New Delhi: The SHANTI Act challenge in the Supreme Court came under focus after the apex court said it does not want to “second-guess” Parliament’s policy decisions on nuclear energy. However, the Court assured petitioners that it would address concerns related to compensation and liability in case of a nuclear accident.
The matter relates to the constitutional validity of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025.
Details of SHANTI Act Case
A Bench led by Surya Kant, along with Joymalya Bagchi and Vipul Pancholi, heard a Public Interest Litigation challenging the SHANTI Act.
The petition argues that:
- The law limits liability for nuclear accidents.
- Suppliers of nuclear equipment receive protection from direct liability.
- The compensation cap is too low for a major nuclear disaster.
- The law weakens the “absolute liability” principle developed by the Supreme Court in hazardous industry cases.
Senior Advocate Prashant Bhushan argued that nuclear accidents like Fukushima and Chernobyl showed that damages can run into lakhs of crores, while the Act caps liability at under ₹4,000 crore.
Supreme Court’s Key Observations on SHANTI Act Case
The Court orally observed that:
- Nuclear energy policy is a “sensitive legislative policy issue.”
- Parliament has the right to frame investment-friendly laws.
- Courts still retain the power to award compensation to victims.
The Bench clarified that even if the law places a cap on operator liability, courts may still determine compensation independently in appropriate cases.
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The Court also said it would attempt to “clear apprehensions” raised by petitioners regarding:
- Nuclear safety
- Victim compensation
- Supplier accountability
- Regulatory independence
The matter is now listed for hearing in July 2026.
What Is The SHANTI Act?
The Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Act, 2025 replaced:
- The Atomic Energy Act, 1962
- The Civil Liability for Nuclear Damage Act, 2010
The law aims to modernize India’s nuclear energy sector and attract private and foreign investment.
Major Features Of The SHANTI Act
- Allows private sector participation in nuclear power.
- Creates a new nuclear liability framework.
- Gives statutory status to the Atomic Energy Regulatory Board (AERB).
- Introduces compensation limits based on reactor size.
- Establishes a Nuclear Damage Claims Commission.
SHANTI Act Case: Why Is The Law Facing Criticism?
Critics claim the Act reduces accountability in the event of a nuclear accident.
Main Concerns Raised
- Supplier liability protection may reduce safety incentives.
- Compensation caps may be inadequate during a disaster.
- The Act removes earlier legal safeguards available under the 2010 law.
- Petitioners say it violates Articles 14 and 21 of the Constitution.
Experts opposing the law also point to the Supreme Court’s “absolute liability” doctrine from the Oleum Gas Leak case, which held hazardous industries fully responsible for damage caused.
Government’s Broader Nuclear Vision
The SHANTI Act is part of India’s larger nuclear expansion plan.
The government aims to:
- Increase nuclear power capacity to 100 GW by 2047.
- Expand clean energy generation.
- Encourage private investment in nuclear infrastructure.
Supporters of the Act argue that international investors were reluctant to enter India because of stricter supplier liability rules under the previous law.
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