CAG Rebukes NLC India Over Mine Operating Without Clearance

17 Feb 2026 CW Team

The audit recommended that NLC regularise the situation by securing the requisite environmental clearance and undertake corrective measures to mitigate any environmental damage. It urged the ministry and state regulators to strengthen monitoring mechanisms and to ensure timely renewals of permissions for ongoing projects. The report also called for improved record keeping and clearer lines of accountability to prevent recurrence of similar oversights.

The CAG recommended that NLC establish robust environmental management systems and that independent audits be carried out periodically to verify compliance with conditions. The watchdog highlighted the need for transparent disclosures in corporate reporting to inform stakeholders of environmental risks and remedial actions. Regulators were advised to consider appropriate enforcement measures where non compliance is substantiated and to expedite processes for regularising project clearances.

The matter underscores wider concerns about project governance and environmental stewardship in extractive industries, and the audit suggested that lessons from this case be applied across similar public sector undertakings. Observers said improved coordination between project proponents and environmental authorities would reduce procedural lapses and help balance development needs with ecological safeguards. The CAG concluded that staying within the legal framework for environmental clearances is essential to uphold regulatory standards and public trust, and it called for prompt remedial action by the company and vigilant follow up by authorities.

The Comptroller and Auditor General of India (CAG) has criticised NLC India Limited (NLC) for operating a mine without a valid environmental clearance, according to an audit report. The audit noted that NLC continued extraction activities after the expiry of its clearance and did not obtain a fresh permission in a timely manner. The report said this constituted non compliance with statutory environmental requirements and highlighted lapses in internal controls and oversight within the company. The audit recommended that NLC regularise the situation by securing the requisite environmental clearance and undertake corrective measures to mitigate any environmental damage. It urged the ministry and state regulators to strengthen monitoring mechanisms and to ensure timely renewals of permissions for ongoing projects. The report also called for improved record keeping and clearer lines of accountability to prevent recurrence of similar oversights. The CAG recommended that NLC establish robust environmental management systems and that independent audits be carried out periodically to verify compliance with conditions. The watchdog highlighted the need for transparent disclosures in corporate reporting to inform stakeholders of environmental risks and remedial actions. Regulators were advised to consider appropriate enforcement measures where non compliance is substantiated and to expedite processes for regularising project clearances. The matter underscores wider concerns about project governance and environmental stewardship in extractive industries, and the audit suggested that lessons from this case be applied across similar public sector undertakings. Observers said improved coordination between project proponents and environmental authorities would reduce procedural lapses and help balance development needs with ecological safeguards. The CAG concluded that staying within the legal framework for environmental clearances is essential to uphold regulatory standards and public trust, and it called for prompt remedial action by the company and vigilant follow up by authorities.

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