Sections 15E explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
These sections close the penalty scheme and set up the money side of it. Section 15E sends every penalty to the Environmental Protection Fund. Section 15F makes failure to pay a penalty within ninety days an offence. Chapter IIIA (sections 16, 16A and 16B) creates the Fund, says what is credited and spent, and requires accounts, audit and an annual report.
This article is current as amended up to the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force for this Act from 1 April 2024). Section 3 of that Act raises minimum fines and penalties by ten per cent every three years from its commencement. Later amendments and notifications should be checked. If a penalty is unpaid or contested, our legal dispute resolution team can advise on the position.
Section 15E: penalties under sections 14A, 14B, 15, 15A and 15B are credited to the Environmental Protection Fund. Section 15F: failing to pay within ninety days of imposition is punishable with imprisonment up to three years, or fine up to twice the penalty, or both; company officers in charge can be liable. Section 16: the Fund is established by notification, receives penalties under this Act and the Air Act, and seventy-five per cent of the penalties credited is allocated to States and Union territories.
Section 15E: where penalties go
Where any penalty or additional penalty is imposed under sections 14A, 14B, 15, 15A or 15B, "the amount of the penalty shall be credited to the Environmental Protection Fund established under section 16". The penalty does not go to the officer or to the Board. See sections 14A and 14B and sections 15 to 15B.
Section 15F: failure to pay
Section 15F(1). A person who fails to pay the penalty or additional penalty under sections 14A, 14B, 15, 15A or 15B "within ninety days of such imposition" is "liable for imprisonment which may extend to three years or with fine which may extend to twice the amount of the penalty or with both."
This is the offence that remains after the 2024 change. Breach of the underlying provision is a civil penalty; refusing to pay it is an offence.
Points to note:
- The ninety days run from imposition. An appeal under section 15D is separate. The text of section 15F does not say that an appeal stops the ninety days, so take advice on timing before the period runs out. See sections 15C and 15D.
- The fine is tied to the penalty. It may extend to "twice the amount of the penalty".
- A court takes cognizance on a complaint under section 19. See sections 18 to 21.
Section 15F(2) and (3): companies. Where the offence is committed by a company, every person directly in charge of, and responsible to, the company for the conduct of its business, as well as the company, is deemed guilty. The proviso gives a defence: no liability if he proves the offence was committed without his knowledge or that he exercised all due diligence. Under sub-section (3), a director, manager, secretary or other officer is also deemed guilty where the offence was committed with his consent or connivance or is attributable to his neglect.
Explanation. "Company" includes body corporate, firm, trust, society and any other association of individuals. "Director" includes a director of the company, a partner of the firm, members of the society or trust or member of any association of individuals.
| Point | Section 15F |
|---|---|
| Trigger | Not paying a penalty or additional penalty within ninety days of imposition |
| Imprisonment | Up to three years |
| Fine | Up to twice the amount of the penalty |
| Both | Allowed |
| Companies | Persons in charge, and the company, deemed guilty, with a due diligence defence |
| Officers | Deemed guilty on consent, connivance or neglect |
The terms are as printed. Section 3 of the Jan Vishwas (Amendment of Provisions) Act, 2023 raises minimum fines and penalties by ten per cent every three years from its commencement; this article does not compute any revised figure.
Chapter IIIA: the Environmental Protection Fund
Section 16(1). The Central Government may, by notification in the Official Gazette, "establish a fund to be known as the Environmental Protection Fund". The Fund is the "Fund" defined in section 2(ca).
Section 16(2): what is credited.
- (a) the amount of penalty imposed under the Air (Prevention and Control of Pollution) Act, 1981 and under this Act;
- (b) interest or other income received out of investments made from the Fund; and
- (c) any other amount from such sources as may be prescribed.
Section 16(3): what the Fund is applied for.
- (a) promotion of awareness, education and research for the protection of environment;
- (b) the expenses for achieving the objects and purposes of the Air Act and of this Act; and
- (c) such other purposes as may be prescribed.
Section 16(4). The Central Government shall notify the administrator for the Fund, in the manner prescribed.
Section 16(5). The Central Government "shall allocate seventy-five per cent. of the amount of penalties to the State Governments or Union territory administrations, which has been credited to the Fund."
The Water Act has its own penalty provision that also points to this Fund; see sections 45A to 45D of the Water Act. For the Air Act, see sections 39 to 39C. Do not confuse this Fund with the Environment Relief Fund under the Public Liability Insurance Act, 1991. They are separate.
The Environmental (Protection) Fund Rules, 2026 now govern how the Fund is credited, used and administered; see the sister articles on rules 1 to 5 and rules 6 to 9. Their content is not described here.
Section 16A: accounts and audit
- The Central Government maintains separate accounts and relevant records for the Fund and prepares an annual statement of accounts in the prescribed form, in consultation with the Comptroller and Auditor-General of India.
- The accounts are audited by the Comptroller and Auditor-General at such intervals as he specifies, and the audited accounts with the audit report are forwarded annually to the Central Government.
Section 16B: annual report
The Central Government prepares an annual report on the Fund "giving a full account of its activities" in the prescribed form for each financial year, and the report is laid before each House of Parliament with the Comptroller and Auditor-General's audit report.
What this means for a business
- Treat an imposed penalty as a payable with a hard date: ninety days from imposition.
- Decide early whether to pay or to appeal, remembering the ten per cent deposit for an appeal.
- Directors and officers should know that sub-sections (2) and (3) of section 15F can reach them personally for non-payment by a company.
- Pay into the right account and keep the proof.
An example
Rajdhani Packaging Private Limited is penalised under section 15A. Its board decides not to appeal. The finance head pays within ninety days and files the receipt. A competitor in the same position ignores the order. Its director in charge of operations is now exposed to a complaint under section 15F, and can only escape if he proves the lack of knowledge or due diligence the proviso requires.
Need help with an unpaid or disputed penalty?
Non-payment moves a civil penalty into criminal territory. Our legal dispute resolution team can help you decide between payment and appeal, and manage the timeline.
Key takeaways
- Penalties under sections 14A, 14B, 15, 15A and 15B are credited to the Environmental Protection Fund.
- Not paying within ninety days of imposition is an offence: imprisonment up to three years, fine up to twice the penalty, or both.
- Persons in charge of a company and consenting or neglectful officers can be liable.
- The Fund receives EP Act and Air Act penalties and is applied for awareness, research and the objects of those Acts.
- Seventy-five per cent of the penalties credited is allocated to States and Union territories.
- The Fund has audited accounts and an annual report laid before Parliament.
Read next
- Sections 15C and 15D: the adjudicating officer and the appeal
- Sections 45A to 45D of the Water Act: adjudicating officer, appeal and crediting of penalties
- Sections 39 to 39C of the Air Act: residuary penalty and the Fund
- Rules 1 to 5 of the Environmental (Protection) Fund Rules, 2026
Disclaimer: Based on the Environment (Protection) Act, 1986, the Air (Prevention and Control of Pollution) Act, 1981 and the Public Liability Insurance Act, 1991 as amended by the Jan Vishwas (Amendment of Provisions) Act, 2023 (in force for these Acts from 1 April 2024), the Water (Prevention and Control of Pollution) Act, 1974 as amended by its Amendment Act of 2024 (which applies only in the States and Union territories it names and in States that adopt it), and the National Green Tribunal Act, 2010 as amended by the Tribunals Reforms Act, 2021, as consulted on 3 October 2026. Later amendments, rules and notifications should be checked. This article is general information, not legal advice; check the official text before acting.