalf.31
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
(2) The State Fund in each State shall be under the control of the State Government of such State and managed by the State Authority of such State, in such manner as may be prescribed. (3) There shall be credited into the State Fund of a State-
(i) the unspent balance of all monies which has been transferred by ad hoc Authority to the State Compensatory Afforestation Compensatory Afforestation Funds Management and Planning Authority constituted in such State in compliance of guidelines dated the 2nd July, 2009;
(ii) all monies transferable from the National Fund under clause
(a) of section 5;
(iii) all monies realised from user agencies by such State towards compensatory afforestation, additional compensatory afforestation, penal compensatory afforestation, net present value, catchment area treatment plan or any money for compliance of conditions stipulated by the Central Government while according approval under the provisions of the Forest (Conservation) Act, 1980 (69 of 1980); and
(iv) the funds recoverable from user agencies by such State in cases where forest land diverted falls within the protected areas, that is, areas notified under sections 18, 26A or 35 of the Wild Life (Protection) Act, 1972 (53 of 1972) for undertaking activities relating to the protection of biodiversity and wildlife. (4) A State Government may also credit to the State Fund constituted by it-
(i) grants-in-aid received, if any, by the State Authority;
(ii) any loan taken or any borrowings made by the State Authority;
(iii) any other sums received by the State Authority by way of benefaction, gift or donations.
(5) The monies received in the State Fund shall be an interest bearing fund under public accounts.
(6) The balance in each State Fund shall be non-lapsable and get interest as per the rate declared by the Central Government on year to year basis.
(7) The balance in the National Fund shall be non-lapsable and get interest as per the rate declared by the Central Government on year to year basis.
5. Disbursement and utilisation of National Fund. - Save as otherwise provided in this Act, the monies available in the National 32 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
Fund shall be disbursed and utilised in the following manner, namely:-
(a) ninety per cent. of the all monies collected by a State, which has been placed under the ad hoc Authority and the interest accrued thereon, shall be transferred to the State Fund established in such state under sub-section (1) of section 4;
(b) the balance ten per cent. of all monies collected by the States and Union territory Administrations, which has been placed under the ad hoc Authority and the interest accrued thereon, and all fresh accrual to the National Fund, as provided in sub-section (4) of section 3, and the interest accrued thereon, shall be utilised for meeting-
(i) the non-recurring and recurring expenditure for the management of the National Authority including the salary and allowances payable to its officers and other employees;
(ii) the expenditure incurred on monitoring and evaluation of works executed by the National Authority and each State Authority;
(iii) the expenditure incurred on specific schemes approved by governing body of the National Authority.
Explanation. For the purposes of this section, "scheme" includes any institute, society, centre of excellence in the field of forest and wildlife, pilot schemes, standardisation of codes and guidelines and such other related activities for the forestry and wildlife sector.
............x.............x............x.............x................
7. Accounting procedure.-- The accounting procedure to regulate the manner of crediting the monies to the National Fund and State Fund in a year shall be in such manner as may be prescribed.
8. Constitution of National Authority. - (1) With effect from such date as the Central Government may, by notification in the Official Gazette, appoint in this behalf, there shall be constituted a National Authority to be called the "National Compensatory Afforestation Fund Management and Planning Authority".
(2) The National Authority shall manage and utilise the National Fund for the purposes of this Act.
(3) The National Authority shall consist of a governing body and shall be assisted by an executive committee, monitoring group and administrative support mechanism.
(4) The governing body of the National Authority shall consist of the following, namely:-
33
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
(i) Minister for Environment, Forest and Climate Change, Government of India-Chairperson, ex officio;
(ii) Secretaries of Ministries dealing with Environment, Forest, Climate Change, Finance (Expenditure), Rural Development, Land Resources, Agriculture, Panchayati Raj, Tribal Development, Science, Technology, Space and Earth Sciences and Chief Executive Officer, National Institution for Transforming India Ayog, Government of India-Members, ex officio:
(iii) Director General of Forests and Special Secretary, Ministry of Environment, Forest and Climate Change, Government of India-Member, ex officio;
(iv) Additional Director General of Forests (Forest Conservation), Ministry of Environment, Forest and Climate Change, Government of India-Member, ex officio;
(v) Additional Director General of Forests (Wildlife), Ministry of Environment, Forest and Climate Change, Government of India- Member, ex officio;
(vi) Mission Director, National Mission for a Green India, Ministry of Environment, Forest and Climate Change, Government of India-Member, ex officio;
(vii) Financial Adviser, Ministry of Environment, Forest and Climate Change, Government of India-Member, ex officio;
(viii) five Principal Chief Conservator of Forests, not more than one from each of the ten regions, to be nominated by the Ministry of Environment, Forest and Climate Change, Government of India on rotation basis for a period of two years, at a time-Members, ex officio;
(ix) Inspector General of Forests (Forest Conservation), Ministry of Environment, Forest and Climate Change, Government of India-Member, ex officio;
(x) five experts, one each from environmentalists, conservationists, scientists, economists, and social scientists appointed by the Central Government for a period of two years subject to not more than two consecutive terms Members.
(5) The Central Government may appoint an officer of the rank of an Additional Director General of Forests as the Chief Executive Officer of the National Authority who shall be the Member Secretary of the governing body and the executive committee of the National Authority.‖ 34 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
40. It is to be noted that in the national authority, the Minister of Environment, Forest and Climate Change is the chairperson including the other responsible officers and there are post of Financial Adviser to have a complete control over the finances. Similarly, in the State Authority, the Chief Minister is the chairperson and the Chief Secretary is the Ex-officio member. There is a Steering Committee in Section 11 as follows:-
―11. Steering committee and executive committee of State Authority.-(1) The governing body of the State Authority shall, in performance of its functions and powers under the Act, be assisted by the steering committee and the executive committee. (2) The steering committee of a State Authority shall consist of the following, namely:-
(i) Chief Secretary Chairperson, ex officio;
(ii) Principal Secretaries of the Departments dealing with Forests, Environment, Finance, Planning, Rural Development, Revenue, Agriculture, Tribal Development, Panchayati Raj, Science and Technology-Members, ex officio;
(iii) Principal Chief Conservator of Forests (Head of Forest Force)- Member, ex officio;
(iv) Chief Wildlife Warden-Member, ex officio;
(v) Nodal Officer, the Forest (Conservation) Act, 1980 (69 of 1980) Member, ex officio;
(vi) Head of the concerned regional office of the Ministry of Environment, Forest and Climate Change Member, ex officio;
(vii) Nodal Officer, State Forest Development Agency Member, ex officio;
(viii) an expert on tribal matters or a representative of tribal communities to be appointed by the State Government-Member;
(ix) Chief Executive Officer, State Authority-Member-Secretary.
(3) The executive committee of a State Authority shall consist of the following, namely:-
(i) Principal Chief Conservator of Forests (Head of Forest Force) Chairperson, ex officio;
(ii) Chief Wildlife Warden-Member, ex officio;35
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
(iii) an officer not below the rank of a Chief Conservator of Forests dealing with forest and wildlife related schemes Member, ex officio;
(iv) an officer not below the rank of a Chief Conservator of Forests dealing with forestry research Member, ex officio;
(v) Nodal Officer, State Forest Development Agency Member, ex officio;
(vi) a representative each of the Departments dealing with Environment, Finance, Planning, Rural Development, Revenue, Agriculture, Tribal Development, Panchayati Raj, Science and Technology-Members, ex officio;
(vii) Financial Controller or Financial Adviser, to be nominated by the Finance Department-Member, ex officio;
(viii) two eminent non-government organisations to be appointed by the State Government-Members;
(ix) two representatives of district level Panchayati Raj Institutions to be appointed by the State Government-Members;
(x) an expert on tribal matters or a representative of tribal community to be appointed by the State Government-Member;
(xi) Chief Executive Officer, State Authority Member-Secretary.
(4) The State Authority may appoint the following officers for a period not exceeding five years, to assist the steering committee and executive committee in performance of its functions under the Act, namely:-
(i) Joint Chief Executive Officer of the rank not below the rank of a Conservator of Forests;
(ii) Financial Advisor and Chief Accounts Officer of the rank not below the rank of a Deputy Secretary in the State Government;
(iii) Deputy Chief Executive Officer of the rank not below the rank of a Deputy Conservator of Forests.
(5) The governing body of the State Authority may with the prior concurrence of the State Government create posts in the State Authority at the level of Assistant Conservator of Forests and other officials to assist the steering committee and executive committee in performance of its functions under the Act.‖
41. There is a provision of financial controller or financial adviser who is duty bound to control of finances subject to audit and accounts. 36 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
Section 20 provides the budget of national authority. Section 22 provides the account and audit of national authority. Section 23 provides the annual report of national authority. Sections 24 and 25 provide the annual report and the audit report by the national authority to be laid before the Parliament and budget of State Authority.
42. The Compensatory Afforestation Rules, 2018, in different provisions provides the accounting procedure as follows:-
"31. Financial regulation and procedures of National Authority. -The financial regulation and procedures, in particular the procedure for drawing up and implementing the budget of the National Authority shall be in accordance with the General Financial Rules 2017 and the orders issued by the Central Government from time to time in this regards.
...........x.............x............x............x................
36. Preparation of budget of State Authority. - The State Authority shall prepare its budget for the next financial year showing the estimated receipts and expenditure of State Authority in Form-VI based on the annual plan of operation prepared and approved by the governing body for the next financial year, showing the estimated receipts and expenditure of the State Authority and forward the same to the State Government and Central Government in each financial year by the 31st December.
37. Maintenance of accounts and preparation of annual statement of accounts by State Authority. - The monthly statement of accounts shall be prepared in Form-VII; the monthly statement of the State Authority on physical and financial achievements shall be prepared in Form-VIII and annual statement of accounts of the State Authority shall be prepared in Form-IX, and the State Authority shall maintain its records and accounts in Form-X.
38. Annual reports. - The annual report shall be prepared by the State Authority giving brief description of all activities undertaken from State Fund with separate headings and compiled in separate chapters and the reports shall include summary of works undertaken and schemes prepared and approved in annual plan of operation, and the annual report shall include the statement in Form-XI. The annual plan of operation of State Authority. - The annual plan of operation of the State Authority shall be prepared in Form-XII 37 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
and shall be submitted by the State Authority before the 31st December of every year to the National Authority for the next financial year.‖
43. All these funds are utilized in accordance with the General Financial Rules, 2017, and orders issued by the Central Government from time to time subject to audit by the Comptroller and Auditor General of India. The Government of India has framed the Compensatory Afforestation Fund (Accounting Procedure) Rules, 2018, which came into force on 20.11.2018, which provides that the funds are to be regulated in accordance with the Public Account of India under a distinct head and there are provisions of deposit and disbursement according to the ratio. Details of account entries are as follows:-
"3. Detailed Accounting Entries.-
The accounting entries for transfer of the existing monies with ad-hoc Authority shall be as below:-
(i) Initially, amount lying with ad hoc Authority shall be transferred to distinct minor head below 'MH 8336-Civil Deposits' under interest bearing section of Public Account of India.
Note I: Each State or Union territory shall be a separate Sub-Head. Each Sub-Head may be divided into Detailed Head for various activities viz. Compensatory Afforestation, Net Present Value of Forest Land, Catchment Area Treatment Plan, Interest etc. Note 2: While remitting money, the ad hoc Authority shall provide detailed State wise breakup.
(ii) At the time of payment of 90 percent share to State Government or Union territory, the accounting entry shall be as follows: 38
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
(iii) Respective States shall credit the amounts to dedicated Minor Head 129-State Compensatory Afforestation Fund (SCAF) below Major Head '8121-General and other Reserve Funds' and this Minor Head may be divided into Sub-Head for various activities, namely the Compensatory Afforestation, Catchment Area Treatment Plan, Net Present Value of Forest Land, Interest etc and these heads of accounts shall be uniformly applicable across the States.
Note 1: The applicable rate of interest on balances available under 'National Compensatory Afforestation Deposits' under '8336-Civil Deposits' and 'National Compensatory Afforestation Fund' under 8121-General and other Reserve Funds shall be as per the rate declared by the Central Government on year to year basis. Note 2: The applicable rate of interest on balances available under "State Compensatory Afforestation Deposits under '8336-Civil Deposits' and 'State Compensatory Afforestation Fund' under 8121- General and other Reserve Funds shall be as per the rate declared by the Central Government on year to year basis.
(iv) At the time of transfer of 10 percent share to National Fund: 10 percent share pertaining to Central Government shall be transferred to National Compensatory Afforestation Fund under Public Account of India from National Compensatory Afforestation Deposits below Major Head 8336-Civil Deposits and the accounting entry shall be-
(v) Accounting entry for 10 percent yearly receipts transferred from the User Agencies.- I. The yearly receipts transferred from the user agencies shall initially be accounted by States in the below mentioned head :-
39
O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
Provided that this Minor Head may be divided into Sub-Head for various activities and thereafter, 90 percent of the receipts shall be transferred to Minor Head ‗129-State Compensatory Afforestation Fund (SCAF)' under the Major Head 8121--General and other Reserve Funds in Public Account; provided further that break up shall be maintained and provided at Sub-Head level under new Minor Head ‗8121.129 - State Compensatory Afforestation Fund (SCAF) and these heads of accounts shall be uniformly applicable across the States.
II. Balance 10 percent shall be transferred to the National Fund by the States from their Deposit Head of Account on monthly basis. III. The following accounting entry shall be made in the books of the Central Government on receipt of the same.
4. Expenditure from the Fund-
After due appropriation of funds, the expenditure on schemes to be financed from National Fund shall be incurred from the Major Head 2406.
(i) On the basis of sanctions issued, the Pay and Accounts Officer shall make the payment by debiting government account as below:
Note: Appropriate primary units of appropriations shall be opened as per Delegation of Financial Power Rules, 1978 under National Authority.
(ii) A new Minor Head 103-State Compensatory Afforestation (SCA)' is opened under Major Head 2406-Forestry and Wildlife below Sub-
Major Head 04-Afforestation and Ecology Development and the appropriate head of accounts and primary units of appropriation shall be opened under State Authority.
40 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
5. Recoupment from National Fund/State Fund-
(i) The Pay and Account Officer of the Ministry of Environment, Forest and Climate Change shall make the accounting adjustment with the National Fund as deduct recoveries and this ensures that the expenditure is adjusted from the National Fund and the balance continues to remain in the interest bearing, non-lapsable fund in Public Account.
(ii) The following entry shall be made in the books of Pay and Accounts Officer-
Note: The arrangement for State Government(s) shall be similar to that of Central Government and the Minor Head for ―Deduct Amount met from State Compensatory Afforestation Fund (SCAF)‖ is ‗904'.
6. Budget of the National Authority-
The National Authority shall prepare its budget showing the estimated receipts and expenditure of the National Authority and forward the same to the Central Government, in such form and at such time in each financial year as may be prescribed and similar arrangement shall be applicable in respect of the State Authorities also.
7. Accounts of National Authority-
(i) The Pay and Accounts Office, Ministry of Environment, Forest and Climate Change shall maintain a broadsheet of receipts and payments from the National Fund and effect reconciliation on monthly basis with the National Authority and it should be ensured that there are no adverse balances under the Reserve Fund at any time.
(ii) The Comptroller and Auditor-General shall, within a period of six months from the date of commencement of the Act, audit the accounts of all the monies collected by the State Governments and Union territory Administrations, which has been placed under the ad hoc 41 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
Authority and deposited in the nationalised banks and submit the report to the Central Government.
8. Audit of National Authority.-
(i) The Comptroller and Auditor General of India has the power to conduct the audit including special audit or performance audit of State or National Fund and State or National Authority.
(ii) The Internal Audit Wing under Chief Controller of Accounts shall also conduct audit at regular intervals of the National Fund and National Authority.‖
44. Accordingly, these funds are subject to internal audit under Chief Controller of Accounts which shall be conducted at regular intervals of the National Fund and the National Authority. Thus, there is no requirement of making any audit of the fund deposited under the above head. It is the internal matter of the audit and accounts department subject to fund, if it is allocated to Central fund then it shall be subject to audit and accounts of the Chief Controller of Accounts and if it is within the State fund then it shall be under the supervision and control of audit and account of the State Department subject to audit of CAG. Thus, this matter does not require our interference.
45. So far as the plantations are concerned, since there is Memorandum of Understanding (MoU) with the Forest Department and the amount of the CAMPA fund has been deposited to the Forst Department, thus, it is the responsibility of the Forest Department to do the plantations according to rules and maintain it. Accordingly, we direct as follows:-
(1) The Forest Department, State of Rajasthan, is directed to implement the Memorandum of Understanding (MoU) and to comply it in letter and spirit and to ensure plantation, survival 42 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.
and its protection as specified in the MoU according to rules and to ensure plantation of local species.
(2) The Green Highway Policy, 2015, for plantation, transplantation, beautification and maintenance issued by the Government of India must be strictly followed by the National Highway Authority of India (NHAI) and State Forest Department and to comply it according to rules.
46. With these observations, the Original Application No.87/2025(CZ) alongwith pending I.As., if any, stand disposed of.
Sheo Kumar Singh, JM Dr. Afroz Ahmad, EM 11th May, 2026, Original Application No.87/2025(CZ) AK&RK 43 O.A. No.87/2025(CZ) Babu Lal Jajoo Vs. Chairman, National Highway Authority of India & Ors.