The Supreme Court has directed the Delhi Development Authority (DDA) to refund the ₹5 crore deposited by Vyakti Vikas Kendra, a charitable trust associated with the Art of Living Foundation, in connection with the controversy surrounding the organisation’s 2016 event on the Yamuna floodplains.

The court observed that there was no direct evidence establishing that the World Culture Festival itself had caused damage to the ecologically sensitive floodplain. The ruling provides significant relief to the organisation led by spiritual leader Sri Sri Ravi Shankar, which had been involved in a prolonged legal dispute over the penalty.

The controversy dates back to March 2016, when the Art of Living hosted its three-day World Culture Festival on the Yamuna riverbank in Delhi. Preparations for the large-scale event triggered concerns over the impact of construction and other activities on the floodplain.

In December 2017, the National Green Tribunal (NGT) had held the organisation responsible for environmental damage and imposed a ₹5 crore penalty. The amount was subsequently deposited, even as the organisation challenged the tribunal's findings before the Supreme Court.

Supreme Court questions DDA's role

While setting aside the financial burden on the Art of Living, the Supreme Court also raised concerns over the role played by the DDA in protecting the Yamuna floodplains.

The court noted that the development authority had responsibilities towards safeguarding the environmentally sensitive area. It directed the DDA to continue with measures aimed at restoring and rehabilitating the floodplains in accordance with directions issued earlier by the NGT.

The NGT had permitted the cultural event to proceed in 2016 after the organisers agreed to pay the environmental penalty.

How the ₹5 crore was deposited

The payment process began on the opening day of the festival, March 11, 2016. The organisers approached the NGT seeking additional time to deposit the penalty.

The tribunal initially permitted the Art of Living to pay ₹25 lakh immediately and allowed another three weeks for depositing the remaining amount.

Although the initial ₹25 lakh was paid, the organisation subsequently sought permission to treat the remaining ₹4.75 crore as a bank guarantee rather than an immediate payment. It also proposed that the money be used to develop a biodiversity park in the affected area.

The entire ₹5 crore was eventually deposited.

The organisation, however, continued to challenge the NGT's findings before the Supreme Court, keeping the dispute alive for several years.

The latest Supreme Court order now brings major financial relief to the Art of Living while simultaneously placing responsibility on the DDA to pursue the restoration of the Yamuna floodplain.