Overview
- A three-judge bench led by Chief Justice Surya Kant, which heard the case Tuesday, called the SHANTI Act challenge a very sensitive legislative policy issue and listed it for detailed hearing in the second week of July.
- The bench said a statutory cap does not stop constitutional courts or tribunals from assessing and awarding compensation to victims, even though the Act limits operator liability to about Rs 3,000–4,000 crore.
- Petitioners led by E. A. S. Sarma argue the cap is far too low compared with disasters like Fukushima and Chernobyl, say suppliers are effectively exempted, and contend the law weakens the nuclear regulator’s independence.
- Justices questioned whether the court should second-guess economic and foreign investment policy, noted India relies on outside technology, and asked who would invest without a cap, while counsel cited Germany and Japan’s retreat from nuclear energy and much higher U.S. caps.
- Passed in 2025, the SHANTI Act opens India’s civil nuclear sector to private and foreign players and replaces the 2010 liability law, which had allowed operators to seek recourse from suppliers, leaving nearby communities watching July’s hearing for clarity on safety and payouts after any accident.